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16 January 2018
Myrtle Beach Men Plead Guilty to Drug Trafficking ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Chris Anthony Bellamy, age 34, and Andre Matrel Rogers, age 40, both of Myrtle Beach, pled guilty in federal court in Florence to possession with intent to distribute and distribution of cocaine base, in violation of Title 21, United States Code, Section 841(a)(1) and 841(b)(1)(C). United States District Judge R. Bryan Harwell of Florence, accepted the guilty pleas and will impose sentence after he has reviewed the presentence reports, which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that, pursuant to a joint federal and state drug trafficking investigation in the Myrtle Beach area, law enforcement officers made a controlled purchase of cocaine base from Bellamy on August 20, 2015. Investigators later made a controlled purchase of cocaine base from Rogers on September 18, 2015.
Both men both face enhanced penalties on the drug charges based on prior state convictions for drug trafficking crimes. Bellamy and Rogers each face a maximum of 30 years imprisonment, a fine of $2,000,000 and a term of supervised release of at least 6 years on the drug charges.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Fifteenth Circuit Drug Enforcement Unit (DEU). Assistant United States Attorney Christopher D. Taylor of the Florence office handled the case.
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Muskogee Man Sentenced to 180 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Blake Alan Miller, age 34, of Muskogee, Oklahoma, was sentenced to 180 months imprisonment and 5 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The Indictment, which arose from an investigation by the Muskogee Police Department, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, alleged that on or about March 7, 2017, within the Eastern District of Oklahoma, Miller knowingly and intentionally possessed, with intent to distribute, in excess of 50 grams of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Dangerous drugs, including methamphetamine, are ruining lives, destroying families, and crippling communities. Drug dealers profit while the rest of society suffers as a result of their poison pedaling businesses. This multi-agency investigation prevented hundreds of dosage units from entering our community and untold hundreds or thousands more because of the disruption of Miller’s operation. I commend the law enforcement professionals that participated in the investigation.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Montgomery Woman Sentenced to 54 Months in Prison for Her Role in Identity Theft and Tax Fraud SchemeRead the Press Release
Montgomery, Alabama – On Wednesday, January 10, 2018, Kidiamond Sharagnes Pearson, 25, of Montgomery, Alabama received a sentence of 54 months in prison for her participation in a scheme to steal identities and then file fraudulent tax returns, announced United States Attorney Louis V. Franklin, Sr. There is no parole in the federal system.
Through her job position, Pearson had access to identifying information of individuals who applied for jobs with her employer. The identifying information included names, dates of birth, and Social Security numbers. Pearson would steal paperwork containing the identifying information from her employer, and give the documents to a co-conspirator, James Vernon Battle. Battle, also from Montgomery, then used the stolen information to file fraudulent federal income tax returns claiming more than $400,000 in undue tax refunds.
After committing her offense, Pearson pled guilty to wire fraud and aggravated identity theft. James Battle was previously sentenced to 61 months in November of 2016 for his role in the scheme.
This case was investigated by the Internal Revenue Service’s Criminal Investigation Division, with assistance from the United States Secret Service. Assistant United States Attorney Jonathan S. Ross prosecuted the case.
Mexican National Sentenced to 20 Years in Prison for Drug Trafficking and Firearms ViolationsRead the Press Release
A Mexican national was sentenced today by United States District Judge Beth Bloom to 20 years in prison, to be followed by 10 years of supervised release for drug trafficking and firearms violations.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Michael W. Meade, Acting Field Officer Director, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO), Miami Field Office, Matthew A. Zetts, Chief Patrol Agent, United States Border Patrol, and Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, made the announcement.
Felipe Benitez Aguilar, 44, of West Palm Beach, previously pled guilty to possession with intent to distribute over 5 kilograms of cocaine, felon in possession of a firearm, and alien in possession of a firearm.
On September 19, 2017, a West Palm Beach Grand Jury returned a five-count indictment charging Aguilar with possession with intent to distribute over 5 kilograms of cocaine, felon in possession of a firearm, alien in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime, and illegal re-entry after deportation or removal. According to court documents, Aguilar was found in possession of over 30 kilogram-sized packages of cocaine, an UZI rifle, a revolver, and multiple rounds of ammunition. Aguilar had been previously removed from the United States in February 2004 and again in July 2012. Aguilar’s July 2012 removal followed his 37-month federal sentence for conspiracy to possess with intent to distribute over 500 grams of cocaine.
Judge Bloom sentenced Aguilar to the mandatory-minimum term of 20 years in prison for the drug count, and concurrent terms of 10 years in prison on each firearms count.
Mr. Greenberg commended the investigative efforts of the DEA, ICE-ERO, Border Patrol, and ATF. This case was prosecuted by Assistant United States Attorney Rinku Tribuiani.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or on http://pacer.flsd.uscourts.gov/.
Mexican National Sentenced to 16 Months in Prison for Unlawfully Entering the United StatesRead the Press Release
Vicente Santiago-Castro, 40, a citizen of Mexico, was sentenced today in United States District Court in Benton to a term of 16 months in prison for being illegally present in the United States after having previously been removed by immigration officials, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Santiago-Castro was charged by a Federal Grand Jury on September 6, 2017, with being an illegal alien unlawfully present in the United States and pled guilty to that offense on October 26. Santiago-Castro was arrested by Immigration agents on September 2, 2017, in Harrisburg, Illinois.
Evidence supporting the guilty plea and sentence showed that Santiago-Castro had previously been removed or deported from the United States on seven prior occasions.
In addition to the 16-month term of imprisonment, Vasquez-Santelis was ordered to pay a $100 special assessment. After serving his term of imprisonment, Santiago-Castro will be removed or deported to Mexico by immigration officials.
Following his sentencing, Santiago-Castro was returned to the custody of the United States Marshal pending his designation to a facility by the Federal Bureau of Prisons.
The case was investigated by Immigration and Customs Enforcement, which is an agency of the Department of Homeland Security. The case was prosecuted by Assistant United States Attorney James M. Cutchin.
McAlester Inmate Pleads Guilty to Possessing Contraband in PrisonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kelly Ray Potter Jr., age 41, of McAlester, Oklahoma pled guilty to Possessing Contraband In Prison, in violation of Title 18, United States Code, Sections 1791(a)(2), 1791(b)(3) and 1791(d)(1)(B), punishable by not more than 5 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about October 24, 2017, in the Eastern District of Oklahoma, the Defendant, Kelly Ray Potter Jr., an inmate of a prison, did knowingly possess a prohibited object, to-wit: a knife-like object approximately ten (10) inches in length made from plexiglass material wrapped with a blue cloth as a handle, designed and intended to be used as a weapon.
The charge arose from an investigation by the U.S. Marshals Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Timothy Hammer represented the United States.
MS-13 Member Sentenced to Six Years in Federal Prison for RICO ConspiracyRead the Press Release
BOSTON – A leader of MS-13’s Hollywood Loco Salvatrucha (HLS) clique was sentenced today in federal court in Boston for racketeering conspiracy.
Henry Santos Gomez, a/k/a “Renegado,” 32, a Salvadoran national who previously resided in Revere, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to six years in prison and three years of supervised release. Santos Gomez will be subject to deportation upon completion of his sentence. In October 2017, Santos Gomez pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
After a multi-year investigation, Santos Gomez was one of 61 individuals named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13. The investigation revealed that Santos Gomez was a leader and “homeboy,” or full member, of the HLS clique. A search warrant executed at Santos Gomez’s residence resulted in the seizure of MS-13 paraphernalia and weapons.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Herndon (VA) Police Chief Maggie A. DeBoard made the announcement.
MEDIA ADVISORY - HSI Special Agent in Charge and U.S. Attorney to Present Forfeiture Proceeds to Law Enforcement AgenciesRead the Press Release
Maria Chapa Lopez
United States Attorney
Middle District of Florida
James C. Spero
Special Agent in Charge
U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations
Participating Agencies
Florida National Guard, Jacksonville Sheriff’s Office, Nassau County Sheriff’s Office
WHAT:
Agencies to receive forfeiture proceeds
WHEN:
WEDNESDAY, January 17, 2018
2:00 P.M. EST
WHERE:
Department of Homeland Security/U.S. Immigration & Customs Enforcement
13077 Veveras Drive
Jacksonville, Florida 32258
OPEN PRESS
NOTE:
All media must have government-issued photo I.D. (e.g. Driver’s License), as well as valid media credentials. Media may begin arriving at 1:30 P.M. for security clearance. Please RSVP to [email protected] by 10:00 a.m. on Wednesday, January 17th.
Kansas City, Kan., Man Sentenced on Project Safe Neighborhoods Firearm ChargeRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man was sentenced Tuesday to 92 months in federal prison for unlawful possession of a 9 mm handgun that was used in a robbery, U.S. Attorney Tom Beall said.
Joshua J. Flaugher, 32, Kansas City, Kan., pleaded guilty to one count of unlawful possession of a firearm by a convicted felon. In his plea, Flaugher admitted that investigators seized a loaded 9 mm handgun with a 30-round extended magazine from his residence. Flaugher was arrested at his aunt’s home in the 2400 block of Everett Avenue. Because he had a prior felony conviction in Wyandotte County District Court on a charge of aggravated battery, he was prohibited by federal law from possessing a firearm.
Beall commended the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Assistant U.S. Attorney Sheri Catania and Assistant U.S. Attorney Terra Morehead for their work on the case.
This prosecution was brought under Project Safe Neighborhoods (PSN), a Justice Department program aimed at prosecuting convicted felons who violate a federal ban on possession of firearms. Attorney General Jeff Sessions has directed U.S. Attorney’s Offices nationwide to emphasize PSN prosecutions as part of a national strategy to reduce violent crime.
Justice Department Files Notice to Appeal and Intends to Petition for Immediate Supreme Court Review in DACA LawsuitRead the Press Release
The Department of Justice today filed a notice of appeal in The Regents of the University of California and Janet Napolitano v. U.S. Department of Homeland Security and Elaine Duke seeking review before the U.S. Court of Appeals for the Ninth Circuit. The Department also intends later this week to take the rare step of filing a petition for a writ of certiorari before judgment, seeking direct review in the Supreme Court.
“It defies both law and common sense for DACA—an entirely discretionary non-enforcement policy that was implemented unilaterally by the last administration after Congress rejected similar legislative proposals and courts invalidated the similar DAPA policy—to somehow be mandated nationwide by a single district court in San Francisco,” said Attorney General Jeff Sessions. “It is clear that Acting Secretary Duke acted within her discretion to rescind this policy with an orderly wind down. This was done both to give Congress an opportunity to act on this issue and in light of ongoing litigation in which the injunction against DAPA had already been affirmed by the Supreme Court. We are now taking the rare step of requesting direct review on the merits of this injunction by the Supreme Court so that this issue may be resolved quickly and fairly for all the parties involved.”Justice Department Defends Archdiocese of Washington’s Religious LibertyRead the Press Release
The Department of Justice today filed an amicus brief supporting reversal of the D.C. District Court’s decision denying the Archdiocese of Washington’s motion for preliminary injunction against Washington Area Metropolitan Transit Authority (WMATA).
In November, the Archdiocese of Washington requested to purchase an advertisement on WMATA buses as part of its “Find the Perfect Gift” Christmas charitable campaign. WMATA denied this request, claiming that the advertisement violated WMATA’s policies banning ads that “promote or oppose any religion, religious practice or belief.” WMATA’s sole basis for rejecting the advertisement—which conveys the implicit message that viewers should “seek spiritual gifts,” make charitable donations, attend church services, and pursue “public service opportunities”—was that the advertisement “seeks to promote religion.” WMATA accepts advertisements that contain non-religious Christmas messages from charitable and commercial viewpoints.
In the amicus brief, the department asserts that WMATA’s rejection of the advertisement constitutes viewpoint discrimination and is a violation of the Archdiocese of Washington’s First Amendment right of free speech.
"As the Supreme Court has made clear, the First Amendment prohibits the government from discriminating against religious viewpoints," said Associate Attorney General Rachel Brand. "By rejecting the Archdiocese’s advertisement while allowing other Christmas advertisements, WMATA engaged in unconstitutional viewpoint discrimination."
The Justice Department, under Attorney General Jeff Sessions’ leadership, has shown a commitment to religious liberty and free speech protections, highlighted by the Government’s amicus brief in Masterpiece Cakeshop and its briefs in support of free speech on college campuses.Note: The amicus brief can be found here.
Jury Convicts Spartanburg Brothers in Federal Court of Drug and Money Laundering ChargesRead the Press Release
Columbia, South Carolina------United States Attorney, Beth Drake, announced today Soeuth Ath, 45 and Sean Ath 53, of Spartanburg, South Carolina, were convicted of conspiracy to distribute and distribution of methamphetamine and marijuana and conspiracy to launder drug proceeds, violations of Title 21, United States Code, Sections 841(a)(1), 846 and Title 18, United States Code Section 1956(h), in federal court in Anderson, South Carolina, following a week-long trial. The indictment also alleges the brothers used the United States Mail to facilitate a felony drug trafficking crime, a violation of Title 21, United States Code, Section 843(b) and felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). Soeuth Ath and Sean Ath each face a mandatory minimum sentence of ten years and maximum sentence of life in prison. Both men are await sentencing.
In September 2016, federal, state and local law enforcement executed multiple search and arrest warrants in Spartanburg County, Greenville County, and in Bakersfield, California, which led to the arrests of sixteen individuals, including six South Carolina Department of Corrections (SCDC) inmates, for their roles in the wide-ranging drug and money laundering conspiracy that stretched from South Carolina to Los Angeles, Fresno and Bakersfield, California. In September 2017, after a week-long trial, two Department of Corrections inmates, Sok Bun, 28, and James Robert Peterson, 29, were found guilty of conspiring to distribute and distribution of methamphetamine following a week-long trial in federal court. In that case, the defendants also used the mail to facilitate felony drug offenses. The Ath brothers are the last two defendants to be convicted. All other defendants pleaded guilty and are awaiting sentencing.
The convictions are a result of a multi-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program is a partnership between federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply. The investigation was conducted by the Federal Bureau of Investigation with the assistance and cooperation of the United States Postal Service, Internal Revenue Service-Criminal Investigations, South Carolina Law Enforcement Division, South Carolina Department of Corrections, Spartanburg County Sheriff’s Office, Spartanburg City Police Department, Cherokee County Sheriff’s Office, Oconee County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Greenville County Sheriff’s Office and ICE - Homeland Security Investigations, Drug Enforcement Administration and the United States Marshals Service. Assistant United States Attorney Leesa Washington and Jeanne Howard, of the Greenville office, are prosecuting the case.
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Honduran National Sentenced to Five Months in Prison for Unlawfully Entering the United StatesRead the Press Release
Jose Donaldo Vasquez-Santelis, 33, a citizen of Honduras, was sentenced today in United States District Court in Benton to a term of five months in prison for being illegally present in the United States after having previously been removed by immigration officials, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Vasquez-Santelis was charged by a Federal Grand Jury on September 6, 2017, with being an illegal alien unlawfully present in the United States and pled guilty to that offense on October 26. Vasquez-Santelis was arrested by Immigration agents on August 7, 2017, in Marion, Illinois.
Evidence supporting the guilty plea and sentence showed that Vasquez-Santelis had previously been removed or deported from the United States on two prior occasions. Vasquez-Santelis claimed that he last re-entered the country illegally in 2010.
In addition to the five-month term of imprisonment, Vasquez-Santelis was ordered to pay a $100 special assessment. After serving his term of imprisonment, Vasquez-Santelis will be removed or deported to Honduras by immigration officials.
Following his sentencing, Vasquez-Santelis was returned to the custody of the United States Marshal who will hold him until Immigration agents take him into their custody.
The case was investigated by Immigration and Customs Enforcement, which is an agency of the Department of Homeland Security. The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Hartford Man Guilty of Multiple Narcotics OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on January 12, a federal jury in New Haven found STANLEY REDDICK, 34, of Hartford, guilty of multiple drug offenses.
According to the evidence introduced during a two-day trial before U.S. District Judge Jeffrey A. Meyer, on two occasions in April 2017, investigators made controlled purchases of a total of approximately 110 grams of crack cocaine from REDDICK.
REDDICK was arrested on May 3, 2017. On that date, a search of REDDICK’s Ashford Street residence and his person revealed approximately 32 grams of crack, 42 grams of heroin, nine grams of a mixture of heroin, fentanyl, and cocaine, and items used to process and package narcotics for street sale. Investigators also found a key to an inoperative vehicle that was parked behind the residence, a subsequent search of which revealed a 9mm firearm and approximately 28 grams of fentanyl.
The jury found REDDICK guilty of two counts of possession with intent to distribute and distribution of 28 grams or more of cocaine base (“crack”), one count of possession with intent to distribute heroin, one count of possession with intent to distribute cocaine base, and one count of possession with intent to distribute fentanyl. The jury found REDDICK not guilty of one count of possession of a firearm in furtherance of a drug trafficking crime.
A sentencing date is not scheduled.
REDDICK has been detained since his arrest.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the Hartford Police Department’s Focused Violence Reduction Team. The case is being prosecuted by Assistant U.S. Attorneys Marc H. Silverman and Michael J. Gustafson.
Greer Woman Pleads Guilty to Mail theft ConspiracyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Donna Arledge, age 43, of Greer, pled guilty in federal court in Greenville, to a conspiracy to commit mail theft, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce H. Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Arledge and others stole mail in and around Greenville County in an effort to obtain bank account numbers, routing numbers, and identification information. Once in possession of this material they would create counterfeit checks, or simply alter legitimate checks taken from the mail, and negotiate them to obtain money.
The conspirators opened bank accounts in the names of others and used the accounts to deposit and withdraw stolen money.
Ms. Drake stated the maximum penalty Arledge can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the United States Postal Inspection Service and the Greenville County Sheriff’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Greenland Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONCORD, N.H. - Jason Stone, 39, of Greenland, New Hampshire, pleaded guilty in federal court to possessing child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, law enforcement officers executed a search warrant at the defendant's residence in October 2016. A review of various electronic devices found in the residences showed that they contained more than 100 images and videos of child pornography.
Stone is scheduled to be sentenced on May 1, 2018.
“Child pornography crimes jeopardize the innocence of young people,” said Acting U.S. Attorney Farley. “Through the Project Safe Childhood initiative, the U.S. Attorney’s Office works closely with our law enforcement partners to identify and prosecute those who possess child pornography, as well as those who produce or distribute this material.”
This matter was investigated by the Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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Four Lexington Men Sentenced for Heroin / Fentanyl and Gun CrimesRead the Press Release
LEXINGTON, Ky. – Three Lexington men, Arian L. Brown, Marion L. Brown, III, and Steven D. Harvey, were sentenced for their involvement in separate heroin and fentanyl distribution crimes. A fourth Lexington man, Christopher D. Washington, was sentenced for being a convicted felon in possession of a firearm. Each was formally sentenced by U.S. District Judge Danny C. Reeves, on Friday, January 12, 2018.
Arian L. Brown, 34, was sentenced to 30 years in prison for possession with intent to distribute 40 grams or more of fentanyl and heroin.
Arian Brown previously admitted that, in August 2016, he possessed 57 grams of fentanyl and 67 grams of heroin that he intended to distribute. Arian Brown had also previously been convicted, in 2010, of attempting to possess with the intent to distribute 500 grams or more of cocaine. Arian Brown pleaded guilty to the heroin and fentanyl charges in September of 2017.
Marion L. Brown, III, 29, was sentenced to 40 years in prison and 4 years of supervised release for distributing fentanyl resulting in serious bodily injury and being a convicted felon in possession of firearms.
In April 2017, Marion Brown acknowledged selling a quantity of fentanyl that resulted in a non-fatal overdose. Law enforcement officers executed a search warrant at Brown’s residence and discovered drug trafficking paraphernalia, two pistols, and a rifle. Marion Brown admitted that he had previously been convicted of trafficking in heroin. Marion Brown pleaded guilty in July 2017.
Steven D. Harvey, 33, was sentenced to over 18 years (220 months) in prison and 8 years of supervised release for possession with intent to distribute 100 grams or more of heroin. According to court records, in June 2017, Harvey was found in possession of 798 grams of heroin, which was intended for distribution. Harvey pleaded guilty in September 2017.
Christopher D. Washington, 23, was sentenced to 33 months in prison and 3 years supervised release for being a convicted felon in possession of a firearm. Washington previously admitted that, in June 2017, while in the company of Steven D. Harvey, Washington unlawfully possessed a .40 caliber semiautomatic pistol. Washington pleaded guilty in September 2017.
Under federal law, each must serve 85 percent of his prison sentence.
“Combatting the opiate and opioid epidemic and reducing the potential for violent crime, by removing firearms from convicted felons, are top priorities for the Department of Justice,” said United States Attorney Robert M. Duncan, Jr. “The sentences imposed should serve as a deterrent and send a strong message that such conduct is not tolerated in the Eastern District of Kentucky. I want to commend the investigative agencies involved in each of these cases. As a result of the hard work of dedicated law enforcement professionals, dangerous drugs were removed from our streets, firearms were seized from those who were illegally possessing them, and lives were potentially saved.”
United States Attorney Duncan and Darrell Christopher Evans, Special Agent in Charge, DEA Louisville, jointly announced the sentences.
The investigations were conducted by the DEA Lexington Task Force and the Lexington Police Department. The United States was represented by Assistant United States Attorney Cynthia T. Rieker, in the Arian Brown case, and by Assistant United States Attorney Gary Todd Bradbury, in the Marion L. Brown, III, Steven D. Harvey, and Christopher Washington cases.
These cases were prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Former Upstate Attorney Pleads Guilty to Defrauding ClientsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Philip E. Williams, age 57, of Williamston, pled guilty in federal court in Greenville, to mail fraud, a violation of Title 18, United States Code, Section 1341. United States District Judge Bruce H. Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that prior to his disbarment, Williams was an attorney practicing in the upstate of South Carolina. A large part of his practice was the probate of estates. Records indicate that he used money in his trust account to pay for living and personal expenses rather than to pay devisees and others for estates that he was handling. To try to hide his wrongdoing, he would wait for another estate’s funds to be deposited and then try to pay off the devisees from the first estate. This happened with at least four or five estates and snowballed into something of a pyramid scheme where he depended on estates from new clients to pay off the devisees of previous clients.
For example, on October 24, 2012, Williams mailed in an accounting of an estate wherein he reported to the probate court that his trust account was flush with client money. This was false because he had taken most of the money to pay personal living expenses. In fact, what money he did have in the account came from another estate that had nothing to do with the estate he was reporting on.
Ms. Drake stated the maximum penalty Williams can receive is a fine of $250,000 and/or imprisonment for 20 years, supervised release of up to life, plus a special assessment of $100.
The case was investigated by agents with the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Former Paralegal Sentenced to Federal Prison for Embezzlement from Two Law FirmsRead the Press Release
Greensboro, N.C. – A North Carolina resident was sentenced Friday to 65 months in federal prison on charges of wire fraud and aggravated identity theft, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
Penny S. DAVIS, 57, of Cary, North Carolina, was sentenced on January 12, 2018, by the Honorable Catherine C. Eagles, United States District Judge for the Middle District of North Carolina. DAVIS pled guilty to one count of mail fraud and one count of aggravated identity theft on May 17, 2017.
Court documents and the testimony of witnesses at the sentencing hearing reveal that DAVIS worked as a paralegal with an expertise in estate work. In this capacity, she worked at a Chapel Hill law firm on estate and guardianship cases. After resigning her position, a Durham law firm hired her to do similar work. DAVIS used her position at both firms to embezzle money from estates in probate in which the firms represented the executor of the estate. The court determined that DAVIS stole over $250,000 from multiple estates. This money was used by DAVIS in part to pay off bills she ran-up using credit cards belonging to the deceased whose estates were in probate or to disabled persons in guardianship. DAVIS used the funds to pay for trips to see Broadway shows and to keep horses among other things. In so doing, DAVIS illegally used the identifying information of the executor of one of the estates to carry out her scheme.
At the sentencing hearing, the District Court found that DAVIS targeted certain estates as being particularly vulnerable due to the absence of family members to oversee local probate proceedings. DAVIS also specifically targeted a retired North Carolina judge who had been rendered incompetent by dementia and age. DAVIS exploited the fact that her firm served as legal guardian for the retired judge to use a credit card in the judge’s name for her own benefit.
DAVIS also used sophisticated means to carry out and conceal her theft. Evidence at the sentencing hearing established that DAVIS used her extensive knowledge of the North Carolina probate system to falsify court documents to conceal her theft. DAVIS transferred money from estate to estate to cover her misappropriation of estate funds.
DAVIS successfully concealed her theft from both law firms despite the fact she worked for experienced trust and estate lawyers. In fact, the law firms did not discover her actions until after she had left the employ of the Durham law firm.
In addition to a 65-month term of imprisonment, Judge Eagles sentenced DAVIS to three years of supervised release and ordered her to pay $180,827.55 in restitution.
This case was investigated by the United States Department of Treasury Office of Inspector General Task Force and the Durham Police Department. Special Assistant United States Attorney Kennedy Gates and Assistant United States Attorney Frank Joseph Chut, Jr. prosecuted the case.
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Former Lake County Sheriff SentencedRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that John Buncich, age 72, of Crown Point, Indiana was sentenced before District Court Senior Judge James T. Moody. Buncich was sentenced to 188 months imprisonment, 2 years of supervised release and ordered to pay $800 in restitution along with a $250,000 fine.
In August of 2017, following a 14-day jury trial, Buncich was convicted of all 6 counts of a superseding indictment.
According to documents in this case, John Buncich, Timothy Downs and William Szarmach were indicted in November 2016 on multiple federal charges. Buncich, then the current Lake County Sheriff, served as sheriff from 1994-2002, and was re-elected in 2010 and again in 2014. Timothy Downs, formerly the Chief in the Lake County Sheriff’s Department, was the second person in command at that Department; Downs was appointed to that position by Buncich. William Szarmach owns and operates CSA Towing in Lake Station, Indiana.
Pursuant to a Lake County ordinance, the sheriff has exclusive authority to determine who would do vehicle towing as required by the sheriff’s department. From February 2014 continuing into October 2016, Buncich devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office. The scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters. The trial evidence established that a number of checks and cash payments, often collected by Downs, from Szarmach and Scott Jurgensen were exchanged for Buncich awarding them county towing business and towing in the City of Gary for ordinance violations. Mr. Jurgenson, a former Merrillville Police Officer, is the owner of Sampson Relocation and Towing. Mr. Jurgenson provided significant assistance to the United States during the course of this investigation.
Tthe jury convicted Buncich of 5 counts of Honest Services Wire Fraud in connection with this scheme. The jury also convicted Buncich of a charged violation of the federal bribery statute in connection with corruptly soliciting, demanding, and receiving over $25,000 in cash and $7,000 in checks in exchange for favorable actions by Buncich regarding the towing contracts.
Both Szarmach and Downs, who both testified at trial, await sentencing on their guilty pleas to the following charges in the indictment: Timothy Downs entered a plea of guilty to one count of Honest Services Wire Fraud and; William Szarmach entered a plea of guilty to three counts of Honest Services Wire Fraud, Bribery and Failure to File a Tax Return.
United States Attorney Thomas L. Kirsch II states, “Today’s sentence sends a strong message that betrayal of public trust will not be tolerated. All citizens deserve public officials who act honestly and who work for the public interest and not their own interest. My Office will continue to vigorously pursue public officials who use there office as a means for illicit personal gain.”
"Today’s sentencing emphasizes that public officials who abuse their positions for personal financial gain at the expense of taxpayers will not be tolerated,” said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "The FBI and our federal, state, and local partners will continue to aggressively pursue those across Indiana who corrupt their office for self-serving motives."
Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge stated, "Taxpayers expect their elected officials to protect and improve their communities. Rather than serve his community Buncich abused his position and devised a pay-to-play towing scheme that benefited him and few others financially. We hope today’s sentence will dissuade others who hold these positions which hinge on the public’s trust from engaging in similar criminal activity.”
This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Philip C. Benson and Maria N. Lerner.
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Former Head of Barclays New York Foreign Exchange Operation Indicted for Orchestrating Multimillion-Dollar Front-Running SchemeRead the Press Release
Update: On March 4, 2019, Senior U.S. District Court Judge Charles Roberts Breyer of the Northern District of California granted the Rule 29 motion and granted an acquittal. Mr. Bogucki was acquitted on all charges.
The former head of Barclays Capital Inc.’s (Barclays) New York foreign exchange trading operation was charged yesterday in an indictment for his alleged role in a scheme to defraud a client of Barclays through a method commonly referred to as “front-running.” The charges relate to the manipulation of foreign exchange options in advance of an exceptionally large trade by the Palo Alto, California-based Hewlett-Packard Company (HP) in 2011.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Alex G. Tse of the Northern District of California and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) made the announcement.
Robert Bogucki, 45, of East Setauket, New York, was charged in an indictment filed in the Northern District of California on Jan. 16, with one count of conspiracy to commit wire fraud and six counts of wire fraud. Bogucki will make his initial appearance on Wednesday, Jan. 17, at 2:00pm in Brooklyn, New York, before U.S. Magistrate Judge Cheryl L. Pollak of the Eastern District of New York.
“Robert Bogucki and others allegedly not only betrayed his client’s confidences, but also risked undermining public trust in the foreign exchange options market,” said Acting Assistant Attorney General Cronan. “The Criminal Division and our law enforcement partners remain committed to protecting American interests by investigating and prosecuting sophisticated schemes such as the one alleged in this indictment.”
“The indictment returned today charges a fraudulent manipulation scheme where the defendant betrayed Barclays’ client by lying and misusing the client information, and then masked the activities,” said Inspector General Lerner. “We are pleased to work with our law enforcement partners in investigating these matters and protecting the integrity of the banking system against such alleged abuses.”
According to the indictment, in September and October 2011, Bogucki misused information provided to him by HP, which had hired Barclays to execute a foreign exchange transaction related to the planned acquisition of a UK-based company. Barclays was selected to execute the foreign exchange transaction – which required the sale of 6 billion British pounds worth of options – in September 2011. The defendant and other Barclays employees assured HP and its employees that they understood the need to keep the planned transaction, which was exceptionally large, and therefore “market-moving,” confidential. Instead, Bogucki and other Barclays employees allegedly used the confidential information they received to manipulate the price of “volatility,” a metric that affects the value of foreign exchange options. During conversations with Bogucki, one Barclays trader stated that he and other traders would “bash the sh*t out of” and “spank the market” to depress the price of volatility. Other Barclays traders also discussed “hammer[ing] the market lower” in order to decrease the value of the HP’s options.
The indictment alleges that, as part of the scheme, Bogucki made misrepresentations to HP and its employees about Barclays’ activities and the state of the options market that concealed the self-serving nature of Barclays’ actions. Specifically, the indictment alleges that Bogucki directed options trading in a way that was designed to depress the price of volatility, to the benefit of Barclays and at HP’s expense.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law. This is the second indictment brought against the head of a foreign exchange desk of a global financial institution related to the Criminal Division’s ongoing investigation of fraud and manipulation in the foreign exchange markets.
The investigation is being conducted by the FDIC’s Office of Inspector General. Assistant Chief Brian Young and Trial Attorney Justin Weitz of the Criminal Division’s Fraud Section are prosecuting the case. The U.S. Attorney’s Office for the Northern District of California provided substantial assistance in this matter.
Former EMT and Volunteer Firefighter Admits Enticing Child to Produce Sexually Explicit ImagesRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man who worked as an emergency medical technician and volunteer firefighter today admitted enticing a child to produce sexually explicit images, U.S. Attorney Craig Carpenito announced.
Zachary Motta, 23, of Iselin, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of online enticement of a minor to engage in criminal sexual activity.
According to documents filed in this case and statements made in court:
Beginning in October 2016, Motta communicated with an underage boy who told Motta he was 12 years old. Motta used a computer and internet connection to ask the victim to send a picture of himself nude, which he did.
The count to which Motta pleaded guilty carries a mandatory minimum of 10 years in prison, a maximum of life in prison and a fine of $250,000, or twice the gross gain or loss caused by the offense. Sentencing is scheduled for May 10, 2018.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Newark Special Agent in Charge Timothy Gallagher, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Former CIA Officer Arrested for Retaining Classified InformationRead the Press Release
Jerry Chun Shing Lee, aka Zhen Cheng Li, 53, a former Central Intelligence Agency (CIA) officer, was arrested last night on charges of unlawful retention of national defense information.
Dana J. Boente, Acting Assistant Attorney General for National Security and 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.
Lee was arrested after arriving at John F. Kennedy International Airport in Queens, New York. Lee is a naturalized U.S. citizen, currently residing in Hong Kong, China. According to court documents, Lee began working for the CIA as a case officer in 1994, maintained a Top Secret clearance and signed numerous non-disclosure agreements during his tenure at CIA.
According to court documents, in August 2012, Lee and his family left Hong Kong to return to the United States to live in northern Virginia. While traveling back to the United States, Lee and his family had hotel stays in Hawaii and Virginia. During each of the hotel stays, FBI agents conducted court-authorized searches of Lee’s room and luggage, and found that Lee was in unauthorized possession of materials relating to the national defense. Specifically, agents found two small books containing handwritten notes that contained classified information, including but not limited to, true names and phone numbers of assets and covert CIA employees, operational notes from asset meetings, operational meeting locations and locations of covert facilities.
Lee made his initial appearance this afternoon in the Eastern District of New York. He is charged with unlawful retention of national defense information and faces a maximum penalty of 10 years in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Assistant U.S. Attorney Neil Hammerstrom of the Eastern District of Virginia and Deputy Chief Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Former CIA Officer Arrested for Retaining Classified InformationRead the Press Release
ALEXANDRIA, Va. – A former Central Intelligence Agency (CIA) officer was arrested last night on charges of unlawful retention of national defense information.
Jerry Chun Shing Lee, aka “Zhen Cheng Li”, 53, was arrested after arriving at John F. Kennedy International Airport in Queens, New York. Lee, who is a naturalized United States citizen, currently resides in Hong Kong, China. According to court documents, Lee began working for the CIA as a case officer in 1994, maintained a Top Secret clearance, and signed numerous non-disclosure agreements during his tenure at CIA.
According to court documents, in August 2012, Lee and his family left Hong Kong to return to the United States to live in northern Virginia. While traveling back to the United States, Lee and his family had hotel stays in Hawaii and Virginia. During each of the hotel stays, FBI agents conducted court-authorized searches of Lee’s room and luggage, and found that Lee was in unauthorized possession of materials relating to the national defense. Specifically, agents found two small books containing handwritten notes that contained classified information, including but not limited to, true names and phone numbers of assets and covert CIA employees, operational notes from asset meetings, operational meeting locations and locations of covert facilities.
Lee made his initial appearance this afternoon in the Eastern District of New York. He is charged with unlawful retention of national defense information and faces a maximum penalty of 10 years in prison, if convicted. 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, Acting Assistant Attorney General for National Security and 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. Assistant U.S. Attorney Neil Hammerstrom and Deputy Chief Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Section 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. 1:18-mj-18.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Berkeley County School District CFO Pleads Guilty to Embezzlement, Money Laundering and Public CorruptionRead the Press Release
Charleston, South Carolina --- United States Attorney Beth Drake announced today that Brantley Thomas, 61, of Hanahan, South Carolina, pled guilty to a total of twenty federal charges involving Embezzlement, Money Laundering and Public Corruption. Evidence provided at the guilty plea established that Thomas, as the Berkeley County School District (BCSD) CFO, was responsible for paying BCSD vendors. When payment was due to certain vendors, Thomas would intentionally overpay the vendors so that a refund check would be issued back to BCSD by the vendor. Thomas then converted the refund checks issued to BCSD to his own use. Thomas’ scheme involved sometimes depositing the refund checks into a personal bank account, and other times converting the checks into money orders, which he would then deposit into a personal account. Thomas converted approximately $450,000.00 of School District money this way, spending the money on things such as travel and private club memberships.
Thomas also pleaded guilty to ten counts of Public Corruption. Thomas admitted to taking sixteen kickbacks of $2,000.00 each, for a total of $32,000.00, from an insurance vendor in exchange for BCSD business.
The Embezzlement and Money Laundering counts each carry up to ten years imprisonment. The Public Corruption charges each carry up to twenty years imprisonment. United States District Court Judge David C. Norton took the plea. A sentencing date has not yet been set.
The charges are the result of an investigation conducted by the Federal Bureau of Investigations and South Carolina Law Enforcement Division. Assistant United States Attorney Nathan Williams and Assistant Attorney General Creighton Waters are prosecuting the case.
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Eye care provider convicted of Medicare and Medicaid fraudRead the Press Release
GAINESVILLE, Ga. - Matilda Lynn Prince has been convicted by a federal jury of twenty-nine counts of health care fraud for filing fraudulent claims with Medicare and the Georgia Medicaid program for optometry and ophthalmology services that were never provided to patients.
“Prince stole hundreds of thousands of dollars from the Medicare and Medicaid programs by submitting fraudulent claims for services that were not performed,” said U.S. Attorney Byung J. “BJay” Pak. “Through our partnership with the Georgia Attorney General’s office, we will continue to fight the costly effects of healthcare fraud in this state that divert critical resources away from citizens who truly need these services.”
“When Matilda Lynn Prince launched her audacious million-dollar fraud scheme by billing Medicare and Medicaid for services she and her associates never provided, she threatened the integrity of these important health care programs and fraudulently pocketed taxpayer funds,” said Special Agent in Charge Derrick L. Jackson of the HHS Office of Inspector General. “Along with our law enforcement partners, we will continue to hold such fraudsters accountable for their scams.”
“The Medicaid Program is designed to provide benefits to some of the most vulnerable members of our community and depends on the integrity and honesty of those providers who bill Medicaid. When a provider bills Medicaid for services they did not provide, they victimize and take advantage of the people who need it the most. Our office will continue to work hand-in-hand with our federal and state partners to investigate these kinds of egregious cases,” said Georgia Attorney General Christopher M. Carr.
According to U.S. Attorney Pak, the charges and other information presented in court: Prince owned Pickens Eye Clinic in Jasper, Georgia, and operated Eye Gallery 20/20 in Calhoun, Georgia. From September 2011 to February 2014, Prince submitted false claims to Medicare and Medicaid for optometry and ophthalmology services that were never provided to patients.
Despite being previously excluded from the Medicare and Medicaid programs in September 2011, and informed of her ineligibility to be employed or involved with any entity that receives Medicare or Medicaid funds, Prince operated under a new eye service company named Eye Gallery 20/20 to bill Medicare and Medicaid for services that were not rendered. As part of the scheme, Prince targeted her advertising towards senior citizens and disabled populations in housing complexes and community centers, offering on-site eye exams and prescription glasses at no charge to patients on Medicare and Medicaid. Prince contracted with two licensed optometrists to provide basic eye exams. The optometrists would sometimes travel with Prince to perform these exams.
Although the patients received only basic eye exams and measurements for prescription glasses, Prince often billed for complex ophthalmological procedures involving the surgical insertion of medical devices called “punctal plugs” into patients' tear ducts to treat dry eye conditions. Prince then used the identities of these two optometrists to bill Medicare and Medicaid repeatedly for this procedure. On some occasions, she billed for the same patient as many as seven times on the same claimed date of service, even though the procedures were never performed. Prince fraudulently submitted over $1.2 million in insurance claims to Medicare and Medicaid for services never rendered.
On January 9, 2018, after a jury trial, Matilda Lynn Prince, 41, of Mineral Bluff, Georgia, was convicted of twenty-nine counts of health care fraud. A sentencing date for Prince has not yet been set.
This case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General and the Georgia Medicaid Fraud Control Unit.
Assistant U.S. Attorneys Bernita B. Malloy and Nekia S. Hackworth prosecuted 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.
Ecuadorian National Sentenced to Prison for Passport FraudRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MANUEL ANTONIO GUAMAN, 34, a citizen of Ecuador last residing in Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment and three years of supervised release for passport fraud.
According to court documents and statements made in court, GUAMAN is a native and citizen of Ecuador. On or about August 2, 2006, he submitted in person an application for a U.S. passport, in the name of another individual, at a U.S. Post Office in Waterbury. Claiming to be this individual, GUAMAN presented to the passport acceptance agent a Puerto Rican birth certificate and a Connecticut identity card. Neither the birth certificate nor the identity card reflected the defendant’s true identity. GUAMAN signed the passport application under oath claiming to be this other individual. This passport was issued and used by GUAMAN to travel between the U.S. and Ecuador in 2012.
On October 23, 2014, GUAMAN submitted a passport renewal application, and provided the previous passport as proof of his identity and U.S. citizenship. On December 31, 2015, after conducting an investigation, law enforcement interviewed GUAMAN while he was incarcerated in a Connecticut Department of Correction facility. GUAMAN admitted that he had signed and submitted the above-referenced passport renewal application, and that he was not the person whom he had claimed to be in the application.
On July 11, 2017, GUAMAN pleaded guilty to one count of use of a passport secured by false statement and one count of making a false statement in a passport application.
GUAMAN is currently serving a state sentence for assault in the first degree. He will be removed to Ecuador after serving his state and federal prison terms.
This case was investigated by the U.S. Department of State, Bureau of Diplomatic Security. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
East St. Louis Man Sentenced to Prison for Firearm OffensesRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that on January 11, 2018, Leon Johnson, 28, of Granite City, Illinois, was sentenced after being convicted of one count of felon in possession of a firearm. At the time of his arrest, Johnson was on supervised release in a prior federal case involving a conviction for felon in possession of a firearm. A petition to revoke his supervised release was filed in that case after Johnson’s arrest. Pursuant to a sentencing agreement, the Honorable Nancy J. Rosenstengel sentenced Johnson to a total of 37 months in federal prison on the new conviction as well as the supervised release revocation case. Johnson’s prison sentence is to be followed by three years of supervised release and a $100 special assessment. Johnson also agreed to forfeit the illegal firearm that he possessed.
Court proceedings revealed that on November 9, 2016, East St. Louis police officers responded to a call regarding shots being fired in the Norman E. Owens Housing Projects. Officers discovered Johnson sitting on a park bench with a loaded pistol on the ground at his feet. A Housing Authority officer identified Johnson as the individual who had been firing the pistol in the air moments earlier.
The case was investigated by the East St. Louis Police Department and prosecuted by Assistant United States Attorney Christopher Hoell.
Dunbar felon sentenced to federal prison for gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Dunbar felon who possessed a firearm in February 2017 was sentenced today to three years and four months in federal prison, announced United States Attorney Mike Stuart. Amanda Renee Taylor, 40, previously pleaded guilty to being a felon in possession of a firearm. U.S. Attorney Stuart commended the investigation of the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Putnam County Sheriff’s Office.
On February 7, 2017, Taylor possessed two firearms, a Lorcin .380 caliber pistol and a High Standard .22 caliber revolver, when she was arrested for stealing mail. Taylor admitted that she stole the mail and possessed methamphetamine and counterfeit United States currency found when she was arrested. Taylor was prohibited from possessing any firearms under federal law because of a 2009 felony drug conviction in Kanawha County Circuit Court.
Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Dorchester Man Sentenced for Role in $4 Million Bank Fraud ConspiracyRead the Press Release
BOSTON – A Dorchester man was sentenced today in federal court in Boston in connection with a $4 million bank fraud scheme.
Charles Washington, 44, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 126 months in prison, five years of supervised release, and ordered to pay restitution of $1,836,819 and a fine of $30,000. In August 2017, Washington pleaded guilty to one count of bank fraud conspiracy and four counts of bank fraud for his role in coordinating unauthorized withdrawals from federally insured banks.
Washington obtained bank account information, personally identifiable information, and sample signatures from bank customers with high balances. He then recruited runners to impersonate the account holders in order to make unauthorized withdrawals by obtaining and distributing fake driver’s licenses to the runners that bore the runners’ photographs with the account holders’ personal information. Washington instructed the runners on how to forge the victims’ signatures. To avoid detection, runners withdrew money from victims’ accounts at several different bank branches.
Washington and others also recruited runners to open bank accounts (known as drop accounts) in the name of non-existent businesses (known as shell business). The shell businesses were registered and named as if they were title companies, property management companies, contracting businesses, and other businesses for which incoming large-dollar wire transfers would not be unusual. Washington provided the shell businesses’ information to co-conspirators who made unauthorized wire transfers in the hundreds of thousands of dollars into the drop accounts. Once the drop accounts were funded with unauthorized wire transfers, Washington and the co-conspirators accompanied runners to bank branches to withdraw the money -- in cash, by check, or by wire transfers to other drop accounts -- before the victims of the unauthorized wire transfers realized that their accounts had been compromised.
Washington and the co-conspirators gained unauthorized access to approximately $4 million - either in bank accounts that they took over, or in proceeds unlawfully wired to drop accounts for withdrawal - and successfully withdrew approximately $2 million.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney Seth B. Kosto of Lelling’s Cybercrime Unit prosecuted the case.
Dominican National Sentenced to 12 Years in Prison for Distributing Fentanyl and over One Kilo of HeroinRead the Press Release
BOSTON – A Dominican national, who led a large-scale heroin and fentanyl trafficking organization in southeastern Massachusetts, was sentenced today in federal court in Boston.
Dedwin Cruz-Rivera, 41, a Dominican national residing in Fall River, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 12 years in prison and five years of supervised release. Cruz-Rivera will be subject to deportation upon completion of his sentence. In July 2017, Cruz-Rivera pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute one kilogram or more of heroin and 40 grams or more of fentanyl.
In October 2015, Cruz-Rivera was arrested and charged, along with 24 others, for leading a heroin and fentanyl trafficking organization in southeastern Massachusetts. Cruz-Rivera obtained large quantities of heroin and fentanyl from local drug suppliers, including his brother Manuel Romero-Gonsalez, and Eric Matos, who distributed in and around Fall River and Providence, R.I. Cruz-Rivera used co-defendant Cristian Sostre as a courier and stash house operator in order to decrease the likelihood that he would be detected by law enforcement. During the course of their investigation, federal agents seized 295 grams of fentanyl that were en route to Cruz-Rivera.
An April 2016 superseding indictment brought the total number of defendants charged in the case to 26. All of the 26 defendants charged in the case have pleaded guilty, and 23 have been sentenced, including Romero-Gonsalez and Matos, who are serving 66 months and 121 months in federal prison, respectively.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Thomas E. Kanwit, Karen Beausey, Katherine Ferguson and Ann Taylor of Lelling’s Narcotics and Money Laundering Unit are prosecuting the cases.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was sentenced today in federal court in Boston for an immigration crime.
Manolo Sosa-Nieves, 45, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one year and one day in prison and three years of supervised release. Sosa-Nieves will face deportation proceedings upon completion of his sentence. In August 2017, Sosa-Nieves pleaded guilty to one count of illegal reentry after deportation.
On April 14, 2017, Sosa-Nieves was arrested in Lawrence on unrelated state charges and determined to be unlawfully present in the United States; he had previously been deported on Aug. 21, 2002.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling's Major Crimes Unit prosecuted the case.
Deputy Sheriff, Three Cohorts Arrested in Drug Trafficking Scheme After Agreeing to Provide Security for Narcotics ShipmentsRead the Press Release
LOS ANGELES – A Los Angeles County deputy sheriff who allegedly agreed on two occasions to oversee the delivery of narcotics and other contraband in exchange for cash payments was arrested this morning, along with three other men, on federal narcotics charges.
Special agents with the Federal Bureau Investigation this morning arrested Deputy Sheriff Kenneth Collins and the other three after they arrived in Pasadena, allegedly to provide “security” for the transport of nearly 45 pounds of cocaine and more than 13 pounds of methamphetamine. During the FBI’s undercover investigation, Collins allegedly agreed that he and his team would accompany the narcotics and take calculated steps to prevent legitimate law enforcement from intercepting the drugs – in exchange for cash payments as high as $250,000.
Collins and two other men were charged in a federal criminal complaint filed last week. Collins and these two co-defendants allegedly provided security in November for the transport of what they thought was six kilograms of methamphetamine, as well as marijuana and counterfeit cigarettes.
In justifying the high fees for his services, Collins allegedly told an undercover FBI agent “we’re cops” and “all of our transports make it through.”
Those named in the complaint are:
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Deputy Sheriff Collins, 50, of Chino;
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David Easter, 51, of the Hyde Park District of Los Angeles; and
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Grant Valencia, 34, of Pomona.
The fourth man arrested this morning – Maurice Desi Font, 56, of South Los Angeles – is expected to be charged by federal prosecutors in a second criminal complaint later today.
The four defendants – who are charged with conspiracy to distribute controlled substances – are expected to make their first court appearances this afternoon in United States District Court in downtown Los Angeles.
“Deputy Collins sold his badge to assist an individual he thought was a drug trafficker,” said United States Attorney Nicola T. Hanna. “The deputy allegedly used his status as a law enforcement officer as a guarantee when he promised safe travels for large quantities of illegal narcotics. This case is part of our long-standing and ongoing commitment to root out corruption, particularly when it involves sworn law enforcement officers.”
“Deputy Collins used his position of trust and appropriated his authority to conduct lucrative criminal activity with others at the expense of Los Angeles County residents,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and the Los Angeles County Sheriff’s Department address many crime areas jointly and share the goal of identifying and addressing internal problems when they arise. Sheriff McDonnell, who continues to reform the Los Angeles County Sheriff’s Department, cooperated fully with the investigation. While our investigation continues to determine whether others may have been involved, this should not be viewed as an indictment of the many dedicated servants at the Los Angeles County Sheriff's Department, some of whom brought this unlawful activity to our attention. Today’s arrest exemplifies the FBI’s commitment to weeding out corruption by public officials and restoring trust in our law enforcement professionals.”
The affidavit in support of the complaint filed last week outlines a scheme in which Collins agreed to accept tens of thousands of dollars in cash in exchange for his “team” providing security during the transportation of large quantities of drugs from the Los Angeles area to Las Vegas, Nevada.
On November 14, after Collins negotiated a $25,000 payment in exchange for providing security during the transport of contraband, Collins, Easter and Valencia participated in a caravan that traveled to Las Vegas.
The trio was arrested this morning after allegedly agreeing to provide security for the transport of 20 kilograms of cocaine, six kilograms of methamphetamine and cash from Pasadena to Las Vegas, in exchange for $250,000. During negotiations, Collins said he would bring a larger team than used during the November transport, and those additional members would include other law enforcement officers. When the team arrived this morning at the pre-determined location, Font was the fourth member of the team.
According to the affidavit, the FBI had been investigating Collins in relation to a scheme to accept cash payments in exchange for providing security for illegal marijuana grow facilities, as well as assisting in the distribution of controlled substances.
An undercover FBI agent – who was posing as a family member of a wealthy investor looking to finance an illegal marijuana grow house – first met with Collins in August 2017. Collins offered to provide security for an illegal marijuana grow house and claimed to have three “teams” that already provided security for drug operations across San Bernardino and Los Angeles counties.
During one of the August meetings, Collins displayed his Sheriff’s Department badge and lifted his shirt to reveal a firearm hidden in his waistband, which investigators believe was to emphasize that he was a law enforcement officer and his services therefore were more valuable to a drug organization. According to the affidavit, this meeting concluded with the undercover agent paying Collins $5,000 in “good faith” money for future services.
Over the course of several meetings, Collins also offered to “fix problems” for the undercover agent, including by physically assaulting people, in exchange for cash. According to the affidavit, Collins claimed to have a very “professional” “team” comprised of “cops” who “travel...with guns.” He described how he and two others recently “handled” a situation for a “client” in Boston by setting a luxury truck on fire.
During a meeting in September, the undercover agent told Collins that he was having an “issue” with a person in Northern California, and, in exchange for $2,000, Collins performed and delivered a “work-up” on that person, which included obtaining that person’s home address and driver’s license number, according to the affidavit. When Collins delivered the “work-up” in early October, the deputy sheriff allegedly said that he could provide additional services in relation to the Northern California person: “We can definitely, you know, kind of impact him a little bit.”
As part of negotiations with the undercover agent, Collins also facilitated the sale of two pounds of marijuana to the agent, which Easter delivered. If this smaller “test run” sale of marijuana went well, Collins offered to facilitate the sale of up to $4 million worth of marijuana every month to the agent, according to the affidavit.
In relation to the November transport of what Collins and his co-conspirators understood to be methamphetamine and marijuana, Collins provided a team of three – one of whom drove ahead of the transport vehicle to scout for law enforcement, one of whom accompanied an undercover agent driving the drug transport vehicle, and Collins in a follow car. According to the affidavit, Collins and his team received a total of $25,000 for this transport.
Following the success of the November transport, Collins discussed with the primary undercover agent another, larger shipment. During a meeting on January 5, Collins agreed to bring Easter and Valencia – as well as other team members – to oversee the transport of 20 kilograms of cocaine, six kilograms of methamphetamine and cash. Although the undercover agent initially offered $75,000 as payment to Collins and his team, according to the affidavit, Collins pushed for more, saying that his “guys” are used to providing security for “bigger loads.” Collins ultimately agreed to provide his team’s services in exchange for $250,000.
When they arrived at the agreed-upon location this morning where the drug transport was to begin, FBI agents arrested Collins and the other three men without incident.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If they were to be convicted of the drug trafficking conspiracy alleged in the criminal complaints, each defendant would face a sentence of up to life in prison.
The case against Collins and his co-defendants is the result of an investigation by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
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Delaware Man Convicted of Sex Trafficking ChargeRead 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 Austin Campbell, 45, of Smyrna, Delaware, pleaded guilty, before U.S. District Chief Judge Frank P. Geraci, Jr., to the crime of interstate travel with intent to engage in illicit sexual conduct. The offense carries a maximum possible sentence of a term of imprisonment of 30 years and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between June 15, 2017, and August 22, 2017, the defendant, began communicating on a social networking application with an undercover agent employed by the Department of Homeland Security. At the time, Campbell believed the agent was a 15-year-old female from Buffalo. The defendant engaged in very graphic sexual conversations with the agent via chat messages. During them, Campbell discussed traveling to Buffalo to engage in sexual activity.
On August 21, 2017, the defendant indicated that he would be in Buffalo on August 23, 2017. He and the undercover agent discussed the details of how they would meet. On August 23, Campbell traveled from the State of Delaware to a truck stop located in Cheektowaga, NY. After arriving at the truck stop, the defendant sent the agent a message to come and meet him in the parking lot. Campbell was arrested at that time.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for April 5, 2018, at 3:00 p.m. before Chief Judge Geraci.
Delaware County Man Sentenced to 90 Years in Federal PrisonRead the Press Release
PHILADELPHIA – Matthew Maffei, aka “Uncle Matt,” of Aston, Delaware County, PA, was sentenced today to 90 years in federal prison for his manufacture of sexually explicit images of the 7-year old daughter of his childhood friend, and the transportation, receipt, and possession of child pornography. The Honorable Mitchell S. Goldberg, United States Disitirct Judge in the Eastern District of Pennsylvania, also imposed lifetime supervised release, a $20,000 assessment pursuant to the Justice for Victims of Trafficking Act, $5,000 in restitution, and a $400 special assessment. Maffei, a first time offender, previously pled guilty to all charges in the federal indictment.
The Government sought the statutory maximum sentence of 90 years based on the defendant’s horrific sexual abuse of the young victim. Maffei sexually abused the 7-year old child in the victim’s own home, as her parents slept in the next bedroom. He also forced the victim’s 5-year old brother to witness his abuse of the 7-year old on one occasion, and threatened to kill both children if they told their parents what Maffei had done. As part of the sexual assaults on this child, the defendant defecated on her face. Calling the sexual assaults “unspeakable,” the District Court imposed a prison sentence of 90 years, asking the parents to assure the victim and her brother that “this defendant will never in this lifetime be released from custody.”
The case was investigated by the FBI in conjunction with the Delaware County District Attorney’s Office and the Internet Crimes Against Children Unit (ICAC), as well as the Middleton Township, DE Police Department. It was prosecuted by Assistant United States Attorney Michelle Rotella.
Dark-Web Drug Traffickers Sentenced in Separate Cases to 80 Months and 70 Months in PrisonRead the Press Release
FRESNO, Calif. — In separate cases, two defendants were sentenced today for drug trafficking on the dark-web marketplace AlphaBay, U.S. Attorney McGregor W. Scott announced.
Chief U.S. District Judge Lawrence J. O’Neill sentenced David Ryan Burchard, 40, of Merced, to six years and eight months in prison. He sentenced Emil Vladimirov Babadjov, 33, a Bulgarian and U.S. dual-national formerly residing in San Francisco, to five years and 10 months in prison.
Dark web sites such as AlphaBay operate on “The Onion Router” or “TOR” network, a special network of computers on the internet, which are distributed around the world. The network is designed to conceal the true Internet Protocol (IP) addresses of computers that access the network, and thus the locations and identities of the network’s users and the computer servers hosting the websites, which are referred to as “hidden services.” The “hidden services” have complex web addresses generated by a computer algorithm ending in “.onion” and can only be accessed through specific web browser software designed to access the TOR network. AlphaBay was shut down by U.S. law enforcement on July 5, 2017, and is no longer in operation.
According to court documents, Burchard, using the moniker “Caliconnect,” was a major narcotics vendor on the Silk Road and other dark-web marketplaces, including Agora, Abraxas and AlphaBay. Burchard accepted orders for marijuana and cocaine on the dark web and then mailed the narcotics from post offices in Merced and Fresno County to customers located throughout the United States. Burchard was paid primarily in Bitcoin. Burchard conducted sales in excess of $1.4 million on the Silk Road before that marketplace was closed, at which point Burchard transferred his narcotics business to Agora and then to AlphaBay.
In a separate case, Babadjov, using the monikers “Blime-Sub” and “BTH-Overdose,” was a heroin, fentanyl, and methamphetamine trafficker on the dark-web marketplace AlphaBay. Babadjov accepted orders for drugs on AlphaBay and then mailed the drugs from a post office in San Francisco to customers throughout the United States. On October 20, 2016, law enforcement agents made an undercover purchase of heroin from “Blime-Sub,” which was delivered to a post office box in the Eastern District of California. The parcel contained a mixture of fentanyl and heroin.
The Burchard case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service, Criminal Investigation (IRS-CI), the U.S. Postal Inspection Service, and the Fresno Police Department. The Babadjov case was the product of an investigation by the Drug Enforcement Administration with assistance from ICE-HSI, IRS-CI, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Grant B. Rabenn prosecuted the cases.
Babadjov is currently in federal custody, and Burchard was ordered to surrender to federal custody on April 12, 2018.
These cases were part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
DOJ, DHS Report: Three Out of Four Individuals Convicted of International Terrorism and Terrorism-Related Offenses were Foreign-BornRead the Press Release
Today, the Department of Justice (DOJ) and the Department of Homeland Security (DHS) released a report, revealing that three out of every four, or 402, individuals convicted of international terrorism-related charges in U.S. federal courts between September 11, 2001, and December 31, 2016 were foreign-born. Over the same period, U.S. Immigration and Customs Enforcement removed approximately 1,716 aliens with national security concerns. Further, in 2017 alone DHS had 2,554 encounters with individuals on the terrorist watch list (also known as the FBI’s Terrorist Screening Database) traveling to the United States.
This report was required by Section 11 of President Trump’s Executive Order 13780, Protecting the Nation from Foreign Terrorist Entry into the United States, which declared that “it is the policy of the United States to protect its citizens from terrorist attacks, including those committed by foreign nationals,” directed a series of actions to enhance the security and safety of the American people. The actions directed by Executive Order have raised the baseline for the vetting and screening of foreign nationals, prevented the entry of malicious actors, and enhanced the safety and security of the American people.
“This report reveals an indisputable sobering reality—our immigration system has undermined our national security and public safety,” said Attorney General Sessions. “And the information in this report is only the tip of the iceberg: we currently have terrorism-related investigations against thousands of people in the United States, including hundreds of people who came here as refugees. Our law enforcement professionals do amazing work, but it is simply not reasonable to keep asking them to risk their lives to enforce the law while we admit thousands every year without sufficient knowledge about their backgrounds. The pillars of President Trump’s immigration policy—securing our porous borders, moving to a merit-based immigration system that ends the use of diversity visas and chain migration, and enforcing our nation’s laws—will make their jobs easier and make the United States a safer place.”
“My top priority as Secretary of Homeland Security is to ensure the safety and security of the American people,” said Secretary Nielsen. “This report is a clear reminder of why we cannot continue to rely on immigration policy based on pre-9/11 thinking that leaves us woefully vulnerable to foreign-born terrorists, and why we must examine our visa laws and continue to intensify screening and vetting of individuals traveling to the United States to prevent terrorists, criminals, and other dangerous individuals from reaching our country. Without legislative change, DHS will continue to see thousands of terrorists a year attempt to enter the United States, and while we must be right every time, the terrorists only need to be lucky once. Therefore, DHS has personnel deployed around the world and along our borders working with our global and domestic law enforcement partners to stop terrorists before they enter the homeland.”
The report reveals that at least 549 individuals were convicted of international terrorism-related charges in U.S. federal courts between September 11, 2001, and December 31, 2016. An analysis conducted by DHS determined that approximately 73 percent (402 of these 549 individuals) were foreign-born. Breaking down the 549 individuals by citizenship status at the time of their respective convictions reveals that:
- 254 were not U.S. citizens;
- 148 were foreign-born, naturalized and received U.S. citizenship; and,
- 147 were U.S. citizens by birth.
According to information available to U.S. Immigration and Customs Enforcement (ICE), since September 11, 2001, there were approximately 1,716 removals of aliens with national security concerns.
As mentioned above, in FY 2017, DHS encountered 2,554 individuals on the terrorist watchlist (also known as the FBI’s Terrorist Screening Database) traveling to the United States. Of those individuals, 335 were attempting to enter by land, 2,170 were attempting to enter by air, and 49 were attempting to enter by sea. Where consistent with the law, such individuals are denied entry into the United States, while in some cases law enforcement authorities are notified and can take appropriate action.
From October 1, 2011, to September 30, 2017, a total of 355,345 non-U.S. citizen offenders, were administratively arrested after previously being convicted of an aggravated felony, as defined in 8 U.S.C. § 1101(a)(43), or two or more crimes each punishable by more than one year (felony offenses). During that same period, a total of 372,098 non-U.S. citizen offenders were removed from the United States after conviction of an aggravated felony or two or more felonies.
Data from U.S. Citizenship and Immigration Services’ Fraud Detection and National Security Directorate shows that between 2007 and 2017, USCIS referred 45,858 foreign nationals who applied for immigration benefits to ICE for criminal or civil enforcement action, based on information indicating that such foreign nationals had committed egregious public safety-related offenses within the United States.
Between FY 2010 and FY 2016, CBP identified and prevented the boarding of 73,261 foreign travelers on flights destined for the United States, who may have presented an immigration or security risk.
In October, the Trump Administration sent to Congress a list of legislative priorities that would enhance our national security—such as eliminating the diversity visa lottery and extended family chain migration, funding the wall, closing loopholes in our asylum system, combatting visa overstays, and closing other loopholes in existing law that potentially benefit aliens who pose threats to our national security.
Background on the Executive Order
Section 11 of Executive Order requires the Secretary of Homeland Security, in consultation with the Attorney General, to collect and make publicly available the following information:
- Information regarding the number of foreign nationals in the United States who have been charged with terrorism-related offenses while in the United States; convicted of terrorism-related offenses while in the United States; or removed from the United States based on terrorism-related activity, affiliation with or provision of material support to a terrorism-related organization, or any other national-security-related reasons;
- Information regarding the number of foreign nationals in the United States who have been radicalized after entry into the United States and who have engaged in terrorism-related acts, or who have provided material support to terrorism-related organizations in countries that pose a threat to the United States;
- Information regarding the number and types of acts of gender-based violence against women, including so-called “honor killings,” in the United States by foreign nationals; and,
- Any other information relevant to public safety and security as determined by the Secretary of Homeland Security or the Attorney General, including information on the immigration status of foreign nationals charged with major offenses.
Columbus, Ohio man admits failure to update sex offender registryRead the Press Release
WHEELING, WEST VIRGINIA – Christopher D. Barker, of Columbus, Ohio, has admitted today to failing to update his sex offender registration, United States Attorney Bill Powell announced.
Barker, also known as Christopher D. Cooper, age 29, pled guilty to one count of “Failure to Update Registration as a Sex Offender - SORNA.” Barker, having previously been convicted as a sex offender, admitted to changing addresses without updating his sex offender registration. The crime occurred from August to October 2017 in Ohio County, West Virginia and elsewhere.
Barker faces up to ten years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The United States Marshal Service is investigating.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.City of Atlanta’s former Chief Procurement Officer Adam Smith sentenced to federal prison for taking bribesRead the Press Release
ATLANTA - Adam L. Smith, the former Chief Procurement Officer for the City of Atlanta, has been sentenced to federal prison for conspiring to accept more than $40,000 in bribe payments from a vendor who obtained millions of dollars in city contracts.
“As the City of Atlanta’s Chief Procurement Officer, Smith was given great trust and power by its citizens. He chose to serve his own financial interests rather than use that trust to serve the public,” said U.S. Attorney Byung J. “BJay” Pak. “His prison sentence is a strong reminder to those tempted to trade their public positions and authority for money – the U.S. Attorney’s Office and our law enforcement partners will not stand idly by. To the contrary, we are committed to the investigation and prosecution of public corruption offenses to combat the corrosion of people’s trust in their government.”
“Let this sentence serve as a further reminder of the FBI’s commitment to hold public officials accountable by exposing those who engage in criminal conduct,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “We ask that anyone who has information regarding similar actions by any public official to contact their nearest FBI field office.”
“Smith abused his position of authority for financial gain, and made a decision to accept bribes and award contracts which were not in the best interest of the public he was hired to serve,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “Smith is being held accountable and the sentence given today should be a deterrence to those individuals who think that they can accept bribes without legal consequences.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From 2003 to February 21, 2017, Smith served as the Chief Procurement Officer for the City of Atlanta, Georgia. As the Chief Procurement Officer, Smith oversaw the City of Atlanta’s purchasing activities and its expenditure of billions of dollars in public money for projects.
During Smith’s tenure as the Chief Procurement Officer, Atlanta awarded contracts worth millions of dollars to a particular vendor’s construction firm and joint venture projects of which the same vendor was a partner (the information does not identify the vendor by name).
From at least 2015 to January 2017, Smith met privately with the vendor on multiple occasions, frequently at local restaurants. During these meetings, Smith and the vendor discussed Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, the vendor was actively seeking contracts, projects, and work with Atlanta.
After most of these meetings, the vendor and Smith met in the restaurant’s bathroom, where the vendor paid Smith approximately $1,000 in cash. In return for the bribe payments, the vendor expected Smith to use his position and power to assist the vendor with contracting/procurement with Atlanta and to furnish the vendor with future benefits and favors when needed.
Given his position, Smith was annually required to sign a financial disclosure statement certifying that he had not received more than $5,000 in annual income from any corporation, partnership, proprietorship, other business entity, other than Atlanta. Additionally, under Atlanta’s Procurement Code, Smith also had to “make a written determination as to the existence” of any “personal or organizational conflicts of interests exist” between vendors and Atlanta before awarding a vendor a solicited contract. Similarly, Atlanta’s Procurement Code mandated that Smith “certify to the city council” that the winning vendors had disclosed to Atlanta any “organizational and personal relationships” and that the “award of the contract [was] appropriate.”
Furthermore, in exchange for those cash payments:
- Smith met with the vendor on a regular basis;
- Smith provided the vendor with information and counsel regarding Atlanta’s procurement processes (among other information);
- When the vendor’s firm or joint venture became the successful bidder on an Atlanta contract or Request for Proposal, Smith approved and submitted the award of such procurement projects or bids to Atlanta’s mayor and city council for final authorization;
- Smith never disclosed his ongoing financial relationship with the vendor and/or the vendor’s firm on his Financial Disclosure Statements to Atlanta; and
- Smith never advised Atlanta’s City Council that the vendor’s firm or joint venture had failed to disclose its organizational and personal relationships with him.
From 2015 to January 2017, the vendor paid Smith more than $40,000 in cash.
On September 25, 2017, Smith, 53, of Atlanta, Georgia, pleaded guilty to conspiratorial bribery. He was sentenced by U.S. District Judge Steven Jones to two years, three months in prison, three years of supervised release, ordered to pay $44,000 in restitution, and a $25,000 fine.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated this case.
Assistant U.S. Attorney Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, Assistant U.S. Attorney Jill E. Steinberg, Deputy Criminal Division Chief, and First Assistant U.S. Attorney Kurt R. Erskine prosecuted 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.
Citizen of Dominican Republic Sentenced to 120 Months for Heroin TraffickingRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Toribio Guerrero Marte, a/k/a Luis Rodriguez Lugo, a/k/a Boss, 32 of the Dominican Republic was sentenced to 120 months in federal prison for heroin trafficking.
Documents filed with the court established that Guerrero Marte participated in a drug trafficking organization between June 2015 and October 2016. This organization distributed heroin to customers from Massachusetts and New Hampshire. The defendant admitted that he delivered drugs to customers of the organization on a daily basis.
The defendant pleading guilty to conspiracy to distribute and to possess with the intent to distribute heroin on August 7, 2017. After serving his prison sentence, he will be on supervised release for 3 years. He also faces possible deportation to the Dominican Republic after he has served his sentence.
The investigation and prosecution of Guerrero Marte was part of a Drug Enforcement Administration (DEA) effort to address heroin distribution in New Hampshire. In addition to Toribio Guerrero Marte’s prosecution, his brother Alberto Guerrero Marte, 38, received a 15-year sentence, Allison DeJesus, age 19, received a sentence of five years of probation. Jonaly DeJesus, 22, received a sentence of time served and five years of supervised release, and Allan Raymond Pimentel, 21, received a sentence of 57 months in prison. Michell DeJesus, 34, Maria Miguelina Lara Lara, 33, Santo Rodolfo Garcia Mendez, 33, Wilkin Andres Beltre Arias, 39, Edward Garcia, 31, and Luis Colon, 30, are all awaiting sentencing. In a related case, Mark Gagnon, 54, of Candia, was sentenced to 48 months in prison.
“Members of the law enforcement community in New Hampshire are united in our effort to stop the flow the flow of heroin and other deadly drugs into the Granite State,” said Acting U.S. Attorney Farley. “Those who attempt to profit from the sale of these drugs will be identified and prosecuted. I salute the law enforcement agencies whose teamwork made this prosecution possible.”
“Those suffering from the disease of opioid addiction need access to treatment and recovery,” said DEA Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like heroin to the citizens of New Hampshire need to be held accountable for their actions. DEA pledges to aggressively pursue Drug Trafficking Organizations or individuals who are coming from out of state to distribute this poison in order to profit and destroy people’s lives. This investigation would not have been a success without the continued commitment of our local, state and federal law enforcement partners.”
This matter was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. Assistant United States Attorney Donald Feith prosecuted the case.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Chinle Man Sentenced to 13 Years for Abusive Sexual Contact with a MinorRead the Press Release
FLAGSTAFF – Last week, Gary Cody Francis, 55, of Chinle, Ariz., was sentenced by Senior U.S. District Judge Stephen M. McNamee to 156 months in federal prison, followed by lifetime supervised release. Francis had previously pleaded guilty to one count of abusive sexual contact with a minor.
On Sept. 8, 2016, Francis, an enrolled member of the Navajo Nation, knowingly engaged in sexual contact with the minor victim, who is also an enrolled member of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Division of Public Safety Criminal Investigations. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8267-PCT-SMM
RELEASE NUMBER: 2018-002_Francis
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Canadian Citizen Sentenced for Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Panagiota Loukisas, 57, of North York, Ontario, Canada, who was convicted of bank fraud, was sentenced to 14 months by Chief U.S. District Judge Frank P. Geraci, Jr.Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that in November 2014, the defendant opened accounts at five banks in Niagara Falls, NY. Loukisas deposited checks drawn on a Canadian bank account held by her company, PM Global Consulting Services, into the five U.S. accounts. The defendant then withdrew significant sums of money from the Niagara Falls bank accounts before the checks were returned to the banks for insufficient funds. Loukisas is accused of fraudulently depositing non-sufficient fund checks valued at more than $83,000 and withdrawing more than $52,000 from the accounts before the scheme was discovered.
The sentencing is the culmination of an investigation by Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Burley Father and Son Sentenced for Drug Trafficking ConspiracyRead the Press Release
BOISE – Father and son, Sergio Chavez-Verduzco and Sergio Chavez-Macias, of Burley, Idaho, were sentenced to federal prison for their roles in a drug trafficking conspiracy, U.S. Attorney Bart M. Davis announced. Chavez-Verduzco was also sentenced for his participation in a continuing criminal enterprise. Chief U.S. District Judge B. Lynn Winmill sentenced Chavez-Verduzco to 420 months in prison and Chavez-Macias to 144 months. Judge Winmill also ordered that both serve five years of supervised release and to forfeit $420,000 in drug proceeds.
In June of last year, after a five day trial, a federal jury found the defendants guilty. Evidence presented in court showed that, in 2015 and early 2016, Chavez-Verduzco and Chavez-Macias were the source of supply to multiple large-scale methamphetamine traffickers in the Treasure Valley. The evidence specifically identified certain methamphetamine traffickers whom the father and son supplied with hundreds of pounds of methamphetamine.
The case was cooperative effort involving federal, state and local investigators from the Ada County Sheriff’s Office, the Drug Enforcement Administration, the City County Narcotics Unit of Canyon County, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Gooding County Sheriff’s Office, the Federal Bureau of Investigation and the Idaho State Police.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Buffalo Man Sentenced in Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy announced today that Luis Montanez, 39, of Buffalo, NY, was sentenced, by Chief U.S. District Judge Frank P. Geraci, Jr., to serve 151 months in prison for his role in a conspiracy to possess with intent to distribute, and distribution of 100 grams or more of heroin.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between March 2014, and June 2015, the defendant conspired with Daniel Molina-Rios, Orlando Rios, and Jose Andujar, and others to distribute heroin on the West Side of Buffalo. Rios managed a wide-scale drug trafficking organization and supervised several street-level dealers who used a series of cellular telephones to conduct daily sales with customers seeking to buy heroin.
During the last three weeks or so of the conspiracy, defendant served as a heroin source of supply for the drug trafficking organization. The Buffalo Police Department and New York State Police conducted 66 undercover heroin purchases from individuals subordinate to the defendant in the organization.
The defendant also maintained a premise at 221 Gorton Street in Buffalo for distributing heroin. A search of that residence on June 18, 2015, revealed a box of glassine bags for heroin distribution and two digital scales indicative of drug traffickers.
Of the 14 defendants charged in connection with this case, Montanez is the 13th to be sentenced.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Buffalo Man Convicted on State Murder Charge Pleads Guilty to Federal Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that on January 4, 2018, Jeffrey Brown, 43, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribute, 100 grams or more of heroin before U.S. District Judge Lawrence J. Vilardo. The charge carries a minimum penalty of 10 years in prison, a maximum of life, and an $8,000,000 fine. As part of his guilty plea in federal court, the defendant also agreed to plead guilty in New York State Court for his role in a 2016 homicide.Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on November 17, 2016, law enforcement officers conducting a drug investigation requested that a cooperating individual place a controlled telephone call to Brown and order a specified quantity of heroin.
Shortly after the call was placed, the defendant and a female driver drove to the location at which the drugs were to be delivered. Brown was taken into custody as he walked on the front sidewalk. Officers seized a plastic bag containing suspected heroin after the defendant dropped the bag at the time of his apprehension. Subsequent investigation determined that the defendant had previously purchased 700 grams of heroin.
This morning, Brown pleaded guilty to Manslaughter in the 1st Degree in New York State Court.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for April 19, 2018 before Judge Vilardo.
Brown is scheduled to be sentenced in State Court on April 23, 2018.
Boston Gang Member Pleads Guilty to Cocaine DistributionRead the Press Release
BOSTON – An individual identified as a member of the Orchard Park Trailblazers Gang pleaded guilty today in federal court in Boston to selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Tyree Draughn, a/k/a “TY,” 25, of Boston, pleaded guilty to one count of distribution of cocaine base within 1,000 feet of a school. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for April 27, 2018.
On May 10, 2017, Draughn sold cocaine base to a cooperating witness near a school in Roxbury. Draughn is the 11th of 12 defendants charged in June 2017 to plead guilty. The arrests followed a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to area schools and Dudley Square. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city, which has produced numerous crimes of violence.
The charge of distribution of a controlled substance within 1,000 feet of a school provides for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to a lifetime of supervised release and a fine of up to $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today.
Boise Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BOISE – Gabe Crow Inglis, 27, of Boise, Idaho, pleaded guilty today to possession with intent to distribute a controlled substance, U.S. Attorney Bart M. Davis announced. A federal grand jury indicted Inglis on October 12, 2017.
According to court records, Inglis was pulled over for a traffic violation on December 14, 2016 by an Idaho State police officer. During the course of the stop, the officer smelled the odor of marijuana coming from the vehicle. Inglis admitted to the officer that he had smoked marijuana and had possessed marijuana earlier that day. Subsequently, the officer searched the vehicle and found two mason jars filled with a white flakey substance in the trunk. The officer sent the substance to the Idaho State Police Forensics Lab for testing. A lab analyst determined that the substance was tetrahydrocannabinolic acid, a Schedule I controlled substance.
Sentencing is set for April 18, 2018, in front of U.S. District Judge David C. Nye at the federal courthouse in Boise.
The crime of possession with intent to distribute a controlled substance is punishable by up to 20 years imprisonment, at least three years of supervised release, and a $250,000 fine.
This case was investigated by the Idaho State Police and the Drug Enforcement Administration.
Belmont Man Sentenced to 41 Months in Prison for Firearms and Drug OffensesRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Paul Channel, 27, of Belmont, was sentenced to 41 months in federal prison for possession of a firearm by a convicted felon, possession of a firearm with an obliterated serial number and possession of a controlled substance – fentanyl.
According to court documents and statements made in court, on March 25, 2017, after a telephone call from a concerned citizen, an officer with the Manchester Police Department stopped Channel while he was driving a vehicle on Elm Street. The officer conducted a pat- frisk of Channel and located three syringes and a clear plastic baggie containing a controlled substance that subsequently tested positive for fentanyl. Channel did not have a prescription for the fentanyl. The police also located a firearm with an obliterated serial number in Channel’s vehicle. Channel is prohibited from possessing a firearm because he is a convicted felon.
Channel previously pleaded guilty on October 2, 2017. In addition to the 41 month prison sentence, the Court ordered Channel to serve 3 years of supervised release.
“Stopping violent crime is one of the highest priorities of the U.S. Attorney’s Office,” said Acting U.S. Attorney Farley. “Through the Project Safe Neighborhoods program, we work with our law enforcement partners to keep guns out of the hands of criminals. By prosecuting those who possess guns illegally, we will reduce the risk of violent crime and make our communities safer.”
This case was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Debra M. Walsh prosecuted the case.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Bassett Mirror Company Agrees to Pay $10.5 Million to Settle False Claims Act Allegations Relating to Evaded Customs DutiesRead the Press Release
Virginia-based home furnishings company, Bassett Mirror Company, has agreed to pay the United States $10.5 million to resolve allegations that it violated the False Claims Act by knowingly making false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from the People’s Republic of China (PRC), the Justice Department announced today.
The United States alleged that between January 2009 and February 2014, Bassett Mirror evaded antidumping duties owed on wooden bedroom furniture that the company imported from the PRC by knowingly misclassifying the furniture as non-bedroom furniture on its official import documents. Antidumping duties protect against foreign companies “dumping” products on the U.S. market at prices below cost. The Department of Commerce assesses, and the Department of Homeland Security’s Customs and Border Protection collects, these duties to protect U.S. businesses and level the playing field for domestic products. Imports of PRC-made wooden bedroom furniture have been subject to antidumping duties since 2004. At the time of the alleged conduct in this case, wooden bedroom furniture from the PRC was subject to a 216 percent antidumping duty; non-bedroom furniture was not subject to an antidumping duty.
“Those who import and sell foreign-made goods in the United States must comply with the laws meant to protect domestic companies and American workers from illegal foreign trade practices,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “The Department of Justice will pursue those who seek an unfair advantage in U.S. markets by evading the duties owed on goods imported into this country.”
“This Office will not tolerate anyone who seeks to stack the deck against American workers and products,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “We will continue to work with our law enforcement partners, as well as our colleagues in the Civil Division, to pursue those who believe that their own profit justifies evasion of federal antidumping duties.”
“CBP is appreciative of information received from the public regarding fraudulent trade activity. This type of blatant disregard for trade laws and regulations severely impacts the US economy by giving these bad actors an unfair advantage over legitimate importers,” said Donald F. Yando Director of Field Operations for the U.S. Customs and Border Protection Atlanta Field Office. “CBP is committed to working with our partners both inside and outside the government to help bolster the US economy by putting an end to this type of illegal activity.”
The settlement with Bassett Mirror resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Southern District of Georgia and is captioned United States ex rel. Wells v. Bassett Mirror Company, Inc. et al., Civil Action No. 4:13-CV-000165. As part of today’s resolution, Ms. Wells will receive approximately $1.9 million.
The investigation was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Southern District of Georgia, with assistance from the Department of Homeland Security’s Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Bassett Mirror Company Agrees to Pay $10.5 Million to Settle False Claims Act Allegations Relating to Evaded Customs DutiesRead the Press Release
SAVANNAH, GA – Virginia-based home furnishings company, Bassett Mirror Company, has agreed to pay the United States $10.5 million to resolve allegations that it violated the False Claims Act by knowingly making false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from the People’s Republic of China (PRC), the Justice Department announced today.
The United States alleged that between January 2009 and February 2014, Bassett Mirror evaded antidumping duties owed on wooden bedroom furniture that the company imported from the PRC by knowingly misclassifying the furniture as non-bedroom furniture on its official import documents. Antidumping duties protect against foreign companies “dumping” products on the U.S. market at prices below cost. The Department of Commerce assesses, and the Department of Homeland Security’s Customs and Border Protection collects, these duties to protect U.S. businesses and level the playing field for domestic products. Imports of PRC-made wooden bedroom furniture have been subject to antidumping duties since 2004. At the time of the alleged conduct in this case, wooden bedroom furniture from the PRC was subject to a 216 percent antidumping duty; non-bedroom furniture was not subject to an antidumping duty.
“Those who import and sell foreign-made goods in the United States must comply with the laws meant to protect domestic companies and American workers from illegal foreign trade practices,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “The Department of Justice will pursue those who seek an unfair advantage in U.S. markets by evading the duties owed on goods imported into this country.”
“This Office will not tolerate anyone who seeks to stack the deck against American workers and products,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “We will continue to work with our law enforcement partners, as well as our colleagues in the Civil Division, to pursue those who believe that their own profit justifies evasion of federal antidumping duties.”
“CBP is appreciative of information received from the public regarding fraudulent trade activity. This type of blatant disregard for trade laws and regulations severely impacts the US economy by giving these bad actors an unfair advantage over legitimate importers,” said Donald F. Yando Director of Field Operations for the U.S. Customs and Border Protection Atlanta Field Office. “CBP is committed to working with our partners both inside and outside the government to help bolster the US economy by putting an end to this type of illegal activity.”
The settlement with Bassett Mirror resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Southern District of Georgia and is captioned United States ex rel. Wells v. Bassett Mirror Company, Inc. et al., Civil Action No. 4:13-CV-000165. As part of today’s resolution, Ms. Wells will receive approximately $1.9 million.
The investigation was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Southern District of Georgia, with assistance from the Department of Homeland Security’s Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.