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Thursday 21 December 2017
BPD Cell Block Attendant Sentenced for Violating the Civil Rights of an Individual in CustodyRead 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 Matthew Jaskula, 27, of Buffalo, NY, who was convicted of willfully depriving another of their constitutional rights under color of law resulting in bodily injury, was sentenced to 18 months in prison and three years of supervised release by U.S. District Judge Lawrence J. Vilardo.
According to First Assistant U.S. Attorney Joseph M. Guerra, who handled the case, Jaskula worked as a Cell Block Attendant with the Buffalo Police Department since 2013. On May 19, 2016, the defendant was working as a Senior Cell Block Attendant.
On May 19, 2016, the victim was arrested by two Buffalo Police officers and transported to the cell block area of police headquarters. At approximately 10:00 p.m., the victim, whose hands were handcuffed behind his back, was taken into the fingerprint and mug shot room. The officers and the victim were met by Jaskula and another cell block attendant.
The victim, with his hands still handcuffed behind him, was instructed to face a wall. Within a few seconds, Jaskula grabbed the victim from behind and shoved the victim face-first into a door. The force of the defendant’s actions not only caused the victim to strike the door, it caused the door to fly open and the victim to fall to the ground. On the way to the ground, the victim’s face struck the ledge of a shelf, before striking the floor, face-first.
The defendant’s actions caused the victim to become limp and unresponsive. Jaskula thereafter grabbed the victim by his handcuffed arms and dragged him down a hallway for approximately 10-15 feet to an open cell. The victim began bleeding profusely as he was dragged by the defendant and taken into an open cell. As the victim was pulled into the room, the victim’s head hit the door frame, causing blood to pool on the floor. Once in the room, the victim’s facial injuries caused a large amount of blood to fall onto the seat and floor of the cell.
The victim was later taken by Jaskula and another and put into a restraint chair used for non-compliant prisoners. The defendant left the victim in this chair, without seeking medical treatment for the facial injuries, for approximately an hour and 45 minutes. The cell block area in Buffalo Police headquarters is equipped with a video recording system and Jaskula’s actions were captured on video.
Jaskula told two lieutenants on duty that a prisoner had a bloody nose, giving the impression that the victim had the bloody nose when he was brought in by the officers. After one of the lieutenants indicated the victim should go to the Erie County Medical Center, the defendant replied that the victim’s nose was not bleeding anymore and he was refusing medical treatment. At approximately 11:30 p.m., the victim complained of chest pains. The victim was taken to ECMC and treated for nasal bone fractures and a laceration between his nose and right eye.
“Every day, children across the country begin their school day repeating the Pledge of Allegiance, which concludes with the following phrase, ‘with liberty and justice for all,’ noted U.S. Attorney Kennedy. “‘All’ means all, it doesn’t mean ‘some’ or simply ‘those who act the way we like.’ This Office remains committed to doing our part to deliver justice to—and to protect the civil rights of—all citizens in our District.”
"The FBI's Civil Rights Program dedicates a significant amount of its efforts to investigating crimes committed by individuals exploiting their government-granted powers," said Adam S. Cohen, Special Agent-in-Charge of the FBI Buffalo Office. "Matthew Jaskula received certain powers from the government so that he could defend the rights of the people and prevent wrongdoing. His badge did not come with the authority to ignore the Constitution; rather, he had a responsibility to uphold it."
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Attorney General Jeff Sessions Rescinds 25 Guidance DocumentsRead the Press Release
Today, Attorney General Jeff Sessions announced that, pursuant to Executive Order 13777 and his November memorandum prohibiting certain guidance documents, he is rescinding 25 such documents that were unnecessary, inconsistent with existing law, or otherwise improper.
In making the announcement, the Attorney General said:
“Last month, I ended the longstanding abuse of issuing rules by simply publishing a letter or posting a web page. Congress has provided for a regulatory process in statute, and we are going to follow it. This is good government and prevents confusing the public with improper and wrong advice.”
“Therefore, any guidance that is outdated, used to circumvent the regulatory process, or that improperly goes beyond what is provided for in statutes or regulation should not be given effect. That is why today, we are ending 25 examples of improper or unnecessary guidance documents identified by our Regulatory Reform Task Force led by our Associate Attorney General Rachel Brand. We will continue to look for other examples to rescind, and we will uphold the rule of law.”
In March, President Donald Trump issued Executive Order 13777, which calls for agencies to establish Regulatory Reform Task Forces, chaired by a Regulatory Reform Officer, to identify existing regulations for potential repeal, replacement, or modification. The Department of Justice Task Force, chaired by Associate Attorney General Rachel Brand, began its work in May.
On November 17, the Attorney General issued a memorandum prohibiting DOJ components from using guidance documents to circumvent the rulemaking process and directed Associate Attorney General Brand to work with components to identify guidance documents that should be repealed, replaced, or modified.
The Task Force has already identified 25 guidance documents for repeal and is continuing its review of existing guidance documents to repeal, replace, or modify.
The list of 25 guidance documents that DOJ has withdrawn in 2017 is as follows:- ATF Procedure 75-4.
- Industry Circular 75-10.
- ATF Ruling 85-3.
- Industry Circular 85-3.
- ATF Ruling 2001-1.
- ATF Ruling 2004-1.
- Southwest Border Prosecution Initiative Guidelines (2013).
- Northern Border Prosecution Initiative Guidelines (2013).
- Juvenile Accountability Incentive Block Grants Program Guidance Manual (2007).
- Advisory for Recipients of Financial Assistance from the U.S. Department of Justice on Levying Fines and Fees on Juveniles (January 2017).
- Dear Colleague Letter on Enforcement of Fines and Fees (March 2016).
- ADA Myths and Facts (1995).
- Common ADA Problems at Newly Constructed Lodging Facilities (November 1999).
- Title II Highlights (last updated 2008).
- Title III Highlights (last updated 2008).
- Commonly Asked Questions About Service Animals in Places of Business (July 1996).
- ADA Business Brief: Service Animals (April 2002).
- Prior Joint Statement of the Department of Justice and the Department of Housing and Urban Development Group Homes, Local Land Use, and the Fair Housing Act (August 18, 1999).
- Letter to Alain Baudry, Esq., with standards for conducting internal audit in a non-discriminatory fashion (December 4, 2009).
- Letter to Esmeralda Zendejas on how to determine whether lawful permanent residents are protected against citizenship status discrimination (May 30, 2012).
- Common ADA Errors and Omissions in New Construction and Alterations (June 1997).
- Common Questions: Readily Achievable Barrier Removal and Design Details: Van Accessible Parking Spaces (August 1996).
- Website guidance on bailing-out procedures under section 4(b) and section 5 of the Voting Rights Act (2004).
- Americans with Disabilities Act Questions and Answers (May 2002).
- Statement of the Department of Justice on Application of the Integration Mandate of Title II of the Americans with Disabilities Act and Olmstead v. L.C. to State and Local Governments' Employment Service Systems for Individuals with Disabilities (October 31, 2016).
Acoma Pueblo Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Mykal Concho, 23, an enrolled member and resident of Acoma Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a statutory rape charge. Concho entered the guilty plea without the benefit of a plea agreement.
Concho was arrested on May 23, 2017, on an indictment charging him with sexually abusing a minor between 12 and 16 years of age. According to the indictment, Concho committed the crime between Nov. 24, 2014 and Dec. 31, 2014, on the Laguna Pueblo in Cibola County, N.M.
During today’s proceedings, Concho pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Concho faces a statutory maximum penalty of 15 years in federal prison. He will also be required to register as a sex offender after he completes his prison sentence. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA Office of Justice Services and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Elisa Dimas is prosecuting the case pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Wednesday 20 December 2017
Woman Sentenced to Federal Prison for Shooting Her Husband While at Residence on Fort Bliss in El PasoRead the Press Release
In El Paso today, a federal judge sentenced 24–year-old Arely Brigette Ruiz to 78 months in federal prison for shooting her husband inside their residence on Fort Bliss earlier this year announced United States Attorney John F. Bash and FBI Special Agent in Charge Emmerson Buie, El Paso Division.
In addition to the prison term, United States District Judge Kathleen Cardone ordered that Ruiz pay $500.00 fine and be placed on supervised release for a period of three years after completing her prison term.
On October 6, 2017, Ruiz pleaded guilty to one count of assault resulting in serious bodily injury.
According to court records, on January 16, 2017, Ruiz transported her husband to the William Beaumont Army Medical Center to receive emergency treatment for an abdominal gunshot wound. Initially, both reported to hospital staff that the weapon, a 9mm pistol, had accidentally discharged during cleaning. Ruiz’s husband underwent successful surgery and remained in a medically induced coma for the next three days.
On January 19, 2017, the victim regained consciousness and immediately told hospital staff that his wound was not self-inflicted, but rather, the defendant shot him with a pistol. After initially denying involvement in the shooting, the defendant admitted to investigators that she, in fact, had shot her husband following an argument about their marriage.
Ruiz has remained in federal custody since her arrest on January 16, 2017.
FBI agents conducted this investigation together with Army Criminal Investigative Command (CID). Assistant United States Attorney Ian Hanna prosecuted this case on behalf of the Government.
Woman Sentenced in Connection to Methamphetamine ConspiracyRead 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 Wendy Kennedy, 39, of Beaver Dams, NY, who was convicted of conspiracy to manufacture and distribute methamphetamine, was sentenced to 24 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that between June 2012 and May 4, 2016, the defendant provided her brother and co-conspirator Scott Kennedy with equipment and materials, including pseudoephedrine, with the knowledge and intent that her brother would use them to manufacture methamphetamine. Wendy Kennedy also obtained quantities of methamphetamine from her brother, which he had manufactured, that she then distributed to her own customers. During the course of the conspiracy, Scott Kennedy distributed large amounts of methamphetamine with and to people throughout the area of Schuyler, Chemung, and Steuben Counties in New York.
Also, in furtherance of the conspiracy, the defendant used and maintained 2200 County Route 19, in Dix NY, for the purpose of manufacturing and distributing methamphetamine. Wendy Kennedy permitted her brother to manufacture methamphetamine at this location, and the defendant used that location to sell methamphetamine to others.
Scott Kennedy, and three other defendants, Jared Mendez, Terry Champion, and Quinton Harrison, have also been convicted.
The sentencing is the result of an investigation by the New York State Police, Special Investigations Unit, Rochester; the New York State Police, CNET Southern Tier, under the direction of Major Richard Allen; the Schuyler County Sheriff’s Department, under the direction of William Yessman; and the Schuyler County District Attorney’s Office, under the direction of Joseph Fazzary.
Windham Man Sentenced to Three Years on Child Pornography ChargeRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Matthew Miller, 52, of Windham, Maine, was sentenced yesterday in U.S. District Court by Judge George Z. Singal to three years in prison and ten years of supervised release for accessing with intent to view material containing images of child pornography. Judge Singal also ordered Miller to pay a $5,000 special assessment applicable to non-indigent individuals convicted of child exploitation offenses. Miller pleaded guilty to the offense on July 5, 2017.
According to court records, in September 2016, investigators from Homeland Security Investigations and the Maine State Police Computer Crimes Unit were investigating the exchange of child pornography over the internet. As part of the investigation, agents downloaded child pornography files from a computer that was making the files available. The computer was later determined to be at Miller’s residence in Windham. Investigators executed a search warrant at the residence, and found that Miller had been searching for and downloading child pornography to his computer using a peer-to-peer file-sharing network.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.
Washington Man Sentenced to over 12 Years in Prison for Trafficking over 60 Pounds of Methamphetamine into MontanaRead the Press Release
BILLINGS - The United States Attorney’s Office announced today that Juan Ramon Delgadillo-Meza, a 41 year-old resident of Ephrata, Washington, was sentenced to 151 months in prison, 5 years of supervised release, and a $200 special assessment. The sentence also includes a $1.3 million dollar money judgment. Delgadillo-Meza was convicted of conspiracy to possess with intent to distribute methamphetamine, in violation of 21 U.S.C. § 846, and conspiracy to commit money laundering, in violation of 21 U.S.C. § 1956(h). U.S. District Judge Susan P. Watters presided over the hearing.
In mid-June of 2015, agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force and the Federal Bureau of Investigation’s Big Sky Safe Streets Task Force began an investigation into a methamphetamine trafficking organization responsible for transporting methamphetamine from Washington into Belgrade and Billings, Montana for distribution. Agents identified Juan Ramon Delgadillo-Meza as one of the individuals who transports methamphetamine from Washington to Montana.
In August 2015, agents conducted surveillance and saw Delgadillo-Meza meet with an individual in Billings who was later identified as one of Delgadillo-Meza’s distributors. Agents then learned through hotel records, surveillance video and surveillance that Delgadillo-Meza continued to travel to Montana from September through November.
On November 15, 2015, a Montana Highway Patrol Trooper stopped Delgadillo-Meza for a traffic violation near Manhattan. The vehicle was later searched pursuant to a warrant and approximately 886 grams of pure methamphetamine was seized.
The investigation continued into January 2016 when agents searched the residences of Delgadillo-Meza’s distributors in Billings and Belgrade. During those searches, agents seized approximately 356 grams of pure methamphetamine from a storage facility in Billings.
Sources later confirmed that Delgadillo-Meza began traveling to Billings in 2014 and would transport two pounds of methamphetamine every two weeks. He sold each pound of methamphetamine for approximately $12,500.
Delgadillo-Meza’s Montana distributors were previously convicted and sentenced for narcotics and money laundering offenses in U.S. District Court. The sentence for one of the distributors included the forfeiture of his house, vehicle, and U.S. Currency held in a bank account.
The Delgadillo-Meza case was investigated by the Federal Bureau of Investigation, Eastern Montana High Intensity Drug Trafficking Area Task Force, and multiple other federal, state, and local agencies.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Upshur County woman admits to her role in a stolen firearms and methamphetamine operationRead the Press Release
ELKINS, WEST VIRGINIA – A Buckhannon, West Virginia woman has admitted to her role in a stolen firearms and meth distribution operation, United States Attorney Bill Powell announced.
Lisa Kay Knight, age 24, pled guilty to one count of “Conspiracy to Possess Stolen Firearms.” Knight admitted to conspiring with others to steal, possess, barter and sell firearms for money and methamphetamines in Upshur County and elsewhere from October 2016 to September 2017.
Knight faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department are investigating.
U.S. Magistrate Judge Michael John Aloi presided.United Therapeutics Agrees to Pay $210 Million to Resolve Allegations that it Paid Kickbacks Through a Co-Pay Assistance FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company United Therapeutics Corporation (UT), a seller of pulmonary arterial hypertension (PAH) drugs, has agreed to pay $210 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
UT sells a number of PAH drugs, including Adcirca, Remodulin, Tyvaso, and Orenitram. As part of today’s settlement, the government alleged that UT used a foundation, which claims 501(c)(3) status for tax purposes, as a conduit to pay the co-pay obligations of thousands of Medicare patients taking its PAH drugs. From February 2010 through January 2014, the government alleged, UT routinely obtained data from the foundation detailing how many patients on each UT PAH drug the foundation had assisted and how much the foundation had spent on those patients. The government alleged that UT used this data to decide the amount to donate to the foundation. At the same time, the government alleged, UT had a policy of not permitting Medicare patients to participate in its free drug program (which was open to other financially needy patients) even if those Medicare patients could not afford their co-pays for UT drugs. Instead, in order to generate revenue from Medicare and to induce purchases of its PAH drugs, UT allegedly referred Medicare patients prescribed its PAH drugs to the foundation, which resulted in claims to Medicare to cover the cost of those drugs.
“UT used a third party to do exactly what it knew it could not lawfully do itself,” said Acting United States Attorney William D. Weinreb. “According to the allegations in today’s settlement agreement, UT understood that the third-party foundation used UT’s money to cover the co-pays of patients taking UT drugs. UT’s payments to the foundation were not charity for PAH patients generally, but rather were a way to funnel money to patients taking UT drugs. The Anti-Kickback Statute exists to protect Medicare, and the taxpayers who fund it, from schemes like these that leave Medicare holding the bag for the costs of expensive drugs.”
“While we support efforts to provide patients with access to needed medications, such assistance must comply with federal law. Today’s settlement shows that the government will hold accountable drug companies that attempt to use illegal kickbacks to defeat mechanisms Congress designed to act as a check on drug pricing and healthcare costs,” said Principal Deputy Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
UT also has entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The five-year CIA requires, among other things, that UT implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, compliance-related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
“Our corporate integrity agreement requires United Therapeutics to implement controls and monitoring designed to promote true independence from any patient assistance programs to which it donates,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services. “Without true independence, a drug company can use a foundation as a conduit for improper payments that expose the taxpayer-funded Medicare program to the risk of abuse.”
Acting U.S. Attorney Weinreb, Acting Assistant Attorney General Readler, and HHS- OIG Chief Counsel Demske made the announcement today. This matter was investigated by HHS-OIG, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Department of Veterans Affairs Office of Inspector General, and was handled by Assistant U.S. Attorneys Gregg Shapiro, Abraham George, and Deana El-Mallawany of Weinreb’s Office, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Two Men Sentenced to Federal Prison for Fraud and Impersonating Immigration OfficialsRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake announced today that Michael Ruiz, age 53, and James Mondell, age 55, both of Greenville, South Carolina, were sentenced by Senior United States District Judge Henry M. Herlong, Jr. Ruiz was sentenced to a term of incarceration of 160 months to be followed by 3 years of Supervised Release. He was additionally ordered to pay $54,894.00 in restitution. Mondell was sentenced to a term of incarceration of 40 months to be followed by 3 years of Supervised Release. He was additionally ordered to pay $3,000.00 in restitution.
Both defendants entered pleas of guilty on September 20, 2017. The facts, presented at the guilty plea hearing by Assistant United States Attorney David C. Stephens, established that Ruiz devised a scheme in which he pretended to be an Immigration Official and offered to take care of illegal aliens’ immigration problems in exchange for a fee. A number of aliens agreed to pay Ruiz such fees for his services. Ruiz did absolutely nothing for these aliens, however, he demanded more and more money ultimately threatening to have them deported if he did not receive further payments. Additionally, Ruiz told one alien that he could have his family in Guatemala enter the United States and gain legal status in exchange for a fee. This led to numerous international telephone calls which are the basis for the wire fraud charges. Mondell played a lesser role in the offense. Ruiz would have Mondell with him when he met with the aliens and due to Mondell’s size his presence alone served to intimidate the victims. Additionally, Mondell was involved in handling the payments which were often in the form of money orders which Mondell would cash for Ruiz.
United States Attorney Drake further stated that in addition each defendant received a further term of incarceration due to the fact that their offenses had been committed while they were already on Supervised Release for other crimes. Ruiz received 24 months to be served consecutively to the 160 months referenced above. Mondell received 27 months to be served consecutively to the 40 months referenced above.
This case was investigated by agents of ICE-Homeland Security Investigations. Assistant United States Attorney David Stephens, of the Greenville office, prosecuted the case.
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Two Defendants Plead Guilty in Multimillion Dollar Prize Promotion Scams Targeting Elderly VictimsRead the Press Release
Two individuals who ran multimillion dollar prize promotion scams entered guilty pleas Dec. 12 in federal court in Las Vegas, Nevada, the Department of Justice announced.
Glen Burke, 57, of Las Vegas, pleaded guilty to contempt and conspiracy charges arising from his operation of two predatory schemes that defrauded thousands of victims, many of whom were elderly, out of more than $20 million. Burke conducted those fraudulent campaigns in violation of a 1998 court order obtained by the Federal Trade Commission (FTC) permanently banning him from telemarketing and making misrepresentations to consumers. A co-defendant, Michael Rossi, 52, also of Las Vegas, also pleaded guilty in connection with one of Burke’s schemes.
“The Department of Justice is determined to punish the perpetrators of fraudulent schemes that exploit consumers, especially those that target the elderly or vulnerable,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “We will work with our partners at the FTC and the U.S. Postal Inspection Service to eradicate schemes that harm the elderly wherever we find them.”
Burke pleaded guilty to contempt for violating the court order prohibiting him from making misrepresentations to consumers. That charge stemmed from Burke running a mass-mailing operation that misled consumers into believing that they had won large cash prizes, often millions of dollars. Burke specifically mailed consumers solicitations that used fake names and, in many cases, looked like they came from law firms or financial institutions, advising consumers to pay a fee – usually $20 to $30 –to claim their promised winnings. Once consumers paid, however, Burke never sent any consumer a promised prize.
Burke, along with Rossi, also pleaded guilty to conspiracy to commit mail and wire fraud for running a fraudulent telemarketing operation. Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes, typically: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300. To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars. Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all.
Sentencing is scheduled on March 12, 2018. Under the contempt statute, Burke could be sentenced to any term of imprisonment and fine. Under the conspiracy statute, Burke and Rossi face a potential maximum sentence of 20 years in prison and a $250,000 fine. The court has the discretion to impose a lower sentence.
Principal Deputy Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service and thanked the FTC for its valuable assistance. The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
Two California Men Charged in Large-Scale Opioid Distribution RingRead the Press Release
NOTE: Charges against Stephan Durham were dismissed by court order on Jan. 29, 2018.
NEWARK, N.J. – Two California men were arrested today for their alleged roles in a large-scale opioid distribution conspiracy that involved the shipment of at least 500,000 fentanyl pills to New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Andrew Tablack, 26, of Beverly Hills, California, and Stephan Durham, 43, of Altadena, California, were both charged by complaint with one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of cyclopropyl fentanyl. Tablack is also charged with distribution of 400 grams or more of cyclopropyl fentanyl. Both defendants were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Patrick J. Walsh in Los Angeles federal court.
According to the complaint:
Beginning in August 2017, the Drug Enforcement Administration began an investigation into the distribution of fentanyl in the Monmouth County, New Jersey, area. Agents executed a search warrant at a Monmouth County residence that resulted in the seizure of a substantial quantity of controlled substances, including approximately 300,000 cyclopropyl fentanyl pills that allegedly had been shipped by Tablack to New Jersey. Tablack and his customers across the United States, including New Jersey, allegedly used the Dark Web – a part of the internet that is not accessible without specific software – to arrange shipments of quantities of cyclopropyl fentanyl to various places throughout the country. Tablack also used end-to-end encrypted communication applications to take orders for fentanyl from customers in New Jersey.
The New Jersey customers allegedly provided Tablack with residential addresses in Monmouth County to which the packages of fentanyl could be mailed and arranged to intercept the packages before they were delivered. Customers paid Tablack with Bitcoin, a form of cryptocurrency that is increasingly common in the narcotics trade due to its relative anonymity.
One such set of packages, mailed by Tablack in September 2017, was intercepted by law enforcement when it reached New Jersey. When the packages were opened, agents found that they contained 226,520 cyclopropyl fentanyl pills that weighed nearly 20 kilograms.
Tablack allegedly maintained a pill production facility in California. Shipping records revealed that Tablack had purchased at least nine pill press machines that were shipped to an industrial building in California. Records showed that a company ostensibly run by Durham was registered as the lessee of that industrial property.
Tablack allegedly purchased quantities of fentanyl from a laboratory in China that shipped the packages disguised as food and beauty products. Law enforcement officers in California were able to intercept several additional packages sent from various parts of Asia bound for properties controlled by Tablack and Durham, including fentanyl and dies used to mark illicitly manufactured pills.
The charges carry a mandatory minimum penalty of 10 years in prison, a potential maximum penalty of life in prison, and a $10 million fine.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Office General Crimes Unit in Newark.
Acting U.S. Attorney Fitzpatrick credited the special agents of DEA in Newark, under the direction of Special Agent in Charge Valerie Nickerson; special agents of DEA in Los Angeles, under the direction of Special Agent in Charge David Downing; 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; DHS-HSI, Los Angeles Division, under the direction of Special Agent in Charge Joseph Macias; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin; and special agents of the U.S. Postal Service Office of Inspector General, under the direction of Acting Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, with the investigation leading to the charges.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Brothers Sentenced for Attempted Extortion and Embezzlement of Suboxone ClinicRead the Press Release
BOSTON – Two Taunton brothers were sentenced yesterday in connection with attempting to extort and threaten violence against the co-owner of a suboxone clinic in Quincy as well as embezzling money from the clinic.
David Tkhilaishvili, 36, and Jambulat Tkhilaishvili, 46, were sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to three years and 18 months in prison, respectively. Both were sentenced to three years of supervised release. David Tkhilaishvili was also ordered to pay restitution of $3,500. In May 2017, following a five-day trial, a federal jury convicted the brothers of one count of conspiring to extort and one count of attempted extortion. David Tkhilaishvili was also convicted of two counts of embezzlement.
In 2014, the brothers approached the co-owner of a Quincy suboxone clinic and asked him to invest in a new suboxone clinic. The defendants claimed to have many years of experience in running medical clinics, including suboxone clinics. To convince the victim to invest, the defendants promised to repay the victim 50% of his investment in the clinic within five years if the business failed, with 5% interest per year in the event that the victim did not recover his investment in the clinic.
In December 2014, the victim agreed to invest in the clinic and, because of the size of his investment, insisted upon significant contractual protections, including that he would have full decision making authority over matters involving the clinic. The defendants agreed; however, shortly thereafter, the defendants began to demand that the victim surrender his ownership interest and, on multiple occasions, threatened him and his family with physical injury. One of the defendants told the victim that he had made nine people and their families, who had a problem with him in the past, disappear. Both defendants claimed to live the life of outlaws who associated with thieves. In addition, both of the defendants threatened physical harm to the victim and his family and to burn down the clinic if the victim did not comply with their demands. Furthermore, David Tkhilaishvili embezzled approximately $3,500 from the clinic.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Towing Titan Gasper Fiore Pleads Guilty to BriberyRead the Press Release
The owner of multiple towing companies in southeast Michigan, Gasper Fiore, 57, of Grosse Pointe Shores, pleaded guilty today to conspiring to commit bribery, in connection with a municipal towing contract in Clinton Township, Acting United States Attorney Daniel L. Lemisch announced today.
Lemisch was joined in the announcement by David P. Gelios, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
Fiore admitted at the plea hearing that he conspired to pay bribes to Clinton Township Trustee Dean Reynolds in order to obtain a municipal towing contract with the township. Fiore admitted to giving Reynolds cash bribes of $4,000 and $3,000 in March and May of 2016 in order to buy Reynolds’ vote to select Fiore’s company to receive the Clinton Township towing contract. Fiore paid the bribes to Reynolds through Charles B. Rizzo, who was cooperating with federal law enforcement at the time of the bribe payments. Rizzo is the former Chief Executive Officer of Rizzo Environmental Services, and Rizzo pleaded guilty to bribery and embezzlement charges on November 9, 2017.
The bribery conspiracy charge to which Fiore pled guilty carries a maximum sentence of 5 years imprisonment and a fine of $250,000.
Acting United States Attorney Lemisch said, “Today’s guilty plea is a significant blow to corruption in southeast Michigan. Bribery subverts representative government, and this conviction demonstrates that such conduct, by either public officials or bribe payers, will not be tolerated.”
"Today's guilty plea should reassure citizens that those who endeavor to entice public officials through bribery and kickback schemes can count on encountering the formidable investigative resources of the FBI and our partners, and will be held to account for their corrupt practices", said Special Agent in Charge David P. Gelios, Detroit Division of the FBI.
A sentencing date has been set for May 1, 2018.
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, R. Michael Bullotta, and Adriana Dydell.
Three indicted on immigration-related offensesRead the Press Release
Three people were indicted in federal court for immigration offenses, said U.S. Attorney Justin E. Herdman.
Martha Buendia-Chavarria, 43, of Mexico, was indicted on charges of possession with intent to transfer false identity documents, possession of document-making implements and authentication features, making a false statement or claim regarding citizenship in order to obtain a benefit and aggravated identity theft.
Jorge Fabian Rubio-Gonzales, 29, of Mexico, was charged with illegal re-entry into the U.S. following deportation.
Eliazar Lopez-Bravo, 48, of Marion, was indicted on charges of possession with intent to use unlawfully or unlawfully transfer five or more identification document or false identification documents.
The cases are all being prosecuted by Assistant U.S. Attorney Noah P. Hood following investigations by the Department of Homeland Security, Customs and Border Protection, in Sandusky and the Department of Homeland Security, U.S. Immigration and Customs Enforcement, in Detroit.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Gang Members Indicted in Federal CourtRead the Press Release
BOISE – A federal grand jury indicted three members of the Norteno gang for federal firearms charges, U.S. Attorney Bart M. Davis announced.
The indicted defendants are Peter Albert Rodriguez, 27, of Nampa; Fabian Gonzalez, 26, of Caldwell; and Roy Benitez, 25, of Caldwell. All were indicted on December 12 and 13, 2017. Rodriguez is charged with two counts of unlawful possession of a firearm. Gonzalez is charged with unlawful dealing in firearms and possession of an unregistered firearm. Benitez is charged with possession of an unregistered firearm.
All three defendants were arrested yesterday.
The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of possession of an unregistered firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of unlawful dealing in firearms is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
“Deterrence is about fear of consequences,” said Davis. “We want criminals to fear the consequences of committing crimes. The rise in violent crime can be suppressed when law enforcement agencies, as was the case here, work together to disrupt and dismantle criminal gangs and those that foment violence.”
“Those members of the criminal element that illegally possess and use firearms are demonstrating their contempt for the personal safety and wellbeing of the public,” said Special Agent in Charge Darek Pleasants of the Seattle Field Division. “ATF is committed to partnering with our law enforcement partners to ensure the safety of the public.”
“For Mr. Gonzalez to willingly operate outside of the established parameters of lawful commerce in firearms puts the people of the Treasure Valley at risk,” continued Pleasants. “Combating that risk remains a top priority to ATF.”
The indictments are the result of an investigation and enforcement operation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Marshals Service; the Drug Enforcement Administration; the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations; the Idaho Department of Corrections Office of Probation and Parole; the Canyon County Sheriff’s Office; the Nampa City Police Department; the Caldwell City Police Department; and the Boise City Police Department.
The charges are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Florida Men Sentenced to Life Imprisonment and Fined $2 Million for Trafficking Methamphetamine from California to Florida and GeorgiaRead the Press Release
Ft. Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Brown Laster, Jr. (37, Tampa), Jerry Browdy (44, Riverview, FL), and Wesley Petiphar (30, Davenport) each to life in federal prison for conspiracy to distribute more than 500 grams of methamphetamine. The Court also ordered Browdy to forfeit $106,060 and Petiphar to forfeit $22,400, which are traceable to the proceeds of the offense. As part of their sentences, the Court imposed a fine of $1 million for Laster and $500,000 each for Browdy and Petiphar.
A federal jury found the individuals guilty on July 28, 2017.
According to testimony and evidence presented at trial, Laster, Browdy, and Petiphar were part of a conspiracy to ship kilograms of methamphetamine from Sacramento, California to various hotels in Florida and Georgia via Federal Express.
The evidence showed that, throughout 2015, the men had sent approximately 40 packages of methamphetamine through the mail per week. The packages were delivered to co-conspirators who had been recruited to wait at the hotels for the packages of methamphetamine to arrive. The packages were then delivered to local drug traffickers. In addition, witness testimony revealed that the men enforced the conspiracy through violence, including one incident where a cooperating witness had a gun placed in his mouth with such force that the gun knocked out some of his front teeth.
This case was investigated by the Drug Enforcement Administration, with assistance from the Lee County Sheriff’s Office, the Charlotte County Sheriff’s Office, the Okeechobee County Sheriff’s Office, the Lowndes County Sheriff’s Office (Georgia), the Placer County Sheriff’s Office (California), the Lakeland Police Department, and the Miami-Dade Police Department. It was prosecuted by Assistant United States Attorneys Dan Baeza and Mike Leeman.
The U.S. Attorney's Office recognizes employees for outstanding work in 2017Read the Press Release
The United States Attorney’s Office for the Northern District of Ohio this month presented awards to honor outstanding advocacy, support and legal work on behalf of the district’s six million residents.
“These awards recognize the best efforts put forth by our office on behalf of the citizens,” said U.S. Attorney Justin Herdman. “Whether it’s combating violent crime, protecting taxpayers, trying to curb the tide of the opioid epidemic, just to name a few, these employees embody the best of public service.”
Details of the award winners are below:
AUSA of the Year: Kelly Galvin
Kelly Galvin personally helped making Norther Ohio safer in 2017 through several trials and prosecutions focused on violent firearms crimes. She was the lead prosecutor against five defendants – four of whom were members of the Heartless Felons gang – targeted random strangers for a series of carjackings in the Tremont neighborhood. The five defendants were sentenced collectively to more 130 years in prison. Galvin also successfully prosecuted a man who took a woman to the Cuyahoga Valley National Park and shot her in the head, leaving her for dead. She somehow survived but is now blind. That defendant is serving life in prison.
Support of the Year: Jennifer Borrowman
Jennifer Borrowman is honored for her unwavering dedication of the U.S. Attorney’s Office. Borrowman took over as supervisory legal assistant for the Criminal Division this year, with a twice-a-decade office audit looming and while still doing parts of her previous job while her replacement was waiting for her security clearance to be approved. Her professionalism is superior.
Bill Edwards Career Award: Ann Rowland
Ann Rowland will retire in January after 37 years at the U.S. Attorney’s Office, making her the longest-serving attorney in the history of the office. She has served the office with distinction as chief of the Strike Force Unit, chief of the White Collar Crime Unit and deputy chief of the Criminal Division. She has served on countless committees and working groups to improve the judicial process and criminal justice system. The high-profile cases she has handled in her career include the prosecutions of Anthony Liberatore, a high-ranking member of La Costa Nostra; several supervisors in the Cleveland Water Department, and Jimmy Dimora, Frank Russo and more than 60 other people involved in a public corruption network focused on Cuyahoga County.
Bill Edwards Career Award: Roberta Sladick
Roberta Sladick has served as secretary to the United States Attorney for more than a dozen years, starting with Greg White. Sladick serves not only as gatekeeper to the U.S. Attorney, but also confidant, counselor, friend and sometimes life coach to each. Bobbi started her federal career as a clerk-stenographer with the Defense Contract Audit Agency in 1978. Two years later, she transferred to our office as a clerk-stenographer in the Civil Division. In 1985, Bobbi was promoted to secretary to the First Assistant U.S. Attorney and held that position for 20 years until becoming secretary to the U.S. Attorney. Over the course of 32 years with our office, Bobbi Sladick has been a bedrock of the office.
Professionalism Award: Robert Bulford
Robert Bulford is the consummate professional, liked and respected by both the bench and the bar. He works almost around the clock in the Akron office and is always available with advice on legal questions and life questions. Fellow Assistant U.S. Attorneys and law enforcement agents have come to rely on Bulford for real-world, practical advice for the past 28 years in the office, as well as nine years in Summit County Prosecutor’s Office.
Bernard A. Smith Excellence in Appellate Advocacy: Laura Ford
Laura Ford has addressed every manner of federal prosecution, and this year has successfully handled appeals stemming from several multi-week, complex fraud, bribery and money laundering trials, including U.S. v. Bartoli, U.S. v. Epps, U.S. v. Jackson and U.S. v. Selgjekaj. These trials were complicated for the prosecutors and agents who spent years working on them, but Ford quickly digested the information and expertly addressed all of the appellate issues raised by those defendants – with a 100 percent success rate.
Excellence in Criminal Advocacy: Carol Skutnik and Brian McDonough
Carol Skutnik and Brian McDonough are honored for their work prosecuting U.S. v. Rydze, et al., in which six people were convicted of charges involving health care fraud, drug trafficking, and money laundering offenses. One of those defendants was Dr. Richard Rydze, a prominent doctor in the Pittsburgh area who, among other duties, served as team physician for the Pittsburgh Steelers. Following a five-month trial which required Skutnik and McDonough to move to Pittsburgh and miss numerous holidays, birthdays, school and family events, Rydze was convicted of illegally dispensing controlled substances, including human growth hormone and opioids.
Excellence in Civil Advocacy: James Bennett and Erin Brizius
James Bennett and Erin Brizius are recognized for their expert and professional handling of the difficult medical malpractice case involving the VA Hospital in Cleveland. A man went to the hospital complaining of chest pain, arm pain and shortness of breath. He was discharged but -- before exiting the building -- suffered a heart attack and fell, hitting his head. His injuries were catastrophic. Bennett and Brizius expertly investigated this case, conducted extensive discovery, worked with several expert witnesses and negotiated a resolution of this complex case.
Excellence in Criminal Support: Sue Chandler
Sue Chandler demonstrated tremendous dedication and self-sacrifice this year. She was the lone paralegal supporting the prosecution team in U.S. v. Rydze. She kept track of thousands of exhibits that took up a full room in Cleveland and another full room in Pittsburgh. The exhibits were loaded into the office’s computer system, redacted to protect each patient’s private information and then expertly called up and displayed at trial. All of that was the responsibility of one person – Sue Chandler. Ever ready with some candy to support the troops and an exceptional amount of good attitude and funny stories, Sue not only brought the records and evidence, she brought the cheer. Trials are difficult enough, but a five-month trial away from home when you’re living out of a hotel and away from family, keeping up that positive attitude is one of the reasons she was so very important to the success of the trial.
Excellence in Civil Support : Debra Schoch
Schoch is recognized for her constant and professional commitment to the Civil Division. Schoch supported between five and seven attorneys this year, filled in for anyone who needed help or was on leave, and continued to mentor and assist other legal assistants in any area in which they needed assistance. She also assisted the high-volume area of Medicare cases and assisted in establishing and implementing best practices for the unit. Schoch’s professionalism, knowledge, efficiency, and helpful attitude are greatly appreciated by all who work with her.
Excellence in Administrative Support: Susan Frank
Susan Frank is honored for her work as Lead Administrative Services Specialist. She has been heavy involved with major projects such as the office library reduction, and developing and initiating movement of shipping and receiving. Frank served as the point person in the office’s relations with GSA. She set up bi-weekly meeting with GSA to ensure any issues were being addressed and ensuring projects were completed in a timely manner.
The Department of Justice Announces Unprecedented Award to Police Executives and Unions to Create A Technical Assistance CenterRead the Press Release
The Department of Justice today announced a new $7 million award under the Office of Community Oriented Policing Services’ (COPS Office) Collaborative Reform Initiative for Technical Assistance. The award is to the International Association of Chiefs of Police (IACP), a nonprofit membership organization with 30,000 members in more than 150 countries that serves all ranks at the state, local, territorial, tribal, campus, and federal levels. IACP will be partnering with other prominent law enforcement stakeholder associations to create the Collaborative Reform Initiative Technical Assistance Center (CRI-TAC).
“This award embodies a field-driven vision for the Collaborative Reform Initiative and incorporates changes that I know are critically important to law enforcement,” said Attorney General Jeff Sessions. “Today’s announcement is part of a course correction that ensures that the Department’s Collaborative Reform Initiative will provide technical assistance to law enforcement agencies based on their own needs, not those dictated by the federal government.”
For the first time, police chiefs, unions and other law enforcement organizations will come together to provide tailored technical assistance to local policing agencies. While the award will go to IACP, there is a historic and unprecedented coalition represented by the law enforcement associations formally involved in the project:
- Federal Bureau of Investigation National Academy Associates (FBINAA)
- Fraternal Order of Police (FOP)
- International Association of Campus Law Enforcement Administrators (IACLEA)
- International Association of Directors of Law Enforcement Standards and Training (IADLEST)
- Major Cities Chiefs Association (MCCA)
- National Association of Women Law Enforcement Executives (NAWLEE)
- National Tactical Officers Association (NTOA)
“The IACP and the Fraternal Order of Police, along with six leading law enforcement leadership and labor organizations, will bring together our collective experience, subject matter expertise, and unparalleled reach in the field to build and deliver comprehensive technical assistance, informed by cutting-edge innovation and promising practices, that embraces a collaborative, supportive approach to serving law enforcement and the communities they are sworn to protect,” said IACP President Louis M. Dekmar, Chief of the LaGrange, Georgia, Police Department.
“The FOP is very pleased to partner with the IACP and the U.S. Department of Justice on the Collaborative Reform Initiative,” said Chuck Canterbury, National President of the Fraternal Order of Police. “Our members have a great deal of knowledge and experience from their own work in our streets and communities. Together, we can put this information and training to work to benefit all of our colleagues around the nation.”
“The Major Cities Chiefs Association has been very engaged in the discussion with the Department of Justice on revamping the entire collaborative reform process,” said Montgomery County, Maryland Police Chief Tom Manger. We look forward to a meaningful continued role in implementing this vision alongside colleagues from many other law enforcement groups.”
This partnership brings together the nation’s public safety leaders and will touch nearly every sector of the law enforcement field. Through the combined membership of over 420,000, the CRI-TAC will provide subject matter expertise; share resources and training materials for use in technical assistance delivery; and contribute to outreach, marketing, and membership engagement. Today’s award follows an earlier announcement from the COPS Office regarding significant changes to the Collaborative Reform Initiative to provide technical assistance and support “by the field, for the field.”
The Collaborative Reform Initiative provides critical and tailored technical assistance resources to state, local, territorial, and tribal law enforcement agencies on a wide variety of topics. Through the program, agencies receive technical assistance from leading experts in a range of public safety, crime reduction, and community policing topics. Law enforcement agencies that are interested in receiving technical assistance through the Collaborative Reform Initiative should visit the COPS Office website at https://cops.usdoj.gov/collaborativereform.
The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
Texas Man Pleads Guilty to Making False Statements in Relation to Blowout Preventer Testing on Oil Platform in Gulf of MexicoRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that KENNETH JOHNS, age 46, of Rosharon, Texas, pled guilty today to making false statements in relation to the veracity of blowout preventer testing on an offshore oil and gas platform located at Ship Shoal 225 positioned on a federal mineral lease in the Gulf of Mexico. Specifically, JOHNS pled guilty to one count of making false statements to the Bureau of Safety and Environmental Enforcement’s (BSEE) Safety and Incident Investigation Division (SIID) of the United States Department of Interior.
According to court documents, on or about November 27, 2012, production and well workover operations were being conducted on the platform and the blowout preventer system had to be tested. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control.
On or about November 28, 2012, JOHNS and another worker created a false blowout preventer test. The next day when BSEE inspectors conducted a routine compliance inspection of the platform, the fabricated blowout preventer pressure test chart was presented to the BSEE inspectors with the expectation that it would be a passing test and the inspectors would not find the platform to be in non-compliance for failing to properly test the blowout preventer system. JOHNS signed the fabricated pressure chart and a schematic of the testing sequence as if he had actually been involved in the BOP testing.
During subsequent investigation of the veracity of the blowout preventer test by the Department of Interior, JOHNS lied and told investigators the BOP chart with his signature was pre-signed and that he had been testing a pump when he made the chart.
JOHNS faces a maximum term of imprisonment of five years per count and/or a maximum fine of $250,000 per count. U.S. District Judge Nannette Jolivette Brown set sentencing for March 22, 2018.
Acting U.S. Attorney Evans praised the work of the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from BSEE, and the Environmental Protection Agency-Criminal Investigation Division in investigating this matter. Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit is in charge of the prosecution.
Stratford Man Sentenced to 30 Months in Prison for Distributing Heroin Involved in Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAYMOND J. GORDON, also known as “X-RAY,” 30, of Stratford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 30 months of imprisonment, followed by five years of supervised release, for distributing heroin involved in an overdose death last year.
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 December 10, 2016, Stratford Police and emergency medical personnel responded to a Stratford residence after receiving a report of an unresponsive 22-year-old female. The female, who was in her bedroom, was pronounced deceased. Responding officers collected wax folds containing suspected heroin, a hypodermic needle and other drug paraphernalia from the bedroom. Investigators also seized the victim’s cellphone. The investigation revealed that the victim purchased heroin from GORDON shortly before she died.
GORDON has been detained since his arrest on May 16, 2017. On August 29, he pleaded guilty to one count of distribution of heroin.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stratford Police Department. The task force includes personnel from the Bridgeport, Milford, Norwalk, Stamford and Stratford Police Departments, and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Southaven Alderman Indicted for Transportation of Child PornographyRead the Press Release
Oxford, Miss. – Ronald W. Hale, an Alderman for the City of Southaven, Miss. has been charged with transportation of child pornography, announced United States Attorney for the Northern District of Mississippi William C. Lamar, Special Agent in Charge of the FBI in Mississippi Christopher Freeze, and DeSoto County Sheriff Bill Rasco.
Hale, age 57, was charged in a one count indictment for violating Title 18, United States Code, Sections 2252 (1)(a), which charges that he knowingly used a means of interstate or foreign commerce to transport or ship a visual depiction involving a minor engaged in sexually explicit conduct.
Hale surrendered to the United States Marshals Service, and made his initial appearance and arraignment in federal court on Wednesday. If convicted, he faces a maximum of 20 years in federal prison and a fine of up to $250,000.
The case is being investigated by the FBI Jackson Division’s Southaven Resident Agency and DeSoto County Sheriff’s Department, and is being prosecuted by the United States Attorney’s Office for the Northern District of Mississippi. The Southaven Police Department also assisted with the investigation.
The public is reminded that, as in any criminal case, a person is presumed innocent unless and until proven guilty in a court of law. The charges filed merely contain allegations of criminal conduct.
Shelton Man Pleads Guilty to Defrauding Owner of Stamford Ice Skating RinkRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARK J. ZITO, 55, of Shelton, waived his right to be indicted and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of wire fraud.
According to court documents and statements made in court, from October 1999 to August 2014, ZITO was the general manager of Stamford Twin Rinks, an ice skating facility in Stamford. The facility is owned and operated by RivCan Associates, LLC (“RivCan”). ZITO was responsible for managing and overseeing the ice skating facility’s operations, and he had a written contract with RivCan in which he would be paid commissions for securing agreements from third party vendors to place advertising at the ice skating facility. ZITO created and utilized AAZ Consulting, an unincorporated entity controlled by him, to bill RivCan for these commissions.
During his employment, ZITO submitted to RivCan numerous fraudulent invoices, primarily for services that RivCan neither requested nor authorized, or for commissions that were either fraudulent or grossly inflated. As general manager, ZITO approved the payment of these invoices and directed his subordinates to issue him checks payable to AAZ Consulting.
The total loss from ZITO’s illegal conduct is $490,468.81, which also includes funds he received by claiming payments for purportedly maintaining and updating the skating rink facility’s internet website, and through unauthorized benefits in the form of excess salary payments, excess vacation pay, and cellular telephone reimbursements.
Chief Judge Hall scheduled sentencing for March 19, 2018, at which time ZITO faces a maximum term of imprisonment of 20 years. ZITO is released on bond pending sentencing.
This matter has been investigated by the U.S. Secret Service, Stamford Police Department, Connecticut State Police, and Connecticut Financial Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Settlement Requires Clean Air Act Compliance at ArcelorMittal Monessen Coke PlantRead the Press Release
The United States and the Commonwealth of Pennsylvania have settled a federal court case against ArcelorMittal Monessen LLC (AMM), involving alleged Clean Air Act violations at AMM’s coke (purified coal) plant in Monessen, Pennsylvania.
The proposed consent decree, filed in U.S. District Court in Pittsburgh, resolves a joint federal-state complaint against AMM, which is a subsidiary of ArcelorMittal, the world’s largest steel making company.
Under the settlement, AMM will pay a $1.5 million penalty divided equally between the U.S. and Pennsylvania, and implement an estimated $2 million in air pollution controls to limit particulate and sulfur compound emissions.
“This settlement will reduce harmful air pollutants, benefiting the health and environment of residents around the Monessen coke plant,” said Acting Assistant Attorney General Jeffrey H. Wood for the Environment and Natural Resources Division of the Department of Justice. “The Department of Justice will continue to work with the EPA and other federal and state agencies to ensure that companies comply with the Clean Air Act.”
“This settlement demonstrates how EPA can work with our state partners to implement the Clean Air Act to reduce harmful air pollutants in communities,” said EPA Mid-Atlantic Regional Administrator Cosmo Servidio. “Because of the Act, Americans breathe less pollution and face lower risks of premature death and other serious health effects.”
“Through aggressive enforcement of the Clean Air Act, the Department of Justice, EPA, and the Commonwealth of Pennsylvania have brought relief to the residents of Monessen and the surrounding communities,” said Acting United States Attorney Soo C. Song for the Western District of Pennsylvania. “In addition to paying a significant civil penalty, AMM will invest in pollution-control measures designed to bring the company back into compliance with the Clean Air Act.”
The complaint alleges Clean Air Act violations based on inspections by the U.S. Environmental Protection Agency and the Pennsylvania Department of Environmental Protection, as well as follow-up requests for information. The alleged violations include excessive emissions of particulate matter from industrial operations.
Particulate matter emissions include microscopic solids or liquid droplets that can cause serious health problems when inhaled, particularly impacting children, the elderly, and those suffering from respiratory problems.
The proposed consent decree, available for review at https://www.justice.gov/enrd/consent-decrees, is subject to a 30-day public comment period and final court approval.
Settlement Requires Clean Air Act Compliance at ArcelorMittal Monessen Coke PlantRead the Press Release
The United States and the Commonwealth of Pennsylvania have settled a federal court case against ArcelorMittal Monessen LLC (AMM), involving alleged Clean Air Act violations at AMM’s coke (purified coal) plant in Monessen, Pennsylvania.
The proposed consent decree, filed in U.S. District Court in Pittsburgh, resolves a joint federal-state complaint against AMM, which is a subsidiary of ArcelorMittal, the world’s largest steel making company.
Under the settlement, AMM will pay a $1.5 million penalty divided equally between the U.S. and Pennsylvania, and implement an estimated $2 million in air pollution controls to limit particulate and sulfur compound emissions.
“This settlement will reduce harmful air pollutants, benefiting the health and environment of residents around the Monessen coke plant,” said Acting Assistant Attorney General Jeffrey H. Wood for the Environment and Natural Resources Division of the Department of Justice. “The Department of Justice will continue to work with the EPA and other federal and state agencies to ensure that companies comply with the Clean Air Act.”
“This settlement demonstrates how EPA can work with our state partners to implement the Clean Air Act to reduce harmful air pollutants in communities,” said EPA Mid-Atlantic Regional Administrator Cosmo Servidio. “Because of the Act, Americans breathe less pollution and face lower risks of premature death and other serious health effects.”
“Through aggressive enforcement of the Clean Air Act, the Department of Justice, EPA, and the Commonwealth of Pennsylvania have brought relief to the residents of Monessen and the surrounding communities,” said Acting United States Attorney Soo C. Song for the Western District of Pennsylvania. “In addition to paying a significant civil penalty, AMM will invest in pollution-control measures designed to bring the company back into compliance with the Clean Air Act.”
The complaint alleges Clean Air Act violations based on inspections by the U.S. Environmental Protection Agency and the Pennsylvania Department of Environmental Protection, as well as follow-up requests for information. The alleged violations include excessive emissions of particulate matter from industrial operations.
Particulate matter emissions include microscopic solids or liquid droplets that can cause serious health problems when inhaled, particularly impacting children, the elderly, and those suffering from respiratory problems.
The proposed consent decree, available for review at https://www.justice.gov/enrd/consent-decrees , is subject to a 30-day public comment period and final court approval.
Schuele Shooter Sentenced to Life in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Roderick Arrington, a/k/a Ra-Ra, 37, of Buffalo, NY, who was convicted following a jury trial of racketeering conspiracy, murder-in-aid-of-racketeering, and related charges, was sentenced by U.S. District Judge Richard J. Arcara to consecutive sentences of life in prison. The defendant was also sentenced to 30 years in prison on two other firearm charges.Assistant U.S. Attorneys Wei Xiang and Paul Parisi, who tried the case, stated that Arrington, a member of the Schuele Boys Gang, killed Quincy Balance, a/k/a Shooter, at the intersection of Northland and Stevens on the East Side of Buffalo on August 30, 2012. Arrington and other Schuele Boys associates believed Balance was involved in the shooting murder of one of their associates on nearby Carl Street four days earlier. Arrington exacted vengeance by shooting Balance three times as Balance pleaded that he didn’t kill the deceased associate.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, was responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana. Arrington is one of 28 Schuele Boys Gang members and associates arrested in this case. To date, 27 of the 28 defendants arrested have been convicted.
“In accordance with the mandate set by President Trump and Attorney General Sessions to reduce violent crime and make our communities safer, this Office, working with our federal, state, and local partners, is methodically and systematically dismantling the gangs which have terrorized our communities and corrupted our youth for far too long,” said U.S. Attorney Kennedy. “Gang members beware, if you pull the trigger, then the bang that will ring in your ears forever will be that of the steel door slamming on the cell in the federal prison in which you will spend the rest of your life.”
The sentencing is the result of an investigation by the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the New York State Police, under the direction of Major Edward Kennedy. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Edinboro University Police Department in Pennsylvania; the West Tennessee Judicial Drug Task Force; the City of McAllen, Texas Police Department; HSI Harlingen, Texas; and the FBI offices in Houston, Texas and Jackson, Mississippi.
San Jose Businesswoman Sentenced to Prison for High-Technology Worker Visa FraudRead the Press Release
SAN JOSE - San Jose businesswoman Sridevi Aiyaswamy was sentenced to 13 months in prison today as a result of her involvement in executing an H-1B visa fraud scheme, announced U.S. Attorney Brian J. Stretch and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin. The sentence was handed down by the Honorable Lucy H. Koh, United States District Judge, after Aiyaswamy pleaded guilty to the crime on July 19, 2017.
According to her plea agreement, Aiyaswamy, 50, of San Jose, pleaded guilty to three counts of visa fraud. Aiyaswamy admitted that between April 2010 and June 2013 she made numerous false statements and submitted over 25 fraudulent documents to the United States Citizenship and Immigration Services (USCIS) to obtain H-1B non-immigrant classifications for skilled foreign workers. Acting as a petitioner on behalf of foreign worker beneficiaries, Aiyaswamy falsely represented in I-129 petitions that the foreign worker beneficiaries would be working at an information technology and networking company in San Jose, Calif. Aiayswamy further submitted counterfeit statements of work with forged signatures as back-up documentation to the I-129 petitions. In fact, at the time she submitted these documents to USCIS, Aiyaswamy knew that the statements regarding offers of work from the South Bay company for these beneficiaries were false statements, and that the company had not made any offers of employment regarding these individuals.
A federal grand jury indicted Aiyaswamy on December 3, 2015, charging her with 34 counts of visa fraud, in violation of 18 U.S.C. § 1546(a). Pursuant to her plea agreement, Aiyaswamy pleaded guilty to three of the counts of visa fraud and the remaining counts were dismissed.
In addition to the prison term, Judge Koh sentenced Aiyaswamy to a $10,000 fine and a three-year period of supervised release. Judge Koh ordered the defendant to self-surrender by on February 14, 2018.
Assistant U.S. Attorneys John Bostic and Jeff Nedrow are prosecuting the case with the aid of Mimi Lam, Laurie Worthen and Susan Kreider. The prosecution is the result of an investigation led by HSI. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security at the California Service Center and the San Francisco Field Office also assisted with the investigation.
Romanian Man Sentenced for His Role in Fraud SchemeRead 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 Giovani Hornea, 21, of Romania, who was convicted of conspiracy to commit bank fraud, was sentenced to 38 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $156,266.30 in restitution.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between October 4, 2015, and November 14, 2015, the defendant conspired with co-defendants Nicolae Sarbu and his wife, Marinela Unguru-Ducila, and others to execute a scheme to defraud Bank of America.
The defendants used skimming devices and cameras on seven occasions at automated teller machines (ATM’s) in the Buffalo and Rochester areas as well as in the State of Pennsylvania. Bank account information and personal identification numbers (PIN’s) were recorded without the true account holder’s knowledge or authorization and then used to make unauthorized withdrawals of cash from the various ATM’s. A skimmer is a device used unlawfully to record bank account information from a customer’s debit card when the card is inserted into an ATM.
Nicolae Sarbu has been convicted and was sentenced to 25 months in prison. Marinela Unguru-Ducila was also convicted and sentenced to time served and one year supervised release.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Rocky River man was sentenced to more than two years in prison for laundering money from investorsRead the Press Release
A Rocky River man was sentenced to more than two years in prison for laundering money from investors and using at least some of it for personal expenses, said U.S. Attorney Justin E. Herdman and IRS Special Agent in Charge Ryan L. Korner.
Mark Dulik, 31, was sentenced to 27 months in prison and ordered to pay $1.1. million in restitution after previously pleading guilty to four counts of money laundering.
Dulik owned and operated Rework, Inc., based in Rocky River, which provided cloud-based software services. Dulik convinced several individuals to invest in Rework by convincing them that it was a legitimate, on-going business – when in fact Dulik converted the investors’ funds for his own personal use to pay for his lavish lifestyle, according to the court documents.
Investigators determined Dulik used new investors’ money to pay dividends/interest payments back to older investors, representing to the earlier investors that the money represented profits from the company, when in fact it operated more like a Ponzi scheme, according to court documents.
“This defendant mislead investors, causing pain and stress to his victims,” Herdman said.
“Behind every lie is a choice,” Korner said. “Mr. Dulik lied to his family, friends and business associates and his investment scheme had devastating effects on his victims.”
The matter is being prosecuted by Assistant U.S. Attorney Mark S. Bennett following an investigation by the Internal Revenue Service’s Criminal Investigation.
Rochester Man Sentenced Drug Trafficking and Gun Possession ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert Swinton, 42, of Rochester, NY, who was convicted after a jury trial in July 2017 of possession of cocaine with intent to distribute, maintaining a drug involved premises, possession of firearms in furtherance of drug trafficking crimes, and possession of firearms and ammunition as a previously convicted felon, was sentenced to 22 years and six months in prison, and ordered to pay a fine of $400 by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Katelyn Hartford and Charles E. Moynihan, who handled the prosecution of the case, stated that on October 16, 2012, members of the Greater Rochester Area Narcotics Enforcement Team and Violent Crime Task Force, pursuant to a search warrant, searched Swinton’s residence located at 562 Maple Street in Rochester. As officers entered the location, they saw a co-defendant, David Jones, run from the kitchen into the living room. Officers arrested defendant Swinton while he was standing in a doorway to a bedroom adjacent to the living room. A woman, Danielle Bowen, was also arrested in the living room.Officers searched the location and found, a .223 caliber rifle, which was loaded with 30 rounds of .223 and .556 caliber of ammunition. Officers also found a .357 caliber revolver, which was loaded with six rounds of .357 caliber ammunition. The firearms were found under the bedsheets and pillow on the bed in the defendant’s bedroom.
In the same bedroom, officers found drug packaging material and mail and identifications paperwork belonging to Swinton. At various other locations in the premises, officers discovered cocaine, drug paraphernalia, digital scales, Pyrex glass beakers, and other items used to process cocaine hydrochloride into crack cocaine.
The sentencing is the result of an investigation by the Rochester Police Department under the direction of Chief Michael Ciminelli and the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.Rhode Island Man Sentenced for Conspiring to Commit Acts of Terrorism to Support ISISRead the Press Release
BOSTON – Nicholas Rovinski was sentenced today in federal court in Boston for providing material support to the Islamic State of Iraq and Syria (ISIS).
Nicholas Alexander Rovinski, a/k/a Nuh Amriki, a/k/a Nuh Andalusi, 27, of Warwick, R.I., was sentenced by U.S. District Court Judge William G. Young to 15 years in prison and a lifetime of supervised release. In September 2016, Rovinski pleaded guilty to conspiring with David Daoud Wright, 28, and Usaamah Abdullah Rahim (now deceased) to provide material support to the Islamic State of Iraq and Syria (ISIS) - a designated foreign terrorist organization - and conspiracy to commit acts of terrorism transcending national boundaries.
Wright was sentenced yesterday to 28 years in prison after being convicted by a federal jury of conspiracy to provide material support to ISIS, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to obstruct justice and obstruction of justice.
In December 2014, Rovinski began talking with Wright about their mutual desire to support ISIS and how they could provide assistance to that terrorist organization. By April 2015, Rovinski, Wright, and Rahim had agreed to commit attacks and kill people inside the United States – acts which they believed would support ISIS’s objectives. Their attack plans included the beheading of a New York woman whom ISIS had identified to its supporters for murder through a “fatwah” or religious decree. In May 2015, Junaid Hussain, an ISIS recruiter in Syria, had directly communicated instructions to Rahim regarding the murder of the intended New York victim, in which the three men each agreed to play a critical role.
During the early morning hours of June 2, 2015, Rahim sought Wright’s guidance and advice, as Rahim could not wait until July 4, 2015, as originally planned, to go after their target, and instead wanted to go operational that day. Rahim mentioned the possibility of going after an “easier” target -- the “boys in blue” in Massachusetts. In response, Wright instructed and directed Rahim to “pursue martyrdom” and attack the police officers. Less than two hours after this call, Rahim was shot and killed after he lunged towards law enforcement officers with a large fighting knife.
On June 11, 2015, Rovinski was arrested for conspiring to provide material support to ISIS, but his arrest did not deter his commitment to ISIS. Even after being arrested, Rovinski sought to continue the attacks he had planned with Wright and Rahim, writing letters to Wright from prison discussing ways to take down the United States government and decapitate non-believers.
Pursuant to a cooperation agreement with the government, Rovinski testified against his co-defendant Wright at his trial. In addition, as the government told the court, Rovinski was a follower in this ISIS attack plan, while Wright was the mastermind.
Acting United States Attorney William D. Weinreb; Dana J. Boente, Acting Assistant Attorney General for the Justice Department’s National Security Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. This investigation was conducted by the Boston Joint Terrorism Task Force and the Rhode Island Joint Terrorism Task Force with assistance from the Boston Police Department, Boston Regional Intelligence Center, Massachusetts State Police, Commonwealth Fusion Center, Everett Police Department, Homeland Security Investigations, Rhode Island State Police, Warwick (R.I.) Police Department, Rhode Island Fusion Center, and the Naval Criminal Investigative Service. This case was prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Weinreb’s National Security Unit and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section.
Randolph Man Charged with Fentanyl-Related CrimesRead the Press Release
BOSTON – A Randolph man was indicted today in federal court in Boston on charges relating to the distribution of fentanyl on Cape Cod.
Jorge Barros a/k/a “Joey,” 24, was charged with conspiracy to distribute 40 grams or more of fentanyl and possession of fentanyl with the intent to distribute.
According to court documents, in September 2017, investigators identified Barros as a fentanyl distributor on Cape Cod. A cooperating defendant then made a series of recorded calls to Barros arranging for a fentanyl delivery. On Nov. 13, 2017, Barros attempted to deliver approximately 40 grams of fentanyl to the cooperator; however, before Barros could do so, he was arrested in Harwich, at which time law enforcement seized approximately 38 grams of fentanyl from him.
The charges provide for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. 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; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cape and Islands District Attorney Michael O’Keefe made the announcement today. The investigation was led by the DEA Cape Cod Resident Office and the Massachusetts State Police - Cape & Islands District Attorney’s Office in conjunction with the Brewster, Harwich, Sandwich, Mashpee, Chatham, Yarmouth, and Barnstable Police Departments and the Barnstable County Sheriff’s Department. Assistant U.S. Attorney Eric Rosen of Weinreb’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Randallstown Man Indicted for Possession and Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland - A federal grand jury has indicted John Michael Fowler, age 27, of Randallstown, Maryland, today on charges relating to the production and possession of child pornography.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, and Commissioner Kevin Davis of the Baltimore Police Department and Baltimore State’s Attorney Marilyn Mosby.
According to the five-count indictment, between 2013 and 2014 Fowler produced images of prepubescent minors engaged in sexually explicit conduct with an adult male. In addition, Fowler is being charged with one count of possession of child pornography.
Fowler faces a possible sentence of 30 years in prison for each count of production of child pornography and 20 years in prison for possession of child pornography.
An initial appearance is scheduled for 2:45 p.m. today in U.S. District Court in Baltimore before U.S. Magistrate Judge Beth P. Gesner.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 the FBI, the Baltimore Police Department and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul Budlow who is prosecuting the case.
Raleigh Investment Adviser Indicted on Charges of Fraud, Money Laundering, and Attempting to Corruptly Influence the Securities and Exhange CommissionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that STEPHEN CONDON PETERS, 44, of Raleigh, North Carolina, has been charged by a federal grand jury in a sixteen-count Indictment. The Indictment includes one count of Investment Advisor Fraud; one count of Fraud in the Sale of Unregistered Securities; nine counts of Wire Fraud; four counts of Engaging in Monetary Transactions in Criminally Derived Property; and one count of Corruptly Endeavoring to Influence a Federal Agency. The indictment also includes a lengthy forfeiture notice.
PETERS is scheduled for an initial appearance on the charges before United States Magistrate Judge Robert T. Numbers, II at 10:00 am on Thursday, December 21, 2017, at the United States District Court in Raleigh.
If convicted, the maximum punishment for committing Investment Advisor Fraud is not more than 5 years imprisonment. The maximum penalty for committing Fraud in the Sale of Unregistered Securities is five years imprisonment. The maximum penalty for Wire Fraud is twenty years imprisonment per count. The maximum penalty for Engaging in Monetary Transactions in Criminally Derived Property is ten years per count. The maximum penalty for Corruptly Endeavoring to Influence a Federal Agency is five years imprisonment. Each of the foregoing offenses also carry a maximum fine of up to $250,000 per count, a term of supervised release, and restitution if ordered.
An Indictment is an allegation of a crime. The defendant is presumed under the law to be innocent until proven guilty.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation with the assistance of the United States Securities and Exchange Commission. Assistant United States Attorney William M. Gilmore represents the United States.
Postal Worker Arrested for Stealing Valuable Items from U.S. MailRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Special Agent-in-Charge Eileen Neff of the Northeast Area Field Office, U.S. Postal Service Office of Inspector General (“USPS-OIG”), announced the arrest of JOSEFINA SALAS, an employee of the U.S. Postal Service for over eighteen years, on charges of mail theft. SALAS was presented yesterday in Manhattan federal court before the Honorable Sarah Netburn.
Acting U.S. Attorney Joon H. Kim said: “During the holiday season when the spirit of giving abounds, Josefina Salas, a postal employee, was allegedly interested only in taking and stealing. Salas allegedly used her access to U.S. mail to steal valuable items from people who trusted their mail would be delivered safely. We thank the U.S. Postal Service for their work to halt postal theft and insure the integrity of the mail.”
Special Agent-in-Charge of USPS-OIG Eileen Neff said: “If an employee of the Postal Service abuses their position and the public’s trust, as alleged in this matter, OIG agents thoroughly and vigorously investigate to resolve the situation.”
According to the allegations in the Complaint sworn out in Manhattan federal court:[1]
Over the course of approximately a year, SALAS, who was employed as an elevator operator at the USPS Processing and Distribution Center (“PDC”) located at 341 Ninth Avenue in New York, New York, stole various items from the United States mail, including cash, gift cards, jewelry, clothing, and a phone. SALAS was previously captured on video using a box-cutter to open mail packages and then stealing the contents of those packages. SALAS was arrested yesterday at the end of her shift at the PDC.
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SALAS, 66, of the Bronx, New York, is charged with one count of mail theft by a U.S. Postal Service employee, which carries a maximum sentence of 5 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the USPS-OIG.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900, or [email protected]. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html. The USPS OIG Hotline can be reached by phone 888-USPS-OIG and online at www.uspsoig.gov.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Samuel S. Adelsberg is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Plainfield Man Pleads Guilty to Producing Child PornographyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RYAN STONE, 30, of Plainfield, pleaded guilty today in Hartford federal court to one count of production of child pornography.
According to court documents and statements made in court, between March 30 and April 1, 2017, STONE took sexually explicit photographs and video of a six-year-old girl.
STONE is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 21, 2018, at which time he faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.
STONE has been in state custody since April 19 when he was arrested for criminal trespass in the first degree and criminal violation of a restraining order.
This matter is being investigated by Homeland Security Investigations and the Plainfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Pittsburgh Man Charged with Possession of Heroin and Synthetic OpioidsRead the Press Release
PITTSBURGH - A resident of the City of Pittsburgh has been indicted by a federal grand jury in Pittsburgh on charges of distributing and possessing with intent to distribute heroin and synthetic opioids, Acting United States Attorney Soo C. Song announced today.
The two-count Indictment named Shawn B. Nichols, aka Smitty, 26, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Nichols distributed and possessed with intent to distribute quantities of a mixture containing detectable amounts of furanyl fentanyl, and/or U-47700, and/or heroin, which are Schedule I controlled substances, on or about August 11, 2017, and August 14, 2017.
The law provides for a maximum total sentence of up to 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
Task Force Officers with the Drug Enforcement Administration, as well as members of the Canonsburg Police Department, Washington County Sheriff’s Department, and Washington County District Attorney’s Office Drug Task Force, 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.
Phoenix Woman Sentenced to Prison for Defrauding Local CharitiesRead the Press Release
PHOENIX – This week, U.S. District Judge G. Murray Snow sentenced Mary Bauer (aka Mary Almassy) to 33 months in federal prison, followed by three years of supervised release. Bauer was also ordered to pay more than $1 million in restitution. Bauer had previously pleaded guilty to wire fraud.
Bauer defrauded nearly two dozen local and national charities out of more than a million dollars in consulting fees. Bauer held herself out as an experienced fundraiser who could help charities get large donations from wealthy philanthropists. Bauer falsely claimed that she and her employees and associates had special access to certain out-of-state donors who wanted to make large charitable gifts. Those donors did not exist. Bauer made up the fictitious donors, as well as fictitious employees and associates, and fabricated numerous documents to conceal her fraud and lull her victims into continuing to pay her large monthly fees. Bauer’s victims include charities dedicated to curing debilitating diseases, educating Arizona’s schoolchildren, and rehabilitating injured wildlife.
“Frauds against charities are far-reaching, because they hurt not only the organizations, but the people the charities seek to serve, and the persons who have given to support the cause,” stated Elizabeth A. Strange, First Assistant U.S. Attorney. “Our office will continue to aggressively prosecute anyone who targets charitable organizations.”
“A prison sentence is very appropriate for someone who defrauded organizations dedicated to charitable causes and especially someone that took numerous steps to try to conceal her fraudulent activity,” said Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS-Criminal Investigation.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Bridget Minder, Frank Galati, and Monica Klapper, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-001157-GMS
RELEASE NUMBER: 2017-125_Bauer
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Paterson Man Pleads Guilty to Robbing Two Passaic County BanksRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man today admitted robbing a TD Bank in Paterson in June 2017 and an Investors Bank in Clifton, New Jersey, in July 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
James M. Chestnut, 62, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with two counts of bank robbery.
According to the documents filed in this case and statements made in court:
On June 30, 2017, Chestnut entered a TD Bank in Paterson and handed a teller a note stating “Put 100s and 50s in the envelope. No dye pack.”
On July 5, 2017, Chestnut entered an Investors Bank in Clifton and approached a teller, this time brandishing what appeared to be a firearm. He told the teller to “Open your drawer. Give me your money. All the 100s. Don’t call the cops or I’ll shoot you.”
During the plea, Chestnut also admitted attempting to rob a Chase Bank in Saddle Brook, New Jersey, on July 3, 2017.
Both bank robbery counts carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 21, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the Paterson Police Department, under the direction of Director Jerry Speziale; the Saddle Brook Police Department, under the direction of Chief Robert Kugler; the Clifton Police Department, under the direction of Chief Mark Centurione; and the Passaic Police Department, under the direction of Chief Luis A. Guzman, for their assistance.
In addition, the investigation was aided by the FBI Violent Crime Task Force, which is comprised of law enforcement personnel from the Bergen County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Roxbury Police Department, the Paterson Police Department, and the N.J. State Police.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Parsons Woman Pleads Guilty to $5 Million EmbezzlementRead the Press Release
WICHITA, KAN. – A Parsons woman pleaded guilty Monday to embezzling $5 million from a credit union where she worked, U.S. Attorney Tom Beall said.
Nita Rae Nirschl, 66, Parsons, Kan., pleaded guilty to one count of embezzlement, one count of money laundering and one count of attempted tax evasion. In her plea, she admitted the crimes occurred while she was an officer and employee of Parsons Pittsburg Credit Union headquartered in Parsons, Kan. She withdrew money from the assets of the credit union and deposited the money into accounts she controlled. She used the stolen money to buy a car, a house and other items.
Sentencing is set for March 5, 2018. Both parties have agreed to recommend a sentence of five years in federal prison and an order of restitution.
Beall commended the FBI, the Internal Revenue Service and Assistant U.S. Attorney Lanny Welch for their work on the case.
Owner of East Bay Shipping Company Pleads Guilty to Felony Transportation of Hazardous MaterialsRead the Press Release
SAN FRANCISCO – Peiwen Zhou, pleaded guilty in federal court in San Francisco today to illegally transporting hazardous materials and failing to properly declare imports of toxic substances, announced United States Attorney Brian J. Stretch, Environmental Protection Agency Special Agent in Charge Jay Green, and U.S. Department of Transportation Office of the Inspector General Regional Special Agent in Charge William Swallow. The plea was accepted by the Honorable James Donato, U.S. District Judge.
In pleading guilty, Zhou, 55, of Palo Alto, admitted he did not adequately train employees at his company, AK Scientific, Inc., currently located in Union City, Calif., on the requirements of the Hazardous Materials Transportation Act, or HMTA. Zhou further admitted that as a result of his failure, he caused AK Scientific employees to ship hazardous materials on a number of occasions without properly labeling, marking, and identifying the packages as containing such materials, in violation of the HMTA. Zhou also admitted that he caused AK Scientific employees to fail to comply with the rules and regulations set forth in the Toxic Substances Control Act, or TSCA. Specifically, Zhou admitted that he caused AK Scientific employees to not file TSCA import certifications on a number of occasions when the company imported chemical substances into the United States, including on one occasion when the chemical substance 1,2-dibromoethane was shipped to AK Scientific from China under a different name. In sum, Zhou and AK Scientific each were charged by superseding information with one count of violating the HMTA, in violation of 49 U.S.C. § 5124, and one count of violating the TSCA, in violation of 18 U.S.C. § 2.
As part of today’s agreement, Zhou pleaded guilty to a felony violation of the HMTA and a misdemeanor violation of TSCA. He also agreed to step down as CEO of AK Scientific and to play no role in the company’s shipping or regulatory functions. The company, meanwhile, entered into a deferred prosecution agreement in which it agreed to pay a $100,000 fine and retain an independent monitor to oversee compliance. Pursuant to the deferred prosecution agreement, the charges against the company will be dismissed if AK Scientific abides by the terms of the agreement for three years, including by maintaining compliance with safety and labelling requirements.
“The rules and regulations the defendant violated are designed to keep the public safe from hazardous materials and toxic substances, and we are committed to prosecuting those who flaunt them,” said U.S. Attorney Stretch.
“Americans must be protected from those who skirt laws designed to protect workers and the public from mismanagement of toxic substances,” said EPA Administrator Scott Pruitt. “The illegal importation and shipment of toxic substances in this case represents a clear threat to public safety and we will hold the responsible parties accountable under the law.”
"The plea agreement reached today demonstrates that ensuring the safety of the Nation's transportation systems remains a high priority for both the Office of Inspector General (OIG) and the Department of Transportation (DOT)," said William Swallow, DOT-OIG Regional Special Agent-in-Charge. "Working with our law enforcement and prosecutorial partners, we will continue our efforts to prevent and punish those who seek to compromise the integrity and safe transportation of hazardous materials."
Judge Donato scheduled Zhou’s sentencing hearing for April 18, 2018. The maximum statutory penalty for Zhou for violating the HMTA is five years in prison and a fine of up to $250,000; the maximum statutory penalty for Zhou for violating TSCA is up to one year in prison and a fine of up to $50,000 for each day of violation. However, any sentence will be imposed by the court only 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. Environmental Protection Agency’s Criminal Investigation Division, the U.S. Department of Transportation’s Office of Inspector General, and the U.S. Department of Homeland Security’s Homeland Security Investigations.
Northeast Ohio couple indicted for monthlong armed robbery spreeRead the Press Release
A 15-count indictment was filed charging a couple from Northeast Ohio for four armed bank robberies and armed robberies of several other stores this fall, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Casey Layne Liberty, 30, of Amherst, and Daniel T. Begin, 32, of Cleveland, were indicted on one count of conspiracy to commit bank robbery, four counts of bank robbery, conspiracy to commit Hobbs Act robbery and nine counts related to Hobbs Act robbery.
Liberty wore a disguise and robbed banks and stores while Begin acted as the getaway driver. They used the proceeds of the robberies to purchase drugs and food and to pay for hotel rooms, according to the indictment.
“This pair went on a monthlong crime spree in which they robbed banks and stores to feed their drug habit,” Herdman said. “It’s a miracle no one was killed, and we’re gratified this duo will likely be off the street for years to come.”
“This pair posed a danger to people doing their banking or simply picking up lunch,” Anthony said. “The fine work of the FBI agents, along with nearly a dozen police departments, has made our community safer.”
The pair are charged with the following bank robberies: Andover Bank in Conneaut on Sept. 19, Chase Bank in Medina on Sept. 28, First National Bank in Beachwood on Oct. 4 and the Chase Bank in Fairlawn on Oct. 12.
They are also charged with robbing a Subway in Findlay on Sept. 26, a Seven Eleven in Brunswick on Sept. 28, a Gamestop in Elyria on Oct. 7, a Domino’s Pizza in Madison on Oct. 10, a Mr. Hero in Canton on Oct. 11, a Subway in Avon on Oct. 15, a Subway in Elyria on Oct. 16, a Mr. Hero in Perkins Township on Oct. 19, a Domino’s Pizza in North Olmsted on Oct. 22 and a Mr. Hero in Berea on Oct. 22.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Ranya Elzein and Robert J. Patton following an investigation by the FBI and the police department of Conneaut, North Olmsted, Medina, Beachwood, Avon, Elyria, Findlay, Perkins Township, Madison, Berea and North Ridgeville.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Nigerian Nationals Charged with Operating Business Compromise SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that two Nigerian nationals have been charged with various federal offenses stemming from a business e-mail compromise scheme.
OLUMUYIWA YAHTRIP ADEJUMO, also known as “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade” and “Hadey,” 32, was arrested on a federal criminal complaint on November 16, 2017, in Toledo, Ohio, where he was living as a lawful permanent resident of the U.S. The complaint charges ADEJUMO with conspiracy to commit wire fraud, and wire fraud. ADEJUMO, who has been detained since his arrest, made his initial appearance in the District of Connecticut today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven.
ADEYEMI ODUFUYE, also known as “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz,” and “Jefe,” 31, was arrested in the United Kingdom on December 19, 2016. ODUFUYE had been residing in Sheffield, England, where he was a student at Sheffield Hallam University. On December 20, 2016, a federal grand jury in New Haven returned a seven-count indictment charging ODUFUYE and another individual with one count of conspiracy, five counts of wire fraud, and one count of aggravated identity theft. ODUFUYE was extradited from the U.K. to the U.S. and is detained while awaiting trial. The other individual in the indictment has not been apprehended, and his identity has not been publicly revealed.
As alleged in court documents, the FBI has been investigating a business compromise scheme in which ADEJUMO, ODUFUYE and others targeted CEOs, CFOs, controllers and others at U.S. businesses using sophisticated cyber techniques to defraud the businesses of millions of dollars. As part of this scheme, in late 2015, ADEJUMO, ODUFUYE and others sent or caused to be sent dozens of e-mails to the controller of a company in Torrington, Connecticut. In the e-mails, ODUFUYE posed at the real CEO of the victim company and instructed the controller to send multiple wire transfers exceeding a total of $1 million from the company’s accounts to various individuals and purported entities. Because of these fraudulent emails, the company sent five wire transfers totaling more than $500,000 to accounts in Virginia, Florida, Washington, D.C., and Hong Kong. The investigation has revealed that ADEJUMO and ODUFUYE controlled multiple e-mail and social media accounts used in the scheme.
It is further alleged that the co-conspirators sent e-mails and attachments containing malware to the intended recipients.
It is alleged that ODUFUYE and others also targeted a company headquartered in Waterbury, Connecticut, as part of this scheme.
To date, the FBI has identified 36 wire confirmations in e-mail accounts utilized by the alleged co-conspirators from September 2015 to May 2016, totaling more than $1.6 million. This figure does not include the more than $500,000 in wire transfers from the victim company in Connecticut.
Each charge of wire fraud and conspiracy to commit wire fraud carries a maximum term of imprisonment of 20 years. Aggravated identity theft carries a mandatory consecutive term of imprisonment of at least two years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Durham thanked the Department of Justice’s Office of International Affairs, the United Kingdom’s National Crime Agency, and the United Kingdom’s Metropolitan Police for their assistance in this case.
To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.
Monroe woman gets more than six years in prison for submitting fake titles on stolen vehiclesRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that two Monroe women were sentenced Monday for a scheme to issue new titles for stolen automobiles.
Ashley Owens, 31, of Monroe, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. to 76 months in prison on one count of conspiracy to commit mail fraud and three years’ supervised release. Felicia Simpson, 40, of Monroe, La., was sentenced to five years’ probation on one count of misprision of felony, and Quinetta Grant, 45, of Suwanee, Ga., will be sentenced at a later date. According to the guilty pleas, from November 2014 to June 2015, the defendants illegally provided new titles to customers who possessed stolen automobiles. Owens would receive the titles from Grant and then deliver them to Simpson who worked for a private title processing business in Monroe. Altogether, 104 fraudulent titles were processed involving high-end late model luxury vehicles including Mercedes, BMW, Bentley and Lamborghini.
The FBI, Louisiana State Police, Miami Dade Police Department, Douglas County Sheriff’s Office in Georgia and the Monroe Police Department conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Mission Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on December 19, 2017, by U.S. District Judge Roberto A. Lange.
Dace Lunderman, age 33, was sentenced to 319 days in prison, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Lunderman was indicted by a federal grand jury on February 15, 2017. He pled guilty on December 19, 2017.
The conviction stemmed from an incident that occurred in the White Horse Community near Mission, in the early morning hours of January 6, 2017. Lunderman had been drinking at home and began arguing with a family member. He then picked up a knife and chased after two other individuals that were trying to depart the house. He ran into them near the doorway and cut one of them on the arm with the knife.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Lunderman was ordered to surrender to the U.S. Marshals Service by noon on December 27, 2017.
Milwaukee Man Sentenced to 30 years in Federal Prison for Sex TraffickingRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 20, 2017, United States District Judge J.P. Stadtmueller sentenced Jaboree Williams (age: 31) to 30 years in federal prison for sex trafficking.
On September 1, 2017, a jury found Williams guilty of 18 counts related to sex trafficking, interstate transportation of a victim for purposes of prostitution, conspiracy to distribute heroin, obstruction of justice, witness intimidation and witness tampering, contempt of court, and sending an extortionate threat.
The trial evidence established that Williams enticed and recruited victims into sex trafficking through force, fraud, and coercion. Multiple victims testified that Williams forced them to perform sex acts with “customers” for Williams’ benefit and to turn over all of the money they received to Williams. The evidence established that Williams trafficked his victims using a particular website and forced the victims to travel to locations outside of Wisconsin, including Illinois, Minnesota, Indiana, Georgia, Ohio, Pennsylvania, and Washington D.C. The victims further explained that if they broke Williams’ rules, he would severely beat them.
The trial evidence also established that during the investigation, Williams attempted to intimidate witnesses, directed witnesses to provide false testimony to a grand jury, and directed witnesses to destroy evidence. Despite a no-contact order entered by a federal magistrate judge, Williams also gained access to the internet from jail and used social media to threaten and intimidate witnesses and victims.
United States Attorney Haanstad commended the efforts of law enforcement in bringing Williams to justice, noting, “Jaboree Williams not only subjected his victims to extraordinary levels of violence and brutality but also attempted to use threats of additional violence to intimidate witnesses and obstruct this investigation. The United States Attorney’s Office, the FBI, and our state and local law enforcement partners are committed to working relentlessly to protect the community from these types of violent and predatory offenses.”
This case was investigated by the FBI’s Human Trafficking Task Force and the Racine Police Department, and with the assistance of the Oshkosh Police Department. The case was prosecuted by Assistant United States Attorneys Karine Moreno-Taxman and Laura S. Kwaterski.
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Middletown Man Charged with $6.5MM Wire Fraud Scheme, Money Laundering, False Statement and Tax Evasion OffensesRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that an Indictment was been handed down by a federal grand jury yesterday charging Michael Boyce, currently of Ocean City, New Jersey and formerly of Middletown, Delaware, with wire fraud, money laundering, false statement and tax evasion offenses. The defendant faces up to 20 years in prison on the wire fraud and money laundering charges, up to 30 years on the false statement charges, and five years on the tax evasion offenses.
The Indictment alleges that, between 2004 and 2016, Boyce, who was employed in the information technology department of a manufacturing company located in New Castle County, submitted purchase orders for more than $6.5 million of supplies that were never provided to the victim company. Boyce submitted or caused others to submit fake invoices to the company and forged the necessary approvals on the accompanying purchase orders. In order to secure payment of those invoices, Boyce also falsified documents verifying receipt of the phantom supplies. Based on this fraudulent documentation, the victim company paid the two suppliers listed on the invoices. Those suppliers, in turn, gave more than 85% of those payments back to Boyce.
While Boyce declared some of his illegal income on his taxes, for tax years 2012-2015, he omitted at least $1.4 million of that income, resulting in a failure to pay an additional amount of tax totaling more than $579,000. Also according to the Indictment, in connection with two different mortgage applications, Boyce falsely represented that at least some of his illegal income was, in fact, legitimate business income.
Acting U.S. Attorney Weiss gave the following comment, “I want to thank both the IRS and the FBI for their hard work in seeing this case to indictment. These investigative efforts insure that those who abuse their positions to enrich themselves will eventually be brought to justice. We remain committed to prosecuting those who betray not only the private trust of their employer, but also defraud the United States government.”
"Fulfilling individual tax obligations is a legal requirement. Those who willfully evade that responsibility undermine our democracy and therefore will be prosecuted," said Edward Wirth Acting SAC, Philadelphia field office. "IRS Criminal Investigation special agents are doing their job to ensure that honest individuals do not have to pick up the tab of those people not filing tax returns or filing false tax returns."
“Today’s indictment is significant and highlights the FBI’s collaboration with our partner agencies in Delaware as we hold this defendant accountable for illegal financial transactions and embezzlement,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. "The FBI and the IRS will continue to use all available tools to detect corporate fraud and to protect victim companies from those who pose an insider threat to their financial well-being.”
This case is the result of an investigation conducted by the IRS, Criminal Investigation and the FBI. The prosecution is being handled by Assistant United States Attorney Lesley Wolf.
The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Miami-Dade County Residents Sentenced for Conspiracy to Illegally Export Prohibited Articles to Syria in Violation of U.S. Export Control LawsRead the Press Release
Three Miami-Dade residents were sentenced today for their roles in a conspiracy to defraud the United States and to illegally export aviation parts and equipment to Syria, contrary to comprehensive U.S. economic sanctions against Syria, in violation of Title 18, United States Code, Section 371 and the International Emergency Economic Powers Act (IEEPA), Title 50, United States Code, Sections 1701-1706. The exports were sent to Syrian Arab Airlines, a/k/a “Syrian Air” (Syrian Air). Syrian Air had been designated as a Specially Designated National (SDN) by the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC), meaning that U.S. persons and entities were prohibited from doing business with Syrian Air without a license.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Dana J. Boente, Acting Assistant Attorney General for the Justice Department’s National Security Division, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Robert Luzzi, Special Agent in Charge, U.S. Department of Commerce’s Office of Export Enforcement (DOC), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force, made the announcement.
Ali Caby, a/k/a “Alex Caby”, 40, was sentenced by U.S. District Court Judge Beth Bloom to 24 months in prison, followed by two years of supervised release. Co-defendant Arash Caby, a/k/a “Axel Caby”, 43, was sentenced to 24 months in prison, followed by two years of supervised release and a $10,000 fine. Co-defendant Marjan Caby, 34, was sentenced to 12 months and one day in prison, followed by two years of supervised release. The defendants had previously pled guilty to the charged conspiracy to violate IEEPA by exporting dual-use goods, that is, articles that have both civilian and military application, without a license to Syrian Air, the Syrian government’s airline, which is an entity designated and blocked by OFAC for transporting weapons and ammunition to Syria in conjunction with Hizballah, a terrorist organization, and the Iranian Revolutionary Guard Corps (IRGC).
Ali Caby ran the Bulgaria office of AW-Tronics, a Miami export company that was managed by Arash Caby, and which shipped and exported various aircraft parts and equipment to Syrian Arab Airlines. Ali Caby and Arash Caby closely supervised and encouraged subordinate employees of AW-Tronics in the willful exportation of the parts and equipment to SDN Syrian Air, whose activities have assisted the Syrian government’s violent crackdown on its people. Marjan Caby, as AW-Tronics’ export compliance officer and auditor, facilitated these exports by submitting false and misleading electronic export information to federal agencies.
Mr. Greenberg and Mr. Boente commended the investigative efforts of the FBI, DOC, Department of Homeland Security (HSI), Defense Criminal Investigative Service, U.S. Customs and Border Protection and the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Thakur and Trial Attorney Matthew Walczewski of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
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.
Marijuana and Cocaine Smuggler Ordered to PrisonRead the Press Release
LAREDO, Texas – A 34-year-old man has been ordered to federal prison following his conviction for smuggling marijuana and cocaine and for possessing a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Abe Martinez. Andy Gomez, a legal permanent resident from Cuba who resided in Laredo, pleaded guilty Oct. 6, 2016.
Today, U.S. District Judge Diana Saldaña handed Gomez a total sentence of 120 months in federal prison followed by four years of supervised release. At the hearing, Judge Saldaña noted that the defendant caused this situation by his own actions.
On July 18, 2016, agents with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted surveillance on a home in North Laredo and witnessed Gomez and another individual leave the residence in two separate vehicles. They were later stopped, at which time authorities discovered more than 500 pounds of marijuana in the two vehicles. Gomez was also in possession of .380 Smith and Wesson pistol.
The investigation led agents to search a storage unit where they located more than 10 pounds of cocaine, more than 100 pounds of marijuana, a money counting machine and a credit card embosser machine.
Previously released on bond, Gomez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Mansfield Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
DALLAS — Thomas Adam Lewis, 37, of Mansfield, Texas, appeared yesterday in federal court before U.S. Magistrate Judge Renee Harris Toliver and pleaded guilty to one count of attempted production of child pornography. Lewis, who has been in federal custody since his arrest in September on related charges, faces a maximum statutory penalty of not less than 15 years and up to 30 years in federal prison, a $250,000 fine, and a lifetime of supervised release. Sentencing is scheduled for April 5, 2018. U.S. Attorney Erin Nealy Cox of the Northern District of Texas made the announcement today.
According to the plea agreement factual resume filed in the case, on August 4, 2017, a Grand Prairie Police Department detective began an undercover investigation, posing as a thirteen year old boy, targeting adults who were soliciting minors on the internet through the use of a third party messaging application.
Lewis using the screen name “Twinks only 33” (“Twinks33”), contacted the Detective and asked the Detective for pictures of himself. After receiving an image of a minor male wearing jeans, a white tank top, and a baseball cap, Lewis replied, “Um you are sexy,” and asked the Detective if he had any shirtless pictures. During the next few days, Lewis repeatedly asked the Detective to take shirtless and nude pictures of himself and send the child pornography images to him.
The conversations continued, according to the factual resume, and Lewis asked, “when can we meet?” Sporadically over a few days Lewis and the Detective discussed meeting and on the afternoon of August 29, 2017, Lewis arrived at a designated apartment complex in Grand Prairie and was arrested. Lewis provided law enforcement with the passcode to his cellular device. Upon review of the phone, law enforcement located the communications between Twinks33 and the Detective. Lewis was using other social networking applications and was engaged in additional communications entailing the sexual exploitation of minors. Law enforcement contacted resource officers at two area high schools in an attempt to identify possible victims and located a 15-year-old boy who had also chatted with Lewis. The conversations were sexually explicit and Lewis attempted to entice the boy to have sex with him.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the Federal Bureau of Investigation and the Grand Prairie Police Department. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
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