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10 January 2018
Eagle Butte Man Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Nevin Thomas Joaquin, age 29, was indicted on December 12, 2017. He appeared before U.S. Magistrate Court Judge Daneta Wollmann on December 14, 2017, and pled not guilty to the Indictment.
The maximum penalties upon conviction are life in prison, a $10,000,000 fine, a lifetime of supervised release, forfeiture of firearms, ammunition, and U.S. currency, and a special assessment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 1, 2013, and December 12, 2017, Joaquin knowingly and intentionally conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. The Indictment further alleges that on April 1, 2016, and February 18, 2016, Joaquin unlawfully possessed firearms.
The charges are merely accusations and Joaquin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Joaquin was ordered to be detained. A trial date has been set for February 20, 2018.
Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Worcester for passport fraud.
Adolfo Santana Gonzalez, 31, was sentenced by U.S. District Court Judge Timothy S. Hillman to 366 days in prison. Santana Gonzalez will be subject to deportation upon completion of his sentence. In October 2017, Santana Gonzalez pleaded guilty to one count of misuse of a Social Security number and one count of making a false statement in an application for a United States passport.
In November 2016, Santana Gonzalez, using the identification and Social Security number assigned to another individual, submitted an application for a U.S. passport at a U.S. Post Office in Worcester in that individual’s name.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. U.S. Customs and Border Protection provided assistance with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON – A Dominican national previously charged with passport fraud, pleaded guilty and was sentenced yesterday in federal court in Boston.
Luis Hidalgo-Jimenez, 45, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of passport fraud before U.S. Senior District Court Judge Rya W. Zobel, who sentenced Hidalgo-Jimenez to a period of time served. Hidalgo-Jimenez was arrested on Nov. 9, 2017, and has been in federal custody since that time.
On Feb. 20, 2009, Hidalgo-Jimenez submitted an application for a United States passport at a post office in Lawrence using the name and identifying information of a United States citizen. In support of the passport application, Hidalgo-Jimenez submitted a Connecticut driver’s license with his photograph along with the name and identifying information of another person. He also submitted a copy of the other person’s birth certificate, which was issued in Puerto Rico. Federal officials noticed evidence of fraud when reviewing the passport application and supporting documents. When Hidalgo-Jimenez was interviewed by federal law enforcement, he admitted to applying for the passport using the name and identifying information of a United States citizen.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Dental Management Company Benevis and its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
WASHINGTON – The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
“The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said John H. Durham, U.S. Attorney for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. Four of the cases are currently pending in the District of Connecticut and one is pending in the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
In the District of Connecticut, the investigation was handled by Assistant U.S. Attorney Richard M. Molot.
Dental Management Company Benevis and its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
WASHINGTON – The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
"The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said U.S. Attorney John H. Durham for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. These cases are currently pending in the District of Connecticut and the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Dental Management Company Benevis and Its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
“The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said U.S. Attorney John H. Durham for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. These cases are currently pending in the District of Connecticut and the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Debt Collection Company Employee Sentenced to Four Years in Prison for Aggravated Identity Theft and Bank FraudRead the Press Release
CHARLOTTE, N.C. – A debt collection company employee was sentenced yesterday to four years in prison for aggravated identity theft and bank fraud, involving a scheme to steal the personally identifiable information of local residents to obtain over $200,000 worth of new credit cards and a car loan, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Max O. Cogburn, Jr. ordered Justin Frank Pettway, 30, of Charlotte, to serve five years under court supervision and to pay $226,517 in restitution to four major banks defrauded by Pettway’s identity fraud scheme.
David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.
According to the indictment, information contained in court filings, and court proceedings, from late 2015 to 2016, Pettway was employed by a South Carolina-based debt collection company. Through his employment, Pettway was able to use a national company’s Internet service that provides debt collection companies with computer and smartphone access to numerous public and proprietary databases containing individuals’ extensive personally identifiable information (PII). That information, which includes names, current and former residential addresses, social security numbers, dates of birth, telephone numbers and other historical and current information, is typically required to apply for new credit cards and loans.
Pettway unlawfully used the Internet service to input the residential addresses of local residents and steal their most current identity information. Pettway then used the stolen identity information to file fraudulent applications for loans and credit cards over the Internet and by telephone in the names of the identity theft victims.
Court documents show that once the defrauded banks notified Pettway that approved credit cards had been placed in the mail, Pettway drove to the identity theft victims’ residences, stole the issued credit cards from the victims’ mailboxes, and then used the credit cards until they were disabled by the banks. Typically, the identity theft victims did not learn of the new unauthorized credit cards issued in their names until they received subsequent credit card billing statements in the mail.
According to court records, Pettway charged $226,517 to the unauthorized credit cards to obtain cash from ATMs and goods and services from merchants. Pettway also purchased a Corvette from an out-of-state car dealer using a $58,000 car loan obtained in the name of an identity theft victim.
Pettway is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Postal Inspection Service in Charlotte and the Charlotte Mecklenburg Police Department, and noted that the case is the result of the Charlotte Financial Crimes Task Force (CFCTF). The task force was formed in early 2016 by the U.S. Postal Inspection Service and currently comprises over 25 local, state and federal law enforcement agencies located in the Western District of North Carolina. The goal of the taskforce is to focus on the identification and development of financial fraud investigations in the Charlotte area.
Assistant U.S. Attorney Thomas O’Malley of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Danville Man Sentenced to 61 Months in Prison for Student Loan FraudRead the Press Release
Danville, VIRGINIA – A Danville man, who obtained the identities of individuals in the Danville and Martinsville regions in order to apply for fraudulent student loans in their names to steal money from lenders, was sentenced yesterday in the United States District Court in Danville for a variety of federal charges, United States Attorney Rick A. Mountcastle announced.
James Willie Waller Jr., 29, was sentenced yesterday in District Court to 61 months in prison and ordered to pay $117,000 in restitution. Waller previously pleaded guilty to one count of student loan fraud, one count of wire fraud and two counts of aggravated identity theft.
According to evidence presented at previous hearings by Assistant United States Attorney Donald R. Wolthuis and Special Assistant United States Attorney Kari Munro, Waller devised a scheme in which he obtained the personally identifying information (PII) of individuals in the Danville and Martinsville regions of Virginia. The defendant used the obtained PII to apply for student loans to online colleges and universities, without the consent of those whose information he obtained.
Waller fraudulently applied for student financially aide and enrolled in online courses using the PII he procured. The U.S. Department of Education then sent grant and loan monies to the online schools to cover tuition and living expenses. The schools, in turn, caused debit cards to be issued in the names of the fictitious students. The debit cards were directed to a variety of mailing addresses throughout Danville and Martinsville, as orchestrated by Waller. Waller then used the cards for his own personal use.
In all, Waller received more than $117,000 in money to which he was not entitled.
The investigation of the case was conducted by Virginia State Police, The Department of Education – Office of the Inspector General and the United States Postal Inspection Service. Assistant United States Attorney Donald R. Wolthuis and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Couple Dealing Methamphetamine in Monroe & Houston Counties Each Receive More Than Twelve Years in Federal PrisonRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Stayce Crystal Dempsey, age 34, of Warner Robins, Georgia, was sentenced to 220 months (18 years and four months) imprisonment for distribution of methamphetamine, and Charles Nicholas Zammit, age 28, of Perry, Georgia, was sentenced to 150 months (12 years and six months) imprisonment for possession with intent to distribute methamphetamine by United States District Court Judge Marc T. Treadwell in Macon, Georgia on January 10, 2018.
In their respective plea agreements, Ms. Dempsey and Mr. Zammit admitted to driving together to several locations in Monroe and Houston counties to sell methamphetamine to various individuals. Between April and May of 2016, the couple was responsible for possessing and distributing more than 330 grams, that is approximately 12 or more ounces, of methamphetamine with a street value of more than $9,000.00.
Prior to entering pleas in this case, Ms. Dempsey and Mr. Zammit went on the run and were apprehended by local law enforcement in Jackson County, North Carolina while driving a rental truck from U-Haul. At the time of their apprehension, both defendants gave false names and were found in possession of a glass smoking pipe with methamphetamine residue on it. They were subsequently taken into custody by the United States Marshal Service.
Both Ms. Dempsey and Mr. Zammit had been convicted of drug crimes in the state of Georgia prior to being indicted in the present federal case. After serving their time in federal prison, where there is no parole, each defendant will also be required to serve an additional term of three years of supervised release under the supervision of a United States probation officer.
“The actions of Ms. Dempsey and Mr. Zammit demonstrate their reckless disregard for the rule of law in exchange for the thrill and greed of selling drugs in our local communities. Their desperation for momentary financial gain and inability to accept the consequences of their actions led them to foolishly go on the run from the United States government. The actions of state and federal law enforcement working together help rid our local communities of the scourge dealers like these cause by distributing drugs in and around neighborhoods throughout middle Georgia. This couple will now spend more than a decade in prison thanks to those efforts.”
This case was investigated by the United States Drug Enforcement Administration and the Georgia Bureau of Investigation with additional assistance from the Monroe County Sheriff’s Office. Assistant United States Attorney C. Shanelle Booker prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Connecticut Man Sentenced to 1 Year in Federal Prison for Conspiracy and BriberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Theodore D. Chuang sentenced Eugene Ostrovsky, age 57, of Stamford, Connecticut to a split sentence of 6 months imprisonment followed by two years of supervised release, the first 6 months of which are to be served on home confinement, for conspiracy to bribe a public official. Judge Chuang also ordered Ostrovsky to pay a $5000 fine.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Director in Charge Andrew Vale of the Federal Bureau of Investigation, Washington Field Office; and Deputy Inspector General for Investigations John Dupuy of the Department of Energy, Office of Inspector of General.
According to his plea agreement, Ostrovsky was the vice president and 20% owner of a metallurgical research company located in Long Island City, New York. Between August 2014 and May 2015, Ostrovsky and his co conspirators entered into what they believed to be a $3,400,000 Department of Energy ("DOE")-funded research contract. During the course of negotiating that contract, Ostrovsky negotiated the specifics of a bribe to be paid to a public official then working for the Department of Energy. In May 2015, Ostrovsky and the co-conspirators finalized a total of $80,000 in bribe money, to be paid in cash to the DOE employee, in installments over the duration of the contract.
Three other defendants in this and a related scheme Grigory Trosman, age 78, of Damascus, Maryland, Anatoly Samgorodsky, age 65, of Sarasota, Florida, and Anatoly Fedorovsky, age 57, of Fair Lawn, New Jersey, have pleaded guilty and have been sentenced. Trosman was sentenced to 18 months in prison, followed by six months of home-confinement and three years of supervised release. Samgorodsky was sentenced to 18 months, 1 day in federal prison followed by one year of supervised release and Fedorovsky was sentenced to 12 months in federal prison followed by one year of supervised release. Samgorodsky was also ordered to pay a $25,000 fine and $70,000 in restitution; Fedorovsky was ordered to pay a $15,000 fine and was ordered to forfeit $7,000, and Trosman was ordered to pay a $75,000 fine and $469,287 in restitution.
Acting United States Attorney Stephen M. Schenning commended the FBI and the DOE Office of Inspector General for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case.
Columbia Man Sentenced for Failing to Register as Sex OffenderRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Kerwin Eugene Brown, age 39, of Columbia, was sentenced to three years in jail for Failure to Register as a Sex Offender, a violation of Title 18, United States Code, § 2250(a). Chief United States District Judge Terry L. Wooten, of Columbia, presided.
Evidence presented at the change of plea hearing established that on April 12, 2005, Brown pled guilty to Assault and Battery of a High and Aggravated Nature in the Richland County Court of General Sessions. During the plea colloquy, the judge required that Brown register as a sex offender. He was then sentenced to eight years in prison.
Brown moved to New York in 2013 and came to the attention of the FBI for unrelated activities. Agents determined that Brown had been living in New York for at least six months and had not registered as a sex offender.
When FBI agents interviewed Brown on November 11, 2016, Brown indicated he moved to New York to pursue a music career. He was living in the Trinidadian community in Queens and Brooklyn and was working construction and carpentry. He acknowledged registering as a sex offender in April 2010 and through 2013, but he stopped when he moved to New York.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office prosecuted the case.
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Citizen of Mexico Charged with Illegally Re-entering U.S. after DeportationRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on January 9, named Pedro Omar Martinez-Alba, age 30, of Mexico, as the sole defendant.
According to the indictment presented to the court, Pedro Omar Martinez-Alba, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on January 23, 2014 and November 24, 2015. Pedro Omar Martinez-Alba was found to be illegally present in Westmoreland County, on April 12, 2017.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Citizen of Ghana Charged with Assaulting Federal OfficersRead 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 Nana Dwomah Yeboah, 34, a citizen of the Republic of Ghana, was arrested and charged by criminal complaint with assaulting and resisting federal law enforcement officers and possessing a controlled substance with intent to distribute. The charges carry a maximum penalty of eight years in prison and a fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, on the morning of December 24, 2017, Customs and Border Protection Officers were conducting a routine patrol of the Greyhound bus station on Cumberland Street in Rochester. Officers observed the defendant enter the bus station, place a package on a bench in the lobby area, and exit the station, leaving the package unattended. After several minutes, the officers searched the abandoned package to ensure that it did not pose a threat to the public. Inside, the officers discovered a quantity of marijuana that appeared to be packaged for sale. After several minutes, Yeboah returned to the area and was questioned by the officers, who quickly determined that he was not a U.S. Citizen. As officers attempted to detain and further identify the defendant, he fled the station, leading the officers on a short chase. Yeboah was ultimately apprehended, but proceeded to fight the officers for several minutes, causing one of the officers to suffer facial injuries that required treatment at Rochester General Hospital.
The defendant, who made an initial appearance before U.S. Magistrate Judge Jonathan Feldman, was held in custody pending a detention hearing scheduled for January 16, 2018.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, with assistance from the Rochester Police Department, under the direction of Chief Michael Ciminelli.
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.
Choctaw Woman Sentenced for Assault with a Deadly WeaponRead the Press Release
Jackson, Miss. – Ida Mae Sam, 56, a member of the Mississippi Band of Choctaw Indians, was sentenced Tuesday by U.S. District Judge David C. Bramlette III, to serve 68 months in federal prison, followed by three years of supervised release, for assaulting another Choctaw Indian with a dangerous weapon and causing serious bodily injury, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze. Sam was also ordered to pay a $1,500 fine.
On April 25, 2015, Ida Mae Sam invited the victim and others to her residence located in the Pearl River Community on the Choctaw Indian Reservation. At some point during the day, Ida Mae Sam became involved in an argument with her boyfriend, and then with the boyfriend of the victim. She then went into another room, returned with a knife and stabbed the victim multiple times. The victim suffered large cuts and significant blood loss.
On April 18, 2017, a federal grand jury indicted Sam in a two-count indictment charging her with assault of another person with a dangerous weapon and assault causing serious bodily injury. A jury trial was held in Jackson, Mississippi, before U.S. District Judge David C. Bramlette III from October 30, 2017 to October 31, 2017. On October 31, 2017, the jury found Sam guilty on all counts of the indictment.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It was prosecuted by Assistant United States Attorneys Keesha D. Middleton and Erin Chalk.
Chicago, Illinios Men Sentenced in Heroin ConspiracyRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announces that two Chicago, Illinois, men convicted of Conspiracy to Distribute Heroin were sentenced on January 4, 2018, by U.S. District Judge Karen E. Schreier.
Clifton Curtis Odie, age 42, was sentenced to 240 months in custody and a $100 special assessment to the Federal Crime Victims Fund. Robert Andrew Lockhart, age 48, was sentenced to 107 months in custody and a $100 special assessment to the Federal Crime Victims Fund. Co-conspirators Raleigh Dee Thomas, age 26, and Stephen Nathaniel Harris, age 38, were each sentenced to 60 months in custody by Judge Schreier in October of 2017.
An indictment was issued against the group for Conspiracy to Distribute Heroin by a federal grand jury on February 7, 2017. All four pled guilty to the charge in 2017.
Starting in 2014, Odie and his associates brought over one kilogram of heroin to Sioux Falls from Chicago and distributed the heroin, sometimes trading heroin for firearms.
This case was investigated by the Drug Enforcement Administration and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Cherry Creek Woman Sentenced for Concealing a Person from ArrestRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that a Cherry Creek, South Dakota, woman convicted of Concealing a Person from Arrest was sentenced on January 3, 2018, by U.S. District Judge Roberto A. Lange.
September Waloke, age 52, was sentenced to 3 months in prison, followed by 1 year of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Waloke was indicted by a federal grand jury on November 9, 2016, for Concealing a Person from Arrest. She was found guilty on September 14, 2017, following a three-day jury trial.
The evidence produced at trial indicated the following: In the early morning hours of October 20, 2016, Deputy U.S. Marshals went to the Condon Waloke residence in Cherry Creek in an attempt to locate Tyson LeCompte, a/k/a Tyson Garreau, who had been issued a federal arrest warrant for failing to return to the Hughes County jail, following his release on a one-day furlough the day before. When LeCompte was not found in the residence, the deputies advised Condon and Waloke that they could not conceal, harbor, or assist LeCompte in any manner, and that they needed to contact law enforcement if they came into contact with him.
Later that same morning, LeCompte came to the Condon Waloke residence and stayed there throughout the day. Around 5:00 p.m. that evening, Cheyenne River Sioux Tribal Police went to the residence and found LeCompte hiding in one of the bedrooms under a bed. The jury found that Waloke knew that LeCompte was in the home and intentionally harbored and concealed LeCompte to prevent his arrest.
This case was investigated by the U.S. Marshals Service, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Waloke was ordered to self-report to the custody of the U.S. Marshals Service on January 5, 2018, to begin serving her sentence.
Charleston man sentenced to federal prison for escapeRead the Press Release
CHARLESTON, W.Va. – A Charleston man who walked away from a halfway house without permission was sentenced today to six months in federal prison, announced United States Attorney Mike Stuart. Jalin McArn, 23, previously pleaded guilty to escape.
McArn was on supervised release because of a previous conviction for distribution of heroin. He was incarcerated at the Federal Correctional Institution at Milan in Michigan until August 2017, where he was serving a 10-month sentence for violation of his supervised release. He was then transferred to Dismas Charities, a halfway house in St. Albans, to finish his prison term. McArn admitted that he walked away from Dismas in the early morning hours of September 25, 2017. McArn further admitted that he did not have permission or authority to be absent. On September 26, 2017, an arrest warrant was issued for McArn and he turned himself in to authorities on October 10, 2017.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
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Centre Hall Man Sentenced to 33 Months’ Imprisonment for Explosives and Firearms OffensesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Malachy Mannion sentenced James Woodring, age 51, Centre Hall, Pennsylvania, to 33 months’ imprisonment and three years of supervised release, for manufacturing explosives and for being a felon in possession of firearms.
According to United States Attorney David J. Freed, James Woodring pleaded guilty to manufacturing explosives after he purchased and transported commercial grade fireworks to his residence, modified them to increase their power and volatility, and sold them, all without a license to do so. The activities ended on May 18, 2016, when an explosion occurred at Woodring’s Centre Hall residence after Woodring and his wife, Christina Woodring, accidentally ignited one of the devices.
James Woodring also pleaded guilty to possessing firearms, despite a prohibition triggered by his prior 2011 felony conviction for distributing explosive. The firearms, which were seized and forfeited by the government, along with several hundred rounds of ammunition and $3,000, were:
- .380 caliber Smith and Wesson semi-automatic pistol, which was reported stolen;
- 12-gauge Mossberg Maverick shotgun;
- 30x.06 Remington Sportsman 76 pump rifle; and a
- .223 caliber New Frontier LW-15 rifle, which is a semiautomatic firearm that is capable of accepting a large capacity magazine.
In pronouncing the sentence, Judge Mannion highlighted James Woodring’s prior federal conviction for dealing in explosives without a license, and the danger he created for himself, for his family, and for emergency personnel by manufacturing homemade explosives. Judge Mannion also focused on James Woodring’s statements to an undercover law enforcement official in which Woodring explained how to place effectively the explosives to damage an automobile.
Christina Woodring previously pleaded guilty to conspiring to manufacture and sell explosives, and was sentenced in April 2017 to home confinement and probation.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Centre Hall Police Department, and the Springettsbury Township Police Department. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Cambridge Hedge Fund Manager Pleads Guilty to Investment Fraud SchemeRead the Press Release
BOSTON – The owner of two Cambridge-based investment advisory firms pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud hedge fund investors.
Yasuna J. Murakami, 44, pleaded guilty to wire fraud and is scheduled to be sentenced on April 8, 2018 before U.S. Senior District Court Judge Douglas P. Woodlock. In May 2017, Murakami was charged and arrested.
Murakami was a managing member of MC2 Capital Management LLC and MC2 Canada Capital Management LLC – investment advisory firms through which he established and managed three hedge funds: the MC2 Capital Partners Fund, MC2 Capital Value Fund, and MC2 Capital Canadian Opportunities Fund. Between 2011 and 2016, Murakami fraudulently diverted millions of dollars of investor funds to business and personal accounts that he controlled. He used the money to pay for lavish personal expenses such as a luxury sports car, international travel, and payments to personal credit cards and high-end department stores. Murakami used new investor contributions to make Ponzi scheme-like payments to earlier investors who had made redemption requests and to place investments in his own name.
As part of the fraud, Murakami withheld material information regarding the management of the MC2 Canadian Opportunities Fund and provided investors with falsified account statements and tax documentation in an effort to lull them into believing that their investments were safe.
In a parallel action, the Securities and Exchange Commission (SEC) announced securities fraud charges against Murakami and his hedge fund advisory firms in May 2017. The SEC also filed charges against Murakami’s former business partner, Avi Chiat, in connection with the scheme. In January 2017, the Massachusetts Securities Division filed civil fraud charges against Murakami for the same conduct.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Economic Crimes Unit, is prosecuting the case.
California Man Sentenced to 30 Months in Prison for Role in Heroin Distribution SchemeRead the Press Release
NEWARK, N.J. – A California man who swallowed plastic bags containing approximately 600 grams of heroin and later admitted that he possessed the drug with intent to distribute it was sentenced today to 30 months in prison, U.S. Attorney Craig Carpenito announced.
Omar Vasques, 24, of Bakersfield, California, previously pleaded guilty before U.S. District Court Judge John Michael Vazquez to an information charging him with one count of possession of heroin with intent to distribute and distribution of heroin. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Sept. 15, 2016, Vasques landed at Newark Liberty International Airport on a commercial flight after having swallowed 81 “pellets” of heroin wrapped in plastic baggies. He intended to distribute the heroin after his arrival but was apprehended by law enforcement authorities, who escorted Vasques to a hospital. Vasques underwent emergency surgery after hospital staff discovered that one of the baggies had ruptured.
In addition to the prison term, Judge Vazquez sentenced Vasques to three years of supervised release.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie Nickerson, in Newark for the investigation that led to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Organized Crime/Drug Enforcement Task Force Unit.Defense Counsel: Anthony C. Mack Esq., Newark
Broward County Pharmacy Agrees to Pay the United States $350,000 to Settle Allegations That it Submitted Fraudulent Claims to TRICARERead the Press Release
Healthy Meds Pharmacy Corp., a pharmacy located in Hallandale, Florida has paid the United States $350,000, to settle allegations under the False Claims Act for filling prescriptions in violation of TRICARE’s policy on telemedicine.
Benjamin Greenberg, United States Attorney for the Southern District of Florida, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), made the announcement.
The settlement results from an investigation initiated by the DCIS into Healthy Meds’ alleged violations of TRICARE’s policy on telemedicine. The United States alleged that between February 2015 and May 2015, Healthy Meds engaged in unsolicited calls to TRICARE beneficiaries, provided medically unnecessary compound medications to beneficiaries, and knowingly filled prescriptions from doctors who did not meet or properly consult with TRICARE beneficiaries. TRICARE is the Department of Defense program that provides health care benefits to active duty service members, retired service members, and their dependents.
“This settlement shows our continued resolve to pursue providers who improperly provide prescription drugs resulting in significantly increased costs to taxpayers,” said Benjamin Greenberg, United States Attorney for the Southern District of Florida.
Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service (DCIS), said, “The DoD TRICARE Program relies on health care professionals to provide the best care and services available to our military members and their families, while preserving precious taxpayer dollars. This settlement demonstrates the effectiveness of DCIS investigations to ensure that medical providers conduct business with integrity and in full compliance with Federal laws.”
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Southern District of Florida and DCIS. The case was investigated and the settlement negotiated by Assistant U.S. Attorney John C. Spaccarotella. The claims settled by the lawsuit are allegations only, and there has been no determination of liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Barre Man Pending Sentencing on Federal Gun Charges Arrested for Trading Heroin for A FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Eric Goldstein-Purdue, 26, of Barre, VT made his initial appearance on January 8, 2018 in the United States District Court in Burlington, following an arrest for possessing a firearm in furtherance of a drug trafficking crime. At the time of his arrest, Goldstein-Purdue was awaiting sentencing in U.S. District Court on charges that he possessed a firearm as a convicted felon. U.S. Magistrate Judge John M. Conroy detained Goldstein-Purdue pending trial.
According to court documents, in November 2017, Goldstein-Purdue pleaded guilty to being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). Goldstein-Purdue was released pending sentencing which was scheduled for March 2018. In January 2018, while on conditions of release, Goldstein-Purdue began communicating with someone who was working as an undercover law enforcement agent with ATF. Goldstein-Purdue and the undercover agent discussed Goldstein-Purdue’s desire to obtain a firearm and Goldstein-Purdue said he could provide the agent heroin in exchange for the firearm. On January 5, 2018, Goldstein-Purdue met with the undercover agent, gave the agent approximately 40 bags of heroin and the officer gave Goldstein-Purdue a firearm. Immediately after the exchange, ATF agents arrested Goldstein-Purdue and recovered the firearm.
The United States Attorney, Christina E. Nolan, emphasized that the charge against Goldstein-Purdue is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, the defendant faces a sentence of not less than five years of imprisonment and up to life imprisonment, and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
U.S. Attorney Nolan commended the joint effort of state and federal law enforcement, adding “we will continue to make it a top priority to prosecute violent offenders and those who use guns in connection with drug trafficking, especially, as in this case, when such conduct is combined with troubling recidivism.”
Special Agent in Charge of the ATF Boston Field Division Mickey Leadingham stated: “This arrest demonstrates the outstanding partnership between ATF, Vermont State Police, Vermont State Drug Task Force and the United States Marshals Service, as well as the commitment we share to work together to interdict illegal firearms & narcotics and the violent criminals that compromise the safety of our communities.”
Goldstein-Purdue is represented by the Elizabeth Quinn of the Federal Public Defender’s office. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.
Baltimore woman admits to money launderingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Baltimore, Maryland woman has admitted today to money laundering, United States Attorney Bill Powell announced.
Stephanie Edmonds, age 31, pled guilty to one count of “Conspiracy to Launder Monetary Instruments.” Edmonds admitted to conspiring with others to conduct unlawful financial transactions in Berkeley and Jefferson Counties and elsewhere from August 2015 to December 2016.
Edmonds faces up to 20 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Elizabeth D. Grant, also with the West Virginia Attorney General’s Office, are prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Attorney General Sessions Announces Appointment of James McHenry as Director of the Executive Office for Immigration ReviewRead the Press Release
Attorney General Jeff Sessions today announced the appointment of James McHenry as the permanent Director of the Executive Office for Immigration Review (EOIR) at the Department of Justice. McHenry has served as the Acting Director of EOIR since May 30, 2017.
“I am pleased to announce the appointment of James as the permanent Director of EOIR. Since his appointment as Acting Director last May, James has led EOIR in restoring its commitment to the timely and efficient adjudication of immigration cases, and in identifying additional common-sense improvements to the immigration court system,” said Attorney General Sessions. “James is an exceptionally talented and capable leader, and I am confident that he will continue to ensure that EOIR and its components will adjudicate cases in a manner that serves the national interest.”
“Under Attorney General Sessions’ leadership, EOIR has implemented a series of sensible reforms that aim to reduce the pending caseload by realigning the agency towards completing cases, increasing both productivity and capacity, and changing policies that lead to inefficiencies and waste,” said EOIR Director McHenry. “I look forward to building on the success of last year and further realizing our goal of cutting the pending caseload in half by 2020.”
EOIR was created on Jan. 9, 1983, through an internal department reorganization which combined the Board of Immigration Appeals (BIA) with the immigration judge function previously performed by the former Immigration and Naturalization Service (INS) (now part of the Department of Homeland Security). The Office of the Chief Administrative Hearing Officer (OCAHO) was added in 1987.
EOIR is headed by a director who is responsible for the supervision of the Chairman of BIA, the Chief Immigration Judge, the Chief Administrative Hearing Officer and all agency personnel. EOIR has more than 2,100 employees in its 59 immigration courts nationwide, at the BIA, at OCAHO, and at EOIR headquarters in Falls Church, Virginia.
Director McHenry has previously served in the Executive Office for Immigration Review; he first joined the agency in 2003 through the Attorney General’s Honors Program and returned to the agency in 2016, when he was appointed as an administrative law judge (ALJ) for EOIR OCAHO.
Last year, McHenry served as a Deputy Associate Attorney General working on a variety of immigration-related litigation matters and overseeing multiple components reporting to the Office of the Associate Attorney General. From 2014 to 2016, he served as an ALJ for the Office of Disability Adjudication and Review in the Social Security Administration. Prior to that, he worked for the Office of the Principal Legal Advisor (OPLA), Immigration and Customs Enforcement, Department of Homeland Security as an Assistant Chief Counsel and, later, as a Senior Attorney where he served as a lead attorney for national security, denaturalization, gang cases, anti-human trafficking operations, and worksite enforcement matters. He also served a detail as a Special Assistant United States Attorney for the Criminal Division, U.S. Attorney’s Office, Northern District of Georgia.
Director McHenry earned a Bachelor of Science from the Georgetown University School of Foreign Service, a Master of Arts in political science from the Vanderbilt University Graduate School, and a Juris Doctor from the Vanderbilt University Law School.
Armed Meth Dealer Sentenced on Gun and Drug ChargesRead the Press Release
United States Attorney Richard Moore of the Southern District of Alabama announced that Robbie Lyn Pierce, 49, of Mobile, was sentenced in federal court on charges involving his illegal possession of firearms and his possession with intent to distribute methamphetamine. Court documents reflect that Pierce sold meth ice to a confidential informant working with the Mobile County Sheriff’s Office at his west Mobile residence. When sheriff’s deputies returned to the property with a search warrant, they found additional meth ice and a gun in the shed where the drug deals took place. Pierce pled guilty to both federal charges in June of 2017.
United States District Court Judge Kristi K. Dubose sentenced Pierce to 15 years imprisonment, consisting of the statutory mandatory penalty of 10 years on the drug count and the statutory mandatory consecutive penalty of 5 years on the gun count. Pierce’s prison sentence will be followed by an eight-year term of supervised release. Pierce will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, but the judge ordered that Pierce pay $200 special mandatory assessments.
The case was investigated by the Department of Homeland Security Investigations and the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Arizona Man Sentenced to 248 Months in Federal Prison for Firearm and Drug OffensesRead the Press Release
AMARILLO, Texas — Arturo Salazar, Jr., 41, was sentenced today by U.S. District Judge Sidney A. Fitzwater to serve a total of 248 months in federal prison following his guilty plea in September 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Judge Fitzwater ordered Salazar to report to the Bureau of Prisons on February 27, 2018.
According to the plea agreement factual resume filed in the case, on November 4, 2016, a Texas Department of Public Safety Trooper stopped a vehicle for speeding. The driver of the vehicle was identified as Salazar. The vehicle was also occupied by a female passenger. The Trooper noticed several indicators of possible criminal activity and Salazar and the female passenger provided the Trooper with conflicting stories of where they were traveling to and the reason for their trip. While waiting for a K9 unit to arrive to search the vehicle, Salazar admitted that there was a small amount of methamphetamine and a pipe on the driver’s side of his vehicle and methamphetamine in the trunk of the vehicle. Salazar also admitted he was going to deliver the methamphetamine to Springfield, Missouri.
A search of the vehicle revealed a small baggie of methamphetamine and the pipe in the driver’s side door, 24 bundles of suspected methamphetamine, with a net weight of 10,757 grams with a purity level of approximately 95 percent, in the trunk of the vehicle and a loaded firearm.
The Texas Department of Public Safety and Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor prosecuted.
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Albuquerque Woman Pleads Guilty to Federal Conspiracy and Bank Fraud Charges Arising Out of Mail Theft SchemeRead the Press Release
ALBUQUERQUE – Yarelys Marquez, 19, of Albuquerque, N.M., pled guilty today in federal court to conspiracy and bank fraud charges arising out of a scheme to steal mail from U.S. Postal Service (USPS) mail collection boxes at U.S. Post Offices in the Albuquerque area in July and Aug. 2017.
U.S. Postal Inspectors arrested Marquez and co-defendants Jorge R. Cabrera, 20, Hector Lau, 21, and Fernando Cairo-Rosell, 29, all of Albuquerque, on Aug. 30, 2017, based on criminal complaints charging them with theft of mail and bank fraud charges. The criminal complaint alleged that in July and Aug. 2017, mail collection boxes at USPS stations in Albuquerque repeatedly were broken into and mail was stolen. The U.S. Postal Inspection Service initiated an investigation into the scheme after receiving complaints that checks deposited in the mail collection boxes had been stolen, altered and deposited into accounts allegedly held by the defendants.
The four defendants subsequently were charged with conspiracy and nine counts of bank fraud in a ten-count indictment, which was filed on Sept. 21, 2017. According to the indictment, the four defendants participated in a conspiracy to commit bank fraud that began in July 2017 and continued until Aug. 2017, and operated in Bernalillo County, N.M. The indictment also charges the four defendants with committing bank fraud against four credit unions that maintain branches in Albuquerque. The indictment alleges that the defendants conspired to commit bank fraud by stealing checks that had been deposited in U.S. mail depositories, altering the checks, and attempting to pass the checks off as legitimate to banking institutions. The indictment alleges that as part of their bank fraud scheme, the defendants deposited checks, which had been altered to make them payable to members of their conspiracy and in amounts ranging from $500 to $4,754, into bank accounts held by members of the conspiracy.
During today’s proceedings, Marquez pled guilty to conspiracy and one count of bank fraud under a plea agreement with the U.S. Attorney’s Office. In entering the guilty plea, Marquez admitted that from July 10, 2017 through Aug. 9, 2017, she conspired with others to deposit altered checks, which she knew had been stolen from mailboxes throughout Albuquerque, and during the mailbox robberies she acted as a lookout. Marquez further admitted that on July 16, 2017, she deposited a stolen check into another individual’s checking account that she knew had been among the checks stolen from within a mailbox and had their terms re-written without the account holder’s permission.
Cairo-Rosell previously pled guilty on Dec. 4, 2017, to conspiracy and five counts of bank fraud under a plea agreement with the U.S. Attorney’s Office. In entering the guilty plea, Cairo-Rosell admitted that from July 10, 2017 through Aug. 9, 2017, he conspired with others to deposit altered checks, which Cairo-Rosell knew had been stolen from mailboxes throughout Albuquerque. Cairo-Rosell further admitted that on at least four occasions, he allowed his bank account at an Albuquerque-area credit union to be used to deposit checks in exchange for a portion of the check-cashing proceeds.
At sentencing, Marquez and Cairo-Rosell each face a maximum penalty of 30 years in federal prison. Sentencing hearings have yet to be scheduled.
Cabrera and Lau have entered pleas of not guilty to the charges against them and are pending trial. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley.
Akayed Ullah Indicted on Terrorism and Explosives Charges in Connection with the Detonation of a Bomb in New York CityRead the Press Release
Today, a federal grand jury returned a six-count indictment (the Indictment) against Akayed Ullah, 27, of Brooklyn, New York, in connection with Ullah’s detonation and attempted denotation of a bomb in a subway station near the New York Port Authority Bus Terminal in New York City on Dec. 11, 2017. Three people were injured as a result of the detonation. The Indictment charges Ullah with one count of providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; one count of using and attempting to use a weapon of mass destruction; one count of bombing and attempting to bomb a place of public use and a public transportation system; one count of destruction and attempted destruction of property by means of fire or explosives; one count of conducting and attempting to conduct a terrorist attack against a mass transportation system; and one count of using a destructive device during and in furtherance of a crime of violence.
Acting Assistant Attorney General for National Security Dana J. Boente and U.S. Attorney Geoffrey S. Berman of the Southern District of New York made the announcement. The case has been assigned to the Honorable Richard J. Sullivan.
“As alleged in the indictment Akayed Ullah constructed a pipe bomb and detonated it in a mass transit hub in the heart of New York City to terrorize as many people as possible and to bring ISIS-inspired violence to American soil,” said Acting Assistant Attorney General Boente. “Thanks to the tremendous efforts of the law enforcement community, the defendant was safely apprehended at the scene of the attack that injured three people, and will now be held accountable to the fullest extent of the law. The National Security Division remains steadfast in its mission to pursue justice against those who seek to harm our country and our citizens in the name of terrorism.”
“Less than one month ago, during the holiday rush hour, Akayed Ullah allegedly detonated a bomb in a major transit hub of New York City,” said U.S. Attorney Berman. “In selecting this time and place, Ullah’s alleged purpose in the Port Authority bombing was painfully clear: to inflict as much damage as possible, and to strike fear into the hearts of New Yorkers in the name of ISIS. Ullah’s alleged plot failed, and he is now charged with federal terrorism offenses and facing life behind bars.”
Ullah was initially arrested on a Complaint and presented before the Honorable Katharine H. Parker on Dec. 13, 2017. Ullah was ordered detained and has been in federal custody since his arrest. He will be arraigned before Judge Sullivan on Jan. 11, at 3:00 p.m.
As alleged in the Indictment and the Complaint:
Islamic State of Iraq and Al-Sham
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts.
The Dec. 11, 2017 Attack
On Dec. 11, 2017, at approximately 7:20 a.m., Akayed Ullah detonated an improvised explosive device (IED) detonated inside a subway terminal (the Subway Terminal) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the December 11 Attack). Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department (PAPD) located Ullah lying on the ground in the vicinity of the explosion. Surveillance footage captured Ullah walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion.
Ullah was subsequently taken into custody by law enforcement. During the course of Ullah’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the Pipe Bomb). Specifically, law enforcement located, among other items, (i) a nine-volt battery inside Ullah’s pants pocket; (ii) wires connected to the battery and running underneath Ullah’s jacket; (iii) two plastic zip ties underneath Ullah’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip ties, among other items.
After Ullah was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, Ullah stated, among other things, the following:
- Ullah constructed the Pipe Bomb and carried out the December 11 Attack. Ullah was inspired by ISIS to carry out the December 11 Attack, and stated, among other things, “I did it for the Islamic State.”
- Ullah constructed the Pipe Bomb at his residence in Brooklyn (the Residence).
- The Pipe Bomb was composed of a metal pipe, which Ullah filled with explosive material that he created. Ullah used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb. Ullah filled the Pipe Bomb with metal screws, which he believed would cause maximum damage. Ullah used zip ties to secure the Pipe Bomb to his body.
- Ullah carried out the December 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East. One of Ullah’s goals in carrying out the December 11 Attack was to terrorize as many people as possible. He chose to carry out the attack on a work day because he believed that there would be more people.
- Ullah’s radicalization began in at least approximately 2014. Ullah viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands. He began researching how to build IEDs on the Internet approximately one year prior to the attack.
- On the morning of Dec. 11, 2017, shortly before carrying out the attack, Ullah posted a statement on his Facebook account referring to the President of the United States, stating, in substance, “Trump you failed to protect your nation.” Ullah also posted a statement that he believed would be understood by members and supporters of ISIS to convey that Ullah carried out the attack in the name of ISIS.
Items Recovered from Ullah’s Residence
On Dec. 11, 2017, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in Ullah’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”
Three individuals were injured as a result of the December 11 Attack.
* * *
If convicted of the charges in the Indictment, potential maximum sentences could include: (i) 20 years in prison for providing and attempting to provide material support and resources to a designated foreign terrorist organization, namely, ISIS; (ii) life in prison for using and attempting to use a weapon of mass destruction; (iii) life in prison for bombing and attempting to bomb a place of public use and a public transportation system; (iv) a maximum of 20 years in prison and a mandatory minimum sentence of five years for destruction and attempted destruction of property by means of fire or explosives; (v) life in prison for conducting and attempting to conduct a terrorist attack against a mass transportation system; and (vi) a consecutive sentence of 30 years to life in prison for using a destructive device during and in furtherance of a crime of violence. The potential sentences are all related to Ullah’s detonation and attempted detonation of an explosive device in New York City.
The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. The charges in the Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The prosecution is being handled by Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski and George D. Turner of the Southern District of New York, with assistance from Trial Attorney Jerome J. Teresinski of the Counterterrorism Section of the Justice Department’s National Security Division.
Akayed Ullah Indicted on Terrorism and Explosives Charges in Connection with the Detonation of A Bomb in New York CityRead the Press Release
Dana J. Boente, the Acting Assistant Attorney General for National Security, and Geoffrey S. Berman, the U.S. Attorney for the Southern District of New York, announced that a grand jury in the Southern District of New York has returned a six-count indictment (the “Indictment”) against AKAYED ULLAH in connection with ULLAH’s detonation and attempted detonation of a bomb in a subway station near the New York Port Authority Bus Terminal in New York City on December 11, 2017. The Indictment charges ULLAH with one count of providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), one count of using and attempting to use a weapon of mass destruction, one count of bombing and attempting to bomb a place of public use and a public transportation system, one count of destruction and attempted destruction of property by means of fire or explosives, one count of conducting and attempting to conduct a terrorist attack against a mass transportation system, and one count of using a destructive device during and in furtherance of a crime of violence. The case has been assigned to the Honorable Richard J. Sullivan.
ULLAH was initially arrested on a Complaint and presented before the Honorable Katharine H. Parker on December 13, 2017. ULLAH was ordered detained and has been in federal custody since his arrest. He will be arraigned before Judge Sullivan on January 11, 2018, at 3:00 p.m.
U.S. Attorney Geoffrey S. Berman said: “Less than one month ago, during the holiday rush hour, Akayed Ullah allegedly detonated a bomb in a major transit hub of New York City. In selecting this time and place, Ullah’s alleged purpose in the Port Authority bombing was painfully clear: to inflict as much damage as possible, and to strike fear into the hearts of New Yorkers in the name of ISIS. Ullah’s alleged plot failed, and he is now charged with federal terrorism offenses and facing life behind bars.”
Acting Assistant Attorney General Boente said: “As alleged in the indictment Akayed Ullah constructed a pipe bomb and detonated it in a mass transit hub in the heart of New York City to terrorize as many people as possible and to bring ISIS-inspired violence to American soil. Thanks to the tremendous efforts of the law enforcement community, the defendant was safely apprehended at the scene of the attack that injured three people, and will now be held accountable to the fullest extent of the law. The National Security Division remains steadfast in its mission to pursue justice against those who seek to harm our country and our citizens in the name of terrorism.”
As alleged in the Indictment and the Complaint:[1]
Islamic State of Iraq and Al-Sham
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts.
The December 11, 2017 Attack
On December 11, 2017, at approximately 7:20 a.m., AKAYED ULLAH detonated an improvised explosive device (“IED”) detonated inside a subway terminal (the “Subway Terminal”) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the “December 11 Attack”). Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department (“PAPD”) located ULLAH lying on the ground in the vicinity of the explosion. Surveillance footage captured ULLAH walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion. ULLAH was subsequently taken into custody by law enforcement. During the course of ULLAH’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the “Pipe Bomb”). Specifically, law enforcement located, among other items, (i) a nine-volt battery inside ULLAH’s pants pocket; (ii) wires connected to the battery and running underneath ULLAH’s jacket; (iii) two plastic zip ties underneath ULLAH’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip ties, among other items.After ULLAH was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights.
During that interview, ULLAH stated, among other things, the following:
- ULLAH constructed the Pipe Bomb and carried out the December 11 Attack. ULLAH was inspired by ISIS to carry out the December 11 Attack, and stated, among other things, “I did it for the Islamic State.”
- ULLAH constructed the Pipe Bomb at his residence in Brooklyn (“the Residence”).
- The Pipe Bomb was composed of a metal pipe, which ULLAH filled with explosive material that he created. ULLAH used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb. ULLAH filled the Pipe Bomb with metal screws, which he believed would cause maximum damage. ULLAH used zip ties to secure the Pipe Bomb to his body.
- ULLAH carried out the December 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East. One of ULLAH’s goals in carrying out the December 11 Attack was to terrorize as many people as possible. He chose to carry out the attack on a work day because he believed that there would be more people.
- ULLAH’s radicalization began in at least approximately 2014. ULLAH viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands. He began researching how to build IEDs on the Internet approximately one year prior to the attack.
- On the morning of December 11, 2017, shortly before carrying out the attack, ULLAH posted a statement on his Facebook account referring to the President of the United States, stating, in substance, “Trump you failed to protect your nation.” ULLAH also posted a statement that he believed would be understood by members and supporters of ISIS to convey that ULLAH carried out the attack in the name of ISIS.
Items Recovered from ULLAH’s Residence
On December 11, 2017, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in ULLAH’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”
* * *
If convicted of the charges in the Indictment, potential maximum sentences could include: (i) 20 years in prison for providing and attempting to provide material support and resources to a designated foreign terrorist organization, namely, ISIS; (ii) life in prison for using and attempting to use a weapon of mass destruction; (iii) life in prison for bombing and attempting to bomb a place of public use and a public transportation system; (iv) 20 years in prison (maximum) and a mandatory minimum sentence of five years for destruction and attempted destruction of property by means of fire or explosives; (v) life in prison for conducting and attempting to conduct a terrorist attack against a mass transportation system; and (vi) a consecutive sentence of 30 years in prison (to life) for using a destructive device during and in furtherance of a crime of violence. The potential sentences are all related to Ullah’s detonation and attempted detonation of an explosive device in New York City.
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 judge.
Mr. Boente and Mr. Berman praised the outstanding investigative efforts of the FBI, the NYPD, the Department of Homeland Security, Homeland Security Investigations (“HSI”), and the PAPD. ULLAH’s arrest and indictment are the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI, PAPD, and other agencies – and the U.S. Department of Justice’s National Security Division.
The prosecution is being handled by the Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski, and George D. Turner are in charge of the prosecution, with assistance from Trial Attorney Jerome J. Teresinski of the Counterterrorism Section of the Justice Department’s National Security Division.
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 texts of the Indictment and the Complaint, and the descriptions of the Indictment and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
9 January 2018
Winston-Salem Man Sentenced to Federal Prison for Orchestrating Fraudulent Check Cashing SchemeRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, LAMONT DEVORE HAIRSTON, 30, of Winston Salem, North Carolina, was sentenced to serve 41 months in federal prison and 5 years of supervised release following his prior guilty plea to Conspiracy to Commit Bank Fraud. HAIRSTON was also ordered to make restitution to victims.
The Indictment and information provided at the sentencing hearing provided that HAIRSTON was a ringleader in a fraudulent check cashing scheme. According to the charges, HAIRSTON and others acquired stolen mail containing bank account information. HAIRSTON and others used this information to manufacture counterfeit checks using check-writing software and check stock. HAIRSTON then caused various individuals to cash the checks at local merchants, and to return the proceeds to HAIRSTON, who paid the participants a cut of the money for their participation. HAIRSTON was arrested by the Greenville Police Department in February of 2014 in possession of a computer and check stock used in the scheme.
The investigation of this case was conducted by the United States Secret Service, with the assistance of the Greenville Police Department. Assistant United States Attorney William M. Gilmore represented the government.
Wheeling man indicted on extortion chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Wheeling, West Virginia man was indicted today by a grand jury on extortion charges, United States Attorney Bill Powell announced.
Eugene Robert LeClear, age 46, was indicted on one count of “Conspiracy to Commit Extortion” and three counts of “Interstate Communications with the Intent to Extort.” LeClear is accused of conspiring with another to extort more than $14,000 from an individual from October to December 2017 in Ohio County.
LeClear faces up to five years incarceration and a fine of up to $250,000 for the conspiracy count and up to two years incarceration and a fine of up to $250,000 for each additional count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randolph J. Bernard is prosecuting the case on behalf of the government. The Federal Bureau of Investigation is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Ute Tribal Member Pleads Guilty to Voluntary Manslaughter on Uintah and Ouray Tribal LandsRead the Press Release
SALT LAKE CITY – Trent Sowsonicut, age 28, of Ft. Duchesne, Utah, pleaded guilty to voluntary manslaughter Monday afternoon in federal court in Salt Lake City. As a part of the plea agreement, Sowsonicut admitted that he killed L.M., an enrolled member of the Ute Indian Tribe, during a quarrel within the boundaries of the Uintah and Ouray Reservation.
Sowsonicut, who is also a tribal member, admitted that on Aug. 13, 2016, he went to L.M.’s residence to confront L.M. He said he brought a loaded shotgun into the residence and shot L.M. in the leg during a quarrel in L.M.’s bedroom. L.M. died as a result of the gunshot. Sowsonicut admitted he acted recklessly and with extreme disregard for human life when he brought the loaded shotgun into L.M,’s bedroom.
First responders arrived at the victim’s residence in Gusher, Utah, about 1:07 a.m. on Aug. 13, 2016, after receiving a 911 call saying that L.M. was a victim of a shooting at the residence. First responders attempted to stabilize the victim and eventually took him to the hospital. Acting on information provided during the investigation, FBI agents and Uintah County Search and Rescue officers found the loaded shotgun in the river beneath the Randlett Bridge.
A federal grand jury indicted Sowsonicut in January 2017 on charges of second degree murder and use and discharge of a firearm during a crime of violence. He entered his guilty plea to a Felony Information filed Friday charging him with voluntary manslaughter.
The plea agreement includes a stipulated sentence of 78 months in federal prison, to be followed by 36 months of supervised release. The sentence is subject to the approval of the court. U.S. District Judge David Sam set sentencing in the case for March 15, 2018, at 2:30 p.m.
Agents and officers with the FBI, the Bureau of Indian Affairs, and the Ute tribal police participated in the investigation of the case. Assistant U.S. Attorneys Stephen L. Nelson and Michael J. Thorpe of the U.S. Attorney’s Office are prosecuting the case.
U.S. Attorney Carpenito Voices Strong Support for DEA Opioid Abuse ProgramRead the Press Release
NEWARK, N.J. – U.S. Attorney Craig Carpenito pledged the office’s strong support for a Drug Enforcement Administration (DEA) initiative announced in Camden today to address the problem of opioid and heroin abuse in New Jersey.
“The misuse of prescription opioid painkillers, heroin and the synthetic drug fentanyl are wreaking havoc in our communities and destroying thousands of lives,” U.S. Attorney Carpenito said. “The program announced by DEA Special Agent in Charge Valerie Nickerson attacks the epidemic on three fronts: coordinated targeting of drug organizations and gangs, encouraging smarter prescribing practices and use of painkillers, and outreach to affected communities. We will work closely with DEA and all of the ‘DEA 360 Strategy’ partners in this important battle.”
As part of this effort, the District of New Jersey – like all other U.S. Attorney’s Offices in the country – has designated an Opioid Coordinator, who is responsible for facilitating intake of cases involving prescription opioids, heroin, and fentanyl. The coordinator – Assistant U.S. Attorney Erica Liu – is also responsible for convening a task force of federal, state, and local law enforcement to identify opioid cases for federal prosecution, facilitating interdiction efforts, and tailoring the district’s response to the needs of the community. To enhance our efforts and capabilities, Assistant U.S. Attorney Liu is providing legal advice and training to other AUSAs regarding the prosecution of opioid offenses; maintaining a close watch on the advancement of opioid prosecutions in the district; and developing and continually evaluating the effectiveness of the office’s strategy to combat the opioid epidemic.
“Erica was specifically chosen for this assignment because of her unique experience,” U.S. Attorney Carpenito said. “With a Bachelor of Science in Pharmacy and experience as a county and federal prosecutor, she has the bonafides for this job. Erica is passionate about this issue and well-suited for the task.”
In September 2016, the Department of Justice directed each U.S. Attorney to consult with local stakeholders and draft a district-specific strategy to combat the opioid epidemic. The office’s role in the DEA 360 Strategy will be part of that effort.
Two West Virginia physicians and a business partner indicted for illegally distributing drugsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two physicians operating offices in West Virginia, along with a business partner, were indicted by a grand jury today on charges of illegally distributing controlled substances, United States Attorney Bill Powell announced.
Dr. Felix Brizuela, Jr., age 61, of Harrison City, Pennsylvania, was indicted on 21 counts of “Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice,” one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice,” and 15 counts of “Illegal Remuneration in Violation of the Federal Anti-Kickback Statute .”
Dr. George P. Naum, age 58, of Wheeling, West Virginia, was indicted on one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice,” and 10 counts of “Aiding and Abetting the Distribution of Controlled Substances
Outside the Bounds of Professional Medical Practice.”Eric Drake, age 47, of Weirton, West Virginia, was indicted on one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice,” 10 counts of “Aiding and Abetting the Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice,” one count of “Distribution of a Controlled Substance,” and one count of “Maintaining a Drug-Involved Premises.”
The three are accused of conspiring with one another to illegally distribute controlled substances from a drug treatment center, Advance Healthcare, Inc., in Weirton, West Virginia from 2008 to 2016.
Brizuela is also accused of distributing oxycodone, oxymorphone, fentanyl and other controlled substances illegally in Monongalia County from 2013 to 2015, and accused of accepting financial kickbacks in exchange for directing urine samples for drug testing to a specific company.
Brizuela faces up to 20 years incarceration and a fine of up to $250,000 for each of the distribution counts, up to 10 years incarceration and a fine of up to $250,000 for the conspiracy charge, and up to five years incarceration and a fine of up to $250,000. Naum faces up to 10 years incarceration and a fine of up to $250,000 for each count. Drake faces up to 10 years incarceration and a fine of up to $250,000 for each of the distribution and conspiracy charges, and up to 20 years incarceration and a fine of up to $500,000 for the maintaining a drug premises charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Office of Inspector General at the U.S. Department of Health and Human Services, WV Offices of the Insurance Commissioner Fraud Division, WV Medicaid Fraud Control Unit, Office of Ohio Attorney General Health Care Fraud, Ohio Bureau of Workers’ Compensation, the Hancock-Brook-Weirton Drug Task Force, a HIDTA-funded initiative, the Greater Harrison County Drug Task Force, a HIDTA-funded initiative, West Virginia State Police, the Hancock County Sheriff’s Office, and the Weirton Police Department are investigating.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Illegal Aliens Handed Significant Sentence for Trafficking MarijuanaRead the Press Release
BROWNSVILLE, Texas – Two undocumented aliens from Mexico have been ordered to federal prison for possession with intent to distribute more than 1000 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. Oscar Erick Calvillo-Lores, 37, of Reynosa, Tamulipas, Mexico, and Jose Manuel Portillo-Guerrero, 42, of Valadeces, Tamulipas, Mexico, pleaded guilty May 2, and March 28, 2017, respectively.
Today, U.S. District Judge Andrew Hanen, who accepted the guilty pleas, handed Calvillo-Lores a 10-year sentence, while Portillo-Guerrero was ordered to serve a total of 192 months in federal prison. Not U.S. citizens, both are expected to face deportation proceedings upon completion of their sentences. Portillo-Guerrero’s sentence includes upward adjustments or increases in his calculated sentencing guideline range because he was found to be a leader within the drug trafficking organization and because he was found to have obstructed justice during the prosecution of the case.
Calvillo-Lores and Portillo-Guerrero were two of seven charged in a multi-state drug trafficking conspiracy.
On Aug. 10, 2011, agents approached a suspected narcotics stash house in Mission and found Portillo-Guerrero, Calvillo-Lores and Jose Alejandro Aldava at the residence. Agents arrested all three upon the discovery of 2,120 kilograms (4,464 pounds) of marijuana within the garage of the residence. They also found marijuana hidden within concreate pillars and some hidden within a trailer inside the garage.
Four others – Ramiro Espinoza, 47, of Brownsville, Moises Ramirez, 34, of Brownsville, Javier Alejandro Aldava, 31, an illegal alien from Reynosa, Tamaulipas, Mexico, and Herber Bienvenido Tejada, 36, of Lodi, New Jersey - were previously sentenced to a terms of 81, 60, 52 and 48 months imprisonment, respectively. Espinoza, Ramirez and Tejada had pleaded guilty to conspiracy to cocaine trafficking, while Javier Aldava entered his plea to trafficking marijuana.
Arnoldo Bermea, 39, of Mission pleaded guilty to conspiracy to commit cocaine trafficking and is scheduled to be sentenced Feb. 8, 2018.
All seven conspirators charged were part of a multi-state drug trafficking and money laundering organization that had existed since 2003. The drug trafficking organization, based out of the Rio Grande Valley, would hire truck drivers to haul loads of produce to northern states with ton quantities of marijuana and multi-kilogram quantiles of cocaine hidden in false compartments. Drug proceeds would then be transported back to the Rio Grande Valley.
Calvillo-Lores and Portillo-Guerrero will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration led the nearly three-year Organized Crime Drug Enforcement Task Force investigation with the assistance of IRS - Criminal Investigation; Immigration and Customs Enforcement’s Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Hidalgo County High Intensity Drug Trafficking Area task force; Border Patrol and the Brownsville Police Department. Assistant U.S. Attorney Angel Castro is prosecuting the case.
Titusville Man Sentenced to More Than 14 Years for Stolen Identity Refund Fraud SchemeRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza today sentenced Trayone Lefferio Bell (42, Titusville) to 14 years and 6 months years in federal prison for one count of fraudulent possession of access devices, two counts of theft of government money, and three counts of aggravated identity theft. As part of his sentence, the Court also entered a money judgment in the amount of $266,769, and ordered him to pay $823,797 in restitution.
A federal jury found Bell guilty on October 11, 2017.
According to court documents and evidence presented at trial, Bell possessed the stolen names, dates of birth, and Social Security numbers of hundreds of victims. He then used that information to file false federal tax returns and requested that the refunds be issued via prepaid debit cards in the victims’ names. Bell obtained more than 100 such cards and used them to make a series of large cash withdrawals and purchases.
This case was investigated by the St. Cloud Internal Revenue Service-Secret Service Financial Crimes Task Force, which includes the Internal Revenue Service - Criminal Investigation; the U.S. Secret Service; the St. Cloud Police Department; the Osceola County Sheriff’s Office; the Brevard County Sheriff’s Office; the Palm Bay Police Department; the Casselberry Police Department; the Kissimmee Police Department; the Winter Park Police Department; and the Maitland Police Department. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
The U.S. Attorney's Office charged 202 people for firearms crimes last yearRead the Press Release
The United States Attorney’s Office for the Northern District of Ohio indicted 202 people on firearms charges last year.
Broken down by geography in the district, the most people indicted came out of the Cleveland office, with 116. That was followed by the Akron office (35), Youngstown office (27) and Toledo office (24).
“Firearms prosecutions are homicide prevention,” U.S. Attorney Justin E. Herdman said. “We will continue to work with our federal law enforcement partners, local police and county prosecutors to identify those who use firearms in violent crimes or drug trafficking crimes, or possess firearms illegally, and seek the prison sentences they deserve.”
“ATF remains focused in the pursuit of those offenders who use or possess firearms in relation to violent crimes,” said Trevor A. Velinor, Special Agent in Charge of the Columbus Field Division. “Our partnership with the U.S. Attorney’s Office and our federal, state, and local partners is key to attaining our goal of protecting the public and serving our nation.”
The average sentence for a firearms case sentenced last year in the Northern District of Ohio was nearly nine years in prison (104 months).
Details of selected firearms cases from last year:
U.S. v. Bowers et. al: Eleven people from Stark County were indicted for firearms violations, including firearms trafficking and an illegal sale of a machine gun.
Andre Bowers, of Canton, was charged with illegally dealing a Harrington & Richardson .32-caliber revolver, two Mossberg 12-gauge shotguns, a Glock .40-caliber pistol, a Marlin .22-caliber rifle, a Rossi 20-gauge shotgun and a Kel-Tec 5.56 mm pistol, despite prior convictions for aggravated assault, cocaine trafficking, domestic violence, escape and other crimes. Jesse Gulley, Ikasha Clark and Thomas Lorenz were indicted for a transaction in July 2017 in which Lorenz transferred to Gulley and Clark a Heckler and Koch, 308-caliber machine gun, according to court documents. The cases are pending.
U.S. v. Glenn: Two men were charged in a 17-count indictment with nearly a dozen armed robberies across Northeast Ohio. Richard Glenn, Jr., of Maple Heights, and Brandon Williams, of Euclid, are charged with using firearms to rob banks, drug stores and convenience stores in South Euclid, Euclid, Wickliffe, Lyndhurst, Cleveland, Bedford Heights and Maple Heights. The case is pending
U.S. v. Ely: DeZay Ely, of Akron, was sentenced to life in prison for shooting a woman in the Cuyahoga Valley National Park. Ely attempted to kill a woman on July 3, 2016, by shooting her in the head. He had pleaded guilty to attempted murder, discharging a firearm during a crime of violence and being a felon in possession of ammunition.
U.S. v. Powers: Seth Alan Powers of Ravenna was indicted for having eight firearms and more than 1,300 rounds of ammunition, despite a previous conviction for domestic violence. On March 13, 2017, Powers possessed the following firearms and ammunition, after having been convicted of domestic violence in the Portage County Municipal Court in 2005: Bersa, model Thunder 45, .45 caliber pistol, serial number A59814; Keltec, model PF-9, 9mm pistol, serial number SP089; Ruger, model SR-22, .22 caliber pistol, serial number 365-33720; Walther, model HK416D, .22 caliber pistol, serial number WH013613; Mossberg, model 500A, 12 gauge shotgun, serial number R657562; Taurus, model Rossi, .22 caliber rifle, serial number 5JS244294; Taurus, model Rossi, .22 caliber rifle, serial number 5JS244352; Taurus, model Rossi, .22 rifle caliber, serial number 5JS244203; seven rounds of Hornady ammunition, .45 caliber; seven rounds other ammunition, 9 mm; nine rounds Remington ammunition, .22 caliber; two rounds assorted ammunition, 12 gauge; 1,050 rounds assorted ammunition, unknown caliber; 279 rounds assorted ammunition, unknown caliber, according to the indictment. The case is pending.
U.S. v. Coats: Cody Coats, of Cleveland, pleaded guilty to firing a shotgun during a carjacking in Euclid. Coats used an Itahca short-barreled shotgun when he carjacked an individual and stole their 2005 Chrysler Crossfire outside a Euclid bar on Aug. 14, 2017. He ultimately crashed the car on East 222nd Street near Lakeshore Boulevard following a police chase and was arrested. Coats possessed a shotgun and twenty 12-gauge shotgun shells despite a prior conviction for burglary. He is scheduled to be sentenced in March.
U.S. v. Cargill: Markein Cargill, of Toledo, was indicted after being arrested with 13 firearms. Cargill was indicted on one count each of possessing firearms after being convicted of a felony; possessing an unregistered short-barreled shotgun; possessing with intent to distribute crack cocaine; and using and carrying a firearm during and in relation to a drug trafficking offense.
Cargill on Sept. 1, 2017, was arrested with 13 firearms, including a sawed-off 12-gauge shotgun with no serial number. Cargill was not allowed to possess firearms because of previous convictions for crimes involving heroin and cocaine, according to the indictment. The case is pending.
The number of people indicted for firearms violations for the previous decade:
2016: 105
2015: 126
2014: 167
2013: 207
2012: 176
2011: 218
2010: 166
2009: 156
2008: 157
2007: 191
Taney County Restaurant Owner Sentenced for Tax EvasionRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that the owner of a Taney County, Mo., restaurant has been sentenced in federal court for tax evasion after confessing his crimes to undercover federal agents who posed as buyers when his business was for sale.
Tony E. Cowden, 63, of Protem, Mo., was sentenced on Monday, Jan. 8, 2018, by U.S. District Judge Beth Phillips to 18 months in federal prison without parole.
Cowden operated Tony’s Pizza House in Protem. On Aug. 22, 2017, Cowden pleaded guilty to five counts of income tax evasion. Cowden admitted that he engaged in a scheme to conceal taxable income from the IRS from April 2008 to January 2015 by skimming from cash sales at the business and not reporting the cash income to the IRS.
Cowden listed his business and property for sale in 2015. Two undercover agents from IRS-Criminal Investigation posed as potential buyers and met with Cowden. Cowden apologized to the undercover agents for not having provable income to substantiate the $599,000 sales price, but stated, “it saves me a lot of taxes.” Cowden admitted to the undercover agents that he “pockets” all the money from the sale of Keno-Lotto tickets and the cash received from the arcade games in his restaurant. Cowden maintained true and correct financials for the business in a black three-ring binder.
Cowden encouraged his customers to pay in cash by offering discounts for cash payments. Cowden concealed the cash he skimmed from the restaurant from his accountant and so evaded paying federal income taxes on that revenue. By omitting a portion of his gross receipts, Cowden falsely claimed he was entitled to the earned income credit.
In addition to $91,037 in federal income taxes for the years 2009, 2010, 2011, 2012, 2013 and 2014, Cowden admitted he owes $12,474 in state income tax and $35,016 in state sales tax for the same period.
Federal and state tax losses for those five years total $138,527. Cowden must pay restitution to the IRS and to the state of Missouri. Cowden must also pay $29,581 to the Social Security Administration for Social Security disability payments that he was not entitled to receive.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation, Social Security Administration – Office of Inspector General and the Missouri Department of Revenue.
Sumter Men Plead to Firearm and Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Brandon Leroid Cummings, age 27, and Brandon Christopher Craft, age 30, both of Sumter, pled guilty in federal court to various firearm and drug charges. Cummings pled guilty to possession with intent to distribute and distribution of heroin and cocaine base (commonly known as “crack cocaine”) and conspiracy to use/carry/possess a firearm during a drug trafficking crime, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 924(o). Craft pled guilty to being a felon in possession of a firearm and conspiracy to use/carry/possess a firearm during a drug trafficking crime, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(o). Chief United States District Judge Terry L. Wooten, of Columbia, accepted the guilty pleas and will impose sentence after he has reviewed the presentence reports, which will be prepared by the U.S. Probation Office.
Evidence presented in court during the guilty plea hearing established that May 17, 2017, Cummings distributed crack cocaine and four baggies of heroin to a confidential informant and undercover officer in exchange for $400. The transaction, which occurred in Sumter, was recorded on audio/video. Thereafter, on May 25, 2017, Cummings made arrangements to sell a firearm and heroin to the confidential informant in exchange for $800. When Cummings arrived to meet the confidential informant and the undercover officer, he was accompanied by Craft. Cummings provided the confidential informant what he said was heroin. Craft produced a Taurus .38 caliber revolver from a bag hidden in his waistband and gave it to the confidential informant. The investigation revealed that the firearm had been reported as stolen. Additionally, the heroin sold by Cummings on this occasion, while packaged like the previously sold heroin, was found to be cocaine during a laboratory analysis.
Cummings faces an enhanced penalty on the drug charge in light of prior state convictions for possession with intent to distribute marijuana, possession of crack cocaine (2 counts), and possession schedule I/schedule II controlled substance 2nd offense. Craft is prohibited under federal law from possessing a firearm based upon his prior state convictions for burglary 2nd degree (3 counts), possession of crack cocaine, possession of a firearm by a convicted felon, assault and battery 2nd degree, and forgery.
Cummings and Craft each face a maximum of 20 years imprisonment, a fine of $250,000, and a term of supervised release of not more than 3 years on the conspiracy to use/carry/possess a firearm during a drug trafficking crime charge. Additionally, Cummings faces a maximum of 30 years imprisonment, a fine of $2,000,000 and a term of supervised release of at least 6 years on the drug charge. Finally, on the felon in possession charge, Craft faces a maximum of 10 years imprisonment, a fine of $250,000, and not more than 3 years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Sumter County Sheriff’s Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Statement by U.S. Attorney Halsey B. Frank Regarding Federal Marijuana EnforcementRead the Press Release
I have received numerous inquiries from members of the media, government officials, and others seeking guidance from this office about its approach to enforcing the federal marijuana laws. Those laws make the production, distribution and possession of marijuana illegal based on its classification by Congress as a Schedule I Controlled Substance because Congress determined that it has a high potential for abuse and dependence and has no acceptable medical use.
As the chief federal law enforcement officer in this district, my job is to enforce federal law, not countermand it. While I have some discretion in how my office does so in any particular case, that discretion is guided by the Principles of Federal Prosecution of the Department of Justice (DOJ). Those principles include the interests of society, the public’s confidence in the criminal justice system, federal law enforcement priorities, the nature and seriousness of the offense, the deterrent effect of prosecution, the person's culpability in connection with the offense, their criminal history and willingness to cooperate in the investigation or prosecution of others, the interests of any victims, and the probable sentence or other consequences if the person is convicted, all in light of the DOJ’s and my office’s limited resources. I do not have the authority to categorically declare that my office will not prosecute a class of crime or persons.
Rather, we must proceed on a case-by-case basis, individually assessing each matter according to DOJ’s Principles and deciding whether to use our resources to pursue it. DOJ’s national priorities include the rule of law, national security and terrorism, immigration, violent crime and international gangs such as MS-13, the opiate crisis, supporting law enforcement, and promoting public confidence. In addition, our local priorities include domestic violence and guns, human trafficking, and elder fraud. We will work with our federal, state, local and tribal partners to focus on those who pose the greatest threat to the people and communities that we serve.
With respect to the prosecution of drug offenses, this office has prioritized the prosecution of cases involving the trafficking of opiates, cocaine, crack and similar hard drugs. We have also prosecuted large-scale marijuana distribution organizations and did so even while operating under the recently rescinded DOJ guidance. Prosecution of drug possession cases has not been a priority.
St. Pauls Man Sentenced for Felon in Possession of a Firearm ChargesRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, United States District Judge Louise W. Flanagan sentenced WILLIAM CHARLIE COLLINS, 32, of St. Pauls to 95 months of imprisonment followed by 3 years of supervised release.
COLLINS was named in a two-count Indictment filed on June 27, 2017. On September 13, 2017, COLLINS subsequently pled guilty to two-counts of Felon in Possession of a Firearm.
On February 28, 2017, an officer with the St. Pauls Police Department observed COLLINS place a handgun in the trunk of a vehicle. Once he saw the officer, COLLINS immediately shut the vehicle’s trunk. The officer approached the vehicle’s owner and obtained consent to search. A search of the vehicle resulted in the seizure of a 9mm semi-automatic handgun, containing 9 rounds of ammunition in a 15-round magazine, which was located under a mat in the vehicle’s trunk. When interviewed by law enforcement, COLLINS admitted to possessing the firearm and was released. Later that day, law enforcement became aware of a breaking and entering that occurred at a St. Pauls residence, in which two firearms were stolen. Investigation determined that the stolen 9mm semiautomatic handgun was the same handgun found in COLLINS’ possession. Also stolen from the residence was a .22-250 caliber rifle. Soon after COLLINS was located by law enforcement and placed under arrest. COLLINS advised officers that the stolen rifle was stored at his girlfriend’s residence in St. Pauls. A subsequent search of the residence located the stolen rifle in the attic. COLLINS previously was convicted of a felony crime of violence.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The Robeson County Sheriff’s Office, the St. Pauls Police Department, and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
St. Ann, Missouri Man Sentenced to 15 Years in Bank RobberyRead the Press Release
DAVENPORT, Iowa – On January 8, 2018, United States District Court Judge Rebecca Goodgame Ebinger sentenced Peter Alan Lundberg, 60, of St. Ann, Missouri, to 180 months in prison for bank robbery, announced United States Attorney Marc Krickbaum. Lundberg was also ordered to serve three years of supervised release following his imprisonment and pay $100 to the Crime Victims’ Fund.
On April 20, 2017, Lundberg was driven to Bank of the West in Coralville, Iowa by Bridgette Durborow of St. Peters, Missouri. Durborow waited in the car while Lundberg demanded money from a bank teller and robbed the bank. Approximately $1,080 was stolen. The two were apprehended a short time later traveling eastbound on Interstate 80 near Davenport. Durborow admitted they drove around other eastern Iowa cities, including Cedar Rapids, Marion, and Iowa City, looking for a bank to rob. Peter Lundberg has two prior federal convictions for bank robbery, and one prior state robbery conviction.
Bridgette Durborow pleaded guilty on June 8, 2017. She was sentenced to 24 months in prison on October 6, 2017.
This matter was investigated by the Coralville Police Department and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Southbay Resident Sentenced to over Three Years in Prison for Role in Conspiracy to Transport Stolen Wine in Interstate CommerceRead the Press Release
SAN JOSE - Alfred Georgis was sentenced this morning to 37 months in prison for his role in a conspiracy to transport stolen goods in interstate commerce, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Beth L. Freeman, United States District Judge, following a guilty plea in which Georgis admitted to conspiring in the transportation of high-end wines stolen from a number of businesses in the Bay Area, including, The French Laundry in Yountville, Calif., and Alexander’s Steakhouse in Cupertino, Calif., and which he sold to a buyer in North Carolina.
According to his plea agreement, Georgis, 53, of Mountain View, conspired with Davis Kiryakoz, 44, of Modesto, and others, to steal approximately 29 bottles of high-end wines from Alexander’s Steakhouse in the early morning hours of November 8, 2014. Georgis acknowledged the wines had a value of approximately $32,000. Georgis admitted he and Kiryakoz made arrangements to sell the wines to a buyer in North Carolina and shipped approximately 17 bottles, worth about $25,000, of the wine to the buyer. In addition, Georgis admitted conspiring with Kiryakoz to steal approximately 110 bottles of high-end wines, valued at the time at approximately $549,447, from The French Laundry in the early morning hours of December 26, 2014. Georgis and Kiryakoz sold approximately 63 bottles of the stolen wines, valued at approximately $221,374, to the same buyer in North Carolina, and transported some of those wines on December 26, 2014, and December 29, 2014. As part of his plea, Georgis also agreed that conduct relevant to his sentencing included the transportation of wines valued at $290,000 stolen shortly after midnight on March 27, 2013, from Fine Wines International in San Francisco and sold to a buyer in North Carolina.
A federal grand jury charged Georgis and Kiryakoz with one count of conspiracy to transport stolen goods, in violation of 18 U.S.C. § 371, and two counts of transportation of stolen goods, in violation of 18 U.S.C. §§ 2314 and 2. Both defendants pleaded guilty to the conspiracy charge and the remaining charges were dismissed. On March 28, 2017, Judge Freeman sentenced Kiryakoz to 15 months in prison, three years of supervised release, and ordered that he pay $585,715 in restitution for his role in the scheme. This morning, in addition to the prison term, Judge Freeman ordered that Georgis also pay $585,715 in restitution, jointly and severally with his co-defendant, and to serve three years of supervised release as part of his sentence.
Assistant U.S. Attorney Cynthia Frey is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Napa County Sheriff's Office, with assistance from the Santa Clara County Sheriff's Office, Los Gatos Monte Sereno Police Department, San Francisco Police Department, Walnut Creek Police Department, and Carmel Police Department.
Six Plead Guilty to Federal Heroin ChargesRead the Press Release
Charlottesville, VIRGINIA – Six Individuals who conspired to distribute heroin in and around Culpeper have pleaded guilty in the United States District Court for the Western District of Virginia in Charlottesville to a variety of federal drug and other offenses, United States Attorney Rick A. Mountcastle announced.
In all, six members of the conspiracy have pleaded guilty over the past several weeks, with the final two defendants pleading guilty this morning in federal court in Charlottesville. The group sold at least 100 grams of heroin in the Culpeper region beginning in 2016 and continuing through 2017.
Rondale Montrel Faulkner, 31, of Culpeper Va., pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute at least 100 grams of heroin and one count of being a previously convicted felon illegally in possession of a firearm. According to evidence presented during Faulkner’s guilty plea hearing, the defendant sold heroin to a confidential source working with the Blue Ridge Narcotics and Gang Task Force on several occasions. On one occasion, co-defendant George Faulkner drove the vehicle in which the undercover transaction took place. In addition, the confidential source purchased a .357 H. Weiharauch revolver from Faulkner. Faulkner is prohibited from possessing a firearm due to a previous criminal conviction.
George Christopher Faulkner, 29, of Culpeper Va., pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute at least 100 grams of heroin.
April Christine Sherman, 34, of the Tidewater region Va., pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute at least 100 grams of heroin and one count of possession of a firearm in furtherance of a drug trafficking crime. According to evidence presented during her guilty plea hearing, Sherman sold heroin to an undercover law enforcement officer working with the Blue Ridge Narcotics and Gang Task Force. Following the transaction, the vehicle Sherman and co-defendant, David Allen Frazier Jr., were traveling in was stopped by police and a Taurus .38 automatic pistol was located in the glovebox.
David Allen Frazier Jr., 30, of the Tidewater region Va., pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute at least 100 grams of heroin and one count of being a previously convicted felon illegally in possession of a firearm.
David Lee Boyce, 38, of Culpeper Va., pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute at least 100 grams of heroin and one count of possession of a firearm in furtherance of a drug trafficking crime. According to evidence presented at the defendant’s guilty plea hearing, the defendant sold heroin to a confidential source working with the Blue Ridge Narcotics and Gang Task Force on several occasions. On one occasion, when the source attempted to arrange a purchase of heroin, Boyce had the source contact co-defendant Rebecca Backe, who was selling heroin on his behalf. Backe was able to sell the source heroin.
Rebecca Rae Backe, 38, of Culpeper Va., pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute at least 100 grams of heroin.
The investigation of the case was conducted by the Drug Enforcement Administration and the Virginia State Police Blue Ridge Narcotics and Gang Task Force with Assistance from the Culpeper County Commonwealth’s Attorney. Assistant United States Attorney Ronald M. Huber and Special Assistant United States Attorney Rachel Swartz are prosecuting the case for the United States.
Six Gang Members Sentenced to Prison for RICO Conspiracy and Related ChargesRead the Press Release
CHARLOTE, N.C. – Six members of the United Blood Nation gang (UBN or Bloods) were sentenced yesterday to terms ranging from 13 years to life in prison, for conspiracy to participate in racketeering activity (RICO) and related charges, stemming from the 2014 double-murder of Douglas and Deborah London and the 2013 murder of Kwamne Clyburn, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
U.S. District Judge Max O. Cogburn, Jr. presided over the sentencing hearings and ordered Rahkeem Lee McDonald, 25, of Charlotte, to serve life in prison, following his guilty plea to RICO conspiracy and murder in aid of racketeering charges in connection to the Londons’ murder.
David Lee Fudge, 24, of Pineville, N.C., was ordered to serve 26 years in prison and five years of supervised release. Fudge pleaded guilty to RICO conspiracy and murder in aid of racketeering for the Londons’ murder, and Hobbs Act robbery for his role in the robbery of the Pineville-area mattress store owned by the couple.
Ibn Rashaan Kornegay, 38, of Greenville, N.C., was sentenced to 23 years in prison and five years of supervised release. Nehemijel Maurice Houston, 23, of Charlotte, was sentenced to 20 years in prison and five years of supervised release. Daquan Lamar Everrett, 23, of Charlotte, was sentenced to 13 years in prison and five years of supervised release, and Centrilla Shardon Leach, 33, of Charlotte, was ordered to serve 13 years in prison and five years of supervised release. Each defendant pleaded guilty to one count of RICO conspiracy.
Judge Cogburn previously sentenced Jamell Lamon Cureton and Malcolm Jarrel Hartley to life in prison in connection to the double-murder of Douglas and Deborah London. Cureton received a second life sentenced for the unrelated murder of Kwamne Clyburn in 2013.
Four more defendants who were previously convicted at trial or have pleaded guilty in connection with the case are currently awaiting sentencing:
Randall Hankins, II, Nana Yaw Adoma, and Akheem Tahja McDonald, were convicted of racketeering conspiracy charges in October 2017. Hankins was also convicted of two counts of murder in aid of racketeering and two counts of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence for his role in the murder of the Londons.
Adoma and Akheem McDonald were each convicted of one count of murder in aid of racketeering and one count of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death, stemming from Clyburn’s murder. Adoma was also convicted of one count of assault with a dangerous weapon in aid of racketeering and one count of use or carry of a firearm in relation to a crime of violence and possession of firearm in furtherance of a crime of violence, for his role in the armed robbery of the Londons’ business. Briana Shakeyah Johnson has also pleaded guilty to RICO conspiracy and murder in aid of racketeering charges for her involvement in the Londons’ murder.
According to previous court filings, admissions contained in filed plea documents, trial evidence and the sentencing hearings:
Beginning in at least or about 2012, the defendants were members of the Bloods and carried out violent acts for the purpose of protecting and furthering the gang’s power. Court documents show that the defendants operated according to a common set of Bloods’ rules and participated regularly in gang meetings to discuss, among other things, the commission of crimes, including robbery and murder.
On May 25, 2014, Cureton, Adoma and Fudge robbed The Mattress Warehouse in Pineville, owned by Douglas and Deborah London. In the months that followed, Cureton, a high-ranking “5-Star General” within the gang, communicated with Hartley and other UBN members, including the defendants sentenced yesterday, to plan the murders of Douglas and Deborah London. According to court records, Cureton and other gang members discussed that Douglas London was the only eye-witness who could identify Cureton and therefore needed to be eliminated.
The gang’s leadership authorized Hartley to proceed with the murder and on October 23, 2014, Johnson drove Hartley to South Carolina, where Hartley shot and killed the couple at their home. Following the couple’s murder, Cureton explained in a letter sent from prison that he ordered the murder of Douglas London because he was going to testify against him in court, and described Deborah London as “collateral damage.”
According to court records, after the murders Hartley was “ranked up” or “promoted” to a 2-Star General for carrying out the leadership’s orders. Cureton ordered the gang to remain silent about the murders and told Hartley that from that point forward the topic of the victims’ murders was not to be discussed, authorizing action against anyone who talked about it. Kornegay also conducted a telephone gang meeting with other UBN gang members during which he directed them to lay low to avoid contact with law enforcement.
Johnson, Hankins, Adoma, and Akheem McDonald are currently in federal custody. The maximum penalty associated with the charges of which they are convicted is life in prison. The defendants’ sentences will be determined by the Court, taking into consideration the federal sentencing guidelines and statutory sentencing factors. A sentencing date has not been set yet.
The investigation was led by the FBI, with the invaluable assistance of CMPD and the York County Sheriff’s Office.
Assistant U.S. Attorney Don Gast is prosecuting the case.
Santa Fe Man Facing Federal Crack Cocaine Trafficking ChargesRead the Press Release
ALBUQUERQUE – A Santa Fe, N.M., man is detained pending trial on federal cocaine base trafficking charges according to the U.S. Attorney’s Office, the DEA and the Santa Fe Police Department. According to court filings, the charges against Kevin Madrid, 31, are the result of a long-term investigation into a drug trafficking organization allegedly headed by Madrid that distributed crack cocaine in northern New Mexico.
The DEA and Santa Fe Police Department arrested Madrid on Dec. 20, 2017, based on an indictment charging him with participating in a cocaine base trafficking conspiracy and distribution of cocaine base. Cocaine base is more commonly known as “crack” or “crack cocaine.” The indictment alleges that between March 2017 and Dec. 2017, Madrid conspired with others to distribute more than 280 grams of crack cocaine in Santa Fe County, N.M. It further alleges that Madrid distributed more than 280 grams of crack cocaine on Oct. 26, 2017, in Bernalillo County, N.M.
Madrid was arraigned on the indictment on Dec. 22, 2017, and entered a not guilty plea. Madrid was ordered detained pending trial, which is currently scheduled for Feb. 12, 2018.
If convicted of the crimes charged in the indictment, Madrid faces a mandatory minimum penalty of ten years and a maximum of life in federal prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the Santa Fe Police Department. Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the case.
Rebeca Paloukos Sentenced to Prison for Theft of Government MoneyRead the Press Release
SHAWN N. ANDERSON, United States Attorney for Guam and the Northern Mariana Islands, announced that REBECA PALOUKOS, age 51, from Nimitz Hill, Piti, was sentenced today in District Court to a term of 18 months imprisonment for Theft of Government Money, in violation of 18 U.S.C. § 641. The Court also ordered Paloukos to serve three years of supervised release following her term of imprisonment. She must also pay restitution to the United States Office of Personnel Management (OPM) in the amount of $295,414.40, in addition to a $100.00 special assessment.
Paloukos and her mother had a joint bank account that was electronically funded by a Civil Service Retirement System annuity on a monthly basis. The defendant’s mother received the money as the surviving spouse of her deceased husband, a former federal employee. Following her mother’s death in 1997, Paloukos continued to withdraw money from the account as it was funded by OPM. OPM had not been informed of the mother’s death. Paloukos unlawfully received $295,414.40 over the period of the scheme.
The investigation was conducted by agents of the Office of Personnel Management Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Stephen F. Leon Guerrero.
Realtor Sentenced for Violating Lead-Based Paint Disclosure RulesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Maureen S. Walck, 73 of Lockport, NY, who was convicted of failure to provide lead paint hazard warning notice, was sentenced to time served, fined $1,000 and ordered to pay restitution to the victim in the amount of $53,326.07 by U.S. Magistrate Judge Jeremiah J. McCarthy.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that the defendant, a real estate broker with RealtyUSA, executed a contract on January 15, 2014, with the owner of a residence in Lockport, which gave the defendant the exclusive right to sell the residence. The residence was built in approximately 1900, and the owner was aware that lead-based paint hazards were present. The owner informed Walck of the hazards and showed a copy of the lead-based paint inspection reports to the defendant.
On January 25, 2014, a prospective buyer made an offer to purchase the residence. As part of the sales contract, a lead-based paint rider and disclosure form was included. Walck indicated that records pertaining to lead-based paint and/or lead-based paint hazards at the residence were provided to the prospective buyer. After an inspection of the residence, and after reviewing the lead-based paint records, the prospective buyer cancelled the sales contract.
On February 6, 2014, a second prospective buyer made an offer to purchase the residence. As part of the sales contract, another lead-based paint rider was included. However, unlike the rider with the first prospective buyers, Walck indicated that the seller had no knowledge of lead-based paint and/or lead-based paint hazards at the residence and that there were no records pertaining to lead-based paint and/or lead-based paint hazards for the residence. The second prospective buyers purchased the residence and closed on the residence on April 11, 2014. In September 2015, the new owners learned that their child was diagnosed with lead poisoning.
“The legal maxim of caveat emptor or ‘let the buyer beware’ has no applicability where, as here, the seller’s agent withholds information from the buyer notwithstanding her legal obligation to disclose the same,” stated U.S. Attorney Kennedy. “Indeed, the more apt lesson to be gleaned from this prosecution might well be ‘let the artful agent beware.’”
The sentencing is the result of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency, Criminal Investigation Division, under the direction of Special Agent-In-Charge Tyler Amon, and Special Agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Resident Agent-in-Charge Jeffrey K. Stachowiak.
Pittsburgh Man Sentenced to 3 Years in Prison for Tax Fraud Scheme He Perpetrated from PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years of imprisonment on his convictions for Conspiracy to Commit Mail Fraud and Tax Fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Sean Brooks, age 28, who is currently incarcerated. Judge Hornak also ordered that Brooks pay $250,000 in restitution to the Internal Revenue Service, and that the three-year sentence run consecutively to the 12 to 24 year sentence Brooks is currently serving based on his conviction for involuntary manslaughter.
According to information presented to the court, Brooks, while incarcerated at various state prisons, engaged in a tax fraud scheme with other inmates and with other non-inmates. In summary, Brooks and other inmates filed tax returns on behalf of inmates and other individuals that falsely claimed tax refunds. The conspirators arranged for the Internal Revenue Service to send tax refund checks to addresses associated with members of the conspiracy who were not then incarcerated. The conspirators then forged the endorsements on the checks and deposited them into banks accounts. The conspirators then withdrew the funds associated with the fraudulently deposited refund checks and disbursed the money to members of the conspiracy. In total, the conspiracy involved the filing of hundreds of fraudulent tax returns and the issuance of hundreds of thousands of dollars of fraudulent refund checks.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service and the Department of Homeland Security – Homeland Security Investigations, for the investigation leading to the successful prosecution of Brooks.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
William Key, 86, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Louis D. Lappen. According to the Information[1], the defendant received retirement benefits under two different names from September 2004 until November 2016. The defendant’s alleged actions resulted in a loss to the government of approximately $57,536.40.
If convicted, the defendant faces a ten-year term of imprisonment, a 3‑year period of supervised release, restitution to the government of $57,536.40, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, Pennsylvania State Police, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
[1] An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.