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Tuesday 7 November 2017
Ohioans turn in nearly 18 tons of pills on Drug Take Back DayRead the Press Release
Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
In Ohio, nearly 18 tons – 35,797 pounds – of unused pills were collected.
Now in its 8th year, this event continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
“We know of many cases where leftover pain pills have led to an opioid addiction,” said U.S. Attorney for the Northern District of Ohio Justin Herdman said. “Properly disposing of these pills is one important step anyone can take to get involved in turning the tide on the opioid epidemic that has caused so much pain here in Ohio.”
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is April 28, 2018.
Ohio Businessman Convicted of Tax FraudRead the Press Release
A Germantown, Ohio, businessman who controlled the operation of an anti-aging skincare business in Dayton, Ohio, was convicted today of seven counts of filing false corporate, individual, and private foundation tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment and evidence presented at trial, James Wright, 62, ran the day-to-day operations of B&P Company Inc. (B&P), which manufactured and sold an array of skincare products, including Frownies, a wrinkle reduction product endorsed by celebrities. Wright’s great-grandmother invented Frownies in 1889 and the product has been sold by his family ever since. Beginning in the late 1990s, Wright formed a series of entities that he used to divert money from B&P to himself and members of his family. Instead of receiving a salary from B&P, Wright incorporated a company called The Remnant Inc. (The Remnant), to which B&P paid “management fees.” Wright caused the preparation of false corporate tax returns for The Remnant on which he deducted personal expenses, including rent, utilities, and pool and lawn care for his residence. Wright also used funds from The Remnant’s bank accounts to pay rent for one of his daughters in New York and California. Wright paid personal expenses directly out of B&P’s bank accounts as well. He directed employees of B&P to use corporate funds to pay for the rent and utilities at an apartment rented by his mother as well as rent for his daughter in New York.
In 2004, Wright applied to the IRS for non-profit status for a private foundation called Fore Fathers Foundation. Wright caused B&P to made donations to the foundation and then used more than $170,000 of the foundation’s funds over a seven-year period to pay for high school and college tuition for all five of his children. According to the testimony at trial, these payments constituted acts of self-dealing that Wright was required to disclose on the foundation’s tax returns and pay excise taxes on. When Wright filed the foundation’s 2003 through 2009 returns however, he falsely reported that he had not engaged in acts of self-dealing and failed to pay the excise taxes due on the distributions.
The evidence at trial established that Wright had a long history of interactions with the IRS. In 1998, Wright pleaded guilty to tax evasion for using trusts to conceal income from the IRS. This criminal case arose from an audit of Wright’s individual income tax returns. In 2002, the IRS initiated an audit of The Remnant’s income tax returns. During a 2010 audit of B&P’s income tax returns, Wright falsely stated to an IRS revenue agent that he had no prior dealings with the IRS, despite the fact that he had been criminally prosecuted in the 1990s and audited in both the 1990s and early 2000s.
U.S. District Judge Walter H. Rice did not set a date for sentencing. Wright faces a statutory maximum sentence of three years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their support during the investigation and prosecution of this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Ocean Springs Man Pleads Guilty to Accessing the Internet with the Intent to View Child PornographyRead the Press Release
Gulfport, Mississippi. – Steven Dedual, Jr., 45, of Ocean Springs, Mississippi, pled guilty in United States District Court to accessing the internet with the intent to view child pornography, announced U.S. Attorney Mike Hurst and Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans.
From November 2015 through May 2016, Steven Dedual, Jr., through the use of computers in Gulfport and Ocean Springs, Mississippi, accessed the internet as a user of a file-sharing network, with the intent to view visual depictions of minors engaging in sexually explicit conduct, including visual depictions of a minor who had not attained 12 years of age.
Dedual will be sentenced on February 9, 2018, at 9:00 a.m., by U. S. District Judge Sul Ozerden, and faces a maximum sentence of 20 years in prison, a $250,000 fine, and a lifetime of supervised release.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Andrea Jones.
Mobile Man Sentenced on Felon in Possession of Firearm ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Brad Jason Long of Mobile County, Alabama was sentenced in federal court today to 180 months imprisonment based on his guilty plea to the crime of being a felon in possession of a firearm and being found to be a career criminal, subject to 18 U.S.C. 924(e). The sentence was imposed by Chief Judge Kristi K. DuBose.
On or about January 3, 2017, in Mobile County, Brad Jason Long, was found to be in possession of two firearms, namely, a Sig Sauer P220, .45 caliber semi-automatic pistol and a Walther, .380 caliber semi-automatic pistol, knowing that he had been previously convicted of a felony crime. It is a federal crime for any person who has been convicted of a felony to be in possession of a firearm or ammunition.
This case was investigated by the Federal Bureau of Investigation, in close cooperation with the Mobile County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney, Gregory Bordenkircher, United States Attorney’s Office for the Southern District of Alabama.
Minnesota Resident Sentenced to 170 Months in Prison for Distribution of Child PornographyRead the Press Release
DAVENPORT, Iowa – On November 7, 2017, United States District Court Judge Rebecca Goodgame Ebinger sentenced Michael W. Kennedy, a.k.a. Ian Curtis, 49, of Monticello, Minnesota, to 170 months in prison for distribution of visual depiction of minors engaging in sexually explicit conduct, announced United States Attorney Marc Krickbaum. Kennedy was also ordered to serve 10 years of supervised release following his imprisonment, pay $100 to the Crime Victims’ Fund, and comply with the Sex Offender Registry Requirements upon release.
On May 18, 2017, Kennedy pled guilty to the charges, which arose from an investigation initiated by the University of Iowa Police Department. As stated in the plea agreement, Kennedy was a patient at the University of Iowa Hospital and Clinic in Iowa City. While there, hospital staff thought Kennedy was taking photographs of female staff with his tablet, which is against written hospital policy. The staff confiscated his electronic devices and saw what appeared to be multiple images of child pornography. A forensic examination was conducted which showed that Kennedy was posing as a young male and trading child pornography videos with others through multiple social media applications on his tablet while he was a hospital patient.
This matter was investigated by University of Iowa Police Department, National Center for Missing and Exploited Children, and the Cedar Rapids, Iowa, Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Michigan Doctor and Owner of Medical Billing Company Sentenced to 15 Years in Prison for $26 Million Health Care Fraud SchemeRead the Press Release
A Detroit-area doctor was sentenced to 180 months in prison today for his role in a $26 million health care fraud scheme that involved billing Medicare for nerve block injections that were never provided and efforts to circumvent Medicare’s investigation of the fraudulent scheme. A co-conspirator who owned a medical billing company was previously sentenced to 10 years in prison.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Special Agent in Charge Manny Muriel of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
Johnny Trotter M.D., 42, of Bloomfield Hills, Michigan, was sentenced today by U.S. District Judge George C. Steeh of the Eastern District of Michigan. The owner of the medical billing company, Elaine Lovett, 61, of Detroit, was sentenced by Judge Steeh on Sept. 26. Judge Steeh also ordered each defendant to pay $9,199,946 in restitution and scheduled a hearing tomorrow on forfeiture. Trotter and Lovett were convicted in April 2017 after a four-week jury trial of one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud. Trotter was remanded to custody pending a detention hearing tomorrow.
According to the evidence presented at trial, from May 2008 until May 2014, Trotter and Lovett knowingly submitted fraudulent bills for services that they knew had not been provided, mainly nerve block injections. Additionally, after Medicare imposed a requirement in 2009 that required Trotter’s claims to undergo a medical review prior to payment, Trotter and Lovett conspired to circumvent Medicare’s fraud investigation of Trotter by creating sham medical practices, the evidence showed. To continue to receive payment for services that were not provided, Trotter and Lovett concealed their involvement with these practices from Medicare, and instead recruited their family members and employees to serve as straw owners of the companies, the evidence further showed.
The FBI, HHS-OIG and IRS-CI investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Fraud Section Assistant Chiefs Malisa Dubal and Allan Medina, as well as Trial Attorneys Tom Tynan and Jacob Foster, prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Meridian Man and Woman Plead Guilty to Conspiracy to Obtain a Controlled Substance by FraudRead the Press Release
BOISE – Kellie Cansaydee Sebastian, 33, and Ramon Leon Garcia, 28, of Meridian, Idaho, pleaded guilty to conspiracy to obtain a controlled substance by fraud, U.S. Attorney Bart M. Davis announced. Sebastian pleaded guilty yesterday and Garcia pleaded guilty on September 19. They were indicted by a federal grand jury in Boise in May 2017.
According to court records, Garcia and Sebastian agreed to obtain and attempt to obtain possession of oxycodone and promethazine-codeine cough syrup. Sebastian was employed as a medical assistant for a local doctor. As a medical assistant, Sebastian had the ability to print out prescriptions using the doctor’s information and the name of his practice. Sebastian printed out prescriptions for controlled substances and provided those to her co-conspirator, Ramon Garcia, who took the prescriptions to different pharmacies and attempted to fill them. For example, Garcia took a fraudulent prescription for 120 tablets of oxycodone 20mg to a pharmacy and successfully filled it.
The charge of conspiracy to obtain a controlled substance by fraud is punishable by up to four years in prison, a maximum fine of $250,000, and term up to one year of supervised release.
Sentencing for Garcia is set for December 7, 2017, and sentencing for Sebastian is set for February 6, 2018. Both sentencings are before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement from the DEA, Ada County Sheriff’s Office, and U.S. Department of Health and Human Services Office of Inspector General.
Members of International Bank Fraud Ring Sentenced to Prison for Role in SchemeRead the Press Release
TUCSON, Ariz. – Four members of an international fraud syndicate have been sentenced to federal prison for conspiracy to commit bank fraud and aggravated identity theft in connection with their scheme to manufacture and use fraudulent credit cards using the personally identifiable information of US-based individuals.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Elizabeth A. Strange for the District of Arizona, and Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Phoenix Field Office made the announcement.
“Our office is dedicated to combatting transnational fraud and identity theft,” said Acting U.S. Attorney Strange. “The scope of the fraud scheme in this case was staggering, and we commend our law enforcement partners for apprehending the perpetrators and bringing them to justice.”
“This appalling international scheme illustrates the lengths to which fraudsters will go to game the system for financial gain,” said HSI Special Agent Brown. “We will continue to work tirelessly with our law enforcement partners to hold shameless, brazen fraudsters accountable for their crimes.”
According to admissions made in connection with their guilty pleas, the defendants participated in a conspiracy that bought stolen personally identifiable information, credit card account information, and other financial information over the Internet from individuals located in Ukraine, Tajikistan, and Russia, among other countries. The stolen personally identifiable information and stolen credit card account information were then used to unlawfully manufacture fraudulent credit cards.
Participants in the fraud scheme traveled on multiple occasions from Mexico into the United States and used the fraudulent credit cards to purchase gift cards and high end merchandise, such as iPhones, laptop computers, and designer clothing, from retailers throughout Arizona and elsewhere in the United States. After purchasing merchandise and gift cards, the co-conspirators transported the unlawfully purchased merchandise and gift cards to Mexico for future sale and profit for scheme participants. The defendants admitted in their guilty pleas that they collectively possessed at least 5,684 fraudulent credit cards resulting in the loss of hundreds of thousands of dollars.
The defendants each pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. Today, Rey Martinez-Lopez, 33, of Hermosillo, Sonora, Mexico, was sentenced to four years and six months in prison, to be followed by five years of supervised release by U.S. District Judge Rosemary Marquez of the District of Arizona.
Judge Marquez sentenced the other three defendants to the following prison terms:
- On Sept. 29, Anwar Barragan Flores, 39, of Hermosillo, Sonora, Mexico, was sentenced to seven years in prison, to be followed by five years of supervised release.
- On Sept. 12, Jorge Williams-Araiza, 38, of Hermosillo, Sonora, Mexico, was sentenced to three years and two months in prison, to be followed by five years of supervised release.
- On Aug. 23, Javier Ramirez-Villegas, 36, of Hermosillo, Sonora, Mexico, was sentenced to four years in prison to be followed by five years of supervised release.
The defendants’ restitution will be determined by the Court at a later hearing, which has not been scheduled yet.
The investigation in this case was conducted by HSI Nogales. The prosecution was handled by Assistant U.S. Attorney Matthew G. Eltringham, Organized Crime and Drug Enforcement Task Force, District of Arizona, Tucson and Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section.
CASE NUMBER: CR-0184-TUC JGZ (LAB)
RELEASE NUMBER: 2017-110_Martinez_Lopez_etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
- On Sept. 29, Anwar Barragan Flores, 39, of Hermosillo, Sonora, Mexico, was sentenced to seven years in prison, to be followed by five years of supervised release.
Members of International Bank Fraud Ring Sentenced to Prison for Role in SchemeRead the Press Release
Four members of an international fraud syndicate have been sentenced to federal prison for conspiracy to commit bank fraud and aggravated identity theft in connection with their scheme to manufacture and use fraudulent credit cards using the personally identifiable information of US-based individuals.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Elizabeth A. Strange for the District of Arizona, and Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Phoenix Field Office made the announcement.
According to admissions made in connection with their guilty pleas, the defendants participated in a conspiracy that bought stolen personally identifiable information, credit card account information, and other financial information over the Internet from individuals located in Ukraine, Tajikistan, and Russia, among other countries. The stolen personally identifiable information and stolen credit card account information were then used to unlawfully manufacture fraudulent credit cards.
Participants in the fraud scheme traveled on multiple occasions from Mexico into the United States and used the fraudulent credit cards to purchase gift cards and high end merchandise, such as iPhones, laptop computers, and designer clothing, from retailers throughout Arizona and elsewhere in the United States. After purchasing merchandise and gift cards, the co-conspirators transported the unlawfully purchased merchandise and gift cards to Mexico for future sale and profit for scheme participants. The defendants admitted in their guilty pleas that they collectively possessed at least 5,684 fraudulent credit cards resulting in the loss of hundreds of thousands of dollars.
The defendants each pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. Today, Rey Martinez-Lopez, 33, of Hermosillo, Sonora, Mexico, was sentenced to four years and six months in prison, to be followed by five years of supervised release by U.S. District Judge Rosemary Marquez of the District of Arizona.
Judge Marquez sentenced the other three defendants to the following prison terms:
- On Sept. 29, Anwar Barragan Flores, 39, of Hermosillo, Sonora, Mexico, was sentenced to seven years in prison, to be followed by five years of supervised release.
- On Sept. 12, Jorge Williams-Araiza, 38, of Hermosillo, Sonora, Mexico, was sentenced to three years and two months in prison, to be followed by five years of supervised release.
- On Aug. 23, Javier Ramirez-Villegas, 36, of Hermosillo, Sonora, Mexico, was sentenced to four years in prison to be followed by five years of supervised release.
The defendants’ restitution will be determined by the Court at a later hearing, which has not been scheduled yet.
HSI Nogales investigated the case. Assistant U.S. Attorney Matthew G. Eltringham, Organized Crime and Drug Enforcement Task Force of the District of Arizona and Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Marion County man indicted on firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia, man was indicted by a federal grand jury today on an illegal firearm charge, United States Attorney William J. Powell announced.
Rocmond Lewis, Sr., age 40, was indicted on one count of “Unlawful Possession of a Firearm.” Lewis, having previously being convicted of a felony in the Circuit Court of Marion County, West Virginia, is accused of possessing a .45 caliber pistol, a 9mm pistol, and a .380 caliber pistol. The crime is alleged to have occurred in March 2017 in Marion County.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Marion County Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – Patrick Darrell Smith, 35, Hannibal, MO, was sentenced to 30 years in prison on charges of producing child pornography.
According to court documents, in August 2016 Smith took sexually explicit videos of his girlfriend’s minor daughter. After discovering the videos on Smith’s cell phone, the girlfriend called police who obtained a search warrant for the phone. Located on the phone was an app called “Smart Calculator Gallery Lock” which was disguised to look like a calculator but was actually an app to store photos or videos.
Smith pled guilty in June to two felony counts of production of child pornography and appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney’s Office.
Man pleads guilty to obstructing justice in City of Atlanta corruption investigationRead the Press Release
ATLANTA - Shandarrick Barnes has pleaded guilty to obstructing justice in the federal corruption investigation involving City of Atlanta government. The defendant threw a concrete block through the window of E.R. Mitchell’s home, and placed dead rodents on his porch and elsewhere hoping to thwart his cooperation with federal law enforcement.
“Barnes threw the concrete block through Mitchell’s dining room window to get him to ‘shut up,’” said U. S. Attorney Byung J. “BJay” Pak. “Instead, that violent act made Mitchell even more resolute in his cooperation with federal law enforcement. Barnes now faces a significant prison sentence because he decided to obstruct a federal investigation.”
“Attempts to subvert justice, whether through intimidation of witnesses or by any other means, will not be tolerated. The FBI will expend any resources necessary to ensure that those who seek to obstruct criminal investigations are held accountable for their actions. This plea by Shandarrick Barnes is evidence of the FBI’s commitment to protect those willing to cooperate with law enforcement’s efforts to improve their communities,”
“Individuals who obstruct justice will be held accountable for their actions. Intimidation of witnesses is never acceptable,” said James Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “This investigation was complex and multifaceted, and it underscores the reason we are committed to working with our law enforcement partners to dismantle any and all public corruption schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In late July 2015, special agents with IRS and the FBI approached E.R. Mitchell for an interview relating to an ongoing investigation into corruption at the City of Atlanta. During the meeting, agents discussed corruption allegations as well as potential tax improprieties. Shortly after the IRS and FBI agents approached and interviewed him, Mitchell informed others that federal law enforcement had spoken with him and was asking questions.
Mitchell was interviewed on September 2, 2015, by the U.S. Attorney’s Office and FBI and IRS agents and confessed to regularly paying “up-front money” for City of Atlanta contracts. On September 8, 2015, Mitchell returned to the office and completed a second debriefing with prosecutors and agents.
On September 11, 2015 at approximately 5:30 a.m., Shandarrick Barnes threw a concrete block with the words “ER, keep your mouth shut!” written on the side, through a plate glass window in Mitchell’s home. When Mitchell emerged from the house to see who had thrown the block, he saw that dead rats had been placed on his porch, car and in his mailbox. The police and FBI were summoned to the scene and law enforcement obtained security footage from the subdivision. The video revealed a car that appeared to match Barnes’ vehicle left the area minutes after the block was thrown through the front window. Further investigation by agents suggested that Barnes was involved.
On July 13 and August 17, 2016, Barnes was interviewed by the FBI and IRS. During the interviews, he admitted he threw the concrete block through Mitchell’s window. Barnes specifically acknowledged that he was aware of the IRS tax investigation into Mitchell and others and that agents had asked about Mitchell’s taxes as well as payments Mitchell made to businesses associated with Barnes’ employer. He was well aware that Mitchell was actively cooperating with agents. He said he was livid and his decision to throw the brick through Mitchell’s window was motived by his desire to hinder Mitchell’s communication with agents concerning possible tax violations. He said he felt that Mitchell’s communications to federal law enforcement would negatively affect his employer’s businesses. Barnes was concerned that the communication with agents was detrimental to obtaining other business that he and others were actively seeking at that time.
Sentencing for Shandarrick Barnes, 41, of Atlanta, Georgia, is scheduled for February 7, 2018.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Kurt R. Erskine and Jeffrey Davis are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man from El Salvador sentenced to 12 months in prison for reentering the United States multiple timesRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from El Salvador was sentenced to 12 months in prison last week for reentering the country after being deported.
Nelson Antonio Orellana, 30, of San Miguel, El Salvador, was sentenced on October 30, 2017 by U.S. District Judge Donald E. Walter on one count of illegal reentry following deportation. According to the July 13, 2017 guilty plea, U.S. Customs and Border Patrol agents stopped a vehicle February 21, 2017 traveling east on Interstate 10. Agents found eight undocumented illegal aliens and one driver who had lawful status in the United States. Agents discovered Orellana among the group. They also discovered the defendant had illegally reentered the United States multiples times. Orellana was found to have been deported multiple times with the most recent deportation being March 4, 2016 from Alexandria, La. He reentered the country illegally on February 14, 2017 near Laredo, Texas.
United States Customs and Border Patrol conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Long Island Woman Pleads Guilty to Operating Credit Card Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LISA REID, 45, of Amityville, New York, waived her right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to fraud and identity theft offenses stemming from a credit card fraud scheme.
According to court documents and statements made in court, between February 2015 and January 2017, REID was involved in a scheme to defraud credit card companies and their customers by fraudulently taking over credit card accounts and, using those accounts, making unauthorized purchases from high-end retailers.
Specifically, REID used publicly available information to obtain phone numbers for wealthy senior citizens. She then called her victims pretending to be a representative of a credit card company and claiming that the company needed information about the victim’s account. The victims then provided REID with their account information, including credit card numbers and passwords. REID then contacted the credit card company, pretending to be the victim. After providing all of the requested security information, she added a new phone number and address to the account. The address was typically an abandoned or foreclosed property near her home in New York. REID then used the compromised credit card accounts to order merchandise from high-end retailers and had the merchandise shipped to an address that she had previously added to the credit card account. After REID, or a “runner,” retrieved the merchandise, she sold it at a pawnshop or to another individual.
Through this scheme, REID stole the identities of more than 50 individuals and used their credit card information to purchase more than $1 million in merchandise. Victim credit card companies successfully thwarted approximately $3.8 million worth of REID’s attempted purchases.
REID pleaded guilty to one count of mail fraud, an offense that carries a maximum term of imprisonment of 20 years, and one count of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of two years. A sentencing date has not been scheduled.
REID has been detained since her arrest on February 5, 2017.
In October 2010, REID was convicted in the Eastern District of Kentucky of federal bank fraud and aggravated identity theft offenses, and was sentenced to 27 months of imprisonment and five years of supervised release. The convictions stemmed from a similar credit card takeover scheme that also defrauded victims of approximately $1 million.
REID, who was on supervised release while engaged in her most recent criminal conduct, faces an additional term of imprisonment if she is found to have violated the conditions of her supervised release.
This matter is being investigated by the U.S. Postal Inspection Service, Greenwich Police Department and Connecticut Financial Crimes Task Force, which also includes the U.S. Secret Service, Internal Revenue Service, Connecticut State Police and the Shelton, Stamford, Hartford, and Norwalk Police Departments. The U.S. Marshals Service has assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Long Island Convenience Store Owner and Clerks Plead Guilty to Drug TraffickingRead the Press Release
Earlier today, Osman Ak and Murat Ak pleaded guilty to drug trafficking charges before United States Magistrate Judge Steven I. Locke in federal court in Central Islip, New York. A third defendant in the indictment, Mehmet Akpinar, previously pled guilty to drug trafficking. The three defendants were arrested on September 28, 2017 in connection with a four-count indictment. The defendants admitted to selling K-2, an illegal controlled substance, out of Eyup Gas & Convenience Store, Inc., d/b/a VS Food Mart, in Medford, New York.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and George Beach, Superintendent, New York State Police (NYSP), announced the pleas.
According to court documents, the defendants trafficked K-2 or “spice” from the convenience store owned and operated by Osman Ak. The sales were made out of a cigar boxes hidden behind the cash register. The K-2 was packaged in glitter bags with cartoon and cartoon-like characters including “Dopey,” one of Disney’s Seven Dwarfs, and names like “OMG,” “Hayze Peachy King,” “Joker” and “Hayze Hawaiian Ultra.” K-2 is an illegal and dangerous DEA Schedule 1 drug with no medicinal use.
When they are sentenced, each of the defendants face up to 20 years’ imprisonment on the drug trafficking charge to which they pled guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
OSMAN AK
Holbrook, New York
Age: 45MURAT AK
Holbrook, New York
Age: 35MEHMET AKPINAR
Nesconset, New York
Age: 51E.D.N.Y. Docket No. 17-CR- 527 (DRH)(SIL)
Lawrence Man Pleads Guilty to Federal Cocaine ChargeRead the Press Release
BOSTON – A Lawrence man pleaded guilty today in federal court in Boston to a federal drug charge.
Hector Gomez, 38, pleaded guilty to one count of attempting to possess with intent to distribute cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Feb. 20, 2018. In December 2016, Gomez was arrested and charged along with five co-defendants: Juan Ulfany Mateo Soto; Angel Torres Leon; Maximo Rodriguez; Angel Figueras; and Wallington Garcia.
On Oct. 27, 2016, officers observed a cocaine transaction between Mateo Soto and Torres Leon. The officers followed the car in which Mateo Soto was transporting the cocaine after the transaction, stopped him, and towed the car because Mateo Soto did not have a valid driver’s license. The officers then found and seized six kilograms of cocaine from a backpack in the car.
Each of the remaining defendants, including Gomez, attempted to retrieve the cocaine that the officers seized. Specifically, Gomez conducted surveillance on the tow truck to identify law enforcement vehicles that might be in the vicinity and reported back to Mateo Soto. Gomez and another defendant then went to the tow yard in an attempt to retrieve the car and the drugs contained in a backpack to return to Mateo Soto.
Both Torres Leon and Figueras are scheduled to be sentenced on Dec. 14, 2017, after pleading guilty in June and July, respectively. Mateo Soto pleaded guilty in October and is scheduled to be sentenced Jan. 31, 2018.
The charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and a maximum of a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Laconia Man Pleads Guilty to Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Timothy Raxter, 53, of Laconia, New Hampshire, pleaded guilty in federal court today to possessing methamphetamine with intent to distribute and being a felon in possession of a firearm.
Court filings and statements made in court established that on January 23, 2017, Laconia Police executed a search warrant on Raxter’s vehicle, seizing a .40 caliber pistol and approximately 10 grams of “ice” methamphetamine. As a previously convicted felon, Raxter is prohibited from possessing firearms.
A sentencing hearing has been scheduled for February 15, 2018.
The case was investigated by the Police Departments of Gilford and Laconia in conjunction with the FBI New Hampshire Safe Streets Gang Task Force. The Task Force is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Hudson, Manchester, and Nashua. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Kaplan man pleads guilty to possessing firearms, ammunition after felony convictionsRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Kaplan pleaded guilty last week to possessing firearms and ammunition.
Micah J. Guillot, 33, of Kaplan, La., pleaded guilty Thursday before U.S. Magistrate Judge Patrick Hanna to one count of possession of a firearm by a convicted felon. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, a Lafayette police officer conducted a traffic stop of a vehicle being driven erratically on South Bertrand Drive on March 28, 2015. Guillot exited the vehicle wearing a ballistics vest. The officer later found ammunition in the vest. The officer also searched Guillot’s vehicle and found a .10 gauge shotgun, a .380 caliber handgun, .380 caliber ammunition, .22 caliber ammunition and .10 gauge shotgun ammunition. Guillot pleaded guilty September 18, 2014 to felony possession of controlled substances and September 20, 2012 to felony unauthorized use of an access card.
Guillot faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court did not set a sentencing date.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Jury Convicts Connecticut Woman of Bank Fraud, False Statement in a Passport Application, and Aggravated Identity TheftRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on November 7, 2017, a Burlington jury convicted Alison Yi Gu of Cheshire, Connecticut of three charges relating to her use of false identities. Specifically, the jury convicted Gu, who also went by the names Alison Ling, Yijing Gu, Ally Koo, Ai J. Chen, Ai Jen Chen, and Jing Shao, of (1) bank fraud, (2) making a false statement in an application for a U.S. Passport, and (3) aggravated identity theft involving the use of the Social Security Number and date of birth of another person. The verdict was returned following a one-week trial. Chief United States District Judge Christina Reiss presided over the trial.
According to the Superseding Indictment, between 2013 and September 2015, Gu devised and executed a scheme to defraud Bank of Bennington, First National Bank of America, Prime Lending, Discover Home Loans, and Emigrant Mortgage Company to obtain funds by submitting mortgage loan applications containing false information. The Indictment specified that the false information included misrepresenting Gu's identity, and altering bank statements. The Indictment further charged Gu with making a false statement in a passport application at the United States Passport Office in St. Albans, Vermont in March 2015, as well as using the identity of another person in the commission of that crime. The jury returned guilty verdicts on all three counts.
Following the jury's verdict, Chief Judge Reiss ordered Gu remanded to the custody of the United States Marshals Service.
Gu's sentencing is expected to occur in approximately four months, but is not yet scheduled. She faces a minimum sentence of two years, and a maximum term of thirty years' incarceration.
The conviction of Gu was the culmination of an investigation by the United States State Department, Diplomatic Security Service, working with the assistance of the Danbury, Connecticut Police Department.
Gu is represented by Lisa Shelkrot and Manisha Munshi of Burlington. The case was prosecuted by Assistant United States Attorneys Kevin J. Doyle and Michael P. Drescher.
Jefferson City Man Pleads Guilty to Illegal Firearm Stolen During Home BurglariesRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to illegally possessing a firearm that he stole during a series of home burglaries.
Brandon Davide Wilkerson, 22, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being an unlawful user of a controlled substance in possession of a firearm.
From approximately September to December 2016, residents of Callaway, Cole, Miller, Moniteau and Cooper Counties reported numerous and related residential burglaries that multiple county sheriff and city police departments investigated. Wilkerson was identified as one of the persons involved.
Wilkerson told investigators that he used methamphetamine for the past two years, and recently he used it every other day. Wilkerson admitted that had sold a stolen firearm to his methamphetamine dealer for $100 worth of methamphetamine.
On Jan. 4, 2017, a Jefferson City police officer saw the person identified as Wilkerson’s source of methamphetamine and arrested him. The officer searched his vehicle and found a Ruger 9mm pistol, which he admitted he had obtained from Wilkerson in exchange for methamphetamine.
In a separate but related case, Stephan Alben Whelan, 22, of Jefferson City, also has pleaded guilty to being an illegal drug user in possession of firearms. Whelan told investigators that he and other individuals were involved in multiple burglaries in the mid-Missouri area. He stated he was involved in so many burglaries that he could not remember where specific items were taken from and when they were taken. He traded the stolen items for methamphetamine. Law enforcement officers executed search warrants and recovered numerous stolen items, including several firearms that had been reported stolen.
Whelan admitted that he stole a Browning 12-gauge shotgun and a Henry Repeating Arms 30-30 caliber rifle from a residence in Lohman, Mo. Whelan traded the firearms, which were eventually recovered by law enforcement, for a quarter-ounce of methamphetamine. Whelan also admitted that he stole a Marlin 30-30 caliber rifle from a residence in Moniteau County, Mo. Whelan told investigators that he was on methamphetamine during the burglary, and after the burglary threw the rifle out the window of a car. The firearm was later recovered.
Under federal statutes, Wilkerson and Whelan each are subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Jefferson City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cole County, Mo., Sheriff’s Department and the Eldon, Mo., Police Department.
Isleta Pueblo Man Sentenced for Federal Misdemeanor Assault ConvictionRead the Press Release
ALBUQUERQUE – Abel A. Orozco, 38, an enrolled member and resident of Isleta Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to a term of time already served (approximately eight months of imprisonment) for his misdemeanor assault conviction and one year of supervised release.
Orozco was arrested on March 20, 2017, on a criminal complaint charging him with assaulting an Isleta Pueblo man by pushing him into a wall, striking and punching him in the body, chest and head, and threatening him with a log in Oct. 2016, on the Isleta Pueblo. According to the complaint, the victim suffered a fractured rib, pain to the right side of his head and an injured left shoulder as the result of the assault.
Orozco was indicted on April 11, 2017, and was charged with assault resulting in serious bodily injury on Oct. 2, 2016, on Isleta Pueblo in Bernalillo County, N.M.
On Aug. 4, 2017, Orozco pled guilty to a misdemeanor information charging him with assault by striking, beating or wounding. In entering the guilty plea, Orozco admitted that on Oct. 2, 2016, he assaulted the victim by striking and hitting him with his fists and elbows.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Michael D. Murphy.
Individual Taken into Custody After Committing Violent Crimes in Colorado SpringsRead the Press Release
DENVER – Miguel Lerma Cruz, age 37, aka Danny Ortega, has been formally charged by grand jury indictment with drug distribution and firearm related crimes following a violent carjacking and police chase, Acting U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debora Livingston announced. Cruz, who is in federal custody, has made his initial appearance, where he was read his rights as well as advised of the charges pending against him. A U.S. Magistrate Judge today ordered Cruz to be held without bond pending a resolution of his case.
Cruz was indicted by a federal grand jury in Denver on October 26, 2017. He appeared in U.S. District Court in Denver on November 2, 2017 and today, November 7, 2017.
According to court documents, on May 29, 2017, Colorado Springs Police Officers were dispatched following a report by a female of a disturbance at the El Ranchito Meat Market. The female stated that a male had threatened her and her husband inside the market. She was able to give authorities a description of the subject’s vehicle. When officers arrived they observed the suspect vehicle, a Dodge pickup truck, in the parking lot. When they went to contact the vehicle, the driver, later identified as Cruz, rammed into a marked police patrol vehicle, driving past other uniformed police officers and marked police vehicles while fleeing the scene. A high speed pursuit ensued.
During the pursuit, which occurred over a considerable distance through heavily populated areas of the city of Colorado Springs, Cruz refused to stop. The chase stopped when Cruz went through a red light hitting two vehicles, including a vehicle occupied by two elderly individuals, both of whom were injured and transported to the hospital. The Dodge pickup truck was disabled due to the crash. Cruz then exited the van with an assault type rifle and approached a woman in an Acura sedan. He ordered her out of the car at gun point, then fleeing the scene. Officers continued pursuit, but eventually could not locate Cruz.
Investigators learned Cruz had two vehicles in the El Ranchito Meat Market parking lot -- a silver Saturn sedan and the Dodge pickup truck. Both were searched by agents and officers. The stolen Acura was later located and searched after it was tied to Cruz by a palm print he left on the vehicle. A search of the Dodge yielded a 9 mm handgun stolen from a residence in Brattleboro, Vermont in 2013, approximately 289 grams of heroin, approximately 662 grams of methamphetamine, and up to $30,000 in cash. Inside the Saturn authorities found a Ruger mini-14 rifle, ammunition for a AK-47 as well as ammunition for a 12 gauge shotgun. They also found spent .40 shell casings that NIBIN hit to a shooting the month before.
Later Cruz was seen driving a white Camaro in Colorado Springs. He was surveilled at the 6800 block of Corporate Drive in Colorado Springs. The Colorado Springs Police Department Tactical Enforcement Unit went to the area and on June 1, 2017, took Cruz into custody. A search of the Camaro uncovered approximately $4,000 in cash and a AK-47 rifle. Cruz had prior convictions for Attempt to Distribute Heroin, Distribution of a Schedule 1 Controlled Substance, and assault, as well as three cases currently pending in state court for firearm and assault charges. Finally, the defendant had been convicted of Trafficking a Controlled Substance in Clark County, Nevada.
Cruz faces two counts of possession with intent to distribute a controlled substance, one count of use, carry and possess a firearm during a drug trafficking crime, one count of use, carry, possess and brandish a firearm during a drug trafficking crime carjacking, and possession of a firearm by a prohibited person. If convicted of all counts, the defendant faces a mandatory minimum of 32 years in federal prison.
The ATF and the Colorado Springs Police Department investigated this matter. The defendant is being prosecuted by Assistant U.S. Attorney Colleen Covell.
The defendant is presumed innocent unless and until proven guilty in a court of law.
Illegal Alien Pleads Guilty to Firearm and Drug ChargesRead the Press Release
Anderson, South Carolina---- United States Attorney Beth Drake stated that Gabriel Espitia Escandon, age 43, of Mexico City, Mexico, entered a guilty plea in federal court in Anderson to Being an Illegal Alien in Possession of a Firearm, in violation of Title 18 U.S.C. § 922(g)(5), and Possession with Intent to Distribute Methamphetamine, in violation of Title 21 U.S.C. § 841. United States District Judge Timothy M. Cain of Anderson accepted the guilty plea and will impose the sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on August 28, 2016, a Simpsonville Police Department officer pulled over a white F-150 driven by Gabriel Escandon for speeding. When asked for his license and registration, Escandon stated he was not a legal citizen and did not have a license. The officer arrested Escandon and searched the vehicle, finding a KelTec P32 in the driver side door pocket. The gun was loaded with three hollow point rounds. Escandon previously applied for and was denied entry into the United States. Escandon is a citizen of Mexico and is illegally present in the United States, therefore it is a crime for him to possess a firearm.
On October 6, 2016, an officer of the Greer Police Department pulled over the same white F-150. Escandon was again driving without a license, and the officer observed what appeared to be drugs on the floorboard. The officer deployed a K-9 unit, which alerted to the presence of narcotics. The officer searched the vehicle and found 26.45 grams of methamphetamine in a sock in a cup in the center console.
Ms. Drake stated that the maximum penalty Escandon could receive is 20 years imprisonment and a fine of $1,000,000 dollars. The case was investigated by agents of ICE - Homeland Security Investigations, Simpsonville Police Department, and Greer Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Harrison County man indicted on health care fraud chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man was indicted by a federal grand jury today on charges of health care fraud, United States Attorney William J. Powell announced.
Kenneth Boyles, age 52, was indicted on one count of “Health Care Fraud” and one count of “False Statement Related to Health Care Matter.” Boyles is accused of falsely reporting symptoms related to his service in the United States Army Reserves to the Veterans Health Administration in order to fraudulently collect more than $224,000 in benefits. The crime is alleged to have occurred from 2008 to 2017 in Harrison County.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Department of Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Harrison County man indicted for drug distribution and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man was indicted by a federal grand jury today on a charge of methamphetamine distribution and unlawful firearm possession, United States Attorney William J. Powell announced.
David Leon Turner, age 30, was indicted on one count of “Distribution of Methamphetamine” and one count of “Unlawful Possession of a Firearm.” Turner is accused of selling methamphetamine. Turner, having previously being convicted of three felonies, is also accused of possessing a 9mm caliber pistol. The crime is alleged to have occurred in Harrison County in May 2017.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Grant County residents sentenced for heroin distributionRead the Press Release
ELKINS, WEST VIRGINIA – Two Mount Storm, West Virginia, residents were sentenced today for heroin distribution, United States Attorney William J. Powell announced.
Amanda Lynn Bow, age 22, was sentenced to 96 months incarceration. Bow pled guilty to a one count information, charging her with “Distribution of Heroin - Aiding and Abetting” in August 2017. Bow admitted to distributing heroin in May 2016 in Grant County, West Virginia.
Cody Zane Stevenson, age 24, was sentenced to 96 months incarceration. Stevenson pled guilty to a one count information, charging him with “Distribution of Heroin - Aiding and Abetting” in August 2017. Stevenson admitted to distributing heroin in May 2016 in Grant County, West Virginia.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the cases on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Grant County Man sentenced for meth trafficking and firearm chargesRead the Press Release
ELKINS, WEST VIRGINIA – A Petersburg, West Virginia, man was sentenced today to 60 months incarceration for methamphetamine distribution and illegal possession of a firearm, United States Attorney William J. Powell announced.
Joseph Nathaniel Hartman, age 33, pled guilty to one count of “Distribution of Methamphetamine” and one count of “Unlawful Possession of a Firearm” in June 2017. The crimes occurred in August 2015 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police Bureau of Criminal Investigation, and the Grant County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Former postal supervisor from Akron sentenced to three years in prison for stealing a kilo of methamphetamine out of the mailRead the Press Release
Two former U.S. Postal employees were sentenced to prison for stealing packages containing marijuana from the U.S. mail and then selling the drugs, said U.S. Attorney Justin E. Herdman.
Rabih Kairouz, 29, of Akron, was sentenced to 37 months in prison.
Scott Gay, Jr., 33, of Canton, was sentenced to six months incarceration followed by six months of
house arrest.
Corey Turnbull, 26, of Ravenna, was sentenced to probation.
Anton D. Easter, Jr., 27, of Akron is scheduled to be sentenced next month.
Kairouz, Gay and Turnbull worked for the U.S. Postal Service. Kairouz and Turnbull worked as a supervisor at the Five Points station in Akron while Gay was a manager at the North Hill station, according to court documents.
Together, intercepted suspected drug parcels at U.S. Post Offices in Akron, opened the parcels, removed marijuana contained inside, sold the marijuana to Easter and shared the profits. This took place between February and May 2017, according to court documents.
Kairouz also had a kilogram of methamphetamine that he stole from the mail, according to court documents.
The investigation preceding the indictment was conducted by the U.S. Postal Service Office of Inspector General, the U.S. Postal Inspection Service and the Akron Police Department. The case is being prosecuted by Assistant U.S. Attorneys Henry F. DeBaggis and Teresa L. Riley.
Former Springfield YMCA Employee Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Springfield YMCA employee pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Benjamin Goodwin, 28, of Springfield, pleaded guilty before U.S. Magistrate Judge James C. England to the charge contained in an Aug. 15, 2017, federal indictment. Goodwin has been in federal custody since his arrest and remains in federal custody pending his sentencing hearing.
Goodwin, an employee of the Springfield YMCA at the time of the offense, admitted that he received and distributed child pornography over the Internet between June 11, 2016, and Aug. 3, 2017.
According to court documents, Goodwin initially came to the attention of law enforcement after the administrators of Chatstep submitted a Cybertipline Report regarding his use of its services to post images depicting child pornography. During the course of another investigation, an individual told investigators that he and Goodwin had been trading images depicting child pornography.
On Aug. 3, 2017, investigators contacted Goodwin outside his place of employment, the Springfield YMCA. Goodwin admitted that he had sent approximately 25 images depicting child pornography to the other individual and had received approximately the same number in return.
Under federal statutes, Goodwin is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Secret Service Agent Sentenced in Scheme Related to Silk Road InvestigationRead the Press Release
A former U.S. Secret Service Special Agent, who had been a member of the Baltimore Silk Road Task Force, was sentenced to prison today on charges of money laundering, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Brian J. Stretch of the Northern District of California, Chief Don Fort of the Internal Revenue Service Criminal Investigation (IRS-CI), and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Division and Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General, Houston Field Office.
Shaun W. Bridges, 35, of Laurel, Maryland, was sentenced to 24 months in prison by U.S. District Judge Richard Seeborg in San Francisco following his earlier guilty plea to one count of money laundering. Judge Seeborg ordered that the sentence be served consecutively to the 71-month sentence that Bridges is currently serving related to his 2015 conviction for a similar theft. Bridges was also ordered to forfeit approximately 1,500 bitcoin and other fiat currency, which is currently valued at approximately $10.4 million.
Bridges had been a Special Agent with the U.S. Secret Service for approximately six years in the Baltimore Field Office. Between 2012 and 2014, he was assigned to the Baltimore Silk Road Task Force, a multi-agency group investigating illegal activity on the Silk Road, a covert online marketplace for illicit goods, including drugs. Bridges’ responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify and prosecute targets of the Baltimore Task Force, including Ross Ulbricht, aka “Dread Pirate Roberts,” who ran the Silk Road from the Northern District of California.
Prior to reporting to prison to begin serving his sentence for the 2015 conviction, Bridges was arrested and taken into custody on new charges related to another theft of approximately 1,600 bitcoin from a digital wallet belonging to the U.S. government. According to admissions made in connection with his guilty plea, Bridges admitted to using a private key to access a digital wallet belonging to the U.S. government, and subsequently transferring the bitcoin to other digital wallets at other bitcoin exchanges to which only he had access. As part of his plea, Bridges agreed to turn over the stolen bitcoin to U.S. agents.
The case is being investigated by the FBI’s San Francisco Division, IRS-CI’s Washington, D.C. Field Office Cyber Crimes Unit and the Department of Homeland Security Office of the Inspector General in Washington D.C. The case is being prosecuted by Assistant U.S. Attorney William Frentzen of the Northern District of California and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section. Assistant U.S. Attorney David Countryman handled the asset forfeiture aspects of the case.
Former Secret Service Agent Sentenced in Scheme Related to Silk Road InvestigationRead the Press Release
SAN FRANCISCO – A former U.S. Secret Service Special Agent, who had been a member of the Baltimore Silk Road Task Force, was sentenced to prison today on charges of money laundering, announced U.S. Attorney Brian J. Stretch, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Chief Don Fort of the Internal Revenue Service Criminal Investigation (IRS-CI), Special Agent in Charge John F. Bennett of the FBI’s San Francisco Division, and Special Agent in Charge of the Department of Homeland Security Office of the Inspector General Houston Field Office David Green.
Shaun W. Bridges, 35, of Laurel, Md., was sentenced to 24 months in prison by U.S. District Judge Richard Seeborg in San Francisco following his earlier guilty plea to one count of money laundering. Judge Seeborg ordered that the sentence be served consecutively to a previous sentence that Bridges is currently serving. Bridges was also ordered to forfeit approximately 1,500 bitcoin and other fiat currency which has a current value of approximately $10.4 million.
Bridges had been a Special Agent with the U.S. Secret Service for approximately six years in the Baltimore Field Office. Between 2012 and 2014, he was assigned to the Baltimore Silk Road Task Force, a multi-agency group investigating illegal activity on the Silk Road, a covert online marketplace for illicit goods, including drugs. Bridges’ responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify and prosecute targets of the Baltimore Task Force, including Ross Ulbricht, aka “Dread Pirate Roberts,” who ran the Silk Road from the Northern District of California. In 2015, Bridges was arrested and taken into custody on charges related to the theft of approximately 1,600 bitcoin from a digital wallet belonging to the U.S. government. According to admissions made in connection with his guilty plea, Bridges admitted to using a private key to access a digital wallet belonging to the U.S. government, and subsequently transferring the bitcoin to other digital wallets at other bitcoin exchanges to which only he had access. As part of his plea, Bridges agreed to turn over the stolen bitcoin to U.S. agents.
The case is being investigated by the FBI’s San Francisco Division, IRS-CI’s Washington, D.C. Field Office Cyber Crimes Unit, and the Department of Homeland Security Office of the Inspector General in Washington D.C. The case is being prosecuted by Assistant U.S. Attorney William Frentzen and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section. Assistant U.S. Attorney David Countryman handled the asset forfeiture aspects of the case.
Former Newspaper Publisher, Mortgage Broker, Mortgage Lender and Real Estate Agent Convicted in $20 Million Mortgage Fraud SchemeRead the Press Release
A federal jury convicted a former Miami newspaper publisher, mortgage broker, mortgage lender and real estate agent after a three-week trial for leading a $20 million mortgage fraud scheme.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Marco Laureti, 46, of Sunny Isles Beach, was convicted of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 and seven counts of wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1343 (Case No. 16-60340-CR-Bloom(s)(Cohn)). Senior U.S. District Judge James I. Cohn presided over the trial. The defendant’s sentencing hearing is scheduled for January 25, 2018 at 9:30 a.m. At sentencing, the defendant faces up to thirty years’ imprisonment on each count, a $250,000 fine as to each count and restitution.
Felix Mostelac, 45, of Miami, Michelle Cabrera, 49, of Miami Lakes, Pedro Melian, 40, of Hialeah, were also charged in the scheme. Cabrera and Melian previously pled guilty to conspiracy to commit wire fraud and will be sentenced on November 17, 2017 by U.S. District Judge William P. Dimitrouleas (Case No. 16-60354-CR-Dimitrouleas). Mostelac is a fugitive at large and is believed to be living outside the United States.
According to evidence presented at trial, defendants Laureti, Mostelac, Cabrera and Melian were involved in a $20 million mortgage fraud scheme. Laureti was a former newspaper publisher and owner of Laureti Publishing Company and multiple companies, including Northview Equities LLC, Northview Real Estate LLC, Northview Capital LLC, Laureti Holdings Company, Laureti Media Group, Inc., ReTrade, Inc., and M4 Management LLC, in addition to being a licensed Florida real estate agent and formerly licensed Florida mortgage broker. Mostelac was Laureti’s associate and also the owner of several companies, including Mostelac Enterprises, Inc. and American Holdings Group. Cabrera owned Florida Elite Title & Escrow and served as the closing agent for these transactions. Melian also owned several companies, including Melian’s Investment Group.
At trial, the Government presented evidence that the defendants engaged in a fraud scheme involving a condominium complex located at 45 Hendricks Isle in Fort Lauderdale. Defendants Laureti, Mostelac, Melian and other co-conspirators made false and fraudulent statements to a financial institution on mortgage loan applications, including grossly inflating income and bank account balances. These defendants also made fraudulent representations on the closing statements for these multi-million dollar condominiums. Once these loans were approved, defendant Cabrera, at Laureti’s direction, diverted the loan proceeds to fund the cash the borrower was expected to bring to the property’s closing, as well as diverting additional monies from the loan proceeds to various companies owned by Laureti and Mostelac. The evidence showed Cabrera was paid $10,000 for each fraudulent transaction initiated by Laureti and Mostelac. Furthermore, Laureti and Mostelac utilized the same scheme on the mortgage loan applications and closing statements to purchase their own multi-million dollar residential properties in Miami Beach, including Laureti’s $6.9 million home and Mostelac’s $6.5 million dollar condominium. The defendants’ scheme defrauded the financial institution of approximately $20 million in disbursed mortgage loans.
Mr. Greenberg commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Randy Katz and Karen O. Stewart.
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.
Former IRS Employee Sentenced to 27 Months for Conviction on Aggravated Identity Theft and False Statement ChargesRead the Press Release
ALBUQUERQUE – Joan D. Mobley, 55, of Socorro, N.M., was sentenced today in federal court in Santa Fe, N.M., to 27 months in prison followed by three years of supervised release for her conviction on a false statement charge and two aggravated identity theft charges. Mobley also was ordered to pay restitution to the IRS in the amount of $39,738.32 and a $4,000.00 fine. Acting U.S. Attorney James D. Tierney and Cordale Lamb of Denver Field Division of the Treasury Inspector General for Tax Administration (TIGTA) announced the sentence.
Mobley is a former employee of the Internal Revenue Service (IRS). She began working for the IRS in 1986 and was a revenue agent at the IRS office in Albuquerque at the time she committed the crimes to which she pleaded guilty. As a revenue agent, Mobley was responsible for performing audits of small businesses and self-employed taxpayers.
On Jan. 3, 2014, a federal grand jury filed a 28-count indictment charging Mobley with 14 counts of making false statements and 14 counts of aggravated identity theft. According to the indictment, between Jan. 2011 and Dec. 2011, Mobley falsely stated and represented to the IRS that certain taxpayers either had consented to extending the time for assessing employment taxes or agreed to the collection and assessment of additional taxes. The indictment also alleged that Mobley used the identification of those taxpayers in making those false statements without obtaining consent.
On March 13, 2017, Mobley pled guilty to one false statements charge and two aggravated identity theft charges. In her plea agreement, Mobley acknowledged that while she was employed as a revenue agent for the IRS and was responsible for conducting audits of small businesses, she was assigned to audit a business located in California. Mobley acknowledged that, instead of completing the audit as required, she falsified official records to indicate that she had completed the audit. Mobley also acknowledged signing the name of the business’s president on the records even though she did not have permission to do so.
Mobley falsified these records knowing that they constituted false statements under federal laws and concerned matters that were within the jurisdiction of the IRS. One of the records falsified by Mobley was dated Jan. 10, 2011, and stated that a representative of the aforementioned California-based business had agreed to an extension of time to assess employment taxes. Another record, dated April 7, 2011, falsely stated that the business had agreed to the assessment and collection of additional taxes. Mobley falsified these records knowing that no representative of the business had agreed either to the extension or to the assessment and collection of additional taxes. She acknowledged falsifying the records while in New Mexico.
This case was investigated by the Denver Field Division of TIGTA and was prosecuted by Assistant U.S. Sean J. Sullivan.
Former BOP Employee Sentenced for Engaging in Sexual Acts with an InmateRead the Press Release
FORT WORTH, Texas — Matthew McGaugh, 49, of Hensley, Arkansas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 12 months in federal prison following his guilty plea in July 2017 to an indictment charging one count of sexual abuse of a ward, announced U.S. Attorney John Parker of the Northern District of Texas.
McGaugh, who is on bond, was ordered to surrender to the Bureau of Prisons on December 19, 2017.
According to documents filed in the case, on November 1, 2016, McGaugh, who was a Bureau of Prisons (BOP) Case Manager, engaged in multiple sexual acts with an inmate assigned to the BOP, Carswell Federal Medical Center in Fort Worth, Texas. At the time these sexual acts occurred, the inmate was under the supervisory authority of McGaugh.
The Department of Justice Office of the Inspector General investigated the case. Deputy Criminal Chief Assistant United States Attorney Alex Lewis prosecuted.
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Florida Man Admits Role in Conspiracy to Distribute More Than 45 Kilograms of Narcotics in New JerseyRead the Press Release
TRENTON, N.J. – A Miami man today admitted his role in a conspiracy to distribute over 45 kilograms of narcotics, including heroin, fentanyl, cocaine, and morphine, Acting U.S. Attorney William E. Fitzpatrick announced.
Sauro D. Estevez Figueredo, 49, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Count One of an indictment charging him with conspiracy to possess with intent to distribute more than one kilogram of heroin, five kilograms or more of cocaine, 400 grams or more of fentanyl, and morphine.
Figueredo was originally arrested with Edwin Alamo Jr., 22, Emmanuel Gonzalez, 33, both of Bronx, New York, Alberto Mora, 53, of Morriston, Florida, and Porfirio Peralta-Nunez, 38, of Jersey City, New Jersey, in February 2016. All five defendants have since pleaded guilty to their roles in the drug distribution conspiracy.
According to the documents filed in this case and statements made in court:
On Feb. 5, 2016, law enforcement observed a tractor trailer, driven by Figueredo and Mora, parked at an intersection near a store in Clifton, New Jersey. That afternoon, Gonzalez and Alamo drove to the tractor trailer and left with a suitcase given to them by Mora. Later, Peralta-Nunez arrived at the tractor trailer with two empty bags and left shortly afterwards with the bags filled.
Figueredo admitted that he collected narcotics and transported them via tractor trailer to New Jersey. He also admitted that Mora handed out a suitcase with 22 kilograms of heroin and afterwards, another conspirator took two bags containing fentanyl, morphine and heroin from the tractor trailer. He further admitted that there were two additional bags on the tractor trailer – one that contained 10 kilograms of fentanyl and one that contained 10 kilograms of cocaine – that would have been provided to other conspirators if not for law enforcement’s intervention.
The drug distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine. Figueredo’s sentencing is scheduled for Feb. 15, 2017.
The government is represented by Assistant U.S. Attorneys Meredith Williams and Elaine Lou of the Criminal Division in Newark.
Acting U.S. Attorney Fitzpatrick credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s guilty plea.
Defense Counsel: Michael D’Alessio Esq., West Orange, New Jersey
Five Individuals Charged in Foreign Bribery Scheme Involving Rolls-Royce Plc and Its U.S. SubsidiaryRead the Press Release
Charges were unsealed today against two former executives of Rolls-Royce plc and its subsidiaries (Rolls-Royce), a former Rolls-Royce employee, a former intermediary for Rolls-Royce in Kazakhstan and an executive of an international engineering consulting firm – all for their alleged participation in a scheme to pay bribes to foreign government officials for the benefit of a U.S.-based Rolls-Royce subsidiary, including to secure a contract to supply equipment and services to power a gas pipeline from Central Asia to China.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Inspector in Charge Regina Faulkerson of the U.S. Postal Inspection Service’s Criminal Investigations Group, Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office made the announcement.
Petros Contoguris, 70, a citizen of Greece residing in Turkey, was charged by an indictment filed in the Southern District of Ohio on Oct. 12, and unsealed today, with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to launder money, seven counts of violating the FCPA and 10 counts of money laundering. Contoguris is believed to be outside of the United States. James Finley, 66, a citizen of the United Kingdom residing in Taiwan, pleaded guilty on July 28, before Chief Judge Edmund A. Sargus Jr. of the Southern District of Ohio, to one count of conspiracy to violate the FCPA and one count of violating the FCPA. Aloysius Johannes Jozef Zuurhout, 53, of the Netherlands; Andreas Kohler, 53, of Austria; and Keith Barnett, 48, of Houston, Texas, each pleaded guilty to one count of conspiracy to violate the FCPA before Chief Judge Sargus on June 13; June 6; and Dec. 20, 2016, respectively.
“The charges announced today against executives, employees, and third parties affiliated with Rolls-Royce, is another example of the Criminal Division’s commitment to holding individuals – and not just corporations – accountable for violating the FCPA,” said Acting Assistant Attorney General Blanco. “Thanks to the coordinated efforts by our prosecutors and agents – working closely with their counterparts in Brazil and at the United Kingdom’s Serious Fraud Office, among others – these defendants, many of whom reside overseas, will face justice in this case, which represents another important step towards leveling the playing field for all ethical and honest businesses.”
“The charges unsealed today reflect the determination and ability of the United States to investigate and prosecute individuals who engage in foreign corrupt business practices, regardless of how sophisticated or far-flung the scheme may be,” said U.S. Attorney Glassman. “We can and will follow the evidence wherever it leads – from Columbus to Kazakhstan and beyond.”
“This type of sophisticated fraud scheme can cause immeasurable economic losses to competitive markets around the world,” said Inspector in Charge Faulkerson. “Anyone who engages in deceptive practices should know they will not go undetected and will be held accountable. The U.S. Postal Inspection Service has an extensive history of successfully investigating complex fraud and corruption cases. The collaborative investigative work conducted by Postal Inspectors and our domestic and international law enforcement partners illustrates our efforts to protect the United States and the international marketplace.”
“Today’s indictment and guilty pleas reveal that those associated with this corruption did knowingly conspire to break the law for their own personal gain,” said Assistant Director Richardson. “No one is above the law, so let today’s announcement be a warning to those who may try to perpetrate a similar scheme that the FBI will aggressively pursue those who attempt to bribe foreign officials for an unfair advantage in the global marketplace.”
“Today’s charges demonstrate the immense capabilities of the FBI’s Washington Field Office international corruption program and the global impact of the anti-corruption program,” said Assistant Director in Charge Vale. “The FBI is committed to holding accountable those who disrupt the level playing field to which companies in the United States and around the world are entitled.”
According to the indictment and informations unsealed today, Contoguris, the founder and chief executive officer of Gravitas & CIE. International Ltd. (Gravitas); Finley, a former senior executive in energy at Rolls-Royce; Barnett, a former regional director in energy at Rolls-Royce; Zuurhout, a former energy sales employee at Rolls-Royce; and Kohler, a managing director at an international engineering and consulting firm, and others, allegedly conspired to pay bribes to foreign officials in exchange for directing business to Rolls-Royce Energy Systems Inc. (RRESI). RRESI was a U.S.-based indirect subsidiary of Rolls-Royce plc, the United Kingdom-based manufacturer and distributor of power systems for the aerospace, defense, marine and energy sectors.
The indictment alleges that Contoguris, working with employees of an international engineering consulting firm (Technical Advisor), including Kohler, devised a scheme with Rolls-Royce executives and employees, including Zuurhout, Barnett and Finley, whereby Rolls-Royce would pay kickbacks to the Technical Advisor employees, and bribes to at least one foreign official, and disguise these payments as commissions to Contoguris’s company, Gravitas, in exchange for helping Rolls-Royce win contracts with Asia Gas Pipeline LLP (AGP).
According to the indictment, AGP was created to build and connect a gas pipeline between Central Asia and China, and the Technical Advisor purported to provide independent engineering consulting advice and other services to AGP. The indictment further alleges that after AGP awarded Rolls-Royce a contract in November 2009, worth approximately $145 million, Rolls-Royce made commission payments to Gravitas, and Contoguris then passed a portion of those commission payments onto the Technical Advisor employees knowing that they would share that money with a foreign official consistent with their corrupt agreement.
In pleading guilty, Finley, Barnett and Zuurhout admitted that they each participated in a conspiracy, going as far back as approximately 1999 and continuing into 2013, to engage commercial advisors who would use their commission payments from Rolls-Royce to bribe foreign officials in a number of countries to help Rolls-Royce secure an improper advantage and obtain and retain business with foreign governments and instrumentalities across the globe.
The charges announced today follow the announcement on Jan. 17, of a deferred prosecution agreement with Rolls-Royce plc and a more than $800 million total penalty as part of a global resolution to investigations by the Department of Justice and U.K. and Brazilian authorities related to the corrupt conduct. The agreement acknowledged Rolls-Royce’s cooperation in this case, including with the Department’s investigation into individuals, and significant remedial measures.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service and the FBI’s International Corruption Squad in Washington, D.C., investigated the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Trial Attorneys Kevin R. Gingras and Vanessa Snyder and Assistant Chief Ephraim Wernick of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Michael J. Marous and Jessica Kim of the Southern District of Ohio are prosecuting the case.
The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The United Kingdom’s Serious Fraud Office provided significant cooperation and assistance in this matter, as did law enforcement colleagues in Brazil, which both coordinated with the Department to reach simultaneous resolutions with Rolls-Royce. The Department also thanks its law enforcement colleagues in Austria, Germany, the Netherlands, Singapore and Turkey.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Federal jury convicts Lake Charles veterinarian, pharmacy in race horse doping conspiracyRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a federal jury found a Lake Charles veterinarian and a Nebraska pharmacy guilty of conspiring to sell an unapproved opioid drug 40 times more powerful than morphine for the purpose of improving the performance of race horses.
Kyle James Hebert, 42, of Lake Charles, La., and Kohll’s Pharmacy & Healthcare Inc. of Omaha, Neb., were found guilty of one count of conspiracy. Hebert was also found guilty of two counts of receipt of adulterated or misbranded drug with the intent to defraud and mislead; and one count of misbranding a drug while held for sale with the intent to defraud and mislead. Kohll’s Pharmacy was also found guilty of two counts of introduction of adulterated or misbranded drug in interstate commerce with intent to defraud and mislead. United States District Judge Donald E. Walter presided over the trial. The defendants’ trial started October 30 and ended on Monday, November 7, 2017 with the jury returning the guilty verdict after deliberating for three and a half hours.
Evidence admitted at trial revealed that from November 11, 2010 to December 2012 Hebert, Kohll’s Pharmacy & Healthcare Inc. of Omaha, Neb., which operated as Essential Pharmacy Compounding, and others conspired to distribute a synthetic form of the drug Dermorphin, which was then given to racehorses to improve their racing performance. Essential Pharmacy Compounding repackaged a synthetic form of the drug that it obtained from a California chemical company, labeled it as D-Peptide, and sold it to Hebert and other veterinarians. Hebert then put the drug into syringes and gave the loaded syringes to the racetrack trainers tasked with the horses’ care. Evidence at trial revealed that Demorphin is a strong painkiller that masks horses’ pain and any pre-existing injuries. Depending on dosage, it can also act as a stimulant when injected in horses. The Food and Drug Administration has not approved the drug for use in humans or animals.
“This office is committed to vigorous prosecution of unlawful practices by pharmacies and/or distributors of harmful drugs that put humans or animals at risk,” Van Hook stated. “We are pleased with this verdict.”
“FDA is responsible for protecting not only human consumers, but also animals, including race horses, from unscrupulous distributors of illegal drugs,” said Justin D. Green, FDA Office of Criminal Investigations’ Miami Field Office. “We will continue to pursue and bring to justice those who attempt to evade the law.”
Hebert faces five years in prison for the conspiracy count and three years in prison for each of the other counts. Kohll’s Pharmacy faces a substantial fine and other penalties based on its felony conviction. The court will set a sentencing date in the future.
The U.S. Food and Drug Administration, Homeland Security Investigations and Louisiana State Police conducted the investigation. Assistant U.S. Attorneys Joseph T. Mickel and David C. Joseph are prosecuting the case.
Federal Grand Jury Returns 166 Count Superseding Indictment Against Local Doctor Whose Medical Practice Is Charged with Unlawfully Prescribing Controlled Substantces Resulting in the Death of Six PatientsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 166-count superseding indictment charging Dr. Eugene Gosy, 56, of Clarence, NY, with the following crimes:
• One count of unlawfully conspiring to distribute and dispense, and to cause to be distributed and dispensed controlled substances, other than for a legitimate medical purpose and not in the usual course of professional practice, resulting in the death of six (6) of his patients;• Three counts of unlawfully distributing and dispensing controlled substances, including fentanyl, oxycodone, and tapentadol, each resulting in the death of a patient;
• 144 counts of unlawfully distributing and dispensing controlled substances, other than for a legitimate medical purpose and not in the usual course of professional practice;
• Two counts of conspiracy to commit healthcare fraud; and
• 16 counts of healthcare fraud.
The counts alleging unlawful controlled substance distributions resulting in death carry a mandatory minimum term of 20 years and a maximum of life imprisonment, a $1,000,000 fine or both. The remaining drug distribution counts carry maximum penalties, which, depending on the substance involved, range from one to 20 years imprisonment. While the maximum penalties for the healthcare fraud charges, vary between 10 years to life imprisonment.
The indictment alleges that in carrying out the conspiracy, Dr. Gosy and his employees at the Gosy Center, which included nurse practitioners and physician assistants working under Dr. Gosy’s direction and control, issued more prescriptions for controlled substances annually than any other prescriber or prescribing entity in New York State, including hospitals. Specifically, the indictment alleges that Dr. Gosy and his employees carried out their conspiracy by:
• prescribing controlled substances without conducting a physical examination and/or after conducting only a limited and inadequate physical examination;• prescribing controlled substances in ways that were likely to cause, and did cause, dependence and addiction, and that contributed to existing addictions;
• issuing prescriptions for controlled substances in dosages and/or in combinations dangerous to the health and safety of the patient;
• issuing prescriptions for controlled substances despite indications that patients were abusing and misusing the prescribed controlled substances;
• prescribing controlled substances without monitoring or using objective treatment information;
• recommending a course of treatment, including the prescription of controlled substances, which caused patients to become so addicted to opioid drugs that some eventually utilized heroin and other street drugs, in order to satisfy their addiction;
• issuing prescriptions for controlled substances to patients despite knowing that such patients had overdosed, or had otherwise been hospitalized for conditions relating to misuse of controlled substances;
• continuing to prescribe controlled substances in the same manner, and failing to adapt practices to prevent additional deaths and overdoses, despite having notice that treatment they were following had resulted in obvious drug-seeking behavior and addiction; numerous patient overdoses; and patient deaths;
• signing death certificates, in the absence of an autopsy or medical examination, for deceased patients to whom Gosy and/or his employees had prescribed controlled substances despite aberrant behaviors;
• recommending a course of treatment, including the prescribing of controlled substances, which caused the death of at least six individuals, and contributed to the deaths of others;
• utilizing a telephonic patient prescription renewal process, whereby patients could obtain prescriptions for Schedule II, III and IV controlled substances that were prepared by persons who were not medically trained and issued by mid-level providers who had inadequate knowledge about the prescription and the patient, and without adequate review of the prescription and the patient’s chart;
• Dr. Gosy pre-signing blank prescriptions and permitting other persons to fill out the remaining information for the prescription, when he would leave the Buffalo area for extended periods;
• Dr. Gosy failing properly to review and sign his own patient file notes, and arranging for other, non-medical, personnel to sign said patient file notes, to make it appear as if he had reviewed them;
• Dr. Gosy failing properly to review patient file notes/reports prepared by mid-level providers working under his supervision and working in collaboration with him, and arranging for other, non-medical, personnel to sign said patient file notes, to make it appear as if he had reviewed them;
• failing adequately to review records provided to the office from other providers, and failing to obtain a complete patient history and information about present illness and conditions;
• prescribing controlled substances to individuals while failing to refer the patient to and/or ensure compliance with drug addiction treatment despite aberrant behaviors, and requests from patients and/or their family members for help with addiction;
• prescribing methadone to individuals exhibiting aberrant behaviors, outside of a methadone clinic setting, and without employing additional safety precautions or referring the patient to addiction treatment;
• Dr. Gosy, beginning in 2008, circumventing state and federal regulations by prescribing buprenorphine for the treatment of narcotics addiction, improperly using his regular DEA number, and sometimes labeling the prescriptions as for “pain management,” even when the drug was being prescribed primarily for the purpose of treating narcotics addiction;
• Dr. Gosy issuing prescriptions to patients for buprenorphine, a Schedule III controlled substance, for the treatment of narcotics addiction, without having completed the required medical training course in order to be a “qualifying physician” to treat narcotics addiction;
• Dr. Gosy failing to complete training requirements, including Continuing Medical Education courses, Worker’s Compensation training, and Infectious Disease Control training, and instead requiring members of his office staff to take the online courses purporting to be the defendant; and
• Dr. Gosy engaging in prescribing patterns whereby high-risk patients that had run out of their prescribed opioids were given buprenorphine until Dr. Gosy could again prescribe other opioids.
According to the indictment, other practices adopted and used in defendant Gosy’s office included the following:
• Mid-level providers (Physician Assistants and Nurse Practitioners) were encouraged to maximize volume of patients seen. Providers who saw certain volumes of patients received monetary bonuses, and/or gifts. Providers who saw less patients were threatened with pay cuts. Providers also earned credit towards bonuses for performing certain, more lucrative procedures on patients.• Beginning in 2012, a “script line” was established which allowed patients seeking prescriptions, who were not scheduled for an office visit, to call and request a prescription. The “script line” was attended to by individuals with no medical training or certification. They were responsible for drafting the requested prescriptions with the proper drug and dosage, checking the patient’s file for “alerts,” and the New York State iStop program, a Prescription Monitoring Program. Each week a mid-level provider was designated to sign all, or almost all, prescriptions requested through the “script line.” This typically amounted to hundreds of prescriptions per day, many of which were for patients whom the practitioner had never seen and/or with whom the practitioner had little or no familiarity.
• A system was in place for ordering urine drug tests whereby, once the test was ordered, an employee other than the treating practitioner would typically fill out the request form for the laboratory. As a result, the drug screens often tested for the presence or absence of drugs other than those actually prescribed to the patient. However, as part of the usual course of medical practice, urine drug tests should have been ordered and reviewed in consultation with the patient’s medical file, including history and list of current prescribed medications. This is because urine drug testing provided valuable objective information to assist in diagnostic and therapeutic decision making, provided confirmation of compliance with the treatment plan, and provided indication of overutilization of prescribed drugs, diversion/non-use of prescribed drugs, the use of prescription drugs not prescribed to a particular patient, and/or the use of alcohol or illicit street drugs.• As with the “script line,” toxicology results, including urine drug screens, were reviewed by a mid-level provider, many of whom had never seen the patient and/or with whom the practitioner had little or no familiarity. As a result, tests were often labeled as “consistent,” and not given appropriate attention, even when the tests showed the presence of a non-prescribed drug, or the lack of a prescribed drug.
• Patient records often contained incorrect or insufficient information to justify a diagnosis and warrant treatment. Mid-level providers frequently dictated their office notes, failed to review their notes after transcription, and “batch signed” large quantities of notes without review. In addition, Dr. Gosy rarely, if ever, signed his own notes, and arranged for others to affix his signature to office notes and patient files, in order to facilitate more expeditious billing.
“Today’s superseding indictment represents the first time that a physician in the Western District of New York has been alleged to be criminally responsible for unlawfully prescribing drugs which resulted in the death of a patient,” noted Acting U.S. Attorney Kennedy. “Sadly, the superseding indictment alleges that more than one patient succumbed to the inadequate and unlawful treatment they received at the hands of Dr. Gosy and those who worked for him. While today’s indictment does not represent a panacea, it does provide a powerful antidote directed at one of the root causes of the opioid epidemic.”
DEA Special Agent-in-Charge James Hunt stated, “At the height of diverted prescription drug abuse, Dr. Gosy’s clinic prescribed more controlled substances than several major New York Hospitals, and is now being charged with causing the death of six individuals. Today’s charges cannot bring back the lives of those who died, but is a message to traffickers and rogue doctors that their actions have irrevocable consequences. The DEA’s highest priority is arresting and dismantling the largest opioid traffickers, Dr. Gosy being one of them.”
"The grand jury's superseding indictment exposes Gosy's lack of concern for the true health of his patients," said FBI Special Agent-in-Charge Adam S. Cohen. "Gosy did not work to heal all of those who struggled with pain, rather he betrayed his patients’ trust by putting his own personal gain ahead of their health and well-being. The FBI is committed to working with our partners on the front lines of the fight against heath care fraud and opioid addiction."
“Prescription drug fraud is a crime fueled by greed that damages this country, community by community. We rely on doctors to be part of the prescription drug abuse solution – not part of the problem,” said Special Agent-in-Charge Scott J. Lampert of the HHS Inspector General’s New York Office. "Today’s indictment shows our determination to work closely with our law enforcement partners to hold irresponsible doctors accountable for their actions."
The superseding indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in- Charge, New York Field Division; the Federal Bureau of Investigation’s Western New York Health Care Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent-in-Charge Scott Lampert; the Army National Guard - New York National Guard Counterdrug Task Force, under the direction of Lt. Col. Nicholas Dean; the New York State Department of Financial Services, under the direction of Maria T. Vullo, Acting Superintendent; the New York State Office of the Workers’ Compensation Fraud Inspector General, under the direction of Inspector General Cathy Leahy Scott; and the New York State Bureau of Narcotics Enforcement.
The case was presented to the grand jury by Assistant United States Attorneys Maura K. O’Donnell and Patricia Astorga, who together are prosecuting the case for the United States.
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.Eden Woman Sentenced for Carjacking and Firearms OffenseRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced KYARA NICOLE JONES, 21, of Eden, North Carolina, to 108 months of imprisonment followed by 5 years of supervised release and ordered to pay $4,477.07 in restitution.
On January 12, 2017, JONES pled guilty to carjacking and using, carrying, and brandishing a firearm during and in relation to a crime of violence and possessing and brandishing a firearm in furtherance of a crime of violence. According to the Indictment and information in the public records, on July 31, 2015, JONES and her codefendant David Earl Gill, Jr., forced entry into a residence in Louisburg, North Carolina. Gill was armed with a sawed off shotgun and JONES was armed with a golf club. During the carjacking, JONES violently struck the victim in the face multiple times with the golf club causing permanent injury. JONES and Gill forced the homeowner into a closet, barricaded the door with furniture, and took the homeowner’s vehicle. Gill was previously sentenced to 216 months for his role in this offense on September 12, 2017.
JONES and Gill continued their crime spree in the stolen vehicle throughout multiple states. On August 5, 2015, law enforcement officers in McIntosh, Georgia arrested JONES and Gill when they located them driving the stolen vehicle from Louisburg, North Carolina.
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 investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Franklin County Sheriff’s Office, Rockingham County Sheriff’s Office, the McIntosh, Georgia, Sheriff’s Office, and the Henry County, Georgia, Police Department. Assistant U.S. Attorney Jane Jackson prosecuted the case for the Eastern District of North Carolina.
Easton, PA Man Charged with False Statements to Federal Firearms LicenseesRead the Press Release
Nico Trevorsaya Braden, 28, of Easton, PA, was charged today by indictment with three counts of making false statements to federal firearms licensees announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about various dated between April 16, 2016 and May 5, 2016, Jonathan William Vazquez purchased seven firearms from three different federal firearms licensees, and in doing so, knowingly made false statements pertaining to information that the law requires the licensees keep.
If convicted of the charges, defendant faces a maximum sentence of 15 years’ imprisonment. He also faces a maximum period of supervised release of 3 years, a $750,000 fine, a $300 special assessment, restitution, and forfeiture of the firearms involved.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and is being prosecuted by Assistant United States Attorney Sarah T. Damiani.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Drug Enforcement Administration collects record number of unused pills as part of its 14th Prescription Drug Take-Back DayRead the Press Release
WASHINGTON – Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds – 456 tons – of potentially dangerous expired, unused and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
In Alabama, DEA collected more than 7,000 pounds – 3.5 tons – of unused and unwanted prescription drugs for disposal at its more than 52 collection sites across the state.
Now in its eighth year, this event continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action came just days after President Donald J. Trump announced the mobilization of his entire administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“In the midst of the worst drug crisis in American history, drug abuse prevention has never been more important,” said Attorney General Jeff Sessions. “And at the Department of Justice, it’s what we do every day. By taking dangerous drugs off of our streets, we keep addiction from spreading. One of the most important ways we do that is through the DEA’s semi-annual Prescription Drug Take Back Days. The latest Take Back day was the most successful yet, safely disposing of a record amounts of drugs. I have no doubt that will save lives. At a time like this, this event is having more of an impact than ever. I want to thank all of our local law enforcement partners who helped at all 5,300 collection sites to make this possible – and everyone who participated. They're helping us end this crisis one pill at a time.”
“Properly disposing of pills left in home medicine cabinets means fewer pills making it into the hands of young people experimenting with drugs, possibly leading to more drug abuse and possible addiction,” said Northern District of Alabama U.S. Attorney Jay E. Town. “The success of DEA’s fall Take-Back indicates people are learning how dangerous the abuse of prescription pills, particularly opioid painkillers, can be and are taking the right step to reduce the amount of pills that make it onto the streets,” he said.
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting DEA Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
“I am pleasantly surprised with the results of our efforts during the National Prescription Drug Take-Back Day,” said DEA Assistant Special Agent in Charge Bret Hamilton in Alabama. “The fall event has historically been slightly less effective than the spring event but not this year. Hopefully this means the word is getting out about the dangers of narcotics being left readily available, tempting our loved-ones with possible life-altering addiction,” he said. “We can never be too safe with highly addictive opioids. Get them out of your house.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines – flushing them down the toilet or throwing them in the trash – posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is April 28, 2018.
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Drug Enforcement Administration Collects Record Number of Unused Pills as Part of its 14th Prescription Drug Take Back DayRead the Press Release
Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
Now in its 8th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“In the midst of the worst drug crisis in American history, drug abuse prevention has never been more important,” said Attorney General Jeff Sessions. “And at the Department of Justice, it’s what we do every day. By taking dangerous drugs off of our streets, we keep addiction from spreading. One of the most important ways we do that is through the DEA’s semi-annual Prescription Drug Take Back Days. The latest Take Back day was the most successful yet, safely disposing of a record amounts of drugs. I have no doubt that will save lives. At a time like this, this event is having more of an impact than ever. I want to thank all of our local law enforcement partners who helped at all 5,300 collection sites to make this possible—and everyone who participated. They're helping us end this crisis one pill at a time.”
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
DEA’s next Prescription Drug Take Back Day is April 28, 2018.Drug Enforcement Administration Collects Record Number of Unused Pills During Its 14th Prescription Drug Take Back DayRead the Press Release
Memphis, TN –U.S. Attorney D. Michael Dunavant, joined the Drug Enforcement Administration (DEA) on October 28, 2017 for its 14th National Prescription Drug Take Back Day. The biannual event was held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including at Kroger, 7615 Highway 70 Bartlett, TN. That one-day event made it convenient for the public to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs. Authorities collected 226 lbs. of prescription drugs at the Kroger location.
Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its partners a record-setting 912,305 pounds – 456 tons – of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event.
"Our office was pleased to partner with DEA for this important cause. The President recently announced mobilizing his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency. With the opioid epidemic at an all-time high, we must take advantage of every opportunity to rid our communities of drugs that destroy the lives of our fellow citizens," said D. Michael Dunavant, U.S. Attorney, Western District of Tennessee.
Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
DEA’s next Prescription Drug Take Back Day is April 28, 2018.
For more information or to locate a collection site near you, go to the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov where you can search by zip code, city or state.
Drug Enforcement Administration Collects Record Number of Unused Pills as Part of Its 14th Prescription Drug Take Back DayRead the Press Release
The public returns record number of potentially dangerous prescription drugs
WASHINGTON – Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
DEA’s St. Louis Division, which covers Missouri, Southern Illinois, Kansas, Iowa, Nebraska and South Dakota, collected 76,294 pounds—38 tons of potentially dangerous expired, unused and unwanted prescription drugs for disposal at its more than 500 collection sites. Iowa’s 112 sites received a total of 11,526 pounds of drugs.
Now in its eighth year, this event continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is April 28, 2018.
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Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Drug Enforcement Administration and Northern District of Oklahoma United States Attorneys’ Office Report Record Number of Unused Pills as Part of Its 14th Prescription Drug Take Back DayRead the Press Release
TULSA, Okla.— DEA’s Tulsa Office, which covers the Northern District of Oklahoma, collected 904 lbs. pounds of potentially dangerous expired, unused and unwanted prescription drugs for disposal at its ten collection sites. This represents an increase of over 300% from collections received on April 30, 2016.
United States Attorney R. Trent Shores stated "Prosecution is one way - but not the only way - to battle the opioid epidemic. Prevention and education are also key. I am pleased to see that Oklahomans took advantage of this opportunity to safely dispose of expired and unused prescription drugs sitting in their homes. I am thankful to the DEA and our local law enforcement partners for making drug take back day a success."
Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
Now in its 8th year, this event continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands, five of which were in the Northern District of Oklahoma. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is April 28, 2018.
District Man Sentenced to 10-Year Prison Term on Narcotics and Firearms Charges Relating to His Operation of an Open-Air Drug MarketRead the Press Release
WASHINGTON – Marques Henderson, 37, of Washington, D.C., was sentenced today to ten years in prison on narcotics and firearm offenses stemming from his operation of an open-air drug market in Southeast Washington, announced U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Henderson pled guilty in May 2017, in the U.S. District Court for the District of Columbia, to one count of unlawful distribution of cocaine base and using, carrying, and possessing a firearm in furtherance of a drug trafficking offense. He was sentenced by the Honorable Tanya S. Chutkan. Upon completion of his prison term, Henderson will be placed on five years of supervised release.
The government’s evidence established that Henderson, known on the street as “DA BEAST,” was the subject of investigations by both the FBI and MPD and that he sold PCP and crack cocaine in the 300 block of Ridge Road SE with his base of operations at 359 Ridge Road. In the course of the investigation, law enforcement seized five firearms, numerous rounds of ammunition, distribution quantities of PCP and crack cocaine, and numerous types of drug paraphernalia.
As part of his plea agreement, Henderson acknowledged selling PCP and crack cocaine to an MPD undercover officer on four separate occasions and having both PCP and crack cocaine on his person with a loaded firearm when arrested on June 20, 2016, by the FBI.
At the time of his arrest, Henderson was on supervised release for three separate felony cases in the Superior Court of the District of Columbia. He now faces formal revocation of his supervise released and additional incarceration, separate from the above-referenced sentence, from the U.S. Parole Commission.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of the FBI/MPD Safe Streets Task Force in shutting down Henderson’s drug trafficking operation. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Christopher Macchiaroli and Anthony Scarpelli of the Violent Crime and Narcotics Trafficking Section and Paralegal Specialist Candace Battle.
District Man Pleads Guilty to Two Sexual Assaults, Admits Attacking Woman and 11-Year-Old GirlRead the Press Release
WASHINGTON - Joseph Ramsey, 21, of Washington, D.C., pled guilty today to charges stemming from two sexual assaults, including an armed attack on a 25-year-old woman in September 2012 and another assault on an 11-year-old girl in March 2015, announced U.S. Attorney Jessie K. Liu.
Ramsey pled guilty in the Superior Court of the District of Columbia to charges of first-degree sexual abuse while armed and first-degree child sexual abuse. The plea, which is contingent on the Court’s approval, calls for an agreed-upon prison term of 25 years. Once released from prison, Ramsey will be required to register as a sex offender for the remainder of his life. He also could be placed on supervised release for the rest of his life. The Honorable Judith Bartnoff scheduled sentencing for Jan. 26, 2018.
According to the government’s evidence, the first attack took place on Sept. 6, 2012, at approximately 11:15 p.m. The victim, 25, was walking home from the Deanwood Metro station. Ramsey approached her as she turned onto 45th Place NE and as she walked into an alley leading to the rear of her home. He pulled out a black handgun as he ran towards her. Ramsey then forced her onto her knees and sexually assaulted her at gunpoint. The victim reported the assault immediately and was transported to Washington Hospital Center for a Sexual Assault Nurse Examination (SANE), which included collection of forensic evidence.
In the second assault, in the early evening of March 1, 2015 an 11-year-old girl encountered Ramsey in the 3300 block of Stanton Road SE. She and the defendant went into a nearby apartment building, and he sexually assaulted the child on the basement landing. She immediately reported the assault and was transported to Children’s National Medical Center for an examination, which included collection of forensic evidence.
Forensic analysis of the evidence collected following the two assaults revealed that the same unknown male DNA profile was found on the biological material in both cases. Detectives with the Metropolitan Police Department’s Sexual Assault Unit and Youth Investigation Division developed the defendant as a suspect in these assaults and obtained a warrant to collect a DNA sample from him. Forensic analysis revealed that Ramsey’s DNA profile matched the unknown male DNA profile found in the sex kits collected following both assaults. Ramsey was charged in this case in February 2016 and has been in custody ever since.
In announcing the plea, U.S. Attorney Liu praised the work of officers from the Metropolitan Police Department’s Sexual Assault Unit and Youth Investigation Division. She expressed appreciation to Deputy U.S. Marshals William Straw and Justin Bankert, of the U.S. Marshals Service, as well as to Bode Cellmark Forensics. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Litigation Technology Specialist Leif Hickling; Contract Specialist Sallie Rynas; David Foster, LaJune Thames, and Katina Adams-Washington, all of the Victim/Witness Assistance Unit; Paralegal Specialists D’Yvonne Key, Angelina Slagle, Tiffany Jones, Michelle Wicker, and Jason Manuel, and Victim/Witness Advocate Veronica Vaughan.
Finally, U.S. Attorney Liu commended Assistant U.S. Attorneys Julianne Johnston, Sumit Mallick, and Jason Park, who investigated and prosecuted this case.
Deportee Sentenced to Prison for Illegal ReentryRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Victor Bermudez-Ruiz (38), a Mexican national, to the statutory maximum penalty of two years in federal prison for illegally reentering the United States after deportation. He pleaded guilty on June 22, 2017.
According to court documents, since 2008, Bermudez-Ruiz illegally entered the United States at least seven times, after being deported. He has been convicted twice for illegal entry in other districts.
This case was investigated by U.S. Customs and Border Protection’s Border Patrol. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.
Delaware County Man Sentenced to 10 Years for Running Tax Fraud SchemeRead the Press Release
Acting United States Attorney Louis D. Lappen today announced that yesterday, November 6, 2017, United States District Court Judge Harvey Bartle, III, sentenced Mohamed Mansaray, 41, of Springfield, Pennsylvania, to 120 months’ imprisonment for conspiring to defraud the Internal Revenue Service, aiding and abetting the preparation of false federal income tax returns, wire fraud, and aggravated identity theft. Mansaray, a former social worker, was the owner of Medman’s Financial Services, a tax preparation service with offices in Philadelphia. Medman’s filed numerous false federal income tax returns which generated fraudulent tax refunds, some as large as $9,000. The defendant and his co–conspirators, other tax preparers at Medman’s, obtained stolen personal identity information of foster children and used that information as fraudulent dependents on numerous income tax returns prepared for Philadelphia clients. The stolen identities were purchased from Gebah Kamara, a former Catholic Social Services employee, who was sentenced to a 30-month prison term last week by Judge Bartle. Kamara was paid approximately $200 to $300 for each child’s identity that was included on an income tax return accepted by the IRS for processing. Mansaray charged clients a fee of as much as $800 for fraudulently including a false dependent on an income tax return. Over 300 foster children’s identities were stolen and misused during the scheme.
Mansaray was first charged with conspiring to defraud the Internal Revenue Service and aiding and abetting the preparation of false federal income tax returns in May 2013. Mansaray pled guilty to those charges in July 2014. Additional investigation showed that after he pled guilty Mansaray continued to prepare fraudulent income tax returns for clients. Mansaray’s bail was revoked and he was imprisoned in May 2016, after he was charged again in April 2016 with numerous additional counts of aiding and abetting the preparation of false federal income tax returns, wire fraud, and aggravated identity theft. Mansaray pled guilty to those charges in March 2017.
Mansaray was ordered to pay $5,277.041 restitution for the loss to the Internal Revenue Service on the false income tax returns he prepared. This case was investigated by the Internal Revenue Service, Criminal Investigation Division, the City of Philadelphia Office of the Inspector General, and the Social Security Administration OIG- Office of Investigations, and was prosecuted by Assistant United States Attorney Paul L. Gray and former Assistant United States Attorney Karen M. Klotz.
Dangerous Sex Trafficker of Young Women Sentenced to 33 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – On Monday, November 6th, U.S. District Judge Marco Hernandez sentenced Taquarius Kaream Ford, 38, of Portland, Oregon, to 33 years in federal prison followed by a lifetime of supervised release. On December 21, 2016, after a jury trial, Ford was found guilty of multiple counts, including Conspiracy to Commit Sex Trafficking by Force, Fraud, or Coercion and Sex Trafficking by Force, Fraud, or Coercion.
Between 2008 and 2013, defendant Taquarius Ford (a/k/a "Cameron Ford") traveled around the United States and recruited 40 young women with promises of "modeling" careers, when in fact, his plan involved exploiting them in the commercial sex industry. Defendant met these young women in suburban shopping malls, usually in small towns. He lured them in by posing as a successful modeling executive from Beverly Hills who had connections to famous celebrities. He shared photographs of himself standing next to famous people and he urged his recruits to show their family and friends his business card and his "Victory P.R." website.
Ford convinced his recruits to travel to Los Angeles, where he wined and dined them in Hollywood, took them to red carpet events, and introduced them to television stars. Next, Ford made promises of professional photo shoots to kick-start their modeling careers, but first, there was a catch. Ford explained to his recruits that if they wanted to become models, they must first start at the bottom and work their way up; they needed to engage in some "escorting" work for him in order to continue on the path towards a successful modeling career. Ford used various techniques to maintain control over these recruited women and to cause them to engage in commercial sex acts, including relying on his female co-defendant to reassure them, making promises of fame and fortune, isolating them, using violence, rape and sexual assault. Even after the women escaped from him, defendant continued to terrorize them and their family members with threats and blackmail.
"This investigation started with an alert hotel employee calling the Port of Portland Police concerned about prostitution activity. As a result of that call, a young courageous victim was rescued. Through the efforts of the brave young women who came forward to testify and the diligent pursuit of justice by the law enforcement investigators, the community will now be protected from this predator" said US Attorney Billy J. Williams. "This case is a cautionary tale for young women and families about the manipulative techniques used to ensnare young unsuspecting victims into sex trafficking. I would like to say this is an isolated incident, but tragically it is becoming all too common and the information we learned through this investigation should be widely shared as a warning".
"Taquarius Ford promised those victims a future filled with bright lights and big money, but that dream quickly turned to the stuff of nightmares: rapes, beatings and threats against loved ones," said Renn Cannon, Special Agent in Charge of the FBI in Oregon. "Those victims deserve justice, and the FBI's Child Exploitation Task Force ensured they got it. I want to thank the Port of Portland as well as the Tigard Police Department and all of our task force partners on the CETF for ensuring that Ford will spend many years behind bars."
This case was investigated by the Port of Portland who first brought the case to the FBI’s attention, and a Tigard Police detective who serves as a task force officer on the FBI's Child Exploitation Task Force (CETF) who led this investigation. Portland FBI's CETF consists of agents and Task Force Officers from Beaverton PD, Portland Police Bureau, Tigard PD, Hillsboro PD, and Clackamas County Sheriff's Office. The FBI's Child Exploitation Task Force is committed to locating and arresting those who prey on children, as well as recovering underage victims of sex trafficking and child pornography. Assistant U.S. Attorney Leah K. Bolstad and Special Assistant U.S. Attorney J.R. Ujifusa prosecuted the case in federal court.