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7 February 2018
New York Doctor Sentenced to 13 Years in Prison for Multi-Million Dollar Health Care FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Dr. Syed Imran Ahmed, a licensed medical doctor who practiced at hospitals in Brooklyn and on Long Island, was sentenced by United States Chief Judge Dora L. Irizarry of the Eastern District of New York to 13 years’ imprisonment for submitting millions of dollars in false and fraudulent claims to Medicare. The Court also ordered Dr. Ahmed to pay $7,266,008.95 in restitution, to forfeit $7,266,008.95, and to pay a $20,000 fine. Dr. Ahmed was convicted by a federal jury after an 11-day trial of one count of health care fraud, three counts of making false statements related to health care matters, and two counts of money laundering.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG) Office of Investigations, New York Region, announced the sentence.
“Dr. Syed Ahmed treated Medicare like a personal piggy bank, stealing over $7.2 million by making fraudulent claims for medical procedures he never performed,” stated United States Attorney Donoghue. “Dr. Ahmed will now pay the price for violating the trust that Medicare places in doctors. His 13-year prison sentence and the heavy payments imposed should send a powerful message of deterrence to other medical professionals who would seek to defraud vital taxpayer-funded programs like Medicare for personal enrichment. This Office, together with our law enforcement partners, will remain vigilant in rooting out health care fraud.”
“Medicare is a crucial program for many of the most vulnerable people in our society – American seniors and those with disabilities,” stated Acting Assistant Attorney General Cronan. “In this case, Syed Ahmed put his own greed ahead of the trust we put in our medical professionals, draining over $7 million in precious funding from our Medicare program. His conviction and the sentence imposed in this case demonstrate the Department of Justice’s unwavering commitment to protecting public funds and the integrity of our health care system.”
“Health care fraud is often billed as a victimless crime, but that couldn’t be further from the truth,” stated FBI Assistant Director-in-Charge Sweeney. “Someone is always left to foot the bill. Insurers, the insured, and others are the ones who pay the price. Those who employ these schemes will most certainly be brought to justice, as we’ve proven here today.”
“The fraud scheme that Dr. Ahmed engaged in was motivated by pure greed,” stated HHS OIG Special Agent-in-Charge Lampert. “HHS OIG and our law enforcement partners will continue to aggressively pursue all those who seek to unlawfully enrich themselves by victimizing participants of the Medicare program.”
According to evidence presented at trial, Dr. Ahmed, a surgeon who practiced at Kingsbrook Jewish Medical Center and Wyckoff Heights Medical Center in Brooklyn, Franklin Hospital in Valley Stream, and Mercy Medical Center in Rockville Centre, New York, billed the Medicare program for incision-and-drainage and wound debridement procedures that he did not perform. Dr. Ahmed wrote out lists of phony surgeries and sent the lists to his billing company in Michigan, with instructions that the procedures be billed to Medicare. Dr. Ahmed also directed that the surgeries be billed as though they had taken place in an operating room in order to increase the payout for the fraudulent scheme. The evidence introduced at trial showed that Medicare paid over $7 million to Dr. Ahmed for his fraudulent claims.The FBI and HHS OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Assistant U.S. Attorney F. Turner Buford, formerly a Fraud Section trial attorney, Senior Litigation Counsel Patricia Notopoulos of the United States Attorney’s Office for the Eastern District of New York, and Trial Attorney Debra Jaroslawicz of the Fraud Section are prosecuting the case. Assistant U.S. Attorney Karin Orenstein of the Office’s Civil Division is responsible for the forfeiture of assets.
The Defendant:
Syed Imran Ahmed
Age: 51
Residence: Glen Head, New YorkE.D.N.Y. Docket No. 14-CR-277 (DLI)
New York Doctor Sentenced to 13 Years in Prison for Multi-Million Dollar Health Care FraudRead the Press Release
A New York surgeon who practiced at hospitals in Brooklyn and Long Island was sentenced today to 156 months in prison for his role in a scheme that involved the submission of millions of dollars in false and fraudulent claims to Medicare.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations made the announcement.
Syed Imran Ahmed M.D., 51, of Glen Head, New York, was sentenced by U.S. District Judge Dora L. Irizarry of the Eastern District of New York, who also ordered Ahmed to pay $7,266,008.95 in restitution, to forfeit $7,266,008.95, and to pay a $20,000 fine. Ahmed was convicted in July 2016 after an 11-day trial of one count of health care fraud, three counts of making false statements related to health care matters and two counts of money laundering.
“Medicare is a crucial program for many of the most vulnerable people in our society – American seniors and those with disabilities,” said Acting Assistant Attorney General Cronan. “In this case, Syed Ahmed put his own greed ahead of the trust we put in our medical professionals, draining over $7 million in precious funding from our Medicare program. His conviction and the sentence imposed in this case demonstrate the Department of Justice’s unwavering commitment to protecting public funds and the integrity of our health care system.”
“Dr. Syed Ahmed treated Medicare like a personal piggy bank, stealing over $7.2 million by making fraudulent claims for medical procedures he never performed,” stated U.S. Attorney Donoghue. “Dr. Ahmed will now pay the price for violating the trust that Medicare places in doctors. His 13-year prison sentence and the heavy payments imposed should send a powerful message of deterrence to other medical professionals who would seek to defraud vital taxpayer-funded programs like Medicare for personal enrichment. This Office, together with our law enforcement partners, will remain vigilant in rooting out health care fraud.”
“Health care fraud is often billed as a victimless crime, but that couldn’t be further from the truth,” said Assistant Director in Charge Sweeney. “Someone is always left to foot the bill. Insurers, the insured, and others are the ones who pay the price. Those who employ these schemes will most certainly be brought to justice, as we’ve proven here today.”
“The fraud scheme that Dr. Ahmed engaged in was motivated by pure greed,” said Special Agent in Charge Lampert. “HHS OIG and our law enforcement partners will continue to aggressively pursue all those who seek to unlawfully enrich themselves by victimizing participants of the Medicare program.”
According to evidence presented at trial, Ahmed, a surgeon who practiced at Kingsbrook Jewish Medical Center and Wyckoff Heights Medical Center in Brooklyn, Franklin Hospital in Valley Stream, and Mercy Medical Center in Rockville Centre, New York, billed the Medicare program for incision-and-drainage and wound debridement procedures that he did not perform. Ahmed wrote out lists of phony surgeries and sent the lists to his billing company in Michigan with instructions that they be billed to Medicare. Ahmed also directed that the surgeries be billed as though they had taken place in an operating room so as to increase the payout for the fraudulent scheme, the evidence showed.
The evidence introduced at trial showed that Medicare paid over $7 million to Ahmed for fraudulent claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorney Debra Jaroslawicz of the Fraud Section, Assistant U.S. Attorney F. Turner Buford, formerly a Fraud Section trial attorney, and Senior Litigation Counsel Patricia Notopoulos of the Eastern District of New York are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
New Orleans Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that GABRIEL CARRETO-SANCHEZ, age 41, of New Orleans, has pleaded guilty to one count of Conspiracy to Distribute One Kilogram or more of Cocaine, and one count of Possession with the Intent to Distribute One Kilogram or more of Cocaine. The defendant faces a sentence of between five and forty years imprisonment.
CARRETO-SANCHEZ admitted that in April 2017, he traveled from New Orleans to Houston, Texas to receive approximately one kilogram of cocaine hydrochloride from a supplier. Subsequently, as he was returning to New Orleans, members of the Federal Bureau of Investigation (“FBI”) conducted a stop of his vehicle and seized the kilogram of cocaine hidden inside the vehicle.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, in investigating this matter. The prosecution of this case was handled by Assistant U.S. Attorney Jonathan L. Shih.
Navajo Man from Red Mesa, Utah, Sentenced to Prison for Federal Involuntary Manslaughter Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Lelander Mays, 32, an enrolled member of the Navajo Nation who resides in Red Mesa, Utah, was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 37 months in prison followed by three years of supervised release for his conviction on an involuntary manslaughter charge.
Mays was arrested in Dec. 2016, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Mays killed a man when Mays crashed his vehicle on Dec. 6, 2016, on the Navajo Indian Reservation in San Juan County, N.M. At the time of the crash, Mays was driving under the influence of alcohol and the victim, who was a passenger in Mays’ vehicle, was thrown from the vehicle.
Mays was subsequently indicted on Dec. 20, 2016, and charged with involuntary manslaughter. On June 7, 2017, Mays pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Farmington office of the FBI, the Navajo Nation Division of Public Safety and the New Mexico State Police. Assistant U.S. Attorney Nicholas J. Marshall prosecuted the case.
Missoula Man Found Guilty of Sex Trafficking and Attempting to Coerce Minors into ProstitutionRead the Press Release
BILLINGS - A jury handed down guilty verdicts today in the sex-trafficking trial of Terrance Tyrell Edwards and Francine Joann Granados. The verdicts against Edwards were guilty on all charges, including three counts of Sex Trafficking by Force, Fraud, or Coercion; three counts of Transportation of a Minor with Intent to Engage in Prostitution; one count of Obstruction of a Sex Trafficking Investigation; one count of Transportation of a Person with Intent to Engage in
Criminal Sexual Activity; one count of Distribution of Marijuana to Person under 21 Years of
Age; and one count of Tampering with a Witness, Victim, or Informant. The jury found defendant Granados guilty of Tampering with a Witness, Victim, or Informant.
Beginning in March of 2016, shortly after he was released from prison on prostitution charges, Edwards began forcing his first female victim in this case to engage in commercial sex in Missoula, Montana. Edwards physically and emotionally abused her, and threatened her life and the lives of her family members. Edwards took all of the money from the commercial sex encounters. As time progressed, Edwards added other women, as many as five. He followed the same pattern of grooming and abuse each time. Some of the abuse was well-documented, such as when Edwards struck one victim in his car with such force that her blood splattered on the seat belt, which was later identified as the victim’s blood.
Edwards advertised his victims on Backpage.com. They traveled from place to place in Montana and Utah, conducting commercial sex transactions where Edwards received the lion’s share of the money.
In September of 2016, Edwards convinced three minor females from Fargo, North Dakota, ages 15, 16, and 17, to join his group. Edwards drove them to Billings, and on the way, he supplied the underage girls with marijuana. Edwards was arrested in Billings shortly after arriving with the minor girls from North Dakota.
After Edwards was arrested, he and Granados began trying to influence the testimony of the various victims. In recorded jail calls played for the jury, Edwards and Granados discussed how Granados would reach out to the victims in an effort to influence their testimony. Despite warnings from the FBI to have no contact with the victims, Granados persisted. In other recorded jail calls, Edwards reached out to victims himself to influence their testimony.
In response to the verdicts, U.S. Attorney Kurt Alme noted that today’s verdicts serve to emphasize comments from the Department of Justice last week, when the Attorney General stated:
“Bringing traffickers like this one to justice is one of the top priorities of the U.S. Department of Justice. We are using every tool at our disposal to eradicate human trafficking. We vigorously investigate and prosecute offenders. We fund training for local law enforcement officers in how to identify trafficking victims. We provide millions of dollars in grants to organizations that assist trafficking victims. And we take every opportunity to raise public awareness of the problem.”
Mr. Alme stated, “We are committed to bringing human traffickers like Edwards to justice I want to thank prosecutors Cyndee Peterson and Zeno Baucus, the FBI agents, and the victim/witness specialists and the staff of the FBI and our office for their good work in pushing this case through to a verdict. We will continue to do whatever we can to protect the vulnerable victims of these crimes, who in this case included three minor girls from North Dakota. I ask people from across Montana to help us spot these human trafficking crimes and report them to law enforcement.”
Mission Woman Sentenced for Misprision of a FelonyRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Misprision of a Felony was sentenced on February 5, 2018, by U.S. District Judge Roberto A. Lange.
Wastewin Jonnie Waukechon, age 39, was sentenced to 9 months in custody, 1 year of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Waukechon was indicted by a federal grand jury on March 15, 2017, for Conspiracy to Distribute a Controlled Substance, Distribution of a Controlled Substance, and Possession with Intent to Distribute a Controlled Substance. Waukechon pled guilty to Misprision of a Felony on November 13, 2017.
On February 8, 2017, Waukechon accompanied Richard Neiss from Rapid City to Eagle Butte, South Dakota, where Neiss intended to distribute methamphetamine. Waukechon was present and watched while Neiss sold 11.1 grams of methamphetamine to another individual in Eagle Butte. Waukechon, having knowledge of the methamphetamine distribution transaction, concealed that fact from federal law enforcement and did not otherwise report the incident to a judge or other person in civil authority.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Waukechon was immediately turned over to the custody of the U.S. Marshals Service.
Minneapolis Woman Charged with Terrorism Offenses, Arson, and Making False StatementsRead the Press Release
United States Attorney Gregory G. Brooker today announced a three-count indictment charging TNUZA JAMAL HASSAN, 19, with attempting to provide material support to a designated foreign terrorist organization, arson, and making a false statement. HASSAN will make her initial appearance before a United States Magistrate Judge at a later date.
According to the indictment, on September 19, 2017, HASSAN, a former student at St. Catherine University (SCU) in St. Paul, Minnesota, attempted to provide material support to a designated foreign terrorist organization, namely, al-Qa’ida. On September 22, 2017, in an interview with FBI Agents, HASSAN was asked whether she authored and delivered a letter to two fellow students at SCU in March 2017. The letter sought to encourage fellow students to “join the jihad in fighting” and to “[j]oin Al Qaeda, Taliban, or Al Shabaab.” HASSAN knowingly made a false statement to FBI Agents when she stated (1) she did not write the letter, (2) she did not know who wrote the letter, and (3) did not know how the letter came to be delivered to her fellow students.
According to the indictment, on January 17, 2018, HASSAN started several fires on the campus of SCU, including in St. Mary Hall, which she maliciously damaged. The fires set by HASSAN caused the St. Paul Fire Department to respond to SCU.
HASSAN was charged in Ramsey County District Court with one count of first-degree arson and is currently in custody at the Ramsey County Jail.
Assistant U.S. Attorney Andrew R. Winter is prosecuting the case.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force, St. Paul Police Department, and arson investigators from the St. Paul Fire Department.
Defendant Information:
TNUZA JAMAL HASSAN, 19
Minneapolis, Minn.
Charges:
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization (al-Qa’ida), 1 count
- False Statement, 1 count
- Arson, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Minkler announces federal immigration charges against illegal alien involved in I-70 motor vehicle accidentRead the Press Release
PRESS RELEASE
Indianapolis United States Attorney Josh Minkler today announced federal charges against an illegal alien from Guatemala. Manuel Orrego-Zavala 37, was charged by a criminal complaint with illegal re-entry of a previously deported alien.
“The defendant in this case allegedly re-entered the country illegally for the second time before he put the public safety of Indianapolis at risk and took the lives of two innocent men early Sunday morning,” said Minkler. “In April, Attorney General Sessions directed all federal prosecutors to prioritize charging aliens that illegally re-enter the country, especially if they are a risk to public safety or there is a criminal history present. Following the rule of law is the foundation of our American democracy, and my office is committed to fulfilling the Attorney General’s directive.”
According to the criminal complaint, Orrego-Zavala was encountered by law enforcement in Indianapolis, Indiana, on February 4, 2018, when he was arrested after being involved in a fatal motor vehicle accident on Interstate 70. At the time of his arrest, Orrego-Zavala provided law enforcement authorities with the alias, “Alex G. Cabrera,” but Homeland Security agents soon learned—through cooperation and information sharing with the Indianapolis Metro Police Department—his true identity was Manuel Orrego-Zavala, a citizen of Guatemala.
The complaint further states Orrego-Zavala was arrested by Immigration and Customs Enforcement and Removal Operations (ICE ERO) in October 2006, and removed from the United States to Guatemala in January 2007. At that time, Orrego-Zavala was prohibited from returning to the United States for 10 years. In March 2009, he was arrested by ICE ERO and in May 2009, removed to Guatemala and prohibited from returning for 20 years.
Orrego-Zavala will remain in custody while the case is investigated by the Indiana State Police and the Marion County Prosecutor’s Office. The immigration charges will remain pending until the conclusion of all state matters.
A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
According to Assistant United States Attorney William McCoskey who is prosecuting this case for the government, Orrego-Zavala faces up to 10 years of imprisonment if convicted.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute illegal immigration cases. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 1.8
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Michigan Men Sentenced for Conspiracy to Distribute Oxycodone and a Firearm OffenseRead the Press Release
LEXINGTON, Ky., - Two Detroit men have been sentenced to federal prison for drug and firearm offenses. U.S. District Judge Danny C. Reeves formally sentenced each, on Friday, February 2, 2018.
Marcella Lorenzo Dunbar, 37, was sentenced to 105 months in prison for conspiracy to distribute oxycodone and being a felon in possession of a firearm.
Gerald Jones, 31, was sentenced to 51 months in prison for conspiracy to distribute oxycodone.
Dunbar and Jones previously admitted that they had traveled from Detroit to Winchester in late 2016, and began selling oxycodone to local users. Dunbar also admitted renting a house in Winchester so that he and Jones could sell oxycodone. When arrested, Dunbar and Gerald Jones were found in possession of 1,550 oxycodone pills for sale, a firearm, and $4,750 in drug proceeds. Dunbar also admitted that he had previously been convicted of a felony and was prohibited from possessing a firearm. Dunbar and Jones pleaded guilty to the charges in October 2017.
Under federal law, Dunbar and Jones must serve 85 percent of their prison sentences; and, upon release, they will be under the supervision of the United States Probation Office for 5 years and 3 years, respectfully.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Michael Klinger, Field Office Director, Department of Homeland Security, Detroit; Richard Sanders, Commissioner of the Kentucky State Police; and Clark County Sheriff Berl Perdue, Jr., jointly announced the sentences.
These cases were prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The Department of Homeland Security, Kentucky State Police, and the Clark County Sheriff’s Office conducted the investigation. Assistant United States Attorney Roger W. West represented the United States.
Mexican Meth Smuggler Ordered to Federal PrisonRead the Press Release
LAREDO, Texas – A 41-year old resident of Apodaca, Nuevo Leon, Mexico, has been ordered to prison for a conspiracy to import more than 10 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Sergio Aguilar-Hernandez pleaded guilty Aug. 31, 2017.
Today, visiting U.S. District Judge Hilda G. Tagle ordered him to prison for 90 months. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
On June 15, 2017, Aguilar-Hernandez arrived at the Columbia bridge driving a tractor trailer. Inside the vehicle was a box of aloe vera drinks that were found to contain approximately 10.26 kilograms of liquid methamphetamine.
Aguilar-Hernandez had entered the country two days prior with the same box of aloe vera drinks, but was unable to locate his contact in Laredo. He then continued to Stafford to deliver a legitimate load, picked up a new one in Victoria and returned to Mexico.
Aguilar-Hernandez entered again on June 15 in a second attempt to meet his contact, but was apprehended at the bridge prior to delivering the methamphetamine.
Aguilar-Hernandez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Jose Angel Moreno prosecuted the case.
Man Indicted for Falsely Pretending to be a General Officer in the U.S. ArmyRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging CHRISTIAN GERALD DESGROUX, age 57, of Raleigh, with pretending to be a United States Army Lieutenant General engaged in transporting a person for a classified briefing and under such guise having asserted authority to land a helicopter at Statistical Analysis Systems (SAS) headquarters, located in Cary, North Carolina – all in violation of Title 18, United States Code, Section 912.
If convicted of this charge DESGROUX would face maximum penalties of 3 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the Department of Homeland Security and the Defense Criminal Investigative Service. Assistant United States Attorneys Jason Kellhofer and Eleanor Morales are prosecuting the case for the government.
Livingston Man Sentenced to Federal Prison for Methamphetamine OffensesRead the Press Release
BILLINGS – Rian Lee Kvernes, a 28-year-old resident of Livingston, was sentenced today to 78 months in prison followed by 4 years supervised release after pleading guilty to conspiracy to possess with intent to distribute methamphetamine in October. U.S. District Judge Susan Watters handed down the sentence.
Kvernes and his associates possessed and sold methamphetamine in early 2016. They also traded stolen firearms for methamphetamine. Specifically, he and an associate traded 10 to 15 stolen long guns for an ounce of methamphetamine in Butte. During the investigation, law enforcement executed a search warrant at his residence and found 12 additional stolen firearms. They also found methamphetamine, drug distribution supplies, and a short-barreled shotgun behind his bedroom door.
The case was prosecuted by Assistant U.S. Attorneys Thomas Godfrey and Paulette Stewart and investigated by the Missouri River Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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.
Latvian National Pleads Guilty to “Scareware” Hacking Scheme That Targeted Minneapolis Star Tribune WebsiteRead the Press Release
A Latvian man pleaded guilty yesterday for participating in a lucrative “scareware” hacking scheme that targeted visitors to the Minneapolis Star Tribune’s website. Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division; United States Attorney Gregory G. Brooker of the District of Minnesota; and Special Agent in Charge Richard T. Thornton of the Federal Bureau of Investigation-Minneapolis Field Office made the announcement.
“With this guilty plea, Mr. Sahurovs has taken responsibility for perpetrating a malicious cyber-fraud scheme on visitors of the Minneapolis Star Tribune website,” said U.S. Attorney Greg Brooker. “This Office along with our partners at the FBI are committed to pursuing and prosecuting cyber criminals who use sophisticated schemes such as this to victimize internet users.”
Richard Thornton, Special Agent in Charge at the FBI's Minneapolis Division, added that, “this particular scheme was dangerous on several levels, especially the use of a website belonging to a media institution. In this case, there were thousands of victims who lost millions of dollars, but the use of the media internet site is concerning because it has the potential to undermine the public's access to information, a pillar of American democracy. The FBI is committed to identifying these and other cyber criminals, and, with the help of our domestic and foreign partners, will work tirelessly to catch them no matter where they hide.”
PETERIS SAHUROVS aka “Piotrek” aka “Sagade,” pleaded guilty to one count of conspiracy to commit wire fraud before District Judge Ann D. Montgomery of the District of Minnesota. SAHUROVS was arrested on a District of Minnesota indictment in Latvia in June of 2011, but was released by a Latvian court and later fled. In November of 2016, SAHUROVS was located in Poland and apprehended by Polish law enforcement and extradited to the United States in June of 2017. SAHUROVS was at one time the FBI’s fifth most wanted cybercriminal and a reward of up to $50,000 had been offered for information leading to his arrest and conviction. He will be sentenced on June 6.
According to admissions made in connection with his plea, from at least May 2009 to June 2011, SAHUROVS operated a “bullet-proof” web hosting service in Latvia, through which he leased server space to customers seeking to carry out criminal schemes without being identified or taken offline. The defendant knew that his customers were using his servers to perpetrate criminal schemes, including the transmission of malware, fake anti-virus software, spam, and botnets to unwitting victims, and he received notices from internet governance entities (such as Spamhaus) that his servers were hosting malicious activity. Nonetheless, he was familiar with these criminal schemes, took steps to protect them from being discovered or disrupted, and hosted them on his servers for financial gain.
SAHUROVS admitted that from in or about February 2010 to in or about September 2010, he registered domain names, provided bullet-proof hosting services, and gave technical support to a “scareware” scheme targeting visitors to the Minneapolis Star Tribune’s website. On February 19, 2010, the Minneapolis Star Tribune began hosting an online advertisement, purporting to be for Best Western hotels, on its website, startribune.com. Two days later, however, the advertisement began causing the computers of visitors to the website to be infected with malware. This malware, also known as “scareware,” caused visitors to experience slow system performance, unwanted pop-ups and total system failure. Website visitors also received a fake “Windows Security Alert” pop-up informing them that their computer had been infected with a virus and another pop-up that falsely represented that they needed to purchase the “Antivirus Soft” computer program to fix their security issues, at a price of $49.95.
Website visitors who clicked the “Antivirus Soft” window were presented with an online order form to purchase a purported security program called “Antivirus Soft.” Users who purchased “Antivirus Soft” would receive a file download that “unfroze” their computers and stopped the pop-ups and security notifications. However, the defendant admitted, the file was not a real anti-virus product and did not perform legitimate computer security functions, and merely caused malware that members of the conspiracy had previously installed to cease operating. Meanwhile, the defendant admitted, victim users who did not choose to purchase “Antivirus Soft” became immediately inundated with so many pop-ups containing fraudulent “security alerts,” that all information, data, and files on their computers were rendered inaccessible. Members of the conspiracy defrauded victims out of substantial amounts of money as a result of the scheme. The defendant admitted that as a result of his participation, he made between 150,000 and 250,000 U.S. dollars.
This case was investigated by the FBI’s Minneapolis Field Office.
The Criminal Division’s Office of International Affairs, as well as the Polish National Police, the National Prosecutor’s Office, and the Ministry of Justice provided substantial assistance. Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Department’s Office of International Affairs also provided substantial assistance in this matter.
Defendant Information:
PETERIS SAHUROVS, 28
Rezekne, Latvia
Convicted:
- Conspiracy to commit wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Las Cruces Man Sentenced to 140 Months in Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Joshua Nestle, 26, of Las Cruces, N.M., was sentenced yesterday in federal court to 140 months in prison for his conviction on methamphetamine trafficking charges. Nestle will be on supervised release for four years after completing his prison sentence.
Nestle and co-defendant Joclyn Telles, 35, also of Las Cruces, were arrested in Feb. 2017, and were charged by criminal complaint with conspiracy and possession of a controlled substance with intent to distribute. The complaint also charged Nestle with being a felon in possession of a firearm and with using and carrying a firearm in relation to a drug trafficking crime. According to the criminal complaint, the defendants committed the crimes on June 29, 2016, in Dona Ana County, N.M. Law enforcement officers arrested Nestle and Telles on outstanding arrest warrants following a traffic stop, and during a search incident to the arrests, found approximately 2.6 ounces of methamphetamine and a firearm in the vehicle.
On June 7, 2017, Nestle pled guilty to a felony information charging him with conspiracy and possession of methamphetamine with intent to distribute. In entering the guilty plea, Nestle admitted that on June 29, 2016, he conspired with others to violate the federal drug trafficking laws. He also admitted possessing the 2.6 ounces of methamphetamine found in his vehicle and acknowledged that he intended to distribute the drugs to others. Nestle further admitted that on March 9, 2017, he possessed a controlled substance while he was incarcerated at the Dona Ana County Detention Center.
Telles was indicted on June 21, 2017, and charged with conspiracy and possession of methamphetamine with intent to distribute. She entered a guilty plea to the indictment on July 18, 2017, without the benefit of a plea agreement. At sentencing, Telles faces a statutory minimum penalty of five years and a maximum of 40 years in federal prison. She remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Laredo Couple Sentenced for Methamphetamine ConspiracyRead the Press Release
LAREDO, Texas – A man and woman from Laredo have been ordered to prison following their convictions of conspiracy to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. Roberto Rodriguez, 30, and his girlfriend Maria Del Carmen Sarabia, 33, pleaded guilty July 6 and Sept. 7, 2017, respectively.
Today, visiting U.S. District Judge Hilda G. Tagle found Rodriguez to be a leader, organizer or supervisor and ordered him to serve 121 months in prison, while Sarabia received a 70-month-term of imprisonment. They will serve three and two years of supervised release following their sentences, respectively.
On Jan. 12, 2017, police officers conducted a traffic stop of a vehicle Rodriguez was driving. Sarabia was riding as a passenger. Inside the vehicle were methamphetamine crystals scattered on and around the driver’s seat after a failed attempt to toss the package out of the window. Rodriguez was taken into custody. Following his arrest, authorities also searched their apartment which resulted in the discovery of a bag of methamphetamine which was packaged for distribution.
Authorities later reviewed calls between Rodriguez and Sarabia which revealed discussions of distributing additional methamphetamine still hidden at their apartment. A subsequent search of the apartment resulted in the recovery of additional narcotics. Sarabia was then taken into custody and also charged in the conspiracy.
Law enforcement eventually recovered a total of 228 grams of methamphetamine between Jan. 12 and Jan. 19, 2017.
The couple have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department and the Webb County Sheriff’s Office. Assistant U.S. Attorney José Angel Moreno prosecuted the case.
Kanawha County woman pleads guilty to federal opioid crimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County woman pleaded guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Patricia Anne Carnes, 51, of Elkview, entered her guilty plea to obtaining hydrocodone and oxycodone by fraud. U.S. Attorney Stuart commended the Drug Enforcement Administration’s Tactical Diversion Squad and the Charleston Police Department for the investigation.
Carnes admitted that she fraudulently ordered prescription pads from a printing company in order to obtain counterfeit prescriptions with the name and DEA registration number of a Charleston area doctor. Between October 2016 and early April 2017, she wrote and filled approximately 11 forged prescriptions of oxycodone and hydrocodone for herself. She further admitted that she used this fraudulent scheme to obtain over 650 pain pills.
Carnes faces up to four years in federal prison when she is sentenced on May 9, 2018.
Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Jasper School District Employee Pleads Guilty to $145,000 Embezzlement SchemeRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that an employee of the Jasper R-5 School District pleaded guilty in federal court today to embezzling more than $145,000 from the district.
Karla Justice, also known as Karla Jessee, 55, of Columbus, Kan., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with one count of wire fraud and one count of credit card fraud.
Justice was employed as the head bookkeeper, payroll secretary, superintendent secretary, and board secretary for the Jasper R-5 School District from 2009 until her resignation on Sept. 22, 2016. Justice’s positions with the school district gave her unrestricted access to the account and payroll systems for the school district, as well as the district’s petty cash checkbook and signatory authority for this account. Justice essentially had unlimited access to every aspect of the account and human resources functions for the district.
By pleading guilty today, Justice admitted that she embezzled a total of $145,726 from the school district from September 2013 to September 2016.
Justice admitted that she paid herself $80,858 in additional payroll above and beyond the amount allowed under her employment contract. As a result of the fraudulently received payroll, Justice also received an additional $6,731 in employer retirement contributions and $6,530 in Social Security and Medicare contributions that she would not have received otherwise.
The investigation also discovered numerous transactions involving the petty cash account, including checks and E-checks that totaled $13,929 in transactions that were conducted by Justice to pay for personal expenses that were unrelated to the activities of the district, and were not authorized by the district.
Justice also opened and used a Home Depot credit card in the name of the district, without authority or the approval of any district official. Justice used the fraudulently opened Home Depot credit card to conduct several personal purchases between Jan. 6 and Sept. 1, 2016, totaling $2,133.
The investigation revealed numerous checks that had been written on the operating account for the district. Justice did not have authority to write checks to this account but she did have access to the signature stamps for school officials, who did have signatory authority over this account. Several district employees informed investigators that Justice repeatedly asked them to cash checks for her. School officials told investigators that each of the checks discovered during the investigation were fraudulently created and Justice’s request that other employees cash these checks and give her the money was done to bypass safety measures created to prevent employees from directly cashing checks made out to themselves.
According to today’s plea agreement, school officials began analyzing the district’s budget when the district experienced financial difficulties. During this analysis, officials noted irregularities in payroll payments, unexplained credit card payments, and missing monies from the petty cash account. When asked to reconcile the irregularities, Justice immediately wrote out a letter of resignation.
Under federal statutes, Justice is subject to a sentence of up to 35 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service and the Jasper County, Mo., Sheriff’s Department.
Hurricane felon pleads guilty to federal gun chargeRead the Press Release
CHARLESTON, W.Va. – A Hurricane man pleaded guilty today to a federal gun crime, announced United States Attorney Mike Stuart. Brandon Pistore, 34, entered his guilty plea to being a felon in possession of a firearm. U.S. Attorney Stuart commended the investigative efforts of the St. Albans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On April 19, 2017, an officer with the St. Albans Police Department stopped a vehicle Pistore was driving and discovered a gun. The officer seized the firearm, a Davis Industries, Model P380 pistol. Pistore later admitted that it was his gun. He was prohibited from possessing any firearm under federal law because of a 2006 federal drug conviction for conspiracy to manufacture methamphetamine.
“Being a felon with a gun in my district is not a good idea,” said U.S. Attorney Stuart. “If we catch you – and we will – we will prosecute you six days a week and twice on Sunday.”
Pistore faces up to 10 years in federal prison when he is sentenced on May 9, 2018.
Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. Senior United States District Judge David A. Faber presided over the plea hearing.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Freeport Man Sent to Prison for Three Child Pornography ConvictionsRead the Press Release
GALVESTON, Texas – A 22-year-old Freeport man has been ordered to federal prison following his convictions of distribution, receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Miguel Jimenez Jr. pleaded guilty Jan. 25, 2017.
Today, U.S. District Judge George Hanks handed Jimenez 240 and 120 months for the distribution and possession charges as well as 240 months for the receipt of child pornography. The sentences will run concurrently. Additional information was also presented today, including that besides the victims in the images and videos, Jimenez had contact with four minor females from whom he sought graphic nude images. In handing down the sentence, Judge Hanks noted his obligation to protect the public and the victims. Jiminez will also be on supervised release for rest of his life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender. Restitution will be determined at a later date.
Jimenez came to the attention of authorities after they believed he was uploading and storing child pornography into a virtual storage account. A search warrant was executed at his residence, at which time law enforcement located and seized various computers and cellular phones. Forensic analysis of the phones, computers and virtual storage accounts revealed 658 child pornography images and 634 child pornography videos. The images and videos included minors under the age of 12 engaging in sexual activity, toddlers, instances of sadism, masochism, bondage involving the penetration of the minor, as well as masturbation and the lewd and lascivious display of the children’s genitals.
Jimenez admitted he possessed, received and distributed numerous images of child pornography. Jimenez chatted with unidentified users who shared his sexual interest in children. Further, Jimenez used several different on-line applications to chat with underage girls all over the country. He had an online relationship with one minor female whom he had threatened by saying she had to continue the relationship or he would send naked pictures of her to her friends.
The forensic analysis results indicated that Jimenez searched the Internet using the phrase, “how much trouble can you be in for sending naked photos of ex.”
Jimenez has been detained since his arrest on May 5, 2016, at which time U.S. Magistrate John R. Froeschner found him to be a flight risk and danger to the community. Jimenez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations, Galveston Division, conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Sherri Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fort McDermitt Man Charged for Double Murder on Indian ReservationRead the Press Release
RENO, Nev. – A Fort McDermitt, Nevada, resident was charged today in federal court for allegedly murdering two individuals on the Fort McDermitt Indian Reservation, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Stoney Prior, 40, a member of the Fort McDermitt Shoshone Paiute Tribe, was charged in a criminal complaint with two-counts of first-degree murder in Indian Country. A preliminary hearing is scheduled before U.S. District Magistrate Judge William G. Cobb on February 22, 2018.
According to allegations contained in the complaint, on January 31, 2018, Prior shot and killed two individuals in a residence. The first victim was shot in the head and neck with a shotgun and the second victim was shot in the arm, body, and head. Both victims were members of the Fort McDermitt Shoshone Paiute Tribe.
If convicted, the mandatory minimum sentence is life in prison.
The case is being investigated by the FBI and the Bureau of Indian Affairs with assistance from the Humboldt County Sheriff’s Office. Assistant U.S. Attorney Shannon M. Bryant is prosecuting the case.
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Former Southwest Airlines Baggage Handler Sentenced to 21 Months in Prison for Violating Airport Security Requirements, Drug Smuggling, and Money LaunderingRead the Press Release
OAKLAND – Former Southwest Airlines baggage handler Kenneth Wayne Fleming, Jr. was sentenced today to 21 months in prison for entering an airport area in violation of security requirements, conspiring to distribute marijuana, and conspiring to launder money, announced Acting United States Attorney Alex G. Tse, Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf, and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Phyllis J. Hamilton, Chief U.S. District Judge.
Fleming, 35, of Oakland, pleaded guilty on October 25, 2017, to one count of conspiracy to distribute, and to possess with intent to distribute, marijuana; one count of entering an airport area in violation of security requirements; and one count of conspiracy to launder money. In his plea agreement, Fleming admitted that in 2013 and 2014 he was a baggage handler for Southwest Airlines at the Oakland International Airport. He acknowledged he used his access as a baggage handler to smuggle marijuana into the airport and distributed that marijuana to outbound passengers in violation of airport security requirements. Specifically, Fleming admitted that on four occasions he delivered unscreened baggage to outbound passengers who already cleared the TSA security checkpoint. The baggage contained a total of 16 kilograms of marijuana. As part of his plea agreement, Fleming further admitted he abused a position of public and private trust. Specifically, Fleming admitted he used his access to the secured areas of the airport granted to him as an employee of Southwest Airlines to commit and conceal his crimes. Fleming also admitted that he conspired with others to launder $51,400 in drug trafficking proceeds through his bank account.
On September 25, 2017, Fleming was charged in a superseding information with one count of conspiracy to distribute, and possess with intent to distribute, marijuana, in violation of 21 U.S.C. § 846; one count of entering an airport area in violation of security requirements, in violation of 49 U.S.C. §§ 46314(a) and 46314(b)(2); and one count of conspiracy to launder money, in violation of 18 U.S.C. § 1956(h). Pursuant to this plea agreement, Fleming pleaded guilty to all the charges.
In addition to the prison term, Chief Judge Hamilton sentenced the defendant to a three-year period of supervised release. During this period of supervised release, Fleming will be barred from seeking or obtaining employment with any commercial air carrier or airport. The Court also ordered Fleming to pay a forfeiture money judgment of $51,400. Fleming will begin serving the sentence on April 2, 2018.
Fleming’s sentence brings to 10 the number of defendants sentenced as part of the scheme to violate airport security and distribute marijuana. The other nine defendants sentenced include the following:
Defendant
Age, Residence
Charges
Status
Michael Herb Videau
30, of Oakland
Distribution and possession with intent to distribute, marijuana,
21 U.S.C. § 841(a)(1)
Entering an airport area in violation of security requirements,
49 U.S.C. §§ 46314(a) and 46314(b)(2)
Sentenced on
November 9, 2016, to
15 months in prison and
3 years supervised release.
Major Alexander Session III
27, of Oakland
Distribution and possession with intent to distribute, marijuana,
21 U.S.C. § 841(a)(1)
Entering an airport area in violation of security requirements,
49 U.S.C. §§ 46314(a) and 46314(b)(2)
Sentenced on
November 15, 2017, to
24 months in prison and
3 years supervised release.
Clyde Barry Jamerson
44, of Oakland
Entering an airport area in violation of security requirements,
49 U.S.C. §§ 46314(a) and 46314(b)(2)
Sentenced on
September 21, 2016, to
3 months in prison and
3 years supervised release.
Kameron Kordero Eldridge Davis
28, of Dublin, Calif.
Entering an airport area in violation of security requirements,
49 U.S.C. §§ 46314(a) and 46314(b)(2)
Sentenced on
June 29, 2016, to
6 months in prison and
3 years supervised release.
Ronnell Lamar Molton
39, of Oakland
Entering an airport area in violation of security requirements,
49 U.S.C. §§ 46314(a) and 46314(b)(2)
Sentenced on
August 10, 2016, to
3 months in prison and
3 years of supervised release.
Sophia Cherise West
46, of Castro Valley
Distribution and possession with intent to distribute, marijuana,
21 U.S.C. § 841(a)(1)
Entering an airport area in violation of security requirements,
49 U.S.C. §§ 46314(a) and 46314(b)(2)
Sentenced on
June 1, 2016, to
12 months and one day in prison and 3 years supervised release.
Donald Ray Holland II
44, of Discovery Bay
Distribution and possession with intent to distribute, marijuana,
21 U.S.C. § 841(a)(1)
Entering an airport area in violation of security requirements,
49 U.S.C. §§ 46314(a) and 46314(b)(2)
Sentenced on
November 16, 2016, to
27 months in prison and
3 years supervised release.
Brandon Jarred Davillier
29, of Slidell, Louisiana
Distribution and possession with intent to distribute, marijuana,
21 U.S.C. § 841(a)(1)
Sentenced on
August 3, 2016, to
24 months in prison and
3 years supervised release.
Travon Jahmal Franzwa Baker
25, of Oakland
Distribution and possession with intent to distribute, marijuana,
21 U.S.C. §§ 841(a)(1) and (b)(1)(D)
Sentenced on
May 4, 2016, to
10 months in prison and
3 years supervised release.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by the FBI, the IRS-CI, and the Alameda County Sheriff’s Office. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Former Pharmaceutical Employee Sentenced to 15 Months in Prison for Role in Scheme to Obtain Medically Unnecessary Prescription Compounded MedicationRead the Press Release
NEWARK, N.J. – A former pharmaceutical employee was sentenced today to 15 months in prison for accepting thousands of dollars in exchange for filling medically unnecessary prescriptions for compounded medications for herself and her husband, causing losses of $956,885, U.S. Attorney Craig Carpenito announced.
Julie Andresen, 40, of Haddonfield, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with conspiracy to commit health care fraud. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Andresen, a former employee of a New Jersey pharmaceutical company, admitted that from September 2014 through September 2015, she would receive payments from a marketing business identified in the information as “Company A” in return for filling and obtaining medically unnecessary prescription compounded medications for herself and her husband through the New Jersey pharmaceutical company’s prescription drug benefit plan.
Andresen approached a physician identified in the information as “Physician-1,” who was Andresen’s close friend, at social gatherings. Andresen would provide Physician-1 with preprinted prescription forms listing various compounded medications. Andresen requested that Physician-1 authorize certain compounded medications for her and her husband, such as scar creams and metabolic supplements. Physician-1 did authorize the prescriptions and multiple refills.
Andresen faxed prescriptions for the compounded scar creams and metabolic supplements authorized by Physician-1 to various compounding pharmacies designated by Company A that were located outside of New Jersey. The compounding pharmacies would fill and bill Andresen’s prescription drug benefit plan for the compounded prescriptions. The New Jersey pharmaceutical company’s prescription drug benefit plan reimbursed the compounding pharmacies anywhere between $13,572 and $43,689 for each compounded medication Andresen and her husband received.
The compounding pharmacies would then pay Company A an agreed upon percentage of the reimbursement amount. Company A would pay Andresen an agreed upon percentage of the amount Company A received from the compounding pharmacies. Andresen also requested multiple refills of her and her husband’s prescriptions, and received monetary payment for the refills as well. Altogether, Andresen received $161,378 from Company A for her role in the conspiracy. The New Jersey pharmaceutical company lost $956,885 from this scheme.
In addition to the prison term, Judge Vazquez sentenced Andresen to three years of supervised release, ordered her to pay restitution of $956,885 and to forfeit $161,378.
On June 29, 2016, Stephanie Naar, 28, of St. Louis, Missouri, who had been an employee of the same New Jersey pharmaceutical company as Andresen, pleaded guilty before Judge Vazquez and admitted to accepting thousands of dollars in exchange for obtaining and filling her own medically unnecessary prescriptions for compounded medications.
On July 19, 2016, Peter Pappas, 45, of Drexel Hill, Pennsylvania, another former employee of the same New Jersey pharmaceutical company as Andresen, also pleaded guilty before Judge Vazquez and admitted to accepting thousands of dollars in exchange for obtaining and filling his own medically unnecessary prescriptions for compounded medications. Pappas also admitted to recruiting others into this scheme to defraud.
Naar and Pappas are awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the ongoing investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Erica Liu of the United States Attorney’s Office, Health Care and Government Fraud Unit in Newark.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.38 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Former Geneseo Bank Executive Pleads Guilty to EmbezzlementRead the Press Release
ROCK ISLAND, Ill. – This morning, Paul Lindsey, 70, former vice president and trust officer at Farmers National Bank in Geneseo, Ill., admitted to embezzling nearly $500,000 from the bank. Appearing before U.S. District Judge Sara L. Darrow, Lindsey, of the 1000 block of Cherry Drive, Geneseo, waived indictment and entered a plea of guilty to an information that charged him with one count of bank embezzlement.
During his court appearance, and according to court documents, Lindsey admitted that from about September 2008 to July 2016, he embezzled at least $491,700.87 for his own personal use. Lindsey acknowledged that as the head of the bank’s trust department, he was able to transfer funds from customers’ accounts to his own self-directed IRA. Lindsey also conceded that at least one of the customers he targeted qualified as a “vulnerable victim,” as that term is used in the United States Sentencing Guidelines.
The investigation was conducted by agents of the Federal Bureau of Investigation, with the full cooperation of Farmers National Bank. The case is being prosecuted by Assistant U.S. Attorney Kevin C. Knight.
Lindsey is currently on bond awaiting sentencing, which is scheduled for June 7, 2018, before Judge Darrow.
At sentencing, Lindsey faces a maximum possible penalty of up to 30 years in prison, a fine of up to $1,000,000, and a term of supervised release of up to five years. The defendant may also be ordered to make full restitution to the bank.
Former Bemidji Assistant Principal Sentenced to 300 Months in Federal Prison for Sexually Exploiting Dozens of ChildrenRead the Press Release
United States Attorney Gregory G. Brooker announced the sentencing of BRANDON MARK BJERKNES, 35, to 300 months in prison for sexually exploiting dozens of children. BJERKNES, who pleaded guilty on September 28, 2017, to one count of coercion and enticement of a minor and one count of production of child pornography, was sentenced on February 6, 2018, before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn.
“During his tenure as Assistant Principal of Bemidji Middle School, Brandon Bjerknes repeatedly victimized at least 55 vulnerable young girls and boys over the course of almost three years,” said Assistant U.S. Attorney Angela Munoz-Kaphing. “Today’s sentence ensures that this defendant is held accountable for his reprehensible crimes and our community, including the brave victims who shared their stories, will be safe from his predatory actions.”
“Preying on children is detestable. It is especially egregious when the predator is someone in a position of authority and trust,” said BCA Superintendent Drew Evans. “Partnering with our law enforcement partners and prosecutors, we will find these people and bring them to justice.”
The Beltrami County Sheriff’s Office is extremely satisfied to see this case against Brandon Bjerknes concluded in the federal courts,” said Sheriff Phil Hodapp. “Mr. Bjerknes violated his high position of trust and authority over the children in our schools and our community, so it was exceptionally important for us to see this case brought to justice.”
According to the defendant’s guilty plea and documents filed in court, since 2006, BJERKNES was employed by the Bemidji Area Schools and, beginning in 2014, served as the Assistant Principal of Bemidji Middle School until his resignation in April 2017. While holding the position of Assistant Principal, BJERKNES posed as a 13-15-year-old male named “Brett Larson,” and used various social media profiles on Facebook and Snapchat with “decoy photographs” to contact minor females and males in middle and high school. Using the alias profiles, BJERKNES directed the minor victims to send him sexually explicit photographs. BJERKNES also used the alias profiles to engage in sexually explicit conversations with the minor victims. Some of the minor victims BJERKNES contacted on social media were students at Bemidji Middle School.
According to the defendant’s guilty plea and documents filed in court, on March 20, 2017, law enforcement executed a search warrant at BJERKNES’ Bemidji residence. Officers seized a number of electronic devices including BJERKNES’ personal iPhone and work iPhone, multiple iPads, computers and external hard drives. The social media accounts and the electronic devices contained multiple sexually explicit photos and videos of multiple known minor victims. Law enforcement identified evidence that BJERKNES used the alias social media accounts to contact more than 50 minor victims.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension and the Beltrami County Sheriff's Office.
Assistant United States Attorney Angela Munoz-Kaphing prosecuted the case.
Defendant Information:
BRANDON MARK BJERKNES, 35
Bemidji, Minn.
Convicted:
- Coercion and enticement of a minor, 1 count
- Production of child pornography, 1 count
Sentenced:
- 300 months in prison
- Lifetime of supervised release
- $8,789.93 in restitution thus far
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Five Members of Robeson County Drug Trafficking Organization SentencedRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever III sentenced five members of a Drug Trafficking Organization (DTO) operating in Robson County, responsible for shipping and distributing large quantities of cocaine and marijuana within the Eastern District of North Carolina. The following sentences were handed down on today’s date:
MITCHELL RAY LOCKLEAR, 55, of Maxton, North Carolina was sentenced to 180 months imprisonment, followed by 5 years of supervised release.
TIMMY LLOYD HUNT, 43, of Maxton, North Carolina was sentenced to 120 months imprisonment, followed by 3 years of supervised release.
BRANDON DARRIS LOCKLEAR, 36, of Maxton, North Carolina was sentenced to 60 months imprisonment, followed by 3 years of supervised release.
ARCHIE LYNN STRICKLAND, 41, of Fairmont, North Carolina was sentenced to 60 months imprisonment, followed by 3 years of supervised release.
TORREY LOCKLEAR, 38, of Maxton, North Carolina was sentenced to 18 months imprisonment, followed by 3 years of supervised release.
The defendants were named in an Indictment filed on April 11, 2017 charging them with conspiracy to distribute and possess with the intent to distribute marijuana, cocaine, and cocaine base (crack). Four additional defendants are pending sentencing in this case.
The case is being investigated by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Internal Revenue Service - Criminal Investigation (IRS-CI), and Immigration and Custom Enforcement’s Homeland Security Investigations (HSI). Additional assistance was provided by the Robeson County Sheriff’s Office, the North Carolina State Highway Patrol, the North Carolina State Bureau of Investigation, the North Carolina National Guard, and the United States Department of Agriculture. Assistant United States Attorney Lawrence J. Cameron is prosecuting the case for the government.
Federal Jury Finds Two Men Guilty of Armed Robberies and CarjackingsRead the Press Release
United States Attorney Gregory J. Haanstad has announced that yesterday, a federal jury found Otis Hunter (age 24) and Deshawn Evans (age 21) guilty of all charged counts. Otis Hunter was found guilty of conspiracy, three business robberies, two carjackings, and five counts of brandishing a firearm during a crime of violence. Deshawn Evans was found guilty of conspiracy, a business robbery, a carjacking, and two counts of brandishing a firearm during a crime of violence.
The evidence presented at trial showed that between November 17, 2016, and December 4, 2016, the defendants were part of a robbery crew that committed five business robberies and two carjackings, all at gunpoint. Most of the crimes occurred on the southside of Milwaukee. The evidence established that the defendants brandished handguns, robbed employees and customers, and, on two occasions, pistol-whipped their victims.
Sentencing for both defendants has been scheduled for April 27, 2018, before United States District Judge J.P. Stadtmueller. At sentencing, Mr. Hunter faces a mandatory minimum sentence of 107 years in prison and Mr. Evans faces a mandatory minimum sentence of 32 years in prison for their convictions on the counts of brandishing a firearm during a crime of violence.
Mr. Hunter’s and Evans’ co-defendants, Kelly Scott, Anthony Lindsey, and Dominique Rollins, have pled guilty to their involvement in some of the robberies and are awaiting sentencing.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorneys Margaret B. Honrath and Rebecca L. Taibleson.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Federal Jury Finds Bay Area Methamphetamine Traffickers GuiltyRead the Press Release
SACRAMENTO, Calif. — A federal jury found Donnie Phillips, 64, of Concord, and Gordon Miller, 60, of Clayton, guilty today of multiple methamphetamine-trafficking counts, U.S. Attorney McGregor W. Scott announced.
After a five-day trial, Phillips and Miller were found guilty of conspiracy to distribute methamphetamine. Phillips was also found guilty of eight counts of distribution and two counts of possession with intent to distribute methamphetamine. Miller was found guilty of two counts of distribution and two counts of possession with intent to distribute methamphetamine.
According to trial evidence, between June 2014 and February 2015, Phillips and Miller supplied methamphetamine to co-defendant Phyliss Mosher, 51, of Vallejo, who supplied it to an undercover agent. The drug deals took place in the counties of Solano, Contra Costa, Yolo, Shasta, and San Joaquin. On January 25, 2018, Mosher was sentenced to 15 years in prison after pleading guilty to the methamphetamine conspiracy on May 9, 2017.
This case is the product of an investigation by the Drug Enforcement Administration, El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, the California Highway Patrol, the Vallejo Police Department, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Jason Hitt and Jill Thomas are prosecuting the case.
Phillips and Miller are scheduled to be sentenced on May 15, 2018, by U.S. District Judge John A. Mendez. Each defendant faces a mandatory minimum of 20 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Federal Jury Convicts Wilson Man of Felon in Possession ChargeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, MAURICE MONTRAE PARKS, a Wilson, NC resident, was convicted in a three-day jury trial before Senior United States District Judge W. Earl Britt. The jury found PARKS guilty of Possession of a Firearm by a Convicted Felon.
The evidence at trial showed that shortly after midnight on September 5 2015, Parks was seen banging on the door of a residence in Wilson, NC while holding a firearm. After a neighbor called 911, Officers of Wilson PD arrived, and Parks fled the scene in his car. During the brief chase, Parks took several turns along residential streets and cut through the lawn of a vacant home that sat at the corner of an intersection. A pursuing officer observed Parks’ vehicle stop briefly beside that vacant home. Parks drove back to the street where he had been seen with the gun and jumped and ran from his car. Police apprehended Parks on the driveway of the house whose resident had placed the 911 call. Officers returned to the vacant home that Parks had driven around and found a Ruger Mini 14 rifle lying in the grass. The firearm was near fresh tire marks in the yard and in the area where Parks had momentarily stopped his car.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The investigation of this case was conducted by the Wilson Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorneys Jake D. Pugh and John Stuart Bruce represented the government in this case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney R. Trent Shores announced today the results of the February 2018 Federal Grand Jury.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Jeremy Batey. Attempted Enticement of a Minor. Batey, 43, of Tahlequah, is charged with using a cell phone to attempt to persuade a minor to engage in sexual activity. If convicted, he faces the maximum penalty of ten years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Tulsa Police Department are the investigating agencies.
Donald Loyd Birdsong. Sexual Exploitation of a Child and Possession of Child Pornography. Birdsong, 39, of Eucha, is charged with enticing and coercing a minor to engage in sexually explicit conduct, and possessing graphic image files and video files of minors engaging in sexually explicit conduct. If convicted, he faces a statutory mandatory minimum of 15 years in prison or the maximum penalty of 30 years in prison and a $250,000 fine for the sexual exploitation of a child charge, and a maximum penalty of ten years in prison and a $250,000 fine for the possession of child pornography charge. The Bureau of Indian Affairs, the Department of Homeland Security Investigations, the Tulsa Police Department, and the Delaware County Sheriff’s Office are the investigating agencies.
Jackey Blevins. Embezzlement and Concealment of Government Property. Blevins, 54, of Broken Arrow, is charged with intentionally embezzling over $40,000 in Social Security income. If convicted, he faces a maximum penalty of ten years in prison and a $250,000 fine. In addition, he would forfeit any property derived from proceeds traceable to the offense. The Social Security Administration is the investigating agency.
Rolonda Gail Blevins. Embezzlement and Concealment of Government Property. Blevins, 49, of Broken Arrow, is charged with intentionally embezzling over $17,000 in Social Security income. If convicted, she faces a maximum penalty of ten years in prison and a $250,000 fine. In addition, she would forfeit any property derived from proceeds traceable to the offense. The Social Security Administration is the investigating agency.
Lonnell Deon Fortenberry. Felon in Possession of Firearm and Ammunition. Fortenberry, 53, of Broken Arrow, is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, he faces the statutory mandatory minimum penalty of 15 years in prison or a maximum penalty of life in prison and a $250,000 fine. In addition, he would forfeit any firearms and ammunition involved in the offense. The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa Police Department, and the Broken Arrow Police Department are the investigating agencies.
Trevor Daniel Larochelle. Felon in Possession of Firearms and Ammunition. Larochelle, 31, of Bella Vista, Arkansas, is charged with possessing firearms and ammunition after prior felony convictions. If convicted, he faces a maximum penalty of ten years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mayes County Sheriff’s Office, and the Choteau Police Department are the investigating agencies.
Lucas Monroe Lawson. Felon in Possession of Firearm. Lawson, 37, of Tulsa, is charged with possessing a firearm after prior felony convictions. If convicted, he faces a maximum penalty of ten years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Highway Patrol, and the Oklahoma Department of Wildlife are the investigating agencies.
Kevin Dewayne Leffler. Felon in Possession of Firearm; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession With Intent to Distribute Methamphetamine; Possession of a Firearm With an Obliterated Serial Number; Possession of a Stolen Firearm; and Felon in Possession of an Unregistered Firearm. Leffler, 38, of Tulsa, is charged with possessing an unregistered stolen firearm with an altered and obliterated serial number after prior felony convictions, while possessing and intending to distribute methamphetamine. If convicted, he faces the statutory mandatory minimum penalty of 15 years in prison or a maximum penalty of life in prison and a $250,000 fine for the felon in possession of firearm charge; a statutory mandatory minimum penalty of ten years in prison or a maximum penalty of life in prison and a $250,000 fine for the possession of a firearm in furtherance of a drug trafficking crime charge; a maximum penalty of 20 years in prison and a $1,000,000 fine for the possession with intent to distribute methamphetamine charge; a maximum penalty of five years in prison and a $250,000 fine for the possession of a firearm with an obliterated serial number charge; a maximum penalty of ten years in prison and a $250,000 fine for the possession of a stolen firearm and felon in possession of an unregistered firearm charges. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigating agencies.
Anthony Steven Price. Felon in Possession of Firearm and Ammunition. Price, 24, of Tulsa, is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, he faces a maximum penalty of ten years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bartlesville Police Department are the investigating agencies.
Gabriel Ascencion Ramos-Venegas. Reentry of Removed Alien. Ramos-Venegas, 28, of Glenpool, is charged with having returned to the United States unlawfully after being deported in December 2013 from San Ysidro, California. If convicted, he faces the maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement is the investigating agency.
Billy Vance Reed. Possession of Methamphetamine With Intent to Distribute. Reed, 47, of Dewey, is charged with knowingly and intentionally possessing methamphetamine with the intent to distribute. If convicted, he faces a maximum penalty of 20 years in prison and a $1,000,000 fine. The Bartlesville Police Department and the Oklahoma State Bureau of Investigation are the investigating agencies.
Elias Rodriguez-Cabrera. Reentry of Removed Alien. Rodriguez-Cabrera, 39, of Tulsa, is charged with having returned to the United States unlawfully after being deported in July 2003 from Otay Mesa, California. If convicted, he faces the maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement is the investigating agency.
Erik Sanchez-Olguin. Reentry of Removed Alien. Sanchez-Olguin, 31, of Tulsa, is charged with having returned to the United States unlawfully after being deported in May 2011 from Del Rio, Texas. If convicted, he faces the maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa Police Department are the investigating agencies.
Byron Thomas Tinsley. Embezzlement and Concealment of Government Property. Tinsley, 56, of Barnsdall, is charged with intentionally embezzling over $19,000 in Social Security income. If convicted, he faces a maximum penalty of ten years in prison and a $250,000 fine. In addition, he would forfeit any property derived from proceeds traceable to the offense. The Social Security Administration is the investigating agency.
Federal Charges Filed Against Man Who Allegedly Posted Online Threats of Violence at Women’s Reproductive ClinicsRead the Press Release
CHICAGO — An Indiana man is facing federal charges for allegedly threatening to commit violence at women’s reproductive health services clinics in Chicago and northwest Indiana.
LUKE DANIEL WIERSMA, 33, of Dyer, Ind., is charged with transmitting threats to injure and using threats of force to intimidate or interfere with reproductive health services.
Wiersma posted online threats of violence on at least seven occasions in October and November of last year, according to a criminal complaint and affidavit filed today in U.S. District Court in Chicago. Wiersma submitted the threats through the clinics’ websites, the complaint states. The clinic in Chicago provides reproductive health services, while the clinic in Hammond, Ind., provides counseling services related to women’s reproductive health.
Wiersma was arrested on Tuesday. A detention hearing is scheduled for Feb. 9, 2018, at 1:00 p.m., before U.S. Magistrate Judge Sidney I. Schenkier in Chicago.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Indianapolis, Ind., Office of the FBI and the Dyer, Ind., Police Department provided valuable assistance.
In one of the threats transmitted to the Chicago clinic on Oct. 29, 2017, Wiersma allegedly stated, “I will do anything and everything to stop the unmitigated murders of fetuses. I will do anything to stop the atrocities committed by your clinic every minute of every day at your clinic. You are all pieces of [expletive] and I will kill to stop these atrocities. I will blow you up if I have to, burn the clinic down. I will do whatever is necessary I swear to God I will. After that you are in God’s hands and He will do His thing.”
Transmitting a threat to injure is punishable by a maximum sentence of five years in prison, while using threats of force to intimidate or interfere with reproductive health services is punishable by up to one year in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorneys Abigail Peluso and Georgia Alexakis.
Fayetteville man sentenced on federal child pornography chargesRead the Press Release
NEWNAN, Ga. - Lloyd Christopher Young has been sentenced to 10 years in prison for receipt and possession of child pornography. Most of the images were of children between five to twelve years old, but Young collected pictures of infants as well.
“The defendant downloaded and viewed disgusting videos and pictures of young children being sexually abused,” said U.S. Attorney Byung J. “BJay” Pak. “His conduct helped further the sexual exploitation of children and cause irreparable harm to these young victims, all for his personal pleasure.”
“Each time Young viewed the unconscionable images of innocent young children, they were re-victimized,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “We strive every day to protect our children and will continue to use every law enforcement resource available to identify and prosecute individuals who exploit them in such a manner.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2015, the FBI discovered that Young was accessing an underground child pornography website. They then executed a search warrant at Young’s home in Fayetteville, Georgia, and seized Young’s computer and USB drive, which contained over 950 videos and images of child pornography. The majority of the children depicted in these images were between five to twelve years old. Some of the images, however, were of infants. When interviewed by law enforcement, Young admitted that he had specifically searched for and downloaded child pornography.
Lloyd Christopher Young, 32, of Fayetteville, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to 10 years in prison, to be followed by lifetime supervised release. He must also register as a sex offender as a condition of his supervised release. Young was found guilty by a jury on November 7, 2017.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jolee Porter prosecuted the case.
This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Dominican National Sentenced for Identity TheftRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for stealing the identity of a U.S. citizen from Puerto Rico.
Jhonny Emilio Pimentel Aybar, 35, a Dominican national who previously resided in Everett, was sentenced by U.S. District Court Judge Leo T. Sorokin to 25 months in prison and three years of supervised release. Pimentel Aybar will be subject to deportation upon completion of his sentence. In November 2017, Pimentel Aybar pleaded guilty to three counts of misuse of a Social Security number and three counts of aggravated identity theft.
From at least August 2012 to August 2014, Aybar used a stolen identity to register as a Level 3 sex offender with the Everett Police Department. Aybar has been required to register as a Level 3 offender since his 2008 conviction in Essex County Superior Court for indecent assault and battery on a child under 14.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant United States Attorney Anne Paruti of Lelling’s Major Crimes Unit prosecuted the case.
Department of Justice Files Denaturalization Complaint Against Diversity Visa Recipient Who Transferred Non-Profit Funds to Specially Designated Global TerroristRead the Press Release
The Department of Justice today filed a complaint to revoke the naturalization of a Sudan native—who entered the United States on an F-1 student visa and gained lawful permanent resident status through the diversity visa lottery program—for violating and conspiring to violate sanctions imposed against Iraq under the International Emergency Economic Powers Act (IEEPA), as well as obstructing Internal Revenue laws.
According to the complaint, Mubarak Ahmed Hamed violated and conspired to violate sanctions imposed against Iraq under the IEEPA from 1997 through July 21, 2000, the date of his naturalization. As the Executive Director of a non-profit organization, the Islamic American Relief Agency (IARA), Hamed regularly authorized and transferred tax-exempt funds from IARA accounts in the United States to an account in Jordan controlled by Khalid Al-Sudanee, a/k/a Khalid Ahmad Jumah Al-Sudani, knowing that Al-Sudanee would transport such funds into Iraq.
In 2004, both Al-Sudanee and IARA were designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) as Specially Designated Global Terrorists (SDGT). During this time, the IARA implemented projects that were funded by USAID, however there are no specific allegations that such funding was siphoned to Iraq or in violation of the IEEPA.
On June 25, 2010, Hamed pleaded guilty to conspiring to illegally transfer more than $1 million to Iraq in violation of federal sanctions, and to obstructing administration of the laws governing tax-exempt charities. Hamed was sentenced to four years and 10 months in federal prison on January 11, 2012.
On Jan. 16, 2018, the Departments of Justice and Homeland Security jointly released the “Section 11 Report,” which shined a light on the nation’s current immigration system and how it can be used to undermine national security and public safety. The report revealed—among other statistics—that nearly three out of every four individuals convicted of international terrorism-related charges in U.S. federal courts between Sept. 11, 2001 and Dec. 31, 2016 were foreign-born.
“This alleged denaturalization case is indicative that America needs this reform to our broken immigration system now more than ever. Under the guise of running a non-profit to assist in the famine crises in Africa, a ‘Diversity Visa’ recipient allegedly transferred funds on a regular basis to a known terrorist, undermining our nation’s lawful immigration system, public safety, and national security,” said Attorney General Jeff Sessions. “Immigration is a national security issue, and a merit-based immigration system would better serve our national interest because it would benefit the American people.”
“The defendant has pleaded guilty to despicable crimes, including the funneling of money to a known terrorist organization, from 1997 through his naturalization as a U.S. citizen in July 2000, all while conveniently failing to disclose his nefarious activities," said Thomas Homan, Deputy Director of U.S. Immigration and Customs Enforcement. "Plain and simple, if you defraud the U.S government during the naturalization process, you risk having your citizenship revoked.”
“Every visa decision is a national security decision that affects individual Americans. We commend the work of the Department of Justice and look forward to continued coordination with the Department of Homeland Security and the intelligence and law enforcement communities to protect our nation’s borders,” said Assistant Secretary Carl Risch of the Department of State Bureau of Consular Affairs. “Continued efforts to improve interagency security vetting for visa applicants will enhance our ability to identify persons who mean us harm and prevent their entry into the United States.”
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), ICE Office of the Principal Legal Advisor (OPLA), and Civil Division’s Office of Immigration Litigation, District Court Section’s (OIL-DCS) National Security and Affirmative Litigation Unit (NS/A Unit) investigated the case. The case is being litigated by the NS/A Unit with support from ICE OPLA and the U.S. Attorney's Office for the Western District of Missouri.
The claims made in the complaint are allegations only, and there have been no determinations of liability.
Convicted Felon Sentenced for Stealing Social Security BenefitsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Kenyatta Biafra Bellamy (48, Davenport) to 24 months in federal prison for theft of government funds. As part of his sentence, the Court also ordered him to pay $40,232.34 in restitution, the proceeds of the fraud.
Bellamy pleaded guilty on November 6, 2017.
According to court documents, Bellamy began receiving Social Security Supplemental Security Income (SSI) benefits in November 2011. In his application for SSI disability benefits, Bellamy stated that he had not been accused or convicted of a felony and that he was not on probation under federal or state law. He also stated that he rented his residence, maintained one checking account that contained less than $2,000, and had not received any other income. An investigation ultimately revealed that all of Bellamy’s statements were false and that he had previously been convicted of a felony and maintained bank accounts containing significant amounts of money.
Between December 2011 and October 2014, Bellamy received monthly wire transfers of $2,000 from a New York-based company that disperses pre-settlement funds. And, in October 2014, he received a final settlement check of $635,249.21. Bank statements show that Bellamy used the money that he had concealed and fraudulently obtained from the Social Security Administration to purchase residential properties in Winter Haven and Haines City. He also traveled frequently and made large cash withdrawals and purchases. Based on his fraudulent statements and submission of false documents, Bellamy received a total of $40,232.34 in federal benefits to which he was not entitled.
This case was investigated by Social Security Administration—Office of the Inspector General. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
CBP Officer Indicted and Arrested for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – On February 1, 2018, a federal grand jury in the District of Puerto Rico returned a four-count indictment against Alfredo Maysonet-Galarza, charging child pornography related offenses, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) in collaboration with the Department of Homeland Security Office of the Inspector General are in charge of the investigation.
The defendant, who is a current U.S. Customs and Border Protection Officer, is charged with advertising, receiving, distributing, and possessing child pornography. During the year 2015, Maysonet-Galarza used a well-known peer-to-peer file-sharing program to advertise for sharing certain videos and images depicting prepubescent minors engaging in sexually explicit conduct.
The indictment alleges that Maysonet-Galarza downloaded several videos depicting several female minors under 12 years of age, engaging in sexually explicit acts with adult males. Maysonet-Galarza is also charged with knowingly possessing over 1,000 images and videos involving prepubescent minors engaging in similar sexually explicit conduct. The images and videos had been shipped or transported using a means and/or facility of interstate and foreign commerce, and were produced using materials that had been mailed, shipped and transported in and affecting interstate and foreign commerce, including by computer.
The defendant also faces a Forfeiture Allegation that includes the forfeiture of all materials or property used, or intended to be used in the receipt, distribution, or possession of child pornography.
“The defendant’s conduct in this case is particularly troubling due to his role as a federal law enforcement officer,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “Individuals who advertise, receive, possess, or distribute child pornography work hard to evade law enforcement and disguise what they are doing. For every tactic taken to evade law enforcement, we will adapt our strategies to find them and prosecute them to the fullest extent of the law.”
“This case demonstrates that there are serious consequences for advertising, receiving, possessing, and distributing illegal images of innocent children being sexually exploited and traumatized,” said Orlando Baez, acting special agent in charge of Homeland Security Investigations in San Juan. “Predators who victimize innocent children for selfish gratification must know that we will not rest until they are brought to justice. Words cannot describe the harm that these crimes inflict on children. Working with our state, local, and federal law enforcement partners, we will continue to investigate predators and ensure that they feel the full weight of the law.”
If found guilty, Maysonet-Galarza faces a potential sentence of no less than 15 years of imprisonment up to a maximum possible sentence of 30 years in prison. The case is being prosecuted by Special Assistant U.S. Attorney Cristina Caraballo, under the supervision of AUSA Marshal Morgan, Chief of the Crimes Against Children and Human Trafficking Unit. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Brazilian Couple Arrested for International Kidnapping of a ChildRead the Press Release
Updated Feb. 22:
A federal grand jury returned a two-count indictment against all three defendants on Feb. 21.
They are set for a counsel determination hearing Feb. 26, 2018, at 10:00 a.m. before U.S. Magistrate Judge Dena Hanovice Palermo in Houston federal court.
They are charged with conspiracy to commit international parental kidnapping and international parental kidnapping
If convicted, each faces up to five years in federal prison for the conspiracy as well as a maximum of three years if convicted of the kidnapping charge.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.---
HOUSTON - An international businessman and his wife have been arrested and charged with conspiracy and international parental kidnapping, announced U.S. Attorney Ryan K. Patrick.
Carlos Otavio Guimaraes, 67, and Jemima Guimaraes, 65, were arrested at Miami, Florida, International Airport early this morning as they arrived on a flight from Brazil. They are set to make their initial appearances before U.S. Magistrate Judge John J. O’Sullivan at 1:30 p.m. today in Miami, at which time the government expects to request their continued detention pending further criminal proceedings.
The criminal complaint filed in Houston alleges they and their daughter - Marcelle Guimaraes, 39 - conspired to illegally retain the child in Brazil. The mother and minor child had traveled to Brazil to attend a family event in July 2013, but were supposed to return to Houston no later than July 20, 2013, according to the charges. Marcelle Guimaraes is also charged but not as yet in custody.
As of the filing of the complaint, the child has not returned to the United States.
If convicted, each faces up to five years in federal prison for the conspiracy as well as a maximum of three years if convicted of the kidnapping charge.
The FI conducted the investigation. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Boys and Girls Club Shooter Sentenced on Federal Robbery and Gun 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 Johnny Blackshell, Jr., 23, Rochester, NY, was sentenced to 147 months in prison by U.S. District Judge Charles J. Siragusa based upon his November 2017 plea to Hobbs Act Robbery and brandishing a firearm in furtherance of a crime of violence. The defendant was also ordered to serve five years of post-release supervision if he is released from state prison. Blackshell was previously sentenced in state court to life in prison without parole for the murders of Johnny Johnson, Raekwon Manigault, and Jonah Barley during a mass shooting outside the Boys & Girls Club of Rochester on August 19, 2015.Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that on August 10, 2015, at approximately 3:20 a.m., Blackshell and co-defendant Joseph Lowry entered the 7-Eleven convenience store located on Lake Avenue in Rochester intending to rob both cash and goods. After entering the store, the defendant and Lowry jumped over the service desk and ordered the employees to the ground. Blackshell then pointed a silver handgun at the victim’s head and instructed the victim to open the cash register. Lowry took $80 in United States currency from the cash register. In addition to the money, Blachshell and Lowry took an unknown quantity of cigarettes, tobacco, chewing gum, and numerous rolls of New York State scratch-off lottery tickets. The two then left the store and ran eastbound towards Lake Avenue. Several of the stolen lottery tickets were later redeemed, and attempted to be redeemed, as winners. Blackshell received monies for the winning lottery tickets.
Lowry was previously convicted and sentenced to 128 months in prison.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, the Federal Bureau of Investigation, under the direction of Acting Special Agent–in-Charge Kevin Lyons, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Black Hawk Man Sentenced for Attempted Enticement of a Minor Using the InternetRead the Press Release
United States Attorney Ron Parsons announced that a Black Hawk, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet was sentenced on February 5, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Nathan William Juhala, age 66, was sentenced to 10 years of imprisonment and 5 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Juhala was charged on February 22, 2017. The charge relates to Juhala responding to an ad on Craiglist and communicating with someone he believed to be a 15 year-old girl, who was actually an undercover law enforcement agent, for the purpose of engaging in sexual acts.
This case was investigated by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Juhala was immediately remanded to the custody of the United States Marshals Service.
Billings Man Sentenced for Great Falls Methamphetamine Distribution RingRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that 53-year old Michael Lira of Billings was sentenced to 150 months in prison, five years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing.
In the fall of 2016, the Russell Country Drug Task Force began investigating the defendant, Michael Lee Lira, for trafficking methamphetamine in Montana. Through further investigation, law enforcement became aware that the defendant, who lived in Billings, Montana, distributed methamphetamine for Great Falls resident, Robert Linn, Jr. Linn was previously sentenced to 276 months in prison for his role in this offense.
On April 8, 2017, law enforcement learned that the defendant planned to pick up methamphetamine from Linn that day. Agents also learned the defendant and Linn arranged to meet at a gas station near Lewistown, Montana. Law enforcement followed Linn throughout the early morning as he traveled around Great Falls. Linn eventually began to drive eastbound out of Great Falls toward Lewistown. Meanwhile, agents followed the defendant as he left Billings and drove toward Lewistown.
Around mid-morning, agents observed the defendant park next to Linn’s truck in the gas station parking lot. The defendant got out of his car and went to speak with Linn. A few minutes later, the defendant left Linn’s truck, retrieved a bag from his car, and placed the bag in the back passenger seat of Linn’s truck. Approximately 20 minutes later, the defendant and Linn got out of Linn’s truck. The defendant grabbed a black bag from Linn’s truck and placed it in the defendant’s car. Linn then drove back to Great Falls, while the defendant drove east and entered a neighboring colony outside of Lewistown.
Agents waited outside of a colony building for the defendant but eventually knocked on the door. A woman came to the door and stated that the defendant was in a trailer behind the building. Agents proceeded to the trailer and the defendant opened the door. Based on the gathered information, agents arrested the defendant and initially located a small baggie of methamphetamine in the defendant’s coat.
Soon thereafter, law enforcement searched the defendant’s car for the suspected methamphetamine. The defendant stated the contraband was located in a red toolbox in the back of the car. Agents located a large plastic bag inside the box, and seized four large bundles of methamphetamine contained in the bag. The DEA laboratory analyzed the methamphetamine seized from the defendant and determined the methamphetamine had a net weight of 1793 grams and a substance purity of 99%. This resulted in 1775 grams, or approximately four pounds, of actual methamphetamine. The methamphetamine seized from the defendant’s coat had a net weight of 4.264 grams and a substance purity of 99%. This resulted in 4.221 grams of actual methamphetamine.
During a subsequent interview, the defendant explained that he began by only selling an ounce of methamphetamine at a time. However, he quickly moved up to dealing more significant amounts of methamphetamine. The defendant believed he received a pound of methamphetamine from Linn by August and September of 2016. The defendant then recounted that he got two pounds of methamphetamine in December 2016, and an additional two pounds of methamphetamine in January and February 2017.
Lira has an extensive criminal history that include prior felony convictions for narcotics, burglaries, assaults, and firearms.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by Homeland Security Investigations, the Drug Enforcement Administration, and the Russell Country Drug Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Bank Pleads Guilty, Pays Historic Penalty for Concealing Anti-Money Laundering FailuresRead the Press Release
Assistant U.S. Attorneys Daniel C. Silva (619) 546-9713, Mark W. Pletcher (619) 546-9714, and David J. Rawls (619) 546-7966
NEWS RELEASE SUMMARY – February 7, 2018
SAN DIEGO – Rabobank National Association, a California subsidiary of the Netherlands-based Coöperatieve Rabobank U.A., pleaded guilty in federal court today to a felony conspiracy charge and agreed to forfeit $368,701,259 – the largest financial penalty in the Southern District of California – for obstructing regulators and hiding deficiencies in its anti-money laundering program.
At today’s hearing before U.S. Magistrate Judge Jill L. Burkhardt, Rabobank admitted to conspiring with several former executives to defraud the United States by unlawfully impeding an examination of its operations throughout California, including its Calexico and Tecate bank branches, by its primary regulator, the Department of the Treasury’s Office of the Comptroller of the Currency (OCC).
Rabobank admitted that its deficient anti-money laundering program resulted in hundreds of millions of dollars in untraceable cash, sourced from Mexico and elsewhere, to be deposited into its rural bank branches in Imperial County, and transferred via wire transfers, checks and cash transactions, without notifying federal regulators as required by law. And when the OCC was on the verge of discovering such grave deficiencies in 2013, Rabobank executives actively sought to deceive the regulators as to the true state of its operations, in the hope of avoiding regulatory sanctions that had previously been imposed on Rabobank in 2006 and 2008 for nearly identical failures.
According to the plea agreement, Rabobank admitted it was aware that the suspicious transactions made by certain customers were indicative of international narcotics trafficking, organized crime and money laundering. Despite this risk, the bank solicited businesses and individuals conducting these transactions, and failed to adequately monitor and conduct adequate investigations into these suspicious transactions.
Rabobank’s guilty plea comes less than two months after a former Rabobank vice president, George Martin, entered into a deferred prosecution agreement with the United States for his role in aiding and abetting Rabobank’s failure to maintain an anti-money laundering program that met Bank Secrecy Act requirements. Martin admitted his conduct in federal court in San Diego on Dec. 14, 2017, and is cooperating with the continuing investigation. As part of its guilty plea, Rabobank also agreed to cooperate with the United States’ continuing investigation of additional criminal conduct.
“Rabobank had an obligation to shine light on suspected drug traffickers, money launderers and organized crime,” said U.S. Attorney Adam L. Braverman. “Instead, this bank deliberately allowed hundreds of millions of dollars of suspicious cash transactions and wire transfers to flow through its branches and took measures to hide this activity from regulators. We will vigorously protect the integrity of the banking system, and we will not allow the financial institutions in our communities to play any role in facilitating international money laundering or financing transnational criminal organizations.”
“When Rabobank learned that substantial numbers of its customers’ transactions were indicative of international narcotics trafficking, organized crime, and money laundering activities, it chose to look the other way and to cover up deficiencies in its anti-money laundering program,” said Acting Assistant Attorney General John P. Cronan. “Worse still, Rabobank took steps to obstruct an examination by its regulator into those same deficiencies. The integrity of our financial system depends on prompt reporting by banks and other financial institutions of suspicious, potentially criminal transactions, and on these entities’ truthfulness and transparency with their regulators. Rabobank’s guilty plea today and forfeiture of more than $360 million is a warning to financial institutions that there are significant consequences for banks that engage in obstructive conduct in an effort to hide their anti-money laundering program failures from their regulators.”
“It is the responsibility of Homeland Security Investigations (HSI) to monitor and investigate activity which exploits the global infrastructure, to include financial systems. This complex investigation revealed, and Rabobank admits, that Rabobank was aware of the extreme risk that it was processing hundreds of millions of dollars related to transnational crime and international money laundering – activity which plagues the Southwest Border,” said Dave Shaw, Special Agent in Charge for HSI in San Diego. “This plea and significant forfeiture sends a strong message to financial institutions that this activity will not be tolerated.”
“Today, Rabobank is being held accountable for its illegal actions involving the movement of more than $360 million through the U.S. financial system on behalf of high risk customers,” stated IRS Criminal Investigation’s Special Agent in Charge R. Damon Rowe. “In today’s environment of increasingly sophisticated financial markets, it’s critical that global institutions follow U.S. law and abide by our anti-money laundering regulations. The IRS is proud to share its world-renowned financial investigative expertise in this and other complex financial investigations.”
The Bank Secrecy Act (“BSA”), located at Title 31 of the United States Code, requires financial institutions to implement and maintain an anti-money laundering compliance program (“BSA/AML program”) reasonably designed: (i) to detect suspicious activity indicative of money laundering and other crimes and (ii) to assure and monitor compliance with the BSA’s recordkeeping and reporting requirements, including to report to the Department of the Treasury any suspicious transactions (through the filing of “suspicious activity reports” or “SARs”) indicative of a possible violation of the law. In its plea agreement, Rabobank admitted knowing of significant BSA/AML program failures between 2009 and 2012. Some of these failures were caused by Rabobank’s policies and procedures that suppressed any investigation into suspicious transactions that occurred at its branches, by its accountholders, or by individuals conducting transactions on behalf of its accountholders that had all the indications of being involved in, derived from, or promoting illegal conduct.
According to admissions in its plea agreement, Rabobank received regular alerts of transactions by “High-Risk” customers, or through accounts deemed to be “High-Risk,” and that had been the subject of prior SARs filed by Rabobank. These High-Risk customers and accounts included those controlled and managed by Mexican businesses, nonresident aliens and U.S.-based accountholders who transacted hundreds of millions of dollars in untraceable cash, sourced from Mexico and elsewhere, into and through Rabobank accounts.
Rabobank also admitted in its plea agreement to creating and implementing policies and procedures to prevent adequate investigations into these suspicious transactions, customers, and accounts. Among those policies and procedures, Rabobank came up with the “Verified List” – a tool that effectively allowed Rabobank to execute an end-run the BSA/AML and SAR requirements. Rabobank instructed its employees that if a customer was on the “Verified List,” no further review of that customer’s transactions was necessary -- even if the transactions generated an internal alert, or the customer’s activity had changed dramatically from when it was “verified.” Rabobank’s BSA/AML staff were further instructed to aggressively increase the number of bank accounts on the Verified List. In 2009, Rabobank had less than ten “verified” customers; by 2012, as a result of Rabobank’s defective BSA/AML policies and procedures, it had more than 1,000 “verified” customers.
Additionally, Rabobank admitted failing to monitor and conduct adequate investigations into these transactions and submit SARs to the Financial Crimes Enforcement Network (“FinCEN”), as required by the BSA. Rabobank’s border branches, including those located in Calexico and Tecate in Imperial County, were heavily dependent on cash deposits from Mexico. Rabobank knew that millions of dollars in cash deposits at these branches were likely tied to illicit conduct. In particular, the Calexico branch, located about two blocks from the U.S.-Mexico border, was the “highest performing” branch in the Imperial Valley region due to the abundance of cash derived from Mexico. Throughout the time period, Rabobank continued this practice of soliciting cash-intensive customers from Mexico and elsewhere, all the while employing the foregoing inadequate BSA/AML policies and procedures to address the obvious, known “High Risks” associated with these accounts, transactions, and transactors.
When the OCC began conducting its periodic examination of Rabobank in 2012, Rabobank, acting through three of its executives, agreed to, among other things, knowingly obstruct the OCC’s examination. Rabobank responded to the OCC’s February 2013 initial report of examination with false and misleading information about the state of Rabobank’s BSA/AML program. Rabobank made false and misleading statements to the OCC regarding the existence of reports developed by a third-party consultant, which detailed the state of disrepair and resulting ineffectiveness of Rabobank’s BSA/AML program.
To further conceal the inadequate nature of its BSA/AML program and to avoid “others contradicting our findings” and statements to the OCC, Rabobank demoted or terminated two RNA employees who were raising questions about the adequacy of Rabobank’s BSA/AML program.
The case is being prosecuted by Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher, and David J. Rawls from the Southern District of California, and Trial Attorneys Kevin G. Mosley and Maria Vento of the Criminal Division’s Money Laundering and Asset Recovery Section. The investigation team included HSI, IRS, and the Financial Investigations and Border Crimes Task Force (the “FIBC”), a multiagency Task Force based in San Diego and Imperial Counties, and funded by the Treasury Executive Office of Asset Forfeiture (“TEOAF”). The investigation occurred in parallel with regulatory investigations by the OCC, Office of General Counsel, and FinCEN, Enforcement Division.
DEFENDANT
RABOBANK, NATIONAL ASSOCIATION
Roseville, California
SUMMARY OF CHARGES
Conspiracy to Defraud the United States, and to Corruptly Obstruct an Examination of a Financial Institution – Title 18, United States Code, Section 371
Maximum penalties: $500,000 fine; a mandatory special assessment of $400; and a term of probation of at least one year, but not more than five years.
AGENCIES
Homeland Security Investigations
Internal Revenue Service – Criminal Investigation
TEOAF’s Financial Investigations and Border Crimes Task Force
Armed Methamphetamine Trafficker Is Sentenced to 21 Years in PrisonRead the Press Release
STATESVILLE, N.C. – U.S. Attorney R. Andrew Murray announced today that Joseph Howard Davis, 34, of Charlotte, was sentenced to 260 months in prison on drug trafficking and firearms offenses. U.S. District Judge Richard L. Voorhees also ordered Davis to serve 10 years under court supervision upon completion of his prison term. In July 2017, a federal jury This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN.
According to filed court documents and evidence introduced during Davis’ two-day trial, from in or about 2014 to October 2016, Davis participated in a conspiracy to distribute methamphetamine in and around Catawba county and elsewhere in the Western District. Court records show that over the course of the investigation law enforcement seized from Davis approximately two ounces of 96% pure methamphetamine and two rifles. Davis has a previous felony conviction and is prohibited from possessing a firearm.
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In a separate case, Judge Voorhees also sentenced today Shea David Byrd, 44, of Lenoir, N.C. to 15 years in prison, and Patrick Neal Bates, 50, of Hickory, N.C. to 10 years in prison on methamphetamine trafficking offenses. Byrd and Bates were each ordered to serve five years of supervised release after they are released from prison.
All defendants are currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
These prosecutions stem from an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) that has resulted in the conviction of more than 200 defendants on methamphetamine trafficking and firearms charges. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement agencies and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray thanks Gregory L. Wiest, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; Chief Thurman Whisnant of the Hickory Police Department; and Sheriff Chris Bowman of the Alexander County Sheriff’s Office for their agencies’ coordination and assistance throughout these investigations.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, was in charge of the prosecution.
Albuquerque Felon Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Anderson Humphrey, 34, of Albuquerque, N.M., pled guilty today in federal court to being a felon in possession of firearms and ammunition. Under the terms of his plea agreement, Humphrey will be sentenced to 80 months in federal prison followed by a term of supervised release to be determined by the court.
Humphrey was charged by criminal complaint filed on May 26, 2016, with being felon in possession of a firearm and ammunition on May 23, 2016, in Bernalillo County, N.M. According to the complaint, Albuquerque Police Department (APD) officers located ammunition in Humphrey’s pocket and a firearm and ammunition in Humphrey’s vehicle incident to Humphrey’s arrest for an active warrant for aggravated assault with a deadly weapon, intimidation of a witness and kidnapping a victim.
Humphrey was subsequently indicted on Sept. 13, 2016, and charged with being a felon in possession of a firearm and ammunition on May 23, 2016, in Bernalillo County. According to the indictment, Humphrey was prohibited from possessing firearm or ammunition because of his prior felony convictions for unlawful possession of cocaine, burglary of a building, unlawful conspiracy to deliver cocaine and unlawful delivery of cocaine.
Humphrey was arrested on the federal charges in Sept. 2017, after he was transferred to federal custody from state custody where he was detained on related state charges. The state charges later were dismissed in favor of federal prosecution.
During today’s proceedings, Humphrey entered a guilty plea to the indictment and admitted that on May 23, 2016, he was in possession of a firearm and ammunition despite his status as a convicted felon. Humphrey remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
25 Members and Associates of Bronx Gang Charged in Manhattan Federal Court with Narcotics TraffickingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”), and James J. Hunt, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced charges today against 25 members and associates of the “Hooly Gang,” a crew operating primarily in the vicinity of Fox Street and Leggett Avenue in the Bronx, New York. The defendants are charged with narcotics conspiracy in Superseding Indictment S1 17 Cr. 449 (KPF).
Manhattan U.S. Attorney Geoffrey S. Berman said: “The defendants are charged with narcotics conspiracy. What they allegedly did was annex a residential neighborhood, including two playgrounds, and make it a virtual open-air bazaar for dangerous and potentially lethal drugs. We commend our partners at the NYPD, HSI, ATF, and DEA for working together to restore our neighborhoods to the law-abiding people who deserve to live without fear of gangs and the violence they often bring.”
NYPD Commissioner James P. O’Neill said: “As alleged, the defendants in this case plied their poison, including heroin and oxycodone, across two Bronx playgrounds, endangering the lives of many in the neighborhood. Our focus on crime—and violence—is unwavering. And it is exhibited clearly in today’s action. I am thankful for the efforts of detectives, agents, and prosecutors whose work resulted in the arrest of dozens this morning and the unsealing of this superseding indictment.”
HSI Special Agent-in-Charge Angel M. Melendez said: “The individuals arrested during this operation are alleged to sell crack and heroin around playgrounds. They have a clear disregard for law enforcement and clearly no regard for the communities in which they live. HSI and its law enforcement partners will continue to arrest and remove gang members, like those today, off our city streets.”
ATF Special-Agent-in-Charge Ashan M. Benedict said: “The Hooly Gang and its members, as alleged, turned playgrounds into open air drug markets where narcotics were more common than the sights and sounds of children laughing and playing. Thank you to all of the federal, state and local partners that helped create a force multiplier effect to help rid the streets of violent narcotics traffickers thus sending a message to the community that the rule of law runs the streets. I would like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
DEA Special Agent-in-Charge James J. Hunt said: “Allegedly, the Hooly Gang was a feared drug supplier in the Longwood section of the Bronx. Their products - ranging from crack, heroin, marijuana, and oxycodone - invited gang wars into the surrounding communities and enabled drug addiction. This unique law enforcement partnership, targeting gang violence in our city, led to today’s arrests.”
According to the Superseding Indictment[1] unsealed today in Manhattan federal court and other publicly filed documents:
The Superseding Indictment arises from a joint investigation, beginning in 2017, by the NYPD, HSI, DEA, and ATF into a crew operating in the vicinity of Fox Street and Leggett Avenue in the Bronx called the “Hooly Gang.” Members and associates of the Hooly Gang operated an open-air drug market in this residential neighborhood – including within and around two playgrounds – and sold, among other things, crack, heroin, oxycodone, and marijuana. In order to protect its drug turf and advance its aims, members and associates of the Hooly Gang also committed acts of violence, including shootings.
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Defendants arrested in New York yesterday and early this morning will be presented later this afternoon in Manhattan federal court. Defendant MELVIN ALSTON is presently in custody on state charges and will be transferred to federal custody. Defendants ANTHONY RODRIGUEZ, a/k/a “Ant,” ROBERTO JORGE, and GIOVANNI TORRES are already in federal custody on related charges.
Each defendant is charged with one count of narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
The case is assigned to U.S. District Judge Katherine Polk Failla.
Mr. Berman praised the outstanding investigative work of the NYPD’s Bronx Gang Squad, HSI’s Violent Gang Unit, ATF’s Joint Firearms Task Force, and the New York Field Division of the DEA, as well as the United States Marshals’ Service and the New York State Division of Parole for their assistance in today’s arrests. He also thanked the Bronx County District Attorney’s Office and the New York City Department of Investigation for their support in the investigation of this matter.
The Office’s Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorneys Rachel Maimin, Jessica Feinstein, and Danielle Sassoon are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the descriptions of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
2 New York Men Sentenced for Credit Card FraudRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that two New York men have been sentenced in New Haven federal court for their roles in a credit card fraud scheme.
On February 5, Chief U.S. District Judge Janet C. Hall sentenced YANG-SHI LIN, 31, of Flushing, to 12 months and one day of imprisonment, followed by two years of supervised release. Today, Chief Judge Hall sentenced MEI BAO LU, 31, of Flushing, to 18 months of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, between 2014 and September 2015, LU was the ringleader of a group of individuals from New York that engaged in counterfeit credit card transactions at retail stores along the East Coast. LIN was LU’s second-in-command. As part of the scheme, LU provided several individuals (“buyers”) with counterfeit credit cards, which had been produced from credit card information skimmed from cardholders, and directed the buyers to purchase gift cards and luxury merchandise using the counterfeit cards. LU then sold the items to other individuals at a discount in order to be fenced or sold on the black market. The group engaged in fraudulent credit card transactions at retail stores in Connecticut, Florida, Maine, Massachusetts, New York, New Jersey, Pennsylvania and West Virginia.
In total, the group members collectively used 120 counterfeit credit cards, issued by 18 victim financial institutions, to make a total of approximately $179,000 in fraudulent purchases. Investigators discovered an additional 333 stolen card numbers on thumb drives belonging to LU and LIN that had not been used at the time of their arrests.
The investigation began in February 2015 when the Clinton Police Department and other police departments in nearby Connecticut towns received several complaints from citizens about unauthorized charges on their credit and debit cards. The investigation revealed that many of the complaining citizens had all dined at the same Clinton restaurant during a two-week period in early February 2015.
A federal arrest warrant for LU was issued on August 18, 2015. LU was arrested on September 3, 2016, in West Virginia, after he and three other individuals were caught buying gift cards and merchandise with counterfeit credit cards at a mall in Barboursville, West Virginia. On February 17, 2017, LU pleaded guilty to one count of access device fraud and aiding and abetting.
LIN was arrested on August 20, 2015, and pleaded guilty to the same charge on June 22, 2017.
LU and LIN, who are released on bond, were ordered to report to prison on March 7, 2018.
Several other members of LU’s group were charged and convicted for credit card related offenses in state and federal courts in Maine, New Jersey, New York, and West Virginia.
This matter was investigated by Homeland Security Investigations and the Clinton Police Department. The U.S. Secret Service, Millburn (N.J.) Police Department, New York Police Department, New York State Police, Acton (Mass.) Police Department, and Barboursville (W. Va.) Police Department assisted with the investigation. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
6 February 2018
Wife of Former UAW Vice President Pleads Guilty to Criminal Tax FraudRead the Press Release
The wife of former UAW Vice President General Holiefield pleaded guilty to the felony offense of filing false tax return documents, announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, James Vanderberg, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Ian Burg, District Director, U.S. Department of Labor – Office of Labor-Management Standards and David P. Gelios, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation.
Monica Morgan, 54, of Harrison Township, Michigan pled guilty before United States District Judge Paul D. Borman. Morgan admitted to filing tax return documents which failed to report more than $200,000 of income she received during 2011.
Morgan is the wife of former UAW Vice President General Holiefield, who died in March of 2015. From 2010 to 2014, Holiefield was the director of the UAW Chrysler Department and acted as the lead negotiator and the lead administrator for the collective bargaining agreements between the UAW and FCA.
According to court records, Morgan owned and operated the companies Monica Morgan Photography and Wilson’s Diversified Products based in Detroit, Michigan. Morgan’s companies received hundreds of thousands of dollars from the UAW-Chrysler National Training Center during the years when Holiefield was a UAW Vice President. Morgan’s companies also received significant payments from Holiefield’s charity, known as the Leave the Light On Foundation. Former FCA Vice President Alphons Iacobelli and former FCA Financial Analyst Jerome Durden each acknowledged using Wilson Diversified Products and the Leave the Light On Foundation to conceal payments made on behalf of FCA to UAW Vice President Holiefield.
Under the terms of the plea agreement, Morgan faces a term of up to 27 months in prison and must pay the U.S. Treasury Department restitution of $190,747.
Morgan’s plea marks the fourth conviction in the ongoing criminal investigation into illegal payoffs involving UAW officials.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“This plea is yet another step taken towards combatting the years-long corruption that plagued the relationship between senior officials at FCA who illegally lined the pockets of UAW officials and, in this instance, the wife of General Holiefield, the former UAW Vice President in charge of the Chrysler Department,” stated United States Attorney Matthew Schneider. “This plea should serve as a warning that we will relentlessly pursue individuals who cheat on their taxes by hiding ill-gotten gains from the United States.”
“Today’s plea is another example of the government’s efforts to eradicate corporate fraud. In this particular case, Monica Morgan intentionally took funds which were intended to train hard working men and women. Those who choose self-enrichment at the expense of others will be caught, said Manny Muriel, Special Agent in Charge of the Detroit’s IRS Criminal Investigation (IRS-CI), in a statement. Muriel continued, “And when they do not report criminally derived funds, they commit another equally egregious crime –tax fraud. IRS-CI will hold everyone accountable, no matter their position.”
“Ms. Morgan is the fourth individual to plead guilty in a multi-year scheme in which FCA executives paid off the senior UAW officials who negotiated and administered the collective bargaining agreements between the union and company,” said District Director Ian Burg of the U.S. Department of Labor’s Office of Labor-Management Standards (OLMS). “OLMS is committed to protecting financial integrity in labor unions and also protecting against double-dealing and corruption in the union collective bargaining process.”
“Union workers sacrifice every pay period by having money withheld from their salary to invest in their future training opportunities”, said Timothy Waters, Acting Special Agent in Charge, Detroit Division of the FBI. “Today’s guilty plea highlights an additional person held accountable for a complex fraud scheme which undermines the trust and hard work by union members. The FBI led labor racketeering task force will continue to investigate this matter to the fullest and ensure those who violate the law will be held accountable.”
Morgan’s sentencing date has been set for June 4, 2018.
Waterbury Resident Charged with Violating Sex Offender Registration LawsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an Indictment charging BYRON ELLIOTT VAUGHN, 31, of Waterbury, with violating the Sex Offender Registration and Notification Act (SORNA).
The indictment was returned on November 30, 2017. VAUGHN appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charge.
According to court documents and statements made in court, in July 2009, VAUGHN was convicted in the Commonwealth of Virginia of rape. He was sentenced to 10 years of incarceration, suspended after serving two years, and 15 years of probation. VAUGHN also was required to comply with lifetime sex offender registration requirements.
It is alleged that VAUGHN failed to update his sexual offender registration in Virginia, failed to advise Virginia of his change of residence to Connecticut, and failed to register in Connecticut as a sex offender when he moved to Connecticut and applied for employment in Waterbury in November 2016.
On August 9, 2017, the U.S. Marshals Service located and arrested VAUGHN in Waterbury on a violation of probation warrant that was issued in Virginia in December 2015. He has been detained since his arrest.
If convicted of the offense, VAUGHN faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Virginia Man Pleads Guilty to Traveling to Haiti and Engaging in Illicit Sexual ConductRead the Press Release
A Stuarts Draft, Virginia man pleaded guilty today in the U.S. District Court in Harrisonburg, Virginia, for traveling from the United States to Haiti and engaging in illicit sexual conduct with a minor, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Acting U.S. Attorney Rick A. Mountcastle of the Western District of Virginia announced.
James Daniel Arbaugh, 40, pleaded guilty to one count of traveling in foreign commerce from the United States to Haiti in or about 2016 to engage in illicit sexual conduct with a person under the age of 18. The defendant will be sentenced on June 13 at 10:30 a.m.
According to facts admitted by the defendant during the guilty plea, Arbaugh has lived in Haiti for approximately 15 years and has traveled regularly back to the United States during that time. The defendant admitted that in 2016, while in Haiti, he engaged in illicit sexual contact with a minor under the age of 12 by touching the minor’s genitals under the minor’s clothing.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Harrisonburg Police Department. This case is being prosecuted by Trial Attorney Kaylynn Shoop of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jeb Terrien of the U.S. Attorney’s Office in the Western District of Virginia.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Violent Crime Federal Prosecution UpdateRead the Press Release
St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers. Federal prosecution is a powerful tool in the fight to reduce violent crime. Below is a list of defendants prosecuted federally in January:
Kenneth Johnson-Pace, 23, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Demarco Moorehead, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Brian O’Neal, 30, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Demarquo Starks, 24, Florissant, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Kirk Wallace, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tyrone Williams, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession of stolen firearms; possession with intent to distribute oxycodone; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Christopher Wilson, 28, Omaha, NE, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Charles Aubuchon, 47, Eolia, was indicted by a federal grand jury on one felony count of possession with the intent to distribute 50 grams or more of methamphetamine (schedule II controlled substance); possession of a firearm in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Willie Bolden, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
James Bradley, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Deondery Chambers, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Decoreyon Harris, 32, St. Louis, was indicted by a federal grand jury on one felony count of interference with commerce by threats of violence; possession of a firearm in furtherance of a crime of violence; and one felony count of felon in possession of a firearm.
Deandre Jones, 28, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Jones, 53, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Shaun Leachman, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Trevon McClelland, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Pruitt, Jr., 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Aaron Robinson, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Silas, III, 19, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Levander Williams, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Charles Alicea, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Antwuan Allen, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Kevin Chattman, 41, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jermain Hill, 41, O’Fallon, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute 1kg of heroin; one felony count of possess with intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking crime.
Kevin Seltzer, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Carnelius Watson, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute 50g or more of methamphetamine; one felony count of felon in possession of a firearm in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Kerry Bolden, 42, was indicted by a federal grand jury on one felony count of possessing with intent to distribute heroin; one felony count of possessing one or more firearms in furtherance of the drug trafficking crime; and felon in possession of a firearm.
David Boxley, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tayler Griffin, 19, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Kelvon Hulsey, 23, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
David Lee, Jr., 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tommie Lee, 66, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute methadone; and possession of a firearm in furtherance of a drug trafficking crime.
Kenneth Lynch, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Michael Pearson, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Justin Phillips, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Dyanthany Proudie, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Edward Watson, 67, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possessing with the intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Darvell Willis, 28, St. Louis, was indicted by a federal grand jury on one felony count of possession with the intent to distribute fentanyl; one felony count of felon in possession of a firearm; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Mascio Whitfield, 32, St. Louis, was indicted by a federal grand jury on one felony count of possession with the intent to distribute fentanyl; one felony count of felon in possession of a firearm; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Novelle Jackson, 30, St. Louis, pled guilty to felon in possession of a firearm.
Marquis Gray, 28, St. Louis, pled guilty to felon in possession of a firearm.
Walter M. White, 46, St. Louis, pled guilty to felon in possession of a firearm.
James Smith, 33, Florissant, pled guilty to felon in possession of a firearm.
William Lumpkins, 34, St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute heroin.
Olugbenga Folarin, 27, St. Louis, pled guilty to felon in possession of a firearm.
Israel Campos, 21, St. Louis, pled guilty to interfere with commerce by threat of violence and possession of a firearm in furtherance of a crime of violence.
Kenneth Murphy, 35, St. Louis, pled guilty to felon in possession of a firearm.
Demetrius Lewis, 28, St. Louis, pled guilty to felon in possession of a firearm.
Leman H. Dobbins, Jr., 52, St. Louis, pled guilty to felon in possession of a firearm; possession with the intent to distribute heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Dane Reed, 41, St. Louis pled guilty to felon in possession of a firearm.
Damon Deandre Williams, 41, St. Louis, pled guilty to felon in possession of a firearm.
Antoine A. Cooper, 42, Florissant, was sentenced to 37 months in prison for felon in possession of a firearm.
Sandy Griffin, 19, East St. Louis, was sentenced to 8 months in prison for transferring a firearm used to commit a crime.
Jacob August Niebruegge, 20, Troy, IL, was sentenced to 7 months in prison for transferring a firearm used to commit a crime.
Richard E. Scott, Jr., 25, was sentenced to 72 months in prison for conspiracy to distribute and possess with intent to distribute cocaine; conspiracy to distribute and possess with intent to distribute heroin; and felon in possession of a firearm.
Cryland Robinson, 28, St. Louis, was sentenced to 51 months in prison for felon in possession of a firearm.
Christopher Dawkins, 34, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm.
Majuan M. Bates, 40, Dallas, TX, was sentenced to 38 months in prison for felon in possession of a firearm.
Dominick Brooks, 29, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm.
Fredderick Eason, 32, St. Louis, was sentenced to 78 months in prison for possession of a firearm in furtherance of a drug trafficking crime.
Leo Kent, 39, St. Louis, was sentenced to 100 months in prison for felon in possession of a firearm.
Reginald M. Higgins, 44, St. Louis, was sentenced to possession with the intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Remmie Latchison, 31, St. Louis, was sentenced to 12 months in prison for felon in possession of a firearm.
Rahman V. Keyes, 28, Ferguson, was sentenced to 106 months in prison for conspiracy to distribute and possess with intent to distribute heroin; possess with intent to distribute heroin; possession of firearms in furtherance of drug-trafficking crime; and possess with intent to distribute heroin.
Anthony Kirksey, 31, St. Louis, was sentenced to 21 months in prison for felon in possession of a firearm.
Hillford Turner, 37, St. Louis, was sentenced to 42 months in prison for felon in possession of a firearm.
Calvin Davis, 55, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.
John Torregrossa, 29, St. Louis, was sentenced to 44 months in prison for felon in possession of a firearm and possession of a controlled substance drug.
Ivery Williams, 42, St. Louis, was sentenced to 15 months in prisons for felon in possession of a firearm.
Vermont Man Sentenced to over Twelve Years for Possession of Firearms and Conspiracy to Distribute Fentanyl, Heroin, and Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Evan “Red” Harris, 34, of Burlington, Vermont, was sentenced yesterday for possession of a firearm in furtherance of drug trafficking; and conspiracy to distribute fentanyl, over 100 grams of heroin, and over 28 grams of cocaine base. United States District Judge Christina Reiss sentenced Harris to a 91-month term of incarceration for the drug conspiracy, and a consecutive 60-month term of incarceration for the firearm offense, resulting in a total 151-month term of incarceration.
According to Court records, Harris was the primary Vermont-based drug distributor in the organization and perpetuated a long-running and violent conspiracy that imported over a kilogram of opiates into the Chittenden County area. Harris and his coconspirators employed Vermont drug users to regularly transport cash southbound to the Bronx and regularly bring more than 100 grams of heroin and fentanyl northbound to Vermont. Harris and others working with him then distributed the drugs to customers in Chittenden County and elsewhere. At times, Harris and others acting on his behalf sold pure fentanyl to local drug users, leading to at least two overdoses at a Milton residence. Further, Harris utilized the Winooski apartment of a senior citizen as a stash location for over 100 grams of heroin and provided this public housing tenant heroin in exchange for the use of the residence to package drugs for distribution. Finally, Harris traded heroin for a firearm on at least one occasion, and regularly displayed a firearm while distributing controlled substances.
Harris’ arrest on August 25, 2016 was the culmination of a coordinated operation that involved numerous federal, state, and local agencies in the states of Vermont and New York. In total, law enforcement seized over 350 grams of heroin, over 70 grams of cocaine base, a .45 caliber Ruger semi-automatic pistol, and over $11,000 cash from Harris and coconspirators. The investigation resulted in the indictment of Harris along with nine coconspirators, including Harris’ drug supplier Andre “Buzzo” Terrell. Terrell has pleaded guilty to conspiracy to distribute 100 grams or more of heroin and is awaiting sentencing.
United States Attorney Christina E. Nolan commended the investigative efforts of the Federal Bureau of Investigations; the Vermont Drug Task Force; the Vermont State Police; the Drug Enforcement Administration; the New York State Police; the Shelburne Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Burlington Vermont Police Department, in the successful arrest and prosecution of Harris.
Harris was represented by Bradley S. Stetler, Esq. The United States was represented by Assistant U.S. Attorney Jonathan A. Ophardt.
Universal City (TX) Man Pleads Guilty to Threatening a U.S. OfficialRead the Press Release
In San Antonio this afternoon, a federal judge sentenced 59-year-old James Amos Headley of Universal City, TX, to one year confinement after Headley pleaded guilty to federal charges in relation to threatening the lives of a member of Congress and the member’s family, announced United States Attorney John F. Bash and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio.
Appearing before U.S. District Judge Xavier Rodriguez, Headley pleaded guilty to two counts of influencing a federal official by threat of murder. By pleading guilty, Headley admitted that on July 11, 2017, he left a message on the victim’s voicemail system in Washington, D.C. threatening to murder the member of Congress as well as the member’s family. Following his arrest, Headley told agents that he was upset with the victim’s position on different policies and decided to call and leave a message demonstrating his intent to impede and intimidate the member of Congress.
Following today’s guilty plea, Judge Rodriguez ordered that Headley be confined for one year—six months in federal custody followed by six months of home confinement—with credit for time served. Judge Rodriguez further ordered that Headley be placed on supervised release for a period of three years after completing his home confinement. Headley has remained in federal custody since his arrest on July 13, 2017.
FBI special agents investigated this case together with the U.S. Capitol Police. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.