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23 January 2018
Fort Totten Man Sentenced on Firearms ChargesRead the Press Release
FARGO - United States Attorney Christopher C. Myers announces that on January 23, 2018, DANIEL MICHAEL TWOHEARTS, age 24, of Fort Totten, ND, was sentenced before Circuit Court Judge Ralph R. Erickson (sitting by designation), on drug trafficking and firearms charges, specifically: Possession of a Firearm and Ammunition by a Convicted Felon; Possession of a Stolen Firearm; Possession with Intent to Distribute a Controlled Substance; and Discharging a Firearm During and in Relation to a Drug Trafficking Crime. TwoHearts was sentenced to serve 25 years’ imprisonment, to be followed by 5 years of supervised release, as well as pay $400 in special assessments and $482.99 in restitution.
This case came to the attention of law enforcement on the evening of February 2, 2017, when a North Dakota Highway Patrol trooper attempted to pull the defendant over regarding a traffic offense which occurred on Interstate 29 near Grand Forks, ND. TwoHearts did not pull over, but continued toward Hillsboro where a Hillsboro police officer joined the pursuit. Approximately one mile south of Hillsboro, Traill County deputy sheriffs deployed spike strips, which disabled the pickup being driven by TwoHearts. TwoHearts exited the vehicle and fired a handgun in the direction of the trooper and police officer, neither of whom were struck. TwoHearts then fled on foot, which led to a multi-agency manhunt. Discovered near the pickup where TwoHearts had previously been was approximately five ounces of pure methamphetamine.
TwoHearts was eventually located in Devils Lake, North Dakota, after stealing three different vehicles along the way. During a brief standoff with law enforcement in Devils Lake, TwoHearts shot himself in the chest with the same handgun he had fired at the trooper and police officer near Hillsboro. At that point Two Hearts was apprehended and arrested without further incident.
TwoHearts was sentenced as an Armed Career Criminal, with eight prior burglary convictions, and was on state probation at the time of the instant offense. TwoHearts previously pled guilty in state court on charges relating to him stealing motor vehicles and endangering an infant in the course of fleeing from law enforcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the North Dakota Bureau of Criminal Investigation, with assistance from the North Dakota State Highway Patrol, Hillsboro Police Department, Traill County Sheriff’s Office, North Dakota Parole & Probation, North Dakota Crime Lab, Ramsey County Sheriff’s Office, Benson County Sheriff’s Office, Devils Lake Police Department, Lake Region Narcotics Task Force, Grand Forks County Sheriff’s Office, Grand Forks SWAT, CBP, Bureau of Indian Affairs, Three Affiliated Tribes Police Department, Minnesota Bureau of Criminal Apprehension, Minnesota State Patrol, and the Polk County, MN, Sheriff’s Office.
This case was prosecuted by Assistant United States Attorney Jake Rodenbiker.
Former nursing home employee sentenced to federal prison for embezzling over $80,000Read the Press Release
CHARLESTON, W.Va. – A former nursing home employee who embezzled over $80,000 was sentenced today to a year and a month in federal prison, announced United States Attorney Mike Stuart. Veneford Blankenship, 35, of Bluefield, previously pleaded guilty to mail fraud. She was also ordered to pay $81,486.15 in restitution. U.S. Attorney Stuart commended the cooperative investigative efforts of the FBI and the United States Postal Inspection Service.
Blankenship worked at a nursing home in Princeton as the Business Office Supervisor where she oversaw the financial operations. Her duties included sending patient invoices, recording deposits in the nursing home’s accounting program, and depositing checks into the nursing home’s operations account. The nursing home also had another bank account, which allowed residents to collect funds that were occasionally spent on dinner, outings, and small events for residents. While the nursing home’s parent company received bank statements for its operations account, the parent company did not receive any statements for the other bank account.
Blankenship admitted that in June 2015, she began secretly diverting residents’ payment checks. Instead of depositing these checks into the operations account, she deposited the checks into the other bank account. She then wrote checks to herself from the other account, forging the signatures of the two individuals with signature authority. She hid her crime by writing false memos on the checks and indicating that the withdrawals were for legitimate nursing home purposes, when in reality she took the money for herself. She also falsely updated the nursing home’s accounting program to indicate that the residents paid invoices and that the nursing home received funds that she had stolen.
Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
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Former Vallejo Woman Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
SACRAMENTO, Calif. — Dionna J. Bradshaw, 37, formerly of Vallejo, pleaded guilty today to conspiring to submit false claims for tax refunds to the Internal Revenue Service, U.S. Attorney McGregor W. Scott announced.
According to court documents, from March 2011 through March 2013, Bradshaw and co‑defendant Porsha Dickens, of Vallejo, participated in a conspiracy to submit false tax returns to the Internal Revenue Service by obtaining personal identifying information of others, and then submitting returns seeking refunds to which the people listed on the returns were not entitled. To pursue the refunds, false statements were placed on the tax returns regarding employers, income, withholding from income, and eligibility for certain tax credits, among other things. The employers listed on most of the fraudulent returns were companies purportedly belonging to codefendant Dickens. The fraudulently obtained tax refunds were frequently directly deposited into the bank accounts of Bradshaw and Dickens. The total amount of refunds claimed in connection with the conspiracy was approximately $301,612.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales is prosecuting the case.
Bradshaw is scheduled to be sentenced by Judge John A. Mendez on May 1, 2018. Bradshaw faces a maximum statutory penalty of 10 years in prison and a $250,000 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.
Co-defendant Dickens is scheduled to go to trial on September 24, 2018, on charges of conspiracy to submit false claims and making false claims. The charges against Dickens are only allegations; Dickens is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former School Owner and CEO Sentenced to 30 Months in Federal Prison for Federal Financial Aid Fraud SchemeRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today that on Friday, January 19, 2018, Chief U.S. District Judge Brian A. Jackson sentenced ALDEN HALL, age 58, of Baton Rouge, Louisiana, to serve 30 months in federal prison for her multi-year scheme to defraud the United States Department of Education and steal Pell Grant funds. The Court also ordered Hall to make restitution payments to her victim in the amount of $276,220 and pay a $500 special assessment. Hall will be required to serve a two-year term of supervised release upon her release from prison.
In the summer of 2017, after a four-day trial, the jury unanimously returned guilty verdicts on all five counts presented at trial, including three counts of theft of government funds, one count of fraudulently obtaining financial assistance funds, and one count of money laundering.
HALL was the owner and Chief Executive Officer of Alden’s School of Cosmetology and Alden’s School of Barbering located in Baker, Louisiana. As the evidence demonstrated, HALL engaged in a scheme to steal government funds by causing misrepresentations to be submitted to the Department of Education. For instance, HALL represented to the Department that certain students were enrolled in Pell Grant-approved programs of instruction when HALL knew that they were actually in programs of instruction that did not qualify for Pell Grants. HALL caused false and forged documents to be submitted as part of certain students’ financial aid packages, and caused misrepresentations to the Department about the number of hours that certain students had attended class and their standing at the school, when in fact the individuals had never attended class. Through the scheme, HALL fraudulently received more than $270,000 in federal funds. Finally, in December of 2011, as proceeds were being generated from HALL’s fraudulent scheme, she engaged in money laundering by transferring criminally derived property of a value greater than $10,000 from a bank account to a check issued to herself.
Acting U.S. Amundson stated, “This defendant—over several years—systematically used her position of authority and trust with her students to fraudulently steal funds meant to educate underprivileged students. Today she has been held accountable for her fraudulent scheme and her efforts to conceal her criminal conduct. It is our hope that this sentence strikes a chord with anyone else who may be tempted to steal from the Department of Education. I sincerely appreciate the hard work of the federal and state agencies, and the prosecutors from this office, who worked as a team to bring this defendant’s sophisticated and long-running scheme to an end.”
"Ms. Hall used her position to willfully defraud her students and America's taxpayers in a deliberate and methodical way, and that is unacceptable," said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education—Office of Inspector General's Southern Regional Office. "This sentencing should serve as a warning to anyone who intentionally steals or misappropriates Federal student aid for their own selfish purpose: you will be caught and held accountable for your criminal actions."
FBI Special Agent-in-Charge Eric J. Rommal stated: “Through cooperation with our federal and state partners, the FBI will continue to aggressively investigate any attempts by persons seeking to fraudulently take advantage of education grants designed to help students in financial need. In this matter, the defendant selfishly chose to pursue her own agenda of fraud and deception, while jeopardizing the credit of her victims and hampering their legitimate efforts to obtain financial aid.”
Louisiana State Inspector General Stephen Street commented, “This is a case of brazen and calculated fraud that had a direct impact on innocent citizens who had legitimate need for this financial aid. In our view, the prison sentence was entirely appropriate and sends a message that anyone who steals from the taxpayers had better be prepared to go to jail for it. Louisiana OIG will continue working with our law enforcement partners to make sure of it.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Department of Education—Office of the Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service and the Louisiana Inspector General’s Office. It is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Jessica M.P. Thornhill.
Former Registry of Motor Vehicles Clerk Sentenced for Role in Identity Theft SchemeRead the Press Release
BOSTON – A former Massachusetts Registry of Motor Vehicles (RMV) clerk was sentenced today in federal court in Boston for her role in a scheme to produce false identification documents.
Annette Gracia, 37, of Boston, was sentenced to one year and one day in prison and two years of supervised release. In October 2017, Gracia and co-conspirators Evelyn Medina, 56, of Boston; Kimberly Jordan, 33, of Randolph; David Brimage, 46, of Boston; and Bivian Yohanny Brea, 41, of Boston, agreed to plead guilty to one count of producing without lawful authority an identification document or a false identification document. In December 2017, Angel Miguel Beltre Tejada, 32, a Dominican national illegally residing in Jamaica Plain, was sentenced to two years in prison after pleading guilty to one count of aggravated identity theft. Tejada will be subject to deportation proceedings upon completion of any sentence imposed.
In October 2015, law enforcement received an anonymous letter alleging that a corrupt RMV employee was providing Massachusetts identifications and drivers’ licenses to individuals who were using false identifications. An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were working with Brea and Tejada to fraudulently provide Massachusetts licenses and identification cards to illegal aliens for cash.
The scheme involved several steps. Tejada and Brea would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejada would receive several hundred dollars in cash each time he sold identification documents. Brea received up to $2,700 per identity for her role in the scheme, which included helping clients obtain the documents and facilitating their acquisition of Massachusetts identity documents.
Typically, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
On Jan. 17, 2018, Medina was sentenced to 15 months in prison and two years of supervised release.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State’s Diplomatic Security Service; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. HSI’s Document and Benefit Fraud Task Force investigated the case. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the cases.
Former O'Fallon, Illinois Resident Indicted for Receipt of Child PornographyRead the Press Release
Christopher R. Buse, 42, of Staunton, Illinois, was indicted on January 17, 2018 on one count of receipt of child pornography, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. The case is set for trial on March 27, 2018 in East St. Louis, Illinois. Buse was released on bond pending trial with special conditions that include home detention and electronic location monitoring.
The indictment alleges that on July 11, 2016, Buse knowingly received a video file that contained child pornography in violation of Title 18, United States Code, Section 2252A(a)(2)(B). If convicted, Buse faces a prison sentence of not less than five years and up to 20 years, a fine of up to $250,000, and up to three years supervised release.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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."
The prosecution is the result of an investigation by the Federal Bureau of Investigation’s Violent Crimes against Children Task Force, the United States Secret Service’s Springfield Electronic Crime Unit-Southern Illinois Cyber Group as well as the O’Fallon, Illinois Police Department. The United States Attorney’s Office for the Central District of Illinois and the Staunton, Illinois Police Department assisted in this investigation. The case is being prosecuted by Assistant United States Attorney James G. Piper, Jr.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Former Employee of Glendale’s City Attorney Sentenced to Federal Prison after Embezzling nearly $700,000 of City FundsRead the Press Release
LOS ANGELES – A former employee of the Glendale City Attorney’s Office has been sentenced to 15 months in federal prison after she admitted embezzling nearly $700,000 in a scheme that used false documents to make it appear the money was being used to pay civil claims against the city.
Cassandra Alexander, 53, who resides in the Winnetka district of Los Angeles, was sentenced Monday by United States District Judge George H. Wu.
Alexander pleaded guilty in October to one count of theft from an organization receiving federal funds and admitted that she embezzled money for more than 15 years.
Alexander was a claims and litigation support supervisor at the Glendale City Attorney’s Office, where she was responsible for assembling “Settlement Packets” that were used to resolve claims against Glendale for personal injury or property damage. Each Settlement Packet contained approval of the settlement by a member of the City Attorney’s Office and the City Council, as well as authorization for the city’s Finance Department to issue a check to the claimant. Alexander, who had unlimited authority to sign documents directing the Finance Department to issue checks, was responsible for picking up the checks and providing them to claimants’ attorneys.
Beginning in July 2001, and continuing through March 2017, Alexander created and submitted fraudulent Settlement Packets that caused the Finance Department to issue 30 checks to her family members and acquaintances, according to a plea agreement filed in this case. Alexander also created bogus settlement agreements and fake minutes of City Council meetings.
After the Finance Department prepared the checks, Alexander took possession of the checks and provided them to the payees, who cashed them and transferred the money to Alexander.
“For over 15 years, Alexander forged City documents, lied to her coworkers, and stole over $600,000 from the City, all while pretending to be a dedicated employee who earned the trust of her supervisors and rose through the ranks to a position of trust,” prosecutors wrote in a sentencing memorandum filed with the court. “She continuously exploited the trust that her supervisors and two successive City Attorneys placed in her.”
Alexander embezzled just over $692,000 from the city, which includes an uncashed check for $82,500 that was recovered from her residence. In addition to the prison term, which she will begin serving next month, Alexander was ordered to pay the city $609,764.84 in restitution.
This case was investigated by the Federal Bureau of Investigation, which received substantial assistance from the Glendale Police Department and the full cooperation of other city departments.
This case was prosecuted by Assistant United States Attorney Patricia A. Donahue of the Public Corruption and Civil Rights Section.
Former Department of Veterans Affairs Employee Pleads Guilty to Wire Fraud and BriberyRead the Press Release
A former Department of Veterans Affairs (VA) official pleaded guilty today to charges of wire fraud and bribery for orchestrating a scheme to steal more than $66,000 in benefit money from the VA for veterans in need.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.
Russel M. Ware, 39, of Upper Marlboro, Maryland, pleaded guilty to one count of wire fraud and one count of bribery before U.S. District Judge Amit P. Mehta in the District of Columbia. Sentencing has been scheduled for May 8, before Judge Mehta.
According to the plea documents, between September 2013 and May 2014, Ware devised a scheme to steal more than $21,000 in VA disability benefit money by wiring payments in the names of legitimate VA beneficiaries to his own bank account. Between October 2014 and February 2015, Ware directed additional disability benefits totaling almost $46,000 to a friend, Jacqueline Crawford of Gulfport, Mississippi. Ware and Crawford were not entitled to receive the money.
Ware also admitted that, at his direction, Crawford then kicked back more than $13,000 to Ware, usually through the use of Walmart2Walmart money transfers. Crawford pleaded guilty in February 2017, to an information charging her with a single count of theft of government property related to the scheme, and is awaiting sentencing.
The Department of Veterans Affairs Office of Inspector General investigated the case. Trial Attorneys Richard B. Evans and Rebecca Moses of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Department of Energy Subcontractor Sentenced for Conspiring to Defraud DOE and IRSRead the Press Release
KNOXVILLE, Tenn.- On January 22, 2018, Joseph Anthony Armes, II, 38, of Petros, Tennessee, was sentenced by the Honorable Thomas W. Phillips, Senior U.S. District Judge, to serve 12 months and one day in prison for conspiring to defraud the U.S. Department of Energy (DOE) and the Internal Revenue Service (IRS). He will be also be supervised by the U.S. Probation Office for a period of three years following his release from prison.
Armes formerly operated Transportation, Operations, and Professional Services (TOPS) and several other businesses in east Tennessee. In April 2011, DOE awarded UCOR the prime contract for the clean-up of the former K-25 Plant, which was being developed as the East Tennessee Technology Park (ETTP) in Oak Ridge, Tennessee. UCOR awarded TOPS a $24 million subcontract for waste transportation services to the ETTP project in June 2011. The plea agreement for Armes, which is on file with U.S. District Court, detailed how he channeled payments to the son of UCOR’s President from TOPS and other businesses operated by Armes through an elaborate system of false invoices and cash payments from June 2011 through July 2013. TOPS had represented to DOE that it did not have an organizational conflict of interest with UCOR.
Armes also conspired with a tax preparer, Roger Beu, and others to submit false tax forms to the IRS to reduce federal taxes that he owed to the IRS for tax years 2007 through 2012. This resulted in a tax loss of over $1.4 million to the IRS. As part of the sentence, Judge Phillips ordered Armes to repay the IRS more than $2.3 million, which includes interest and penalties on the $1.4 million tax loss.
J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee stated, “In addition to pursuing tax fraud, the U.S. Attorney’s Office is committed to enforcing federal laws aggressively to ensure compliance and transparency in federal government contracting and subcontracting.”
"Today's sentencing again emphasizes the IRS and U.S. Attorney’s Office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system." said Christopher Altemus, Acting Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office. “Everyone has a responsibility for filing correct and accurate tax returns, and this sentence should send a clear message: schemes to evade the payment of taxes are a violation of the federal tax laws and the consequences of such schemes can and will result in jail time.”
The investigation was conducted by IRS-Criminal Investigation, U.S. Department of Energy’s Office of Inspector General, and Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Morris represented the United States.
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Former Breaux Bridge police officer pleads guilty to receiving child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced today that a former Breaux Bridge Police officer pleaded guilty to receiving sexually explicit images.
Craig David Jr., 29, of Breaux Bridge, La. pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of receiving child pornography. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks. According to the guilty plea, David received child pornography starting in January 2017 using an electronic device.
David faces up to 20 years in prison, a lifetime of supervised release and a $250,000 fine.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Florence Man Pleads to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Jackie Tyrell Kennedy, age 24, of Florence, plead guilty today in federal court to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Chief United States District Judge Terry L. Wooten, of Columbia, accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court established on October 13, 2017, agents of the Federal Bureau of Investigation, along with officers and deputies from the Columbia Police Department, the Richland County Sheriff’s Department and the Lexington County Sheriff’s Department executed a sting operation as part of “Operation Cross County,” targeting human sex trafficking. While investigating sex trafficking at a Columbia motel, agents encountered Kennedy, who fled on foot and dropped a Cobra .380 caliber handgun along the way. Agents were able to locate the firearm and also additional ammunition, which belonged to Kennedy.
Kennedy is prohibited under federal law from possessing firearms and ammunition based upon his August 2017 Virginia conviction for possession of ecstasy.
Kennedy faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge.
The case was investigated by the Federal Bureau of Investigation (FBI), the Columbia Police Department, the Richland County Sheriff’s Department, and the Lexington County Sheriff’s Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
Project Ceasefire is South Carolina’s continued application 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.
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Federal Jury Convicts Cumberland County Men of Drug and Money Laundering OffensesRead the Press Release
ELIZABETH CITY – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that on Saturday, January 20, 2018, LEMONT JERRONE WEBB, a Godwin, NC resident, and HARRY MYLES, SR., a Dunn, NC resident, were convicted following a four-day jury trial before United States District Judge Terrence W. Boyle. The jury found WEBB guilty of drug conspiracy, money laundering conspiracy, possession with intent to distribute cocaine base (crack), and several money laundering offenses. MYLES was found guilty of money laundering offenses.
The evidence at trial showed that WEBB operated a drug house in Godwin, NC, and placed property in the name of others to conceal the assets from law enforcement. On June 5, 2015, law enforcement conducted a federal search warrant at WEBB’s residence in Godwin, NC and located over 28 grams of crack cocaine. The jury found that during the course of the drug conspiracy, over five (5) kilograms of cocaine and over two-hundred and eighty (280) grams of cocaine base (crack), were attributable to WEBB.
The investigation of this case was conducted by the Cumberland County Sheriff’s Office, the Drug Enforcement Administration (DEA), and the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney Lawrence J. Cameron represented the government in this case.
Federal Inmate Sentenced for Drug and Weapon PossessionRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Rahshim Carter, an inmate at the federal prison in Berlin, New Hampshire, was sentenced yesterday to 18 months after pleading guilty to possessing Suboxone and a homemade weapon known as a shank. The sentence will run consecutive to his current sentence for being a felon in possession of a weapon.
Pleadings filed with the court and statements made at the sentencing hearing established that staff at FCI-Berlin were conducting a health and sanitation check at the prison on November 24, 2016. When they opened Carter’s cell, the staff smelled smoke. Carter exited his cell and immediately tried to evade the prison staff by running around the second tier of the unit and jumping to the first tier. Prison staff eventually subdued Carter and a search found the homemade weapon and a quantity of Suboxone, which is a controlled substance.
The case was investigated by the staff at the Bureau of Prisons, FCI-Berlin. Assistant United States Attorney Donald Feith prosecuted the case.
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FBI Releases Preliminary 2017 Data on Crime in the United StatesRead the Press Release
The Federal Bureau of Investigation today released the 2017 Preliminary Semiannual Uniform Crime Report, a part of the FBI’s Uniform Crime Reports (UCR). The report, which covers January-June 2017, suggests that the violent crime increases that occurred in 2015 and 2016 may have begun to level off. The number of violent crimes decreased by 0.8 percent nationwide in the first half of 2017 when compared with the same period in 2016. The nationwide violent crime rate (the number of violent crimes per 100,000 people in the U.S.) increased by a total of nearly 7 percent during 2015 and 2016, (3.3 percent and 3.4 percent, respectively), the largest two increases in a quarter of a century.
“When President Trump took office, he ordered the Department of Justice to prioritize the reduction of violent crime, and that is what we have done every day since,” Attorney General Jeff Sessions said. “Last year, we charged more defendants with violent crime offenses than in any year in decades. We convicted hundreds of human traffickers, arrested thousands of violent gang members, and charged hundreds of people suspected of contributing to our opioid abuse epidemic. Working with our state, local, and tribal law enforcement partners, we are making a difference and protecting our communities. These data are encouraging, because it is essential that drastic increases in violent crime not become the new normal. We are dedicated to ensuring they do not.”
The data released by the FBI today also show that murders increased by 1.5 percent nationwide during the first six months of 2017, compared with the same period in 2016. This suggests a significant leveling off of the previous increase. In the first half of 2016, murders increased by 5.2 percent. Other categories of violent crime, including rape, robbery, and aggravated assault, all decreased in the first half of 2017 (by 2.4 percent, 2.2 percent, and 0.1 percent, respectively). All three categories increased during the same period in 2016. The FBI’s 2017 Preliminary Semiannual Uniform Crime Report is based on information received by the FBI from 13,033 law enforcement agencies nationwide.Elderly Florida Man Charged with Armed Bank RobberyRead the Press Release
TUCSON, Ariz. – Robert Francis Krebs, 75, of Daytona Beach, FL., was arrested on Jan. 13, 2018 and subsequently charged by complaint with bank robbery with the use of a dangerous weapon.
The complaint alleges that Krebs executed a bank robbery at Pyramid Federal Credit Union in Tucson, Ariz. Krebs approached the teller counter and orally demanded from two bank tellers all of their money and not to use any alarms. He placed a black handgun, later identified as a BB gun, on top of a small black bag with the handgun pointed at the bank tellers’ torso. The tellers gave Krebs money (including bait money) totaling over $8000. Bank tellers described the robber as wearing large brown-rimmed reading glasses and wearing a sport coat. The Tucson Police Department received information the following day of the location of a man who fit the description of the robber, and Krebs was subsequently arrested. A subsequent search of Krebs’ hotel room resulted in the recovery of bait money and a black BB gun, similar to the one used in the bank robbery.
At the initial appearance/detention hearing held today, the court ordered that Krebs remain detained in custody
A conviction for bank robbery with the use of a dangerous weapon carries a maximum penalty of 25 years of imprisonment and a $250,000 fine.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation in this case was conducted by the Tucson Police Department and the Federal Bureau of Investigation. The prosecution is being handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: Mag#-18-MJ-02822M
RELEASE NUMBER: 2018-005_Krebs
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
El Salvador man indicted on reentry of a removed alien chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – An El Salvador man was indicted today by a federal grand jury on a reentry of a remove alien charge, United States Attorney Bill Powell announced.
Norman Enrique Rodriguez, age 37, was indicted on one count of “Reentry of a Removed Alien.” Rodriguez, having been removed as an illegal alien from the United States in 2011, is accused of being in Jefferson County, West Virginia on January 12, 2018.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.El Departamento de Justicia Resuelve una Denuncia de Discriminación Relacionada con la Inmigración contra una Empresa de OhioRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Omnicare, Inc. («Omnicare»), una empresa filial de propiedad total de CVS Health Corporation que brinda servicios de farmacia para cuidados a largo plazo en Ohio. El acuerdo resuelve la investigación del Departamento para determinar si la empresa había vulnerado la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
La investigación del Departamento, la cual se inició como respuesta a una denuncia de un trabajador, reveló que Omnicare había discriminado a un postulante con autorización para trabajar por motivos de su estatus de ciudadanía al negarse a referirlo al director de contratación para una entrevista porque no era residente permanente o ciudadano de los EE. UU. y al eliminarlo del grupo de candidatos debido a su estatus como asilado. La disposición antidiscriminatoria de la INA prohíbe que los empleadores discriminen a asilados por motivos de su estatus migratorio o de ciudadanía, a no ser que cuenten con la autorización de la ley para hacerlo.
Conforme con el acuerdo, Omnicare pagará la sanción civil máxima para un caso de discriminación por motivos de estatus de ciudadanía, publicará notificaciones para informar a los trabajadores acerca de sus derechos al amparo de la disposición antidiscriminatoria de la INA, capacitará a su personal y contratistas y se someterá a los requisitos de supervisión y declaración del Departamento durante un período de dos años.
«Los empleadores deben asegurar que todos los empleados y contratistas que seleccionen a sus postulantes hayan sido capacitados adecuadamente para evitar que rechacen de manera incorrecta a postulantes autorizados a trabajar por motivos de un estatus migratorio o de ciudadanía protegido», declaró el Fiscal General Adjunto en funciones, John M. Gore, de la División de Derechos Civiles.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Dona Ana County Man Arraigned on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – A federal grand jury has filed an indictment charging Juan Martin Rosales, 48, of Chaparral, N.M., with child pornography offenses, announced by Acting U.S. Attorney James D. Tierney, Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, Sheriff Enrique Vigil of the Dona Ana County Sheriff’s Office, Chief Patrick Gallagher of the Las Cruces Police Department and Sheriff Benny House of the Otero County Sheriff’s Office.
The 18-count indictment charges Rosales with 15 counts of producing child pornography and three counts of possessing child pornography. The indictment alleges that Rosales produced child pornography four times on Sept 28, 2016, and 11 times on Sept. 30, 2016. The indictment further alleges that on Oct. 16, 2017, Rosales possessed child pornography on two micro SD cards and a smartphone. According to the indictment, Rosales committed the crimes in Otero County, N.M.
Rosales was arraigned on the indictment in federal court in Las Cruces, N.M., yesterday and entered a not guilty plea. Rosales has been detained since Oct. 2017, when he was arrested on a criminal complaint. He remains in federal custody pending trial, which has not yet been scheduled.
The criminal complaint filed against Rosales in Oct. 2017, charged him with child exploitation and child pornography offenses, and alleged that Rosales sexually exploited children and received and possessed child pornography from Oct. 2015 through Oct 16, 2017, in Dona Ana County, N.M. According to the complaint, the investigation into Rosales was initiated in April 2017, when Rosales’ neighbors went to the Dona Ana County Sheriff’s Office to report that Rosales allegedly possessed a tablet computer containing child pornography. The complaint further alleged that Rosales used a cellular phone to take photographs of children engaged in sexually explicit conduct. During the execution of a search warrant on Oct. 16, 2017, law enforcement agents allegedly recovered numerous SD cards, cellular phones, a tablet computer and other electronic devices from Rosales’ home, which allegedly contained child pornography.
If convicted of producing child pornography, Rosales faces a statutory mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison. If convicted of possessing child pornography, Rosales faces a maximum penalty of 20 years in federal prison. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations, the Dona Ana County Sheriff’s Office, Las Cruces Police Department and the Otero County Sheriff’s Office. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center tipline at (575) 526-3437.
District Man Sentenced to 14 1/2 Years in Prison for Armed Robberies and Assault with a Dangerous WeaponRead the Press Release
WASHINGTON – Avery Kinney, 25, of Washington, D.C., has been sentenced to 14 ½ years in prison for three armed robberies that he committed in one weekend, in which he robbed two separate transgender women and also robbed a young man whose phone he had arranged to buy through the website OfferUp, announced U.S. Attorney Jessie K. Liu.
Kinney was found guilty by a jury in August 2017 of two counts each of armed robbery and possession of a firearm during a crime of violence, and one count of felony fleeing. The verdict followed a trial in the Superior Court of the District of Columbia. Kinney subsequently pled guilty to one count of assault with a dangerous weapon in connection with a third incident that same weekend. He was sentenced on Jan. 19, 2018, by the Honorable Ronna L. Beck. Upon completion of his prison term, Kinney will be placed on five years of supervised release.
According to the government’s evidence presented at trial, on Friday, Sept. 9, 2016 at about 5 a.m., the victim, a transgender woman, was standing in the unit block of K Street NW when she asked Kinney for a ride. Kinney drove around with her for about five minutes and then pulled the car over. The moment the victim turned her head, Kinney pulled out an imitation firearm and pointed it at her head while demanding her purse. The victim tried to get out of the car with her purse. Kinney then ripped the purse out of her hand, breaking two of her fingernails in the process. Kinney then fled the scene.
Two days later, on Sept. 11, 2016, Kinney again went to K Street and offered a ride to another victim, also a transgender woman. He again drove around with this victim for about five minutes and pulled the car over. Kinney distracted the victim and got her to look out the window, at which point he pulled out an imitation firearm and threatened to shoot her in the head unless she gave him her purse. Kinney again sped off.
Several officers with the Metropolitan Police Department (MPD) responded to the scene and Kinney’s vehicle was soon spotted a few blocks away. A brief car chase ensued, where Kinney ran stop signs and weaved through traffic at a high rate of speed. Kinney fled the scene.
Kinney also pled guilty in September 2017 to one count of assault with a dangerous weapon involving a third crime that he committed that same weekend.
According to the government’s evidence, on Sept. 11, 2016, at about 3 p.m., Kinney arranged to meet the third victim for the purpose of completing a transaction that began on the OfferUp website. When he arrived at the meeting place, in the 500 block of 59th Street NE, Kinney pointed an imitation firearm at the victim, demanded his phone, and threatened to shoot him. Kinney then fled the scene.
Kinney’s car was found weeks later and both the imitation firearm used in all three incidents and the second victim’s metro card were found during the execution of a search warrant. He was arrested on Sept. 27, 2016, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Elizabeth Danello; Liaison and Operations Manager Linda McDonald; Paralegal Specialists Tiffany Fogle and Debra McPherson; Supervisory Paralegal Specialist Lynda Randolph; Criminal Investigators John Marsh and Nelson Rhone, and Victim/Witness Advocates Jennifer Allen and Jennifer Clark. Finally, she commended the work of Assistant U.S. Attorneys Melissa Jackson and Jillian Willis, who investigated, prosecuted, and tried the cases.
District Man Pleads Guilty to Federal Escape Charge, Caught After Failing to Return to Halfway HouseRead the Press Release
WASHINGTON – John Abner Caudle, 40, of Washington, D.C., has pled guilty to a federal escape charge following his arrest last summer by the U.S. Marshals Service after failing to return to a halfway house where he had been placed, announced U.S. Attorney Jessie K. Liu and Robert Turner, United States Marshal for the District of Columbia.
Caudle pled guilty on Jan. 22, 2018, in the U.S. District Court for the District of Columbia. He is to be sentenced on Feb. 26, 2018, by the Honorable Amit P. Mehta.
According to the government’s evidence, Caudle had pled guilty in March 2013 in the U.S. District Court for the District of Columbia to a drug offense. In February 2015, upon a finding that Caudle violated the terms of his supervised release, the Honorable Reggie B. Walton sentenced him to a year of imprisonment. The latter part of that sentence was to be served in a halfway house in Southeast Washington. On Sept. 1, 2015, Caudle started his halfway house placement. As a resident of the facility, he was allowed to leave the center in order to go to work. On Nov. 7, 2015, Caudle left the facility, purportedly for work, and did not return.
Per protocol, halfway house staff members contacted area hospitals, law enforcement authorities and the emergency contact number that the defendant provided at the time of his administrative processing into the facility. They determined that he had not been hospitalized or arrested, or was otherwise unable to return to the halfway house. All such checks returned negative, and so Caudle was placed on escape status and a warrant was issued for his arrest.
In August of 2017, members of the U.S. Marshals Service learned that Caudle was involved in a motor vehicle accident. That information led to Caudle being tracked to a hotel in the 1700 block of New Hampshire Avenue NW, in downtown Washington. He was arrested there on Aug. 17, 2017, and has remained in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Marshal Turner commended the work of those who captured Caudle after his escape. They expressed appreciation for the efforts of those who worked in the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeannette Litz and Teesha Tobias and Assistant U.S. Attorney Lisa Walters for their valuable efforts in the prosecution of this case, and Assistant U.S. Attorneys Emory V. Cole, who prosecuted the case.
Defendant Pleads Guilty in Scam Targeting Homeowners Facing ForeclosureRead the Press Release
KANSAS CITY, KAN. B A Missouri man pleaded guilty Monday to charges he and his accomplices swindled homeowners facing foreclosure with false promises to help them save their homes, U.S. Attorney Tom Beall said.
Tyler Korn, 28, St. Ann, Mo., pleaded guilty to one count of conspiracy to commit wire and mail fraud. In his plea, he admitted he and co-defendants used the address of a UPS store in Overland Park, Kan., to form Reliant Home Financial Group, a company they operated out of the St. Louis metro area.
The indictment alleges the defendants took money from victims and fraudulently promised to:
- Lower their interest rates.
- Lower their monthly payments.
- Help them obtain loan modifications.
When victims received foreclosure notices, the defendants advised them not to worry about it.
Other defendants include:
Amjad Daoud, 33, Lutz, Fla., who is awaiting trial.
Ruby Price, 73, Bonner Springs, Kan., who is awaiting sentencing.
Korn will be scheduled for sentencing later. He faces up to 20 years in federal prison and a fine up to $1 million on each count. Beall commended the U.S. Department of Housing and Urban Development - Office of Inspector General, the Federal Housing Finance Agency - Office of Inspector General, the Johnson County District Attorney’s Office, Special Assistant U.S. Attorney Emilie Burdette and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Corpus Christi Man Convicted of Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 54-year-old Corpus Christi man has admitted he possessed child pornography, announced U.S. Ryan K. Patrick.
In February 2017, authorities were investing a file sharing program, during which they identified a computer as a potential source of at least 41 files of known images of child pornography. That computer was later linked to Jose Ivan Davila.
The next month, law enforcement executed a search warrant at his residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 296 images and approximately 260 videos child pornography. Two of those videos included images of young girls, approximately nine and 11 years of age, performing oral sex on an adult male.
Today, Davila admitted he reviewed and collected child pornography.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for April 17, 2018. At that time, Davila faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Davila also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Davila has been and will remain in custody pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which 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."
Convicted Sex Offender Arrested for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 61-year-old Corpus Christi man has been charged with possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Authorities took Rogelio Castaneda into custody today. He is expected to make his initial appearance before U.S. Magistrate Judge B. Janice Ellington at 2:00 p.m.
The investigation into Castaneda began after authorities discovered he had allegedly uploaded images of child pornography to his email accounts. The criminal complaint indicates Castaneda had a prior conviction related to child pornography and, as such, is required to register as a sex offender. However, he had allegedly failed to do so and was taken into custody in February 2017.
According to the charges, law enforcement seized several digital devices at the time of his arrest which led to the discovery of approximately 14 images and 470 videos of child pornography.
If convicted, Castaneda faces a minimum of 10 and up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Cleveland Heights man sentenced to more than three years in prison and ordered to pay nearly $900,000 for tax crimesRead the Press Release
A Cleveland Heights man was sentenced to more than three years in prison for preparing false tax returns and making false statements to law enforcement, said U.S. Attorney Justin E. Herdman and Ryan L. Korner, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation’s Cincinnati office.
Immanuel Roddy, 35, was sentenced to 42 months in prison and ordered to pay $892,902 in restitution to the IRS by U.S. District Judge Donald C. Nugent.
Roddy operated a tax preparation called Roddy Solutions. He referred to himself in advertising materials as “Tax Beast” and obtained tax documents from clients, according to court documents.
Roddy prepared false tax returns for his clients in which he claimed false tax credits or false business expenses, according to court documents.
“With the sentenced handed down today, the self-proclaimed 'Tax Beast' has been tamed,” Korner said. “This sentence is also a reminder that all tax professionals have to respect the law and protect the interests of their clients and the taxpaying public.”
This case is being prosecuted by Assistant U.S. Attorneys Matthew Kall and Elliot Morrison following an investigation by IRS-CI.
Citizen of Dominican Republic Sentenced to 63 Months in Prison for Heroin TraffickingRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Jose De La Altagracia Pimentel Lara, a/k/a Luis Colon. a/k/a Jose Pimentel, a/k/a Todolindo, a/k/a El Lindon. a/k/a Lindy, 26, of the Dominican Republic, was sentenced to serve 63 months in federal prison for participating in a heroin trafficking conspiracy.
Documents filed with the court established that Pimentel Lara participated in a drug trafficking organization that distributed heroin in Massachusetts and New Hampshire between July 2016 and September 2016. While participating in the conspiracy, the defendant obtained heroin from the drug trafficking organization and delivered it to his customers.
The defendant previously pleaded guilty on September 8, 2017, to conspiracy to distribute, and to possess with the intent to distribute, heroin.
“The drug problem in New Hampshire is worsened by those who seek to profit from the addictions of others,” said Acting U.S. Attorney Farley. “We will continue to work closely with our law enforcement partners to identify and prosecute those who are responsible for distributing the drugs that are endangering our community.”
“Those suffering from the disease of opioid addiction need access to treatment and recovery,” said Drug Enforcement Administration (DEA) Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like heroin to the citizens of New Hampshire need to be held accountable for their actions. DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
The prosecution of Pimentel Lara was part of a larger DEA investigation seeking to combat heroin distribution in New Hampshire. Other defendants also have been convicted for their involvement in this drug trafficking organization. Alberto Guerrero Marte, 38, received a 15-year sentence, Toribio Guerrero Marte, 32, received a 10-year sentence, Allison DeJesus, 19, received a sentence of five years of probation, Jonaly DeJesus, 22, received a sentence of time served and five years of supervised release, and Allan Raymond Pimentel, 21, received a sentence of 57 months in prison. Alfredo Gonzalez, 51, Michell DeJesus, 34, Maria Miguelina Lara Lara, 33, Santo Rodolfo Garcia Mendez, 33, Wilkin Andres Beltre Arias, 39, and Edward Garcia, 31, are all awaiting sentencing. In a related case, Mark Gagnon, 54, of Candia, was sentenced to 48 months in prison.
This matter was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. Assistant United States Attorney Donald Feith prosecuted the case.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Cherokee County Man Sentenced for Unlawful Hazardous Waste DisposalRead the Press Release
WICHITA, KAN. - A Cherokee County man was sentenced Monday to 18 months in prison for unlawful disposal of hazardous waste, U.S. Attorney Tom Beall said.
Jack E. Smith, 37, Scammon, Kan., pleaded guilty to one count of unlawful disposal of hazardous waste. In his plea, he admitted he bought a truck that was loaded with urethane flooring materials, paints and other chemicals. He knew the materials were hazardous and flammable when he bought the truck.
Smith transported the truck to his residence and then to a rural location in Crawford County. Before he had unloaded all the containers, they caught fire. The United States calculated the cost of cleaning up the site at more than $19,000.
Beall commended Environmental Protection Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Chariton Man Sentenced to 70 months in Prison for Drug OffenseRead the Press Release
DES MOINES, Iowa – On January 23, 2018, Jonathan Lee Decker, 28, of Chariton, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 70 months in prison for possession of methamphetamine with intent to distribute, announced United States Attorney Marc Krickbaum. On March 11, 2017, Decker was caught in possession of methamphetamine, as well as a machete with a 12-inch sharpened blade.
This case was investigated by the Chariton, Iowa, Police Department and the Federal Bureau of Investigation. It was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Chalmette Woman Charged with Oklahoma Tornado Disaster FraudRead the Press Release
U.S. Attorney Duane A. Evans announced that TIFFANY RICHARDSON, age 30, of Chalmette, Louisiana, was charged by way of a Bill of Information with one count of disaster relief fraud.
According to the charging document, RICHARDSON applied for disaster assistance from the Small Business Administration following tornadoes that struck Oklahoma in 2013. She falsely claimed that she had a primary residence in an affected area of Oklahoma, when in fact, RICHARDSON lived in Chalmette, which is within the Eastern District of Louisiana.
RICHARDSON faces a sentence of up to thirty (30) years in prison, up to $250,000 in fines, and up to three (3) years of supervised release. The matter has been allotted to U.S. District Judge Susie Morgan.
U.S. Attorney Evans praised the work of the Small Business Administration, Office of Inspector General and the Department of Homeland Security for their investigation of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
California man indicted on firearms and drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – An Antelope, California man was indicted today by a federal grand jury on firearms and drug charges, United States Attorney Bill Powell announced.
Patrick Wayne Grady, age 34, was indicted on one count of “Unlawful Possession of a Firearm,” one count of “Possessing a Firearm During and in Relation to a Drug Trafficking Crime,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Possession with Intent to Distribute Heroin.”
Grady, having previously been convicted of several felonies, is accused of possessing a 9mm pistol, as well as possessing methamphetamine and heroin with the intent of distributing the drugs. The crimes are alleged to have occurred in Berkeley County in February 2016.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The case was investigated by the Berkeley County Sheriff’s Office.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.California Medical Device Company to Pay $7.62 Million to Resolve Allegations that Its Subsidiary Billed TRICARE for Excessive, Unnecessary SuppliesRead the Press Release
The Department of Justice announced today that DJO Global Inc. (DJO), a medical device company headquartered in Vista, California, has agreed to pay $7.62 million to resolve allegations that its subsidiary, Empi Inc. (Empi), a now-defunct medical device company based in Shoreview, Minnesota, submitted false claims to TRICARE for excessive, unnecessary transcutaneous electrical nerve stimulation (TENS) electrodes that TRICARE beneficiaries did not need or use. TENS is a therapy that uses low-voltage electrical current for pain relief.
The settlement resolves allegations that Empi used inappropriate techniques such as “assumptive selling” to persuade some TRICARE beneficiaries to seek and accept unjustifiably large quantities of TENS electrodes from 2010 through 2015, with a particularly steep increase in the number of beneficiaries receiving unnecessary quantities in 2014-2015. Assumptive selling consisted of Empi sales representatives contacting some TRICARE beneficiaries and inducing them to order excessive TENS electrodes by acting as though the beneficiaries had indicated a need for them, when that may not have been the case.
DJO announced its decision to shut down Empi in November 2015, and Empi ceased operations the following month.
“We commend the Defense Health Agency and the Department of Defense Office of Inspector General for analyzing this conduct and working with the Department to guard the integrity of TRICARE, a vital federal health care program that provides medical care and services to those in the military and their families,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
“Service members, veterans, and their families deserve the best available medical care,” said United States Attorney Gregory G. Brooker. “This $7.6 million settlement underscores our commitment to protecting the integrity of federal health care programs and it sends a strong message of accountability to those who would seek to take advantage of those programs.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue the waste, fraud, and abuse of Department of Defense and TRICARE resources,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office.
The settlement is the most recent in the federal government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act, under which this matter was resolved. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by the Civil Frauds Unit of the U.S. Attorney’s Office for the District of Minnesota, the Justice Department’s Commercial Litigation Branch, and the Department of Defense Office of the Inspector General.
The claims settled by this agreement are allegations only; there has been no determination of liability.
California Medical Device Company to Pay $7.62 Million to Resolve Allegations That Its Subsidiary Billed Tricare for Excessive, Unnecessary SuppliesRead the Press Release
WASHINGTON – The Department of Justice announced today that DJO Global Inc. (DJO), a medical device company headquartered in Vista, California, has agreed to pay $7.62 million to resolve allegations that its subsidiary, Empi Inc. (Empi), a now-defunct medical device company based in Shoreview, Minnesota, submitted false claims to TRICARE for excessive, unnecessary transcutaneous electrical nerve stimulation (TENS) electrodes that TRICARE beneficiaries did not need or use. TENS is a therapy that uses low-voltage electrical current for pain relief.
The settlement resolves allegations that Empi used inappropriate techniques such as “assumptive selling” to persuade some TRICARE beneficiaries to seek and accept unjustifiably large quantities of TENS electrodes from 2010 through 2015, with a particularly steep increase in the number of beneficiaries receiving unnecessary quantities in 2014-2015. Assumptive selling consisted of Empi sales representatives contacting some TRICARE beneficiaries and inducing them to order excessive TENS electrodes by acting as though the beneficiaries had indicated a need for them, when that may not have been the case.
DJO announced its decision to shut down Empi in November 2015, and Empi ceased operations the following month.
“We commend the Defense Health Agency and the Department of Defense Office of Inspector General for analyzing this conduct and working with the Department to guard the integrity of TRICARE, a vital federal health care program that provides medical care and services to those in the military and their families,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
“Service members, veterans, and their families deserve the best available medical care,” said United States Attorney Gregory G. Brooker. “This $7.6 million settlement underscores our commitment to protecting the integrity of federal health care programs and it sends a strong message of accountability to those who would seek to take advantage of those programs.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue the waste, fraud, and abuse of Department of Defense and TRICARE resources,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office.
The settlement is the most recent in the federal government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act, under which this matter was resolved. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by the Civil Frauds Unit of the U.S. Attorney’s Office for the District of Minnesota, the Justice Department’s Commercial Litigation Branch, and the Department of Defense Office of the Inspector General.
The claims settled by this agreement are allegations only; there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Cairo Man Pleads Guilty to Assisting in the 2014 Attempted Armed Robbery of First National Bank in Cairo and Other Related CrimesRead the Press Release
Otha Don Watkins, III, 35, of Cairo, Illinois, pled guilty today in United States District Court in Benton to assisting James Nathanial Watts in the May 15, 2014, attempted armed robbery of the First National Bank in Cairo, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. During that attempted robbery, long-time bank employees Anita Grace and Nita Jo Smith were killed and a third employee was seriously injured.
In addition to that crime, Watkins also pled guilty to making false statements to the FBI during the investigation of the attempted bank robbery, possessing a stolen firearm, and conspiring with Watts to commit robberies that interfered with interstate commerce. That conspiracy included both the attempted robbery of the First National Bank and the successful May 2014 armed robbery of over $12,000 from a McDonald’s restaurant in Charleston, Missouri.
James Watts previously pled guilty to the attempted bank robbery and was sentenced in May 2017 to life in prison plus 10 years.
Sentencing for Watkins was set for March 21, 2018. Watkins is already serving a 155 month federal prison sentence relating to the armed robbery of another McDonald’s restaurant in Cape Girardeau, Missouri, in October 2014. Watkins was returned to the custody of the United States Marshal to await sentencing in this case.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Illinois State Police with the assistance of numerous other law enforcement agencies in Illinois and Missouri.
Baltimore Man Pleads Guilty to Forcible Assault on Federal Employee and Brandishing A FirearmRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On January 22, 2018, Idialyon Helm, age 21, of Baltimore, Maryland, pleaded guilty to one count of forcible assault on a federal employee, a United States Postal Service (USPS) letter carrier, and one count of brandishing a firearm in connection with a crime of violence—here, the forcible assault. In connection with his plea agreement, he also specifically admitted to one additional armed robbery, as well as an attempted armed robbery.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; and Commissioner Darryl De Sousa of the Baltimore Police Department.
According to his plea agreement, on December 29, 2016, at between 10:00 and 10:15 AM, Helm robbed a USPS letter carrier at gunpoint while the letter carrier was on his route in the 3100 block of Chesterfield Avenue in Baltimore City, Baltimore, Maryland, 21213, taking the victim’s wallet and smart watch, among other things.
Helm was indicted for forcible assault on a federal employee and brandishing a firearm in connection with a crime of violence. In pleading guilty to those charges, Helm also acknowledged that he committed two other robberies/attempted robberies just days before the robbery of the letter carrier. According to his plea agreement, on December 25, 2016, at approximately 1:30 in the afternoon, Helm approached a male victim outside of a convenience store on Caton Avenue in Baltimore, pointed a silver handgun at him, and stole his shoes—a pair of Ugg Boots. Later that afternoon, Helm also attempted to rob a female victim at an M&T Bank ATM on Belair Road in Baltimore. He approached her, pointed a silver handgun at her, and said “Give me what you got.” In response, she fled and observed Helm get into a silver Infiniti SUV and drive away.
Helm and the government have agreed that if the Court accepts the parties’ plea agreement Gregg will be sentenced to a total of 10 years in prison for the forcible assault and for brandishing a firearm. U.S. District Judge Richard D. Bennett has scheduled sentencing for March 19, 2018 at 3:00 p.m. Helm remains detained pending sentencing.
Acting United States Attorney Stephen M. Schenning commended the United States Postal Inspection Service and the Baltimore City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Riley and Judson Mihok who are prosecuting the case.
Assistant Attorney General Makan Delrahim Meets with Students from Communities in Schools of AtlantaRead the Press Release
On Wednesday, January 17, 2018, Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division, along with Principal Deputy Assistant Attorney General Andrew Finch and Chief of Staff John Elias, met with high school students participating in dropout prevention organization Communities In Schools of Atlanta. The group discussed overcoming obstacles and achieving their goals.
“These impressive students are already on the road to achieving great things,” said Assistant Attorney General Delrahim. “Their stories inspired me, and I was grateful for the chance to share my experiences with them. I applaud the critical work that Communities In Schools and my friend and former colleague Frank Brown are doing.”
The Communities In Schools contingent also toured the White House, the Supreme Court, and the National Museum of African American History and Culture on its trip to Washington.
About Communities in Schools of Atlanta
Communities In Schools (CIS) of Atlanta, established in 1972, is dedicated to doing whatever it takes to help students succeed in school and achieve in life. Operating in more than 62 schools, mainly in Atlanta Public Schools, as well as Clayton County Public Schools, DeKalb County Schools and Fulton County Schools, CIS of Atlanta supports more than 36,000 students and their families in the 2016-2017 academic year. Based directly inside the schools, CIS of Atlanta connects students and their families to basic and critical educational and community-based resources, tailored to each student’s specific needs. Its Chief Executive Officer is Frank Brown, who has extensive experience with community organizations and on Capitol Hill.
CIS Atlanta runs “Real Talk about the Law.” This program is designed to reach young men in high school, encourage high school and post-secondary education, strengthen relationships between law enforcement and the community, and expose young men to positive career role models. The series has hosted prosecutors from the United States Attorney’s Office to discuss the realities of African-American boys’ and young men’s interactions with law enforcement.
Alaska Man Sentenced for Attempting to Solicit Sex from MinorRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Alaska man was sentenced in federal court in Anchorage for using the internet to attempt to solicit sex from a minor.
Herbert Barr, 51, who resided in a rural Alaska village, was sentenced today by U.S. District Judge Sharon L. Gleason, to serve 10 years in federal prison, followed by a 20-year term of supervised release. Barr previously pleaded guilty on Oct. 25, 2017, to attempted sexual exploitation of a minor – coercion and enticement of a minor.
According to court documents, over the course of about one week in July 2017, Barr sent numerous text messages to a minor trying to persuade her to allow him to sexually abuse her. After rejecting Barr’s offer, the minor promptly notified her parents, who then contacted the Alaska State Troopers at the Nome Post.
The Alaska State Troopers began investigating Barr, who continued to send dozens of text messages trying to persuade the minor to allow him to perform illegal sexual acts. Barr went so far as offering money and suggesting she meet him outside his home. Law enforcement officers swiftly prevented Barr from completing the sex abuse he tried to commit because of the minor’s prompt report to her parents.
At the sentencing hearing, the Court heard from the victim, her mother, and the Bering Straits Native Corporation, which spoke on behalf of the community. Judge Gleason found the offense to be particularly serious because Barr had offered the minor money in exchange for sex.
U.S. Attorney Schroder commends the Alaska State Troopers, in particular the Nome Post and the Technical Crimes Unit, the Federal Bureau of Investigation, and the Nome District Attorney’s Office for the investigation and assistance leading to the successful prosecution of this case.
A South Florida Resident Sentenced to More Than 5 Years in Prison for Stolen Identity Fraud Schemes and Filing False Tax ReturnsRead the Press Release
A South Florida resident was sentenced to 70 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $507,495.28 for his participation in stolen identity tax fraud, a social security fraud scheme, and filing false tax returns.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), made the announcement.
Stanley Joseph Laratte previously pled guilty to one count of receiving stolen government funds, one count of aggravated identity theft, and one count of filing a false income tax return, in violation of Title 18, United States Code, Sections 641 and 1028A(a)(1) and Title 26, United States Code, Section 7206(1).
According to court documents, between June 2011 and August 2015, Laratte filed approximately 600 fraudulent income tax returns with the IRS claiming approximately $1.25 million in refunds that were to be deposited into various bank accounts owned and/or controlled by the defendant. Many of the returns were filed in the names of deceased individuals or in the names of individuals who had their identities otherwise compromised. Ultimately, the IRS denied most of the claimed refunds and only deposited approximately $200,000 into Laratte’s accounts.
Between September 2015 and July 2017, the defendant accessed various Social Security Administration (SSA) accounts for at least two dozen SSA beneficiaries by using their personal identifiers without their knowledge or authorization. Laratte diverted approximately $302,000 of the beneficiaries' monthly retirement benefits onto Green Dot debit cards possessed and used by the defendant.
In June 2015 and August 2016, Laratte created and filed fraudulent personal income tax returns in his own name for the tax years 2014 and 20l5. He created and submitted phony Form W -2s to the IRS in support of these returns. When offset by various credits and deductions, these fraudulent returns generated approximately $16,000 in refunds, which were deposited into the defendant's bank account.
Mr. Greenberg commended the investigative efforts of IRS-CI and SSA-OIG. This case was prosecuted by Assistant U.S. Attorney Jon Milton Juenger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
58th Defendant Sentenced on Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the ATF concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 84 of these defendants have been convicted, including 83 who have entered guilty pleas, and 57 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Today, Davon Johnson, 44, a resident of Albuquerque, N.M., was sentenced to 60 months of imprisonment for his methamphetamine trafficking conviction. Johnson will be on supervised release for three years after completing his prison sentence.
Johnson was arrested on July 6, 2016, on an indictment charging him with distribution of MDMA on June 9, 2016, in Bernalillo County, N.M. On July 17, 2017, Johnson pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Johnson admitted that on June 9, 2016, he sold approximately 100 pills containing methamphetamine to another individual in exchange for money.
Sixteen of the defendants charged as the result of the ATF investigation have entered not guilty pleas. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. Two defendants are fugitives and the charges against two defendants have been dismissed.
This case was investigated by the Albuquerque office of ATF and is being prosecuted by Assistant U.S. Attorney Presiliano Torrez.
5 Former KPMG Executives and PCAOB Employees Charged in Manhattan Federal Court for Fraudulent Scheme to Steal Valuable and Confidential PCAOB Information and Use That Information to Fraudulently Improve KPMG Inspection ResultsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service, announced the unsealing yesterday of an Indictment in Manhattan federal court charging DAVID MIDDENDORF, THOMAS WHITTLE, and DAVID BRITT, former executives of accounting firm KPMG LLP (“KPMG”), CYNTHIA HOLDER, a former employee of KPMG and the Public Company Accounting Oversight Board (the “PCAOB”), and JEFFREY WADA, a former employee of the PCAOB, with conspiracy and wire fraud charges in connection with their scheme to defraud the Securities and Exchange Commission (the “SEC”) and the PCAOB by obtaining, disseminating, and using confidential lists of which KPMG audits the PCAOB would be reviewing so that KPMG could improve its performance in PCAOB inspections. MIDDENDORF was arrested yesterday morning in Marietta, Georgia, and was presented before a Magistrate Judge in Atlanta. HOLDER was taken into custody yesterday morning in Houston, Texas, and presented before a Magistrate Judge in Houston. WADA was arrested yesterday morning in Tustin, California, and presented before a Magistrate Judge in Santa Ana. WHITTLE was arrested yesterday morning in Gladstone, New Jersey. BRITT surrendered yesterday morning in New York, New York. WHITTLE and BRITT were presented and arraigned before Magistrate Judge Andrew J. Peck in Manhattan federal court. The case is assigned to U.S. District Judge John Paul Oetken.
BRIAN SWEET pled guilty to conspiracy and wire fraud charges in connection with this scheme before Magistrate Judge Robert W. Lehrburger on January 5, 2018. The Information to which Sweet pled guilty was also unsealed yesterday. His case is assigned to U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Geoffrey S. Berman said: “These defendants were each meant to be the watchmen of our financial system. The defendants who formerly worked for KPMG were vested with the responsibility to audit publicly filed financial statements and issue audit opinions relied upon by the investing public. The defendants who formerly worked for the PCAOB were supposed to help ensure the quality of the work behind those audits. But, as alleged, these defendants chose to cheat the system and to undermine the safeguards put in place to protect investors. We will work tirelessly with our law enforcement partners to root out corruption like this wherever it is found.”
Inspector-in-Charge Philip R. Bartlett said: “As alleged, the defendants took advantage of confidential information stolen from the PCAOB and used it to tip off KPMG partners of impending audit inspections. This undermined the overall integrity of the program. The PCAOB was created by Congress as part of the Sarbanes Oxley Act to reduce accounting scandals but, in this case, certain former employees and KPMG insiders created their own corruption scandal. The Postal Inspection Service stands committed to helping to ensure the integrity of information that affects the marketplace.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
The PCAOB is a nonprofit corporation overseen by the SEC that inspects the audit work performed by registered accounting firms (“Auditors”) with respect to the financial statements of publicly traded companies (“Issuers”). The PCAOB inspects the largest U.S. accounting firms on an annual basis. As part of the inspection process, the PCAOB chooses a selection of audits performed by the accounting firm for a closer review. Until shortly before an inspection occurs, the PCAOB does not disclose which audits are being inspected, or the focus areas for those inspections, because it wants to ensure that an Auditor does not perform additional work or modify its work papers in anticipation of an inspection. Following the completion of an inspection, the PCAOB issues an Inspection Report containing any negative findings or “comments” with respect to both the specific audits reviewed and the accounting firm more generally. The PCAOB transmits these Inspection Reports to the SEC, which utilizes them in carrying out its agency functions.
KPMG is one of the largest accounting firms in the world. In recent years, KPMG fared poorly in PCAOB inspections and in 2014 received approximately twice as many comments as its competitor firms. By at least in or about 2015, KPMG was engaged in efforts to improve its performance in PCAOB inspections, including but not limited to recruiting and hiring former PCAOB personnel such as SWEET. At the time, MIDDENDORF was head of KPMG’s Department of Professional Practice (the “DPP”), which was broadly responsible for the quality of KPMG’s audits and KPMG’s performance in PCAOB inspections. BRITT was a partner in the audit group within the DPP and WHITTLE was head of the inspections group within the DPP.
KPMG’s efforts to improve inspection results, however, were not limited to legitimate means. Instead, between 2015 and 2017, MIDDENDORF, WHITTLE, BRITT, HOLDER, WADA, and SWEET worked to illicitly acquire valuable confidential PCAOB information concerning which KPMG audits would be inspected, in an effort to game the system and improve inspection results. For example, beginning in SWEET’s first week of employment at KPMG in 2015, MIDDENDORF, WHITTLE, and BRITT began asking SWEET for confidential PCAOB information about which KPMG audits would be inspected by the PCAOB that year.
MIDDENDORF told SWEET to remember where his paycheck came from and to be loyal to KPMG, while WHITTLE told SWEET that he was most valuable to KPMG at that moment and would soon be less valuable. As requested, SWEET shared the PCAOB’s confidential 2015 list of inspection selections. Shortly thereafter, SWEET helped his former PCAOB colleague, HOLDER, get a job at KPMG, where she reported to SWEET. During the pendency of her efforts to obtain employment at KPMG, HOLDER – in violation of PCAOB Rules – continued to work on KPMG inspections at the PCAOB. Once she secured a job at KPMG, HOLDER, like SWEET before her, stole valuable confidential information on her way out of the PCAOB and then passed it on to SWEET, her new boss at KPMG.
In March 2016, HOLDER obtained the PCAOB’s confidential 2016 inspection selections for KPMG from WADA, who was still working at the PCAOB but who had recently been passed over for a promotion. WADA – who was not responsible for KPMG inspections at the PCAOB
– accessed and stole valuable confidential information from the PCAOB and passed it on to HOLDER. HOLDER, in turn, provided the 2016 inspection selections to SWEET, who passed them to MIDDENDORF, WHITTLE, and BRITT. MIDDENDORF, WHITTLE, BRITT, and SWEET then agreed to launch a stealth program to “re-review” the audits that had been selected. In order to cover up their illicit conduct, BRITT gave other KPMG engagement partners a false explanation for the re-reviews. The stealth re-review program allowed KPMG to double-check its audit work, strengthen its work papers, and, in some cases, identify deficiencies or perform new audit work that had not been done during the live audit.
In January 2017, WADA, who had again been passed over for promotion at the PCAOB, again stole valuable confidential PCAOB information, misappropriating a preliminary list of confidential 2017 inspection selections for KPMG audits and passing it on to HOLDER. At the same time, WADA provided HOLDER with his resume and sought her assistance in helping him to acquire employment at KPMG. SWEET shared the preliminary inspection selections provided by WADA with WHITTLE and BRITT, while noting that the information was only preliminary. WHITTLE’s response was to ask SWEET to confirm that they would get the final list as well.
In February 2017, WADA texted HOLDER saying “I have the grocery list. . . . All the things you’ll need for this year.” WADA then spoke to HOLDER and provided her with the full confidential 2017 final inspection selections. HOLDER again shared the stolen information with SWEET, who shared it with MIDDENDORF, WHITTLE, and BRITT. MIDDENDORF, WHITTLE, BRITT, and SWEET agreed to inform engagement partners on the list so that extra attention could be paid to these audits in light of the forthcoming PCAOB inspections.
In 2017, a KPMG partner who received early notice that his/her engagement was on the confidential 2017 inspection list reported the matter, as a result of which KPMG’s Office of General Counsel launched an internal investigation. Thereafter, HOLDER and SWEET took a number of steps to destroy or fabricate evidence relevant to the investigation. For example, HOLDER deleted a number of relevant text messages, emails, and documents, and said she was going to purchase a “burner phone” so her conversations could not be monitored. Similarly, SWEET burned evidence of the 2017 inspection list and provided a falsified version of the list to KPMG counsel.
Count One of the Indictment charges MIDDENDORF, WHITTLE, BRITT, HOLDER, and WADA with participating in a conspiracy to defraud the United States. Count Two charges MIDDENDORF, WHITTLE, BRITT, HOLDER, and WADA with participating in a conspiracy to commit wire fraud. Count Three charges MIDDENDORF, WHITTLE, and BRITT with wire fraud. Counts Four and Five charge MIDDENDORF, WHITTLE, BRITT, HOLDER, and WADA with wire fraud.
* * *
Set forth below is a chart containing the names, ages, residences, charges, and maximum penalties for the defendants. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and also thanked the Securities and Exchange Commission, which has brought an administrative proceeding against the defendants. Mr. Berman also thanked Trial Attorney Heidi Boutros Gesch of the Department of Justice’s Public Integrity Section for her assistance in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Amanda Kramer, and Jessica Greenwood are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
DEFENDANT
AGE
RESIDENCE
CHARGES
MAXIMUM PENALTY
DAVID MIDDENDORF
53
Marietta, Georgia
Conspiracy to
defraud the United States;
Conspiracy to
commit wire fraud;
Wire fraud (three counts)
85 years in prison
THOMAS WHITTLE
54
Gladstone, New Jersey
Conspiracy to
defraud the United States;
Conspiracy to
commit wire fraud;
Wire fraud (three counts)
85 years in prison
DAVID BRITT
54
New Canaan, Connecticut
Conspiracy to
defraud the United States;
Conspiracy to
commit wire fraud;
Wire fraud (three counts)
85 years in prison
CYNTHIA HOLDER
51
Jersey Village, Texas
Conspiracy to
defraud the United States;
Conspiracy to
commit wire fraud;
Wire fraud (two counts)
65 years in prison
JEFFREY WADA
42
Tustin, California
Conspiracy to
defraud the United States;
Conspiracy to
commit wire fraud;
Wire fraud (two counts)
65 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
2 Men Charged with Conspiring to Illegally Obtain Technology and Computer Chips That Were Sent to ChinaRead the Press Release
Federal authorities arrested Yi-Chi Shih, 62, and Kiet Ahn Mai, 63, on Jan. 19, on federal charges that allege a scheme to illegally obtain technology and integrated circuits with military applications that were exported to a Chinese company without the required export license.
The announcement was made by Acting Assistant Attorney General for National Security Dana J. Boente; U.S. Attorney Nicola T. Hanna for the Central District of California; Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office; Special Agent in Charge R. Damon Rowe of IRS Criminal Investigation; Special Agent in Charge Richard Weir of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Los Angeles Field Office.
“According to the complaint, the defendants allegedly schemed to illegally export semiconductors having military and civilian applications to a Chinese company,” said Acting Assistant Attorney General Boente. “Protecting this type of technology and preventing its illegal acquisition by our adversaries remains a key priority in preserving our national security.”
“This case outlines a scheme to secure proprietary technology, some of which was allegedly sent to China, where it could be used to provide companies there with significant advantages that would compromise U.S. business interests,” said U.S. Attorney Hanna. “The very sensitive information would also benefit foreign adversaries who could use the technology to further or develop military applications that would be detrimental to our national security.”
“The FBI, working jointly with our law enforcement partners, remains committed to bringing to justice those who seek to illegally export some of our nation’s most sensitive technologies to the detriment of our national security and hard-working United States companies,” said Assistant Director in Charge Delacourt. “Rest assured, the FBI will continue to diligently pursue any and all leads that involve the illegal exportation of U.S. technology which will cause harm to our long-term national security interests.”
“Today’s actions serve as a reminder that the government will hold individuals accountable who fraudulently procure and export unlawfully protected United States technology and attempt to conceal their criminal activity through international money laundering,” said Special Agent in Charge Rowe. “The IRS plays an important role in tracing illicit funds through both domestic and international financial intuitions. The IRS is proud to partner with the FBI and Department of Commerce and share its world-renowned financial investigative expertise in this investigation.”
“Today’s arrests demonstrate the Office of Export Enforcement’s strong commitment to enforcing our nation’s export control and public safety laws,” said Special Agent in Charge Weir. “We will continue to work with our law enforcement partners to identify, deter, and keep the most sensitive U.S. origin goods and technology out of the most dangerous hands.”
Shih, an electrical engineer who is a part-time Los Angeles resident and a naturalized U.S. citizen originally from Taiwan, and Mai who resides in Pasadena, California and is a naturalized U.S. citizen originally from Vietnam, were arrested on Jan. 19, without incident by federal agents.
Shih and Mai, who previously worked together at two different companies, are named in a criminal complaint unsealed on Jan. 19, that charges them with conspiracy. Shih is also charged with violating the International Emergency Economic Powers Act (IEEPA), a federal law that makes illegal, among other things, certain unauthorized exports.
The complaint alleges that Shih and Mai conspired to illegally provide Shih with unauthorized access to a protected computer of a U.S. company that manufactured specialized, high-speed computer chips known as monolithic microwave integrated circuits (MMICs). The conspiracy count also alleges that the two men engaged in mail fraud, wire fraud and international money laundering to further the scheme.
According to the affidavit in support of the criminal complaint, Shih and Mai executed a scheme to defraud the U.S. company out of its proprietary, export-controlled items, including technology associated with its design services for MMICs. As part of the scheme, Shih and Mai accessed the victim company’s computer systems via its web portal after Mai obtained that access by posing as a domestic customer seeking to obtain custom-designed MMICs that would be used solely in the United States. Shih and Mail allegedly concealed Shih’s true intent to transfer the U.S. company’s technology and products to the People’s Republic of China.
The victim company’s proprietary semiconductor technology has a number of commercial and military applications, and its customers include the Air Force, Navy and the Defense Advanced Research Projects Agency. MMICs are used in electronic warfare, electronic warfare countermeasures and radar applications.
The computer chips at the heart of this case allegedly were shipped to Chengdu GaStone Technology Company (CGTC), a Chinese company that established a MMIC manufacturing facility in Chengdu. Shih was the president of CGTC, which in 2014 was placed on the Commerce Department’s Entity List, according to the affidavit, “due to its involvement in activities contrary to the national security and foreign policy interest of the United States – specifically, that it had been involved in the illicit procurement of commodities and technologies for unauthorized military end use in China.” Because it was on the Entity List, a license from the Commerce Department was required to export U.S.-origin MMICs to CGTC, and there was a “presumption of denial” of a license.
The complaint outlines a scheme in which Shih used a Los Angeles-based company he controlled – Pullman Lane Productions, LLC – to funnel funds provided by Chinese entities to finance the manufacturing of MMICs by the victim company. The complaint affidavit alleges that Pullman Lane received financing from a Beijing-based company that was placed on the Entity List the same day as CGTC “on the basis of its involvement in activities contrary to the national security and foreign policy interests of the United States.”
Mai acted as the middleman by using his Los Angeles company – MicroEx Engineering – to pose as a legitimate domestic customer that ordered and paid for the manufacturing of MMICs that Shih illegally exported to CGTC in China, according to the complaint. It is the export of the MMICs that forms the basis of the IEEPA violation alleged against Shih. The specific exported MMICs also required a license from the Commerce Department before being exported to China, and a license was never sought or obtained for this export.
Shih and Mai are expected to made their first court appearances on Jan. 19, in U.S. District Court in downtown Los Angeles.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Mai faces a maximum sentence of five years in prison, and Shih faces a maximum sentence of 25 years in prison. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI; the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and IRS Criminal Investigation.
This case is being prosecuted by Assistant U.S. Attorneys Judith A. Heinz, Melanie Sartoris and Khaldoun Shobaki of the Central District of California, and Trial Attorney Matthew Walczewski of the National Security Division Counterintelligence and Export Control Section.
2 Men Charged with Conspiring to Illegally Obtain Technology and Computer Chips That Were Sent to ChinaRead the Press Release
Federal authorities arrested Yi-Chi Shih, 62, and Kiet Ahn Mai, 63, on Jan. 19, on federal charges that allege a scheme to illegally obtain technology and integrated circuits with military applications that were exported to a Chinese company without the required export license.
The announcement was made by Acting Assistant Attorney General for National Security Dana J. Boente; U.S. Attorney Nicola T. Hanna for the Northern District of California; Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office; Special Agent in Charge R. Damon Rowe of IRS Criminal Investigation; Special Agent in Charge Richard Weir of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Los Angeles Field Office.
“According to the complaint, the defendants allegedly schemed to illegally export semiconductors having military and civilian applications to a Chinese company,” said Acting Assistant Attorney General Boente. “Protecting this type of technology and preventing its illegal acquisition by our adversaries remains a key priority in preserving our national security.”
“This case outlines a scheme to secure proprietary technology, some of which was allegedly sent to China, where it could be used to provide companies there with significant advantages that would compromise U.S. business interests,” said U.S. Attorney Hanna. “The very sensitive information would also benefit foreign adversaries who could use the technology to further or develop military applications that would be detrimental to our national security.”
“The FBI, working jointly with our law enforcement partners, remains committed to bringing to justice those who seek to illegally export some of our nation’s most sensitive technologies to the detriment of our national security and hard-working United States companies,” said Assistant Director in Charge Delacourt. “Rest assured, the FBI will continue to diligently pursue any and all leads that involve the illegal exportation of U.S. technology which will cause harm to our long-term national security interests.”
“Today’s actions serve as a reminder that the government will hold individuals accountable who fraudulently procure and export unlawfully protected United States technology and attempt to conceal their criminal activity through international money laundering,” said Special Agent in Charge Rowe. “The IRS plays an important role in tracing illicit funds through both domestic and international financial intuitions. The IRS is proud to partner with the FBI and Department of Commerce and share its world-renowned financial investigative expertise in this investigation.”
“Today’s arrests demonstrate the Office of Export Enforcement’s strong commitment to enforcing our nation’s export control and public safety laws,” said Special Agent in Charge Weir. “We will continue to work with our law enforcement partners to identify, deter, and keep the most sensitive U.S. origin goods and technology out of the most dangerous hands.”
Shih, an electrical engineer who is a part-time Los Angeles resident and a naturalized U.S. citizen originally from Taiwan, and Mai who resides in Pasadena, California and is a naturalized U.S. citizen originally from Vietnam, were arrested on Jan. 19, without incident by federal agents.
Shih and Mai, who previously worked together at two different companies, are named in a criminal complaint unsealed on Jan. 19, that charges them with conspiracy. Shih is also charged with violating the International Emergency Economic Powers Act (IEEPA), a federal law that makes illegal, among other things, certain unauthorized exports.
The complaint alleges that Shih and Mai conspired to illegally provide Shih with unauthorized access to a protected computer of a U.S. company that manufactured specialized, high-speed computer chips known as monolithic microwave integrated circuits (MMICs). The conspiracy count also alleges that the two men engaged in mail fraud, wire fraud and international money laundering to further the scheme.
According to the affidavit in support of the criminal complaint, Shih and Mai executed a scheme to defraud the U.S. company out of its proprietary, export-controlled items, including technology associated with its design services for MMICs. As part of the scheme, Shih and Mai accessed the victim company’s computer systems via its web portal after Mai obtained that access by posing as a domestic customer seeking to obtain custom-designed MMICs that would be used solely in the United States. Shih and Mail allegedly concealed Shih’s true intent to transfer the U.S. company’s technology and products to the People’s Republic of China.
The victim company’s proprietary semiconductor technology has a number of commercial and military applications, and its customers include the Air Force, Navy and the Defense Advanced Research Projects Agency. MMICs are used in electronic warfare, electronic warfare countermeasures and radar applications.
The computer chips at the heart of this case allegedly were shipped to Chengdu GaStone Technology Company (CGTC), a Chinese company that established a MMIC manufacturing facility in Chengdu. Shih was the president of CGTC, which in 2014 was placed on the Commerce Department’s Entity List, according to the affidavit, “due to its involvement in activities contrary to the national security and foreign policy interest of the United States – specifically, that it had been involved in the illicit procurement of commodities and technologies for unauthorized military end use in China.” Because it was on the Entity List, a license from the Commerce Department was required to export U.S.-origin MMICs to CGTC, and there was a “presumption of denial” of a license.
The complaint outlines a scheme in which Shih used a Los Angeles-based company he controlled – Pullman Lane Productions, LLC – to funnel funds provided by Chinese entities to finance the manufacturing of MMICs by the victim company. The complaint affidavit alleges that Pullman Lane received financing from a Beijing-based company that was placed on the Entity List the same day as CGTC “on the basis of its involvement in activities contrary to the national security and foreign policy interests of the United States.”
Mai acted as the middleman by using his Los Angeles company – MicroEx Engineering – to pose as a legitimate domestic customer that ordered and paid for the manufacturing of MMICs that Shih illegally exported to CGTC in China, according to the complaint. It is the export of the MMICs that forms the basis of the IEEPA violation alleged against Shih. The specific exported MMICs also required a license from the Commerce Department before being exported to China, and a license was never sought or obtained for this export.
Shih and Mai are expected to made their first court appearances on Jan. 19, in U.S. District Court in downtown Los Angeles.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Mai faces a maximum sentence of five years in prison, and Shih faces a maximum sentence of 25 years in prison. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI; the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and IRS Criminal Investigation.
This case is being prosecuted by Assistant U.S. Attorneys Judith A. Heinz, Melanie Sartoris and Khaldoun Shobaki of the Northern District of California, and Trial Attorney Matthew Walczewski of the National Security Division Counterintelligence and Export Control Section.
22 January 2018
Taft Drug Trafficker Receives 10-Year Prison Sentence Distribution of Heroin, Cocaine and MethamphetamineRead the Press Release
FRESNO, Calif. — Mario Alvarez-Muniz, aka Cirilio Cardenas-Alvarez, 49, a citizen of Mexico and former resident of Taft, was sentenced on Monday to 10 years and one month in prison for conspiring to distribute and possess with intent to distribute heroin, cocaine, and methamphetamine, U.S. Attorney McGregor W. Scott announced.
Alvarez-Muniz pleaded guilty on October 30, 2017. According to court documents, Alvarez-Muniz, a self-employed tow truck driver, was a long-time distributer of drugs to the Pacific Northwest and Midwest that he obtained from Mexico and Guatemala. Alvarez-Muniz was arrested in Bakersfield after delivering two pounds of methamphetamine during an undercover drug transaction and orchestrating a shipment of six kilograms of heroin and 11 kilograms of cocaine to Chicago; the drugs destined for Chicago were seized in Bakersfield. At the time of his arrest, Alvarez-Muniz was on probation for a prior felony drug conviction.
Co-defendant Darrell Leon Jennings, 49, is charged with conspiring to distribute and possess with intent to distribute heroin, cocaine, and methamphetamine, and possession with intent to distribute heroin and cocaine. He is currently a fugitive. Anyone with information concerning Jennings is encouraged to contact the U.S. Marshals Service at 1-800-336-0102.
The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the U.S. Drug Enforcement Administration, California Highway Patrol, Bakersfield Police Department, and Kern County Probation Office. 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. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Supai Village Man Sentenced to One Year in Prison for Assaulting OfficerRead the Press Release
PHOENIX – Today, Herbert Dini III, 43, of Supai Village, Ariz., was sentenced by U.S. District Judge Steven P. Logan to one year of imprisonment, to be followed by three years of supervised release. Dini had previously pleaded guilty to assault on a federal officer.
On June 8, 2017, an officer with the Bureau of Indian Affairs – Office of Justice Services responded to a report of a disturbance at a home in Supai Village. When he arrived, he found Dini at the home, causing a disturbance and heavily intoxicated. The officer informed Dini he was under arrest for Havasupai Tribal Code offenses relating to his conduct. Dini, a member of the Havasupai Tribe, subsequently ran from the officer, assaulting him during his flight, including grabbing the officer’s vest and swinging his fists at the officer.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8162-PCT-SPL
RELEASE NUMBER: 2018-004_Dini
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Statement from U.S. Attorney D. Michael Dunavant, Western District of Tennessee on the Federal Government ShutdownRead the Press Release
Memphis, TN –"The Department of Justice is comprised of about 40 components that have a broad array of national security, law enforcement, and criminal justice system responsibilities. Therefore, a significant portion of the Department’s mission relates to the safety of human life and the protection of property, and primarily for this reason, the Department has a high percentage of activities and employees that are excepted from the Anti-deficiency Act restrictions and can continue during a lapse in appropriations. The U.S. Attorney’s Office for the Western District of Tennessee is implementing the Contingency Plan of the Department of Justice to identify and furlough certain non-excepted employees during the period of the government shutdown. However, citizens can be assured that the essential federal law enforcement, criminal prosecution, and national security functions of this office will continue as usual in order to preserve and protect public safety in West Tennessee."
Six Former Ravn Alaska Employees Arrested for Stealing Mail from U.S. Postal ServiceRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that six former Ravn Alaska employees have been charged by a federal grand jury for stealing mail, including Apple computers destined for village school districts, from the U.S. Postal Service. One defendant was arrested Friday, the other five defendants were taken into custody today.
Congress Lepou, 29, Breadoflife “Presley” Faiupu, 36, Hubert Barte, 37, Paulo Maae, 24, Harold Velicaria, 35, and Rogelio “Roger” Daquis, 49, all of Anchorage, were named in the indictment charging them with conspiracy, mail theft, and possession of stolen mail.
During the course of the conspiracy, the defendants were employed by Ravn Alaska. Ravn Alaska employees utilized a company vehicle, including the “supervisor truck” to pick up mail from the U.S. Postal Service Processing and Distribution Center in Anchorage, and transfer it to Ravn airplanes in Anchorage for delivery to Alaskan villages. From March 2015 to April 2017, approximately 343 Apple computers went missing after being scanned in by the U.S. Postal Service Distribution Center, but before arriving at the U.S. post offices in the Alaskan villages. The majority of those computers were en route to school districts in Alaska villages.
According to the indictment, beginning in at least March 2015 and continuing through April 13, 2017, Lepou and Faiupu used Ravn Alaska’s supervisor truck – intended for the transportation of mail from the U.S. Postal Service facility to Ravn airplanes for delivery to villages – to take articles stolen from the mail and drive them to the Ravn employee parking lot to load into their personal vehicles. Lepou and Faiupu worked with the other defendants to find buyers for the articles stolen from the mail. The defendants shared the proceeds from the sales. The total approximate value of items stolen from the mail during the timeframe of the conspiracy is $489,000.
The U.S. Postal Service Office of Inspector General and the U.S. Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Second Man Sentenced to Prison for Distributing Heroin on Dark Web Marketplace AlphaBayRead the Press Release
FRESNO, Calif. — Chaudhry Ahmad Farooq, 25, a Pakistani national residing in Brooklyn, New York, was sentenced Monday by U.S. District Judge Dale A. Drozd to 23 months in prison for conspiring to distribute heroin, U.S. Attorney McGregor W. Scott announced.
According to court documents, Farooq and co-defendant Abdullah Almashwali, 33, a Yemeni national formerly residing in Brooklyn, New York, distributed heroin and cocaine on the dark web marketplace AlphaBay using the vendor names “Area51” and “DarkApollo.” Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol address of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly in Bitcoin. AlphaBay was shut down by law enforcement in July 2017.
Farooq and Almashwali accepted orders for heroin and cocaine on AlphaBay, and then mailed the narcotics from post offices in New York to customers throughout the United States. They received payment in Bitcoin. In May 2016, law enforcement agents made two undercover purchases of heroin from “Area51,” which were delivered to a post office box in the Eastern District of California. Postal records revealed that Almashwali purchased the postage for the two heroin parcels mailed to law enforcement, and that Farooq was involved in other mailings. Law enforcement agents were also able to determine that the encrypted email address used by “Area51” and “DarkApollo” was associated with actual Twitter, Instagram, and Facebook accounts used by Farooq.
Farooq was ordered to begin serving his sentence on March 7, 2018. Co-defendant Almashwali was sentenced to six and a half years in prison on July 24, 2017.
This case was the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service, Criminal Investigation, the U.S. Postal Inspection Service, and the Fresno Police Department. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Philadelphia, Pennsylvania Man Pleads Guilty to Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Angel Vega, age 43, of Philadelphia, Pennsylvania, pled guilty to Possession With Intent To Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), and Title 18, United States Code, Section 2, punishable by not less than 10 years imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleges that on or about October 16, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine a Schedule II controlled substance.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Oregon Woman Sentenced for Embezzling Approximately $300,000 from a Tribal Organization in AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Oregon woman has been sentenced for embezzling approximately $300,000 from the Skagway Traditional Council, which is a federally recognized tribal organization.
Delia Commander, 64, of Oregon, was sentenced today by U.S. District Judge Sharon L. Gleason to serve 18 months in prison, followed by three years of supervised release. Commander was also ordered to pay restitution in the amount of $297,731. Commander pleaded guilty to one count of embezzlement from an Indian tribal organization.
According to court documents, from at least 2010 to 2014, Commander embezzled approximately $300,000 from the Skagway Traditional Council’s funds for her personal use. During that time, Commander was employed as the Tribal Administrator for the Village of Skagway, dba Skagway Traditional Council (“STC”), where she received $45,000 annually, plus benefits and free housing, as compensation. Commander was responsible for day-to-day operations of the tribe, including managing tribal housing, environmental and waste management, and managing finances for the STC tribal government, among other things. During each year of Commander’s tenure as Tribal Administrator for STC, the tribe received approximately $150,000 from Bureau of Indian Affairs (BIA) for operating funds.
Commander embezzled the money by using the tribal credit card to make unauthorized cash advances at casinos and other locations, and by making unauthorized personal purchases with tribal funds. The unauthorized expenditures included paying for personal travel including a trip to Hawaii for herself and a family member, online university courses, personal credit card bills, personal vehicle maintenance, and personal shopping, among other things. Over time, the Tribal Council became suspicious of Commander because of her frequent travel and lack of financial documents provided to Council members. Commander resigned from STC in 2014 without prior notice, which is when her embezzlement was discovered.
At sentencing, Judge Gleason noted that such a large amount to be embezzled from such a small organization was an aggravating factor. The Judge also noted that the system of federal funding for tribal organizations relies heavily on trust, which Commander had violated.
The Department of Interior Office of Inspector General, assisted by the FBI, conducted the investigation leading to the successful prosecution of the case.
Muldrow Man Pleads Guilty to Enticement of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Aaron Campbell, age 21, of Muldrow, Oklahoma pled guilty to two counts of Enticement Of A Minor Using A Facility Of Interstate Commerce, in violation of Title 18, United States Code, Section 2422(b), punishable by not less than 10 years imprisonment, up to a $250,000.00 fine, or both, for each count.
The Indictment alleges that from on or about June 6, 2017, until on or about July 26, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, 21 years old, did use and attempt to use a facility and means of interstate commerce, the Internet, to knowingly persuade, induce, and entice an individual, Child #1, whom he believed to be under 16 years of age, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law, to wit: Rape, Second Degree, Title 21, Oklahoma Statute, Sections 1111 and 1114(B), and Lewd or Indecent Proposals or Acts with a Child under 16, Title 21, Oklahoma Statute, Section 1123.
The Indictment further alleges that from in or about June 2017, the exact date being unknown to the Grand Jury, until on or about July 26, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, did use and attempt to use, a facility and means of interstate commerce, by means of cellular communication, to knowingly persuade, induce, and entice an individual, Child #2, whom he believed to be under 14 years of age, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law, to wit: Rape, First Degree, Title 21 Oklahoma Statute, Sections 1111, and 1114(A)(1), Rape by Instrumentation, First Degree, Title 21, Oklahoma Statute Sections 1111.1(A) and 1114(A)(1), and Lewd or Indecent Proposals or Acts with a Child under 16, Title 21, Oklahoma Statute, Section 1123.
The charges arose from an investigation by the Muldrow Police Department and the Department of Homeland Security (HSI).
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Mobile County Man Receives 70 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Brandon Pettaway, a 24 year old, resident of Mobile, Alabama was sentenced to 70 months incarceration followed by three years of supervised release for possessing a firearm after being convicted of two felonies, namely, Burglary Third Degree and Robbery First Degree.
On January 9, 2017, Mobile, Alabama police officers conducted an undercover drug (UC) operation that targeted Pettaway. An UC officer called Pettaway and asked for $40.00 worth of cocaine. They agreed upon a place to make the transaction. Officers waited for Pettaway to arrive with the cocaine. Pettaway arrived in a Jeep and was immediately arrested. Pettaway possessed approximately 20 grams of cocaine and approximately 14.5 grams of marijuana. Located inside the Jeep was a Smith & Wesson, model M&P, 9mm pistol. After Miranda warnings, Pettaway stated that he knew this was a “setup” and that he purchases “1.5 cookies of crack at a time.” Pettaway further stated the he purchased the firearm from a 16 year old male and he knew the firearm was stolen when he purchased it. Pettaway pled guilty on October 16, 2017.
Mobile, Alabama police officers along with special agents of the Bureau of Alcohol Tobacco, Firearms & Explosives investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.
Mobile County Man Receives 57 Month Sentence for Possession of a Stolen FirearmRead the Press Release
The United States Attorney, Richard W. Moore, announces that Sam Nang Chhom, a 31 year old, resident of Irvington, Alabama was sentenced to 57 months incarceration followed by three years of supervised release for possessing a stolen firearm.
On June 24, 2013, a Glock, 9mm pistol, serial number xxxx85 was stolen from a vehicle in Mobile County, Alabama.
On June 4, 2017, Mobile County deputies responded to a location after it was reported that shots had been fired there. When they arrived, Chhom was changing the tire on a vehicle that belonged to another person on the scene. The deputies were familiar with Chhom due to past arrests with weapons involved. Deputies drew there service weapons and detained Chhom and the vehicle owner. The vehicle owner then told the officers that Chhom was driving her vehicle and the driver’s side front tire came off so they stopped and Chhom was trying to fix it. In plain view under the driver’s seat, was the stolen Glock pistol and it was loaded.
On June 7, 2017, Chhom gave a recorded statement saying that the Glock was his and that he bought it for $250.00 from someone named, “Haley” at the Pilot Truck Stop in Theodore, Alabama. Chhom pled guilty on October 16, 2017.
Mobile County, Alabama Sheriff’s deputies along with special agents of the FBI investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.