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Monday 27 November 2017
Attorney Pleads Guilty to Federal Charges Stemming from $50 Million Scheme that Defrauded the EB-5 Visa Program and Chinese InvestorsRead the Press Release
SANTA ANA, California – An attorney who lives in El Monte pleaded guilty today to federal fraud and money laundering charges for participating in a multi-faceted scheme that collected more than $50 million from foreign investors seeking “Green Cards” through the EB-5 visa program.
Victoria Chan [陳莹莹], who along with her father operated a San Gabriel-based business called California Investment Immigration Fund, LLC (CIIF), admitted that she exploited the EB-5 visa program,which provides lawful permanent residence – commonly known as a “Green Card” – to foreign nationals who invest at least $500,000 in a domestic business that creates 10 new American jobs.
Chan admitted that much of the money collected by CIIF from the primarily Chinese investors either was stolen by the conspirators or was refunded to the foreign nationals. This undermined one of the basic principles of the EB-5 program because the money was not actually invested in the United States, nor did it lead to the creation of 10 new American full-time jobs, as required under the program.
Chan admitted submitting about 130 fraudulent EB-5 visa applications to federal immigration authorities, and many of those applications falsely claimed that the foreign investments were being used to fund construction projects that were creating new jobs.
As part of the wire fraud conspiracy, Chan admitted that she fraudulently used hundreds of thousands of dollars in EB-5 investor funds to purchase homes in her name, including residential properties each worth nearly $1 million in Diamond Bar and Rancho Cucamonga.
“This fraud scheme subverted the federal immigration process, which resulted in dozens of foreign nationals obtaining green cards they were not entitled to receive,” said Acting United States Attorney Sandra R. Brown. “In addition to the millions of dollars they charged in fees, Chan and her father personally benefited by wrongfully using the EB-5 investment funds to purchase expensive homes in their names. We are committed to preserving the integrity of this nation’s immigration system as part of our overarching dedication to protecting the national security of the United States.”
Chan, 35, pleaded guilty to conspiracy to commit visa fraud, conspiracy to commit wire fraud, and international money laundering. Chan pleaded guilty before United States District Judge Cormac J. Carney, who is scheduled to sentence the defendant on July 9, 2018.
“Defendant Chan got rich by operating a long-term fraudulent scheme during which she manipulated a government program intended to encourage investors and stimulate the U.S. economy,” said Danny Kennedy, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our federal partners will continue to investigate allegations of visa fraud which damage the credibility of immigration incentives and discourage foreign investment.”
“Our message is clear – America’s legal immigration system is not for sale,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “In addition to posing significant security and safety vulnerabilities that could be exploited by criminals and others who pose a danger to our community, immigration benefit fraud undermines the integrity of our legal immigration process and penalizes those who abide by the law. HSI will work closely with our law enforcement partners to ensure that those who would exploit our nation’s immigration system for their own enrichment are brought to justice.”
In relation to this case, Chan, along with other people and entities related to her, agreed to forfeit to the government eight properties worth nearly $25 million that federal prosecutors linked to the fraudulent scheme. A ninth property named in an asset forfeiture complaint related to the scheme, a parcel in Rancho Cucamonga, is expected to be forfeited in the coming weeks.
Chan pleaded guilty to charges contained in a criminal information filed earlier this month. According to the information and a related plea agreement, Chan played a key role in the scheme by submitting fraudulent visa applications to U.S. Citizenship and Immigration Services and refunding the purported investments by wire transferring millions of dollars to Chinese nationals.
Members of the conspiracy convinced more than 100 Chinese nationals to invest over $50 million in CIIF and related companies, according to court documents. Some of the foreign nationals were on China’s “100 Most Wanted List” after being charged with crimes such as bribery.
“Government programs designed to provide a pathway to permanent legal residency for foreigners and full-time jobs for Americans will not be exploited by greed,” stated IRS Criminal Investigation’s Special Agent in Charge, R. Damon Rowe. “Today’s guilty plea is the result of untangling a global web of complex financial transactions used by Ms. Chan to facilitate her immigration fraud scheme. IRS Criminal Investigation is proud to share its hallmark financial investigative expertise in this and other increasingly sophisticated financial investigations.”
The scheme related to CIIF started in 2008 in Garden Grove and was later relocated to San Gabriel. The operation was shut down in April when federal authorities executed a series of search warrants on CIIF’s office and Chan’s residence.
As a result of the today’s guilty pleas, Chan faces a statutory maximum sentence of 45 years in federal prison.
The ongoing investigation into the EB-5 fraud scheme is being conducted by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and IRS-Criminal Investigation. United States Citizenship and Immigration Services (USCIS) also provided valuable assistance in the investigation and prosecution of the case.
USCIS Los Angeles District Director Donna Campagnolo stated: “This is an excellent example of federal agencies working together to combat fraud and maintain the integrity of our immigration system. USCIS is committed to providing information to our investigative colleagues to bring fraudsters to justice.”
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting the criminal case. The asset forfeiture complaints were filed by Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section.
Anchorage Man Sentenced to 20 Years in Prison for Distribution of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man was sentenced in federal court to 20 years for distributing child pornography.
Jay Leavitt, 27, of Anchorage, was sentenced today by U.S. District Judge Sharon L. Gleason to serve 20 years in prison. Upon release, Leavitt will be under supervised release for the remainder of his lifetime.
According to Assistant U.S. Attorney Jonas Walker, Leavitt was previously sentenced in state court to three years of active imprisonment for attempted sexual abuse of a minor. Shortly after being released, Leavitt began distributing child pornography using a smartphone, even though he was under probation supervision.
Specifically, between March 27, 2017, and April 7, 2017, Leavitt used a computer to upload 55 images to his Twitter and Gmail accounts, and eight video clips, knowing that those images and videos depicted minors engaged in sexually explicit conduct.
Leavitt’s state probation supervision included polygraph examinations, also known as lie-detector tests. Leavitt successfully deceived a lie detector test by falsely denying committing the new offense.
Judge Gleason remarked that the 20-year sentence was imposed due to the seriousness of the crime. The Court considered the victim-impact statements presented by victims of child pornography and their guardians.
The Federal Bureau of Investigation (FBI) and Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines federal, state and local resources to better identify, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Alabama Man Pleads Guilty to Producing Child PornographyRead the Press Release
An Alabama man pleaded guilty today to producing child pornography between 1997 and 1998, announced Principal Deputy Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town of the Northern District of Alabama.
Charles Mark McCormack, 54, of Muscle Shoals, Alabama, pleaded guilty to one count of production of child pornography before Chief U.S. District Judge Karon O. Bowdre of the Northern District of Alabama. Sentencing is set for April 3, 2018.
According to admissions made in connection with his guilty plea, between Aug. 1, 1997, and Oct. 15, 1998, McCormack used a minor, born in or about 1992, to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct, by videotaping the minor urinating in a bathroom in his residence in Colbert County, Alabama. McCormack was employed as a kindergarten teacher during a May 2016 search of his residence, which resulted in law enforcement discovering fewer than 25 images of nude and topless females believed to constitute child pornography and a suitcase containing young girls’ panties.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating this case with the cooperation of the Georgia Bureau of Investigation. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Daniel J. Fortune of the Northern District of Alabama are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Friday 24 November 2017
Philadelphia Man Charged in Superseding Indictment with Enhanced Penalty Provision for Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David Serrano-Munoz, age 38, of Philadelphia, Pennsylvania, was charged on November 22, 2017, in a superseding indictment for offenses involving the exploitation of a minor.
According to United States Attorney Bruce D. Brandler, Serrano-Munoz is alleged to have coerced a minor to take sexually explicit photographs of herself and transmit those images to him over the internet. He was charged in a three-count indictment in July with production of child pornography, receipt and distribution of child pornography, and possession of child pornography. The superseding indictment alleges Serrano-Munoz was a registered sex offender at the time he allegedly committed the child pornography offenses. The indictment also seeks forfeiture of all electronic equipment used to take those images.
This case was investigated by the Pennsylvania State Police with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the production of child pornography offense is 50 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Those charges carry a mandatory minimum term of imprisonment of 25 years. The receipt and distribution of child pornography charge is punishable by a maximum of 40 years in prison and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 15 years. The possession of child pornography charge is punishable by a maximum of 20 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 10 years. The penalty for committing an offense against a minor while being a registered sex offender is 10 years in addition to the penalty imposed for the underlying offense. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Benny Rodall, age 48, of Harrisburg, Pennsylvania, was indicted on November 22, 2017, by a federal grand jury with unlawful possession of a firearm and drug distribution,
According to United States Attorney Bruce D. Brandler, the indictment alleges that on or about July 15, 2017, Rodall unlawfully possessed a Smith and Wesson 38 Special firearm with an obliterated serial number as a previously convicted felon. Rodall is also charged with possessing the firearm in furtherance of drug trafficking, and possession with intent to distribute cocaine base, also known as crack cocaine, heroin, and clonazepam pills on July 15, 2017.
The case was investigated by the Harrisburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for unlawful possession of firearm by a previously convicted felon is 10 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for possessing a firearm with an obliterated serial number is 5 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for possession of a firearm in furtherance of drug trafficking is life in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for possession with intent to distribute heroin and cocaine base is 20 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for possession with intent to distribute clonazepam is 5 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately on November 22, 2017, by a federal grand jury for illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Fausto Lubo-Castillo, age 33, of Mexico, was previously deported from the United States to Mexico in September 2008. He is alleged to have illegally re-entered the United States sometime after September 2008, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Andres DeLeon-Cedillo, age 25, of Guatemala, was previously deported from the United States to Guatemala in June 2012. He is alleged to have illegally re-entered the United States sometime after June 2012, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers
Under federal law, Lubo-Castillo and DeLeon-Cedillo, both face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
Marcelo Barranco-Ramirez, age 28, of Mexico, was previously deported from the United States to Mexico on three occasions, April 2007, October 2014, March 2015. He is alleged to have illegally re-entered the United States sometime after March 2015, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers. In October 2014, he was convicted in the Middle District of Pennsylvania of Illegal Reentry by a Previously Deported Alien, an offense which subjects him to enhanced penalties in the current case.
Because of Barranco-Ramirez’s previous conviction, under federal law he faces a maximum penalty of 10 years of imprisonment, a term of supervised release following imprisonment, and a fine.
Mario Peralta-Lopez, age 32, of Mexico, was previously deported from the United States to Mexico in June 2013 and May 2016. He is alleged to have illegally re-entered the United States sometime after May 2016 and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers. In August 2015, he was convicted in the Dauphin County Court of Common Pleas of Delivery or Possession With the Intent to Deliver Cocaine, an offense which subjects him to enhanced penalties in the current case.
Because of Peralta-Lopez’s previous conviction, under federal law he faces a maximum penalty of 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Columbia Man Indicted for Illegal Possession of a FirearmRead the Press Release
JEFFERSON CITY, Mo. – Thomas M. Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man was indicted by a federal grand jury for possession of a firearm by a convicted felon. That indictment was unsealed today when Gurley appeared before a federal magistrate judge. Gurley remains in federal custody pending his formal arraignment and detention hearing set for November 28, 2017, at 2:45 p.m.
The indictment alleges that between April 1, 2016 and May 22, 2017, the dates being approximate, within Boone County, in the Western District of Missouri, Gurley knowingly possessed a Mossburg, Model 500 A, 12 gauge shotgun and ammunition.
According to the government’s motion to detain, the defendant has a prior felony conviction from North Carolina for felonious restraint in 1997 and is alleged to have shot and killed another individual during the timeframe of the indictment.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant United States Attorney Lawrence E. Miller. It was investigated by the Columbia, Missouri, Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Wednesday 22 November 2017
Wasilla Man Sentenced for Sex TraffickingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Terry Lee Keehn, II, 44, resident of Wasilla, Alaska, was sentenced yesterday by U.S. District Judge Timothy M. Burgess to serve 13 years, 10 months in prison, to be followed by a 10-year term of supervised release, for two counts of sex trafficking through force, fraud, and coercion.
According to documents filed in the case, on Jan. 13, 2016, Alaska State Troopers (AST) served a state search warrant on the defendant’s vehicle and house for evidence of the sex trafficking and drug crimes. During a search of the defendant’s truck, law enforcement officers found a backpack with drug paraphernalia, including a digital scale, glass pipes, and unused baggies commonly used for distribution of drugs. In a backpack in the truck was methamphetamine and heroin.
During the drug investigation, Troopers identified several women the defendant recruited to work for him as prostitutes in and around Anchorage and the Matanuska-Susitna Valley. In his recruitment, the defendant targeted drug addicted women and recruited them to work for him by promising safe shelter and help getting off heroin. In some instances, the defendant substituted methamphetamine for heroin, continuing the victims’ dependence on controlled substances. In exchange for lodging, food, and drugs, the victims worked as prostitutes for the defendant, providing him with money and sexual favors.
Judge Burgess based his sentence primarily on the seriousness of the offense, the need to deter others, and the need to protect the public. “There are a lot of serious crimes in the world, but [sex trafficking] is up there as being among the most serious,” said Judge Burgess. Judge Burgess noted that the defendant targeted drug-addicted victims, and used that drug dependency “for his own benefit.” The defendant’s conduct toward his victims was “incredibly manipulative, coercive, and demeaning,” said Judge Burgess, and was “going to impact [his victims] probably for the rest of their lives.”
The case was the product of an investigation by the Alaska State Troopers, Special Crimes Investigation Unit, and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Kyle Reardon prosecuted the case.
Vincennes tax preparer sentenced in fraud schemeRead the Press Release
PRESS RELEASE
Evansville – United States Attorney Josh Minkler announced today that a tax preparation business owner was sentenced in federal court for her preparation of over 350 false tax returns in 2015, 2016, and 2017. Deborah L. Richards, 56, previously pleaded guilty to three counts willfully aiding and assisting in the preparation of false tax returns. Richards was sentenced to 48 months (four years) imprisonment by U.S. District Judge Richard L. Young.
“We have all learned to trust our tax preparer to tell us what we rightfully owe or are due from the government,” said Minkler. “Ms. Richards betrayed that trust and because of her greed, is going to have four years in the Bureau of Prisons to think about her actions.”
In 2015, Richards worked for Desirable Tax Services in Washington, Indiana, and prepared tax returns for clients. Then in 2016, Richards established Terry’s Tax Service in Vincennes, Indiana, where prepared tax returns for clients in 2016 and 2017.
Richards claimed false education credits, false American Opportunity credits, and false itemized deductions to inflate refunds due to her clients. In addition, she provided altered copies of the tax returns to her clients which were different from the tax returns she caused to be filed with the Internal Revenue Service. Richards then charged increased fees for her preparation of these fraudulent tax returns. According to Assistant U.S. Attorney James Warden who prosecuted this case for the government, Richards earned over $250,000 in fees for her fraudulent tax preparation work.
As a result of Richards’ efforts, more than 350 false federal income tax returns were filed with the IRS between 2014 and 2017, which resulted in a loss to the Internal Revenue Service and the American taxpayers of $550,001.
Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation, said, “IRS-CI does not tolerate abuse of the U.S. tax system to enrich the greedy at the expense of the honest. Ms. Richards abused her position of trust with the taxpayers she represented for her own personal gain. IRS special agents identified Richards’ scheme, collected the evidence, and today, obtained justice for the American taxpayer.”
Judge Young ordered Richards to pay restitution to the Internal Revenue Service in the amount of $550,001.
Richards must serve one year of supervised release following her sentence.
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Two Syracuse Men Indicted for Heroin and Gun ChargesRead the Press Release
SYRACUSE, NEW YORK – Jose Matos, age 29, and Jeremias Matos, age 28, both of Syracuse, were arraigned yesterday on an indictment charging them with conspiracy to possess with intent to distribute heroin and for possessing a firearm in relation to a drug trafficking crime. Jeremias Matos is also charged with being a felon in possession of a firearm.
The announcement was made by Acting United States Attorney Grant C. Jaquith, Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA), and Syracuse Police Chief Frank Fowler.
The indictment charges both defendants with conspiring to possess with intent to distribute 100 grams or more of heroin from approximately August 2012 until April 2015. The indictment also charges Jose Matos individually with possessing a .45 caliber handgun and a 12-gauge shotgun in furtherance of a drug trafficking crime. The indictment further charges Jeremias Matos individually with illegally possessing a .45 caliber handgun in furtherance of a drug trafficking crime, and with being a previously convicted felon in possession of a firearm.
If convicted, the defendants each face at least 5 years and up to 40 years in prison, a fine of up to $5 million, and a term of post-imprisonment supervised release of at least 4 years and up to life, in connection with the conspiracy to possess with intent to distribute heroin charge. Both men face potential consecutive sentences of 5 years in prison if convicted of possession of a firearm in furtherance of a drug trafficking crime. Jeremias Matos also faces a sentence of up to 10 years in prison and a fine of up to $250,000 if convicted of being a felon in possession of a firearm. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The defendants were arraigned yesterday in Syracuse, New York, before United States Magistrate Judge Thérèse Wiley Dancks, who ordered them detained pending a trial scheduled for January 16, 2018.
This case is being investigated by the Drug Enforcement Administration (DEA) and the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
Tobacco Companies to Begin Issuing Court-Ordered Statements in Tobacco Racketeering SuitRead the Press Release
Several of America’s major cigarette manufacturers will begin issuing court-ordered “corrective statements” in major daily newspapers and on television beginning Friday, November 24, 2017. The statements will clarify for the public the effects of tobacco use and will appear in full-page print ads in the editions of more than 50 newspapers, including the Wall Street Journal, USA Today, New York Times, and Washington Post over four months. The same statements will also appear in television markets across the country beginning the following week for the next year.
Following a nine-month civil racketeering trial, the U.S. District Court for the District of Columbia ordered the tobacco companies, including Altria, its Philip Morris USA subsidiary, and R.J. Reynolds Tobacco, to issue the corrective statements as part of a permanent injunction in 2006 designed to “prevent and restrain” further deception of the American people regarding tobacco use. Multiple appeals following the 2006 permanent injunction delayed issuance of the statements until now.
In its 2006 permanent injunction, the district court found that “Defendants lied, misrepresented, and deceived the American public,” on a host of topics. These topics included:
- Fraudulently distorting and minimizing the health effects of smoking;
- Falsely denying and minimizing the addictiveness of smoking and nicotine;
- Designing cigarettes to create addiction;
- Fraudulently presenting light/low-tar cigarettes as less dangerous;
- Falsely denying marketing to youth; and
- Falsely denying the hazards of secondhand smoke.
The court concluded that, absent court action, the tobacco companies were “reasonably likely” to continue engaging in this behavior and imposed a permanent injunction to prevent future violations. Among other things, this injunction requires the tobacco companies to issue these “corrective statements” in multiple mediums: newspaper, television, company websites, and package “onserts.” Another placement for the statements, at retail point-of-sale, was set aside on appeal by the D.C. Circuit, and whether to reinstate it remains pending before the district court.
Numerous Justice Department attorneys have played a role in this case over the years. In the most recent phase of the litigation, the United States was represented by Trial Attorneys Daniel K. Crane-Hirsch and John (Josh) Burke of the Justice Department’s Consumer Protection Branch; Linda McMahon of the Commercial Litigation Branch; and Melissa Patterson, Alisa Klein, Mark Stern, and Lewis Yelin of the Civil Appellate Staff.
Six public health organizations – the American Cancer Society, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights, National African American Tobacco Prevention Network and the Tobacco-Free Kids Action Fund – joined the Department of Justice case as intervenors in 2005.
Tax Fraud Fugitive Sentenced to over Eight Years for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Everett Taylor to eight years, six months in federal prison for theft of government funds and aggravated identify theft. The Court also ordered him to forfeit real property located in Tampa, which is traceable to the offenses. In addition, the Court entered a money judgment in the amount of $124,521, the proceeds of the charged criminal conduct.
Everett Taylor pleaded guilty on July 3, 2017.
According to court documents, Taylor and his brother, Robert Earl Taylor, were involved in a scheme to file false and fraudulent income tax returns with the Internal Revenue Service (IRS) in order to generate large refunds. The investigation revealed that the IRS had received fraudulent tax returns and had issued refunds totaling $304,411.24 based on fraudulent tax filings in the amount of $575,884.24. Pending trial, Everett Taylor was released from detention and ordered to home confinement and electronic monitoring. In June 2015, he removed his electronic monitoring device and fled from pretrial release. He remained a fugitive until mid-2017.
In January 2015, Robert Earl Taylor was sentenced to eight months of home detention for conspiracy to commit wire fraud, theft of government property, and making fraudulent claims to the Department of the Treasury.
This case was investigated by the Internal Revenue Service – Criminal Investigation and U.S. Secret Service. It was prosecuted by Assistant United States Attorneys Adam M. Saltzman and Sara C. Sweeney.
Tampa Couple Sentenced to Life and 40 Years in Prison for Sexually Abusing 7-Year-Old ChildRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington today sentenced Richmond Joseph McDonald (40, Tampa) and Shauna Maryann Boselli (25, Tampa) to life, and 40 years in federal prison, respectively, for enticement of a minor to engage in sexually explicit conduct. McDonald and Boselli previously pleaded guilty.
According to court documents, McDonald and his wife, Boselli, engaged in sexual activity with a 7-year-old girl, with the consent of her relative. McDonald and Boselli engaged in explicit conversation, via the Internet and text messages, with the minor’s relative regarding sexual acts with the child victim.
On July 19, 2016, the child’s relative brought the child to Tampa to meet McDonald and Boselli for the purpose of all three engaging in sex acts with the victim. The relative took the child to the Lowry Park Zoo in Tampa, where they met with McDonald and Boselli. After spending time at the zoo and taking the child for ice cream, McDonald and Boselli led the relative and the child to their house in Tampa. While at the house, McDonald and Boselli sexually abused the child while the relative watched. Afterwards, the relative and the child returned to their hotel in Tampa. On July 21, 2016, McDonald and Boselli met with the relative and child at their hotel, where couple engaged in multiple sex acts with the victim.
Federal agents with Homeland Security Investigations executed a federal search warrant at the defendants’ residence and seized numerous electronic devices and the vehicle that McDonald and Boselli had used in the commission of the offense. A forensic analysis on all of the devices revealed that McDonald was in possession of over 1,300 child-pornographic images, including images and videos of the child victim performing sex acts.
The victim’s relative was prosecuted in federal court, in Orlando, and was previously sentenced to 75 years in prison.
“These crimes are tragic and heart breaking beyond comprehension,” said HSI Tampa Special Agent in Charge James C. Spero. “Our greatest hope is that putting this predatory couple behind bars can help this young girl in her recovery process.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Josephine W. Thomas.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Standing Rock Woman Sentenced for MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Standing Rock, South Dakota, woman convicted of Second Degree Murder was sentenced on November 20, 2017, by U.S. District Judge Charles B. Kornmann.
Desarae Makes Him First, age 26, was sentenced to 365 months of custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Makes Him First was indicted by a federal grand jury on October 18, 2016. She pled guilty on July 20, 2017.
The conviction stems from a series of events that occurred between October 11 and October 12, 2016, when Makes Him First participated in, and failed to protect her five-year-old daughter from, severe repeated physical abuse. Though slight bruising was initially detected by staff at the Wakpala, South Dakota, school and South Dakota Department of Social Services, the majority of the injuries were caused over an extended weekend.
Over the next several days, the young child was hit about the head, neck, chest, abdomen, legs, and arms. As a result of the beatings, the young child suffered severe abdominal injuries, which led to internal bleeding and ultimately death. Makes Him First brought her child to the Mobridge Hospital where staff noticed she was not breathing and “cool” to the touch. Resuscitative efforts were not successful. Makes Him First ultimately confessed to authorities that she and her live-in boyfriend were responsible for the injuries that led to the death of her child.
This case was investigated by the Federal Bureau of Investigation, and the Bureau of Indian Affairs - Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Makes Him First was immediately turned over to the custody of the U.S. Marshals Service to begin serving her sentence.
Springfield Couple Sentenced for Sex TraffickingRead the Press Release
BOSTON – A Springfield couple was sentenced yesterday in federal court for operating a prostitution business advertised as “Sinful Innocence.”
U.S. District Court Judge Mark G. Mastroianni sentenced Milford Lewis, 37, to 12 years in prison and five years of supervised release, and his wife, Tiana Lewis, 32, to six years in prison and five years of supervised release. In July 2017, the pair agreed to plead guilty to three counts of inducing travel to engage in prostitution, one count of transporting an individual to engage in prostitution and four counts of extortionate threats.
Milford and Tiana Lewis purported to be the CEOs of an adult talent agency called Sinful Innocence. Through the internet, the couple enticed young women to work as models, adult entertainers, adult pornography actors and escorts. The pair convinced the women to come from other states to Springfield, and in one case, they transported a woman from Connecticut to Springfield to work.
The women signed year-long contracts, for which there was a $350 early termination fee. The victims were taken to a house in Springfield and/or to various motels in West Springfield to work as prostitutes, sometimes without receiving any pay. If they wanted to leave, or if they broke the rules of Sinful Innocence, they were subjected to beatings and threats to kill or harm them. The couple also threatened the women with violence when the women were unable to pay the $350 termination fee imposed.
Acting United States Attorney William D. Weinreb; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Hampden County District Attorney Anthony D. Gulluni; and West Springfield Police Chief Ronald Campurciani made the announcement. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Office prosecuted the case.
This case is the result of a coordinated investigation led by the Western Massachusetts Human Trafficking Working Group, which was established in August 2015 and includes the United States Attorney’s Office, the Massachusetts Attorney General’s Office, and the Hampden County District Attorney’s Office, as well as other federal, state, and local law enforcement agencies. The Working Group aims to surge law enforcement resources to cooperatively investigate and prosecute crimes involving commercial sex trafficking.
Saugus Man Arrested on Firearms ChargeRead the Press Release
BOSTON – A Saugus man was arrested yesterday and charged in federal court in Boston with dealing firearms.
Leny Soares, 49, was charged by complaint with one count of dealing firearms without a license. He appeared yesterday before Magistrate Judge M. Page Kelley and was detained pending a hearing on Dec. 4, 2017.
According to court documents, law enforcement began investigating the sale of firearms by Soares with the use of a cooperating witness. Over a period of six months, at the direction of law enforcement, the cooperating witness purchased seven firearms from Soares.
The charge of dealing firearms without a license provides for a sentence of no greater than five years in prison, three 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 and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Anne Paruti of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rolling Prairie Man SentencedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Nathan Kellogg, age 34, of Rolling Prairie, Indiana, was sentenced before South Bend District Court Judge Jon E. DeGuilio for several robberies in St. Joseph and LaPorte Counties in Indiana.
Kellogg was sentenced to eighty-five (85) months imprisonment followed by one (1) year of supervised release.
According to documents in this case, Kellogg drove the car when another individual committed several armed robberies. He drove the robber to the Admiral gas station and a Dollar General store, both in St. Joseph County on January 12, 2017. He also drove when the other individual robbed the Blacksmith Shop restaurant in LaPorte County and Jet’s Pizza in Mishawaka, Indiana, both on January 14, 2017.
This case was investigated by the Federal Bureau of Investigation with the assistance of South Bend Police Department, St. Joseph County Police Department, Mishawaka Police Department, and the LaPorte County Sheriff’s Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Pine Ridge Man Sentenced for MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man convicted of Second Degree Murder and Conspiracy to Commit Assault was sentenced on November 22, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Calmer Cottier, age 26, was sentenced to 210 months in custody, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund as to the Second Degree Murder charge. He was sentenced to 120 months in custody, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund as to the Conspiracy to Commit Assault charge. The times of custody and supervised release are to run concurrently to each other.
Cottier was indicted by a federal grand jury on December 15, 2015. He was subsequently found guilty following a trial in Federal District Court in Rapid City on June 9, 2017.
The conviction stems from Cottier and others striking the victim with a cinder block, kicking the victim in the head and face, beating the victim with a stick, and striking the victim in the back of his head with a machete on July 12, 2015. The cause of death was multiple blunt trauma to the head, including a skull fracture and hemorrhaging.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Megan Poppen and Kathryn N. Rich prosecuted the case.
Cottier was immediately turned over to the custody of the U.S. Marshals Service.
New Orleans Attorney Charged with Bank TheftRead the Press Release
HILLIARD FAZANDE, III (“FAZANDE”), age 50, of New Orleans, Louisiana, was charged in a Bill of Information today for bank theft, announced Acting United States Attorney Duane A. Evans.
According to today’s Bill of Information, on October 26, 2015, FAZANDE opened a bank account at the Whitney branch located at 3001 Holiday Drive in New Orleans, Louisiana. On October 30, 2015, FAZANDE endorsed and deposited a TD Bank $387,000 cashier’s check made payable to “Attorney Hilliard C. Fazande III” into his account at the Whitney branch located at 3001 Holiday Drive in New Orleans, Louisiana. On October 31, 2015, FAZANDE went to the Whitney branch located at 8300 Louisiana Highway 23 in Belle Chasse, Louisiana and presented a bank teller with a temporary Whitney check in the amount of $5,000.00 knowing that he did not have sufficient funds to cover the transaction due to a bank hold on the $387,000.00 check. On October 31, 2015, FAZANDE, while at the Whitney branch located at 8300 Louisiana Highway 23 in Belle Chasse, Louisiana, made a $5,000.00 cash withdrawal from his account. On November 4, 2015, a Whitney employee contacted FAZANDE and advised him that the $387,000.00 check was counterfeit and that he must return the $5,000.00 he withdrew. FAZANDE never returned the money to the Whitney Bank.
If convicted, FAZANDE faces a sentence of up to ten (10) years imprisonment, followed by a term of supervised release of up to three (3) years, and a $250,000.00 fine.
Acting U. S. Attorney Evans reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Navajo Man Sentenced to 97 Months for Federal Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Larry June, 58, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 97 months in prison for his conviction on a voluntary manslaughter charge. June will be on supervised release for three years after completing his prison sentence.
The FBI and Navajo Nation Division of Public Safety arrested June in Nov. 2016, on a criminal complaint charging him with killing a Navajo woman by stabbing her with a knife on Nov. 25, 2016, on the Navajo Indian Reservation in San Juan County, N.M. June was subsequently indicted on Dec. 20, 2016, and was charged with second-degree murder.
On Aug. 21, 2017, June pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, June admitted that on Nov. 25, 2016, he stabbed the victim multiple times with a knife during a heated argument, and that the victim died as the result of the injuries she sustained.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorneys Niki Tapia-Brito and Michael D. Murphy prosecuted the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Munroe Falls man indicted after receiving shipments of fentanyl analogue from ChinaRead the Press Release
A Munroe Falls man was indicted in federal court after receiving shipments of a fentanyl analogue from China, said U.S. Attorney Justin E. Herdman.
Don A. Maigari, 36, was indicted on one count of attempt to possess and distribute methoxyacetylfentanyl.
Maigari was arrested on a federal criminal complaint after receiving shipments of the drug from China last month. Packages containing the drugs were shipped to an apartment in Akron. Maigari retrieved the package on Oct. 13, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the Akron Police Department, the U.S. Postal Inspection Service and Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mexican Citizen Admits Illegal Transportation of AliensRead the Press Release
ALBANY, NEW YORK – Jose Garcia-Flores, a/k/a Moises Agular-Munoz, age 42, formerly a resident of Waldorf, Maryland, and a citizen of Mexico, pled guilty yesterday to transporting three Mexican citizens who had illegally crossed into the United States from Canada.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Garcia-Flores admitted that on the morning of September 17, 2017, along the international border near Champlain, New York, he picked up three Mexican citizens who had crossed the border illegally from Canada the night before. Garcia-Flores was driving the two men and one woman to Maryland when he was stopped and arrested by Border Patrol Agents at the Border Patrol checkpoint on Interstate 87 (the Northway) on the morning of September 17. At the time of his crime, Garcia-Flores himself was in the United States without authorization.
United States District Judge Mae A. D’Agostino is scheduled to sentence Garcia-Flores on March 19, 2018. He faces up to 5 years in prison and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Following the completion of his sentence, the Department of Homeland Security will put Garcia-Flores into removal (deportation) proceedings.
The smuggled aliens, Samuel Alcaraz-Diaz, age 22, Jesus Enrique Vela-Hernandez, age 37, and Guadalupe Diaz-Arevalo, age 43, all of Mexico, were each sentenced on October 3, 2017 to 20 days in jail, and then placed into removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Men Sentenced for Robbery and Firearm Offenses in Henderson and Vance CountyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court today, United States District Judge Terrence W. Boyle, sentenced TYLER JONES, 21, of Henderson, NC to 84 months of imprisonment followed by 3 years of supervised release. Also sentenced today was co-defendant DIJON DEVAR WILLIAMS, 26, of Henderson, NC to 200 months of imprisonment followed by 5 years of supervised release. Additionally, JONES agreed to pay $1,439.47 in restitution and WILLIAMS agreed to pay $12,096.95 in restitution.
JONES and WILLIAMS were named in a fifteen-count Indictment filed on August 3, 2016. JONES subsequently pled guilty to one-count of Hobbs Act Robbery and Aiding and Abetting and one-count of Brandishing a Firearm in Furtherance of a Crime of Violence. WILLIAMS pled guilty to two-counts of Brandishing a Firearm in Furtherance of a Crime of Violence.
From around October 2015, to December 14, 2015, WILLIAMS executed a series of robberies at various business establishments in the Eastern District of North Carolina, in Henderson, Kittrell, and Middleburg, North Carolina. JONES also was charged with one of the robberies.
On December 5, 2015, WILLIAMS and JONES robbed Citi Trends in Henderson. WILLIAMS entered the store and pointed a revolver at the security officer’s chest. JONES remained at the entrance to the store and served as a lookout. They fled the scene with approximately $1,439.00. On December 5, 2015, Jones was apprehended in the vicinity of the robbery and was positively identified by a witness.
On December 14, 2015, WILLIAMS robbed Cruizers Store Number 240 (Cruizers) in Henderson. Shortly after entering the store, WILLIAMS walked behind the cash register counter, pointed a handgun at the cashier, and demanded money. While WILLIAMS grabbed $80 from the cash register, the cashier turned and fell to the floor. WILLIAMS fled the scene in a car shortly after the robbery.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The Henderson Police Department, the Vance County Sheriff’s Office, and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorneys S. Katherine Burnette and Dennis M. Duffy handled the prosecution of this case for the government.
Medina man indicted for trying to induce minor to engage in sex, sending lewd images of himselfRead the Press Release
A Medina man was indicted in federal court trying to induce a 13-year-old girl to engage in sexual activities with him and sending images of himself engaged in sexual activities, said U.S. Attorney Justin E. Herdman.
Jason M. Sasso, 43, was named in the six-count indictment, with charges including enticement, attempted sexual exploitation of a child, receiving visual depictions of minors engaged in sexually explicit conduct and transferring obscenity to a minor.
Sasso, via cell phoned, attempted to persuade, induce, entice and coerce what he believed were two girls who had not attained the age of 18 years to engage in illegal sexual activity with him. This took place from Aug. 25 through Oct. 15, 2017, and again Oct. 11 through Oct. 24, 2017, according to the indictment.
Sasso also used a cell phone to transfer digital files with images of himself engaged in sexual activity to a law enforcement officer he believed to be a 13-year-old girl. He also attempted to persuade minor girls to engage in sexually explicit conduct for the purposes of producing a visual depiction of the conduct, according to the indictment.
He also received numerous images of real minors engaged in sexually explicit conduct or being sexually abused, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Department of Homeland Security, Homeland Security Investigations and the Ohio Internet Crimes Against Children Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
McLaughlin Man Sentenced for MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Second Degree Murder was sentenced on November 20, 2017, by U.S. District Judge Charles B. Kornmann.
Matthew St. Pierre, age 32, was sentenced to 40 years in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
St. Pierre was indicted by a federal grand jury on October 18, 2016. He pled guilty on August 4, 2017.
The conviction stems from a series of events that occurred between October 11 and October 12, 2016, when St. Pierre participated in severe beatings to his girlfriend’s five-year-old daughter. Though slight bruising was initially detected by staff at the Wakpala, South Dakota, school and South Dakota Department of Social Services, the majority of the injuries were caused over an extended weekend.
Over the next several days, the young child was hit about the head, neck, chest, abdomen, legs, and arms. As a result of the beatings, the young child suffered severe abdominal injuries, which led to internal bleeding and ultimately death. The young child was brought to the Mobridge Hospital, where staff noticed she was not breathing and “cool” to the touch. Resuscitative efforts were not successful. St. Pierre’s girlfriend, Desarae Makes Him First, ultimately confessed to authorities that she and St. Pierre were responsible for the injuries that led to the death of her child.
This case was investigated by the Federal Bureau of Investigation, and the Bureau of Indian Affairs - Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
St. Pierre was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Maryland Man Convicted for Role in 2016 Heroin ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Maryland man today for his role in a conspiracy to distribute heroin.
According to court records and evidence presented at trial, Jeffery Okyere, 32, of Laurel, along with two co-conspirators, participated in a conspiracy to distribute heroin. Okyere acted as a local source of supply for a co-conspirator based in Texas, and provided heroin on an as needed basis to a local dealer on request.
Okyere faces a maximum penalty of 20 years in prison when sentenced on March 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, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict. Assistant U.S. Attorney J. Tyler McGaughey and Special Assistant U.S. Attorney David A. Peters are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-159.
Local, State, and Federal Law Enforcement Continue Partnership with the Community with Second Greenville Safe Neighborhoods eventRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake announced today that Greenville Safe Neighborhoods held its second notification meeting Monday evening in Greenville. Led by Chief Ken Miller and the Greenville Police Department, GPD launched Greenville Safe Neighborhoods in March, holding the inaugural meeting on March 27, with the stakeholders, partners, as well as the first round of participating individuals, all of whom are currently on state probation. Additional core partners in the program include the 13th Circuit Solicitor’s Office, the South Carolina Probation, Parole, and Pardon Services, New Mind Health and Care, Inc., and the U.S. Attorney’s Office.
Greenville Safe Neighborhoods is a unified, proactive police and community collaboration that engages, educates and empowers repeat serious offenders to obtain assistance, change behavior, make healthy life choices or suffer consequences of unified police/prosecutorial focus and priority. Predicated on the work of Professor David M. Kennedy of the John Jay College of Criminal Justice in New York, this focused-deterrence model aligns intervention and prosecutorial resources to create an appropriate mix of legal and ethical pressure to change offender behavior, reduce recidivism and severity, and reduce victimization. The Greenville Police Department has been working with its core partners for several months in planning, developing and resourcing the pilot program.
The U.S. Attorney’s Office serves as a partner in similar iterations across the state, to include Aiken Safe Communities, Hartsville Safe Communities, Ceasefire Columbia, and most recently, Home Front--the focused-deterrence model focusing on domestic violence in Spartanburg County.
The Greenville Safe Neighborhoods initiative identifies participants based upon their present and past criminal conduct. Participants attend a meeting with local, state and federal law enforcement officials and prosecutors as well as with service providers, family and affected community members. In the meeting, participants have meaningful access to a host of services or contacts to help them address physical or psychological needs.
GPD Chief Ken Miller, who anchored the meeting on Monday evening, brought the program’s core partners together to make this initiative a reality. “The Greenville Police Department is committed to working with our community and our program participants and stakeholders to keep our streets and neighborhoods safe.”
During the meeting, the participants observed the unified commitment to this effort between law enforcement and the community. The goal the stakeholders hope to achieve is engaging a participant to address his or her needs, make meaningful strides, and avoid re-offending, thereby making the Greenville community safer. Also underscored during the meeting--the commitment between all levels of law enforcement and prosecution. Should a participant disregard this opportunity and re-offend, new offenses will be identified in “real time” and they will be brought to justice swiftly--in state court or federal court.
Solicitor Walt Wilkins has dedicated prosecutors to this effort and will be working closely with federal prosecutors in the U.S. Attorney’s Office. “We are excited about this partnership and the promise that Greenville Safe Neighborhoods holds for effective communication between the community and local, state, and federal law enforcement.”
U.S. Attorney Drake thanked Chief Miller, Solicitor Wilkins, and the other agencies for their leadership and for bringing the stakeholders together. “These South Carolinians have some important choices to make in terms of changing their path in life. The resources and community commitment are there.”#####
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on November 21, 2017, Michelle R. Schwab, 45, of Lincoln, was sentenced to 10 years (120 months) in prison for conspiracy to distribute methamphetamine. Following the prison term, Schwab will serve five years on supervised release.
Information provided to law enforcement indicated that Schwab was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine in the Lincoln area between January 1, 2013, and May 15, 2016. In January of 2016, an undercover officer purchased a small amount of methamphetamine from Schwab.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Knoxville Man Arrested for Posting Threats to Kill on Thanksgiving DayRead the Press Release
KNOXVILLE, Tenn. – An individual who threatened in a post on his Facebook page to kill everyone in Knoxville on Thanksgiving Day was arrested earlier today by agents with the Knoxville FBI. Dale Jeffries II, 43, of Knoxville, Tennessee, was taken into custody shortly before 2:00 PM on Wednesday, November 22, 2017, at a business in west Knoxville. Jefferies was charged with transmitting threatening communications in interstate commerce. More detailed information on these charges can be found in the arrest warrant and supporting affidavit on file with the U.S. District Court Clerk. If convicted, he faces up to five years in prison.
Jeffries appeared in U.S. District Court this afternoon and was held pending a detention hearing scheduled for Wednesday, November 29, 2017.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
Jury Finds Waterloo Man Guilty of Sending Threatening Tweets to United States Senator Joni K. ErnstRead the Press Release
A man who sent threatening “tweets” on the Internet to United States Senator Joni K. Ernst was convicted by a jury today, after a one-day trial in federal court in Cedar Rapids.
Joseph Hilton Dierks, 34, from Waterloo, Iowa, was convicted of all three counts of sending threatening communications in interstate commerce. The verdict was returned around 1 p.m. today, following about five hours of jury deliberations.
The evidence at trial showed that, in August 2017, Dierks began sending Senator Ernst tweets from his Twitter account to her Twitter accounts. On August 13, 2017, Dierks sent Senator Ernst a tweet that stated, “I just want u to know I’d put a bullet in your head if u were my wife . . . not that I’ll ever have one,” with a link to a scene from the 2010 English-language French action film “From Paris with Love,” in which a man shoots a woman in the head and kills her. The United States Capitol Police in Washington, D.C. then contacted the Waterloo Police Department, which sent a law enforcement officer to Dierks’ home. Dierks promised the officer he would “tone it down” but, within 24 hours, Dierks began sending threatening tweets to the Senator. The jury found Dierks sent the following three threats to Senator Ernst on August 16, 2017:
“I’ll beat ur ass in front of ur widow I promise that”;
“I’ll f u up seriously in my sleep”; and
“@joniernst u r sn army bitch and I’ll @USMC u tf up :)(:”.
Witnesses testified at trial that defendant sent the threatening tweets to Senator Ernst because he wanted her to help him obtain an age-waiver to get into the military. The jury rejected the defendant’s argument that he was just an “Internet troll” who did not intend to threaten Senator Ernst and did not know that his tweets would be viewed as threatening. Trial evidence showed Dierks sent Senator Ernst other tweets, including “i want u to die sorry not sorry”; “I’ll flatline ur ass like @tendoublezero lol”; “@joniernst deserves death”; “i didn’t kill u cuz I have a message for u”; and “U were almost a widow . . . .”
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Dierks remains in custody of the United States Marshal pending sentencing. Dierks faces a possible maximum sentence of fifteen years’ imprisonment, a $750,000 fine, $300 in special assessments, and nine years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and Richard L. Murphy and was investigated by the Federal Bureau of Investigation, with the assistance of the United States Capitol Police.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2065-LRR.
Follow us on Twitter @USAO_NDIA.
Judge Sentences Pittsburgh Man to 12+ Years in Prison for Heroin Trafficking SchemeRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 150 months’ imprisonment on his convictions of conspiracy to possess with intent to distribute and distribute more than one kilogram of heroin and conspiracy to commit money laundering, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Marieo Everett, age 33, of Pittsburgh, PA.
According to information presented to the court, from April through August 2016, Marieo Everett was intercepted over a DEA wiretap conspiring with others to possess with intent to distribute and distribute heroin. He also conspired with others to launder the proceeds of the heroin trafficking conspiracy.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Everett. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
John R. Lausch, Jr. Takes Oath of Office as United States Attorney for the Northern District of IllinoisRead the Press Release
CHICAGO — John R. Lausch, Jr., who served as a federal prosecutor in Chicago for more than a decade before entering private law practice, returned to government service today as the United States Attorney for the Northern District of Illinois.
U.S. District Chief Judge Ruben Castillo today administered the oath of office after President Donald J. Trump signed U.S. Attorney Lausch’s commission. A public investiture ceremony will be held at a later date.
“I am excited to return to the U.S. Attorney’s Office in Chicago today,” said U.S. Attorney Lausch. “I am humbled and honored to lead such a tremendous team of attorneys and staff. I look forward to working with our law enforcement partners and continuing the office’s longstanding history of pursuing justice on behalf of the citizens of the Northern District of Illinois.”
Joel R. Levin, who for the past eight months served as Acting United States Attorney, will return to his role as the First Assistant United States Attorney.
As an Assistant U.S. Attorney from 1999-2010, U.S. Attorney Lausch tried more than twenty jury cases involving racketeering, fraud, narcotics, extortion, firearms and other offenses. From 2005-2010, U.S. Attorney Lausch served as Deputy Chief in the Narcotics & Gangs Section, overseeing criminal prosecutions of drug trafficking organizations and street gangs. U.S. Attorney Lausch also served as the office's Violent Crime Coordinator, leading the District’s Anti-Gang and Project Safe Neighborhoods programs. He was twice awarded a Department of Justice Director's Award for Superior Performance.
From 2010 until his appointment as United States Attorney, U.S. Attorney Lausch worked in private law practice in Chicago.
U.S. Attorney Lausch earned his law degree in 1996 from Northwestern Pritzker School of Law, and earned his Bachelor’s Degree in General Studies (Government Concentration) in 1992 from Harvard University.
Jailer Pleads Guilty to Abusing Inmate at DeKalb County JailRead the Press Release
Dwight Hamilton, a former correctional officer at the DeKalb County Jail, pleaded guilty on Monday to abusing a female inmate by tasing her without any legitimate justification. Leonard Dreyer, Mr. Hamilton’s former supervisor at the DeKalb County Jail, previously pleaded guilty to attempting to obstruct the federal investigation into Mr. Hamilton’s use of excessive force by making false statements to an FBI agent.
According to the charges and other information presented in court, Dwight Hamilton worked as a sergeant at the DeKalb County Jail, and on November 1, 2011, he responded to the medical floor of the jail when a female inmate, T.P., asked to speak to a supervisor because her family visitation had been unexpectedly cancelled. Rather than explain the situation, Hamilton tased T.P. until she defecated on herself. Hamilton, who had been trained on proper taser usage, admitted he knew that what he was doing was wrong and continued anyway. As a result of the tasing, Inmate T. P. suffered permanent taser burns to her breast.
“Any correctional officer who violates an individual’s right to due process and protection from unreasonable force will be held accountable under the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will continue to work to ensure that the civil rights of all individuals will be protected.”
“Officers who have sworn to maintain security and protect the inmates inside our county jails have a difficult job but despite challenges, most do their work in a professional manner,” said U.S. Attorney Byung J. “BJay” Pak. “However, Hamilton ignored that oath and unlawfully punished an inmate by inflicting severe pain and causing a permanent injury. Hamilton’s conduct was clearly a violation of the inmate’s constitutional rights that warranted this criminal prosecution.”
“Monday’s guilty plea in federal court will clearly begin the process of holding former Dekalb County Corrections Officer Hamilton responsible for his criminal conduct involving the tasing of a female inmate,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “The FBI continues to play a significant role in investigating credible allegations of law enforcement misconduct, to include those occurring within a correctional facility, and presenting them, when appropriate, for federal prosecution as was the case with Mr. Hamilton.”
Dwight Hamilton, 53, of Atlanta, Georgia, will be sentenced by U.S. District Court Judge Timothy C. Batten on February 8, 2018.
This case was investigated by the Atlanta Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Brent Alan Gray of the Northern District of Georgia, and Trial Attorney Christopher Perras of the Civil Rights Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Irish National Arrested; Charged with Improper Use of A PassportRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Adam Doumbouya, 30, of Ireland, was arrested and charged by criminal complaint with improper use of another person’s passport and making a false statement to law enforcement. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that, according to the complaint, the defendant attempted to enter the United States at the Amtrak Train Station Port of Entry in Niagara Falls on November 19, 2017. Doumbouya presented an Irish passport bearing the name Mariame Kourouma to a Customs and Border Protection Officer. The defendant also told the officer she was traveling to New York City to visit relatives.
An officer entered the defendant’s fingerprints into a Fingerprint Identification System and determined that she was in fact Adam Doumbouya, a citizen of Ireland, and not Mariame Kourouma. The investigation further revealed that the defendant was previously denied entry to the United States at the Rouses Point, New York Port of Entry, and had been refused a visa at the United States consulate in Dublin.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing scheduled for November 28, 2017, at 9:30 a.m.The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Illegal Alien Sentenced to 108 Months for Illegal Reentry and Gun ViolationRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that United States District Judge William H. Steele sentenced Pedro Quintero-Enriques, a.k.a. Miguel Angel Quintero, 37, from Michoacán, Mexico, to 108 months imprisonment for illegal reentry into the United States and for being a felon in possession of firearms. The judge ordered that Quintero-Enriques pay a $200 special assessment, undergo three years of supervised release after completing his prison term, and participate in drug and/or alcohol treatment as directed by the U.S. Probation Office.
Quintero-Enriques is a Mexican national and convicted felon who illegally reentered the United States on numerous occasions. In 2002, he was convicted in the United States District Court for the Southern District of Texas of improper entry. On January 23, 2012, Quintero-Enriques was deported. He later reentered the country and in October 2013, a federal grand jury for the Southern District of Alabama indicted the defendant for illegal reentry. In January 2014, Judge Steele sentenced Quintero-Enriques to time served and he was again deported. Notwithstanding his previous deportations, Quintero-Enriques unlawfully returned to the U.S. several more times. He was removed on August 3, 2014 and on November 26, 2014. Quintero-Enriques’s criminal history includes domestic violence. Federal law prohibits him from possessing firearms.
On October 16, 2016, Baldwin County Sheriff’s deputies went to 14640 Woodhaven Dairy Rd. in Summerdale, Alabama in response to an alleged domestic violence incident. Upon arrival at the home, Deputy Mctigue and Sgt. Burke found two firearms in plain view in a blue Ford F-150 truck parked underneath an awning. The awning was connected to the trailer. The deputies spoke to Quintero-Enriques, who allowed them to enter his home. Inside, Sgt. Burke saw in plain view marijuana and an unknown white residue on a small scale. The scale was on the kitchen counter directly above the dishwasher. Through the back window, Deputy Harville saw two large scales in the rear room of the trailer.
The deputies Mirandized Quintero-Enriques and asked him about the drug paraphernalia. He denied responsibility for the paraphernalia. Deputies asked Quintero-Enriques for consent to search his home. Quintero-Enriques granted consent. When deputies opened the dishwasher, they found a large amount of narcotics inside a plastic container along with a debit card in the defendant’s name. After separating the items in the container, deputies found a large amount of methamphetamine in separate bags. The container contained a white powdery substance that bore a resemblance to cocaine. The container also contained a small bag with a yellow hardened powder substance resembling crack cocaine, baking soda, latex gloves, cooking utensils, and other items used to make crack cocaine.
The deputies noticed that Quintero-Enriques’s demeanor changed when they opened the dishwasher. He became restless and appeared depressed. Deputy Harville asked Quintero-Enriques if he believed the deputies would find the items in the dishwasher, he responded: “No.”
Sgt. Burke and Deputy Mctigue secured the weapons located in the F-150. The firearms were a pump shotgun and a Ruger mini-14 rifle. The shotgun was loaded and contained four shells.
Deputy Mctigue and Deputy Harville continued to search the home for contraband. Dep. Mctigue found a large bag containing an unknown powdered substance on top of the dresser in the master bedroom. The deputies moved to the back room where Deputy Harville originally saw two large scales. There were pieces of cut bags located on the floor next to the scales. There was a packaging machine on the kitchen counter near the entry to the back room. There were several notebooks in the home with Spanish writing; one notebook was in the dishwasher where deputies found the narcotics. In his wallet, Quintero-Enriques had two North Carolina I.D. cards that appeared fake and approximately $1,785 in cash. On a table, Deputy Harville found a small bag of a white powdery substance. The substance resembled cocaine. The deputies arrested Quintero-Enriques and transported him to jail. When interviewed about his immigration status, Quintero-Enriques admitted to being in the country unlawfully and illegally.
In February 2017, a federal grand jury for the Southern District of Alabama indicted Quintero-Enriques for illegal reentry, being a felon in possession of firearms, and possessing methamphetamine and crack cocaine with intent to distribute / manufacture the narcotics. According to two DEA chemical analysis reports, there were approximately 211.9 grams of pure methamphetamine and approximately 7.33 grams of crack cocaine in Quintero-Enriques’s home. On May 2, 2017, the defendant pleaded guilty before Judge Steele to illegally reentering the country and to the firearms offense.
The Baldwin County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, and the Drug Enforcement Administration investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Homestead Woman Sentenced to Prison for Conspiring to Distribute Heroin, Launder ProceedsRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 18 months’ imprisonment on her convictions of conspiracy to possess with intent to distribute and distribute a quantity of heroin and conspiracy to commit money laundering, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence yesterday on Brianna Timber, age 23, of Duquesne, PA.
According to information presented to the court, from April through August 2016, Timber was intercepted over a DEA wiretap conspiring with others to possess with intent to distribute and distribute heroin. She also conspired with others to launder the proceeds of the heroin trafficking conspiracy.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Timber. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Grand Jury Indicts Dallas Man Who Fired Multiple Shots at a Vehicle on Firearm and Drug ChargesRead the Press Release
DALLAS — A federal grand jury returned a two-count indictment earlier this month charging Freddie Thomas Gilbert, 33, of Dallas, Texas, with offenses related to the October 29, 2017 shooting of a vehicle in Kaufman County, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
The indictment charges Gilbert with one count of possession of a firearm by a felon and one count of possession with intent to distribute a controlled substance. Gilbert will remain in custody pending further court hearings.
According to the complaint affidavit filed in the case and unsealed today, on October 29, 2017 law enforcement officials in Kaufman County received a call that the driver of a black Hyundai Elantra had fired a round of ammunition at their vehicle in the area of United States Highway 80 and County Road 212 in Kaufman County. Law enforcement officials were able to locate the vehicle and initiated a traffic stop. A vehicle pursuit ensued, reaching speeds up to one hundred and ten miles per hour when the vehicle refused to stop. The vehicle eventually became involved in a vehicle accident with another vehicle on the roadway. Gilbert was identified as the driver of the black Hyundai Elantra.
Subsequent to Gilbert’s arrest, he told law enforcement officials that the body of a girl was in the trunk of the vehicle. Law enforcement officials found a female victim in the trunk of the vehicle who had a visible gunshot wound to the head. Law enforcement officials also found a Taurus .38 caliber revolver in the side-pocket of the driver’s side door and a detectable amount of cocaine.
Prior to October 29, 2017, Gilbert had been convicted in the state of Louisiana and served jail time for felony drug offenses.
An indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Gilbert faces up to 10 years in federal prison for being a convicted felon in possession of a firearm, and a maximum penalty of up to 20 years in federal prison and a $1,000,000 fine for the possession of a controlled substance count.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, Kaufman County Sheriff’s Office and the Forney Police Department conducted the investigation. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Former jail Sergeant pleads guilty to abusing inmate at DeKalb County JailRead the Press Release
ATLANTA – Former DeKalb County corrections officer Dwight Hamilton has pleaded guilty to abusing a female inmate by tasing her without justification. Leonard Dreyer, Hamilton’s former supervisor at the jail, previously pleaded guilty to attempting to obstruct the federal investigation into Hamilton’s use of excessive force by making false statements to the FBI.
“Officers who have sworn to maintain security and protect the inmates inside our county jails have a difficult job but despite challenges, most do their work in a professional manner,” said U.S. Attorney Byung J. “BJay” Pak. “However, Hamilton ignored that oath and unlawfully punished an inmate by inflicting severe pain and causing a permanent injury. Hamilton’s conduct was clearly a violation of the inmate’s constitutional rights that warranted this criminal prosecution.”
“Any correctional officer who violates an individual’s right to due process and protection from unreasonable force will be held accountable under the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will continue to work to ensure that the civil rights of all individuals will be protected.”
“This guilty plea in federal court will clearly begin the process of holding former Dekalb County Corrections Officer Hamilton responsible for his criminal conduct involving the tasing of a female inmate. The FBI continues to play a significant role in investigating credible allegations of law enforcement misconduct, to include those occurring within a correctional facility, and presenting them, when appropriate, for federal prosecution as was the case with Mr. Hamilton,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Pak, the charges and other information presented in court: Dwight Hamilton worked as a sergeant at the DeKalb County Jail, and on November 1, 2011, he responded to the medical floor of the jail when a female inmate, T.P., asked to speak to a supervisor because her family visitation had been unexpectedly cancelled. Rather than explain the situation, Hamilton tased T.P. until she defecated on herself.
Hamilton, who had been trained on proper taser usage, admitted he knew that what he was doing was wrong and continued anyway. As a result of the tasing, Inmate T. P. suffered permanent taser burns to her breast.
Sentencing for Dwight Hamilton, 53, of Atlanta, Georgia, will be February 8, 2018, before U.S. District Court Judge Timothy C. Batten.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Brent Alan Gray and Trial Attorney Christopher Perras of the Department of Justice Civil Rights Division are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former WellCare General Counsel Sentenced for False Statements to the Florida Medicaid ProgramRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced former WellCare General Counsel, Thaddeus M.S. Bereday (52, Tampa), to six months in federal prison, followed by a three-year term of supervised release that includes one year of home confinement, for making a false statement to the Florida Medicaid Program. The Court also ordered him to pay a $50,000 fine.
Bereday pleaded guilty on June 26, 2017.
A federal grand jury in the Middle District of Florida returned an indictment on March 2, 2011, charging five former WellCare Health Plans, Inc. (“WellCare”) executives (Todd S. Farha, Paul L. Behrens, William L. Kale, Peter E. Clay, and Bereday) with four counts of healthcare fraud, four counts of making false statements relating to healthcare matters, and conspiracy to commit those crimes and defraud the United States. In addition, Clay was charged with two counts of making false statements. The fraud counts alleged that Bereday and his co-defendants had executed and attempted to execute both a scheme to defraud the Florida Medicaid Program through Florida’s Agency for Health Care Administration (“AHCA”), and a scheme to obtain, by means of false and fraudulent pretenses and representations, money under the custody or control of the program.
WellCare operates health maintenance organizations (AHMOs@) in several states targeted to government-sponsored health care benefit programs like Medicaid. Two WellCare HMOs operating in Florida, StayWell and Healthease, contracted with the AHCA to provide Florida Medicaid Program recipients with an array of services, including behavioral health services.
In 2002, the State of Florida enacted a statute requiring Florida Medicaid HMOs to expend 80% of the Medicaid premiums paid for certain behavioral health services on the provision of those services. If the HMO expended less than 80% of the premiums, the difference was required to be returned to the AHCA. The defendants in this case falsely and fraudulently schemed to submit inflated expenditure information in the company's annual reports to the AHCA in order to reduce the WellCare HMOs= contractual payback obligations for behavioral health care services.
A federal jury found Bereday’s co-defendants guilty on June 10, 2013. For their respective roles in the scheme, in May 2014, Judge Moody sentenced Farha to 36 months in prison; Behrens to 24 months’ imprisonment; and Kale to 1 year and 1 day in prison. Clay was sentenced to serve 5 years’ probation. The defendants appealed their convictions, which were all affirmed by the Eleventh Circuit in August 2016.
On May 5, 2009, the United States filed related charges in an Information and Deferred Prosecution Agreement ("DPA") against WellCare. Pursuant to that DPA, WellCare was required to pay $40 million in restitution, forfeit another $40 million to the United States, and cooperate with the government=s criminal investigation. The company complied with all of the requirements of the DPA. As a result, the Information was later dismissed by the Court following a government motion.
This case was investigated by U.S. Health and Human Services – Office of Inspector General and the Federal Bureau of Investigation, along with the Florida Medicaid Fraud Control Unit. It was prosecuted by Assistant United States Attorneys Jay G. Trezevant and Cherie L. Krigsman, DOJ Senior Litigation Counsel John A. Michelich, and Special Assistant United States Attorney John Bowers.
Former Virginia Tech Professor Charged in Federal IndictmentRead the Press Release
Roanoke, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke has charged a former engineering professor at Virginia Tech in an indictment returned yesterday, United States Attorney Rick A. Mountcastle announced.
Yiheng Percival Zhang, 46, of Blacksburg, Va., is charged with one count of conspiring to defraud the United States, three counts of making false statements within the jurisdiction of the United States, and three counts of making false claims to the United States.
Zhang, a former professor of Biological Systems Engineering at Virginia Tech, was also the Chief Scientific Officer of Cell-Free Bioinnovations (CFB). According to the indictment, CFB applied for grant funding available through the National Science Foundation (NSF) under the premise that the money would be used for research on certain projects. However, it is alleged that Zhang intended for the grant funds to be used for other purposes.
The indictment alleges that Zhang, in an email to a CFB employee, stated:
“What we expect here is to get this free money and use half of money to do what you want do to do – make sweeteners. Another half will be used to pay VT graduate students to finish this project.”
The grants that are the subject of the indictment total $600,000.
The case is being investigated by the National Science Foundation – Office of Inspector General, the Department of Energy- Office of Inspector General and the Federal Bureau of Investigation. The Blacksburg Police Department and the Virginia Tech Police Department provided assistance in the execution of search warrants. The case is being prosecuted by Assistant United States Attorney Randy Ramseyer
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Pit Boss, Blackjack Dealer, and a Player Sentenced in Federal Court for Cheating Conspiracy at Dakota Sioux CasinoRead the Press Release
United States Attorney Randolph J. Seiler announced that three individuals have been sentenced in federal court for their roles in a Conspiracy Involving Theft by Employees of a Gaming Establishment on Indian Land.
Lito Banbilla Bolocon, age 44, from Sisseton, South Dakota, and Jordon Anthony Rondell, age 29, from Lennox, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on November 20, 2017, and each received a sentence of six months in custody and were ordered to pay $8,700 in restitution to the gaming establishment. Jeremy Kris Brown, age 43, from Sisseton, was sentenced to two years of probation and ordered to pay $2,000 in restitution for his role in the conspiracy.
The Dakota Sioux Casino (“DSC”) is a gaming establishment located approximately five miles north of Watertown, in Codington County, South Dakota. The DSC is also located on the Lake Traverse Indian Reservation and is operated by the Sisseton Wahpeton Oyate Sioux Tribe.
According to the defendants’ plea agreements, Bolocon worked at the DSC as a pit boss, and Brown worked as a blackjack dealer. Rondell was a customer of the DSC whom frequently played blackjack. In December 2015 and through January 1, 2016, Bolocon, Brown, Rondell, and others conspired to enrich themselves by unlawfully obtaining gaming chips and money from the DSC. Specifically, in December 2015, the defendants devised a plan to cheat the DSC of monies derived during the gambling operations taking place on New Year’s Eve 2015, and into January 1, 2016. The agreement was for Rondell to unlawfully make a large sum of money from illegitimate winnings paid by Brown, and Rondell would then pay-off the others for their participation. Rondell cashed-out approximately $10,000 from the DSC after playing at Brown’s blackjack tables, which were supervised by Bolocon.
Bolocon, as pit boss during that night and early morning, would oversee Brown’s dealing to Rondell. Bolocon knew about and allowed the cheat to proceed throughout the night of December 31, 2015, and early morning of January 1, 2016.
The investigation is being conducted by the Federal Bureau of Investigation, the United States Attorney’s Office, and the Sisseton-Wahpeton Oyate Sioux Tribe’s Gaming Commission. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Pharmacy Compliance Director Pleads Guilty to Introducing Adulterated Drugs into Interstate Commerce and Conspiracy to Defraud the United StatesRead the Press Release
The former compliance director of an Indiana compounding pharmacy pleaded guilty to introducing adulterated drugs into interstate commerce and conspiracy to defraud the United States by obstructing the Food and Drug Administration’s (FDA) lawful functions, the Department of Justice announced today.
Caprice R. Bearden, 63, of Carmel, Indiana, pleaded guilty in the Southern District of Indiana to one count of conspiracy to defraud the United States, three misdemeanor counts of introducing an adulterated drug in interstate commerce, and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Bearden was the Director of Compliance for Pharmakon Pharmaceuticals Inc. (Pharmakon). Pharmakon compounded drugs at a facility in Noblesville, Indiana, for customers in various states.
Chief U.S. District Judge Jane E. Magnus-Stinson accepted Bearden’s plea. A date for sentencing has not been sent yet.
"This guilty plea demonstrates the Justice Department’s commitment to protecting patients and ensuring that compounded drugs are safe,” said Principal Deputy Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Distributing out-of-specification drug products poses a serious risk of harm to patients. The Justice Department will not tolerate efforts to impede FDA’s ability to uncover these types of safety concerns.”
“This defendant distributed serious drugs to hospitals in Indiana and around the country, knowing that the drugs were significantly under or over the strength they were supposed to be,” said Josh Minkler, United States Attorney for the Southern District of Indiana. “She put greed and the reputation of her company ahead of the health and safety of our most vulnerable patient populations.”
As part of her plea agreement, Bearden acknowledged that during 2014 and 2016 FDA inspections, she lied about Pharmakon’s never having received any out-of-specification drug potency test results. Bearden also acknowledged that she knowingly conspired with another individual to defraud the United States by obstructing the lawful functions of the FDA. In addition, she acknowledged that it was the purpose of the conspiracy to prevent the loss of revenue that would result from customers’ and FDA’s knowledge of Pharmakon’s having distributed numerous compounded drugs that were not the strength purported on the drugs’ labeling.
“This is an egregious example of how harmful conduct can result in risk to patients. The disregard for the law resulted in the injury of infants from poorly compounded, super potent morphine products,” said FDA Commissioner Scott Gottlieb, M.D. “We will not tolerate substandard practices, like failing to meet federal manufacturing standards like those found at Pharmakon, that put patients at risk and will aggressively pursue individuals that put profit ahead of patient safety.”
The conspiracy charge to which Bearden pleaded guilty carries a statutory maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense. The misdemeanor charges of distributing an adulterated drug in interstate commerce and adulterating drugs while held for sale after shipment of a drug component in interstate commerce each carry a statutory maximum punishment of one year in prison and a fine of $100,000 or twice the gross gain or gross loss from the offense.
Principal Deputy Assistant Attorney General Readler and U.S. Attorney Minkler commended the FDA Office of Criminal Investigations, which conducted the investigation. Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Cindy J. Cho, of the U.S. Attorney’s Office for the Southern District of Indiana, are prosecuting the case.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.
Former IRS Employee Sentenced on Health Care Fraud ChargeRead the Press Release
Lynchburg, VIRGINIA – A former employee of the Internal Revenue Service was sentenced yesterday in the United States District Court for the Western District of Virginia in Lynchburg on a federal health care fraud charge related to his misuse of government health insurance benefits, United States Attorney Rick A. Mountcastle announced.
Ronald Lewis Hooper, 69, of Lynchburg, was sentenced yesterday to 20 months in federal prison to be followed by three years of supervised release. He was also ordered to pay $549,607 in restitution. Hooper previously pleaded guilty to one count of health care fraud.
According to evidence presented at a previous hearing by Assistant United States Attorney Jennie L. M. Waering, should this case have gone to trial, the United States would have proven that Hooper misused his government health benefits to seek opiate drugs such as Nubian, Phenergan, and others, at various emergency departments. The United States would have proven that Hopper began seeking these drugs at various emergency departments only after his primary physician began to restrict the number of injections he would provide to Hooper to two per week. Hooper sought additional injections at emergency departments at hospital facilities throughout Virginia, West Virginia, North Carolina, South Carolina, Georgia and Florida.
Between December 2002 and December 2012, Hooper received services at hospitals and emergency rooms on approximately 1,700 separate occasions seeking injections of Nubian and Phenergan, incurring more than $824,000 in fraudulent medical payments.
The investigation of the case was conducted by the Office of Personnel Management, the Federal Bureau of Investigation and the Blue Cross Blue Shield Special Investigations Unit. Assistant United States Attorney Jennie L. M. Waering prosecuted the case for the United States.
Former General Counsel of Company That Operates Health Maintenance Organizations in Several States Sentenced to Prison for Role in $35 Million Health Care Fraud SchemeRead the Press Release
The former general counsel of a company that operates health maintenance organizations in several states was sentenced to six months in prison today for his role in a $35 million health care fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Steven Muldrow of the Middle District of Florida, Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Field Office, Special Agent in Charge Eric W. Sporre of the FBI’s Tampa Field Office and the Florida Attorney General’s Medicaid Fraud Control Unit made the announcement.
Thaddeus M.S. Bereday, 52, of Tampa, Florida, was sentenced by U.S. District Judge James S. Moody of the Middle District of Florida, who also ordered Bereday to serve three years of supervised release that includes one year of home confinement following his prison term and to pay a fine in the amount of $50,000. Bereday pleaded guilty on June 27, to one count of making a false statement in connection with health care matters.
According to admissions made in connection with his guilty plea, Bereday served in several positions, including as general counsel, with WellCare Health Plans Inc. (WellCare), a publicly traded corporation that operates health maintenance organizations (HMOs) in several states targeted to government-sponsored health care benefit programs such as Medicaid. Two WellCare HMOs operating in Florida, StayWell and Healthease, contracted with the Agency for Health Care Administration (AHCA), the Florida agency that administers the Medicaid program, to provide Florida Medicaid program recipients with an array of services, including behavioral health services.
In 2002, Florida enacted a statute that required Florida Medicaid HMOs to expend 80 percent of the Medicaid premium they received for certain behavioral health services on the actual provision of those services to beneficiaries. If the HMO expended less than 80 percent of the premium, the law required the excess funds to be returned to the Medicaid Program. Bereday and four other defendants were charged in an indictment that alleged the ways in which the defendants falsely and fraudulently schemed to submit inflated expenditure information in the company’s annual reports to AHCA in order to reduce the WellCare HMOs’ contractual payback obligations for behavioral health care services.
As part of his guilty plea, Bereday admitted that he, along with others, knowingly and willfully caused the submission of a false expenditure report for calendar year 2006 to the Florida Medicaid Program on behalf of Healthease, a WellCare HMO that was under contract to provide health care services to Medicare beneficiaries in Florida in 2006.
On May 5, 2009, the United States reached a resolution with WellCare on related charges. Pursuant to a Deferred Prosecution Agreement (DPA), WellCare was required to pay $40 million in restitution, forfeit another $40 million to the United States and cooperate with the government’s criminal investigation. The company complied with all of the requirements of the DPA. As a result, the criminal Information was later dismissed by the Court following a government motion.
After a 13-week trial in June 2013, a jury found the four other defendants guilty for their roles in a scheme to defraud the Florida Medicaid Program of more than $35 million. Todd S. Farha of Tampa, Florida, former WellCare chief executive officer, was convicted of two counts of health care fraud; Paul L. Behrens of Odessa, Florida, former WellCare chief financial officer, was convicted of two counts of making false statements relating to health care matters and two counts of health care fraud; William L. Kale of Oldsmar, Florida, former vice president of Harmony Behavioral Health Inc. (a wholly owned subsidiary of WellCare), was found guilty of two counts of health care fraud; and Peter E. Clay of Wellesley, Massachusetts, former WellCare vice president of medical economics, was found guilty of making false statements to a law enforcement officer. In May 2014, Judge Moody sentenced Farha to 36 months in prison; Behrens to 24 months in prison; and Kale to one year and one day in prison. Clay was sentenced to serve 5 years’ probation. The defendants appealed their convictions, which were all affirmed by the Eleventh Circuit in August 2016.
This case was investigated by the HHS-OIG, the FBI and the Florida Attorney General's Medicaid Fraud Control Unit. Senior Litigation Counsel John A. Michelich of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jay G. Trezevant and Cherie Krigsman of the Middle District of Florida prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former Federal Penitentiary Lieutenant pleads guilty to abusing inmate and attempting to cover it upRead the Press Release
ATLANTA – Gregory McLeod, a former correctional officer with the rank of lieutenant at the U. S. Penitentiary in Atlanta, has pleaded guilty to abusing an inmate by punching him in his face without justification. McLeod also admitted that he intentionally obstructed a federal investigation into the matter by writing a false incident report.
“Working in a correctional facility is stressful and often dangerous work,” said U.S. Attorney Byung J. “BJay” Pak. “However, McLeod made an unnecessary and unconstitutional assault on an inmate, and then filed a false report to cover it up. An abuse of the power by any law enforcement officer is unacceptable.”
“A correctional officer should never resort to violence or violate an inmate’s constitutional right to protection from unreasonable force, no matter the circumstance,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will not tolerate any abuse of an individual’s civil rights under the law, or any effort to obstruct justice.”
“No correctional officer is above the law,” stated James F. Boyersmith, Assistant Special Agent-in-Charge of the Department of Justice (DOJ) Office of the Inspector General’s (OIG) Miami Field Office. “The DOJ OIG takes allegations of civil rights violations and false statements very seriously. We appreciate the diligent efforts of our fellow law enforcement partners that assisted us in investigating this matter.”
“This guilty plea of former U.S. Bureau of Prisons Lieutenant McLeod was triggered by key and credible allegations of inmate abuse by prison staff. While the FBI would like to remind the public that the vast majority of those working within our nation’s correctional facilities consistently conduct themselves admirably under often harsh conditions, the FBI does have a duty to investigate and present for prosecution those corrections officers or staff members who abuse their authority and positions,” David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Pak, the charges and other information presented in court: McLeod, who worked as a supervisor at the prison, strip-searched an inmate in the McLeod’s office in front of three other correctional officers. McLeod admitted that after the inmate complained that the strip-search was taking too long, he punched the inmate in his face without justification. McLeod also admitted that after the assault, he wrote an incident report and a separate memorandum about the encounter in which he falsely claimed that the inmate swung a closed fist at him and attempted to assault other officers before the inmate was restrained.
Sentencing for Gregory McLeod, 44, of Atlanta, Georgia, will be on February 20, 2018, before U.S. District Court Judge Steve C. Jones.
This case is being investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation.
Assistant U.S. Attorney Brent Alan Gray and Trial Attorney Mary J. Hahn of the Department of Justice Civil Rights Division are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Former Federal Penitentiary Lieutenant Pleads Guilty to Abusing Inmate and Attempting to Cover it UpRead the Press Release
Gregory McLeod, 44, of Atlanta, Georgia, a former correctional officer with the rank of lieutenant at the U. S. Penitentiary in Atlanta, pleaded guilty today to abusing an inmate by punching him in his face without any justification. McLeod also admitted that he intentionally obstructed a federal investigation into the matter by writing a false incident report.
“A correctional officer should never resort to violence or violate an inmate’s constitutional right to protection from unreasonable force, no matter the circumstance,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will not tolerate any abuse of an individual’s civil rights under the law, or any effort to obstruct justice.”
“Working in a correctional facility is stressful and often dangerous work,” said U.S. Attorney Byung J. “BJay” Pak. “However, McLeod made an unnecessary and unconstitutional assault on an inmate, and then filed a false report to cover it up. An abuse of the power by any law enforcement officer is unacceptable.”
“No correctional officer is above the law,” said James F. Boyersmith, Assistant Special Agent-in-Charge of the Department of Justice (DOJ) Office of the Inspector General’s (OIG) Miami Field Office. “The DOJ OIG takes allegations of civil rights violations and false statements very seriously. We appreciate the diligent efforts of our fellow law enforcement partners that assisted us in investigating this matter.”
“This guilty plea of former U.S. Bureau of Prisons Lieutenant McLeod was triggered by key and credible allegations of inmate abuse by prison staff,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “While the FBI would like to remind the public that the vast majority of those working within our nation’s correctional facilities consistently conduct themselves admirably under often harsh conditions, the FBI does have a duty to investigate and present for prosecution those corrections officers or staff members who abuse their authority and positions.”
According to the charging and court documents, McLeod, who worked as a supervisor at the prison, strip-searched an inmate in the lieutenants’ office in front of three other correctional officers. McLeod admitted that after the inmate complained that the strip-search was taking too long, he punched the inmate in his face without justification. McLeod also admitted that after the assault, he wrote an incident report and a separate memorandum about the encounter in which McLeod falsely claimed that the inmate swung a closed fist at him and attempted to assault other officers before the inmate was restrained.
Sentencing for McLeod will be on February 20, 2018, before U.S. District Court Judge Steve C. Jones.
This case was investigated by the Department of Justice Office of the Inspector General and Atlanta Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Brent Alan Gray and Trial Attorney Mary J. Hahn of the Civil Rights Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Former Chief Financial Officer of New Jersey Orthopedic Care Provider Admits Embezzling over $1 MillionRead the Press Release
Newark, N.J. – The former chief financial officer of a New Jersey orthopedic care provider today admitted stealing over $1 million from the company for his personal use, Acting U.S. Attorney William E. Fitzpatrick announced.
Harry Wolfmuller, 70, formerly of Belmar, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From 2007 through 2015, Wolfmuller was employed as the chief financial officer for “Company A,” an orthopedic care provider with offices in Ocean and Monmouth Counties. As such, Wolfmuller controlled Company A’s bank accounts and financial records.
Wolfmuller cashed checks from Company A’s business accounts to pay for unapproved personal expenses, including meals at restaurants, golf, gambling and lottery tickets. Wolfmuller then misrepresented the nature of these transactions in Company A’s accounting records to make them appear as legitimate business expenses. Altogether Company A lost approximately $1,175,720 as a result of Wolfmuller’s conduct.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of the plea agreement, Wolfmuller must pay $1,175,720 in restitution. Sentencing is scheduled for March 13, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit in Newark.
Defense Counsel: Salvatore T. Alfano Esq. and Louis Esposito Esq.
Eighteen Defendants Charged by Federal and State Authorities in Connection with Credit Card Fraud SchemeRead the Press Release
Eighteen defendants have been charged by federal and state authorities in connection with a scheme to traffic in stolen credit card account numbers and to manufacture counterfeit credit cards.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Jaime Fernandez Del Pino, 27, of Miami, Florida, Julio Arjona Gomez, 50, of Miami Gardens, Florida, and Dayan Borges, 29, of Doral, Florida have been charged by federal criminal complaint with conspiracy to commit access device fraud in connection with the scheme. An additional fifteen defendants have been charged by the Miami-Dade County State Attorney’s Office.
Acting U.S. Attorney Benjamin G. Greenberg stated, “This investigation demonstrates law enforcement’s commitment to find, apprehend and bring to justice organized criminal enterprises such as this that use technology and the Internet to steal and sell personal identifying information for personal gain. It should also serve as notice to those thinking about engaging in, or those engaging in, this type of criminal activity, the days of hiding behind technology and the Internet are over.”
“In conjunction with the excellent investigative team at the Miami-Dade Police Department and other partner agencies, we remain focused in dismantling the proliferation of these criminal fraud organizations that are based in South Florida and traversing across the United States,” said U.S. Secret Service Special Agent in Charge Brian Swain.
Director Juan J. Perez said, “The Miami-Dade Police Department will continue to collaborate with local and federal law enforcement agencies to stop organized criminals from preying on our community. The hard work demonstrated during this investigation should serve as a reminder to those who seek to victimize the people of Miami-Dade County; we will aggressively pursue each and every one of you.”
According to the Complaint, the investigation began as a joint effort between the United States Secret Service and the Miami Dade Police Organized Crime Section. Law enforcement identified an organized criminal enterprise (“OCE”) involved in an ongoing scheme to traffic in stolen credit card account numbers and manufacture counterfeit credit cards. Certain members of the OCE were tasked with illegally installing credit card scanning devices (“skimmers”) at gas station pumps throughout the United States, for the purpose of stealing the credit card account information of gas station customers. Once the numbers were obtained, they were sent to Miami for use in the production of counterfeit credit cards. The counterfeit credit cards were then passed on to “mules” who either travelled back to the cities where the stolen credit card account numbers were obtained or were deployed locally to make fraudulent purchases. Although stolen credit card numbers were generally “skimmed” from gasoline pumps, the OCE also obtained them through the use of illegal websites.
The investigation revealed an email account linked to Del Pino and Arjona, who were using the account to operate a clandestine credit card manufacturing facility capable of producing up to 1,000 counterfeit credit cards daily. On April 19, 2017, investigators obtained authorization to intercept the electronic communications occurring over the email account and over the next month, investigators intercepted emails from an additional thirteen email accounts, containing the stolen credit card information of nearly 900 victims. Investigators thereafter obtained additional authorization to intercept communications occurring over the email account for an additional thirty days, which uncovered similar stolen credit card information and indicators of fraud.
Thousands of victims’ personal identifying information was used in the scheme, resulting in millions of dollars in losses to both victims and financial institutions. Today’s announcement reaffirms law enforcement’s commitment to crack down on credit card and other access device fraud.
During the week of November 13, 2017, law enforcement executed fifteen search warrants and two consent searches arising out of the investigation, at different locations throughout Miami, West Palm Beach, and Orlando, Florida and Colorado Springs, Colorado. During those searches, law enforcement recovered, among other things, the following items:
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Thousands of counterfeit credit cards
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Over 50,000 blank credit card stock used to manufacture counterfeit credit cards
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Numerous electronics containing thousands of stolen credit card account numbers
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Hundreds of counterfeit state identifications
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Hundreds of gas pump skimmers used to steal the credit card account numbers
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Numerous credit card printers and embossers, including several credit card making labs containing all products necessary to create counterfeit credit cards
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Approximately $95,000 in United States cash
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Nine vehicle seizures including a Mercedes Benz, Chevrolet Tahoe, Ford F350, Range Rover, BMW, a Kia Sonata, and a bladder truck used to steal gasoline
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High-end jewelry including nine watches worth over $100,000
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70 marijuana plants and 27 lbs of packaged marijuana
Mr. Greenberg commended the investigative efforts of the USSS and the MDPD Organized Crime Section, the Palm Beach Sheriff’s Office, the Orange County Sheriff’s Office, the City of Orlando Police Department, and Colorado Springs Police Department. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance in this investigation. This case is being handled by Assistant United States Attorneys Jonathan D. Stratton and Robert Juman.
A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty 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.
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District Court Enters Permanent Injunctions Shutting Down Two Groups of International Defendants Responsible for Multi-Million Dollar Mail Fraud SchemesRead the Press Release
The U.S. District Court for the Eastern District of New York entered four consent decrees in two civil actions, permanently barring 14 individuals and entities from operating alleged multi-million dollar international mail-fraud schemes. The defendants, located around the globe, include: Swiss corporation BDK Mailing GmbH; Singapore companies Mailing Force Pte. Ltd. and Only Three Pte. Ltd; Chantal Seguy of France; Marion Elchlepp of France; Aurora Jouffroy-Brandtner of Switzerland; U.S. corporation Macromark Inc.; Macromark employee Mary Ellen Meyer; Indian corporation Mail Order Solutions India Pvt. Ltd. (MOSI), and MOSI’s owners, Dharti B. Desai of New York, New York, and Mehul A. Desai of India; and Ercan Barka, a resident of Turkey and New Jersey, Ryan Young of New Jersey, and True Vision LLC, a Delaware-based corporation.
Both schemes followed a similar pattern, involving a complicated web of actors located across the world. Fraudulent “direct mailers” created letters falsely claiming that the recipient has won, or will soon win, cash or valuable prizes, or otherwise will come into good fortune. In order to collect these benefits, the letters say that the recipients need only send in a small amount of money for a processing fee. The letters appeared to come from legitimate sources, typically on official-looking letterhead, but were in fact fictitious individuals and organizations including “Baroness de Rothman,” “DNF Funds Office,” “Finkelstein & Partner,” the “Harrison Institute,” and Marie de Fortune. Moreover, even though the solicitations are in reality identical form letters sent to thousands or tens of thousands of recipients – the letters appear to be personally addressed.
“The Department of Justice is committed to protecting all Americans from fraud and exploitation,” Associate Attorney General Rachel Brand said. “This exploitation is repugnant and the Justice Department will pursue those who target our nation’s seniors and other vulnerable American consumers for financial gain. These consent decrees are just one example of the department’s broad efforts to protect seniors—and every American—from mail fraud.”
“The defendants’ preyed on the elderly and other vulnerable citizens through fictitious lotteries and other exploitive games, unfairly enriching themselves at the expense of these victims,” stated Acting U.S. Attorney Bridget Rohde for the Eastern District of New York. “These consent decrees put the defendants out of the exploitation business. This Office is committed to pursuing the perpetrators and enablers of such schemes, in New York and abroad, to hold them accountable and to protect others from being swindled.”
“These actions are an important step in dismantling the many components of this fraudulent mass-mailing industry,” said Inspector in Charge Regina Faulkerson. “The Postal Inspection Service will continue to aggressively investigate everyone involved in facilitating these predatory mailings.”
United States v. BDK, et al.
The first case, in which consent decrees were entered on November 21, 2017, alleges that the defendants’ fraud scheme victimized hundreds of thousands of Americans and targeted primarily the elderly and vulnerable. According to the complaint, the victims sent the defendants payments totaling $50 to $60 million annually between 2005 and 2016.
The consent decrees entered yesterday resolve the litigation. As part of the consent decrees, defendants BDK Mailing GmbH, Mailing Force Pte. Ltd. and Only Three Pte. Ltd. (collectively BDK) admit that they acted as “direct mailers” responsible for mailing millions of advertisements, solicitations, or promotional materials on behalf of dozens of fictitious psychics, sweepstakes, lotteries, and other wealth-building programs (collectively “covered direct mailings”) to hundreds of thousands of potential victims throughout the United States each year between 2005 and 2016. BDK further admits that the solicitations falsely promised that recipients would receive large sums of money, and guaranteed money-making methods or powerful talismans in return for payment of $50 to $55. In reality, however, the purported senders and the promised winnings were fictitious. Although victims sent requested payments by cash, check, and credit card, they received nothing in return. Defendants Macromark, Inc. and Mary Ellen Meyer do not dispute that they facilitated BDK’s rental of numerous “customer lists” containing hundreds of thousands of consumer names used for BDK’s direct mailing campaigns. Defendant Mail Order Solutions Inc., in turn, printed millions of copies of BDK’s covered direct mailings and delivered them via air cargo and international post into the United States for delivery to unwitting U.S. consumers.
United States v. Ercan Barka, et al.
The second case, in which consent decrees were entered on October 5, names defendants Barka, Young, and True Vision LLC. The United States’ amended complaint, filed in May 2017, alleges that Barka and Young worked together as “direct mailers,” sending fraudulent solicitations to hundreds of thousands of American victims through an international web of shell companies. The complaint alleges that Barka and Young’s mailings informed recipients that they had won prizes including millions of dollars in cash and luxury cars, and that recipients would receive delivery of the prizes upon payment of a fee. Victims allegedly received nothing in return for their payments, while Young and Barka collected an estimated $29 million from American victims from 2012 through 2016.
Under the consent decrees entered in both cases, the defendants may not use the U.S. mail to distribute fraudulent mailings or any mailings promoting similar schemes. The consent decrees also prevent the defendants from printing, receiving, handling, opening, forwarding, or processing any such direct mailings. The defendants are also prohibited from creating, renting, or selling any lists of demographic information relating to consumers who have responded to defendants’ or other certain direct mailings. Nor may the defendants process any payments received in response to certain direct mailings. Finally, the consent decrees authorize the U.S. Postal Inspection Service to return any victim money or personal checks sent to the defendants and detained by the Postal Inspection Service.
The United States’ case is being handled by Chief of Affirmative Civil Enforcement John Vagelatos and Assistant U.S. Attorney Thomas Price of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorneys Ann Entwistle and Gabriel Scannapieco of the Civil Division’s Consumer Protection Branch, in coordination with the U.S. Postal Inspection Service.
Additional information on the original enforcement actions and mass mailing schemes is available at: https://www.justice.gov/opa/pr/justice-department-and-law-enforcement-partners-announce-civil-and-criminal-actions-dismantle . Additional information about the Consumer Protection Branch and its enforcement efforts can be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny .
The Defendants:
BDK MAILING GMBH
MAILING FORCE PTE. LTD.
ONLY THREE PTE. LTD.
CHANTAL SEGUY
Age: 59
Paris, France
MARION ELCHLEPP
Age: 26
Paris, France
AURORE JOUFFROY-BRANDTNER
Age: 40
Zurich, Switzerland
MACROMARK, INC.
MARY ELLEN MEYER
Age: 45
Mahopac, New York
MAIL ORDER SOLUTIONS INDIA PVT. LTD.
DHARTI B. DESAI
Age: 50
New York, New York
MEHUL A. DESAI
Age: not available
Mumbai, India
E.D.N.Y. Docket No. 16-CV-5264 (NGG)
ERCAN BARKA
Age: 35
Paramus, New Jersey
RYAN YOUNG
Age: 35
Upper Saddle River, New Jersey
TRUE VISION LLC.
E.D.N.Y. Docket No. 16-CV-5266 (ENV)
Download Young Consent Decree and Final Judgment
Download Barka Consent Decree and Final Judgment
Download BDK Consent Decree and Final Judgment
Download Macromark Consent Decree and Final Judgment
Download Mosi Consent Decree and Final Judgment
Convicted Felon Pleads Guilty to Gun Charge in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Bobby Eric Spates, age 26, of Florence, pled guilty in federal court in Florence to Felon in Possession of a Firearm. United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on March 31, 2017, members of the Florence Police Department (FPD) responded to a 911 call regarding a pedestrian pointing a gun at a motorist on West Evans Street in Florence. Based on the description of the armed pedestrian received from the motorist, FPD made contact with the pedestrian, identified as Spates, detained him in handcuffs, and asked Spates if he had any weapons on him. Spates responded he had a gun in his pants pocket. The officer proceeded to pat-down Spates and felt what appeared to him to be a gun in Spates’ right front pants pocket. The officer then removed a loaded Phoenix Arms .22 caliber pistol. The officer advised Spates of his Miranda warnings and advised Spates he was under arrest. The officer next secured a box of .22 caliber ammunition from the same pocket where the firearm was located. Prior to his possession of the firearm, Spates had been convicted of a crime punishable by imprisonment for a term exceeding one year.
Ms. Drake stated the defendant faces a maximum penalty of ten years imprisonment. The case was investigated by the Florence Police Department and the ATF. Assistant United States Attorney Lauren Hummel of the Florence office handled the case.
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