Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 29 November 2017
Justice Department Awards $525,569 to Maine Drug Enforcement Agency Through the Anti-Heroin Task Force ProgramRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that $525,569 in grant funding through the Department of Justice’s Office of Community Oriented Policing Services through its Anti-Heroin Task Force Program (AHTF) was made to the Maine Drug Enforcement Agency. This grant is part of the new tools to address the opioid crisis announced today by Attorney General Jeff Sessions.
AHTF provides two years of funding directly to law enforcement agencies in states with high per capita levels of primary treatment admissions for heroin and other opioids. This funding will support the location or investigation of illicit activities related to the distribution of heroin or the unlawful distribution of prescription opioids.
Jeannette Man Admits Collecting and Trading Child PornographyRead the Press Release
PITTSBURGH – A resident of Westmoreland County, Pennsylvania, pleaded guilty in federal court to a charge of receipt of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
Jeffrey John Valenta, age 56, of Jeannette, Pennsylvania, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that in November 2010, the Pennsylvania State Police were conducting an undercover investigation into the Internet sharing of child pornography. In connection with the investigation, the state police obtained evidence that led to Valenta’s home. Troopers executed a search warrant at the residence of Valenta on January 6, 2011. He admitted to collecting and trading child pornography. A forensic review of Valenta’s computer revealed 33 video files depicting child pornography.
Judge Conti scheduled sentencing for March 14, 2018. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
Inmate at Lewisburg Federal Prison Sentenced to an Additional Seven Years in Prison for Assault on Correctional OfficerRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal inmate at the United States Penitentiary at Lewisburg was sentenced yesterday by U.S. District Court Judge Matthew W. Brann in Williamsport, to serve an additional seven years in prison for assaulting a federal correctional officer.
According to United States Attorney David J. Freed, Julious Bullock, age 31, formerly of North Carolina, previously admitted to the charge of assault on a correctional officer. The charge stems from an incident on August 2, 2016, in which Bullock “head-butted” a correctional officer at the United States Penitentiary at Lewisburg.
Bullock was previously indicted by a federal grand jury in September 2016, on the assault charge. He is presently serving a sentence of 120 months in prison on the charge of being a convicted felon in possession of a firearm. That offense occurred in 2010 in Raleigh, North Carolina. The sentence which Bullock received yesterday will be served in addition to that sentence.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
# # #
Hitchita Man Sentenced to 46 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jimmie John Likowski, age 49, of Hitchita, Oklahoma, was sentenced to 46 months imprisonment, and 3 years of supervised release for Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about May 21, 2017, within the Eastern District of Oklahoma, the defendant, Jimmie John Likowski, a/k/a Jimmy John Likowski, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Okmulgee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
United States Attorney Brian J. Kuester said, “This office is committed to working with our federal, state, local and tribal partners to protect the public from violent offenders. Enforcement of the federal laws that prohibit convicted felons from possession of firearms is one way that we are able to protect the public. I am thankful for the work of the Okmulgee County Sheriff’s Office, the Bureau of Alcohol, Tobacco, and Firearms, and members of the United States Attorney’s Office, for their work on this case and their commitment to public safety.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney John David Luton represented the United States.
Hichita Man Sentenced to 46 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jimmie John Likowski, age 49, of Hitchita, Oklahoma, was sentenced to 46 months imprisonment, and 3 years of supervised release for Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about May 21, 2017, within the Eastern District of Oklahoma, the defendant, Jimmie John Likowski, a/k/a Jimmy John Likowski, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Okmulgee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
United States Attorney Brian J. Kuester said, “This office is committed to working with our federal, state, local and tribal partners to protect the public from violent offenders. Enforcement of the federal laws that prohibit convicted felons from possession of firearms is one way that we are able to protect the public. I am thankful for the work of the Okmulgee County Sheriff’s Office, the Bureau of Alcohol, Tobacco, and Firearms, and members of the United States Attorney’s Office, for their work on this case and their commitment to public safety.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney John David Luton represented the United States.
Hayneville Man Sentenced to 15 Years in Prison for Assaulting a Federal Law Enforcement OfficerRead the Press Release
Montgomery, Alabama- Harry Larmont McCall, 54, of Hayneville, Alabama was sentenced yesterday to 15 years in prison for assaulting a federal officer with a deadly weapon, announced United States Attorney Louis V. Franklin, Sr. McCall was found guilty of the charge after a trial that took place in June 2017. There is no parole in the federal prison system.
At trial, the jury heard testimony that in December of 2015 McCall arrived at the Department of Veterans Affairs (VA) Montgomery Regional Office on Perry Hill Road for a scheduled appointment. McCall had previously made threats to VA employees, so his appointment was scheduled at this location because of the security measures present at its entry point.
When entering the building for his appointment, he was required to go through a security checkpoint to ensure no prohibited items were brought into the facility. During the security check, VA employees discovered that McCall had an unauthorized item and would not allow him to enter the facility with it.
At this point, McCall began to cause a disturbance and the VA police were required to intervene. When a VA police officer tried to investigate the incident further, McCall attempted to leave in his car. The officer, who was standing near the rear of McCall’s car, ordered McCall to stop and exit the vehicle. McCall refused and instead put his car into reverse and sped backwards toward the officer. The officer attempted to move out of the way, but he was ran over by McCall and suffered serious injuries to his leg that caused a permanent disability. McCall fled, but was later arrested by authorities.
“We hope this sentence sends a message that endangering the lives of our federal law enforcement partners will not be tolerated,” said U.S. Attorney Franklin. “Our office will prosecute those who do so to the fullest extent of the law. In addition, we are committed to providing a safe environment for our veterans who visit VA facilities in the Middle District. We hope for the continued recovery of the victim in this incident, who also happens to be a veteran himself, and thank him for his service.”
This case was investigated by the Department of Veterans Affairs Office of Inspector General. It was prosecuted by Assistant United States Attorney Brandon W. Bates.
Greenville Man Guilty of Twenty Seven Counts of Making False Claims for Payment to the United StatesRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake announced today that Myron Anvil “Mac” McCall, age 59, of Greenville, South Carolina, was found guilty as charged by a jury in federal court in Greenville, South Carolina, of an indictment listing twenty seven (27) counts of violations of Title 18, United States Code, Section 287. Specifically, each count of the indictment charged that McCall had filed a false tax return for another person. The trial was presided over by United States District Judge Bruce H. Hendricks who will sentence Mr. McCall at a later date.
Testimony at trial showed that McCall had worked with over 80 prison inmates and, using their names and Social Security numbers, had prepared false income tax returns for them and sought to obtain fraudulent refunds from the government totaling approximately $500,000. The scheme was discovered when an incriminating letter from Mr. McCall to an inmate in an Arkansas state prison was intercepted. The letter led to the involvement of Internal Revenue Service investigators who stopped the scheme. However, almost $300,000 in fraudulent refunds had already been sent out.
The case was investigated and prosecuted by Assistant United States Attorneys Maxwell Cauthen and David C. Stephens of the Greenville Office. U.S. Attorney Drake commends the Internal Revenue Service for its diligence and hard work in investigating and assisting in the prosecution of Mr. McCall.
#####
Golf Resort CEO Pleads Guilty to Fraud and Tax Evasion ChargesRead the Press Release
PITTSBURGH – A resident of Westmoreland County, Pennsylvania has pleaded guilty in federal court in Pittsburgh on charges of wire fraud and income tax evasion, Acting United States Attorney Soo C. Song announced today.
Rocco Panucci, 53, of Greensburg, PA, pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
According to the information presented to the court, the victim in this case is Chestnut Ridge Golf, L.P. ("Chestnut"), 132 Pine Ridge Road, Blairsville, Pennsylvania, 15717, a golf and resort conference center. In September 2007, Chestnut retained the defendant for an annual salary of $100,000, plus approximately $21,000 of benefits, to function as the chief executive and finance officer. Panucci was responsible for the day-to-day operations until he was dismissed on December 17, 2012, by reason of the conduct these charges are based upon. Panucci used his fiduciary position to cause Chestnut to incur a loss of approximately $354,072 to benefit himself and his family. For example, $20,740.92 of Chestnut monies were diverted for college tuition for Panucci’s children, and $139,183.62 was diverted for personal travel, leisure, dining and entertainment. Panucci directed that an American Express credit card in the name of Chestnut be sent to his home address so that none of the itemized statements were seen by anyone at Chestnut. When it was time to pay the American Express charges, Panucci provided the Chestnut in-house bookkeeper his handwritten lists of what appeared to be legitimate expenditures, which in truth were fabrications to cover what Panucci had charged on the card for personal items.
Judge Schwab scheduled the sentencing for April 4, 2018. The law provides for a maximum total sentence of not more than 40 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation leading to the information in this case.
Gardnerville Man Sentenced to 15 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
RENO, Nev. – A former employee at a Lake Tahoe children’s ski school was sentenced today to 15 years in prison for child sexual exploitation, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Stephan L. DeGraffenreid, 27, of Gardnerville, Nev., pleaded guilty to one count of sexual exploitation of a minor and two counts of attempted sexual exploitation of a minor. United States District Judge Howard D. McKibben also sentenced DeGraffenreid to lifetime supervised release.
According to the criminal complaint and plea agreement, law enforcement discovered child pornography on an Apple iPod Touch that was found at the Children’s Ski School at Heavenly Ski Resort. During the investigation, it was discovered the iPod belonged to DeGraffenreid who was a former employee at the ski school. During the execution of a search warrant at DeGraffenreid’s residence, officers with the Northern Nevada Online Child Exploitation Task Force located a thumb drive that contained explicit images of children in a childcare facility restroom in Gardnerville. DeGraffenreid admitted to taking the sexually explicit photos of the children found on the thumb drive.
The case was investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. The Douglas County Sheriff’s Office and the El Dorado County Sheriff’s Office also assisted with the investigation. Assistant U.S. Attorney Shannon M. Bryant prosecuted the case.
To report child sexual exploitation, contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or the FBI’s Las Vegas Office at (702) 385-1281.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
###
Gaffney Man Sentenced in Federal Court on Charges of Using Explosive DevicesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Jeffrey Dean Daily, age 45, of Gaffney, was sentenced in federal court in Anderson on charges of using an explosive device to damage a building, a violation of Title 18, United States Code, Section 844(i). United States District Judge Timothy M. Cain imposed a sentence of 60 months, followed by three years of supervised release with restitution.
Evidence presented at the change of plea hearing earlier this year established that, on October 1, 2014, Daily used an explosive device to damage the Chesnee Car Wash, and on July 6, 2015, he used an explosive device to damage the Oasis Car Wash in Gaffney. On July 17, 2015, law enforcement officers executed a search warrant at Daily’s residence and found components like those used in the two explosions at the carwashes. Agents also recovered an intact homemade explosive device located in Daily’s truck.
The Chesnee Police Department, Gaffney Police Department, Cherokee County Sheriff’s Office, SLED, Spartanburg County Sheriff’s Office, along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office prosecuted the case.
#####
Fugitive in Multi-Million Dollar Bank Fraud Scheme Named in Grand Jury Indictment Alleging Series of Fraudulent Real Estate LoansRead the Press Release
LOS ANGELES – A longtime fugitive was named today in a nine-count indictment that alleges he participated in a $9 million loan fraud scheme that targeted Wells Fargo Bank.
Napoleon Olarte, 40, who is believed to be in Venezuela after fleeing the United States approximately eight years ago, was indicted late this afternoon by a federal grand jury.
The indictment alleges that Olarte carried out the mortgage fraud scheme with two co-conspirators – Juan Jose Calle and Nancy Karina Coleman – both of whom previously pleaded guilty to charges related to the scheme.
Olarte and his co-conspirators allegedly defrauded Wells Fargo Bank, where Coleman worked as a mortgage consultant. Olarte and Calle allegedly ran a rogue brokerage and escrow company in Northridge called Fast Escrow. Olarte resided in Reseda at the time of the alleged scheme.
According to court documents, Coleman accepted bribes and other favors in exchange for approving approximately $9 million in fraudulent loans for Olarte and Calle. The indictment alleges that Olarte submitted fraudulent loan applications to Wells Fargo that listed false information for borrowers’ income, assets and employment. In relation to some loans financed by Wells Fargo, Olarte and Calle allegedly failed to pay off existing loan holders and failed to record liens in favor of Wells Fargo, leaving the bank with no collateral when the loans defaulted.
The indictment charges Olarte with one count of conspiracy, six counts of bank fraud, and two counts of making false statements to a financial institution. If he were to be convicted in this case, Olarte would face a statutory maximum sentence of 30 years in federal prison for each of the nine counts.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Previously, Calle pleaded guilty to wire fraud, and Coleman pleaded guilty to conspiracy to make false statements to a financial institution.
Federal authorities believe that Olarte is currently residing in Venezuela. Anyone with information about his whereabouts should contact the Federal Bureau of Investigation at (310) 477-6565.
The case against Olarte is the result of an investigation by the Federal Bureau of Investigation, and the United States Department of Housing and Urban Development’s Office of Inspector General.
The case against Olarte is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
Fremont Business Owner Sentenced to over Four Years in Prison for Role in Visa Fraud Conspiracy, Mail Fraud, Witness Tampering, and Related CrimesRead the Press Release
SAN JOSE – Sunitha Guntipally was sentenced today to 52 months in prison for her role in a conspiracy to commit several crimes including visa fraud, obstruction of justice, use of false documents, mail fraud, and witness tampering, announced United States Attorney Brian J. Stretch; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin; and U.S. State Department, Diplomatic Security Service, San Francisco Field Office Special Agent in Charge Matthew Perlman. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge, after Guntipally pleaded guilty to the conspiracy charge on May 3, 2017.
A federal grand jury indicted Sunitha Guntipally, 44, of Fremont, and three co-defendants, Venkat Guntipally, 49, of Fremont; Pratap “Bob” Kondamoori, 56, of Incline Village, Nev.; and Sandhya Ramireddi, 58, of Pleasanton, in a 33-count indictment filed May 5, 2016. The indictment contains charges in connection with the submission of fraudulent applications for H-1B specialty-occupation work visas.
In connection with her guilty plea, Sunitha Guntipally admitted that she and Venkat Guntipally were a husband and wife team who founded and owned DS Soft Tech and Equinett, two employment-staffing companies for technology firms. Sunitha Guntipally admitted that between approximately 2010 and 2014, she and her co-defendants submitted more than one hundred additional fraudulent petitions for foreign workers to be placed at other purported companies. The end-client companies listed in the fraudulent H-1B applications either did not exist or never received the proposed H-1B workers. None of them ever intended to receive those H-1B workers. These applications were designed and intended to create a pool of H-1B beneficiaries who then could be placed at legitimate employment positions in the Northern District of California and elsewhere. Through this scheme, Sunitha Guntipally, along with her co-conspirators, gained an unfair advantage over competing employment-staffing firms and, as a result, she and her husband, Venkat Guntipally, earned money from these downstream companies for themselves and their companies. In addition, Sunitha Guntipally admitted that she obstructed justice, and directed her co-defendant to do the same, in an effort to mislead the agents, and conceal the conspiracy.
In sum, Sunitha Guntipally was charged with one count of conspiracy, in violation of 18 U.S.C. § 371; ten counts of substantive visa fraud, in violation of 18 U.S.C. § 1546(a); seven counts of using false statements, in violation of 18 U.S.C. § 1001(a)(3); four counts of mail fraud, in violation of 18 U.S.C. § 1341; and four counts of witness tampering, in violation of 18 U.S.C. § 1512(b)(3). Pursuant to her guilty plea, Sunitha Guntipally pleaded guilty to the conspiracy charge and the remaining charges were dismissed.
In sentencing Sunitha Guntipally, Judge Koh stated that the defendant’s crime does “damage to the rule of law.” Judge Koh stated that the defendant’s conduct “undermines respect for our legal immigration system” and does “tremendous damage to our institutions and affects the rights of others to immigrate to the United States.”
In addition to the prison term, Judge Koh ordered Sunitha Guntipally to serve three years of supervised release and to pay a $50,000 fine. Each of Sunitha Guntipally’s co-defendants has already pleaded guilty to his respective roles in the scheme. Judge Koh sentenced Ramireddi to 14 months’ imprisonment and Kondamoori to 20 months’ imprisonment for their respective roles earlier this year. Venkat Guntipally, Sunitha Guntipally’s husband, is scheduled to be sentenced on March 21, 2018, at 9:15 a.m.
Assistant U.S. Attorney Timothy J. Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF) overseen by the Department of Homeland Security’s Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Four South Florida Residents Sentenced to Prison for Conspiring to Commit Sweepstakes Mail FraudRead the Press Release
Four Florida residents were sentenced to prison terms ranging from 42 months imprisonment to 84 months imprisonment for participating in a sweepstakes mail fraud scheme.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Matthew Pisoni, 44, of Fort Lauderdale, Marcus Pradel, 41, of Boca Raton, and Victor Ramirez, 38, of Aventura, were found guilty of conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1349, after a five-week trial that ended on July 26, 2017. John Leon, 50, of Fort Lauderdale, previously pled guilty to conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 371.
Today, United States District Court Judge Gayles sentenced Pisoni and Ramirez to 84 months imprisonment; Pradel to 78 months imprisonment; and Leon to 42 months imprisonment.
The trial evidence established that the four defendants, Pisoni, Pradel, Ramirez and Leon, falsely notified individuals by mail that they had won a substantial prize. The letters the defendants sent fraudulently represented that the recipients needed to pay a fee ranging from $20 to $50 to the defendants in order to redeem their purported winnings. During the course of the mail fraud conspiracy, more than 100,000 victims in the United States and abroad were fraudulently induced to pay the fees by the defendants’ misleading claims that they had won a prize. The fraudulent letters directed victims to pay the fees in cash or by check or money order payable to fictitious companies. The defendants then either processed the victims’ payments through independent payment processors or deposited them into shell bank accounts controlled directly and indirectly by the defendants and their co-conspirators. In total, over $25 million in victim payments went into the defendants’ and co-conspirators’ bank accounts.
Mr. Greenberg commended the investigative efforts of the IRS-CI, USPIS, Federal Trade Commission, Aventura Police Department, and other local and international law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Elijah Levitt, and H. Ron Davidson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Dodge Man Sentenced to Federal Prison for Possession with the Intent to Distribute MethamphetamineRead the Press Release
A man who possessed with the intent to distribute methamphetamine was sentenced on November 28, 2017, to more than 14 years in federal prison.
Gary Darnell Black, 44, from Fort Dodge, Iowa, received the prison term after an August 8, 2017, guilty plea to one count of possessing with the intent to distribute methamphetamine.
In a plea agreement, defendant admitted that, during a traffic stop, he possessed approximately 64 grams of actual (pure) methamphetamine, 1.687 kilograms of marijuana, a digital scale, and drug paraphernalia.
At sentencing, the government presented evidence that Black had accumulated 48 criminal convictions since 1993. Evidence also showed that Black had been convicted and/or incarcerated in 23 of the past 24 years. His prior convictions included drug offenses, theft offenses, assaults, and interference with official acts, one of which resulted in an officer sustaining serious head and neck injuries.
Black was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Black was sentenced to 178 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Black is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay Alexander and investigated by the Iowa Division of Narcotics Enforcement, Sac County Sheriff’s Office, and Storm Lake Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4032.
Follow us on Twitter @USAO_NDIA.
Former U.S. Army Civilian Employee at Brooke Army Medical Center Sentenced to Federal Prison for Pocketing Solicited Funds for Wounded WarriorsRead the Press Release
In San Antonio today, 67-year-old Opal Jewel Charles, of Cibolo, TX, was sentenced to five years in federal prison for stealing money collected for wounded warriors and their families announced United States Attorney Richard L. Durbin, Jr.; Resident Agent in Charge Ray A. Rayos, U.S. Army Criminal Investigation Command (Army CID), San Antonio Fraud Resident Agency; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Troy Caldron, San Antonio.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Charles pay $260,000 restitution and be placed on supervised release for a period of three years after completing her prison term.
In May, Charles pleaded guilty to one count of wire fraud and one count of structuring. By pleading guilty, Charles admitted that from 2004 to December 2016, she was assigned to attend to the needs of soldiers and their families at the Warrior Transition Battalion at Brooke Army Medical Center located on Fort Sam Houston in San Antonio. As part of her duties, she solicited funds and other assistance from private organizations and individuals dedicated to assisting wounded warriors. Charles, admittedly, stole those solicited funds and used them for her own private affairs, including gambling. Charles further admitted to structuring bank deposits under $10,000 in order to avoid triggering automatic currency transaction reports.
“Today's sentencing illustrates our firm commitment to aggressively investigate public corruption on Joint Base San Antonio and hold those who engage in such acts accountable,” said Resident Special Agent in Charge Ray A. Rayos, U.S. Army CID San Antonio Fraud Resident Agency."
“IRS-Criminal Investigation is diligent in unraveling the fraudulent actions of those, such as Opal Charles, who schemed to defraud those willing to donate to American soldiers in need of assistance,” said IRS-CI Acting Special Agent in Charge Troy Caldron, San Antonio Field Office. “Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”
Agents with the U.S. Army CID Major Procurement Fraud Unit and IRS-CI investigated this case. Assistant United States Attorney James Blankinship prosecuted this case on behalf of the Government.
Former Police Officer Sentenced for Trafficking Steroids, Money LaunderingRead the Press Release
PROVIDENCE – A former Charlestown, RI police officer was sentenced today to 3 years probation and 1,000 hours of community service for importing, repackaging and selling pharmaceuticals from China and elsewhere, and employing elaborate schemes to hide more than $530,000 in proceeds he netted from the sale of the steroids.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered Evan C. Speck, 35, of Westerly, R.I., to serve the first 18 months of his probationary sentence on home confinement with electronic monitoring – the first 12 months of which he ordered Speck incarcerated on weekends at the Wyatt Detention Center in Central Falls.
Additionally, Speck was ordered to purchase an advertisement in the Westerly Sun to publish a letter of apology to the community for his criminal conduct and to send a similar letter to each member of the Charlestown Police Department. The letters must first be approved by the Court. Speck will also forfeit $536,000 in forfeitable assets, an amount equal to the total value Speck received from the sale of steroids and other drugs.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 46-57 months. The government recommended the court impose a sentence of 57 months incarceration.
Speck pleaded guilty on November 7, 2017, to possession with the intent to distribute steroids, distribution of a misbranded drug and money laundering.
Speck’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Jeffrey Ebersole, Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration Office of Criminal Investigations; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations for New England.
According to information presented to the Court, Speck had been ordering Testosterone Cipionate from China since at least the beginning of 2015, repackaging the drug and selling it to his customers under the name “TabMan Pharmaceuticals.” Speck connected with potential customers through third-party, member only web-based steroid boards. He communicated with distributors of raw products and with his customers, many of whom were professional and amateur bodybuilders, utilizing encrypted emails and varying email addresses, and through text message software that would eliminate texts after they were read.
To conceal the movement of funds, Speck utilized various money remittance services, utilizing false names to conceal his identity as both the sender and recipient of tainted funds. Speck, his distributors of raw product and his customers utilized regularly changing intermediary nominees, domestically and abroad, to facilitate money remittances. The defendant also used crypto-cyber currency, Bitcoin, to conceal both the purchase and sales of products.
On March 20, 2017, federal law enforcement agents executed a court-authorized search of Speck’s residence and seized items associated with the receipt, packaging and resale of steroids and other performance enhancing drugs. Agents also seized labels containing the name under which Speck sold steroids, TabMan Pharmaceuticals.
Additionally, agents seized various false identification documents, ledgers, and cash. The ledgers show that from approximately June 2015 to the date of the search, Speck received $536,000 from the sale of steroids and other drugs. Investigators also seized two firearms from Speck’s residence and a loaded firearm found stashed in his vehicle.
The case was prosecuted by Assistant U.S. Attorneys Dulce Donovan and Mary E. Rogers, with the assistance of Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the Rhode Island FDA Office of Criminal Investigations task force, IRS Criminal Investigation, U.S. Postal Inspection Service, and Homeland Security Investigations.
The Rhode Island FDA Office of Criminal Investigations task force is comprised of agents and officers from the FDA, IRS, DEA, HSI, Rhode Island State Police and the East Providence, North Providence and Westerly Police Departments.
###
Former NBA star Chris Herren to share inspiring story of drug addiction, recovery with Ohio Valley studentsRead the Press Release
WHEELING, WEST VIRGINIA – As the opioid epidemic continues to ravage West Virginia communities and families, United States Attorney Bill Powell and community leaders remain steadfast in their commitment to educate students in the Northern District of West Virginia about the dangerous and deadly consequences of addiction. Next week, former National Basketball Association standout Chris Herren will return to the Ohio Valley to share his powerful story of his struggle with addiction.
On Tuesday, December 5, 2017, Herren will address students in Ohio and Wetzel Counties. First, he will visit Triadelphia Middle School to lead a discussion with students from sixth, seventh and eighth grades. Later, he will visit New Martinsville School in Wetzel County to address middle school students.
After an explosive debut as an All-American basketball star at Durfee High School in Massachusetts, Herren played at Boston College and Fresno State. Capturing the attention of the NBA, Herren was drafted by the Denver Nuggets. He would also play several seasons for the Boston Celtics. Behind the scenes, alcohol, cocaine, and heroin abuse nearly cost Herren his life.
Leveraging his own experience to educate and inspire young people, Herren tours the country speaking about substance abuse and addiction through his Project Purple program. Project Purple is an initiative of the Herren Project, a non-profit organization founded by Herren to break the stigma of addiction, bring awareness to the dangers of substance abuse, and shed light on effective treatment.
Herren’s presentations on December 5, 2017 are not open to the public. For more information on Project Purple, go to thpprojectpurple.org.
Former Iraqi Subcontractor Found Guilty in Kickbacks ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Romanian citizen today for his role in a government contract kickback scheme that caused a loss of more than $3.4 million to the U.S. Department of State.
According to court records and evidence presented at trial, Emil Popsecu, 49, conspired to violate the Anti-Kickback Act related to the lease of real property in Iraq in 2011.
According to evidence adduced and presented at trial, a United States government contractor headquartered in Virginia and performing services for the U.S. Department of State in Iraq in 2011, was searching for real property to lease. A conspiracy formed between Wesley Aaron Struble, 49, a United States citizen living in Batangas, Phillipines, and Joes Rivera, 60, of Potomac, Maryland, both of whom were working as government contractors in Iraq. Struble and Rivera approached an Iraqi company and its associates and agreed to accept kickbacks in exchange for help in causing the U.S. State Department contractor to lease property that the Iraqi company controlled.
Emil Popescu was late recruited to the conspiracy and asked to open a bank account in Baghdad, Iraq. After a lease was signed between the U.S. State Department contractor and the Iraqi company, Popescu withdrew cash from the bank account and made kickback payments directly to Struble and Rivera. Popescu also facilitated other kickback payments by withdrawing money from the bank account and giving it to the Iraqi company knowing that kickback payments were owed to Struble and Rivera.
Prior to trial, Struble and Rivera each pleaded guilty to the same conspiracy and were sentenced to four years and three years in prison, respectively.
Popescu faces a maximum penalty of five years in prison when sentenced on Feb. 23, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Steve A. Linick, the Inspector General for the U.S. Department of State, and Andrew W. Vale, Assistant Director of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the verdict. Special Assistant U.S. Attorney Brian D. Harrison and Assistant U.S. Attorney Kimberly R. Pedersen prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-44 and 1:17-cr-052.
Former Employee of U.S. Government contractor in Afghanistan sentenced to prison for accepting $250,000 in kickbacks from subcontractorRead the Press Release
ATLANTA - A former employee of a U.S. government contractor in Afghanistan was sentenced today to 21 months in prison for accepting over $250,000 in illegal kickbacks from an Afghan subcontractor in return for his assistance in obtaining subcontracts on U.S. government contracts.
U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge John Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office- Atlanta Resident Agency, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.
Nebraska McAlpine, 57, of Smyrna, Georgia, was sentenced in Atlanta by U.S. District Judge Mark H. Cohen of the Northern District of Georgia. McAlpine previously pleaded guilty to a one-count Information charging him with one count of accepting illegal kickbacks. The defendant’s prison sentence will be followed by three years of supervised release and 100 hours of community service.
As part of his guilty plea, McAlpine admitted that while he was employed as a project manager for an American defense contractor (the Prime Contractor) in Kabul, Afghanistan, he and an Afghan executive agreed that in exchange for illicit kickbacks, McAlpine would ensure that the Prime Contractor awarded lucrative subcontracts to the executive’s companies. McAlpine admitted that he repeatedly told his supervisors that these companies should be awarded “sole source” subcontracts, which allowed them to supply services to the Prime Contractor without having to competitively bid on them. As a result of the kickback scheme, the Prime Contractor paid over $1.6 million to the subcontractor to assist with maintaining the Afghanistan Ministry of the Interior Ultra-High Frequency radio communications system in Kabul, McAlpine admitted.
McAlpine further admitted that the executive agreed to pay kickbacks to McAlpine totaling approximately 15 percent of the value of the subcontracts, and that in 2015 and 2016, he accepted over $250,000 in kickbacks from the executive. McAlpine also admitted that he hid the kickbacks from his employer by storing the cash payments in his personal effects and by physically transporting the cash to the United States. McAlpine then deposited the majority of these funds into his bank accounts at bank branches in the Atlanta metropolitan area, he admitted.
DCIS, SIGAR and Army CID-MPFU investigated the case. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia prosecuted the case.
Former DOJ Attorney Pleads Guilty to Obstruction of Justice and Interstate Transportation of Stolen PropertyRead the Press Release
SAN FRANCISCO– Jeffrey Wertkin pleaded guilty today to two counts of obstruction of justice and one count of transportation of stolen property, announced United States Attorney Brian J. Stretch; Department of Justice Office of the Inspector General, Fraud Detection Office Special Agent in Charge Lewe Sessions; and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The guilty plea was accepted by the Honorable Maxine M. Chesney, U.S. District Judge, following the filing of the charges in a criminal information earlier this month.
According to his plea agreement, Wertkin, 41, of Washington, D.C., worked for the Civil Fraud Section of the Department of Justice from October 24, 2010, until April 12, 2016. During that time, he worked on qui tam actions pursuant to which the government investigated companies suspected of breaking the law. By statute, qui tam complaints are filed under seal and therefore kept from public view until the court orders that the complaints may be made public. In his plea agreement, Wertkin admitted that during the last month of his employment as a trial attorney with the Department of Justice, he began secretly reviewing and collecting sealed qui tam complaints that were not assigned to him. Further, Wertkin has admitted that after he left the Department of Justice, he used the stolen information to improperly solicit clients that were the subject of the sealed complaints. Wertkin acknowledged that in one instance, he was successful in using the information from a sealed complaint to convince the subject of a lawsuit to retain him as an attorney to represent it in the lawsuit. Wertkin also acknowledged he lied to the Department of Justice in documents he completed during his exit process regarding whether he stole the complaints.
The plea agreement also describes two occasions in which Wertkin attempted to sell information to companies that were the subject of government investigations. On November 30, 2016, Wertkin offered to sell a complaint to the corporation named in the lawsuit. Then, between November 30, 2016, and January 31, 2017, Wertkin engaged in multiple conversations with a representative of the corporation to negotiate the sale of the sealed complaint for $310,000. Similarly, on January 23, 2017, Wertkin contacted a second corporation and offered to mail to the representative a copy of the face sheet of the complaint. Wertkin actually mailed a redacted copy of the face sheet and promised that, for a fee, he would provide the entire complaint.
Wertkin was arrested on January 31, 2017, after traveling from the Washington, D.C. Area to the San Francisco Bay Area with a copy of a sealed complaint. On that day, Wertkin believed he was meeting at a Cupertino hotel with a representative from a company with whom he would exchange the complaint for a duffel bag filled with $310,000. In truth, Wertkin was meeting with an undercover employee of the FBI.
Further, Wertkin admitted that after his arrest, he took steps in an effort to obstruct the ongoing investigation. Specifically, after being released from custody, Wertkin returned to his office, purportedly to retrieve his personal belongings, and removed and destroyed documents from his office that he knew could further incriminate him. Wertkin acknowledged he took these and additional other steps in an effort to corruptly obstruct the ongoing investigation and proceedings against him.
In sum, on November 1, 2017, Wertkin was charged by information with two counts of obstruction of justice, in violation of 18 U.S.C. § 1505, and one count of interstate transportation of stolen goods, in violation of 18 U.S.C. § 2314. Pursuant to the plea agreement, Wertkin pleaded guilty to all counts.
Judge Chesney scheduled a hearing for sentencing Wertkin for March 14, 2018, at 2:15 p.m. The maximum statutory sentence for each count of violating 18 U.S.C. § 1505 is five years in prison and a $250,000 fine. The maximum statutory sentence for a violation of 18 U.S.C. § 2314 is 10 years in prison and a $250,000 fine. Additional fines, victim restitution, and a term of supervised release also may be imposed. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Robin L. Harris and William Frentzen are prosecuting the case. The prosecution is the result of an investigation by the FBI and the Department of Justice Office of the Inspector General.
Former City of Nashua Volunteer Sentenced to 18 Months in PrisonRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Dana Michelle Lawrence, 43, of Nashua has been sentenced to 18 months in prison for using another person’s social security number.
According to court documents and statements made during a lengthy hearing in U.S. District Court yesterday, in 2006, Lawrence completed consecutive one-year prison terms for fraud-related offenses she committed in New York and Rhode Island. After Lawrence was released from a New York prison, she was required to serve a nine-year period of probation in connection with the Rhode Island case and pay restitution totaling more than $47,000 to the victims of that case. However, shortly after Lawrence completed the prison sentence, she absconded from supervision and a warrant was ultimately issued for her arrest.
Using an alias, “Genevieve Kaplan,” in November 2016, Lawrence began working as a volunteer for the City of Nashua, preparing grant applications. Last May, the Nashua Police Department and Federal Bureau of Investigation were told that “Kaplan” tried to obtain routing and account numbers for bank accounts that belonged to the City. The NPD and FBI discovered Lawrence’s true identity and obtained a copy of a lease application that “Kaplan” used to rent an apartment in Nashua. On the application, “Kaplan” used a social security number assigned to another person. She was arrested for that federal offense on May 11, 2017. She pleaded guilty on August 11, 2017.
During the 11-year period that Lawrence was a fugitive from justice, she used a number of aliases, social security numbers that belonged other people, falsely claimed to be a graduate of an Ivy League law school with access to substantial sums of money. She moved to different states in order to steal money from people she befriended, businesses that employed her, charitable organizations, and other entities.
The Federal Bureau of Investigation, Social Security Administration, Office of Inspector General, and the Nashua Police Department investigated the case.
The case was prosecuted by Assistant United States Attorneys Robert Kinsella and Anna Dronzek.
###
Former City Commissioner Convicted in Health Insurance Fraud SchemeRead the Press Release
McALLEN, Texas ‐ A 47-year-old former Pharr city commissioner has been convicted in connection with a scheme to defraud Blue Cross Blue Shield of Texas, announced Acting U.S. Attorney Abe Martinez.
Oscar Elizondo participated in a conspiracy to submit more than $1.7 million in fraudulent claims to Blue Cross Blue Shield of Texas for expensive pain patches and scar creams.
As a marketer for Penitas Family Pharmacy (aka Riverside Pharmacy) in Penitas, Elizondo targeted employers that carried employee health insurance through Blue Cross, such as the City of Pharr, Frontera Produce and Point Isabel Independent School District, among others. Working with contacts at those entities, Elizondo and other marketers offered meals, drinks and promises of “free” prescription pain patches and scar creams to entice employees to turn over their insurance information.
Elizondo’s co-conspirators then used the insurance information, along with fraudulent prescriptions, to submit fraudulent and medically unnecessary claims to Blue Cross. The insurance company was billed for prescriptions for individuals who never received pain patches or scar creams or who never saw a doctor to obtain a valid prescription. Other employees saw a doctor, but it was a doctor involved in the scheme who received kickbacks, including prescription pain medication, to write prescriptions for all patients Elizondo and other co-conspirators brought him.
In addition, Penitas Family Pharmacy billed Blue Cross for prescription refills that were never requested by, or delivered to, patients.
Elizondo faces up to 10 years in federal prison and a $250,000 maximum fine. Sentencing has been set for Feb. 7, 2018, before U.S. District Judge Randy Crane.
The FBI, Mission Police Department, Texas Department of Insurance – Fraud Unit and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Five Defendants Indicted on Federal Drug Trafficking and Money LaunderingRead the Press Release
Memphis, TN – On November 8, 2017, a federal grand jury returned a 7-count indictment charging five defendants with conspiracy to distribute large amounts of marijuana and money laundering. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
This investigation was conducted in conjunction with prosecutors in Memphis and elsewhere as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Between 2014 and May 3, 2017, the defendants engaged in a multi-state marijuana and money laundering conspiracy. Utilizing the U.S. Mail, the defendants would send and receive packages of marijuana for redistribution in multiple locations, including Memphis and Chattanooga, Tennessee and San Francisco, California. In furtherance of this conspiracy, the defendants conducted a large number of financial transactions.
"This indictment reflects the ongoing priority of the U.S. Attorney’s Office to use all available law enforcement and prosecutorial resources to disrupt and dismantle drug trafficking organizations and conspiracies that distribute illegal narcotics into and through the Western District of Tennessee. Our investigations and prosecutions through the OCDETF Program will be aggressive and far reaching, and will include criminal forfeiture of the ill-gotten financial proceeds from such illegal activities," said U.S. Attorney D. Michael Dunavant.
The five defendants indicted on federal charges include:
Jijad Hijazi, 33, San Francisco, CA
Christopher Heffernan, 32, San Francisco, CA
Nasseam Elkarra, 36, San Francisco, CA
Kenric West, 46, Memphis, TN
Patrick O’Neal, 28, Memphis, TNCount 1 charges Jijad Hijazi, Christopher Heffernan, Nasseam Elkarra, Kenric West and Patrick O’Neal with conspiracy to distribute, and to possess with intent to distribute, in excess of 100 kilograms of marijuana.
Count 2 charges Kenric West with possession with intent to distribute 444.2 grams of marijuana.
Count 3 charges Kenric West with possession with intent to distribute 23.4 grams or more of cocaine.
Count 4 charges Kenric West with being a convicted felon in possession of a firearm.
Count 5 charges Jijad Hijazi and Kenric West with possession with intent to distribute marijuana in excess of 2,690 grams.
Count 6 charges Jijad Hijazi and Kenric West with possession with intent to distribute 1,523 grams of marijuana.
Count 7 charges Jijad Hijazi and Kenric West with conspiring to engage in financial transactions with intent to promote the carrying on of specified unlawful activity, that is conspiracy to commit drug trafficking.
The United States also seeks criminal forfeiture of $3,078,000 in U.S. currency, both jointly and separately from Jijad Hijazi, Christopher Heffernan, Nasseam Elkarra, Kenric West and Patrick O’Neal.
If convicted, the defendants face maximum sentences of up to 40 years imprisonment for the drug conspiracy charge, 5 years imprisonment for each of the marijuana possession charges, 10 years imprisonment for felon in possession of firearm charge, and 2o years imprisonment for the money laundering conspiracy charge.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case was investigated by the Drug Enforcement Administration and the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Cotten is prosecuting this case on the government’s behalf.
Federal Grand Jury Charges Four Men with Exploiting Big Crow Program Office at Kirtland Air Force Base to Perpetuate Multi-Million Dollar Fraud SchemeRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., returned an indictment yesterday charging four men with exploiting the now defunct Big Crow Program Office at Kirtland Air Force Base to perpetuate a multi-million dollar scheme to defraud the United States. The 46-count indictment charges Milton Boutte, 72, of Moriarty, N.M., George Lowe, 55, of Fort Washington, Md., and Jose Diaz, 58, and Arturo Vargas, 54, both of El Paso, Texas, with perpetuating the fraudulent scheme from Oct. 2004 through Feb. 2009, in Bernalillo County, N.M., and elsewhere.
Acting U.S. Attorney James D. Tierney announced the filing of the indictment after it was posted on the court’s website this morning. The four defendants will be summoned into federal court in Albuquerque for arraignment hearings on dates that have yet to be scheduled.
The indictment generally alleges that the defendants perpetuated their scheme to defraud the United States by submitting fraudulent invoices to federal agencies and fraudulently participating in a government program intended to promote minority-owned small businesses. According to the indictment, beginning in fall 2004, Boutte, who was then the Director of the Big Crow Program Office, and Lowe, a lobbyist, conspired and schemed with Diaz and Vargas, owners of minority-owned small businesses who had contracts with the Big Crow Program Office, to pay lobbyists, consultants and contractors with funds fraudulently obtained from the United States. The defendants allegedly did so even though the Big Crow Program Office was not authorized to lobby or to expend appropriated funds for lobbying activities under the contracts they were operating under.
The indictment alleges that the defendants facilitated their fraudulent scheme by exploiting a U.S. Small Business Administration (SBA) program intended to promote the development of small businesses owned by socially and economically disadvantaged individuals by making them eligible to obtain sole-source contracts from government agencies without competitive bidding. In April 1995, Diaz enrolled his company, Miratek, in the SBA program and received a sole-source contract valued at $1,332,109 to provide technical and managerial support for the Big Crow Program Office. After the sole-source contract was awarded to Miratek, the defendants allegedly conspired fraudulently to misapply funds to pay Lowe and other lobbyists for lobbying on Big Crow’s behalf, allegedly diverting at least $529,000 of the contract funds to pay Lowe and his firm, Broadcreek Associates. This allegedly violated the conditions of the SBA program and of Miratek’s contract because lobbying services were not within the authorized scope of work and because Lowe was not an employee of Miratek. In furtherance of their alleged frauds, the defendants allegedly disguised the nature of the claims for services purportedly provided by Lowe and other lobbyists.
The indictment alleges that, in April 2004, after Miratek’s eligibility for the SBA program expired, the defendants created a joint venture to take its place in the fraudulent scheme. According to the indictment, Diaz and Vargas created a joint venture known as Vartek, LLC, to afford Diaz the ability to continue to have access to sole-source contracts under the SBA program and to enable the defendants to continue to perpetuate their scheme to defraud the United States. The indictment alleges the SBA relied on the promises and representations of Diaz and Vargas and approved the Vartek joint venture on Dec. 20, 2005. Vartek was awarded two sole-source contracts, valued at approximately $3,209,116 and $3,847,939, respectively, to provide technical and analytical support for the Big Crow Program Office similar to the contracts previously awarded to Miratek.
The indictment alleges that Diaz and Vargas misappropriated funds authorized under the Vartek contracts to pay Lowe and other unauthorized lobbyists, consultants and contractors. Diaz and Vargas allegedly submitted fraudulent invoices to the U.S. Army Contracting Agency containing claims for payment for services purportedly provided by Lowe and other lobbyists, consultants and contractors. To conceal and disguise the nature of those payments, the defendants allegedly misrepresented in those invoices that Lowe and other lobbyists, consultants and contractors were Vartek employees. To further disguise the diversion of large sums, the defendants made fictional claims for work purportedly performed under the contracts by other persons. The defendants allegedly fabricated the hours that those purported employees worked on the contracts. Diaz and Vargas allegedly falsely represented that the lobbyists and consultants were “project managers” and billed the government at or near the highest rate allowed under the contracts. In aggregate, the defendants fraudulently claimed and obtained payments under the Vartek contracts totaling more than $5,800,000 for lobbyists, consultants and unauthorized contractors, of which at least $506,000 was diverted and paid to Lowe and his firm, Broadcreek Associates. Diaz also allegedly falsified and fabricated the hours that he himself worked under those contracts.
The indictment includes forfeiture provisions requiring that the defendants forfeit to the United States any property, real or personal, which constitutes or is derived from proceeds of their crime if the defendants are convicted of the offense of conspiracy to commit wire fraud.
Indictment 17-CR-3338-JB
Charges and Statutory Penalties
Count 1 charges Boutte, Diaz, Vargas and Lowe with conspiracy to defraud the United States with respect to claims, in violation of 18 U.S.C. § 286, and carries a maximum penalty of ten years of imprisonment and a fine of not more than $250,000 or twice the pecuniary loss or gain.
Count 2 charges Boutte, Diaz, Vargas and Lowe, with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and carries a maximum penalty of 20 years of imprisonment and a fine of not more than $250,000 or twice the pecuniary loss or gain.
Counts 3 and 4 charge Boutte, Diaz and Vargas with fraud against the United States, in violation of 18 U.S.C. § 1031, and aiding and abetting such fraud, in violation of 18 U.S.C. § 2. Each charge carries a maximum penalty of 20 years of imprisonment and a fine not more than $5,000,000 if the loss is less than $500,000, but not to exceed $10,000,000 in the aggregate.
Counts 5 through 46 charge certain of the defendants with making false, fictitious and fraudulent claims, in violation of 18 U.S.C. § 287, and aiding and abetting the making of such claims, in violation of 18 U.S.C. § 2. Each charge carries a maximum penalty of five years of imprisonment and a fine of not more than $250,000. Counts 5 through 9 charge Boutte, Diaz and Lowe; Counts 10 through 22 charge Boutte, Diaz, Vargas and Lowe; Counts 23 through 24 charge Boutte, Diaz and Vargas; and Counts 25 through 46 charge Boutte, Diaz and Vargas.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Major Procurement Fraud Unit of the U.S. Army Criminal Investigations Command, Defense Criminal Investigations Services, Defense Contract Audit Agency – Investigative Support, and U.S. Small Business Administration Office – Office of Inspector General, and General Services Administration – Office of Inspector General. Assistant U.S. Attorneys Timothy S. Vasquez and Jeremy Peña are prosecuting the case.
Boutte IndictmentEight Members/Associates of Cowboys Gang in South Carolina Sentenced for RICO Conspiracy and Violent Crimes in Aid of RacketeeringRead the Press Release
Eight members and one associate of the Cowboys gang, a violent street gang that originated in “Eastside” area of Walterboro, South Carolina, were sentenced this week in federal court in Charleston, South Carolina.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
U.S. District Court Judge David C. Norton sentenced Khiry Broughton, aka KBlacka, to 108 months in prison; Clyde Naquan Hampton, aka One Loyal Shooter, to 151 months in prison; Zaquann Ernest Hampton, aka TOB, to 84 months in prison; Matthew Rashaun Jones, aka Boogie Mac, to 151 months in prison; Bryant Jameek Davis, aka Savo, to time served; Christopher Sean Brown, aka Roughish, to 108 in prison; William Lamont Cox, aka Wataz, to time served; and Quintin Fishburne to time served. All were sentenced to three years of supervised release as well.
Khiry Broughton, Clyde Naquan Hampton, Matthew Rashuan Jones, and William Lamont Cox were each convicted of RICO conspiracy. Bryant Jameek Davis, Quintin Fishburne, Zaquann Ernest Hampton and Christopher Sean Brown were each convicted of attempted murder in aid of racketeering
Clyde Naquann Hampton and Zaquann Ernest Hampton are from Summerville, South Carolina. Matthew Rashaun Jones is from Cottageville, South Carolina. Khiry Broughton, Bryant Jameek Davis, Quintin Fishburne, and Christopher Sean Brown are from Walterboro, South Carolina, and William Lamont Cox is from Round O, South Carolina.
According to the respective Plea Agreements, all eight defendants were members/associates of the Cowboys gang, a violent street gang that originated in “Eastside” area of Walterboro, South Carolina. Members of the Cowboys show their allegiance by wearing red, white, and blue clothing, and carrying rags in these colors, including depictions of the American flag. Further, members of the Cowboys greet each other and show their membership in the gang using a set of hand-signs intended to evoke the shape of a “b.” This hand sign also shows an affiliation with the “Bloods” gang. Members of the Cowboys also show allegiance to the gang by having the words “Cowboy(s)” or “GMC” tattooed to some part of their body. The Cowboys gang was also, for a time, aligned with another violent street gang called the “Wildboys,” that originated out of the Green Pond area of Walterboro, South Carolina. In addition to sharing a common interest in posting threats, firearms, large amounts of cash, and what purported to be narcotics on Facebook and YouTube, Cowboys and Wildboys shared common enemies. These shared interests resulted in shootings, aimed at rival gang members, which left innocent by-standers seriously injured.
According to his Plea Agreement, Khiry Broughton was sentenced for his role as leader of the Cowboys. In addition, Broughton and Fishburne were sentenced for their roles in a Nov. 6, 2015 attempted murder. Broughton, along with co-defendants Dashawn Brown and Quintin Fishburne, attended a drag race outside of Walterboro. After bets were placed, Broughton questioned the results of the race and demanded the winnings, which were held by one of the race drivers. Broughton decided to rob the winner of the race and in so doing retrieved a backpack containing firearms from Fishburne’s vehicle. Broughton provided the firearms to members of the Cowboys. After the winner refused to provide the money, the winner and another innocent bystander were shot and severely injured. After the shooting occurred, Fishburne, who transported Broughton and Brown to the race, drove Broughton and Brown from the scene to avoid apprehension by the police.
Clyde Naquan Hampton was sentenced for his role in a July 6, 2010 shooting aimed at individuals Hampton believed disrespected him. After throwing up the “b” sign and shouting allegiance to the Cowboys, Hampton fired several shots toward the victims. Hampton was also sentenced for his role in a July 12, 2010 shooting aimed at a rival gang member. After the shooting occurred, shell casings were recovered from the scene and analyzed. Analysis confirmed that the firearm Hampton used was the same as that used in the July 6, 2010 shooting. Hampton was also sentenced for his role in the May 30, 2013 drive-by shooting aimed at rival gang members. Hampton was the driver of this vehicle while two other members of the Cowboys, Matthew Rashuan Jones and Christopher Sean Brown, fired multiple shots at the residence where they believed rival gang members allegedly lived.
Matthew Rashaun Jones was sentenced for his role in a May 12, 2011 drive-by shooting aimed at an individual he believed was a member of a rival gang. Jones, a passenger in the vehicle, along with Dashawn Trevell Brown, fired multiple shots at the individual. Jones was also sentenced for his role in a May 30, 2013 drive-by shooting aimed at rival gang members. While riding in a vehicle driven by Clyde Naquann Hampton, Jones and Christopher Sean Brown fired multiple shots at the residence.
Bryant Jameek Davis was sentenced for his role in a Sept. 28, 2014 shooting in Walterboro, South Carolina. Davis exchanged words with an individual believed to be a member of a rival gang. After exchanging words with the individual and while possessing a firearm, Bryant fired at least two shots at the victim, striking him in the neck and clavicle resulting in serious bodily injury.
William Lamont Cox was sentenced for his role in the distribution of various amounts of controlled substances, namely crack cocaine, from July 30, 2015 to Oct. 15, 2015. Cox used members of the Cowboys to assist in protecting and selling the narcotics.
Zaquann Ernest Hampton was sentenced for his role in the Oct. 28, 2012 robbery that resulted in a shooting of the victim. Hampton, and other associates of the Cowboys gang, placed an order of marijuana from the victim. When the victim arrived, Hampton and his associates, tried to rob the victim, and in so doing, brandished and discharged a firearm that resulted in serious bodily injury.
Christopher Sean Brown was sentenced for his role in the May 30, 2013 drive-by shooting aimed at members of a rival gang. Brown, and Jones, who were passengers in a vehicle driven by Clyde Naquann Hampton, fired multiple shots in the residence they believed was occupied by members of the rival gang.
As part of the sentence, Khiry Broughton, Clyde Naquann Hampton, Matthew Rashaun Jones, and William Lamont Cox were ordered to serve a term of three years of supervised release and to pay the costs of medical care for the victims who received medical care as a result of the injuries. Zaquann Ernest Hampton, Bryant Jameek Davis, Quintin Fishburne, and Christopher Sean Brown were ordered to serve a term of three years of supervised release and pay the costs of medical care for those victims injured as a result of the crime.
Dashawn Trevell Brown, a member of the Cowboys, who pleaded guilty to RICO conspiracy, is scheduled to be sentenced on Dec. 15.
The case was investigated by the ATF, Charleston, South Carolina, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section from Washington, D.C. and Special Assistant U.S. Attorney Tameaka A. Legette from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.
Eagle Butte Man Indicted on Methamphetamine Charges and Distribution of a Controlled Substance Where Children are PresentRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for conspiracy to distribute a controlled substance, distribution of a controlled substance, and distribution of a controlled substance where children are present.
Rafael Lombarana Davila, age 32, was indicted on July 11, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 22, 2017, and pled not guilty to the Indictment.
The maximum penalties upon conviction are up to 40 years in custody and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between April 1, 2014, and July 11, 2017, Davila knowingly and intentionally combined, conspired, confederated and agreed with others to intentionally distribute and to possess with the intent to distribute 50 grams or more of methamphetamine. The Indictment further alleges that on or about December 22, 23, and 27, 2016, Davila actually distributed methamphetamine to another individual, and distributed methamphetamine where children resided and were present.
The charges are merely accusations and Davila is presumed innocent until and unless proven guilty.
This case is being investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Davila was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Des Moines Tax Preparer Sentenced to 45 Months in Prison for Tax FraudRead the Press Release
DES MOINES, Iowa – On November 29, 2017, United States District Court Judge Rebecca Goodgame Ebinger sentenced Lony Tap Gatwas, 48, of Ames, Iowa, to 21 months in prison for wire fraud and tax fraud, and 24 months for aggravated identity theft, to be served consecutively to one another, for a total of 45 months, announced United States Attorney Marc Krickbaum. Gatwas was also ordered to pay $132,585 in restitution to the Internal Revenue Service (IRS), serve three years of supervised release following his imprisonment, and pay $1,800 to the Crime Victims’ Fund.
On July 26, 2017, following a jury trial, Gatwas was found guilty of four counts of wire fraud, seven counts of aggravated identity theft, and seven counts of preparing and presenting false tax returns. Gatwas operated a tax preparation business in Des Moines. As stated in the indictment, Gatwas engaged in a scheme to defraud the IRS by preparing and filing personal income tax returns listing false dependents. During trial, the government presented evidence that Gatwas placed his own children, as well as other children, on his clients’ personal income tax returns as dependents, when these children had no relationship to the taxpayers, did not live with the taxpayers, and the taxpayers provided no financial support for the children.
Gatwas inflated his clients’ refunds by thousands of dollars by placing false dependents on his clients’ tax returns. Clients’ testimony established Gatwas charged them from $1,000 to $2,000 for each false dependent he put on their return. When his clients were audited, Gatwas instructed some clients to lie to IRS Revenue Agents about their relationship with the false dependents.
The IRS – Criminal Investigation conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Czar Entertainment Founder James Rosemond Convicted in Manhattan Federal Court for Ordering the Murder of Lowell FletcherRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JAMES ROSEMOND, a/k/a “Jimmy the Henchman,” was found guilty last night of murder-for-hire, conspiracy to commit murder-for-hire, and firearms offenses for ordering the murder of Lowell Fletcher, a/k/a “Lodi Mack.” The jury convicted ROSEMOND on all counts in the controlling indictment following a nine-day retrial before United States District Judge Lewis A. Kaplan.
Acting U.S. Attorney Joon H. Kim said: “James Rosemond’s team of hitmen assassinated Lowell Fletcher as payback for an assault on Rosemond’s son. Rosemond’s defense at trial – that he hired these men to shoot Fletcher, but did not intend for Fletcher to be killed – was swiftly and unanimously rejected by the jury. Justice for Fletcher’s family has been a long time coming, in part because of a hung jury and an overturned conviction in two prior trials, but that thanks to the unwavering commitment and tireless work of the detectives, agents, and prosecutors on this case, it is finally here.”
According to court papers and the evidence at trial:
JAMES ROSEMOND was the founder of Czar Entertainment, a rap music management company, and also the head of a large-scale cocaine trafficking organization. In March 2007, members and associates of a rival rap music group known as “G-Unit,” including Marvin Bernard, a/k/a “Tony Yayo,” and Lowell Fletcher, a/k/a “Lodi Mack,” assaulted ROSEMOND’s son. ROSEMOND’s son was not seriously injured in the assault, and Fletcher ended up serving prison time for his involvement in the assault. Nevertheless, in 2009, ROSEMOND recruited a crew of men to murder Fletcher upon his release from prison by promising at least $30,000 in payment for killing Fletcher. At ROSEMOND’s direction, members of the murder crew selected a dark and secluded location for the murder in the vicinity of Mount Eden and Jerome Avenues in the Bronx, and lured Fletcher to that spot. When Fletcher arrived there in the evening on September 27, 2009, a member of the murder crew stepped out of the shadows and fired five bullets into Fletcher’s back and arms using ROSEMOND’s .22 caliber handgun with a silencer. Fletcher died later that night. On October 2, 2009, ROSEMOND had a trusted employee of his cocaine organization provide a kilogram of cocaine – worth about $30,000 in street value – to a member of his murder crew as payment for the murder.
For his role in ordering, planning, and paying for the murder of Lowell Fletcher, ROSEMOND was convicted of one count of substantive murder-for-hire, one count of conspiracy to commit murder-for-hire, and two firearms counts. ROSEMOND faces a mandatory minimum sentence of life in prison. ROSEMOND is scheduled to be sentenced on March 13, 2018, before Judge Kaplan.
At the conclusion of ROSEMOND’s first trial, in February and March 2014, a mistrial was declared after the jury was unable to reach a unanimous verdict on the counts against ROSEMOND relating to the murder-for-hire of Fletcher. At ROSEMOND’s second trial in December 2014, ROSEMOND was convicted on all counts. On appeal to the United States Court of Appeals for the Second Circuit, ROSEMOND argued in part that his conviction in this murder-for-hire case should be overturned because certain rulings by the trial court effectively barred him from advancing a line of defense that ROSEMOND wanted to pursue – namely, ROSEMOND’s claim that although he ordered hitmen to shoot Fletcher, he did not intend for the shooting to result in Fletcher’s death. In November 2016, the Second Circuit vacated ROSEMOND’s conviction and remanded the case for a new trial. The case was reassigned to Judge Kaplan for retrial. ROSEMOND presented that defense at this third trial, which began on November 6, 2017, and ended on November 28, 2017, when a unanimous jury found ROSEMOND guilty of all the charges against him.
Acting U.S. Attorney Kim thanked and praised the U.S. Drug Enforcement Administration, the New York City Police Department, the U.S. Department of Homeland Security, and the U.S. Marshals Service for their persistence and outstanding work in this investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. The trial was conducted by Assistant U.S. Attorneys Samson Enzer, Drew Skinner, and Elizabeth Hanft.
Credit Repair Business Owner Pleads Guilty to Tax Fraud ChargesRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of JOSEPH ARNOLD MCGLYNN, JR., 33, former owner, CEO and President of United Credit Consulting (“UCC”), for failing to account for and pay over employment taxes. MCGLYNN, JR., who was indicted on August 8, 2017, pleaded guilty yesterday before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
According to the plea agreement and documents filed in court, while MCGLYNN, JR. was the owner, CEO and President of UCC, a credit repair service company located in Burnsville, Minn., MCGLYNN, JR. was responsible for ensuring that UCC’s Employer’s Quarterly Federal Tax Returns were filed and that employment taxes were paid. However, although MCGLYNN, JR. caused employment taxes to be withheld from the wages of UCC employees, he failed to pay over such taxes to the Internal Revenue Service (“IRS”). Instead, MCGLYNN, JR. used the money to fund a lavish lifestyle, including luxury vacations, rentals of luxury vehicles, visits to strip clubs and purchases of luxury items such as jewelry and handbags. In total, MCGLYNN, JR. failed to pay to the IRS at least $159,157 in employment taxes.
The defendant’s wife and former employee of United Credit Consulting, TARA MARIE MCGLYNN, 32, pleaded guilty on January 17, 2017, to filing a false tax return.
Both cases are the result of an investigation conducted by the Criminal Investigation Division of the IRS and the United States Postal Inspection Service.
Assistant U.S. Attorney Michelle E. Jones is prosecuting the cases.
Defendant Information:
JOSEPH ARNOLD MCGLYNN, JR., 33
Burnsville, Minn.
Convicted:
- Willful failure to account for and pay over employment taxes, 2 counts
TARA MARIE MCGLYNN, 32
Eden Prairie, Minn.
Convicted:
- Filing a false tax return, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Cleveland man sentenced to 17 years in prison for selling heroin that caused three overdoses in WoosterRead the Press Release
A Cleveland man was sentenced to 17 years in prison for selling heroin that caused three overdoses in Wooster last year, law enforcement officials said.
Demetrius L. Frizzell, 31, previously pleaded guilty to one count of conspiracy to distribute heroin and one count of attempted witness tampering.
Wooster police learned about a heroin overdose victim who on Nov. 3 was brought to an emergency room unresponsive and appeared to be deceased. He was revived after emergency-room staff administered 12 doses of Narcan. Investigators traced the sale of heroin to Frizzell, according to court documents.
Frizzell also sold heroin on Oct. 29 and Nov. 2 that resulted in overdoses. All three people who overdosed were revived with Narcan, according to court documents.
Frizzell made a call from jail to an unknown male and instructed him to go to the home of one of the people who overdosed called and get him “in line,” according to court documents.
“This defendant sold heroin that resulted in several overdoses and would have caused deaths, but for the intervention from first responders and hospital personnel,” said U.S. Attorney Justin E. Herdman. “Aggressive enforcement, combined with increased prevention and education efforts, is our best chance to turn around this epidemic.”
DEA Special Agent in Charge Timothy Plancon stated: “Overdoses and overdose deaths related to heroin have become an epidemic across the country and Ohio has been hit particularly hard by this problem. Identifying and bringing to justice those individuals that distribute illegal drugs that result in an overdose is one of DEA’s top priorities.”
MEDWAY Director Donald Hall said: “The MEDWAY Drug Enforcement Agency will continue to collaborate and work closely with our federal partners to hold people accountable for their actions who are involved in trafficking drugs in our communities.”
This case was investigated by the Drug Enforcement Administration, the MEDWAY Drug Enforcement Agency, the Wooster Police Department and the Wayne County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Teresa Riley and Mark Bennett.
Bridgeport Man Sentenced to Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANORIS DELGADO, also known as “Alex,” 29, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to five months of imprisonment, followed by three years of supervised release, for distributing heroin. Judge Bolden ordered DELGADO to serve the first six months of his supervised release in home confinement.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the morning of April 25, 2016, Bridgeport Police and medical personnel responded to a location on Washington Avenue on a report of a possible drug overdose. The overdose victim was revived with two doses of Narcan and was transported to the hospital. A friend of the victim, who was with the victim at the time and contacted medical professionals after the overdose, told investigators that he and the victim purchased heroin from and individual he knew as “Eric” in the area of Brooks Street and Ogden Street in Bridgeport. The victim subsequently identified DELGADO’s brother, Erick Delgado, as the source of the heroin he used.
In the evening of April 25, 2016, Monroe Police and emergency medical personnel responded to a report of an unresponsive 48-year-old male at residence in Monroe. The victim was pronounced dead at the scene. A subsequent interview with an acquaintance of the victim revealed that, on April 25, the victim and his acquaintance traveled to the area of Brooks Street and Ogden Street where the victim purchased heroin from Erick Delgado.
The Office of the Chief Medical Examiner subsequently determined the victim’s cause of death to be acute fentanyl intoxication.
On May 3, 2016, an individual working with law enforcement contacted Erick Delgado to arrange the purchase of heroin. When the individual and an undercover officer arrived in the area of Brooks Street and Ogden Street, they were met by ANORIS DELGADO who subsequently provided them with 20 bags of heroin. The undercover officer purchased another 20 bags of heroin from ANORIS DELGADO on May 20.
ANORIS DELGADO was arrested on June 21, 2016, and was subsequently released on bond. On October 25, 2016, he pleaded guilty to one count of distribution of heroin. He has been detained since July 11, 2017, when his bond was revoked.
Erick Delgado pleaded guilty to the same charge and, on January 26, 2017, was sentenced to 13 months of imprisonment.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Monroe and Bridgeport Police Departments. The case is was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Baton Rouge Man Pleads Guilty to Transporting Child PornographyRead the Press Release
Acting United States Attorney Corey R. Amundson announced that ANDREW EASTERLY, age 20, of Baton Rouge, Louisiana, pleaded guilty yesterday before Chief U.S. District Judge Brian A. Jackson to transporting child pornography. Easterly faces a significant period of imprisonment when sentenced on March 29, 2018.
According to Easterly’s admissions to the Court in connection with his guilty plea, beginning in March 2015, and continuing until May 2015, Easterly used his computer and other electronic devices to upload sexually explicit images of children to an online social media website, which allowed his followers and other members of the public to access, view, and share the images. Law enforcement recovered multiple electronic devices used by Easterly to store more than 300 images and videos of sexually explicit depictions of prepubescent minors and toddlers, as well as images produced by Easterly depicting minor victims in various states of nudity and intimate behaviors.
Acting U.S. Attorney Amundson stated, “Fighting against the sexual exploitation of children requires the kind of dedicated federal, state, and local effort exemplified in this matter. Our office looks forward to continuing to work hand-in-hand with our partners at the Attorney General’s Office, HSI, BRPD, and EBRSO to make our community, state, and nation a safer place. My gratitude to the prosecutors and agents who worked diligently on this important matter.”
“We are pleased that this case, initiated by our office’s investigation, has resulted in a guilty plea by Mr. Easterly for the transportation of child pornography,” said Louisiana Attorney General Jeff Landry. “Today’s conviction is a direct result of the hard-work and communication with our law enforcement partners. Our office will continue our efforts to find child predators and bring them to justice.”
This matter was a joint effort involving the United States Attorney’s Office, the Louisiana Attorney General’s Office – Cyber Crime Unit, and the U.S. Department of Homeland Security – Homeland Security Investigations, with assistance from the Baton Rouge Police Department and the East Baton Rouge Parish Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Jamie A. Flowers, Jr.
Attorney General Sessions and Acting DEA Administrator Patterson Announce New Tools to Address Opioid CrisisRead the Press Release
Continuing to follow President Trump’s strong leadership on combatting the deadly opioid crisis, Attorney General Sessions today announced new resources and stepped up efforts to address the drug and opioid crisis.
Joined by Acting DEA Administrator Robert Patterson, Attorney General Sessions announced the following efforts during a press conference at the Department of Justice: over $12 million in grant funding to assist law enforcement in combating illegal manufacturing and distribution of methamphetamine, heroin, and prescription opioids; the establishment of a new DEA Field Division in Louisville, Kentucky, which will include Kentucky, Tennessee, and West Virginia, a move meant to better align DEA enforcement efforts within the Appalachian mountain region; and a directive to all U.S. Attorneys to designate an Opioid Coordinator to work closely with prosecutors, and with other federal, state, tribal, and local law enforcement to coordinate and optimize federal opioid prosecutions in every district.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “That’s why, under President Trump’s strong leadership, the Department of Justice has been taking action to make our drug law enforcement efforts more effective. Today we announce three new initiatives to do just that. First, we will invest $12 million in funding for our state and local law enforcement partners to take heroin and methamphetamine off of our streets. Second, we will restructure DEA's Field Divisions for the first time in nearly 20 years. Third, we will require all of our federal prosecutors' offices to designate an Opioid Coordinator who will customize our anti-opioid strategy in every district in America. These steps will make our law enforcement efforts smarter and more effective—and ultimately they will save American lives."
“DEA continually looks for ways to improve operations and interagency cooperation and more efficiently leverage resources,” said Acting DEA Administrator Robert W. Patterson. “By creating a new division in the region, this restructuring places DEA in lockstep with our partners in the area to do just that. This change will produce more effective investigations on heroin, fentanyl, and prescription opioid trafficking, all of which have a significant impact on the region.”
COPS Anti-Heroin Task Force Grants and Anti-Meth Program
The Community Oriented Policing Services (COPS) Office is awarding a total of $7.19 million in FY 2017 funding through the Anti-Heroin Task Force Program (AHTF). AHTF provides two years of funding directly to law enforcement agencies in states with high per capita levels of primary treatment admissions for heroin and other opioids. This funding will support the location or investigation of illicit activities related to the distribution of heroin or the unlawful distribution of prescription opioids.
The COPS Office will also award a total of $5.03 million in FY 2017 funding through the COPS Anti-Methamphetamine Program (CAMP). The state agencies receiving funding today have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies will be awarded two years of funding through CAMP to support the investigation of illicit activities related to the manufacture and distribution of methamphetamine.
The complete list of Anti-Heroin Task Force Program (AHTF) award recipients, including funding amounts, can be found here.
The complete list of COPS Anti-Methamphetamine Program (CAMP) award recipients, including funding amounts, can be found here.
Establishment of DEA Louisville Field Division
The DEA will establish the Louisville Field Division – its 22nd division office in the United States – on Jan. 1, 2018. It will include Kentucky, Tennessee, and West Virginia. This action converts the existing Louisville District Office into a field division in an effort to enhance DEA enforcement efforts within the Appalachian mountain region and unify drug trafficking investigations under a single Special Agent in Charge. DEA anticipates that this change will produce more effective investigations on heroin, fentanyl and prescription opioid trafficking, all of which have a significant impact on the region. The division will also better align DEA with the U.S. Attorney’s Office districts in those areas, similar to current ATF and FBI offices, and also to the Appalachia High Intensity Drug Trafficking Areas (HIDTA) Program.
The Louisville Division will be led by Special Agent in Charge D. Christopher Evans, who comes from the Detroit Field Division where he served as Associate Special Agent in Charge.
Designation of Opioid Coordinators
Every U.S. Attorney will designate an Opioid Coordinator by the close of business on Dec. 15, 2017. Each USAO Opioid Coordinator will be responsible for facilitating intake of cases involving prescription opioids, heroin, and fentanyl; convening a task force of federal, state, local, and tribal law enforcement to identify opioid cases for federal prosecution, facilitate interdiction efforts, and tailor their district’s response to the needs of the community it serves; providing legal advice and training to AUSAs regarding the prosecution of opioid offenses; maintaining statistics on the opioid prosecutions in the district; and developing and continually evaluating the effectiveness of the office’s strategy to combat the opioid epidemic.
The Attorney General’s memo to United States Attorneys can be viewed here.
Attorney General Jeff Sessions Appoints U.S. Trustee and Acting U.S. Trustees to Cover Six U.S. Trustee Program RegionsRead the Press Release
WASHINGTON, D.C. – Attorney General Jeff Sessions has appointed one interim U.S. Trustee and five Acting U.S. Trustees to cover six U.S. Trustee Program (USTP or Program) regions, the Executive Office for U.S. Trustees (EOUST) announced today. The effective date of each appointment correlates with the upcoming retirements of Judy A. Robbins, U.S. Trustee for Regions 4 and 7, and Guy G. Gebhardt, Acting U.S. Trustee for Region 21, and the detail of Gail B. Geiger, Acting U.S. Trustee for Region 18, to a leadership position in the EOUST.
Region 4 – District of Columbia, Maryland, South Carolina, Virginia, and West Virginia: John P. Fitzgerald III is appointed as the Acting U.S. Trustee for Region 4 effective Jan. 1, 2018. Mr. Fitzgerald is the Assistant U.S. Trustee in the Boston office of the USTP. Region 4 is headquartered in Columbia, South Carolina, with additional offices in Baltimore and Greenbelt, Maryland; Alexandria, Norfolk, Richmond, and Roanoke, Virginia; and Charleston, West Virginia.
Region 5 – Louisiana and Mississippi: David W. Asbach is appointed as the Acting U.S. Trustee for Region 5 effective Jan. 1, 2018. Mr. Asbach is the Assistant U.S. Trustee in the Milwaukee office of the USTP. Region 5 is headquartered in New Orleans with additional offices in Shreveport, Louisiana, and Jackson, Mississippi.
Region 7 – Southern and Western Districts of Texas: Henry G. Hobbs, Jr., is appointed as the Acting U.S. Trustee for Region 7 effective Jan. 1, 2018. Mr. Hobbs is the Assistant U.S. Trustee in the USTP’s office in Austin, Texas, and has served as the Acting U.S. Trustee for Region 5 since January 2011. Region 7 is headquartered in Houston with additional offices in Austin, Corpus Christi, and San Antonio, Texas.
Region 12 – Iowa, Minnesota, North Dakota, and South Dakota: James L. Snyder is appointed as the Acting U.S. Trustee for Region 12 effective Jan. 7, 2018. Mr. Snyder is the Assistant U.S. Trustee in the Program’s Des Moines, Iowa, office. Region 12 is headquartered in Cedar Rapids, Iowa, with additional offices in Des Moines; Minneapolis, Minnesota; and Sioux Falls, South Dakota.
Region 18 – Alaska, Idaho, Montana, Oregon, and Washington: Gregory M. Garvin is appointed as the Acting U.S. Trustee for Region 18 effective Dec. 23, 2017. Mr. Garvin is the Assistant U.S. Trustee in the USTP’s Denver office. Region 18 is headquartered in Seattle with additional offices in Anchorage, Alaska; Boise, Idaho; Great Falls, Montana; Eugene and Portland, Oregon; and Spokane, Washington.
Region 21 – Florida, Georgia, Puerto Rico, and the U.S. Virgin Islands: Daniel M. McDermott is appointed as the interim U.S. Trustee for Region 21 effective Jan. 7, 2018. Mr. McDermott also will continue as U.S. Trustee for Region 9 (Michigan and Ohio), where he has served since his appointment in July 2008. Region 21 is headquartered in Atlanta with additional offices in Miami, Orlando, Tallahassee, and Tampa, Florida; Macon and Savannah, Georgia; and San Juan, Puerto Rico.
“On behalf of the U.S. Trustee Program, I extend my deepest gratitude to Ms. Robbins and Mr. Gebhardt for their immeasurable contributions to federal service throughout their 34- and 28-year careers in government, respectively,” said USTP Director Cliff White. “I also am extremely appreciative of our dedicated colleagues who have so graciously agreed to take on additional duties. Their wealth of experience and knowledge will allow the Program to move forward seamlessly in carrying out our important mission.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 92 field office locations.
Alamogordo Felon Sentenced for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Colby Edward Steele, 32, of Alamogordo, N.M., was sentenced today in federal court in Las Cruces, N.M., for violating the federal firearms laws by unlawfully possessing a firearm and ammunition. Steele will serve 41 months in prison followed by three years of supervised release.
Steele was arrested on Feb. 3, 2017, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Feb. 2, 2017. According to the complaint, Steele was arrested in the desert near Alamogordo while attempting to flee from law enforcement officers who were executing a warrant for Steele’s arrest on a parole violation out of Arizona. Officers located a firearm with a chambered round in Steele’s pants pocket and multiple rounds of ammunition in the sand near Steele incident to Steele’s arrest. Steele was prohibited from possessing firearms or ammunition because he previously had been convicted in 2003 of possession of a controlled substance in Otero County, N.M., and in 2008 for being a felon in possession of a firearm in Dona Ana County, N.M.
On May 2, 2017, Steele pled guilty to a felony information charging him with being a felon in possession of a firearm. In entering the guilty plea, Steele admitted that on Feb. 2, 2017, he possessed a handgun and ammunition when he was arrested by law enforcement. Steele acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Las Cruces office of the FBI, the U.S. Marshals Service and the U.S. Border Patrol. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
30 Savannah Residents Charged with Federal Firearms, Drug Trafficking, Robbery, and Related OffensesRead the Press Release
SAVANNAH, GA – Federal indictments and criminal complaints were unsealed yesterday against 30 Savannah residents charged with federal firearms, drug trafficking, robbery, and related offenses. The charges are the result of joint federal, state, and local efforts to reduce violent crime and drug activities in the Savannah area. The focus of this joint operation was the historic Cuyler-Brownsville neighborhood, a small neighborhood near downtown Savannah that has seen a significant rise in crime in the past year.
The Cuyler-Brownsville neighborhood is one of the oldest neighborhoods in Savannah, Georgia, roughly bounded by Anderson Lane, West 31st Street, Montgomery Street, Victory Drive, Ogeechee Road, and Hopkins Street. It is a residential neighborhood that was designed shortly after the Civil War, and it is recognized as a National Register Historic District. The neighborhood contains homes, churches, schools, and businesses. Over the last year, there has been an increase in violence and drug activity in the neighborhood. Some Cuyler-Brownsville residents have expressed to local police that they fear sitting on their own porches because of shootings.
To address the apparent increase in violent crime and drug activities, the Savannah Chatham Metropolitan Police Department (SCMPD), the Georgia Bureau of Investigation (GBI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), began a joint investigation to identify and arrest the criminals operating in and around the neighborhood. Law enforcement used a number of investigative techniques to identify the targets, including undercover purchases of drugs and firearms and extensive surveillance.
In early November 2017, the federal grand jury for the Southern District of Georgia indicted 13 of the 30 defendants identified as a result of this investigation. Those indictments initially were returned under seal. Last week, a federal Magistrate Judge issued sealed criminal complaints and arrest warrants against the other 17 defendants.
On November 28, 2017, local, state, and federal law enforcement officers executed four federal search warrants, two state search warrants, and dozens of arrests warrants. Federal detainers additionally were placed on a number of defendants who are presently incarcerated on state charges. Today, the indictments complaints, and federal warrants were unsealed, and many of the charged defendants made their initial appearance in federal court.
The federal charges and maximum penalties include:
- Felon in Possession of Firearm, 18 U.S.C. § 922(g)(1), which typically carries a maximum sentence of 10 years’ imprisonment. However, if a defendant has three prior convictions for violent crimes or serious drug offenses, then the minimum sentence is 15 years’ imprisonment and the maximum sentence is life imprisonment.
- Drug User in Possession of Firearm, 18 U.S.C. § 922(g)(3), which carries a maximum sentence of 10 years’ imprisonment.
- Distribution of Controlled Substances, and Possession of Controlled Substances with Intent to Distribute, 21 U.S.C. § 841(a)(1), which typically carries a maximum sentence of 20 years’ imprisonment, but may carry increased minimum and maximum terms of imprisonment based on the quantity of controlled substances involved and the prior drug convictions of the defendant.
- Interference with Commerce by Robbery of a Business, 18 U.S.C. § 1951, which carries a potential sentence of 20 years’ imprisonment.
- Carrying a Firearm During and in Relation To a Crime of Violence or Drug Trafficking Crime, 18 U.S.C. § 924(c), which carries a potential sentence of not less than 5 years’ imprisonment, and up to life imprisonment, consecutive to any other sentence imposed.
During the investigation, law enforcement investigators seized dozens of firearms, including semi-automatic pistols, revolvers, assault-style rifles, shotguns, and firearms with extended magazines, along with hundreds of rounds of ammunition. Many of the firearms seized during this investigation had previously been stolen and were connected to prior shootings in Savannah. One stolen firearm that was recovered was used in four separate shootings within the Cuyler-Brownsville neighborhood. Another firearm recovered was used in eleven prior shootings in and around Savannah. Additionally, investigators seized body armor and quantities of numerous controlled substances, including cocaine, crack cocaine, marijuana, MDMA (ecstasy), heroin, and oxycodone.
The Savannah residents charged with federal crimes include:
Jamall Brightwell, age 22,
Frederick Brown, a/k/a “Freddie B,” age 36,
Derrick Butler, a/k/a “Rico,” age 29,
Animahaun Cole, age 43,
Trishon Collins, age 23,
Andre Cooper, a/k/a “Minuteman,” a/k/a “Coop,” age 30,
Deandre Davis, age 31,
Omesimus Franklin, 42,
Baheem Frazier, age 25,
Jadonte Gadsden, a/k/a “Jadonte Hood,” age 20,
George Graham, age 38,
Lorenzo Graham, a/k/a “Zo,” age 32,
Eshon Grant, age 25,
Dennis Grubbs, a/k/a “Lil Red,” age 33,
Julian Harris, a/k/a “Ju Ju,” age 50,
Nathaniel Harvey, age 20,
Darrell McRae, a/k/a “General,” a/k/a “Ghetto,” age 44,
George Truman Polite, age 29,
Joseph Price, age 32,
Emmitt Scott, a/k/a “Scooda,” 32,
John Scott, age 20,
Shawn Seibert, age 26,
Leonard Washington, a/k/a “Guzzi,” age 37,
Floyd Williams, a/k/a “Ricardo Williams,” age 65,
Raheem Williams, a/k/a “Bucket,” age 25,
Raynard Williams, age 20,
Tyrone Williams, a/k/a “T Y,” age 42,
Quentin Wright, age 35,
Deonta Young, a/k/a “Fluid,” a/k/a “Flow,” a/k/a “Lil D,” a/k/a “D,” age 27, and
Larry Young, age 39.
Some of the defendants are alleged in the pending federal charges to have actively employed firearms during criminal activity. For example, Quentin Wright, is charged with brandishing and using a firearm during a robbery of a Savannah business. Deonta Young is charged with possessing a firearm and ammunition that he allegedly used to kill one victim and injure another at a Savannah residence. (Mr. Young also faces additional state charges, including murder, arising from this incident.)
United States Attorney Attorney Bobby L. Christine said, “The federal government is committed to working with local and state law enforcement agencies to make our neighborhoods safe again. Families should be able to sit on their own porches and children able to play in front yards without fear of being hit by a stray bullet. Citizens called for help, and we responded. Let this prosecution serve as notice: violent crime in Savannah will equal lengthy federal jail time.”
“This operation has dismantled a serious criminal enterprise which funneled guns and drugs into our communities,” said ATF Special Agent in Charge Wayne Dixie. “ATF and its law enforcement partners acted quickly and judiciously on information developed during this ten month long investigation. The safety of the public is at the core of ATF’s mission, and we stand at the front line eradicating violent crime from our streets.”
GBI Special Agent in Charge Jamie Jones said, “Cases and outcomes like this are a true testament to the fortitude of agents to pursue and diligently investigate all avenues presented to them. This case is also an example of the teamwork and collaborative efforts that exist among local, state, and federal law enforcement agencies.”
“This operation highlights the importance of the partnerships between law enforcement agencies,” said Chatham County District Attorney Meg Heap. “I would like to thank them for the time and energy that went into making this project successful. The dedication of all the partners has contributed to the reduction of crime in some of the most crime-ridden neighborhoods in our community.”
SCMPD Chief Joseph H. Lumpkin, Sr., said, “The SCMPD certainly appreciates the collaboration, cooperation, and engagement of our local, state, and federal law enforcement partners. We value and appreciate the support of the U.S. Attorney’s Office and the District Attorney’s Office and their commitment to aggressively addressing violent criminals. Many violent offenders were taken off the street in this joint operation, and those numbers will continue to climb. We will keep a laser focus on criminals, groups, and gangs in this community that commit violent acts. We will arrest and prosecute them to the fullest extent of the law to make Savannah-Chatham a safer place.”
Everett Ragan, Director of the Chatham-Savannah Counter Narcotics Team, said, “The success of this investigation further solidifies the importance of partnerships in the fight to rid this community of dangerous drugs and individuals.”
United States Attorney Christine emphasized that an indictment or criminal complaint is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The operation was investigated by ATF, GBI and SCMPD, with assistance from the U.S. Marshals Service, the Chatham-Savannah Counter Narcotics Team (CNT) and the Chatham County Sheriff’s Office. Assistant United States Attorneys Greg Gilluly, Tania Groover and Matthew Josephson are prosecuting these cases for the United States.
Attorney General Jeff Sessions announced last month a recommitment of the United States Department of Justice to Project Safe Neighborhoods (PSN), a program dedicated to bringing together federal, state, and local law enforcement to reduce violent crime and make neighborhoods safer for everyone. The United States Attorney’s Office incorporated key components of the PSN strategy into the Cuyler-Brownsville operation, including strong federal involvement, the cultivation of partnerships with local law enforcement and community stakeholders, targeted enforcement in those areas most affected by violent crime, and outreach efforts designed to prevent violent crime before it occurs.
For any questions, please contact Appellate Chief R. Brian Tanner at (912) 652-4422.
- Felon in Possession of Firearm, 18 U.S.C. § 922(g)(1), which typically carries a maximum sentence of 10 years’ imprisonment. However, if a defendant has three prior convictions for violent crimes or serious drug offenses, then the minimum sentence is 15 years’ imprisonment and the maximum sentence is life imprisonment.
Tuesday 28 November 2017
Weston Man Guilty of Insider TradingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal jury in Hartford has found EDWARD J. KOSINSKI, 70, of Weston, guilty of insider trading offenses. The trial before U.S. District Judge Vanessa L. Bryant began on November 13 and the jury returned its verdict this afternoon.
According to the evidence presented during the trial, on January 29, 2014, KOSINSKI entered into a Clinical Study and Research Agreement with an authorized agent of Regado Biosciences, Inc., formerly a Delaware corporation whose common stock traded on the NASDAQ under the ticker symbol “RGDO.” KOSINSKI, as a principal investigator for Regado’s clinical trial, was required to maintain in strict confidence all confidential information he received from Regado or its agent during the course of the clinical trial. In May 2014, KOSINSKI owned 40,000 shares of Regado common stock.
On June 29, 2014, KOSINSKI and other principal investigators received an email from the clinical trial team stating that there had been several allergic reactions during the clinical trial, the acceptance of new subjects was put on hold and the Data and Safety Monitoring Board (“DSMB”) would be reviewing the recent events. On June 30, 2014, while in possession of this non-public information, KOSINSKI sold his 40,000 shares of Regado common stock for between $6.59 and $7.00 per share. On July 2, 2014, after the close of the market, Regado publicly announced that the DSMB initiated an unplanned review of the clinical trial and patient enrollment had been suspended until the DSMB completed its review. On July 3, 2014, the stock fell $3.95 from the day’s previous closing price, to close at $2.81.
By selling his shares of Regado stock, KOSINSKI avoided a loss of approximately $160,000.
On July 29, 2014, KOSINSKI and other principal investigators received an email from the clinical trial team stating that a death occurred in the clinical trial and that the trial was on hold. On July 31, 2014, while in possession of this material, non-public information, KOSINSKI purchased 50 Regado common stock put option contracts with a strike price of $2.50. On August 25, 2014, before the market opened, Regado publicly announced that it permanently halted the clinical trial and the price of Regado common stock fell approximately 60 percent. KOSINSKI then purchased 5,000 shares of Regado common stock for approximately $1.13 per share and exercised his put options, netting more than $3,000.
KOSINSKI was convicted of two counts of securities fraud-insider trading, an offense that carries a maximum term of imprisonment of 20 years on each count. A sentencing date is not scheduled.
KOSINSKI is released on a $500,000 bond pending sentencing.
This matter was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.
In a related federal civil matter, KOSINSKY has been charged by the Securities and Exchange Commission. (Securities and Exchange Commission v. Edward J. Kosinski 3:16-cv-01322)
Westbrook Man Pleads Guilty to SNAP and WIC Trafficking Conspiracy, Money Laundering and Theft of Government FundsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Ali Ratib Daham, 40, of Westbrook, Maine, pleaded guilty today in U.S. District Court to SNAP and WIC trafficking conspiracy, money laundering and theft of federal MaineCare funds. Daham was charged by indictment on April 24, 2017.
Court documents show that from 2011 to 2017, Daham owned the Ahram Halal Market in Portland. The Supplemental Nutrition Assistance Program (“SNAP”) is a federal program, formerly known as the Food Stamp Program, designed to raise the level of nutrition among low-income households. The Special Supplemental Nutrition Program for Women, Infants and Children (“WIC”) is a federal program that provides supplemental food, health care referrals and nutrition for certain low-income women, and to infants and children up to age five who were found to be nutritionally at risk. Ahram became a SNAP retailer in 2011 and a WIC retailer in 2012.
According to court records, from 2011 through April 2016, Daham conspired with others to give cash to customers at Ahram in exchange for SNAP or WIC benefits plus a fee, in violation of the rules of these programs and federal law. During that period, Ahram received over $4 million in SNAP and WIC receipts, at least $1.4 million of which were obtained illegally. Daham also laundered proceeds of the conspiracy and stole at least $39,000 in MaineCare benefits for himself and his family by underreporting his income and assets to the Maine Department of Health and Human Services (“Maine DHHS”).
“The defendant stole from programs designed to provide nutritional items to some of our most vulnerable community members – low income households, mothers, infants and children,” said U.S. Attorney Halsey B. Frank. “The defendant put his own financial profit above their needs. People who defraud these programs should expect to be brought to justice.”
“Mainers can take comfort knowing that our dedicated Fraud Investigation and Recovery Unit (“FIRU”) team is hard at work every day, ensuring state welfare benefits are going to the Mainers who need them most,” said Maine DHHS Commissioner Ricker Hamilton.
Daham faces up to five years in prison for conspiracy and ten years for theft of government funds, and a fine of up to $250,000 on each count. He faces up to 20 years in prison and a $500,000 fine for money laundering. In a plea agreement, Daham agreed to pay $1,446,372 in restitution, including $80,000 at or prior to sentencing, and agreed to the forfeiture of $80,814 in cash that was seized from him in 2016. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation; the U.S. Department of Agriculture, Office of Inspector General; the Internal Revenue Service-Criminal Investigation; and the Maine DHHS, FIRU.
West Haven Man Who Distributed Xanax that Contributed to Overdose Death is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CLARENCE BELL, also known as “Solo,” 22, of West Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to time served and three years of supervised release for illegally distributing Xanax that contributed to an overdose death last year. Judge Underhill ordered BELL to serve the first year of supervised release in home confinement with electronic monitoring.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, at approximately 6:10 a.m. on May 24, 2016, the West Haven Police Department and emergency medical personnel responded to a residence in West Haven on report of a sudden death of a 20-year-old male. Upon arrival, the initial responding patrol units determined that the death was suspicious in nature and appeared to be drug related. The investigation, which included witness interviews and analysis of phone records and surveillance cameras, revealed that at approximately 10:00 p.m. on May 23, 2016, the victim purchased a quantity of Xanax pills from BELL. The victim them crushed approximately three of pills and snorted the powder.
The victim’s autopsy report states the official cause of death as acute intoxication due to the combined effects of heroin, alprazolam (Xanax) and cocaine.
BELL was arrested on a federal criminal complaint on September 26, 2016, and has been released on a $25,000 bond since September 29, 2016. On May 17, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of Xanax, a Schedule IV controlled substance.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, the DEA’s New Haven Tactical Diversion Squad and the West Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waterbury Man Sentenced to 17 Years in Prison for Enticing Minors to Engage in Sexual Activity on SkypeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN EASTMAN, 50, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 204 months of imprisonment, followed by a lifetime of supervised release, for enticing minors to engage in sexually explicit conduct during online video chats.
According to court documents and statements made in court, between June and November 2012, EASTMAN engaged in video chats with minors over the internet using his computer and online video chatting services such as Skype. During these video chats, EASTMAN enticed the minors to engage in sexually explicit conduct, which EASTMAN recorded or photographed and then saved on his computer. In order to deceive and entice the minors, EASTMAN posed as famous singers and musicians that are popular to teenagers.
As an example, in November 2012, EASTMAN used the screen name justin.bieber727 to communicate via Skype with a female who was under the age of 18. During the video chat, EASTMAN asked the minor to expose herself and pose in a sexually explicit manner. EASTMAN then saved on his computer a still image of the female exposing herself.
EASTMAN has been detained since his arrest on related state charges in May 2013. On March 2, 2017, he pleaded guilty to one count of use of an interstate facility to persuade a minor to engage in unlawful sexual activity.
EASTMAN’s criminal history includes 31 convictions, including convictions for attempted sexual assault in the fourth degree and risk of injury to a minor relating to inappropriate contact he had with a nine-year-old girl approximately 20 years ago. As a result of these convictions, he was placed on the sex offender registry for 10 years.
This matter was investigated by Homeland Security Investigations and the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Upshur County man admits to his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – A Buckhannon, West Virginia man has admitted today to distributing methamphetamines, United States Attorney Bill Powell announced.
Brett Allen Reed, age 23, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine - Aiding and Abetting.” He admitted to aiding another person in distributing methamphetamines in Upshur County in March 2017.
Reed face ups to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
U.S. District Court and U.S. Attorney’s Office warn of jury duty scamRead the Press Release
Scammers pose as U.S. Marshals and threaten arrest if victim does not pay a fine
PRESS RELEASE
Indianapolis, Indiana – November 22, 2017: Chief U.S. District Judge Jane E. Magnus-Stinson and U.S. Attorney Josh Minkler warn the public of a nationwide scam in which the callers pose as U.S. Marshals or other government officials and claim that the victim is about to be arrested for not appearing for jury duty, but can avoid arrest by paying a fine.
The scammers often provide information that seems very convincing, including the real names of federal judges or court employees, the location of the courthouse, and case and badge numbers. The victim has every reason to believe the call is legitimate. The caller then tells the victim they can avoid arrest by paying an immediate fine and walks them through purchasing a prepaid debit or gift card or making an electronic payment to satisfy the “fine.”
On behalf of the U.S. District Court for the Southern District of Indiana, Chief Judge Magnus-Stinson said, “The people conducting this scam can be very convincing. They call their law-abiding victims and terrify them with threats of arrest and jail unless they pay up immediately. The U.S. Courts do not operate this way. In no instance will a court official, U.S. Marshal, or other government employee contact someone and demand payment or personal information by phone or email. This is a scam, and a lot of people are being hurt.”
“Those who take advantage of trusting citizens must know that there is zero tolerance for this type of behavior,” said Minkler. “Fraudsters and other scammers will face the full force of federal law enforcement for such activity.”
Residents of the Southern District of Indiana who believe they have been the victim of such a scam are encouraged to report the incident to the District Court Clerk’s Office at 317-229-3700; the Federal Trade Commission at https://www.ftccomplaintassistant.gov; and the U. S. Marshals Service at 317-226-6566.
Here is additional information on things to remember, who to call, and what to do if you are contacted by a scammer:
A court will never ask for a credit/debit card number, wire transfers, or bank routing numbers over the phone for any purpose.
A prospective juror who disregards a summons will be contacted by the District Court Clerk’s Office by mail and may, in certain circumstances, be ordered to appear before a judge.
A fine will never be imposed until after an individual has appeared in court and been given the opportunity to explain a failure to appear.
Do not divulge personal information or financial information to unknown callers.
Report scams to the District Court Clerk’s Office, U.S. Marshals Service, or Federal Trade Commission.
You can remain anonymous when you report.
You can authenticate a call by contacting the Clerk’s Office of the U.S. District Court in Indianapolis at (317) 229-3700 to verify that you were not summoned for jury duty and that the scam call did not come from the court.
###
Three Individuals Charged in Florida-based Investment Fraud Scheme that Defrauded over 150 InvestorsRead the Press Release
A grand jury in Miami indicted three individuals for their alleged participation in an investment fraud scheme that targeted investors throughout the United States, defrauding them out of approximately $15 million. The main office operated out of Sunrise, Florida.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Daniel Joseph Touizer, 44, of Aventura, Saul Daniel Suster, 65, of Sunny Isles, and John Kevin Reech, 55 of Delray Beach, were charged with conspiracy to commit mail fraud and wire fraud and substantive mail fraud charges. In addition, Touizer was charged with substantive wire fraud charges as well as conspiracy to commit money laundering and substantive money laundering charges.
The Indictment charges a conspiracy involving the sale of stock in various investment companies owned and operated by Touizer. According to the Indictment, from July 2010 to November 2017, the defendants solicited investors located throughout the United States to buy shares or ownership units in several companies, including, Omni Guard, LLC, Infinity Diamonds, LLC, Infinity Direct Insurance, LLC, d/b/a Covida Holdings, LLC, Wheat Capital Management, LLC, Wheat Self-Storage Partners I, LP, Wheat Self-Storage II, LP, and Wheat Self-Storage Partners III, LP (collectively referred to as the “Investment Companies”).
The materially false statements, included, but were not limited to, statements that the Investment Companies were successful and profitable and would provide a “safe and profitable investment,” that the value of the investment would increase significantly, investor funds would be used for sales and marketing, working capital and general corporate purposes, and that Touizer did not personally take a salary or draw on funds invested in certain Investment Companies.
As stated in the Indictment, depending on which Investment Company stock they offered, the defendants and their co-conspirators’ stole between 50% and 80% of investor proceeds in undisclosed commissions and fees.
Mr. Greenberg commended the investigative efforts of the FBI. Mr. Greenberg also thanked the Florida Office of Financial Regulation. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Individuals who believe that they may be a victim in this case should contact the FBI at www.fbi.gov for more information.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Suburban Pittsburgh Man Pleads Guilty to Hate CrimeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to one charge of violating the Hate Crimes Prevention Act, Acting United States Attorney Soo C. Song announced today.
Jeffrey Allen Burgess, age 55, of Pittsburgh, PA, pleaded guilty to one-count before United States District Judge Nora Barry Fischer.
According to information presented to the Court, on or about November 22, 2016, Burgess violated the Hate Crimes Prevention Act by willfully causing bodily injury to A.M. because of A.M.’s actual and perceived race, color, and national origin.
Judge Fischer scheduled sentencing for March 30, 2018 at 4:45 p.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Rachael L. Dizard and Civil Rights Division Trial Attorney Tona Boyd are prosecuting this case.
The Federal Bureau of Investigation and the Bethel Park Police Department conducted the investigation that led to the prosecution of Burgess.
Sisters Who Defrauded Postal Service Sentenced to Five and Four Years in Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – BIRDIE JO HOAKS, 47, and BECKY JO HOAKS, 47, both of Choctaw, Oklahoma, were sentenced today to 60 and 48 months respectively in federal prison for conspiring to steal U.S. postage stamps, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On May 18, 2017, the defendants, who are identical twins, were indicted on one count of conspiracy and one count each of theft of government property. The Indictment alleged that from June 2016 through February 2017, they opened personal checking accounts at various banks, using small cash deposits ranging from $5 to $200. Working together, they wrote dozens of bogus checks—i.e., checks backed by insufficient funds and checks written on closed accounts—at United States post offices and contract postal units throughout the Western District of Oklahoma to obtain thousands of U.S. postage stamps.
Both defendants pleaded guilty to conspiracy on June 27, 2017. Each agreed to pay $61,993.38 in restitution, mostly to the U.S. Postal Service.
Today U.S. District Judge David L. Russell sentenced Birdie Jo Hoaks to 60 months in prison, the statutory maximum. He sentenced Becky Jo Hoaks to 48 months in prison. Both women will serve three years of supervised release after their prison terms.
The sisters have extensive criminal histories of fraud spanning more than two decades and in jurisdictions from New York to California. In May 2007, for example, they were featured in a Chicago Tribune article entitled "The Incredible True-Life (mis)Adventures of the Hoaks Sisters: Deception, Confusion, Theft, Betrayal, Foot Surgery." And in July 2012, Birdie Jo Hoaks was the subject of a Dateline NBC investigative report. These are their first federal criminal convictions.
This case is the result of an investigation conducted by United States Postal Inspection Service. Assistant U.S. Attorney Amanda Maxfield Green prosecuted the case.
Rhode Island Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON - A Rhode Island man pleaded guilty today in federal court in Boston to armed bank robbery.
Michael A. Dirocco, 35, pleaded guilty to one count of armed bank robbery. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for March 6, 2018.
On Nov. 14, 2014, two men entered a branch of the Webster Bank in Seekonk, Mass. One of the men vaulted over the teller’s counter and started taking money from the drawers. The other man brandished what appeared to be a black semi-automatic handgun and pointed it at the tellers. The two then fled the scene in a large black SUV with $10,065 in stolen cash.
A short time later, an individual in Rhode Island observed two men removing license plates from a large black SUV and exchanging them with Rhode Island plates. The individual was able to record the Rhode Island license plate numbers and provide them to law enforcement officers. The officers then spoke to the registered owner of the vehicle with Rhode Island license plates and determined that the owner’s son, Dirocco, was operating her vehicle. When officers in Rhode Island later located the black SUV, Dirocco was no longer the operator. They learned that Dirocco was now using a green pickup truck, which was later observed heading in their direction. Upon seeing police, the truck’s driver, later confirmed to be Dirocco, stopped the vehicle, made an abrupt U-turn, and sped off, resulting in an extended car chase that culminated with Dirocco crashing the vehicle into a tree. Dirocco matched the description of the gun wielding bank robber and was subsequently arrested.
The charging statute provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Bristol County District Attorney Thomas M. Quinn made the announcement today. The Rhode Island State Police and Burrillville, R.I., Cranston, R.I., Pawtucket, R.I., and Seekonk, Mass., Police Departments provided valuable assistance. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Region 16 Education Service Center Employee Admits to Felony Child Pornography ChargeRead the Press Release
AMARILLO, Texas — Neal Edmond Brown, 46, of Canyon, Texas, appeared this afternoon before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to a superseding information charging one count of possession of prepubescent child pornography, announced Erin Nealy Cox, United States Attorney for the Northern District of Texas.
Brown faces a maximum penalty of not more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Brown has been in custody since his arrest in October 2017 and is scheduled to be sentenced on March 26, 2018.
According to the plea agreement factual resume filed in the case, the National Center for Missing and Exploited Children (NCMEC) received information that an image depicting child pornography had been uploaded using the Skype program. Law enforcement discovered that the IP address responsible for uploading the image belonged to the Region 16 Education Service Center (ESC) in Amarillo, Texas. With the assistance from Region 16 ESC personnel, agents were able to verify that Brown, the Director of School Finance Operations at Region 16 ESC, was uploading child pornography from his work computer.
On June 21, 2017, a search warrant was executed at Region 16 ESC and agents seized several electronic devices located in Brown’s office. A forensic examination revealed that the electronic devices contained over 900 images of child pornography and over 200 videos of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and Amarillo Police Department are investigating the case. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
# # #
Pittsburgh Man Sentenced to Prison after Pleading Guilty to Possessing a Stolen GunRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, waived prosecution by Indictment and pleaded guilty to an Information in Pittsburgh, Pennsylvania, on a charge of Possession of a Stolen Firearm, and was sentenced to 42 months imprisonment followed by 3 years supervised release, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Richard Graves, age 35, of Pittsburgh, Pennsylvania.
According to the information provided to the Court, on or about April 15, 2016, Graves knowingly possessed a stolen firearm.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes. Acting U.S. Attorney Song commended the Bureau of Alcohol, Tobacco, and Firearms, the Pittsburgh Bureau of Police, and the Penn Hills Police Department, for conducting the investigation leading to the successful prosecution of Graves.
Orange Landscaper Pleads Guilty to Federal Tax OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS CAPECELATRO, 62, of Orange, waived his right to indictment and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of willful failure to account for and pay over more than $66,000 in employment taxes.
According to court documents and statements made in court, CAPECELATRO has owned and operated an unincorporated landscaping business known as Chestnut Ridge Landscaping (“Chestnut Ridge”) since approximately 1984. From approximately October 2010 through 2013, CAPECELATRO caused Chestnut Ridge to withhold $42,322.64 in payroll taxes from its employees but failed to truthfully account for and pay over that money to the Internal Revenue Service. During that same period, CAPECELATRO failed to pay $24,089.28 in federal employment taxes and $1,347.54 in federal unemployment taxes that Chestnut Ridge owed. Chestnut Ridge also failed to file quarterly employment tax returns (Forms 941) with the IRS.
The total tax loss to the U.S. Treasury from October 2010 through 2013 was $67,759.46.
Judge Shea scheduled sentencing for February 21, 2018, at which time CAPECELATRO faces a maximum term of imprisonment of five years and a fine of up to $10,000. CAPECELATRO made restitution of $67,759.46 to the IRS in May 2017.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
New York Woman Admits Fraud in Investment SchemeRead the Press Release
NEWARK, N.J. – A New York woman today admitted running an investment scheme that defrauded victims of hundreds of thousands of dollars, Acting U.S. Attorney William E. Fitzpatrick announced.
Alisa Adler, 57, of New York, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with two counts of wire fraud.
According to documents filed Information:
From January 2009 through August 2014, Adler took loans and investments from multiple victims and told them that their money would be used for certain specified investments through her company, ASG Real Estate Services Group Inc. To induce potential victim investors to give her money, Adler provided them with promotional materials and other documents, and told them that their money would be repaid within a certain amount of time. Adler did not use the majority of invested funds for the specific real estate investments she had presented to the investors. Instead, she used it to, among other things, repay prior investors and pay her own personal expenses.
Each count of wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the amount of the loss caused by the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Jacob Laufer Esq., New York