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Tuesday 21 November 2017
Algiers Woman Pleads Guilty to Theft of Nearly $300,000 in Social Security FundsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PAMELA THOMPSON, age 63, of Algiers, pled guilty last week to Theft of Government Funds.
According to court records, THOMPSON had continued to receive her mother’s Social Security Administration (“SSA”) benefits after her mother had died in 2008. SSA determined that the $2,973.20 of monthly benefits of THOMPSON’s mother were deposited directly into her bank account. The investigation revealed that THOMPSON had access to her mother’s account and spent $297,325.70 in SSA benefits that were intended for her mother.
THOMPSON faces a maximum penalty of ten years imprisonment, followed by up to three years of supervised release, and a $250,000.00 fine. Sentencing by U.S. District Judge Martin L.C. Feldman is scheduled for February 28, 2018.
Acting U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Ada Man Charged with Enticement of MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that Floyd Preston Miller, III, age 38, of Ada, Oklahoma was arraigned in federal court on November 21, 2017.
The defendant is charged with Enticement of a Minor using the Internet, in violation of Title 18, United States Code, Sections 2422(b), punishable by not less than 10 years imprisonment, and up to a $250,000.00 fine or both, and an additional term of Supervised Release up to Life.
The Indictment alleges that from in or about November 2015, the exact date being unknown to the Grand Jury, until on or about February 8, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, Floyd Preston Miller III, 36 years old, did use a facility and means of interstate commerce, the Internet, to attempt to knowingly persuade, induce, and entice an individual whom he believed was 15 years old, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law.
The charges are a result of an investigation by the North Las Vegas Police Department and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant was remanded into the custody of the United States Marshal Service.
Assistant United States Attorney Edward Snow represented the United States.
Acting Manhattan U.S. Attorney Announces Charges Against Iranian National for Conducting Cyber Attack and $6 Million Extortion Scheme Against HBORead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging BEHZAD MESRI, a/k/a “Skote Vahshat,” for his involvement in a scheme to obtain unauthorized access to the computer systems of Home Box Office, Inc. (“HBO”), steal proprietary data from those systems, and obtain $6 million worth of Bitcoin from HBO through extortion by threatening to disseminate stolen content. Subsequently, MESRI leaked the stolen content on the Internet, including but not limited to confidential information about upcoming episodes of the popular television series, “Game of Thrones,” and video files containing unreleased episodes of other television series created by HBO.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Behzad Mesri, an Iranian national who had previously hacked computer systems for the Iranian military, allegedly infiltrated HBO’s systems, stole proprietary data, including scripts and plot summaries for unaired episodes of Game of Thrones, and then sought to extort HBO of $6 million in Bitcoins. Mesri now stands charged with federal crimes, and although not arrested today, he will forever have to look over his shoulder until he is made to face justice. American ingenuity and creativity is to be cultivated and celebrated -- not hacked, stolen, and held for ransom. For hackers who test our resolve in protecting our intellectual property -- even those hiding behind keyboards in countries far away -- eventually, winter will come.”
FBI Assistant Director William F. Sweeney Jr. said: “In the simplest of terms, he lurked in the alleyways of the Internet, identified the vulnerabilities of his victim, and pickpocketed their information from thousands of miles away. After he had successfully identified their proprietary secrets, he held their future for ransom. Today’s charges show that international cybercriminals are never beyond the reach of U.S. laws. This indictment unsealed today is the product of the countless hours put in by investigators in the FBI’s Cyber Division working alongside our prosecutors at the Southern District of New York U.S. Attorney’s office.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:
Background on Behzad Mesri
MESRI is an Iran-based computer hacker who had previously worked on behalf of the Iranian military to conduct computer network attacks that targeted military systems, nuclear software systems, and Israeli infrastructure. At certain times, MESRI has been a member of an Iran-based hacking group called the Turk Black Hat security team and, as a member of that group, conducted hundreds of website defacements using the online hacker pseudonym “Skote Vahshat” against websites in the United States and elsewhere.
Online Reconnaissance and Hack of HBO
Starting in approximately May 2017, MESRI conducted online reconnaissance of HBO’s computer networks and employees. Among other things, MESRI searched for access points to the network where employees and other authorized users could remotely access HBO’s computer systems.
From approximately May 2017 to July 2017, MESRI successfully compromised multiple user accounts belonging to HBO employees and other authorized users, and used those accounts to repeatedly obtain unauthorized access to HBO’s computer servers. Over the course of several months, MESRI used that unauthorized access to steal confidential and proprietary information belonging to HBO, which he then exfiltrated to servers under his control. Through the course of the intrusions into HBO’s systems, MESRI was responsible for stealing confidential and proprietary data belonging to HBO, including, but not limited to: (a) confidential video files containing unaired episodes of original HBO television programs, including episodes of “Barry,” “Ballers,” “Curb Your Enthusiasm,” “Room 104,” and “The Deuce;” (b) scripts and plot summaries for unaired programming, including but not limited to episodes of “Game of Thrones;”(c) confidential cast and crew contact lists; (d) emails belonging to at least one HBO employee; (e) financial documents; and (f) online credentials for HBO social media accounts (collectively, the “Stolen Data”).
Commencement of Extortion Scheme
Between approximately July 23, 2017, and July 29, 2017, MESRI engaged in a scheme to extort HBO by transmitting, or aiding and abetting the transmission of, the following email messages, each of which was sent to multiple HBO executives and employees:
- An email on July 23, 2017, that provided evidence of the hack and claimed, in substance and in part, that the sender had hacked into HBO’s computer systems and had stolen approximately 1.5 terabytes of HBO’s data.
- A second email on July 23, 2017, that claimed, in substance and in part, that the stolen data included full scripts and cast lists for the seventh season of the television series, “Game of Thrones,” and “precious data” for other shows, including shows that were as of that time unaired. The email further stated, in substance and in part, that HBO was a “difficult target” and that infiltration was accomplished through “a complex cyber operation[.]” The email included a threat to release the data publicly unless HBO paid a ransom of $5.5 million worth of Bitcoin. The email concluded with a custom image depicting the “Night King,” an undead character from “Game of Thrones,” and bearing the message, “Good luck to HBO.”
- An email on July 26, 2017, that stated, in substance and in part, that the ransom demand had been increased to $6 million worth of Bitcoin, and included additional threats to destroy data on HBO computer servers.
- An email on July 29, 2017, that included, among other things, information regarding Bitcoin addresses to which HBO should direct ransom payments, and provided a firm deadline of later that same day for HBO to begin making ransom payments if it wanted to prevent the public leak of the Stolen Data.
Release of Stolen Data
Starting on approximately July 30, 2017, and continuing through August 2017, MESRI caused portions of the Stolen Data to be publicly leaked over the Internet on websites that he controlled. Certain of the video materials that MESRI caused to be leaked included a graphic depicting the “Night King” that was superimposed at the bottom of the video. In addition, MESRI undertook efforts to promote the leaks of the Stolen Data on the Internet, including by, among other things, causing emails to be sent to members of the media regarding the leaks, and causing the creation of a Twitter profile to announce the leaks and provide evidence of the hack of HBO’s computer network.
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MESRI, 29, a citizen and resident of Iran, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of computer hacking, which carries a maximum sentence of five years in prison; three counts of threatening to impair the confidentiality of information, each of which carries a maximum sentence of five years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; and one count of interstate transmission of an extortionate communication, which carries a maximum sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.
Mr. Kim praised the outstanding investigative work of the FBI.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Timothy T. Howard, Richard Cooper, and Jonathan Cohen are in charge of the prosecution, with assistance provided by Heather Alpino of the National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
5-Time Illegal Alien Handed Significant Sentence for Trafficking MethRead the Press Release
BROWNSVILLE, Texas – A 44-year-old undocumented alien from Matamoros, Tamaulipas, Mexico, has been ordered to federal prison for possession with intent to distribute 4.4 pounds of methamphetamine at the time he attempted an illegal entry into the United States, announced Acting U.S. Attorney Abe Martinez. Juan Francisco Lopez-Hernandez pleaded guilty to both charges Aug. 23, 2016.
Today, U.S. District Judge Andrew S. Hanen ordered Lopez-Hernandez to serve a 137-month-term of imprisonment for the drug charges as well as 120 months for being an alien unlawfully found in the United States after deportation. The sentences will run concurrently. He was also ordered to serve an additional 12 months, three of which three will be served consecutively, for committing the offenses while on supervised release for a previous conviction of being an alien illegally in the country. At the hearing, the court heard evidence indicating Lopez-Hernandez had been previously convicted three other times for being an alien unlawfully found in the United States after deportation. He is again expected to face deportation proceedings following his total 140-month sentence.
On April 3, 2016, a Cameron County Sheriff’s Office deputy attempted to conduct a traffic stop in Brownsville. However, Lopez-Hernandez sped away and eventually crashed his vehicle and fled on foot. He was soon apprehended. Authorities conducted an inspection of his vehicle which resulted in the discovery of 4.4 pounds of methamphetamine. They also learned that Lopez-Hernandez was an undocumented alien who had previously been deported.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Angel Castro is prosecuting the case.
5 Elm Street Piru Bloods Gang Members Indicted for Conspiracy to Murder a Witness of the State of South CarolinaRead the Press Release
Columbia, South Carolina------U.S. Attorney Beth Drake announced today that Brian Willie Benson Lewis, age 23, of Bishopville, South Carolina, Demetrius Jamal Cummings, age 24, of Greenville, South Carolina, Zanadro Miltaliano Neal, age 33, of Greenville, South Carolina, Darius Jacoby Brown, age 28, of Piedmont, South Carolina, and Antonio Williamson, age 30, of Florence, South Carolina, were charged in a four-count indictment with conspiracy to attempt to murder a witness of the State of South Carolina, in aid of racketeering activity, a violation of Title 18, United States Code, Section 1959(a)(5); conspiracy to assault with a dangerous weapon in aid of racketeering activity, a violation of Title 18, United States Code, Section 1959(a)(6); and conspiracy to possess a firearm in furtherance of a crime of violence, a violation of Title 18, United States Code, Section 924(o).
It is alleged in the indictment that all five individuals are members of the Elm Street Piru Bloods. Cummings was also charged with possession of a firearm in furtherance of a crime of violence, a violation of Title 18, United States Code, Section 924(c). All five defendants were arraigned today in federal court. The maximum penalty Lewis, Neal, Brown, and Williamson could face is a fine of $250,000.00 and/or imprisonment for 20 years. The maximum penalty Cummings could face is a fine of $250,000.00 and/or imprisonment for Life. This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Joe Brewer of the Greenville office.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Monday 20 November 2017
Winona Lake Man Charged with Drug and Gun OffensesRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Darin Devon Hurd, age 25, of Winona Lake, Indiana was charged with possession with intent to distribute heroin and possession of a firearm by a convicted felon.
According to documents in this case, Hurd’s girlfriend was found dead on September 5, 2017in a residence Winona Lake, Indiana. During a search of the residence, investigators found a loaded Llama 9 millimeter pistol, 21 unused syringes, a digital scale, narcotics packaging materials, and approximately 8.9 grams of heroin. Hurd admitted that he had used heroin with his girlfriend on the morning of September 5, 2017. He further admitted that he regularly sold heroin in the Winona Lake area, turning a profit of approximately $400.00 for every 7 grams of heroin sold. Hurd was previously convicted of Class D Felony Possession of a Schedule V Controlled Substance Without a Prescription in Allen County, Indiana.
“My Office is committed to reducing the availability of heroin on the streets of Northern Indiana,” U.S. Attorney Thomas Kirsch II said in a statement. “We are focusing the resources of the federal government to investigate and prosecute people who deal in illegal narcotics.”
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Winona Lake Police Department, Warsaw Police Department, Kosciusko County Sheriff’s Department, Indiana State Police, and Kosciusko County Prosecuting Attorney’s Office. The case is being handled by Assistant U.S. Attorney Molly E. Donnelly.
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Williamson County Man Sentenced on Methamphetamine OffensesRead the Press Release
On November 20, 2017, Julian V. Rodriguez, 22, of Johnston City was sentenced to federal prison for methamphetamine offenses, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Rodriguez, who had previously pled guilty to one count of conspiracy to distribute more than 50 grams of methamphetamine and one count of distribution of methamphetamine, was sentenced to 188 months of imprisonment, four years of supervised release, and was fined $400.00. The offenses occurred between December 2016 and January 23, 2017, in Williamson County. Evidence at the plea and sentence hearings established that Rodriguez was involved with co-defendant Johnathan Long and others in the distribution of ice and marihuana. Ice is methamphetamine which has a purity level of at least 80%.
On January 22, 2017, Rodriguez sold ice to a confidential source that was working for law enforcement. When agents executed a search warrant at the Johnson City residence of Rodriguez and Long, they recovered multiple firearms, over 200 grams of ice, cannabis, and a large amount of U.S. currency. At sentencing, the judge found that Rodriguez was responsible for the distribution of 1.13 kilograms of ice and 224.90 kilograms of marihuana. Rodriguez received sentencing enhancements for possessing firearms and for maintaining a residence for the distribution of drugs. Co-defendant Long has pled guilty to his involvement in the methamphetamine and firearm offenses and is currently being held without bond pending a January 30, 2018, sentencing hearing.
The investigation was conducted by the Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Offices also assisted in the investigation.
Wethersfield Woman Involved in Debt Elimination Scheme is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that URMILA SRI THAKUR, also known as Urmila Buddhu-Thakur and Indro Buddhu-Thakur, 73, of Wethersfield, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to four years of probation, the first four months of which THAKUR must serve in home confinement, for her role in a fraudulent debt elimination scheme.
According to court documents and statements made in court, from 2009 to June 2012, THAKUR’s former husband, Deowraj “Deo” Buddhu and their daughter, Sunita Buddhu, sold a debt elimination “program” to vulnerable individuals through various businesses, including Paradise Consulting Service, Hema, Inc., and Secured Redemption. In exchange for substantial fees, Deo Buddhu told victims about a little-known government fund that could be used to pay off their mortgages and other debts. In fact, no such fund exists. Buddhu instructed his victims to stop making payments on their mortgages, credit cards and other debts, and to stop paying their property taxes. He also provided his victims with fictitious promissory notes, which he called “bonds,” as well as other frivolous documentation, and advised his victims to use them to pay their debts.
On June 12, 2012, the day after Deo Buddhu’s arrest, THAKUR withdrew $75,000 from a certificate of deposit account that contained funds from the scheme. She also obtained several cashier’s checks, including one for $50,000 made payable to THAKUR, which she thereafter negotiated using accounts in the name of SDK SYS Solutions and TRK Consulting Services.
Judge Thompson ordered THAKUR to pay restitution of $335,072, which is the amount attributable to the underlying fraudulent debt elimination scheme.
On August 18, 2017, THAKUR pleaded guilty to one count of money laundering.
Deo Buddhu and Sunita Buddhu were previously convicted in Hartford federal court.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and the U.S. Department of Housing and Urban Development – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Liam Brennan.
Vitamin Shop Owner Sentenced for Misbranded Drugs and Controlled Substance ConvictionRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old resident of Corpus Christi has been ordered to federal prison following his convictions of possessing a controlled substance with the intent to distribute and receiving a misbranded drug in interstate commerce, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Spencer E. Morrison of the Food and Drug Administration - Office of Criminal Investigations’ Kansas City Field Office. Elias Trevino Jr. pleaded guilty May 15, 2017.
Today, Senior U.S. District Judge John D. Rainey handed Trevino a 12-month term of imprisonment. In handing down the sentence, Judge Rainey noted that FDA regulations are in place to protect the public which Trevino repeatedly violated. “The is egregious conduct that I can’t ignore” he said. Trevino will also be required to serve three years of supervised release following completion of the prison term.
“Drugs labeled as natural dietary supplements that contain undeclared, dangerous ingredients present a serious risk to consumers’ health,” said Morrison. “We will continue to pursue and bring to justice criminals who endanger the public by offering and distributing such falsely labeled and dangerous drugs.”
Trevino was one of the owners of X2Zero, a store selling dietary supplements online and through stores located in Corpus Christi. The Food and Drug Administration (FDA) determined a number of products sold there as “herbal weight loss supplements” were found to contain misbranded or unapproved foreign drugs.
In 1997, the (FDA) approved a prescription drug containing sibutramine under the trade name Meridia for the management of obesity. In October 2010, the FDA requested the Meridia marketer to withdraw the drug from the United States market due to the health risks associated with sibutramine, including an increased risk of heart attack, stroke and death. On Dec. 21, 2010, at the request of the manufacturer, the FDA withdrew its approval of Meridia. Since that time, no drug containing sibutramine has been approved for human use in the United States.
At the time of his guilty plea, Trevino admitted he knowingly possessed and sold diet drugs containing sibutramine. He acknowledged he imported the drugs from China and sold them through both the X2Zero store in Corpus Christi and on the Internet in violation of the federal Food, Drug and Cosmetic Act.
Previously released on bond, Trevino was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FDA - Office of Criminal Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuted the case.
United States Attorney Randolph J. Seiler Announces RetirementRead the Press Release
After 22 years with the United States Attorney’s Office, Randolph J. Seiler has announced his retirement. Seiler will bid farewell on December 31, 2017.
Randy Seiler was nominated in 2015 by President Barack Obama as the 41st United States Attorney for the District of South Dakota. He was sworn in on October 8, 2015, by U.S. District Judge Roberto Lange at a ceremony at the U.S. Courthouse in Pierre, South Dakota.
Prior to his appointment, he served as both Acting and Interim U.S. Attorney, and also as the First Assistant United States Attorney and the Tribal Liaison for the District of South Dakota. As First Assistant, Seiler was responsible for the day-to-day management and operation of the U.S. Attorney's Office. He also supervised the U.S. Attorney’s branch office in Pierre, where he was directly involved in prosecutorial matters and decisions. As Tribal Liaison, he consulted and coordinated with tribal justice officials and leaders, tribal communities, and victim advocates in an effort to address any issues in the prosecution of major crimes in Indian country in South Dakota.
Seiler has had a distinguished career as an Assistant U.S. Attorney. He spent 14 years prosecuting violent crime offenses. In 2001, he received the Department of Justice Attorney General’s Award for Fraud Prevention. In 2009, he became the first recipient of the Department of Justice Director’s Award for Superior Performance in Indian Country. In 2008, Seiler also served as Council to the Director in the Executive Office for U.S. Attorneys at the Department of Justice in Washington, D.C. He has been an instructor at the National Advocacy Center in Columbia, South Carolina, as well as a presenter at numerous conferences and trainings on various topics including violent crime, sexual assault, domestic violence, and legal issues in the prosecution of violent crime in Indian country.
Some highlights of Seiler’s tenure as U.S. Attorney include:
- The number of cases filed and defendants charged has risen significantly over the past three years, with approximately 200 more in both categories since 2014.
- Established a dedicated Civil Rights Section within the office, spearheaded by a Civil Assistant U.S. Attorney. In addition to enforcing federal civil rights statutes, the Civil Rights Section strives to educate community members about their rights under federal law by engaging in outreach programs throughout the state.
- Instrumental in the inception of the Guardians Project Task Force, which is designed to enhance federal law enforcement effort to expose fraud and public corruption in Indian country, by uniting the expertise and resources of the participating thirteen federal investigative agencies.
- Made drug prosecutions one of the office’s top priorities by committing the U.S. Attorney’s Office to work with and coordinate drug task forces across South Dakota, including the newly created Northeastern South Dakota Drug Team. The District of South Dakota is now among the top ten federal judicial districts for drug prosecutions, based on population. This is a marked change from ten years ago, when South Dakota was not in the top ranks.
- Revised the management structure of the SD U.S. Attorney’s Office to include more women and minorities, and has hired minorities as Assistant U.S. Attorneys and Special Assistant U.S. Attorneys, providing a more diversified approach to the offices’ priorities and focus.
- Created "Walk-In Wednesday", wherein a representative of the U.S. Attorney’s office is on-site at Pine Ridge each Wednesday. Seiler implemented this initiative to allow citizens to more easily communicate with the office concerning crime on the reservation, inquire about existing cases, or to obtain any information which might be sought by the citizenry.
- Extended outreach in Indian country by holding community listening sessions, meeting with Tribal Councils, appointing Tribal Prosecutors as Special Assistant U.S. Attorneys, and implementing a “First Friday” call with Tribal Chairmen.
- Initiated regular community based outreach meetings in Sioux Falls and Rapid City discussing such topics as civil rights, officer involved shootings, frauds and scams, immigration, and hate crimes.
- Started a reentry program in the U.S. Attorney’s Office to address the high rates of recidivism.
Seiler grew up in Herreid, South Dakota, served his country in the U.S. Air Force, which included a year-long tour in Vietnam, and graduated with honors from the University of South Dakota School of Law. He and his wife, Wanda, live in Fort Pierre, and have four grown children and two grandchildren.
Following his resignation as U.S. Attorney, Seiler plans to practice law in Fort Pierre, and pursue other opportunities.
Two Florida Residents Federally Indicted for Orchestrating $150 Million Brazilian Factoring SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced a federal indictment charging ANTONIO CARLOS DE GODOY BUZANELI, 56, and JOSE MANUEL ORDOÑEZ, JR., 46, in a $150 million investment fraud scheme involving purported Brazilian factoring. JULIO ENRIQUE RIVERA, 61, a third defendant involved in the conspiracy, was charged by felony information and pleaded guilty on November 9, 2017. BUZANELI and ORDOÑEZ were taken into custody on November 17, 2017, and made their initial appearance in U.S. District Court in Miami, Fla., that afternoon. A detention hearing for BUZANELI and ORDOÑEZ is scheduled for November 21, 2017, before Magistrate Judge John O’Sullivan at the C. Clyde Atkins U.S. Courthouse in Miami, Fla.
According to the indictment and documents filed in court, BUZANELI, ORDOÑEZ and RIVERA were the principals of Providence Holdings International, Inc., a company based in Key Biscayne, Fla. In 2009 and 2010, BUZANELI, ORDOÑEZ and RIVERA formed Providence Financial Investments, Inc. and Providence Fixed Income Fund LLC (collectively, along with Providence Holdings International, Inc., “Providence”) in order to raise money from investors.
According to the indictment and documents filed in court, from about 2010 until June 2016, Providence raised approximately $150 million from investors worldwide by representing that Providence would invest the money in Brazilian factoring. “Factoring” is a financial transaction in which accounts receivable are purchased at a discount. Providence’s marketing materials explained that in Brazil consumers write ten separate post-dated checks for $100 – one per month – to pay for $1,000 in retail items such as consumer electronics or groceries. The retailer then sells the post-dated checks to Providence for approximately $820, and Providence earns $180 over ten months as the checks mature. As a result, Providence claimed to make a 48 percent annual return on money invested in Brazil.
According to the indictment and documents filed in court, Providence raised more than $64 million from U.S. investors by employing a network of unlicensed brokers who sold promissory notes bearing annual interest rates between 12 percent and 24 percent. Investors were told their money would be used to factor accounts receivable in Brazil. BUZANELI, ORDOÑEZ and RIVERA provided the brokers with marketing materials to show investors that their money would be used to factor accounts receivable in Brazil. The materials falsely stated that funds would be used “for the sole purpose” of making loans to a Brazilian subsidiary of Providence “which will use the proceeds of the loan to acquire receivables or financial instruments such a post-dated checks and/or Duplicatas in the Brazilian Factoring Market.”
The indictment alleges that BUZANELI and ORDOÑEZ instead used a significant amount of the investors’ funds to pay purported profits to other investors and to make commission payments to brokers. BUZANELI and ORDOÑEZ also diverted investor funds to other companies they controlled, including an import/export company, a travel company, a credit restoration service, a catering company and a food truck operated by BUZANELI’S wife.
According to the indictment and documents filed in court, one of Providence’s brokers, an individual identified in the indictment as J.C., owned and operated a financial advisory firm in Saint Louis Park, Minn. Between July 2013 and January 2016, J.C. raised approximately $2.4 million for Providence from Minnesota investors by representing that Providence would invest their money in factoring in Brazil.
According to the indictment and documents filed in court, BUZANELI and ORDOÑEZ also opened Providence offices and affiliates around the world, including in London, Hong Kong, Taipei, Shanghai, Singapore, Vancouver, and Panama. In about 2011, for example, BUZANELI and ORDOÑEZ opened Providence-affiliated entities in the Bailiwick of Guernsey and in Hong Kong, through which they raised approximately $85 million from offshore investors by falsely representing they would use the investors’ money to invest in Brazilian factoring. In reality, Providence did not use the international investors’ money to purchase receivables in the Brazilian factoring market. Instead, much of the investors’ money was transferred to other Providence-controlled entities around the world as well as to bank accounts controlled by BUZANELI and ORDOÑEZ, where the money was used for payments unrelated to Brazilian factoring, including to pay commissions to U.S. brokers and to make interest payments to American investors in Providence’s U.S.-based entities.
According to the indictment and documents filed in court, on July 28, 2016, Providence Financial Investments, Inc. and Providence Fixed Income Fund LLC declared bankruptcy, claiming to have estimated assets between $0 an $50,000. As a result of the fraud scheme, Providence investors worldwide lost a total of more than $100 million.
This case is the result of an investigation conducted by the FBI, United States Postal Inspection Service, and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorneys Kimberly A. Svendsen and Joseph H. Thompson are prosecuting the case.
Defendant Information:
ANTONIO CARLOS DE GODOY BUZANELI, 56
Coral Gables, Fla.
Charges:
- Conspiracy to commit mail fraud, 1 count
- Mail fraud, 12 counts
JOSE MANUEL ORDOÑEZ, JR., 46
Davie, Fla.
Charges:
- Conspiracy to commit mail fraud, 1 count
- Mail fraud, 12 counts
JULIO ENRIQUE RIVERA, 61
Pembroke Pines, Fla.
Convicted:
- Conspiracy to commit mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Defendants Indicted for Multiple Bank RobberiesRead the Press Release
Jackson, TN – On November 20, 2017, a federal grand jury charged two defendants for allegedly robbing two banks in two separate counties in West Tennessee. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictment today.
According to the indictment, on August 25, 2017, Gene Allen Howell, 36, of Selmer, Tennessee and Janet Nicole Thompson, 36, of Enville, Tennessee, robbed the Home Banking Company in Finger, Tennessee. Several months later, on October 14, 2017, the defendants robbed the Peoples Bank in Reagan, Tennessee. During each robbery, Howell brandished a weapon.
Howell and Thompson are charged with two counts of bank robbery. Howell is also charged with possessing and discharging a firearm during crime of violence. If convicted, each defendant will face up to 20 years in federal prison for each of the individual robbery counts. Howell will face up to life in federal prison for discharging firearms during the robberies. The defendants allegedly aided and abetted each other during the commission of the crime.
United States Attorney D. Michael Dunavant said: "Bank robbery committed with a firearm is an inherently violent offense, and threatens the very fabric of our financial institutions that provide commercial services to citizens and the community. These disturbing and brazen acts of violence will not be tolerated, and will be met with firm resolve, quick investigative action, and aggressive federal prosecution. By collaborating with federal, state and local partners, we will use every available resource to ensure the safety of our citizens and security of our banking institutions."
During the investigation, agents seized two pistols, including a .45 caliber. The ammunition in the pistol was the same make and manufacture as casings found at the Reagan Bank.
The case was investigated by the FBI;Henderson County Sheriff’s Office; and the McNairy County Sheriff’s Office. Assistant U.S. Attorney Matthew Wilson is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Texas Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
HOUSTON – A 33-year-old man from Duncanville has been ordered to prison following his convictions for receipt and possession of child pornography, announced Acting U.S. Attorney Abe Martinez. William Sonak pleaded guilty June 26, 2017.
Today, U.S. District Judge David Hittner imposed a total 96-month term of imprisonment. Following completion of his prison term, he will be on supervised release for the rest of his life during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet.
This case originated in September 2015 when the FBI received information from a general manager at a Computer Hospital store located in Houston that a laptop computer had been submitted for repairs that contained child pornography. While performing repairs, the technician came across multiple images of child pornography.
A forensic examination of the computer later revealed the laptop contained approximately 2,640 images and 811 videos of child pornography.
At the time of his plea, Sonak said that he was sorry for his actions.
Sonak will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Julie N. Searle prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Terminix Companies Sentenced for Applying Restricted-Use Pesticide to Residences in the U.S. Virgin IslandsRead the Press Release
Terminix International Company LP (TERMINIX LP) and U.S. Virgin Islands operation Terminix International USVI LLC (TERMINIX, USVI) were sentenced today for violations of the Federal Insecticide, Fungicide, and Rodenticide Act in the U.S. Virgin Islands, announced the Department of Justice and the Environmental Protection Agency.
The Virgin Islands pest control company illegally applied fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, including the condominium resort complex in St. John where a family of four fell seriously ill in March 2015 after the unit below them was fumigated. According to the plea recommendation, TERMINIX LP and TERMINIX, USVI are to pay a total of $9.2 million in criminal fines, community service, and restitution payments. Under the agreed recommendation, TERMINIX, USVI will pay $4 million in fines and $1 million in restitution to the EPA for response and clean-up costs at the St. John resort. TERMINIX LP will pay a fine of $4 million and will perform community service related to training commercial pesticide applicators in fumigation practices and a separate health services training program.
“The sentences in this case reflect the serious nature of the defendants’ illegal actions and the unacceptable consequences of those actions,” said EPA Administrator Scott Pruitt. “This case should serve as a stark reminder that pesticides must be applied as intended and that those who ignore laws that protect public health will be held accountable by EPA and our law enforcement partners.”
“The tragic incident at issue in this case shows the extreme danger posed by the improper use of toxic pesticides,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “Businesses using these products must take appropriate cautions to safeguard the public, or else the consequences can be devastating. We trust that the result in this case shows how imperative it is that users of these products take the time to review, understand, and employ appropriate techniques and uses.”
“This case demonstrates how critical it is to comply with environmental laws and regulations,” said Acting United States Attorney Joycelyn Hewlett for the District of the Virgin Islands. “An entire family suffered horrendous and life-altering injuries. We will continue to aggressively enforce environmental laws to help prevent something like this from ever happening again.”
In 1984, the EPA banned the indoor use of methyl bromide products. The few remaining uses are severely restricted and largely limited to commodity applications for quarantine and pre-shipment purposes. Pesticides containing methyl bromide in the U.S. are restricted-use due to their acute toxicity, meaning that they may only be applied by a certified applicator. Health effects of acute exposure to methyl bromide are serious and include central nervous system and respiratory system damage. Pesticides can be very toxic and it is critically important that they be used only as approved by EPA.
According to the information filed in federal court in the U.S. District Court of the Virgin Islands, the defendants knowingly applied restricted-use fumigants at the Sirenusa resort in St. John for the purpose of exterminating household pests on or about October 20, 2014, and on or about March 18, 2015. The companies were also charged with applying the restricted-use pesticide in 12 residential units in St. Croix and one additional unit in St. Thomas between September 2012 and February 2015.
According to the factual basis of the plea agreement, TERMINIX, USVI provided pest control services in the Virgin Islands including fumigation treatments for Powder Post Beetles, a common problem in the islands. These fumigation treatments were referred to as “tape and seal” jobs, meaning that the affected area was to be sealed off from the rest of the structure with plastic sheeting and tape prior to the introduction of the fumigant. Customers were generally told that after a treatment, persons could not enter the building for a two- to three-day period.
On or about March 18, 2015, two employees of TERMINIX, USVI, performed a fumigation pesticide treatment at the lower rental unit of Building J at Sirenusa in St. John. The upper unit in Building J was occupied by a Delaware family of four. Via various means, methyl bromide from the lower unit migrated to the upper unit of Building J, causing serious injury to and hospitalization of the entire family.
EPA regional staff responded immediately to the incident in St. John, securing the scene, performing testing, and addressing the contamination. Within days, the EPA sent out a pesticide use warning to pesticides applicators in Puerto Rico and the U.S. Virgin Islands, followed by a broader pesticide notice to regulators in all states, the British Virgin Islands, and to other Caribbean and Latin American countries.
After the government began its investigation, TERMINIX LP voluntarily ceased its use of methyl bromide in the U.S. and in U.S. territories. The government has notified the district court that the defendants have made full restitution to the Esmond family. The family is satisfied with the criminal resolution and has asked that their privacy be respected.
The case was investigated by EPA Criminal Investigation Division working cooperatively with the Virgins Islands government and, the Agency for Toxic Substances and Disease Registry.
Senior Litigation Counsel Howard P. Stewart of the Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Kim L. Chisholm of the District of the Virgin Islands are prosecuting the case with assistance of Patricia Hick, EPA Region II Regional Criminal Enforcement Counsel.
St. Joseph In-home Health Care Worker Charged with Stealing $180,000 from Former ClientRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a St. Joseph, Mo., in-home health care nursing assistant has been charged in federal court with stealing bank account information from one of her clients to illegally transfer more than $180,000 out of her account.
Ashley N. Garr, 32, of St. Joseph, was charged with wire fraud and aggravated identity theft in a complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, Nov. 13, 2017. Garr’s preliminary hearing and detention hearing were held today and she was released on bond.
According to an affidavit filed in support of the federal criminal complaint, Garr worked for the victim, identified in court documents as “PLR,” as an in-home health care nursing assistant for approximately a year, leaving employment in 2015. Garr visited PLR in November 2016, and during that visit allegedly stole her bank account information from her purse or home office. In March 2017, PLR discovered that unauthorized payments were being made from her bank account, which began shortly after Garr’s visit.
The affidavit lists $181,065 that was transferred from PLR’s bank account in a series of 28 payments from Jan. 24 to March 31, 2017.
Larson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and IRS-Criminal Investigation.
South Charleston woman sentenced to federal prison for role in methamphetamine trafficking organizationRead the Press Release
CHARLESTON, W.Va. – A South Charleston woman was sentenced today to five days in federal prison for a methamphetamine crime, announced United States Attorney Carol Casto. Holly Doub, 34, previously pleaded guilty to aiding and abetting the distribution of methamphetamine.
Doub was part of a methamphetamine trafficking organization that involved several other defendants, including Carl “Yogi” Clark and Jamie Harmon. Clark and Harmon admitted that in January 2017, along with other individuals, they brought approximately four kilograms of crystal methamphetamine from Atlanta to Charleston. On January 12, 2017, officers with the Metropolitan Drug Enforcement Network Team executed a search warrant at a hotel room and found over 130 grams of methamphetamine, scales, baggies, and a gun. The methamphetamine was part of the approximately four kilograms Clark, Harmon, and others brought back from Atlanta, and it was lab-tested and confirmed to be over 90% pure. Harmon and Clark also admitted to distributing additional methamphetamine to confidential informants during controlled buys in March 2017. Doub admitted that she helped Clark during one of those buys on March 13, 2017, by handing the confidential informant methamphetamine. As part of their plea agreements, the defendants also admitted to the other drug trafficking activity charged in the indictment.
Clark and Harmon both pleaded guilty to distribution of methamphetamine and each faces up to 20 years in federal prison when they are sentenced on December 18, 2017.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Haley Bunn and Eric P. Bacaj are responsible for the prosecutions. United States District Judge Joseph R. Goodwin imposed the sentence.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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South Bay Man Indicted by Federal Grand Jury for Making Death Threat Against United States Congresswoman Maxine WatersRead the Press Release
LOS ANGELES – A federal grand jury has charged a San Pedro man with threatening to murder United States Representative Maxine Waters in a phone call to her Capitol Hill office last month.
Anthony Scott Lloyd, 44, was charged with one count of threatening a United States official in an indictment filed Friday in United States District Court.
Lloyd was arrested in this case on November 9, one day after federal prosecutors filed a criminal complaint that accused Lloyd of making the threatening phone call to Rep. Waters’ office. According to the affidavit in support of the complaint, Lloyd called the Congresswoman’s office on October 22 and left a voicemail laced with expletives and epithets that uses the words “dead” and “kill” a total of four times.
Lloyd, who was freed on a $20,000 bond after his arrest, is scheduled to be arraigned on the indictment on December 7.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If he were to be convicted of making the threat against Rep. Waters with the intent to interfere with the Congresswoman while she engaged in her official duties, Lloyd would face a statutory maximum sentence of 10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, which received assistance from the United States Capitol Police, Threat Assessment Section.
This case is being prosecuted by Assistant United States Attorney Veronica Dragalin of the General Crimes Section.
Selling Meth Lands Corpus Men in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Two local men have been ordered to federal prison following their convictions of selling methamphetamine, announced Acting U.S. Attorney Abe Martinez. Carlos Cantu, 39, and Steven Douglas Schad, 29, previously pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
Today, Senior U.S. District Judge John Rainey sentenced Cantu to 138 months imprisonment. Shad was sentenced in September to 120 months imprisonment. Both were also ordered to serve five years of supervised release.
As part of an investigation that began in March 2017, Cantu arranged for the sale of methamphetamine to an undercover federal agent. Over several weeks, the agent made three different purchases of pure methamphetamine from Cantu and others in amounts totaling approximately 153 grams.
Cantu will remain in custody pending transfer to a U.S. Bureau of Prisons to be designated in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Assistant U.S. Attorney Lance Watt is prosecuting the case.
Second Defendant Sentenced in $3.5 Million Distribution SchemeRead the Press Release
CINCINNATI – Suraj Patel, 38, of Long Beach, Calif., was sentenced in U.S. District Court today for his role in a $3.5 million scheme involving distribution for Macy’s. As part of his sentence, Patel was ordered to pay approximately $925,000 in restitution to the company.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
Rudy Rampertab, 46, of Ocoee, Fla., was sentenced in July to six months in prison for one count each of mail fraud and money laundering.
According to court documents, Rampertab was an employee of Macy’s from 1988 until 2010. Beginning in 1998, Rampertab managed Macy’s distribution center in Carson, Calif. and supervised the transport of merchandise to centers throughout the country.
Starting in July 2010, Rampertab began diverting the shipment of goods to Patel, who established several shipping companies. Ramptertab obtained approval for Patel’s companies to become third party vendors for Macy’s; however, Rampertab did not disclose his personal connection to the companies, which he helped operate. Rampertab also did not disclose to Macy’s that he personally profited from the operations of these vendors.
Between July and December 2010, Patel’s companies received more than $3.5 million in Macy’s shipping and packaging jobs. After paying expenses, Rampertab and Patel generated more than $900,000 in net profits from the diverted business.
Rampertab and Patel used the proceeds to purchase real estate and vehicles, including a 2010 Aston Martin costing $199,000.
Patel was sentenced to serve one day in prison, followed by six months of home confinement as part of his three years of supervised release. He pleaded guilty in September 2016 to mail fraud and money laundering.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, as well as Assistant United States Attorney Tim Mangan, who is representing the United States in this case.
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Rochester Man Pleads Guilty to Conspiracy to Sell OxycodoneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Michael Ingham, 29, of Rochester, NY, pleaded guilty to conspiring to distribute a controlled substance before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 20 years in prison and a $1,000,000.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Ingham was prescribed large quantities of oxycodone by his heath care provider. Beginning in October 2016 and continuing until his arrest in February 2017, Ingham conspired to sell his oxycodone pills to Daniel Volonino, Jr. and Ronald Lockwood, who, in turn, sold pills to others in the Rochester area.
Ronald Lockwood has been convicted and is awaiting sentencing. Charges are pending against Daniel Volonino, Jr. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and investigators with the Medicaid Fraud Control Unit of the New York State Attorney General, under the direction of Eric Schneiderman.
Sentencing is scheduled for January 16, 2018, at 10:30 a.m. before Judge Larimer.
Rio Arriba County Man Pleads Guilty to Misdemeanor Offense for Failing to Follow Direction of U.S. Forest Service OfficerRead the Press Release
ALBUQUERQUE – Daniel K. Gonzalez, 35, of Gallina, N.M., pled guilty today in federal court in Albuquerque, N.M., to a misdemeanor offense of interfering with a U.S. Forest Service Officer under a plea agreement that recommends a sentence of 68 days of incarceration or time served.
Gonzalez was charged in a criminal complaint with resisting a U.S. Forest Service officer and recklessly operating a vehicle on July 24, 2017, in Rio Arriba County, N.M. According to the complaint, Gonzalez disregarded commands from the officer to stop his vehicle by fleeing from the officer and driving recklessly through the Santa Fe National Forest.
Gonzalez subsequently was charged in a misdemeanor information filed on Sept. 15, 2017, with resisting and interfering with a U.S. Forest Service Officer, and recklessly operating a vehicle on a National Forest Service System road on July 24, 2017, in Rio Arriba County.
During today’s proceedings, Gonzalez pled guilty to a misdemeanor charge of interfering with a U.S. Forest Service officer. In entering the guilty plea, Gonzalez admitted that on July 24, 2017, he was approached by a U.S. Forest Service officer who was engaged in the performance of his official duties in the protection of the National Forest System. After giving the officer his identifying information, the officer informed Gonzalez that there was an active arrest warrant for Gonzalez out of Bernalillo County, N.M., and that Gonzalez could not leave. Gonzalez admitted driving away and ignoring the officer’s commands to stop. After fleeing from the officer, Gonzales drove his vehicle onto Forest Road 103, turned into and drove through the forest and a barbed wire fence before getting back onto the State Highway.
This case was investigated by the U.S. Forest Service and is being prosecuted by Assistant U.S. Attorney Letitia C. Simms.
Reno Doctor Sentenced to 10 Years in Prison for Involuntary Manslaughter of Patient and Unlawful Distribution of Large Quantities of Prescription DrugsRead the Press Release
RENO, Nev. – Dr. Robert Gene Rand, a Reno physician who operated Rand Family Care, was sentenced today to 10 years in prison for involuntary manslaughter of a patient and unlawful distribution of oxycodone, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Rand, 54, was sentenced by U.S. District Judge Miranda M. Du. In addition to the prison term, Rand was ordered to pay $11,960 in restitution and a $25,000 fine. He was also sentenced to three years of supervised release.
According to the plea agreement, Rand admitted that he acted with gross negligence by prescribing an excessive amount of oxycodone to a patient in reckless regard for the patient’s life. Despite warnings by another doctor and the patient’s mother, the patient’s history and the patient being hospitalized, Rand continued to prescribe oxycodone to the patient which lead to the patient’s overdose and death in October 2015. Rand also admitted that, from March 2011 to April 2016, he prescribed a total of 23,645 oxycodone 30 mg pills without a legitimate medical purpose to a second patient. In addition to oxycodone, Rand prescribed the second patient Percocet, hydrocodone, fentanyl, as well as other substances, such as carisoprodol and alprazolam. The second patient did not undergo any toxicology tests and Rand allowed another person to pick-up the oxycodone prescriptions for the patient. Rand also warned the patient at one time that his prescriptions would no longer be filled by the pharmacies.
Rand and eight others, including Richard Winston West II, aka “Richie West,” the former manager of the Jones-West Ford dealership, were indicted on May 11, 2016, with federal prescription drug distribution charges. Co-defendants West, 40; Omar Ahsan Ahmad, 32; Joshua Ross Green, 34; Clint Mitchell Bloodworth, 41; Kathleen Griffin, 43; Alan Russel Martinez, 61; and Braden Kyle Riley, 40, all of Reno; and Ryan Daniel Smith, 40, of Carson City, all have pleaded guilty for their involvement in the prescription drug conspiracy and are awaiting sentencing.
This case was investigated by the DEA, FBI, IRS Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Enforcement, Reno Police Department, Washoe County Sheriff’s Office, Carson City Sheriff’s Office, Susanville, California Police Department, Nevada Department of Corrections, Nevada Gaming Control, Nevada Department of Public Safety, Lyon County Sheriff’s Office, and the State of Nevada Division of Welfare, Office of Investigations and Recovery. The case was prosecuted by Assistant U.S. Attorney James E. Keller.
Nearly two million Americans abused or were dependent on prescription opioids in 2014, according to the Centers for Disease Control and Prevention (CDC). Overdoses involving opioids killed more than 28,000 people in 2014, and over one-half of those deaths were from prescription opioids. In 2016, more than 64,000 Americans died from drug overdoses including illicit drugs and prescription opioids - nearly double in a decade. For information on opioid overdose and how someone can manage pain without prescription drugs, go to http://www.cdc.gov/drugoverdose/opioids/index.html.
If you have a tip or information about illegal sales or distribution of prescription opioids, including oxycodone, hydrocodone, etc., by doctors and pharmacies call the DEA at 1-877-RX-Abuse (1-877-792-2873).
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Randolph Man Charged with Fentanyl-Related OffensesRead the Press Release
BOSTON – A Randolph man was charged in federal court in Boston for distributing fentanyl on Cape Cod.
Jorge Barros, a/k/a “Joey,” 24, was charged by criminal complaint, unsealed Friday, Nov. 17, 2017, with conspiracy to distribute 40 grams or more of fentanyl and possession of fentanyl with the intent to distribute.
According to court documents, investigators identified Barros as a fentanyl distributor on Cape Cod in September 2017. A cooperating source then made a series of recorded calls to Barros arranging for a fentanyl delivery. On Nov. 13, 2017, Barros attempted to deliver approximately 40 grams of fentanyl to the cooperator; however, before Barros could do so, he was arrested in Harwich, at which time law enforcement seized approximately 38 grams of fentanyl from Barros.
The charge provides for a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cape and Islands District Attorney Michael O’Keefe made the announcement today. The investigation was led by the DEA Cape Cod Resident Office and the Massachusetts State Police - Cape & Islands District Attorney’s Office in conjunction with the Brewster, Harwich, Sandwich, Mashpee, Chatham, Yarmouth, and Barnstable Police Departments and the Barnstable County Sheriff’s Department. Assistant U.S. Attorney Eric Rosen of Weinreb’s Criminal Division is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Queensbury Oncologist and Office Manager Plead Guilty in Connection with Administering Unapproved DrugsRead the Press Release
ALBANY, NEW YORK – Dr. Vincent Koh, age 72, and his wife and office manager Milly Koh, age 63, of Queensbury, New York, each pled guilty today to receiving and delivering misbranded drugs, a misdemeanor.
The announcement was made by Acting United States Attorney Grant C. Jaquith; Jeffrey Ebersole, Special Agent in Charge of the New York Field Office of the Food and Drug Administration (FDA) Office of Criminal Investigations; and Scott J. Lampert, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG), New York Region.
According to plea agreements signed by the Kohs, Vincent Koh is a New York State-licensed medical doctor specializing in the treatment of cancer patients, with offices in Poughkeepsie and Glens Falls, New York. Milly Koh manages the practice, and is responsible for ordering the drugs that her husband prescribes.
From July 2010 through March 2012, the Kohs ordered various discount oncology drugs, from foreign sources, that Vincent Koh prescribed and administered to patients. These drugs had not been approved by the FDA for distribution or use in the United States, and their labeling did not contain information required by law. As such, these prescription drugs were misbranded, and illegal to receive and provide to patients in the United States.
In entering guilty pleas, Vincent Koh and Milly Koh admitted that they regularly ordered and delivered to patients a drug labeled Mabthera. Generally, Mabthera contains rituximab, the same active ingredient found in the FDA-approved drug legally used and marketed in the United States as Rituxan. However, the drug ordered by Vincent Koh and Milly Koh came from an unapproved, foreign source, and its label did not bear adequate directions for use and other information required by the FDA.
Vincent Koh and Milly Koh are scheduled to be sentenced on March 20, 2018 by United States Magistrate Judge Daniel J. Stewart. They each face up to 1 year in jail and 1 year of supervised release, and a maximum $100,000 fine. Each could also receive a sentence of probation. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FDA Office of Criminal Investigations and HHS-OIG, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
Pimp Sentenced to 40 Years for Sex Trafficking by ForceRead the Press Release
NORFOLK, Va. – A man who resided in California and Virginia was sentenced today to 40 years in prison for sex trafficking by force, fraud, and coercion.
According to court documents, Naeem Lateef Odums, 40, of Clovis, California and Portsmouth, Virginia, forced “Jane Doe 1” to engage in commercial sex acts in California, Virginia, and five other states for nearly nine years. Odums used a combination of extreme physical violence, threats of violence, and threats of kidnapping Jane Doe 1’s children, and other forms of control to cause her to perform commercial sex acts. Court documents note that Odums kicked, punched, and hit Jane Doe 1 with chairs, ashtrays, and other objects – often while Jane Doe 1’s three small children watched, crying. Odums also choked Jane Doe 1, threatened her with a gun, and threatened to kill her and her mother.
Odums arranged commercial sex appointments for Jane Doe 1 using a website known to promote prostitution, and collected all the money Jane Doe 1 earned both from her appointments, as well as from her legitimate jobs. In January 2017, Jane Doe 1 was hospitalized after Odums broke three of her ribs and punctured her lung, then forced her to go on a commercial sex “date” and drove her to the customer’s location. The “date” declined to engage in commercial sex with Jane Doe 1 given her injuries, but paid her for the appointment nonetheless.
Court documents also identify two additional women, Jane Does 2 and 3, in the Tidewater area that Odums attempted to trick into performing commercial sex by posting sexually explicit photographs of them on websites known to promote prostitution. The women had sent Odums these racy photographs because both believed they were in a romantic relationship with him. Neither Jane Doe 2 nor 3 knew, or consented to, Odums posting them in this way.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Tonya D. Chapman, Chief of Portsmouth Police Department; made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.
This case was investigated by the Hampton Roads Human Trafficking Task Force.
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. 2:17-cr-46.
Oshkosh Man Faces Life Sentence for Fentanyl Distribution Resulting in Woman's DeathRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 20, 2017, Anthony R. Chaplin (age: 40) of Oshkosh, Wisconsin, appeared in federal court in Green Bay and pleaded guilty to distribution of fentanyl and methamphetamine resulting in the death of another, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C).
In pleading guilty, Chaplin admitted that he was responsible for selling an Appleton area woman fentanyl and methamphetamine in May of 2017. Chaplin received the fentanyl from his drug supplier in Oshkosh and, later, sold a portion to the deceased. The supplier’s batch of fentanyl has been linked by law enforcement to four additional overdose deaths in the Fox Valley. Investigation into those overdose deaths continues.
Fentanyl is an opioid estimated to be 50 to 100 times more powerful than morphine. The charge to which Chaplin pleaded guilty carries a mandatory sentence of 20 years imprisonment and up to a life sentence. Chaplin is scheduled to be sentenced on February 20, 2018 before Chief Judge William C. Griesbach. He remains incarcerated pending that hearing.
The distribution of “fentanyl, and other controlled substances presents an urgent threat to the safety and well-being of communities in the Eastern District of Wisconsin” according to U.S. Attorney Haanstad.
The case was investigated by the Appleton Police Department, the Winnebago County Sheriff’s Office, the Fond du Lac County Medical Examiner’s Office, and the Wisconsin State Crime Laboratory. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Orange City Man Pleads Guilty to Manufacturing Anabolic SteroidsRead the Press Release
A man who manufactured anabolic steroids pled guilty on November 20, 2017, in federal court in Sioux City.
James Nhan, 23, from Orange City, Iowa, was convicted of one count of manufacturing anabolic steroids, which are Schedule III controlled substances.
In a plea agreement, Nhan admitted that, from late 2014 until December 15, 2015, he manufactured anabolic steroids and intended to distribute some of the steroids to various customers. In December 2015, law enforcement executed a search warrant on Nhan’s residence and seized numerous vials containing anabolic steroids, as well as laboratory equipment, packing material, labels, and sheets of papers listing the names and addresses of individuals who had purchased or intended to purchase anabolic steroids.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Nhan remains free on bond pending sentencing. Nhan faces a possible maximum sentence of 10 years’ imprisonment, a $500,000 fine, $100 in special assessments, and at least 2 years of supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Ajay Alexander and was investigated by the Federal Bureau of Investigations, Drug Enforcement Administration, Iowa Division of Criminal Investigations, Sioux County Sheriff’s Office, Orange City Police Department, Sioux County Attorney’s Office, Department of Homeland Security, Nebraska State Patrol, and Food Drug Administration – Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4050-LTS.
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Operator of Purported Durable Medical Equipment Providers Pleads Guilty to Health Care Fraud Charges for Role in Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Suzanna Meliksetyan, an operator of multiple purported durable medical equipment (DME) companies pleaded guilty to one count of conspiracy to commit health care fraud for her role in a scheme to defraud Healthfirst, a non-profit, New York-based health maintenance organization that administers Medicare Advantage plans and New York Medicaid Managed Care plans. The proceeding was held before United States District Judge Allyne R. Ross.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Kenneth A. Blanco, Acting Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special Agent-in-Charge, United States Department of Health and Human Services Office of Inspector General’s (HHS OIG), Office of Investigations, announced the guilty plea.
As part of her guilty plea, Meliksetyan admitted that she operated a series of purported DME companies that did not in fact provide equipment to any beneficiaries. The defendant further admitted that she and others called Healthfirst, pretending to represent vendors in Healthfirst’s network. The companies Meliksetyan operated submitted almost $1 million in false claims to Healthfirst.
This case was investigated by the FBI and HHS OIG. Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section is prosecuting the case.
Defendant:
SUZANNA MELIKSETYAN
Age: 28
Residence: Gaithersburg, Maryland
E.D.N.Y. Docket No. 17-CR-351 (ARR)
Operator of Purported Durable Medical Equipment Providers Pleads Guilty to Health Care Fraud Charges for Role in Durable Medical Equipment Fraud SchemeRead the Press Release
An operator of multiple purported durable medical equipment (DME) companies pleaded guilty today to fraud charges for her role in a scheme to defraud Healthfirst, a non-profit, New York-based health maintenance organization that administers Medicare Advantage plans and New York Medicaid Managed Care plans.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations made the announcement.
Suzanna Meliksetyan, 28, of Gaithersburg, Maryland, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Alynne R. Ross of the Eastern District of New York. Sentencing has been scheduled for March 21, 2018 before Judge Ross.
As part of her guilty plea, Meliksetyan admitted that she operated a series of purported DME companies that did not in fact provide equipment to any beneficiaries. She further admitted that she and others called Healthfirst, falsely representing themselves as vendors in Healthfirst’s network. The companies Meliksetyan operated submitted almost $1 million in false claims to Healthfirst, and she admitted to receiving more than $300,000 in connection with those false claims.
This case was investigated by the FBI and HHS-OIG. Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Omaha Man Convicted of Robbery and Firearms ChargesRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Preston Pope, age 27, of Omaha, Nebraska, was found guilty by a jury yesterday of robbery and firearms charges occurring in August 2015. The federal trial started November 14, 2017 in front of U.S. District Judge Laurie Smith Camp.
On August 11, 2015, at approximately 12:43 a.m., the Walgreen’s at 3001 Dodge Street was robbed by two masked men brandishing firearms. They held the cashier and a customer at gunpoint before leaving the store with over $500. At approximately 5:42 p.m. the same day, two people matching the same description robbed the U.S. Bank, inside the No Frills grocery store at 4240 South 50th Street, also covering their faces and brandishing firearms. After threatening the tellers, they left the bank with over $9,000. Later that day a vehicle that had been stolen the night before was found about two miles from the bank. Inside the vehicle was a fully loaded .40 caliber gun magazine.
On August 14, 2015, Omaha Police officers in the area of Miller Park, tried stopping a vehicle for having a broken taillight. The vehicle fled from the officers. Another officer stayed in the area and approximately a mile from the attempted traffic stop, noticed a man running through yards jumping fences. The officer was able to make contact with the subject. He was identified as Preston Pope. Officers traced the route Pope had taken and located a loaded .40 firearm off the side of the road that appeared to have been recently tossed there. The magazine and bullets found in the stolen vehicle on August 11 match the magazine and bullets found in the gun recovered on August 14. The gun also matched the gun used in the Walgreen’s and U.S. Bank robberies.
Officers got a search warrant for Pope’s brother’s house, where Pope had been staying. Inside the house officers located hundreds of dollars of new clothes, paid for in cash, and the box for the firearm found hours before. There was a vehicle in the driveway that had been purchased on August 13, for $2300.00 in cash, from Edwards Auto in Council Bluffs, by Pope’s sister. Officers went to Edwards and found that one of the $10 bills used to pay for the vehicle had been taken in the U.S. Bank robbery. When his sister didn’t have enough money for the vehicle, Pope gave her the difference. Further investigation led officers to discover Morris paid $2000.00 in cash for a vehicle from Edward’s Auto on August 12, 2015.
Forensic analysis was done on the stolen vehicle located August 11, 2015, and Jeron Morris’s DNA was found inside. Forensic analysis was done on the gun and it was found to contain Pope’s DNA. Pope is a convicted felon and as such is prohibited by law from possessing a firearm.
Pope was convicted of robbing the Walgreen’s, brandishing a firearm during that robbery, robbing the U.S. Bank, brandishing a firearm during that robbery and felon in possession of a firearm. Sentencing has been set for February 26, 2018. Each robbery charge carries up to 20 years imprisonment, the first brandishing charge is 7 years to life imprisonment, the second brandishing charge is 25 years to life and the felon in possession of a firearm is not more than 10 years imprisonment.
Morris previously pled guilty to robbing the U.S. Bank and brandishing a firearm. His sentencing is also set for February 26.
The case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Oklahoma City Behavioral Health Counselor Charged with Medicaid FraudRead the Press Release
Oklahoma City, Oklahoma – On November 15, 2017, a federal grand jury charged SAMUEL OKERE, 61, of Oklahoma City, with Medicaid fraud, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma, and Mike Hunter, Oklahoma Attorney General. The indictment was unsealed today at Okere’s arraignment.
According to the 224-count indictment, Okere defrauded the Oklahoma Health Care Authority through false claims for behavioral health counseling while he was a licensed professional counselor and owner of New Life Counseling Services. In particular, the indictment alleges that Okere billed for counseling sessions for multiple individuals, primarily children, at times when he could not have been counseling them. For example, some of the times and dates billed were when clients were at school or in the hospital. Others were when Okere was engaged in activities inconsistent with counseling, such as speaking on the phone with representatives of the Oklahoma Health Care Authority.
If convicted, Okere could be imprisoned for a maximum of ten years on each count, to be followed by three years of supervised release. He could also be fined up to $250,000 on each count and would be subject to mandatory restitution.
Attorney General Hunter stated that he appreciates U.S. Attorney Yancey for assisting his office on this case. U.S. Attorney Yancey said his office will continue its partnership with state agencies and state law enforcement to prevent fraud and corruption.
The public is reminded these charges are merely accusations and that Okere is presumed innocent unless proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the Oklahoma Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Amanda Maxfield Green and Assistant Oklahoma Attorney General Lory Dewey, who is also a Special Assistant U.S. Attorney, are prosecuting the case. Reference is made to court filings for further information.
Ohiopyle Man Sentenced to Wrongly Obtaining Social Security Disability PaymentsRead the Press Release
PITTSBURGH – A Fayette County resident of has been sentenced in federal court to two years probation with four months home detention on his conviction of theft of government property, Acting United States Attorney Soo C. Song announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on James Morrison, 37, of Ohiopyle, PA.
According to the information presented to the court, Morrison obtained $15,630 in SSI disability payments from November of 2012 to July of 2014 and in October and November of 2014, when he was employed and concealed his wages from the Social Security Administration by failing to report them and by falsely representing that he was not working.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
The Acting U.S. Attorney commended the Social Security Administration, Office of Inspector General, for the investigation leading to the successful prosecution of James Morrison.
Officials from the U.S., Canada and Mexico Participate in 2017 Trilateral Meeting in Washington D.C. to Discuss Antitrust EnforcementRead the Press Release
Antitrust agency heads from the United States, Canada and Mexico meet today at the Department of Justice in Washington, D.C., to discuss their ongoing work to ensure fair and effective antitrust enforcement and increased cooperation among the nations.
The meeting includes Assistant Attorney General Makan Delrahim of the U.S. Department of Justice’s Antitrust Division, Acting Chairman Maureen Ohlhausen of the U.S. Federal Trade Commission, Canadian Commissioner of Competition John Pecman, and President Alejandra Palacios of the Mexican Federal Economic Competition Commission.
The discussions will cover a wide range of topics including developments and priorities, antitrust and the digital economy, and future opportunities for cooperation and convergence on sound antitrust principles.
“Today we welcome our close partners in antitrust enforcement from Canada and Mexico. Close cooperation and convergence around sound economic principles with our international partners is a key priority for the Antitrust Division,” said Assistant Attorney General Makan Delrahim. “With increasingly interconnected markets, our working relationships with Mexico and Canada are strengthened through meetings like this, and further our efforts to effectively work together to block price fixing cartels that harm consumers, review cross-border transactions and prepare ourselves to tackle the policy challenges of tomorrow.”
“Maintaining and strengthening the already close bonds with our nearest partners is a key international priority,” said Federal Trade Commission Acting Chairman Maureen K. Ohlhausen. “We have much in common with Canada's Competition Bureau and Mexico's COFECE, including reviewing mergers with cross-border effects and sharing approaches to competition advocacy. By working together to promote good competition policy globally, we benefit consumers in all of our countries.”
The 1995 antitrust cooperation agreement between the United States and Canada, the 1999 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico laid the foundation for these meetings. The agreements commit the antirust agencies to coordinate and cooperate with each other in an effort to ensure the most consistent and effective antitrust enforcement.
Numerous Alleged Members of Narcotics Trafficking Organization Taken into CustodyRead the Press Release
BROWNSVILLE, Texas – A total of nine men have been arrested following multiple enforcement actions in Brownsville, Corpus Christi and Crowley, Louisiana, announced Acting U.S. Attorney Abe Martinez.
During enforcement actions on Thursday, law enforcement arrested Jesus Hector Garza Jr., 29, of Rancho Viejo; Gelacio Flores-Flores, 31, and Mayra Rodriguez, 39, both of Los Fresnos; and Silvia Sarai Cruz, 26, and Ramon Martin Arambula, 46, both of Brownsville. They made their initial appearances last week and will appear before U.S. Magistrate Judge Igancio Torteya on Nov. 22, 2017.
Ramon Montoya, 42, of Brownsville, was previously taken into custody in Memphis, Tennessee. Rubaldino Pecina, 36, of San Benito, was arrested in Corpus Christi, on Friday afternoon, while Juana Alcocer, 38, of Matamoros, Tamaulipas, Mexico, was taken into custody Saturday as she entered the United States at the Veterans Bridge Port of Entry from Mexico. Today, law enforcement arrested John Fontenot, 46, of Crawley, Louisiana. Those four defendants are expected to appear in Brownsville in the near future.
On Oct. 31, 2017, a federal grand jury in Brownsville returned a 14-count indictment against Montoya – allegedly the leader of the organization and the others, alleging drug trafficking crimes related to marijuana, crack cocaine and methamphetamine. They allegedly transported marijuana for resale and sold crack cocaine in Cameron County. The charges also include delivering cocaine to Houston and methamphetamine to Louisiana.
The charges carry varying terms of imprisonment up to life depending on the counts charged as well as possible fines up to $10 million.
This was an Organized Crime Drug Enforcement Task Force operation spanning two years. The FBI and the Drug Enforcement Administration led the investigation with assistance from Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Marshals Service, Border Patrol, Cameron County District Attorney’s Office, and police departments in Brownsville, Harlingen and Raymondville. Assistant U.S. Attorney Karen Betancourt is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
North Country Couple Sentenced on Methamphetamine ChargesRead the Press Release
UTICA, NEW YORK – Ryan Granger, a/k/a Bubba Granger, age 38, formerly of Lewis County, New York, was sentenced to serve 108 months in prison for possessing pseudoephedrine knowing it would be used to manufacture methamphetamine, and for manufacturing and distributing methamphetamine, announced Acting United States Attorney Grant C. Jaquith, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division and New York State Police Superintendent George P. Beach II.
Between January 2015 and September 2016, Granger, together with co-defendant Megan Thomas, age 30, also of Lewis County, purchased pseudoephedrine pills with an aggregate weight of 96 grams from different drug stores in and around Lewis County. Granger and Thomas knew there were restrictions on the sale of pseudoephedrine, and to avoid scrutiny, often rotated the stores from which they bought the pills. Granger and Thomas purchased the pseudoephedrine knowing it would be used to illegally manufacture methamphetamine, distributing some of the pseudoephedrine to others for that purpose, while Granger and Thomas themselves “cooked” methamphetamine with some of the pills they had purchased. Granger and Thomas ingested the finished methamphetamine and Granger sold “user quantity” amounts of the finished methamphetamine to others.
Granger, who has been held in custody since his arrest on March 3, 2017, entered his guilty pleas on July 10, 2017, which is also the date on which Thomas pled guilty to the charges. On November 8, 2017, Thomas was sentenced to serve a term of 18 months in prison. After completing their respective terms of imprisonment, Granger and Thomas will each be placed on a term of supervised release; Granger for at least 6 years, Thomas for at least 3 years.
This case was investigated by the New York State Police (NYSP), including the NYSP Contaminated Crime Scene Emergency Response Team (CCERT), the New York State Intelligence Center (NYSIC), the Village of Lowville Police Department, the Lewis County Sheriff’s Office, the Lewis County District Attorney’s Office, and the U.S. Drug Enforcement Administration (DEA), and was prosecuted by Assistant U.S. Attorney Carl Eurenius.
Newark Non-Profit Director and Political Fundraiser Pleads Guilty to Wire Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – The former executive director of a Newark-based childcare and community program and a partner in a political fundraising and consulting company today admitted committing wire fraud and tax evasion, Acting U.S. Attorney William E. Fitzpatrick announced.
Kiburi D. Tucker, 42, of Newark, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of wire fraud and four counts of tax evasion.
According to documents filed in this case and statements made in court:
As the executive director of The Centre Inc., Tucker embezzled Centre Inc. funds, through ATM, debit card and bank withdrawal transactions to fund his personal expenditures such as gambling, travel, and furnishing his home. Tucker defrauded The Centre Inc. of $332,116 from 2012 through 2015.
Tucker also intentionally under-reported the proceeds that he took from The Centre Inc. to the IRS. He intentionally under-reported the income that he received for tax year 2015 from his partnership in Elite Strategies, a political fundraising and consulting company, by filing false federal personal income tax returns. Tucker admitted that he was responsible for underreporting $177,040 in income from the above sources for the 2015 tax year, resulting in a tax loss of $56,509.
The count of wire fraud is punishable by a maximum penalty of 20 years in prison and a $250,000 fine. The count of tax evasion is punishable by a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 27, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the Special Prosecutions Division.
Defense counsel: Timothy M. Donohue Esq., West Orange, New Jersey
Nebraska Man Sentenced to Prison for Receipt and Possession of Child PornographyRead the Press Release
A Nebraska man was sentenced today to six years in prison for child pornography offenses, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Robert C. Stuart of the District of Nebraska.
Robert Louis Bergstrom, 47, of Omaha, Nebraska, pleaded guilty on July 20, to receipt and distribution of child pornography. U.S. District Court Judge Robert F. Rossiter Jr. of the District of Nebraska sentenced Bergstrom and also ordered him to serve 10 years of supervised release.
In May 2016, law enforcement identified an IP address belonging to Bergstrom’s residence as sharing child pornography images on a peer-to-peer file sharing network. Devices seized from his home during a federal search warrant in August 2016 contained numerous videos and images constituting child pornography. When interviewed by law enforcement, Bergstrom admitted that he had specifically searched for and downloaded child pornography.
The charges are the result of an investigation by the FBI’s Internet Crimes Against Children Task Force. The matter is being prosecuted by Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska. Trial Attorney Jessica L. Urban of CEOS also served as a member of the prosecution team at earlier stages of the litigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Navajo Woman Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Bryana Agnes Henio, 30, an enrolled member of the Navajo Nation who resides in Little Water, N.M., pled guilty today in federal court in Albuquerque, N.M., to an involuntary manslaughter charge under a plea agreement with the U.S. Attorney’s Office
Henio was arrested in Oct. 2017, on a criminal complaint charging her with involuntary manslaughter. According to the complaint, Henio killed a man by hitting him with a vehicle on Sept. 8, 2017, on the Navajo Indian Reservation in McKinley County, N.M. At the time Henio ran over the victim, Henio was driving under the influence of alcohol.
During today’s proceedings, Henio pled guilty to a felony information charging her with involuntary manslaughter and admitted killing the victim by driving recklessly while under the influence of alcohol. Henio acknowledged that the alcohol rendered her incapable of exercising clear judgment and a steady hand in operating the vehicle.
At sentencing, Henio faces a maximum statutory penalty of eight years in federal prison. She remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Joseph M. Spindle is prosecuting the case.
Mexican National Charged with Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that EFRAIN VARELA-TOLENTINO, age 31, a citizen of Mexico, was charged in a one-count Bill of Information for illegal use of a Social Security Number in violation of Title 42, United States Code, Section 408(a)(7)(B).
VARELA-TOLENTINO faces a maximum term of imprisonment of not more than five years, a fine of $250,000, and a mandatory special assessment of $100. Additionally, VARELA-TOLENTINO is subject to a period of supervised release after imprisonment of up to three years.
Acting U.S. Attorney Evans stated that a Bill of Information is only an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Members of Coney Island Street Gang Indicted for Murder, Racketeering Conspiracy and Unlawful Use of FirearmsRead the Press Release
Four members and one associate of the West End Enterprise, a street gang based in three apartment complexes in Coney Island, New York, will be arraigned this afternoon in federal court in Brooklyn on an indictment charging them with crimes including murder in aid of racketeering, racketeering conspiracy, unlawful use of firearms, witness tampering and robbery. The 12-count superseding indictment relates to the defendants’ alleged criminal activities between 2011 and 2017. The defendants, Tysheen Cooper, also known as “Billz,” Maurice Washington, also known as “Moe” and “Flaco,” Sharod Liburd, also known as “Pop,” and Gabriale Herbert are scheduled to be arraigned this afternoon before United States Magistrate Judge Lois Bloom. The defendant Michael Liburd, also known as “Mike Mike” and “Mitty,” is scheduled to be arraigned Tuesday, November 21, 2017, before Magistrate Judge Bloom.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
As detailed in the superseding indictment and other filings, Cooper, Michael Liburd, Sharod Liburd and Washington were members of the West End Enterprise, a street gang composed of individuals residing in and around the Sea Rise Apartments, the Gravesend Houses and Surfside Gardens, also known as the “Mermaid Houses,” located in the western end of Coney Island. During that time, Cooper, Michael Liburd, Washington and other coconspirators allegedly engaged in narcotics distribution, witness intimidation and acts of violence, including retaliatory shootings against members of a rival gang, known as “Sex Money Murder,” and the January 17, 2016 murder of Antwon Flowers. Flowers was shot to death as he left an apartment building in the Mermaid Houses development in retaliation for the murder of a West End Enterprise leader, who had been killed in the East New York section of Brooklyn less than a day earlier. Herbert, Cooper and Sharod Liburd are also charged with a gun-point Hobbs Act robbery.
“As alleged, the defendants and other members of their street gang have subjected the residents of Coney Island to violent conduct, including murder, over a period of years,” stated Acting United States Attorney Rohde. “The indictment sends a clear message that this Office, together with our federal and local law enforcement partners, will use every available resource to rid our communities of gangs, and the crimes they commit, by prosecuting gang members to the fullest extent of the law.” Ms. Rohde extended her thanks to the Drug Enforcement Administration for its assistance in the investigation.
“People usually think of Coney Island as a fun place to ride the rides, and have a hot dog on the beach. The men charged in this case created a dirty underbelly in a family oriented place, accused of murder, violence and criminal behavior,” stated FBI Assistant Director-in-Charge Sweeney. “Not only did they allegedly commit these crimes, they did their best to make sure no one would testify against them. These dangerous gangs don’t have a place on Coney Island, or in any community, and the FBI won’t relent in pursuing cases targeting their leadership.”
“Ridding drugs, gangs and violence from New York City public housing is essential and this joint investigation resulted in just that,” stated DOI Commissioner Peters. “Public housing tenants deserve what all New Yorkers want: a safe home for themselves and their children. DOI is proud to work with our federal and city law enforcement partners to expose and stop these crimes.”
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a sentence of life imprisonment.
The superseding indictment is the fifth indictment in the government’s ongoing investigation into gang violence in Brooklyn’s Coney Island neighborhood. The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Rena Paul and Mathew S. Miller are in charge of the prosecution.
The Defendants:
TYSHEEN COOPER (“Billz”)
Age: 26
Residence: Brooklyn, New YorkGABRIALE HERBERT
Age: 20
Residence: Brooklyn, New YorkMICHAEL LIBURD (“Mike Mike” and “Mitty”)
Age: 27
Residence: Brooklyn, New YorkSHAROD LIBURD (“Pop”)
Age: 20
Residence: Brooklyn, New YorkMAURICE WASHINGTON (“Moe” and “Flaco”)
Age: 28
Residence: Brooklyn, New YorkEDNY Docket No. 17-CR-296 (PKC)
Members of Sonoma Motorcycle Gang Charged with Murder, Racketeering Conspiracy, and Related CrimesRead the Press Release
SAN FRANCISCO- A federal grand jury indicted eleven people including eight alleged associates of the Hells Angels Sonoma County chapter (HASC), one alleged associate of the Fresno Hells Angels chapter, and one alleged associate of the Salem/Boston Hells Angels chapter for their respective roles in a Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and for committing numerous related crimes including murder, assault, maiming, and witness intimidation, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The eleventh defendant is an alleged HASC associate who was charged with witness intimidation. The indictment, filed October 10, 2017, was unsealed today following the arrest of nine of the defendants.
The indictment describes the Hells Angels as a transnational violent outlaw motorcycle gang and the HASC as a subset of the gang whose members primarily operate in Sonoma County, Calif. According to the indictment, HASC works cooperatively with other Hells Angels chapters to engage in criminal activity including murder, narcotics distribution, assault, robbery, extortion, illegal firearms possession, and obstruction of justice.
“This week we have taken a significant step toward bringing to justice an alleged conspiracy whose aim has been to commit violent crimes,” said U.S. Attorney Stretch. “The indictment unsealed this morning describes an array of serious offenses allegedly committed by the defendants including conspiracy to commit murder, assault, maiming, home invasion robbery, extortion, and witness intimidation. This operation proves once again the value of pooling the resources of the federal government with those of our state and local law enforcement partners—it is only through this coordination that we are able to stamp out violence in our communities. I commend and thank all of our law enforcement partners for their extraordinary work in bringing this phase of the operation to a successful conclusion.”
The indictment alleges that HASC members and associates commit acts of violence to maintain and enhance membership and discipline within the gang, including violence against rival gang members, those perceived to be rival gang members, rivals in general, those who disrespect or commit violence against HASC members or other Hells Angels, friends or family, as well as HASC members and associates who violate the gang’s rules. In this case, the indictment alleges, Brian Wendt committed the murder of an unnamed victim on July 15, 2014, at the Fresno Hells Angels clubhouse. According to the indictment, co-conspirator Jonathan Nelson directed the victim to meet with Wendt and co-conspirator Russell Ott accompanied the victim from the Northern District of California to the Fresno clubhouse where Wendt committed the murder.
According to the indictment, some of the defendants were involved in the RICO conspiracy as early as July and August of 2007 when Raymond Foakes allegedly committed bank fraud and money laundering to obtain a residence in which to establish an indoor marijuana cultivation operation. Additional crimes that are alleged to have been committed as part of the conspiracy include a home invasion robbery, extortion, assault, maiming, and the illegal possession of weapons and drugs.
HASC members also are alleged to have obstructed justice by threatening, intimidating, and retaliating against witnesses whom they believed to be cooperating with law enforcement and by destroying evidence and providing false information to law enforcement. In this case, Brian Allen Burke is accused of attempting to intimidate and threaten and corruptly persuade a victim by threatening to shoot the victim with a firearm. Burke is alleged to have attempted to persuade the victim not to provide evidence in the adjudication of Foakes’ violation of the conditions of his supervised release in a federal case.
The precise charges against each defendant, as well as their ages and places of residence where known, are set out in the chart below.
Defendant
Age/Residence
Charges
Statute
JONATHAN JOSEPH NELSON a/k/a Jon Jon
41/Santa Rosa
RICO Conspiracy
18 U.S.C. § 1962(d)
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
Maiming in Aid of Racketeering
18 U.S.C. § 1959(a)(2)
Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(3)
Use/Possession of a Firearm During a Crime of Violence
18 U.S.C. § 924(c)(1)(A)
RAYMOND MICHAEL FOAKES
a/k/a Ray Ray
54/ Rohnert Park
RICO Conspiracy
18 U.S.C. § 1962(d)
Maiming in Aid of Racketeering
18 U.S.C. § 1959(a)(2)
Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(3)
Witness Intimidation
18 U.S.C. § 1512(b)
RUSSELL ALLEN LYLES, JR.
a/k/a J.R.
36/Windsor, CA
RICO Conspiracy
18 U.S.C. § 1962(d)
Maiming in Aid of Racketeering
18 U.S.C. § 1959(a)(2)
Assault With a Dangerous Weapon in aid of Racketeering
18 U.S.C. § 1959(a)(3)
JEREMY DANIEL GREER
37/Santa Rosa
RICO Conspiracy
18 U.S.C. § 1962(d)
Hobbs Act Robbery
(3 counts)
18 U.S.C. § 1951(a)(1)
Maiming in Aid of Racketeering
18 U.S.C. § 1959(a)(2)
Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(3)
Use/Possession of a Firearm During a Crime of Violence
18 U.S.C. § 924(c)(1)(A)
BRIAN WAYNE WENDT
40/Tulare
RICO Conspiracy
18 U.S.C. § 1962(d)
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
RUSSELL TAYLOR OTT, a/k/a Rusty
64/Santa Rosa
RICO Conspiracy
18 U.S.C. § 1962(d)
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
CHRISTOPHER RANIERI
a/k/a Rain Man
49/Lynn, MA
RICO Conspiracy
18 U.S.C. § 1962(d)
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
DAMIEN DAVID CESENA
36/Santa Rosa
RICO Conspiracy
18 U.S.C. § 1962(d)
Hobbs Act Robbery
18 U.S.C. § 1951(a)(1)
BRIAN ALLEN BURKE
a/k/a Bucky
37/ Windsor, CA
Witness Intimidation
18 U.S.C. § 1512(b)
JASON RANDALL CLIFF
a/k/a Agro
50
Maiming in Aid of Racketeering
18 U.S.C. § 1959(a)(2)
Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(3)
DAVID SALVATORE DIAZ, III
45
RICO Conspiracy
18 U.S.C. § 1962(d)
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum statutory penalties for the crimes of which the defendants have been accused are as follows:
Charge
Statute
Maximum Statutory Penalty
RICO Conspiracy
18 U.S.C. § 1962(d)
Life imprisonment, $250,000 fine, five years’ supervised release, $100 special assessment
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years’ imprisonment, $250,000 fine, three years’ supervised release, $100 special assessment
Maiming in Aid of Racketeering
18 U.S.C. § 1959(a)(2)
30 years’ imprisonment, $250,000 fine, five years’ supervised release, $100 special assessment
Assault With a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(3)
20 years’ imprisonment, $250,000 fine, three years’ supervised release, $100 special assessment
Use/Possession of a Firearm During a Crime of Violence
18 U.S.C. § 924(c)(1)(A)
A consecutive sentence of not less than seven years and not more than life, $250,000 fine, five years’ supervised release, $100 special assessment
Witness Intimidation
18 U.S.C. § 1512(b)
20 years’ imprisonment, $250,000 fine, three years’ supervised release, $100 special assessment
Hobbs Act Robbery
(each count)
18 U.S.C. § 1951(a)(1)
20 years’ imprisonment, $250,000 fine, three years’ supervised release, $100 special assessment
Further, additional fines, forfeitures, and restitution may be ordered; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Several of the defendants were arrested in Santa Rosa on Saturday, November 18, 2017, as part of a criminal enforcement operation. All the defendants except Lyles, Wendt, Foakes, and Ranieri appeared before the Honorable Maria Elena James, U.S. Magistrate Judge, on November 20, 2017. The following appearances are scheduled for the defendants before the Honorable Sallie Kim, U.S. Magistrate Judge: Russell Ott, November 21, 2017 at 9:30 a.m. for identification of counsel; Brian Burke, November 21, 2017 at 9:30 a.m. for bond hearing; Jason Cliff, November 21, 2017 for identification of counsel; Jonathan Nelson, November 21, 2017 at 9:30 a.m. for identification of counsel; Jeremy Greer, November 21, 2017 at 9:30 a.m. for identification of counsel; David Diaz, November 27, 2017 at 9:30 a.m. for detention hearing; Damien Cesena, November 29, 2017 at 9:30 a.m. for detention hearing.
Assistant U.S. Attorneys Kevin Barry and Erin Cornell are prosecuting the case. The prosecution is the result of an investigation by the FBI, the Santa Rosa Police Department, the Sonoma county Sheriff’s Department, and the California Highway Patrol.
Massachusetts Man Sentenced to Probation for Failing to Pay Child SupportRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Daniel Shertzer, 30, of Fitchburg, Massachusetts, was sentenced today in U.S. District Court by Judge George Z. Singal to five years of probation for failure to pay child support. He was also ordered to pay $57,533.75 in restitution. Shertzer pleaded guilty on July 17, 2017.
According to court documents, Shertzer is the father of three minor children, as to whom he was ordered to pay child support in 2010, 2012 and 2013, respectively. Between March 2010 and January 2017 -- except for the period between May and June 2011 when he worked in Maine -- Shertzer has lived and worked in California, Massachusetts, and New Hampshire, but rarely made any voluntary payments toward his support obligations.
In pronouncing sentence, Judge Singal admonished Shertzer that he was totally irresponsible, that his victims were innocent and vulnerable children, and that the court would supervise him closely and send him to jail if he did not fulfill those support obligations. Judge Singal scheduled the matter for a status conference in six months to ensure that Shertzer did so.
The case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services
Man Sentenced to 12 Years for Drug Trafficking and Firearms CrimesRead the Press Release
RICHMOND, Va. – A Westmoreland man was sentenced today to 12 years in prison for his participation in a drug trafficking conspiracy, including conspiracy to distribute heroin and possession of a firearm by a convicted felon.
According to court documents, Terrell Sylvester Johnson, 28, conspired with others to traffic over 1000 grams of heroin and over 400 grams of fentanyl over the last two years. During the course of the conspiracy, Johnson sold quantities of heroin ranging from gram to ounce quantities and allowed his residence in Colonial Beach to be used to distribute, use and store heroin and fentanyl. Also during the course of the conspiracy, Johnson possessed a number of firearms, which he was prohibited from doing because he had previously been convicted of a felony crime.
Johnson is the last in a line of others involved in this conspiracy to be sentenced. The others include: Lawrence Buckner, 37, of King George, sentenced to eight years on October 27; Jeffrey Dudley, 26, of Colonial Beach, sentenced to seven years on October 27; Clifton Howdershelt, 54, of King George, sentenced to 11 years on November 13; and Edward Shupe, 47, of King George, sentenced to 11 years on October 20.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after the sentencings by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:17-cr-54, 55, and 57.
Local Man Convicted of Bank RobberyRead the Press Release
CORPUS CHRISTI, Texas - A Corpus Christi resident has entered a guilty plea to bank robbery, announced Acting U.S. Attorney Abe Martinez.
On Dec. 20, 2016, law enforcement officers responded to a bank robbery at the navy Army Community Credit Union in the 9500 block of South Padre Island Drive in Corpus Christi. After entering the bank, a male - later identified as Johnathan Samuel Borden, 32 - handed the teller a black bag and demanded money.
During the investigation, agents were able to link Borden to an additional robbery that occurred on Jan. 6, 2017, at the Texas Bridge Credit Union in the 3100 block of Holly in Corpus Christi.
Senior U.S. District Judge John Rainey accepted the plea today and has set sentencing for Feb. 20, 2018. At that time, Borden faces up to 20 years imprisonment and a possible $250,000 maximum fine.
In federal custody since his arrest, Borden will remain in custody pending that hearing.
The FBI and the Corpus Christi Police Department conducted the investigation.
Assistant U.S. Attorney Lance Watt is prosecuting the case.
Lewiston Man Pleads Guilty to Receiving Child PornographyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Nicholas T. Richard, 39, of Lewiston, Maine, pled guilty today in U.S. District Court to receiving child pornography.
According to court records, in February of this year, Richard used the internet and peer-to-peer file-sharing software to download child pornography images. Richard was at the Auburn Public Library when he downloaded the images using the library’s wireless internet connection. Investigators seized Richard’s laptop computer and other electronic devices from him at the library and obtained a search warrant for them. The laptop contained thousands of images and videos depicting child pornography and child erotica.
Richard faces an enhanced sentence of between 15 and 40 years in prison based on a prior federal child pornography conviction. He also faces a fine of up to $250,000, and supervised release of between five years and life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit and the Auburn Police Department.
Kenyan Man Convicted of Illegally Possessing a FirearmRead the Press Release
Kevin Oscar Naholi, age 40, a Kenyan citizen previously residing in southwest Cedar Rapids, Iowa, was convicted by a federal jury today, following a one day trial, on one count of possessing a firearm as an alien unlawfully in the United States and after having been previously convicted of a misdemeanor crime of domestic violence.
Evidence presented at trial showed that at about 6:00 pm on Saturday evening, August 26, 2017, Naholi was outside his residence and pointed a .22 caliber Winchester rifle at a neighbor and her two small children who were returning home from dinner at a nearby restaurant. The neighbor and her children ran to a nearby house where she called 9-1-1. By the time police responded, Naholi had retreated into his residence and an eleven-hour standoff ensued. Cedar Rapids Police attempted to negotiate with Napoli during that time but he refused to come out of the residence. At about 4:30 a.m. on August 27, 2017, a special response unit of the Cedar Rapids Police Department safely entered the residence and took Naholi into custody. Police seized the .22 caliber rifle from a bedroom in the residence
The complaint originally filed in the case alleged that Naholi entered the United States from Kenya in 2003 on a student visa. However, when Naholi failed to register for classes as required by the visa, the visa was revoked in 2004. Naholi subsequently sought unsuccessfully to gain lawful status in the United States.
Naholi faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment. Naholi will also likely be deported from the United States.
The case was prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-00070- LRR.
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Justice Department awards nearly $2 million to hire police officers in Canton, Lima, East Cleveland and DennisonRead the Press Release
Attorney General Jeff Sessions today announced $98,495,397 in grant funding through the Department of Justice’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The Attorney General announced funding awards to 179 law enforcement agencies across the nation, which allows those agencies to hire 802 additional full-time law enforcement officers.
The Justice Department has awarded nearly $2 million over three years to hire 14 officers in the Northern District of Ohio. Municipalities receiving funding are: Canton (eight officers), Lima (three officers), East Cleveland (two officers) and Dennison Village (one officer).
“Cities and states that cooperate with federal law enforcement make all of us safer by helping remove dangerous criminals from our communities,” said Attorney General Jeff Sessions. “Today, the Justice Department announced that 80 percent of this year’s COPS Hiring Program grantees have agreed to cooperate with federal immigration authorities in their detention facilities. I applaud their commitment to the rule of law and to ending violent crime, including violent crime stemming from illegal immigration. I continue to encourage every jurisdiction in America to collaborate with federal law enforcement and help us make this country safer.”
“I’m gratified we are able to continue to support the good police work taking place all across the District,” U.S. Attorney Justin Herdman said. “This money will help reduce violent crime, enhance data-driven policing and support law enforcement on the front lines of the opioid crisis.”
CHP provides grant funding directly to state, local, and tribal law enforcement agencies to support hiring additional law enforcement officers for three years to address specific crime problems through community policing strategies.
In September, the Justice Department announced additional priority consideration criteria for FY2017 COPS Office grants. Applicants were notified that their application would receive additional points in the application scoring process by certifying their willingness to cooperate with federal immigration authorities within their detention facilities. Cooperation may include providing access to detention facilities for an interview of aliens in the jurisdiction’s custody and providing advance notice of an alien’s release from custody upon request. 143 of the 179 (80 percent) awarded agencies received additional points based on their certifications of willingness to cooperate with federal immigration authorities.
The complete list of award recipients can be found here.
The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
Justice Department Grant Will Help Olathe Hire PoliceRead the Press Release
KANSAS CITY, KAN. – A $500,000 grant from the justice Department will pay for four police officer positions in Olathe, U.S. Attorney Tom Beall said today.
The money comes from the COPS Hiring Program Awards announced Monday by the Justice Department’s Office of Community Oriented Policing Services. The propose of the program is provide funds to state, local and tribal law enforcement agencies to support hiring additional career law enforcement officers to address specific crime problems through community policing strategies.
Attorney General Jeff Sessions Monday announced a total of $98.4 million in COPS grants nationwide.
“Cities and states that cooperate with federal law enforcement make all of us safer by helping remove dangerous criminals from our communities,” Sessions said.
The complete list of award recipients can be found at https://www.cops.usdoj.gov/pdf/2017AwardDocs/chp/Award_List.pdf
The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
Justice Department Challenges AT&T/DirecTV’s Acquisition of Time WarnerRead the Press Release
The United States Department of Justice today filed a civil antitrust lawsuit to block AT&T/DirecTV’s proposed acquisition of Time Warner Inc. The $108 billion acquisition would substantially lessen competition, resulting in higher prices and less innovation for millions of Americans.
The combination of AT&T/DirecTV’s vast video distribution infrastructure and Time Warner’s popular television programming would be one of the largest mergers in American history. Time Warner’s network offerings include TBS, TNT, CNN, Cartoon Network, HBO and Cinemax, and its programming includes Game of Thrones, NCAA’s March Madness, and substantial numbers of MLB and NBA regular season and playoff games.
According to the complaint, which was filed in the United States District Court for the District of Columbia, the combined company would use its control over Time Warner’s valuable and highly popular networks to hinder its rivals by forcing them to pay hundreds of millions of dollars more per year for the right to distribute those networks. The combined company would also use its increased power to slow the industry’s transition to new and exciting video distribution models that provide greater choice for consumers, resulting in fewer innovative offerings and higher bills for American families.
As AT&T itself has expressly acknowledged, distributors with control over popular programming “have the incentive and ability to use . . . that control as a weapon to hinder competition.” And, as DirecTV itself has explained, such vertically integrated programmers “can much more credibly threaten to withhold programming from rival [distributors]” and can “use such threats to demand higher prices and more favorable terms.” This merger would create just such a vertically integrated programmer and cause precisely such harms to competition.
“This merger would greatly harm American consumers. It would mean higher monthly television bills and fewer of the new, emerging innovative options that consumers are beginning to enjoy,” said Assistant Attorney General Makan Delrahim of the Department’s Antitrust Division. “AT&T/DirecTV’s combination with Time Warner is unlawful, and absent an adequate remedy that would fully prevent the harms this merger would cause, the only appropriate action for the Department of Justice is to seek an injunction from a federal judge blocking the entire transaction.”
“The merger would also enable the merged company to impede disruptive competition from online video distributors, competition that has allowed consumers greater choices at cheaper prices,” Delrahim further explained. As noted in the complaint, AT&T/DirecTV describes the traditional, big bundle pay-TV model as a “cash cow” and “the golden goose.” If permitted to merge, AT&T/DirecTV/Time Warner would have the incentive and ability to charge more for Time Warner’s popular networks and take other actions to discourage future competitors from entering the marketplace altogether. For example, the merged firm would likely use its control of Time Warner’s programming, which is important for emerging online video distributors, to hinder those innovative distributors. Indeed, a senior Time Warner executive has stated that they have leverage over an online video distributor, whose offering would be “[expletive] without Turner.” That leverage would only increase if the merger were allowed to proceed.
AT&T Inc. is a Delaware corporation headquartered in Dallas, Texas. In 2016, the company posted revenues of more than $163 billion dollars, making it the largest telecommunications company in the world. AT&T is also the country’s largest Multichannel Video Programming Distributor (MVPD), with more than 25 million subscribers. It has three pay-TV offerings: (1) DirecTV, a satellite-based product with almost 21 million subscribers that it acquired through a merger in 2015; (2) U-Verse, a product which uses the local AT&T fiber optic and copper network and has almost 4 million subscribers; and (3) DirecTV Now, its new online video product with almost 800,000 subscribers. It descends from the AT&T that was established in the nineteenth century and which maintained a monopoly in the provision of local telephone services until 1982, when it agreed to divest the portions of its business relating to local telephone services to settle an antitrust lawsuit filed by the Department of Justice. In 2011, AT&T attempted to purchase T-Mobile, but abandoned the transaction after the Department of Justice filed suit alleging that the merger violated the antitrust laws.
Time Warner, Inc. is a Delaware corporation headquartered in New York, New York. In 2016, its posted revenue was $29.3 billion. As of 2016, according to Time Warner, its most popular networks reach over 90 million households—of the nearly 100 million households that subscribe to traditional subscription television.
Justice Department Awards More than $3 Million to Hire Community Policing Officers in the Western District of TexasRead the Press Release
United States Attorney Richard L. Durbin, Jr., today announced $3,125,000 in grant funding through the Department of Justice’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). These funds have been awarded to the San Antonio Police Department and will allow for the hiring of 25 additional full-time law enforcement officers. CHP provides grant funding directly to state, local, and tribal law enforcement agencies to support the hiring of additional law enforcement officers, for three years, to address specific crime problems utilizing community policing strategies.
“Community policing is an effective tool for reducing violent crime in our neighborhoods,” said U.S. Attorney Richard L. Durbin, Jr. “With this grant, an important partner agency of ours will be able to hire and train additional officers to enhance public safety in our community.”
Earlier today, Attorney General Jeff Sessions announced that 179 law enforcement agencies across the nation were awarded $98,495,397 through the COPS Office’s CHP funding program. These awards will allow for the hiring of 802 additional full-time law enforcement officers.
The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
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