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22 December 2017
Uzbek National Living in New Britain Charged with Immigration OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, announced that SIDIKJON MAMADJONOV, 31, a citizen of Uzbekistan residing in New Britain, was arrested today on a criminal complaint charging him with immigration offenses.
MAMADJONOV appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in court documents, MAMADJONOV immigrated to the U.S. in February 2009 and became a lawful permanent resident in September 2010. On September 8, 2014, MAMADJONOV submitted to U.S. Citizenship and Immigration Services an Application for Naturalization, Form N-400.
It is alleged that, on November 20, 2017, in an interview with the FBI, MAMADJONOV stated that on a trip to Turkey in May 2013, he was informed that his brother Saidjon had died in May or June 2013 while fighting in Syria with the “Nusra” group, which was affiliated with ISIS. When MAMADJONOV returned from Turkey, he received a FedEx package that contained what he believed to be Saidjon’s iPhone. The iPhone contained several videos and photographs depicting Saidjon in Syria. MAMADJONOV recalled a video in which Saidjon stated, “Join us brother, we are here.” Also contained on the phone were photographs of Saidjon cleaning weapons in military dress while armed with a weapon, as well as a photograph of Saidjon’s dead body and his bloodied face.
The complaint alleges that in FBI interviews on May 14 and May 29, 2014, and on November 28, 2014, MAMADJONOV responded to questions about the trip he took to Turkey in May 2013, and questions about his brother, Saidjon Mamadjonov. During all three interviews, MAMADJONOV stated that Saidjon Mamadjonov was still alive when he knew he was dead.
It is further alleged that in an FBI interview on August 17, 2016, MAMADJONOV stated that he did not know the whereabouts of Saidjon, had not overheard any discussions of Uzbeks in the U.S. going over to Syria to fight, and was not aware of any Uzbeks travelling to Syria.
It is alleged that in response to Part 11, Question 10 of the Form N-400 MAMADJONOV submitted in September 2014, “Have you ever been a member of, or in any way associated (either directly or indirectly) with: C. A terrorist organization?” MAMADJONOV responded “No.” Also, in response to Part 11, Question 31 of Form N-400, “Have you ever given any Government official information that was materially false, fraudulent or misleading?” MAMADJONOV responded “No.” MAMADJONOV signed the form below the statement “I certify, under penalty of perjury under the laws of the United States of America, that this application, and the evidence submitted with it, are all true and correct.”
It is further alleged that, on October 27, 2016, in an interview with a U.S. Citizenship and Immigration Services officer regarding his Form N-400, MAMADJONOV again provided false statements and concealed information about his association with a member of a known terrorist organization. At the conclusion of the interview, he swore an oath under penalty of perjury that his responses were true.
The complaint charges MAMADJONOV with the unlawful procurement of naturalization, and making a false oath or declaration under penalty of perjury, offenses that carry a maximum term of imprisonment of 10 years. The complaint also charges MAMADJONOV with making false statements on a naturalization application, an offense that carries a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation Division, U.S. Citizenship and Immigration Services, New Britain Police Department and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito, with the assistance of the National Security Division’s Counterterrorism Section.
Two More “Southside” Gang Members Sentenced to PrisonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two more members of a gang that operated for a decade in the City of York were sentenced to federal prison for racketeering and drug distribution conspiracies.
According to United States Attorney David J. Freed, U.S. District Court Judge Yvette Kane sentenced Richard Nolden, age 27, who was identified as a member of the “Southside” street gang to 25 years’ imprisonment on December 19, 2017. Nolden was already serving a 15-40 year sentence for Murder in the 3rd Degree, and this sentence was concurrent with that sentence. Pursuant to an agreement with the government, Nolden entered a guilty plea to racketeering conspiracy and the parties agreed to the sentence. When imposing sentence, Judge Kane noted Nolden’s role in the January 23, 2012, murder of Sherrod Snellings, a crime that was a part of the “Southside” and “Parkway” gang violence.
Judge Kane also sentenced Angel Schueg, a/k/a “Pocco,” age 28, to 165 months’ imprisonment on December 21, 2017. The government highlighted Schueg’s involvement progressed from trafficking small amounts of marijuana to a substantial trafficker of crack and heroin for the Southside gang. Judge Kane agreed and imposed the guideline sentence.
In November 2015, a jury convicted Schueg of drug trafficking conspiracy after a seven-week trial. It included over 100 witnesses called by the government, including York City Police officers and detectives, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI and gang members who had previously pleaded guilty and featured the presentation of over 500 exhibits. Among the exhibits were videos of violent incidents involving the Southside Gang, drugs, cash and property seized by police and ATF agents as part of the investigation.
The jury convicted the other 11 men who went to trial with Schueg.
Overall, the jury found seven of the 12 men on trial guilty of racketeering conspiracy and conspiracy to distribute drugs, mainly cocaine base (crack) and cocaine, but including heroin in some instances. Two others were found not guilty of the racketeering charge but were found guilty of the drug distribution conspiracy count of the indictment. Three of the defendants were found not guilty of either of the conspiracy counts. The jury found all 12 defendants guilty of possession of illegal drugs with the intent to distribute. Two defendants were also charged and found guilty of, possession of firearms in furtherance of drug trafficking.
The principal defendants, specifically the most violent and those in leading roles, were found guilty of the racketeering conspiracy charges.
The individual defendants previously sentenced in this matter are:
Rolando Cruz, Jr., “Mico,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 3, 2017, to life in prison.
Marc Hernandez, a/k/a “Marky D,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 25, 2017, to life in prison.
Douglas Kelly, a/k/a “Killer,” age 39, racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on December 12, 2017, to life in prison.
Roscoe Villega, a/k/a “P Shawn,” age 44; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 25 years in prison.
Brandon Orr, a/k/a “B Or,” age 23; drug possession with intent to deliver was sentenced to 34 months in prison on November 10, 2016,
Jabree Williams, a/k/a “Minute,” age 24; drug possession with intent to deliver was sentenced to 60 months in prison on May 15, 2017.
Eugene Rice, a/k/a “B Mor,” age 29; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 200 months in jail on December 7, 2017,
Angel Schueg, a/k/a “Pocko,” age 28; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 165 months in jail on December 21, 2017,
Jalik Frederick, a/k/a “Murder Cat,” age 22; drug possession with intent to deliver was sentenced to 33 months in prison on June 5, 2017,
The individual defendants previously convicted and awaiting sentencing in this matter are:
Tyree Eatmon, a/k/a “Ree,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Maurice Atkinson, a/k/a “Mo,” age 30; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Anthony Sistrunk, a/k/a “Kanye,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
The following Southside gang members previously pleaded guilty and are awaiting sentencing:
James Abney, a/k/a “Doocs,” age 31.
Malik Sturdivant, a/k/a “Base,” age 25.
Jahkeem Abney, a/k/a “Foo,” age 27.
Ronald Payton, a/k/a “Ron Ron,” age 25.
Cordaress Rogers, a/k/a “Tank,” age 31.
Marquis Williams, a/k/a “Quis,” age 29.
Jerrod Brown, a/k/a “Boogie,” age 28.
Quintez Hall, a/k/a “Q,” age 25.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
The case included the participation and assistance of the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorneys Michael A. Consiglio, William Houser, and Joseph Terz prosecuted the case.
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Two Charged with Running $11 Million Sleep Study Scam that Billed UPS and Costco Health Care Benefit Programs for Unneeded TestsRead the Press Release
LOS ANGELES – The owner of a Studio City clinic and a driver for United Parcel Service have been indicted on health care fraud charges related to unnecessary – and sometimes never-performed – sleep studies that resulted in more than $11 million in bills being submitted to health care benefit programs, primarily for employees of UPS and Costco.
Anna Vishnevsky, 49, of Valley Village, the owner of Atlas Diagnostic Services, Inc., and Eddie Hernandez, 43, of Torrance, who is the UPS driver, were arrested on Tuesday pursuant to an 11-count indictment returned by a federal grand jury on December 14.
Vishnevsky and Hernandez were arraigned on the indictment Tuesday afternoon in United States District Court. After the two defendants entered not guilty pleas to the charges in the indictment, a trial was scheduled for January 30. Vishnevsky was released on a $200,000 bond, and Hernandez was freed on a $30,000 bond.
The case was announced today after United States District Judge George H. Wu signed an order late yesterday unsealing the indictment.
According to the indictment, Vishnevsky, Hernandez and others recruited “patients” by offering cash in exchange for participating in sleep study testing. They also allegedly offered additional cash to those who brought dependents and referred co-workers to participate in the scheme. Vishnevsky and Hernandez allegedly recruited patients knowing that no doctor had prescribed sleep study testing for them, and regardless of whether the testing was medically necessary.
Vishnevsky failed to score or interpret the data from the testing, or provide it to anyone who could score or interpret it, which is necessary for diagnosis and treatment, according to the indictment. Vishnevsky is further alleged to have billed insurance providers for two sleep studies for many patients, even though they went to her clinic on one night only.
Investigators believe that Vishnevsky and others submitted more than $11 million in fraudulent claims, most of which related to beneficiaries of the UPS and Costco health care benefit programs.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Vishnevsky and Hernandez are each charged with 11 counts of health care fraud. If they were to be convicted, each would face a statutory maximum sentence of 10 years in federal prison for each count in the indictment.
The case against Vishnevsky and Hernandez is the result of an investigation by the United States Department of Labor - Office of Inspector General, the Department of Labor - Employee Benefits Security Administration, the Federal Bureau of Investigation, and the Office of Personnel Management - Office of Inspector General.
The case is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
Two Charged in Marijuana Grow OperationsRead the Press Release
BOSTON – Two central Massachusetts men have been charged in federal court in Springfield in connection with marijuana grow operations.
Peter Molle, 35, of Holland, was arrested today and charged with manufacturing marijuana and possessing marijuana with intent to distribute. On Dec. 15, 2017, Eric Vallee, 38, of Sutton was arrested and charged with manufacturing marijuana and possessing marijuana with intent to distribute.
According to court documents, Vallee was featured in a magazine article noting that he regularly harvests 10 pounds of marijuana based on a cultivation timetable that would result in his harvesting hundreds of pounds of marijuana per year. The article noted that Vallee worked with Molle. Both Valle and Molle used bank accounts that featured large amounts of cash deposits that were consistent with the proceeds of drug sales.
In February 2017, agents executed search warrants at a house in Auburn where Vallee then resided, at a house in Sutton where Vallee had previously resided, and at a house in Holland where Molle resided. At each location, agents discovered commercial-style marijuana grow operations. More than 100 marijuana plants were found at Vallee’s Auburn residence, more than 100 marijuana plants at Molle’s Holland residence, and more than 30 marijuana plants were found at the residence in Sutton.
It is alleged that Vallee and Molle continued to engage in substantial marijuana cultivation even after the execution of the search warrants. On Dec. 12, 2017, additional search warrants were executed at Vallee’s house in Sutton and at Molle’s house in Holland. At both locations, significant commercial-style marijuana grow operations were found. In addition, marijuana packaged for sale was recovered at Vallee’s residence.
Each defendant faces a sentence of no greater than five years in prison, a minimum of two years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are each presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Aliens Plead Guilty in Connection with Labor Trafficking Scheme That Targeted Guatemalan National for Forced LaborRead the Press Release
Antonia Marcos Diego, 42, of Forks, Washington, pleaded guilty yesterday in federal court in Tacoma, Washington, to one count of document servitude in furtherance of forced labor, announced Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Annette L. Hayes of the Western District of Washington. Antonio Francisco-Pablo, 60, of Forks, Washington, previously pleaded guilty on December 18, 2017, to one count of forced labor. U.S. District Judge Ronald B. Leighton scheduled sentencing for March 23, 2018.
According to documents filed in court, defendant Antonia Marcos Diego and her husband, Antonio Francisco-Pablo, lured Diego’s sister to enter the United States from Guatemala, falsely promising that they would provide her with a home, a job earning a lot of money, and a good life. Contrary to these promises, however, the defendants imposed a significant debt on the victim upon her arrival in the United States, and informed her that she would work off the debt by picking salal, a brush commonly used by florists. The defendants retained all of the victim’s earnings and increased her debt by imposing additional charges on her for food, housing, transportation, and utilities. The defendants also kept the victim’s identification documents and threatened her with deportation if she ever tried to leave them. According to court documents, the defendants similarly lured another relative to the United States from Guatemala, and also imposed a significant debt upon him after his arrival.
“These two defendants recruited their own family members on false and fraudulent promises, using the American dream of freedom and opportunity to lure their victims,” said Acting Assistant Attorney General John Gore. “The Department of Justice will continue to pursue labor traffickers like these defendants, who erode our ideals of freedom, opportunity, and the rule of law in order to exploit others for their own greed.”
“These defendants took advantage of a young non-English speaking relative, who was alone in a foreign country, and exploited her for their own enrichment,” said U.S. Attorney Annette L. Hayes. “Their actions were cruel and a clear violation of federal law. We will continue to prioritize protecting such vulnerable victims and prosecuting those who prey on them.”
Antonio Francisco-Pablo faces a possible sentence of up to 20 years in prison while Antonia Marcos Diego faces a possible sentence of up to five years in prison. Per the terms of the plea agreements, both defendants have agreed to make restitution to both victims in an amount to be determined at the time of sentencing.
The case is being prosecuted by Assistant United States Attorney Bruce F. Miyake and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit. The case was investigated by the Department of Homeland Security’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the Clallam County Sheriff’s Office, Port Angeles Police Department, and Washington State Patrol Crime Laboratory.
Transportation Operator Pleads Guilty to Defrauding the State DepartmentRead the Press Release
A local transportation operator pleaded guilty yesterday to stealing federal funds intended for a foreign exchange program maintained by the U.S. Department of State, announced Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Inspector General Steve A. Linick of the U.S. Department of State.
Denon T. Hopkins, 49, of Germantown, Maryland, pleaded guilty to one count of conspiracy to commit theft of public funds and engage in honest services wire fraud before U.S. Senior District Judge T.S. Ellis III of the Eastern District of Virginia. Sentencing is scheduled for April 6, 2018.
According to admissions made in connection with his plea, Hopkins was the operator and de facto owner of a transportation company that contracted with the State Department to provide bus and limousine services to Sports United Division, a State Department component devoted to sports diplomacy, which sponsored a foreign exchange program for emerging athletes and coaches from various countries. The exchange program was managed by George Mason University in Fairfax, Virginia, through a federal grant and cooperative agreement with the State Department. During a time period when Hopkins received $247,200 in grant funds for legitimate transportation services, he and a State Department official conspired to steal portions of the federal money allocated to the exchange program by, among other things, falsifying vendor-related invoices and making fraudulent checks payable to Hopkins. In total, Hopkins stole approximately $17,335 from the State Department. He also admitted that he used portions of the funds to pay kickbacks to the State Department official to retain his transportation contract.
The Department of State’s Office of Inspector General and the FBI’s Washington Field Office investigated the case. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Kimberly R. Pedersen of the Eastern District of Virginia are prosecuting the case. Former Special Assistant U.S. Attorney Brian D. Harrison provided assistance on the case.
Stratford Tax Preparer Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that JUAN SILVA, 37, of Stratford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to preparing false federal income tax returns.
According to court documents and statements made in court, SILVA operated Oficina Hispana, a multi-service business that included tax return preparation. Between approximately 2011 and 2017, SILVA falsified itemized deductions and unreimbursed employee business expenses on numerous returns that he prepared for clients. In addition, for the 2011, 2012 and 2013 tax years, SILVA made substantial deposits of business receipts from his tax preparation business into his personal bank accounts, and failed to report to the IRS a total of more than $306,000 in income.
SILVA pleaded guilty to one count of aiding and assisting the filing of a false tax return. At sentencing, he faces a maximum term of imprisonment of three years, a fine of up to approximately $300,000, and restitution of $143,693. A sentencing date is not scheduled.
The IRS is taking action to recover unpaid taxes from SILVA’s clients.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Scott W. Brady Sworn in as U.S. Attorney for the Western District of PennsylvaniaRead the Press Release
PITTSBURGH – Scott W. Brady was sworn in today as the 58th United States Attorney for the Western District of Pennsylvania and began his duties immediately.
"I would like to thank President Trump for this great honor of being appointed U.S. Attorney for the Western District of Pennsylvania, and thank Senators Toomey and Casey for their strong support throughout the confirmation process," said U.S. Attorney Brady. "I look forward to working with the outstanding attorneys and staff of the U.S. Attorney’s Office to serve the people of Western Pennsylvania."
Chief U.S. District Judge Joy Flowers Conti administered the oath to Mr. Brady, 48, of Ohio Township, in a ceremony this morning.
Prior to becoming U.S. Attorney, Mr. Brady was head of litigation for Federated Investors, Inc. in Pittsburgh. From 2004 to 2010, he served an Assistant U.S. Attorney in the Western District of Pennsylvania. He previously was an associate for the Jones Day and Reed Smith law firms. Mr. Brady also served as an Adjunct Professor of Law at the University of Pittsburgh where he taught Constitutional Law.
Mr. Brady is a 1991 graduate of Harvard University and a 2001 graduate of the Pennsylvania State University’s Dickinson School of Law.
Mr. Brady was nominated for U.S. Attorney by President Donald Trump on September 8 and confirmed by the United States Senate on December 14. He will lead an office currently staffed with 59 Assistant U.S. Attorneys across the Criminal, Civil and Appeals divisions, and 57 support staff in offices in Pittsburgh, Erie and Johnstown.
The Western District of Pennsylvania covers the 25 westernmost counties in the Commonwealth.
Pocatello Man Sentenced to Federal Prison for Transporting Child PornographyRead the Press Release
POCATELLO – Craig Marshall Grayson, 31, of Pocatello, Idaho, was sentenced yesterday in federal court to 151 months in prison, followed by eight years of supervised release, for transportation of child pornography, U.S. Attorney Bart M. Davis announced. U.S. District Judge David C. Nye also ordered Grayson to pay a $5,000 fine, pay $5,100 in special assessments and forfeit the computer and storage devices used in the commission of the charged offense. Grayson pleaded guilty to the crime in September.
According to the plea agreement, law enforcement agents downloaded four sexually exploitative videos of a minor from an individual later identified as Grayson between July 5 and August 12, 2016. A search of Grayson’s home and computer devices revealed his additional possession of approximately 978 images and 65 videos of child pornography.
“This sentence is just punishment for Mr. Grayson’s criminal conduct,” said Davis. “The U.S. Attorney’s Office is dedicated to prosecuting and seeking long sentences for individuals who obtain, possess, view and share child pornography.”
“Homeland Security Investigations (HSI) is committed to bringing to justice those who sexually exploit children,” said Bradford A. Bench, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Seattle. “This case exemplifies the long reach of HSI, and its ability to coordinate and pursue investigative efforts that lead to predators like Grayson to be sentenced to a lengthy prison sentence.”
The case was investigated by HSI and the Idaho Internet Crimes Against Children Task Force.
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.”
Perkinsville Man Pleads Guilty in Armed Pharmacy and Bank Robbery CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael Bickford, age 38, formerly of Perkinsville, Vermont, pled guilty on December 18, 2017 in the United States District Court in Burlington to charges stemming from the December 5, 2016 armed robbery of the River Street Pharmacy in Springfield, Vermont. Bickford also admitted to the armed robberies of the Windsor County South Credit Union in Springfield, Vermont on October 18, 2016 and the Mascoma Savings Bank in Springfield, Vermont on November 10, 2016. Bickford, who has been detained since his federal arrest in May 2017, appeared before District Judge William K. Sessions III and pled guilty to robbery and carrying and using a firearm.
As described during the change of plea proceedings, at about 8:30 a.m. on December 5, 2016, Bickford entered the River Street Pharmacy located at 100 River Street in Springfield, Vermont armed with a pistol and wearing a dark-colored mask. Bickford approached the counter, pointed the pistol at a pharmacy employee’s midsection, and demanded prescription medications.
While the employee went to get prescription medications, Bickford pointed the pistol at a second employee. After the first employee gave Bickford the prescription medications, Bickford exited. Later that day, law enforcement arrested Bickford and found the loaded pistol in his vehicle, along with the prescription medications and pill bottles stolen from the River Street Pharmacy.
During the change of plea proceedings, Bickford also admitted that on October 18, 2016, he robbed the Windsor County South Credit Union located at 383 River Street in Springfield, Vermont. During this robbery, Bickford was armed with a handgun and unlawfully took and obtained about $3,324. Bickford further admitted that on November 10, 2016, he robbed the Mascoma Savings Bank located at 270 River Street in Springfield, Vermont. During this robbery, Bickford was armed with a handgun and unlawfully took and obtained about $12,000.
Under federal law, the robbery charge carries a maximum sentence of twenty years, and the charge of using and carrying a firearm carries a maximum sentence of life imprisonment, but the plea agreement caps Bickford’s sentence at eight years. The sentence will be advised by the Federal Sentencing Guidelines.
The case was investigated by the Springfield, Vermont Police Department, the Weathersfield, Vermont Police Department, the Windsor County Sheriff’s Department, the Vermont State Police, and the Federal Bureau of Investigation. The Windsor County State’s Attorney’s Office also assisted in the investigation. “This is an excellent example of local, state, and federal law enforcement working together to keep our communities safe and bring violent criminals to justice. During this holiday season, we are thankful for our partnership with the F.B.I. and U.S. Attorney's Office,” said David J. Cahill, Windsor County State's Attorney.
Bickford is represented by Jordana Levine of Marsicovetere & Levine Law Group, P.C. The United States is represented by Assistant United States Attorney John J. Boscia.
New Prosecutor Added to Combat Violent CrimeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a new Assistant U.S. Attorney will be hired to combat violent crime in the Kansas City metropolitan area.
The new position was created as part of the Department of Justice initiative against violent crime. U.S. Attorney General Jeff Sessions recently announced that 40 new Assistant U.S. Attorney positions have been created in 27 districts.
This additional staffing follows the designation of the Western District of Missouri as a Public Safety Partnership (PSP) Diagnostic Site to work with local law enforcement partners on public safety and violence reduction. Eight districts nationwide received this designation.
PSP was established in June 2017 and provides an innovative framework for the Department of Justice to enhance its support of state and local law enforcement officers and prosecutors in the investigation, prosecution, and deterrence of violent crime, especially crime related to gun violence, gangs, and drug trafficking. This approach serves as a platform to directly engage with cities to identify and prioritize resources that will help local communities address violent crime.
PSP enables cities to consult with and receive coordinated training and technical assistance and an array of resources from the Department of Justice to enhance local violence reduction strategies. PSP provides data-driven, evidence-based strategies tailored to the unique local needs of participating cities to address serious violent crime challenges tailored to their unique local needs.
PSP supports law enforcement, communities, and justice systems at the state and local level to prevent and reduce crime, combat violence and enhance public safety through the use of evidence-based practices. Among the components of a PSP Diagnostic Site are: • Relationship building; • Data collection and analysis; • Training and technical assistance; and
• Community engagement in violence reduction strategies.
Modesto Man Arrested for Attempting to Provide Material Support to a Terrorist OrganizationRead the Press Release
SACRAMENTO, Calif. — A federal complaint was unsealed today, charging Everitt Aaron Jameson, 26, of Modesto, with attempting to provide material support to a foreign terrorist organization, Attorney General Jeff Sessions and United States Attorney Phillip A. Talbert announced.
According to court documents, Jameson had several online interactions with a confidential source in which he expressed support for the Oct. 31, 2017, terrorist attack in New York City and offered his services for “the cause.” In subsequent communications with an undercover agent, Jameson referred to his training in the U.S. military and noted he had been trained for combat and war. Jameson later met with another undercover agent whom he believed to be associated with the senior leadership of the foreign terrorist organization, ISIS (the Islamic State of Iraq and al-Sham, also known as ISIL). During his interactions with this undercover agent, Jameson offered to carry out violent acts and to provide financial support for the terrorist organization.
“The Department of Justice works resolutely every day to prevent terrorist attacks,” said Attorney General Sessions. “In my time back at the Department, nothing has impressed me more. Today, our incredible law enforcement officers have once again helped thwart an alleged plot to kill Americans. I want to thank the FBI agents and federal prosecutors and everyone else who helped make this possible. The threat from radical Islamic terrorism is real — and it is serious — but the American people can be assured that the Department of Justice remains vigilant in protecting our homeland.”
U.S. Attorney Phillip A. Talbert stated, “I want to express my thanks to the FBI for working in partnership with my office on this case. We are grateful that our hardworking law enforcement partners remain vigilant in protecting our communities, especially during this holiday season.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Dawrence W. Rice and Christopher D. Baker are prosecuting the case with Trial Attorney Brenda Sue Thornton from the U.S. Department of Justice’s National Security Division, Counterterrorism Section.
If convicted, Jameson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Manchester Man Pleads Guilty to Conspiracy to Traffic Large Quantities of MethamphetamineRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that
Brian O’Rourke, 54, of Manchester, pleaded guilty to participating in a conspiracy to distribute methamphetamine.
According to court documents and statements made during today’s plea hearing, on or about April 19, 2017, U.S. Postal Inspectors intercepted a suspicious package mailed to O’Rourke from Las Vegas, Nevada, that they opened pursuant to a federal search warrant. Inside, they found 5.349 kilograms – approximately 12 pounds -- of highly potent methamphetamine. After removing the methamphetamine and substituting a “dummy” substance to restore the package to its original weight, Postal Inspectors arranged for the delivery of the package to O’Rourke. Surveilling law enforcement officers then watched O’Rourke as he drove to an area behind a Manchester furniture store, where O’Rourke met with Dustin Moss, and transferred the package to Moss. Four days later, O’Rourke received another package, which Postal Inspectors opened with O’Rourke’s consent. Inside was an additional 3.571 kilograms – or eight pounds -- of highly potent methamphetamine.
Dustin Moss, 29, of Manchester, Katrina Jones, 39, of Goffstown, and Sabrina Moss, 31, of Manchester, also face federal charges related to this methamphetamine trafficking conspiracy. Dustin Moss and Katrina Jones are scheduled for trial on March 6, 2018. Sabrina Moss is scheduled for trial on January 23, 2018.
O’Rourke’s sentencing has been scheduled for March 30, 2018.
“Although our state is facing a significant opioid crisis, other dangerous drugs continue to present a threat to the Granite State,” said Acting U.S. Attorney Farley. “Methamphetamine is a deadly drug that has been linked to overdoses in New Hampshire. I commend the law enforcement officers for their work in this case, which prevented a very substantial amount of methamphetamine from being distributed in our community.”
This matter was investigated by the United States Postal Inspection Service, the N.H. Attorney General’s Drug Task Force and the U.S. Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Bill Morse and John Davis.
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Lawful Permanent Resident from Uzbekistan Charged with Immigration OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, announced that SIDIKJON MAMADJONOV, 31, a citizen of Uzbekistan residing in New Britain, was arrested today on a criminal complaint charging him with immigration offenses.
MAMADJONOV appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in court documents, MAMADJONOV was admitted to the U.S. in February 2009 and became a lawful permanent resident in September 2010. On September 8, 2014, MAMADJONOV submitted to U.S. Citizenship and Immigration Services an Application for Naturalization, Form N-400.
The complaint alleged that, on November 20, 2017, in an interview with the FBI, MAMADJONOV stated that on a trip to Turkey in May 2013, he was informed that his brother Saidjon had died in May or June 2013 while fighting in Syria with the “Nusra” group, which was affiliated with ISIS. When MAMADJONOV returned from Turkey, he received a FedEx package that contained what he believed to be Saidjon’s iPhone. The iPhone contained several videos and photographs depicting Saidjon in Syria. MAMADJONOV recalled a video in which Saidjon stated, “Join us brother, we are here.” Also contained on the phone were photographs of Saidjon cleaning weapons in military dress while armed with a weapon, as well as a photograph of Saidjon’s dead body and his bloodied face.
The complaint alleges that in FBI interviews on May 14 and May 29, 2014, and on November 28, 2014, MAMADJONOV responded to questions about the trip he took to Turkey in May 2013, and questions about his brother, Saidjon Mamadjonov. During all three interviews, MAMADJONOV stated that Saidjon Mamadjonov was still alive when he knew he was dead.
The complaint further alleged that in an FBI interview on August 17, 2016, MAMADJONOV stated that he did not know the whereabouts of Saidjon, had not overheard any discussions of Uzbeks in the U.S. going over to Syria to fight, and was not aware of any Uzbeks travelling to Syria.
The complaint alleged that in response to Part 11, Question 10 of the Form N-400 MAMADJONOV submitted in September 2014, “Have you ever been a member of, or in any way associated (either directly or indirectly) with: C. A terrorist organization?” MAMADJONOV responded “No.” Also, in response to Part 11, Question 31 of Form N-400, “Have you ever given any Government official information that was materially false, fraudulent or misleading?” MAMADJONOV responded “No.” MAMADJONOV signed the form below the statement “I certify, under penalty of perjury under the laws of the United States of America, that this application, and the evidence submitted with it, are all true and correct.”
The complaint further alleged that, on October 27, 2016, in an interview with a U.S. Citizenship and Immigration Services officer regarding his Form N-400, MAMADJONOV again provided false statements and concealed information about his association with a member of a known terrorist organization. At the conclusion of the interview, he swore an oath under penalty of perjury that his responses were true.
The complaint charges MAMADJONOV with the unlawful procurement of naturalization, and making a false oath or declaration under penalty of perjury, offenses that carry a maximum term of imprisonment of 10 years. The complaint also charges MAMADJONOV with making false statements on a naturalization application, an offense that carries a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation Division, U.S. Citizenship and Immigration Services, New Britain Police Department and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito, with the assistance of the National Security Division’s Counterterrorism Section.
L.A. Fashion District Company and Two Owners Plead Guilty to Federal Charges Stemming from Money Laundering SchemeRead the Press Release
LOS ANGELES – In a case stemming from an investigation into Fashion District businesses using "Black Market Peso Exchange" schemes to launder narcotics proceeds for international drug cartels, an import-export textile business and two executives have pleaded guilty to federal money laundering and tax charges.
Pacific Eurotex Corp. and its owners – Morad "Ben" Neman and Hersel Neman – pleaded guilty yesterday to federal charges in an indictment that accused them of using the business to receive bulk cash that they knew or believed to be the proceeds of narcotics trafficking.
The defendants admitted in court documents that they failed to report to federal authorities the receipt of this bulk cash, and that they "structured" frequent deposits of the cash, in amounts less than $10,000, to avoid a bank reporting requirement that would have drawn the scrutiny of law enforcement.
The Nemans also pleaded guilty to conspiring to defraud the United States by maintaining two sets of business records in order to conceal income for tax purposes.
A Black Market Peso Exchange scheme is designed to assist drug traffickers who have United States currency that they want to send to a foreign country, such as Mexico, and convert into pesos. As part of the scheme, a broker finds business owners in the foreign country who buy goods from U.S. companies and who need dollars to pay for those goods. The broker arranges for the illegally obtained dollars to be delivered to the United States-based vendors, such as Pacific Eurotex, and these illegally obtained dollars are used to pay for the goods purchased by the foreign customers. Once the goods are shipped to the foreign country and sold by the foreign business, the pesos are turned over to the broker, who then pays the drug trafficker in the local currency of the foreign country, thus completing the laundering of the illegally obtained dollars.
Pacific Eurotex received, laundered and structured approximately $370,000 in bulk cash delivered on four separate occasions over 2½ months in 2013 by an undercover agent posing as a money courier, according to court documents. The company laundered this money after being specifically advised by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations that bulk cash payments were frequently derived from illegal activity and that it was required to report cash transactions involving more than $10,000 in currency.
The defendants who appeared yesterday in United States District Court are:
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Pacific Eurotex, which pleaded guilty to conspiring to launder money and conspiring to structure monetary transactions with a domestic financial institution;
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Morad "Ben" Neman, 57, of Westwood, the chief executive officer of Pacific Eurotex, who pleaded guilty to four counts – conspiring to structure monetary transactions with a domestic financial institution, conspiring to defraud the United States by obstructing the lawful functions of the Internal Revenue Service, subscribing to and filing a false 2013 tax return understating income he received from Pacific Eurotex, and aiding and assisting in the filing of another false 2013 tax return; and
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Hersel Neman, 58, of Beverly Hills, the chief financial officer of Pacific Eurotex and brother of Morad Neman, who pleaded guilty to three counts – conspiring to launder money, conspiring to defraud the United States by obstructing the lawful functions of the IRS, and subscribing to and filing a false tax return.
All three defendants are scheduled to be sentenced by United States District Judge John A. Kronstadt on June 14.
In court documents, the defendants admitted that, as part of the money laundering scheme, they instructed other individuals to deposit the cash into the personal Wells Fargo bank account of Hersel Neman’s wife. "These deposits, 384 in all, were divided into increments less than $10,000 each with the intent to prevent Wells Fargo, a domestic financial institution, from filing Currency Transaction Reports," according to the documents. The defendants have agreed to forfeit to the United States nearly $3.18 million, which includes the narcotics proceeds they received and deposited in structured cash transactions into the Wells Fargo account.
When they are sentenced by Judge Kronstadt, Morad Neman will face a statutory maximum sentence of 21 years in federal prison, and Hersel Neman will face a sentence of up to 28 years. Pacific Eurotex faces a statutory maximum sentence of up to 10 years’ probation and almost $2 million in fines.
The indictment in this case names two other defendants who are scheduled to go on trial on March 6. Mehran Khalili, 49, of Beverly Hills, who is a brother in law of Hersel Neman, is charged with conspiring to structure cash transactions; and Alma Villalobos, 55, of Arleta, the in-house accountant and bookkeeper for Pacific Eurotex, faces several charges, including conspiracy to launder money.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The investigation into Pacific Eurotex was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS - Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Julie J. Shemitz, Jamie A. Lang and Puneet V. Kakkar of the Organized Crime Drug Enforcement Task Force.
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Kmart Corporation to Pay U.S. $32.3 Million to Resolve False Claims Act Allegations for Overbilling Federal Health Programs for Generic Prescription DrugsRead the Press Release
Kmart Corporation, a wholly owned subsidiary of Sears Holdings Corporation (SHC), has agreed to pay $32.3 million to the United States to settle allegations that in-store pharmacies in Kmart stores failed to report discounted prescription drug prices to Medicare Part D, Medicaid, and TRICARE, the health program for uniformed service members and their families, the Justice Department announced today.
The agreement resolves allegations arising from a lawsuit brought under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. The 2008 lawsuit, which was filed by James Garbe in the federal district in Los Angeles and later transferred to the Southern District of Illinois, alleged that Kmart pharmacies offered discounted generic drug prices to cash-paying customers through various club programs but knowingly failed to disclose those prices when reporting to federal health programs its usual and customary prices, which are typically used by those programs to establish reimbursement rates.
“Pharmacies that are not fully transparent about drug pricing can cause federal health programs to overpay for prescription drugs.” said Acting Assistant Attorney General Chad A. Readler for the Department’s Civil Division. “This settlement should put pharmacies on notice that there will be consequences if they attempt to improperly increase payments from taxpayer-funded health programs by masking the true prices that they charge the general public for the same drugs.”
“Pharmacies and other providers who receive funds from taxpayers have a duty to follow the law,” said U.S. Attorney Donald S. Boyce for the Southern District of Illinois. “If healthcare providers do not provide fair and transparent pricing as required under the law, the False Claims Act allows the government and whistleblowers to ensure that the Medicare, Medicaid, and TRICARE programs are made whole.”
The settlement agreement with the United States is a part of a global $59 million settlement that includes a resolution of state Medicaid and insurance claims against Kmart. Garbe, who litigated the case after the government declined to intervene in the action, will receive $9.3 million.
The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the Southern District of Illinois and Central District of California. Auditing assistance for the government’s investigation was provided by the U.S. Attorney’s Office for the Central District of California and the National Association of Medicaid Fraud Control Units. Investigative assistance was provided by the U.S. Department of Health and Human Services, Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Garbe v. Kmart Corp., Case No. 12-CV-881-NJR-PMF (S.D. Ill.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
Killingly Man Who Provided Firearm to Convicted Felon is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALBERT BONNER, 31, of Killingly, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to eight months of imprisonment, followed by two years of supervised release, for providing a firearm to a convicted felon.
According to court documents and statements made in court, on January 4, 2017, law enforcement officers removed a loaded Beretta 9mm Nano handgun and an improvised explosive device from the Killingly home of Blain Kollbeck The handgun had an obliterated serial number, and was repainted orange. The investigation revealed that BONNER was the registered owner of the gun, and that BONNER provided the gun to Kollbeck, who BONNER knew was a convicted felon.
On July 31, 2017, BONNER pleaded guilty to one count of providing a firearm to a convicted felon.
Kollbeck, 33, was arrested on a federal criminal complaint on January 10, 2017. On December 18, he pleaded guilty to one count of possession of a firearm by a previously convicted felon. He is released on $100,000 bond pending sentencing, which is scheduled for March 12, 2018.
This matter has been investigated by the Connecticut State Police and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Keppel Offshore & Marine Ltd. and U.S.-Based Subsidiary Agree to Pay $422 Million in Global Penalties to Resolve Foreign Bribery CaseRead the Press Release
Keppel Offshore & Marine Ltd. (KOM), a Singapore-based company that operates shipyards and repairs and upgrades shipping vessels, and its wholly owned U.S. subsidiary, Keppel Offshore & Marine U.S.A. Inc. (KOM USA), have agreed to pay a combined total penalty of more than $422 million to resolve charges with authorities in the United States, Brazil and Singapore arising out of a decade-long scheme to pay millions of dollars in bribes to officials in Brazil. KOM USA pleaded guilty today in the Eastern District of New York in connection with the resolution. In addition, a guilty plea by a former senior member of KOM’s legal department was unsealed.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Department of Justice’s Criminal Division, and Stephen E. Richardson, Assistant Director, Federal Bureau of Investigation, Criminal Investigative Division (FBI), made the announcement.
“The resolutions with KOM and its U.S. subsidiary are the result of a multinational effort to investigate and prosecute a corruption scheme that resulted in the payment by the defendant companies of over $50 million in bribes to Brazilian officials and in profits for the defendant companies of over $350 million from business corruptly obtained in Brazil,” said Acting U.S. Attorney Rohde. “In an attempt to conceal their crimes, the defendants used the global financial system – including the United States banking system – to disguise the source and disbursement of the bribe payments by passing funds through a series of shell companies. The United States, working with its law enforcement partners abroad, will continue to hold responsible those corporations and individuals who seek to enrich themselves through the corruption of government officials and legitimate governmental functions.”
“Today’s resolution once again underscores the importance of the Department of Justice’s collaboration with foreign authorities to hold corrupt companies and individuals accountable for their crimes, while ensuring the fair and appropriate allocation of fines and penalties,” said Acting Assistant Attorney General Cronan. “This case also represents the first coordinated FCPA resolution with Singapore and the most recent of several coordinated resolutions with Brazil. The Criminal Division is committed to working with our international partners to ensure that honest, law abiding companies are able to compete on a level playing field across the globe.”
“The resolution to this investigation shows to those around the world that the FBI and our law enforcement partners are dedicated to work together to bring justice to companies who play outside the rule of law,” said FBI Assistant Director Richardson. “The FBI won’t stand by while individuals operate their business illegally using bribes.”
The Bribery Scheme
According to admissions and court documents, beginning by at least 2001 and continuing until at least 2014, KOM conspired to violate the Foreign Corrupt Practices Act (“FCPA”) by paying approximately $55 million in bribes to officials at the Brazilian state-owned oil company Petrobras, and to the then-governing political party in Brazil, in order to win 13 contracts with Petrobras and another Brazilian entity. KOM effectuated and concealed the bribe payments by paying outsized commissions to an intermediary, under the guise of legitimate consulting agreements, who then made payments for the benefit of the Brazilian officials and the Brazilian political party. KOM USA participated in this conspiracy from approximately 2007 to 2014.
The Corporate Resolutions
KOM entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the U.S. District Court for the Eastern District of New York (the “United States”) in connection with a criminal Information filed today in the Eastern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. In addition, KOM USA pleaded guilty and was sentenced by the Honorable Kiyo A. Matsumoto on a one-count criminal Information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the United States, KOM will pay a total criminal fine of $422,216,980, with a criminal penalty due to the United States of $105,554,245, including a $4,725,000 criminal fine paid by KOM USA. As part of the deferred prosecution agreement, KOM also committed to implement rigorous internal controls and to cooperate fully with the United States’ ongoing investigation.
In related proceedings, the company settled with the Ministério Público Federal (MPF) in Brazil and the Attorney General’s Chambers (AGC) in Singapore. The United States will credit the amount the company pays to Brazil and Singapore under their respective agreements, with Brazil receiving $211,108,490, equal to 50 percent of the total criminal penalty, and Singapore receiving $105,554,245, equal to 25 percent of the total criminal penalty.
In reaching the resolutions with the United States, KOM and KOM USA received credit for their substantial cooperation with the United States’ investigation and for taking extensive remedial measures. For example, KOM has terminated and otherwise disciplined employees involved in the criminal conduct, and it has implemented an enhanced system of compliance and internal controls to address and mitigate corruption risks. Accordingly, the criminal penalty reflects a 25 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range.
The United States also unsealed charges today against a former senior member of KOM’s legal department, who pleaded guilty to one count of conspiracy to violate the FCPA on August 29, 2017 in the Eastern District of New York. He is awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Alixandra Smith and Patrick Hein of the Business and Securities Fraud Section of the U.S. Attorney’s Office for the Eastern District of New York, and Trial Attorneys Derek J. Ettinger and David M. Fuhr and Assistant Chief Christopher J. Cestaro of the Criminal Division’s Fraud Section. The FBI’s International Corruption squad in Houston investigated this case.
The Criminal Division’s Office of International Affairs also provided substantial assistance. The SEC and the Ministerio Publico Federal in Brazil the Departamento de Polícia Federal and the Office of the Attorney General in Switzerland provided significant cooperation.
Keppel Offshore & Marine Ltd. and U.S. Based Subsidiary Agree to Pay $422 Million in Global Penalties to Resolve Foreign Bribery CaseRead the Press Release
Keppel Offshore & Marine Ltd. (KOM), a Singapore-based company that operates shipyards and repairs and upgrades shipping vessels, and its wholly owned U.S. subsidiary, Keppel Offshore & Marine USA Inc. (KOM USA), have agreed to pay a combined total penalty of more than $422 million to resolve charges with authorities in the United States, Brazil and Singapore arising out of a decade-long scheme to pay millions of dollars in bribes to officials in Brazil. KOM USA pleaded guilty today in connection with the resolution. In addition, a guilty plea by a former senior member of KOM’s legal department was unsealed.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, and Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division made the announcement.
“Today’s resolution once again underscores the importance of the Department of Justice’s collaboration with foreign authorities to hold corrupt companies and individuals accountable for their crimes, while ensuring the fair and appropriate allocation of fines and penalties,” said Acting Assistant Attorney General Cronan. “This case also represents the first coordinated FCPA resolution with Singapore and the most recent of several coordinated resolutions with Brazil. The Criminal Division is committed to working with our international partners to ensure that honest, law abiding companies are able to compete on a level playing field across the globe.”
“The resolutions with KOM and its U.S. subsidiary are the result of a multinational effort to investigate and prosecute a corruption scheme that resulted in the payment by the defendant companies of over $50 million in bribes to Brazilian officials and in profits for the defendant companies of over $350 million from business corruptly obtained in Brazil,” said Acting U.S. Attorney Rohde. “In an attempt to conceal their crimes, the defendants used the global financial system – including the United States banking system – to disguise the source and disbursement of the bribe payments by passing funds through a series of shell companies. The United States, working with its law enforcement partners abroad, will continue to hold responsible those corporations and individuals who seek to enrich themselves through the corruption of government officials and legitimate governmental functions.”
“The resolution to this investigation shows to those around the world that the FBI and our law enforcement partners are dedicated to work together to bring justice to companies who play outside the rule of law,” said FBI Assistant Director Richardson. “The FBI won’t stand by while individuals operate their business illegally using bribes.”
KOM entered into a deferred prosecution agreement with the Department in connection with a criminal information filed today in the Eastern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. The case is assigned to U.S. District Judge Kiyo A. Matsumoto. In addition, KOM USA pleaded guilty and was sentenced by Judge Matsumoto on a one-count criminal information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the Department, KOM will pay a total criminal fine of $422,216,980, with a criminal penalty due to the United States of $105,554,245, including a $4,725,000 criminal fine paid by KOM USA. As part of the deferred prosecution agreement, KOM also committed to implement rigorous internal controls and to cooperate fully with the Department’s ongoing investigation.
In related proceedings, the company settled with the Ministério Público Federal (MPF) in Brazil and the Attorney General’s Chambers (AGC) in Singapore. The United States will credit the amount the company pays to Brazil and Singapore under their respective agreements, with Brazil receiving $211,108,490, equal to 50 percent of the total criminal penalty, and Singapore receiving up to $105,554,245, equal to 25 percent of the total criminal penalty.
The Department also unsealed charges today against a former senior member of KOM’s legal department, who pleaded guilty to one count of conspiracy to violate the FCPA on Aug. 29, 2017 in the Eastern District of New York. He is awaiting sentencing.
According to admissions and court documents, beginning by at least 2001 and continuing until at least 2014, KOM conspired to violate the FCPA by paying approximately $55 million in bribes to officials at the Brazilian state-owned oil company Petrobras and to the then-governing political party in Brazil, in order to win 13 contracts with Petrobras and another Brazilian entity. KOM effectuated and concealed the bribe payments by paying outsized commissions to an intermediary, under the guise of legitimate consulting agreements, who then made payments for the benefit of the Brazilian officials and the Brazilian political party.
In reaching the resolutions with the Department, KOM and KOM USA received credit for their substantial cooperation with the Department’s investigation and for taking extensive remedial measures. For example, KOM has terminated and otherwise disciplined employees involved in the criminal conduct, and it has implemented an enhanced system of compliance and internal controls to address and mitigate corruption risks. Accordingly, the criminal penalty reflects a 25 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range.
The case is being investigated by the FBI’s International Corruption Squad in Houston. Trial Attorneys Derek J. Ettinger and David M. Fuhr and Assistant Chief Christopher J. Cestaro of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys Alixandra Smith and Patrick Hein of the Eastern District of New York, are prosecuting the case.
The MPF in Brazil and the AGC in Singapore provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.
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.
Kmart Corporation to Pay U.s. $32.3 Million to Resolve False Claims Act Allegations for Overbilling Federal Health Programs for Generic Prescription DrugsRead the Press Release
WASHINGTON – Kmart Corporation, a wholly owned subsidiary of Sears Holdings Corporation (SHC), has agreed to pay $32.3 million to the United States to settle allegations that in-store pharmacies in Kmart stores failed to report discounted prescription drug prices to Medicare Part D, Medicaid, and TRICARE, the health program for uniformed service members and their families, the Justice Department announced today.
The agreement resolves allegations arising from a lawsuit brought under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. The 2008 lawsuit, which was filed by James Garbe in the federal district in Los Angeles and later transferred to the Southern District of Illinois, alleged that Kmart pharmacies offered discounted generic drug prices to cash-paying customers through various club programs but knowingly failed to disclose those prices when reporting to federal health programs its usual and customary prices, which are typically used by those programs to establish reimbursement rates.
“Pharmacies that are not fully transparent about drug pricing can cause federal health programs to overpay for prescription drugs.” said Acting Assistant Attorney General Chad A. Readler for the Department’s Civil Division. “This settlement should put pharmacies on notice that there will be consequences if they attempt to improperly increase payments from taxpayer-funded health programs by masking the true prices that they charge the general public for the same drugs.”
“Pharmacies and other providers who receive funds from taxpayers have a duty to follow the law,” said U.S. Attorney Donald S. Boyce for the Southern District of Illinois. “If healthcare providers do not provide fair and transparent pricing as required under the law, the False Claims Act allows the government and whistleblowers to ensure that the Medicare, Medicaid, and TRICARE programs are made whole.”
The settlement agreement with the United States is a part of a global $59 million settlement that includes a resolution of state Medicaid and insurance claims against Kmart. Garbe, who litigated the case after the government declined to intervene in the action, will receive $9.3 million.
The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the Southern District of Illinois and Central District of California. Auditing assistance for the government’s investigation was provided by the U.S. Attorney’s Office for the Central District of California and the National Association of Medicaid Fraud Control Units. Investigative assistance was provided by the U.S. Department of Health and Human Services, Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Garbe v. Kmart Corp., Case No. 12-CV-881-NJR-PMF (S.D. Ill.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
Justice Department Requires Vulcan to Divest 17 Aggregate Facilities in Order to Acquire Aggregates USARead the Press Release
The Department of Justice announced today that it has reached a settlement that will require Vulcan Materials Company to divest all of Aggregates USA, LLC’s active aggregate quarries, plants, and yards in the Knoxville, Tennessee, Tri-Cities, Tennessee, and Abingdon, Virginia areas in order for it to proceed with its proposed $900 million acquisition of Aggregates USA from SPO Partners.
The Department’s Antitrust Division and Tennessee’s Attorney General filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“Without relying on a regulatory behavioral decree, these divestitures will ensure that customers, and ultimately taxpayers, in Tennessee and Virginia continue to benefit from robust competition and competitive prices,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The acquisition, as originally proposed, would have eliminated one of the two suppliers of coarse aggregate in parts of east Tennessee and southwest Virginia.”
According to the department’s complaint, Vulcan and Aggregates USA produce and sell coarse aggregate, a type of crushed stone, to customers such as the Tennessee and Virginia Departments of Transportation, highway construction contractors, and suppliers of asphalt concrete and ready mix concrete. Coarse aggregate, an essential input in asphalt concrete and ready mix concrete, is used to build, pave, and repair roads and highways, and is used widely in other types of construction. The complaint alleges that Vulcan and Aggregates USA are the only two producers of coarse aggregate in the Knoxville, Tennessee, Tri-Cities, Tennessee, and Abingdon, Virginia areas. According to the complaint, the loss of competition between Vulcan and Aggregates USA would likely result in higher prices and poorer customer service for aggregate customers in those areas.
Under the terms of the proposed settlement, Vulcan must divest Aggregates USA’s 13 active quarries and yards, and four inactive quarries, in the Knoxville, Tennessee, Tri-Cities, Tennessee, and Abingdon, Virginia areas to Blue Water Industries, or an alternate acquirer approved by the United States. The department said that the divestitures will remedy the acquisition’s anticompetitive effects by providing the acquirer with the quarries, including substantial reserves, and other assets necessary to compete in these local markets.
Vulcan, a New Jersey corporation headquartered in Birmingham, Alabama, is one of the largest producers of coarse aggregate and construction materials in the United States, with facilities in 20 states and the District of Columbia. In 2016, Vulcan’s revenues were approximately $3.5 billion.
SPO Partners, a Delaware limited partnership headquartered in Mill Valley, California, invests in a wide range of industries, including industrial materials, media, telecommunications, energy, power, and real estate. SPO has more than $7 billion in assets under management. SPO acquired Aggregates USA in 2010.
Aggregates USA, a limited liability company headquartered in Birmingham, Alabama, produces and sells aggregate in Florida, Georgia, Tennessee, and Virginia. In 2016, Aggregates USA’s revenues were approximately $124 million.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on December 21, 2017 and entering pleas of Not Guilty were:
- VERNELLE LYNN BADBEAR, a 39-year-old resident of Wyola, appeared on charges of second degree murder. If convicted of the charge contained in the indictment, BADBEAR faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-127
Appearing before U.S. Magistrate Johnston in Great Falls on December 21, 2017 and entering pleas of Not Guilty were:
- CALVIN RED THUNDER, JR., a 48-year-old resident of Brockton, appeared on charges of abusive sexual contact. If convicted of the charge contained in the indictment, RED THUNDER faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 17-85
Appearing before U.S. Magistrate Johnston in Great Falls on December 20, 2017 and entering pleas of Not Guilty were:
- DANIEL GONZALEZ, a 29-year-old resident of Great Falls, appeared on charges of prohibited person in possession of a firearm. If convicted of the charge contained in the indictment, GONZALEZ faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-80
- KAREEM HIDARA, a 33-year-old resident of Winnipeg, Manitoba, appeared on charges of conspiracy to export a controlled substance, conspiracy to possess with intent to distribute cocaine, and possession with intent to distribute cocaine. If convicted of the most serious charges contained in the indictment, HIDARA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 14-30
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Henderson Man Sentenced to 18 Months in Prison for Selling Stolen U.S. Military Ammunition, Smoke Grenades and EquipmentRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada man was sentenced today to 18 months in prison and two years supervised release for selling military-issued ammunition, smoke grenades, and other equipment stolen from the U.S. Air Force, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Temogen Tran Noguni, 38, was sentenced by U.S. District Chief Judge Gloria M. Navarro. He pleaded guilty on Aug. 18, 2017, to one count of unauthorized sale of property of the United States. Co-defendants Jonathan Owens, 27, a Staff Sergeant at Nellis Air Force Base Nevada, and Daniel Schwartz, 42, both previously pleaded guilty to criminal charges.
According to the plea agreement, Noguni admitted that, from August 2015 to November 2015, he purchased from Owens stolen smoke grenades; body armor plate carrier vests; a red dot optical rifle scope; a set of night vision binoculars and goggles; and military ammunition to include 9mm, 5.56x45mm, and .50 caliber cartridges, all from Nellis Air Force Base Nevada. The .50 caliber ammunition, which is not available for sale to the general public, is armor-piercing incendiary ammunition designed to pierce the shell of armored vehicles and explode inside. Noguni then listed the items for sale on the Internet.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Air Force Office of Special Investigations. Assistant U.S. Attorney Jared L. Grimmer prosecuted the case.
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Former Lackawanna County Prison Employee Guilty of Providing Drugs and Other Contraband to InmatesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jerry Defazio, age 39, of Archbald, Pennsylvania, a former contract employee with the Lackawanna County Prison, pleaded guilty on December 21, 2017, before Senior U.S. District Court Judge A. Richard Caputo, to providing and attempting to provide prohibited objects, including illegal drugs, to inmates at the Lackawanna County Prison.
According to United States Attorney David J. Freed, Defazio admitted that between November 2015 and April 2016, while overseeing the food service at the prison, he provided and attempted to provide Oxycontin pills (oxycodone), suboxone, and tobacco to inmates on several occasions and received payments ranging from $50 to $600 for smuggling the drugs and tobacco into the prison.
Judge Caputo scheduled sentencing for April 23, 2018.
The investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
The maximum penalty under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Hershey Medical Center Research Technologist Sentenced for Making False Statements About Cancer TestsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Floyd Benko, age 62, of Palmyra, Pennsylvania, was sentenced today to 15 months’ imprisonment by United States District Court Judge Yvette Kane on false statement charges in connection with his performance of flawed genetic diagnostic tests for 124 cancer patients.
According to United States Attorney David J. Freed, Benko, a former Research Technologist at the Hershey Medical Center in Hershey, Pennsylvania, was indicted in July 2015, and charged with one count of health care fraud and two counts of making false statements in health care matters. Benko performed DNA gene mutation tests (known as Epidermal Growth Factor Receptor (EGFR), KRAS gene mutation (KRAS), and BRAF gene mutation (BRAF) assays) for 124 advanced stage cancer patients at the Hershey Medical Center in 2013 and 2014. These genetic tests help physicians diagnose a patient’s particular type of cancer so specifically tailored treatments can be administered to the patient.
Benko failed to perform the assays in the manner called for by Hershey’s standard operating procedures. Subsequent retesting of the patients during summer 2014, revealed that 60 of the 124 patients had assay results discordant with results obtained by two outside laboratories.
Benko pleaded guilty in July 2017, to one count of making false statements in health care matters before Judge Kane. Benko admitted he lied to administrators at the Hershey Medical Center on April 11, 2014, about the manner by which he performed the genetic assays. Benko concealed the fact he did not follow Hershey’s standard operating procedures, procedures Benko co-authored, in performing the assays by failing to use a device known as a NanoDrop 2000 photo spectrometer to quantify the DNA and by failing to preserve the patients’ leftover tissue and DNA samples.
Judge Kane ordered Benko to serve three years of supervised release following his release from prison and to make restitution in the amount of $69,742 to the Hershey Medical Center for refunds Hershey paid for the flawed assays and for outside laboratory re-testing. Judge Kane also ordered Benko to surrender to the Bureau of Prisons for commencement of his sentence on January 22, 2018.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation. Assistant U.S. Attorneys Kim Douglas Daniel and Joseph J. Terz prosecuted the case.
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Former Felon Convicted of Unlawful Possession of FirearmsRead the Press Release
LAS VEGAS, Nev. – A jury convicted a former felon Thursday of unlawful possession of one Heckler & Koch machine pistol and one Sig Sauer automatic rifle after multiple prior felony convictions in California, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.
Following a three-day jury trial, Jack Benjamin Hessiani, 39, of Ventura, California, was found guilty of one count of felon in possession of a firearm. United States District Judge Larry R. Hicks presided over the trial and scheduled sentencing for March 22, 2018. At the time of sentencing, Hessiani faces the statutory maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Labor Office of the Inspector General. Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra Michael are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Federal Jury Convicts Three Twin Cities Drug TraffickersRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the conviction of ALEJANDRO LLAMAS-DELGADO, 24, GREGORIO RAMIREZ-MALDONADO, 28, and ERICK PARRA-SALAZAR, 24, for drug trafficking-related offenses. Following a three-day trial before U.S. District Judge Joan N. Ericksen in Minneapolis, Minn., the jury found all three defendants guilty of conspiracy to distribute controlled substances, and possession with intent to distribute cocaine. In July 2017, co-defendant COLIN BLAIR MCAFEE, 46, pleaded guilty to one count of possession with intent to distribute cocaine. All four defendants will remain in federal custody pending their sentencing hearings.
Assistant U.S. Attorney Thomas Hollenhorst said: “This case involved the prosecution of one of the biggest methamphetamine and cocaine traffickers in the State of Minnesota. Mr. Llamas-Delgado’s drug trafficking organization spanned many states and involved numerous drug couriers and distributors. The community is safer with him behind bars.”
As proven at trial, since at least 2014, LLAMAS-DELGADO operated a drug trafficking organization responsible for transporting and distributing methamphetamine and cocaine from Texas and California into Minnesota. RAMIREZ-MALDONADO and PARRA SALAZAR assisted LLAMAS-DELGADO by transporting approximately two kilograms of cocaine from Texas to the Twin Cities.
As proven at trial, law enforcement agents in California seized approximately 17 pounds of suspected cocaine and 25 pounds of suspected methamphetamines concealed in hidden compartments under the front seats of a 2005 Mini-Cooper that had been loaded onto a vehicle transport carrier destined for LLAMAS-DELGADO in the Twin Cities area. During the spring of 2017, law enforcement agents in the Twin Cities area conducted surveillance of LLAMAS-DELGADO and his co-conspirators that revealed multiple residences linked to the conspiracy’s drug trafficking activities. On May 15, 2017, law enforcement agents conducted simultaneous searches of several residences, resulting in the seizure of more than $40,000 in cash, 28 pounds of marijuana, over 750 grams of cocaine, a firearm, and other drug trafficking paraphernalia.
This case is the result of an investigation by the U.S. Drug Enforcement Administration, Orono Police Department, Riverside County Sheriff’s Office (California), Albertville Police Department, Brooklyn Center Police Department, Wright County Sheriff’s Office, Hennepin County Sheriff’s Office, the Minnesota State Patrol, and the California Highway Patrol.
Assistant U.S. Attorneys Thomas M. Hollenhorst and Sarah E. Hudleston prosecuted this case.
Defendant Information:
ALEJANDRO LLAMAS-DELGADO, 24
Brooklyn Center, Minn.
Convicted:
- Conspiracy to distribute methamphetamine and cocaine, 1 count
- Possession with intent to distribute cocaine, 1 count
GREGORIO RAMIREZ-MALDONADO, 28
Houston, Texas
Convicted:
- Conspiracy to distribute cocaine, 1 count
- Possession with intent to distribute cocaine, 1 count
ERICK PARRA-SALAZAR, 24
Houston, Texas
Convicted:
- Conspiracy to distribute cocaine, 1 count
- Possession with intent to distribute cocaine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts Leader of Armed Robbery Crew in Nine Heists of Chicago Retail Stores and BusinessesRead the Press Release
CHICAGO — A federal jury has convicted a Chicago man of leading an armed robbery crew that targeted retail stores and businesses on the city’s North and Northwest Sides.
ROBERT L. BERRIOS, 50, committed the nine armed robberies in 2012. His crew mainly struck at cellular telephone stores, often terrorizing store employees by wearing masks and brandishing firearms. In some of the heists, the robbers physically restrained store employees with zip ties. The heists netted the crew tens of thousands of dollars in cash and cell phones.
After an eight-day trial in federal court in Chicago, the jury on Thursday convicted Berrios on all twelve robbery, firearm and conspiracy charges against him. U.S. District Judge Matthew F. Kennelly set sentencing for March 22, 2018, at 1:30 p.m. Berrios faces a mandatory minimum sentence of 22 years in prison, and a maximum sentence of life in prison.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Angel M. Krull and Georgia Alexakis.
All four charged members of the robbery crew have now been convicted. The other charged members, JULIO RODRIGUEZ, 36, DAVID REVIS, 37, and LUIS DIAZ, 33, all of Chicago, previously pleaded guilty and admitted their roles in the heists. Revis was sentenced to 15 years in prison and Diaz was sentenced to three years. Rodriguez is awaiting sentencing.
Evidence at Berrios’ trial revealed that the crew worked together to identify businesses to target and obtain intelligence about the locations, including store hours and number of employees working at a given time. The crew communicated with one another via cell phone to plan the robberies and procure the necessary tools, including the masks, zip ties, firearms and getaway vehicles.
The jury convicted Berrios of leading the crew in nine robberies:
July 1, 2012: Walgreens store, 5935 W. Addison St., Chicago.
July 28, 2012: Currency Exchange, 2753 N. Ashland Ave., Chicago.
Aug. 15, 2012: Currency Exchange, 2814 N. Milwaukee Ave., Chicago.
Sept. 19, 2012: T-Mobile store, 1552 W. Chicago Ave., Chicago.
Sept. 28, 2012: T-Mobile store, 1958 W. Irving Park Rd., Chicago.
Oct. 2, 2012: T-Mobile store, 4000 W. Fullerton Ave., Chicago.
Oct. 13, 2012: T-Mobile store, 3951 N. Kimball Ave., Chicago.
Oct. 16, 2012: Cricket store, 3200 W. Armitage Ave., Chicago.
Oct. 22, 2012: AT&T store, 3955 W. Belmont Ave., Chicago.
Escambia County Man Receives One Year Probation and a $500.00 Fine for Failing to Report Income to Railroad Retirement BoardRead the Press Release
United States Attorney, Richard W. Moore, announces that Jesse Redmon, a 65-year-old resident of Brewton, Alabama, was sentenced today to a probationary term of one year and received a $500.00 fine for failing to report income after claiming disability retirement from the railroad.
Mr. Redmon began receiving disability benefits from the Railroad Retirement Board in November 2003 and continued receiving benefits until sometime in 2017. Prior to receiving benefits, Redmon agreed to and understood that he was required to report any work related activity. However, the defendant obtained an electrician’s license, started a business called Redmon Enterprises Inc. and began working as an electrician while receiving disability benefits. During the recertification process, Redmon stated that he had not returned to the work force during the time he received disability benefits. The defendant provided the following signed statement:
“I learned that the moneys that I made on a sideline business should have been reported to the RR Board. I didn’t work a regular job a forty hour week. This was part-time work here and there. I am not sure how much money was made at the time. The work was here and there. .This is my fault for not reading my paperwork in detail. I take full responsibility for my short sight. I will do my best to try and figure out how much money was made during the time and if I have to pay back to the RR Board, I am willing to pay back as I can. I apologize to the board for my oversight. I didn’t think those small amount[s] made a difference. Now I know . . . I realize that I started a business and didn’t notify the RR board.”This case was the result of investigation conducted by the U.S. Railroad Retirement Board/Office of Inspector General. Assistant United States Attorney, Gina S. Vann, from the United States Attorney’s Office – Southern District of Alabama led the prosecution.
East Stroudsburg Man Sentenced for Heroin Trafficking Near High SchoolRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on December 21, 2017, United States District Court Judge A. Richard Caputo sentenced Naajeh Torres, age 24, of East Stroudsburg, Pennsylvania, to 24 months’ imprisonment on drug trafficking charges.
According to United States Attorney David J. Freed, Torres pleaded guilty on October 25, 2017, to an indictment charging the distribution of heroin within 1,000 feet of Stroudsburg High School property in April 2016. Additionally, Torres admitted to distributing between 40 and 60 grams of heroin over a three-month period in 2016, which is the equivalent of between 1,600 and 2,400 individual doses.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Stroud Area Regional Police Department and was being prosecuted by Assistant U.S. Attorney Sean A. Camoni.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Drug Counselor Under Contract with U.S. Probation and Pretrial Services Sentenced to 39 Months in Prison for Conspiring to Obstruct JusticeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – Chief United States District Judge James K. Bredar sentenced licensed drug counselor Jennifer Hamersky, a/k/a Jennifer Maroney and Jennifer Hurt, age 34, of Severn, Maryland, to 39 months in prison, followed by 3 years of supervised release for obstruction of justice and conspiring to conceal alleged violations of pretrial release by one of Hamersky’s clients.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; William F. Henry, Chief, U.S. Probation and Pretrial Services Office, District of Maryland; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
According to the open plea Hamersky was a Clinical Professional Addictions Counselor, licensed by the State of Maryland’s Department of Health and Mental Hygiene and was contracted to provide services for United States Probation and Pretrial Service Office (“USPO”) pretrial offenders and supervised release defendants in United States District Court for the District of Maryland, including mental health and substance abuse counseling, and urinalysis testing.
Person A, who was on supervised release under the supervision of USPO, met Hamersky in September 2015, when she conducted an initial substance abuse screening as part of his pretrial release supervision. Hamersky recommended and USPO concurred, that Person A attend individual and group counseling sessions and submit to random urinalysis testing to be performed by her employer.
Hamersky served as Person A’s pretrial release substance abuse and mental health counselor from September 2015 through February 2016, and again from August 2016 through February 2017, with a break due to Person A’s incarceration. Hamersky was responsible for communicating Person A’s compliance with pretrial release conditions of counseling and urinalysis testing to USPO.
According to her open plea, during Hamersky’s initial supervision of Person A, they used oxycodone pills and smoked marijuana and on at least one occasion and Hamersky met Person A’s oxycodone dealer to pick up the oxycodone pills and deliver them to Person A. In addition, court documents show that Hamersky conspired to, and obstructed justice in an effort to conceal from USPO officers and United States Magistrate and District Court Judges, Person A’s violations of his conditions of release. The violations include: use of narcotic drugs or other controlled substances; failure to appear for urinalysis testing; and failure to appear for counseling sessions.
Specifically, court documents show that Hamersky included false information and material omissions in Person A’s monthly treatment reports which were submitted to USPO, and that she provided false information to Person A’s attorney and USPO regarding Person A’s compliance with conditions of release. In November of 2015, Hamersky forged the initials of the company urinalysis collector on reports in order to make it appear that Person A had participated in urinalysis testing, when in fact, he had not. To facilitate these false submissions, Hamersky communicated with Person A. to have him sign and complete the required urinalysis testing log for submission to USPO.
Between October 2015 and through February 2016, Hamersky conspired to prevent the communication to a law enforcement officer or judge. While Person A was incarcerated, Hamersky facilitated his obtaining narcotic drugs for his personal use, then sent a report to Person A’s attorney to be used in court, which she knew contained false representations.
On January 24, 2017, Hamersky discussed how to conceal from Person A’s USPO officer the fact that Person A had missed a urinalysis test. Hamersky then called Person A’s USPO and left a voice message, falsely indicating that Person A had not missed his urinalysis test.
Acting United States Attorney Stephen M. Schenning commended the FBI, USPO, and DEA for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Philip Selden and Rachel Miller Yasser, who prosecuted the case.
Dominican National Sentenced for Role in Massachusetts RMV Identity Theft SchemeRead the Press Release
BOSTON – A Dominican national illegally residing in Jamaica Plain was sentenced yesterday in federal court in Boston for his role in a scheme to produce false identification documents through the Massachusetts Registry of Motor Vehicles (RMV).
Angel Miguel Beltre Tejeda, 32, was sentenced by U.S. District Court Judge George A. O’Toole, Jr. to two years in prison and one year of supervised release. Tejeda will be deported following completion of his sentence. Tejeda was arrested in August 2017 along with five others, and pleaded guilty to aggravated identity theft in October 2017.
The RMV issues identification documents such as drivers’ licenses, learners’ permits and state identification cards. To prevent people from obtaining a fraudulent identification document, the RMV maintains systems to verify whether applicants’ identity information is accurate.
From 2016 to the spring of 2017, Tejeda participated in a scheme to issue Massachusetts identification cards and driver’s licenses to individuals who presented identification documents in identities other than their own. These identification documents included Puerto Rican birth certificates and U.S. Social Security cards that were either counterfeit, genuine but fraudulently obtained, or genuine but altered.
The scheme involved several steps. First, Tejeda would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejeda received hundreds of dollars when he sold an identity document as part of this scheme.
RMV clerks participating in this scheme would then accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State’s Diplomatic Security Service; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
District Man Sentenced to 110 Months in Prison on Federal Firearms ChargeRead the Press Release
WASHINGTON – Marcellus Freeman, 27, of Washington, D.C., has been sentenced to 110 months in prison on a federal firearms charge, 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).
Freeman pled guilty in October 2017 in the U.S. District Court for the District of Columbia. He was sentenced on Dec. 21, 2017, by the Honorable Reggie B. Walton. The sentence is to run consecutively to a 308-month sentence that Freeman is serving in a federal armed carjacking and armored car robbery case prosecuted by the U.S. Attorney’s Office for the District of Maryland.
According to the government’s evidence, on Oct. 26, 2012, Freeman and three other men were involved in an armed robbery of an armored car, a carjacking, and shooting in Takoma Park, Md. The men shot at the armored car driver and a bystander who was the victim of the armed carjacking. The armored car driver was not injured. The bystander, however, was shot in the neck and arm, and required multiple surgeries. Freeman’s fingerprints were found on the armored car’s moneybag and a warrant was issued for his arrest.
On Feb. 18, 2013, Freeman was driving an automobile owned by his girlfriend when he was pulled over by police in the District of Columbia. He provided a false identification card and gave an address in Southeast Washington. Once officers realized the identification card was fake, Freeman provided yet another false name. Officers placed Freeman under arrest when they could not verify his information. Freeman told officers he lived with his girlfriend and asked the officers to call her to retrieve the car and his personal belongings. The girlfriend responded and retrieved the items. She provided the same Southeast Washington address as her place of residence. The FBI learned of Freeman’s arrest, confirmed the girlfriend’s address, and obtained a search warrant for the apartment in connection with the Maryland armored car investigation.
The FBI executed a search of the apartment on Feb. 20, 2013. During the search, the FBI recovered crack cocaine as well as a 50-round ammunition box that contained 42 rounds of .380 caliber ammunition. The agents then recovered a Smith & Wesson .380 caliber pistol that was loaded with eight rounds of ammunition, matching those found in the ammunition box, between the mattress and the box spring in the bedroom.
Forensic testing subsequently revealed Freeman’s fingerprints on the ammunition box that contained 42 rounds of ammunition. Freeman acknowledged, as part of his plea in this case, that he possessed the firearm in connection with his possession with the intent to distribute the crack cocaine.
In Maryland, Freeman previously pled guilty to robbery, discharging a gun during the robbery, and carjacking for his role in the crimes that took place in Takoma Park.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. 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 Paralegal Specialists Jeannette Litz and Mary Downing; Legal Assistants Kate Abrey, Holly Crouse, and Latoya Wade; Clerk Antonia Jackson, and Interns Jeslin Panicker and Max Ruocco. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys George Eliopoulos and Akhi Johnson, who prosecuted the case.
Defense Contractors Sentenced to Prison for Defrauding the United StatesRead the Press Release
Assistant U.S. Attorney Rebecca S. Kanter (619-546-7304)
NEWS RELEASE SUMMARY – December 14, 2017
SAN DIEGO – Jeffrey Harrington and Michael Mayer, owners of several defense contracting firms, were each sentenced in federal court today to 15 months in custody for conspiring to commit wire fraud and file false claims, and to making false statements on their federal income tax returns.
Harrington was also ordered to pay a $10,000 fine, $141,113 in restitution to the Internal Revenue Service, and to forfeit $708,679 in ill-gotten gains; likewise Mayer was ordered to pay a $10,000 fine plus $299,511 in restitution to the IRS and forfeit $708,678.
The defendants admitted fraudulently obtaining money from the United States by making false representations and false claims to the Department of Defense (“DoD”) for payment on items defendants knew had not been sold to the Navy, but which had been substituted with other, unauthorized products. Three of the companies owned by Harrington and Mayer – including San Diego-based Veteran Logistics, Inc. (“VLI”), Industrial Xchange, Inc. (“IXI”), and Boston Laser Technology, Inc. (“BLTI”) – were also ordered to forfeit over $1.4 million and pay a $1 million fine for their roles in the offenses.
According to court records, the defendants regularly sold supplies to the DoD, the Department of Navy, the General Services Administration and other federal departments and agencies. Each company had multiple contracts with DoD’s Defense Logistics Agency (“DLA”) to sell products to the federal government through “EMALL,” currently known as “FedMall,” which is a web-based electronic commerce site that allows authorized users to search, compare and purchase commonly used products. Each contract allowed the company to sell pre-approved goods at set, maximum prices. As detailed in court filings, however, the defendants fraudulently manipulated the EMALL system to substitute unapproved items for the goods purportedly sold to the government.
In one example, the defendants agreed on EMALL to supply Maritime Expeditionary Security Group Two at Norfolk Naval Shipyard with over 10,000 “Post-It” writing paper pads. After colluding with Navy personnel, the defendants replaced these approved items with 50 electronic transceivers they were not authorized to sell. By fraudulently substituting these products, the defendants were able to circumvent procurement controls and charge the military a 134% mark-up on the transceivers. The defendants repeatedly employed this fraudulent technique dozens of times, on a host of products, across a wide array of components in the military.
The scheme also allowed the defendants to conceal the sale of consumer electronics and other items that could be readily misused by corrupt military officials. For example, in one contract VLI agreed to supply the USS Ronald Reagan aircraft carrier with industrial, motorized plumber snakes. VLI then fraudulently substituted that order with 100 29” Toshiba TVs, 60 32” Toshiba TVs and 160 TV tilt mounts. VLI purchased these items for only $39,558, then turned around and billed the government $66,807. In another example discussed in court, VLI fraudulently substituted an order for the USS Germantown with, among other things, two pink Nintendo gaming systems, two iPod Touch devices, and a PlayStation.
The plea agreements also detailed a series of transactions between October 2013 and April 2014, wherein IXI and another VLI-affiliated company, At Your Command (“AYC”), created approximately twenty EMALL carts for Navy Explosive Ordnance Disposal Group #2 in Norfolk, Virginia, containing various items, including bags, canvas organizer bags, and pouches, for which the defendants billed DLA and received $1,303,024. In reality, the defendants actually provided EODG-2 group with parachutes, altimeters and other sky diving gear purchased for approximately $924,252, realizing a profit of $378,772 by substituting improperly procured parachuting equipment.
The defendants were hugely successful in their fraud, and received approximately $45 million for EMALL sales related to over 12,000 transactions between approximately March 1, 2008 and January 31, 2015. On a small sample of 60 of those transactions between August 2009 and October 2013, totaling approximately $2,868,590 in sales, the loss to the Navy was approximately $1,417,395, indicating a fraud loss of approximately 50%.
Harrington and Mayer also pleaded guilty to false statements on their tax returns for the tax years 2010 and 2014. Harrington and Mayer both used VLI to pay personal expenses in excess of $200,000 and $100,000, respectively, thereby underreporting their 2010 income on their personal tax returns. Both defendants, in contravention of the advice of their tax professionals, continued using VLI to pay for personal expenses and not declaring these benefits as income, causing their 2014 income tax returns to under-report their income by approximately $436,017 and $674,704, respectively. By under-reporting their income, Harrington underpaid taxes by $141,113, and Mayer underpaid taxes by $299,511, for 2010 and 2014.
In addition to these criminal sentences, all defendants will be suspended from government contracting.
United States Attorney Braverman observed: “Not only did the defendants inflict financial harm on the taxpayers by charging arbitrary mark-ups on these items, but they potentially compromised combat readiness by providing unauthorized, non-conforming parts. What’s more, their scheme posed a significant danger of corrupting Navy personnel and others by essentially creating a ‘slush fund’ to purchase non-military items, such as televisions, computers, gaming systems, cameras, iPhones and other electronics. This Office will continue to use all the tools available, including the District’s Procurement Fraud Working Group, to prevent and deter those who pose the threat of fraud and corruption to our procurement process.”
Chris Hendrickson, Special Agent in Charge of the Western Field Office, Defense Criminal Investigative Service, said, “The defendants in this case exploited their connections with the U.S. Navy and others to grossly inflate their profitability and otherwise cheat the taxpayers and their commercial competition over a period of many years. This type of fraud will be aggressively investigated by DCIS and our partners at every opportunity to preserve the integrity of the contracting process.”
“The success of this case is a direct result of the joint efforts of the Naval Criminal Investigative Service, our Federal Law Enforcement Partners and the U.S. Attorney's Office,” said Edward Denion, Assistant Special Agent in Charge of the NCIS Southwest Field Office. “Protecting our warfighters is one of the top priorities of NCIS, and this investigation is an example of how we do this. Anyone considering defrauding the Navy and taxpayers should know NCIS will aggressively pursue all such allegations and work with our partners to ensure the conviction of all those involved.”
FBI Special Agent in Charge Eric S. Birnbaum stated, “Today’s convictions are a result of federal partners teaming together to stop the loss of millions of government dollars as well as the greed and deceit employed in this case.” SAC Birnbaum continued, “The FBI will continue to work to root out fraud against our government and uncover the schemes to steal federal taxpayer dollars.” The FBI encourages the public to report allegations of public corruption to the FBI public corruption hotline at telephone number (877) NO-BRIBE (662-7423).
“The sentences handed down today should serve as a warning to the public that those who seek to defraud the United States government by lining their pockets through fraudulent procurement schemes will face severe consequences,” said IRS Criminal Investigation’s Special Agent in Charge R. Damon Rowe. “The agents who worked this case should be commended for their thorough investigation and for expertly following the paper trail that led to the unraveling of this complex fraud scheme.”
U.S. District Judge Michael M. Anello had previously sentenced two other co-defendants, Kimberlee and Natalee Hewitt, on October 16, 2017, to 3 years’ probation and $100,000 each in forfeiture, as well as $3,500 each in criminal fines.
CORPORATE DEFENDANTS
Veteran Logistics, Inc.
Industrial Xchange, Inc.
Boston Laser Technology, Inc.
INDIVIDUAL DEFENDANTS
Jeffrey Harrington Age: 55 San Diego, CA
Michael Mayer Age: 63 San Diego, CA
Kimberlee Hewitt Age: 45 Ridgewood, New York
Natalee Hewitt Age: 49 Virginia Beach, Virginia
Criminal Case No.
17CR0488-MMA
SUMMARY OF CHARGES
Count 1 (All):
Conspiracy to commit wire fraud and file false claims (18 U.S.C. § 371).
Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10.
Count 2 (Harrington):
False Statement on Tax Return (26 U.S.C. § 7206(1)).
Maximum penalties: 3 years’ imprisonment; 1 year supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100.
Count 3 (Mayer):
False Statement on Tax Return (26 U.S.C. § 7206(1)).
Maximum penalties: 3 years’ imprisonment; 1 year supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100.
AGENCIES
Defense Criminal Investigative Service
Defense Logistics Agency, Office of Inspector General
Federal Bureau of Investigation
General Services Administration, Office of Inspector General
Internal Revenue Service, Criminal Investigation
Naval Audit Service
Naval Criminal Investigative Service
December 2017 Grand JuryRead the Press Release
Acting United States Attorney Robert C. Stuart announced the federal Grand Jury for the District of Nebraska has returned 43 indictments charging 53 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jose Celedon Luna, age 39, of Grand Island, is charged with illegal reentry after deportation on or about November 27, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Manazheega Cleveland, age 18, of Winnebago, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with interference with commerce by robbery on or about October 24, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges Cleveland with using, carrying and brandishing a firearm during said robbery in Count I. The maximum possible penalty if convicted is 7-Life years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Warren Dwayne Vasser, age 44, Warren Dwayne Copeland, age 27, and Angelo C. Douglas, age 25, are charged in a three-count Indictment. Count I of the Indictment charges the defendants with armed bank robbery and aiding and abetting on or about November 15, 2017. The maximum possible penalty if convicted is 25 years imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Vasser, Copeland and Douglas with using, carrying and brandishing a firearm during said robbery on or about November 15, 2017, in Count I. The maximum possible penalty if convicted is 7-Life years imprisonment consecutive to any other imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges Vasser with felon in possession of a firearm on or about November 15, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Laura Cortez-Avila, age 42, of Omaha, is charged with falsely representing a Social Security number on or about October 26, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* James Charles Fentress-Dismuke, age 20, of Omaha, Jonathan Ramone Franklin, age 33, of Papillion, Vincent L. McGee, age 27, of Omaha, and Corita Yvonne Burnett, age 44, of Omaha, are charged in a three-count Indictment. Count I of the Indictment charges the defendants with bank robbery on or about November 22, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Fentress-Dismuke, Franklin, McGee, and Burnett, with using, carrying and brandishing a firearm during said robbery on or about November 22, 2017, in Count I. The maximum possible penalty if convicted is 7-Life years imprisonment imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges Franklin with felon in possession of a firearm on or about November 22, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Kaelyn Foster, age 31, is charged in a two-count Indictment. Count I of the Indictment charges Foster with false statement in acquiring a firearm on or about July 27, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Foster with false statement to a Federally Licensed Firearms Dealer on or about July 27, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jordan Gilreath, age 23, is charged with felon in possession of a firearm on or about November 12, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Dustin Hansen, age 24, of Lincoln, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with distribution of child pornography on or about April 17, 2016. The maximum possible penalty if convicted is 20 years imprisonment, there is a 5 year mandatory minimum sentence, a $250,000 fine, fe years term of supervised release, a $100 special assessment with an additional special assessment of $5,000. Count II of the Indictment charges Hansen with possession of child pornography on or about November 15, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 5-Life term of supervised release, a $100 special assessment with an additional special assessment of $5,000 for each count..
* Richard Allen Knight, age 47, of Omaha, is charged with failure to register as a sex offender on or about October 17, 2017 to on or about November 14, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Lucas J. Lacy, age 33, of Omaha, is charged in a two-count Indictment with failure to register as a sex offender both in October 2016 and again in November 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Juan Pablo Limon Martinez, age 38, is charged with illegal reentry after deportation following an aggravated felony conviction on or about November 17, 2017. The maximum possible penalty if 0convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Antonio M. Luna, age 27, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute a mixture or substance containing a detectable amount of cocaine on or about November 9, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Luna with felon in possession of a firearm on or about November 9, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges Luna with use of a firearm on or about November 9, 2017. The maximum possible penalty if convicted is 5 years-Life consecutive imprisonment, a $250,000 fine, a 5 year term of supervised release and $100 special assessment.
* Carlos Manriquez-Aviles, age 28, Jorge Antonio Alonzo-Lopez, age 28, Roman Lazcano-Acosta, age 28, and America Saucedo-Moreno, age 43, are charged in a fourteen-count Indictment. The defendants are charged in Count I with conspiracy to manufacture 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about September 2016 and November 15, 2017. The maximum possible penalty if convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 years term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count II with distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about August 1, 2017. The maximum possible penalty if convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count III with possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about September 14, 2017. The maximum possible penalty if convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 years term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count IV with distribution of 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about September 17, 2017. The maximum possible penalty of convicted is 5-40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Alonzo-Lopez and Saucedo-Moreno are charged in Count V with Distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about October 28, 2017. The maximum possible penalty of convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count VI with distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about October 28, 2017. The maximum possible penalty of convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count VII with distribution of 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about November 11, 2017. The maximum possible penalty of convicted is 5-40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Lazcano-Acosta is charged in Count VIII with distribution of 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about November 11, 2017. The maximum possible penalty of convicted is 5-40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. . Manriquez-Aviles is charged in Count IX with distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about October 28, 2017. The maximum possible penalty of convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Lazcano-Aviles is charged in Count X with distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about November 15, 2017. The maximum possible penalty of convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Lazcano-Acosta is charged in count XI with illegal reentry after deportation on or about November 16, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count XII with use of facilities in interstate commerce in aid of racketeering between on or about July 2017 and on or about November 15, 2017. The maximum possible penalty of convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count XIII with money laundering between on or about October 24, 2017. The maximum possible penalty of convicted is 20 years imprisonment, a $500,000 fine, a 3 year term of supervised release, and a $100 special assessment. Manriquez-Aviles is charged in Count XIV with conspiracy to commit money laundering between on or about October 2017 and on or about November 15, 2017. The maximum possible penalty of convicted is 20 years imprisonment, a $500,000 fine, a 3 year term of supervised release, and a $100 special assessment. The Indictment also includes a Forfeiture Allegation for U.S. Currency.
* Chris Martinez, age 53, of Tilden, NE, is charged in a two-count Indictment. Martinez is charged in Count I with conspiracy to manufacture 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between on or about January 1, 2014 and December 1, 2017. The maximum possible penalty if convicted is 10-Life years imprisonment, a $10,000,000 fine, a 5 years term of supervised release, and a $100 special assessment. Martinez is charged in Count II with possession with intent to distribute 5 grams or more of actual methamphetamine on or about August 13, 2017. The maximum possible penalty if convicted is 5-40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Darin Mason, age 41, is charged with felon in possession of a firearm on or about September 14, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Kevin McRae, age 47, of Oklahoma City, Oklahoma, is charged with cyberstalking from on or about December, 2015, and continuing until on or about October, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Mejia Lopez, age 40, of Fremont, is charged with illegal reentry after deportation on or about November 9, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Edgar Israel Nino Nino, age 24, of Lincoln, is charged with illegal reentry after deportation following a felony conviction on or about November 24, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Clemente Reyna Casimiro , age 25, of Omaha, is charged with illegal reentry after deportation following an aggravated felony conviction on or about November 20, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Sandra Rivera-Manzo, age 43, of Council Bluffs, and Jose Manuel Lopez-Alvarado, age 27, of Omaha, are charged with possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about December 8, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment and any property used to commit the offense should be forfeited to the United States.
* Wayne Devante Rolling, age 20, is charged in a three-count Indictment. Counts I through III of the Indictment charge the defendant with bank robbery on or about November, 7, 2017; on or about November 15, 2017; and on or about November 20, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Sara Ann Spencer. age 25, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about September 17, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Spencer with possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about October 28, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Marco Antonio Tovaldo-Valadez, age 26, of Wahoo, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with fraud and misuse of identification documents on or about October 28, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Tovaldo-Valadez with false representation of a Social Security Number on or about October 28, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Clear Lake Man Sentenced to Nearly Three Years in Prison After Creating Fake Collateral Documents in Connection with $3.8 Million Loan RequestRead the Press Release
A man who created false documents to convince Farm Credit Services of America (FCSA) to give him and his son loans totaling more than $3.8 million was sentenced yesterday to 33 months in federal prison.
Michael Royster, 53, from Clear Lake received the prison term after a guilty plea to providing false documents to FCSA.
In a plea agreement, Royster admitted that, in an effort to get $3.8 million in credit for 2015 farming expenses, he created fake contracts to mislead FCSA into thinking that local cooperatives or other purchasers were storing more of his and his son’s corn and soybeans than what they actually had in storage. Royster created the fake documents by cutting and pasting additional digits on the actual contracts and then making photocopies of the altered documents. He admitted, for example, to falsifying a contract showing a cooperative had approximately 20,000 bushels of his corn by adding a 1 to make it appear as though the cooperative instead held 120,000 bushels. As part of the plea agreement, Royster admitted to creating and using similar fake documents to get loans in 2011, 2012, and 2013.
Royster was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Royster was sentenced to 33 months’ imprisonment, and a special assessment of $100 was imposed. He was also ordered to make $1,133,821.31 in restitution to FCSA. He must also serve a term of supervised release after the prison term.
The case was prosecuted by Assistant United States Attorney Jacob A. Schunk and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3018.
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Citizen of Mexico Pleads Guilty to Heroin Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE DAVID SILVA PESTANO, 33, a citizen of Mexico, pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to heroin trafficking charges.
According to court documents, SILVA PESTANO and others conspired to traffic multi-kilogram quantities of heroin from Mexico to the Bridgeport, Connecticut area. On multiple occasions between approximately April 2015 and March 2017, SILVA PESTANO personally transported more than 30 kilograms of heroin into Connecticut.
On February 14, 2017, SILVA PESTANO was arrested in Nogales, Arizona, after he crossed the border on a motorcycle carrying 11.94 kilograms of heroin in a concealed compartment.
On March 16, 2017, a grand jury in Hartford returned an indictment charging SILVA PESTANO and six other individuals with conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and related offenses. SILVA PESTANO also was charged in the District of Arizona with possession with intent to distribute one kilogram or more of heroin. The Arizona case was transferred to the District of Connecticut for further prosecution.
SILVA PESTANO pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and one count of possession with intent to distribute one kilogram of heroin.
Judge Bryant scheduled sentencing for March 22, 2018, at which time SILVA PESTANO faces a mandatory minimum term of imprisonment of 10 years maximum term of imprisonment of life.
SILVA PESTANO has been detained since his arrest.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.
Camarillo Man Found Guilty of Being Felon in Possession of FirearmsRead the Press Release
LAS VEGAS, Nev. – A jury convicted a former felon Thursday of unlawful possession of one Heckler & Koch machine pistol and one Sig Sauer automatic rifle after multiple prior felony convictions in California, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.
Following a three-day jury trial, Jack Benjamin Hessiani, 39, of Ventura, California, was found guilty of one count of a felon in possession of a firearm. United States District Judge Larry R. Hicks presided over the trial and scheduled sentencing for March 22, 2018. At the time of sentencing, Hessiani faces the statutory maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Labor Office of the Inspector General. Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra Michael are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
California Man Arrested for Attempting to Provide Material Support to A Terrorist OrganizationRead the Press Release
A federal complaint was unsealed today, charging Everitt Aaron Jameson, 26, of Modesto, with attempting to provide material support to a foreign terrorist organization, Attorney General Jeff Sessions and United States Attorney Phillip A. Talbert announced. Jameson was arrested today and is scheduled to appear before U.S. Magistrate Judge Barbara A. McAuliffe in Fresno, California at 2pm.
According to court documents, Jameson had several online interactions with a confidential source in which he expressed support for the October 31, 2017, terrorist attack in New York City and offered his services for “the cause.” In subsequent communications with an undercover agent, Jameson referred to his training in the U.S. military and noted he had been trained for combat and war. Jameson later met with another undercover agent whom he believed to be associated with the senior leadership of the foreign terrorist organization, ISIS (the Islamic State of Iraq and al-Sham, also known as ISIL). During his interactions with this undercover agent, Jameson offered to carry out violent acts and to provide financial support for the terrorist organization."The Department of Justice works resolutely every day to prevent terrorist attacks," said Attorney General Sessions. "In my time back at the Department, nothing has impressed me more. Today, our incredible law enforcement officers have once again helped thwart an alleged plot to kill Americans. I want to thank the FBI agents and federal prosecutors and everyone else who helped make this possible. The threat from radical Islamic terrorism is real—and it is serious—but the American people can be assured that the Department of Justice remains vigilant in protecting our homeland."
U.S. Attorney Phillip A. Talbert stated, “I want to express my thanks to the FBI for working in partnership with my office on this case. We are grateful that our hardworking law enforcement partners remain vigilant in protecting our communities, especially during this holiday season.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Dawrence W. Rice and Christopher D. Baker are prosecuting the case, together with Trial Attorney Brenda Sue Thornton from the U.S. Department of Justice’s National Security Division, Counterterrorism Section.
If convicted, Jameson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Clarence Adams, 35, of Buffalo, NY, pleaded guilty, before U.S. District Judge Richard J. Arcara, to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine. The charge carries a mandatory minimum 20 years in prison, a maximum of life and a $20,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on May 13, 2016, law enforcement officers seized three packages containing cocaine that were shipped from Texas to Buffalo to various recipients. The cocaine was hidden inside air purifiers. Officers seized two of the packages before they were delivered and set-up controlled deliveries to addresses on Tyler and Custer Streets in Buffalo. The three packages contained a total of five kilograms of cocaine. Adams recruited five individuals to receive the packages. He and co-defendant Robert Hall paid the recipients of the packages in money or crack cocaine. A total of 19 packages were shipped from Texas to Buffalo and each package contained at least one kilogram of cocaine.
During a search of the defendant’s home, law enforcement officers found a drug ledger, multiple cell phones, rubber gloves, digital scale and other drug paraphernalia.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast; and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for April 17, 2018, at 12:30 p.m. before Judge Arcara.
Brockton Man Pleads Guilty to Illegal Firearm PossessionRead the Press Release
BOSTON – A Brockton man with two prior federal firearm convictions pleaded guilty yesterday in federal court in Boston to a federal firearms charge.
Darnell Upshaw, 35, pleaded guilty to being a felon in possession of a firearm and ammunition. U.S. District Court Judge Indira Talwani scheduled sentencing for March 22, 2018.
On May 10, 2017, police officers responded to a report of shots fired on Owens Avenue in Brockton. Based on information provided at the scene, law enforcement officers suspected that Upshaw was responsible for the shooting and began surveillance of his house. Subsequently, officers observed a vehicle matching the description of the shooter’s vehicle arrive and park near Upshaw’s house, where two men exited the vehicle. Minutes later, Upshaw was observed leaving his house and driving away in a black SUV.
The officers followed the SUV and when it stopped, Upshaw exited and took off running with his right arm braced tightly against his side. The officers followed Upshaw as he fled, climbed over a fence and entered his girlfriend’s mother’s house. Upshaw was apprehended inside the house and a loaded firearm was found lying on top of a pile of lawn clippings near the fence Upshaw had climbed. Subsequent lab analysis revealed that Upshaw’s shirt bore traces of gunshot primer residue.
The charge of being a felon in possession a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence of Lelling’s Criminal Division is prosecuting the case.
Attorney General Sessions Reiterates Support of DEA Efforts to Investigate Hezbollah’s Drug Trafficking and Related Activities and Orders Review of Prior DEA InvestigationsRead the Press Release
Attorney General Jeff Sessions today directed a review of the handling of Project Cassandra, a law enforcement initiative targeting Hezbollah’s drug trafficking and related operations in the United States and abroad, to evaluate allegations that certain matters were not properly prosecuted and to ensure all matters are appropriately handled.
“Protecting our citizens from terrorist organizations and combatting the devastating drug crisis gripping our nation are two of the Justice Department’s top priorities,” said Attorney General Sessions. “Operations designed to investigate and prosecute terrorist organizations that are also fueling that drug crisis must be paramount in this administration. The DEA has worked tirelessly on this front. I am committed to giving our hard working and dedicated DEA agents all the tools that they need to allow them to shut down these drug rings.
“While I am hopeful that there were no barriers constructed by the last administration to allowing DEA agents to fully bring all appropriate cases under Project Cassandra, this is a significant issue for the protection of Americans. We will review these matters and give full support to investigations of violent drug trafficking organizations
“The Department of Justice is absolutely committed to investigating and prosecuting international drug trafficking organizations and with the assistance of our DEA and FBI agents we will leave no stone unturned as we work to making America safer.”
Additional Charges Announced Against Two Bronx Men for A 2014 Murder and 2014 Drug-Related ShootingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Darcel D. Clark, the Bronx County District Attorney, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), James J. Hunt, the Special Agent-in-Charge of the New York Field Office of the U.S. Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced additional charges in a Superseding Indictment[1] against members of a drug trafficking crew based in the Bronx. In the Superseding Indictment returned on Tuesday, December 19, JASON POLANCO, a/k/a “Jin,” a/k/a “Wolfman,” is charged with the August 31, 2014, murder of Shawn Ross, a/k/a “S.B.,” and RENE RUIZ, a/k/a “Lil’ Rene,” a/k/a “Nae Nae,” is charged with a May 2, 2014, non-fatal shooting.
POLANCO, RUIZ, and 12 others were previously charged in an Indictment unsealed on February 6, 2017. That prior Indictment charged narcotics trafficking, firearms possession, and participation in robberies of commercial establishments in the Bronx and Manhattan. In addition to the new charges described above, the Superseding Indictment re-alleges the charges that had previously been brought in the Indictment against POLANCO, RUIZ, and 10 others. The case is assigned to U.S. District Judge Laura Taylor Swain. POLANCO, RUIZ, and the 10 other defendants charged in the Superseding Indictment were arraigned today.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Jason Polanco and Rene Ruiz not only participated in a drug conspiracy, but also personally participated in the drug crew’s gun violence, including, for Polanco, a murder. Fortunately, federal authorities and our local law enforcement partners, working together, can make our streets safer, as they did in this case.”
Bronx District Attorney Darcel D. Clark said: “We are pleased to have assisted our federal law enforcement partners in their superseding indictment charging Jason Polanco with the murder of a Bronx man. It is one of numerous violent felonies that Polanco and his co-defendants allegedly committed in the Bronx and Manhattan. In addition to facing justice in federal court, he will face justice in the Bronx for shooting two New York City police officers in 2015. With seamless cooperation between city, state and federal agencies we will continue to do all we can to ensure safety for all who live and work in the Bronx.”
ATF Special Agent in Charge Ashan M. Benedict said: “Jason Polanco, Rene Ruiz and his charged co-conspirators are alleged to have committed a litany of crimes, including firearms offenses and violent crimes. The defendants are alleged to have possessed and used firearms in the commission of violent crimes with some crimes resulting in serious bodily injury and in one case death. The members of this violent drug trafficking crew have been a plague to the citizens of the Bronx and Manhattan for some time. I would like to commend our partners in the Bronx District Attorney’s Office and the United States Attorney’s Office for their collaboration that made this case possible. I also would like to extend my gratitude to the special agents of the DEA and ATF, and the NYPD detectives, who worked tirelessly to bring these individuals to justice.”
DEA Special Agent in Charge James J. Hunt said: “This case shows the intrinsic link between drug trafficking, crime and gun violence. New York law enforcement is committed to weeding out drug dealers in our neighborhoods so law abiding residents can live in neighborhoods free from drugs and safe from the consequences of drug trafficking.”
POLANCO is separately being prosecuted by the Bronx County District Attorney’s Office for his alleged shooting of two NYPD Officers in January 2015. Mr. Kim thanked the District Attorney’s Office for their cooperation in the federal investigation of POLANCO for the alleged murder of Shawn Ross.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Justina L. Geraci, Jordan Estes, Christopher J. Clore, and Amanda L. Houle are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.
3 Linked to Medical Supply Firms in Hawthorne and Ventura Arrested in $24 Million Scam Involving Power Wheelchairs and RepairsRead the Press Release
LOS ANGELES – The operator of two now-defunct medical supply companies in Hawthorne and Ventura, as well as two former employees, have been arrested on federal healthcare fraud charges for allegedly billing Medicare well over $24 million for medically unnecessary power wheelchairs (PWC) and the repair of medical equipment.
The scheme is outlined in a 29-count indictment that was returned by a federal grand jury on December 14 and unsealed yesterday after the three defendants were arrested by special agents with the United States Department of Health and Human Services’ Office of Inspector General and the Federal Bureau of Investigation.
According to the indictment, Tamara Yvonne Motley operated Action Medical Equipment and Supplies, which was based in Hawthorne until 2014, and Kaja Medical Equipment & Supply, which was based in Ventura until late 2016. Motley allegedly orchestrated a scheme in which corrupt physicians prescribed medically unnecessary durable medical equipment (DME), such as PWCs, and Motley oversaw the submission of fraudulent bills to Medicare.
In January 2011, when Medicare changed the reimbursement rules for PWCs, Action largely stopped Medicare billing for PWCs and, instead, started billing Medicare for PWC repairs. Action and Kaja allegedly submitted bills for PWC repair or replacement services that were not medically necessary, were not needed to make the PWCs serviceable, and often simply were not performed. The majority of bills submitted in this case allegedly involve fraudulent repair work.
The defendants taken into custody yesterday are:
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Tamara Yvonne Motley, also known as Tamara Ogembe, 49, of Redondo Beach;
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Cynthia Karina Marquez, 42, of Paramount, who worked as an office manager at both Action and Kaja; and
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Juan Roberto Murillo, 41, of Montebello, who worked at both medical supply companies as a repair technician.
According to the indictment, over a nearly eight-year period, Action billed Medicare more than $18.2 million for DME – most for PWCs, but also for PWC accessories, knee braces and back braces – and the repair or replacement of PWCs. Medicare paid Action nearly $10.3 million.
Between July 2013 and November 2016, Kaja billed Medicare $6.3 million for PWCs, PWC-related accessories, and the repair or replacement of PWCs. Medicare paid Kaja approximately $2.8 million for those claims, the indictment alleges.
The indictment charges all three defendants with 20 counts of healthcare fraud and one count of conspiring to launder money.
Motley and Marquez are further charged with two counts of aggravated identity theft in relation to the use of other persons’ names to operate the medical supply companies. Motley is additionally charged with six counts of structuring cash transactions to avoid federal reporting requirements for transactions of more than $10,000.
If convicted, each of the three defendants would potentially face decades in federal prison. Each count of healthcare fraud carries a statutory maximum sentence of 10 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
At an arraignment yesterday afternoon in United States District Court, all three defendants entered not guilty pleas to the charges in the indictment and a trial was scheduled for February 13. A United States Magistrate Judge set bond for Motley and Murillo, and Marquez was ordered detained.
This case is the product of an investigation by the United States Department of Health and Human Services’ Office of Inspector General and the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Julian L. André of the Major Frauds Section.
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21 December 2017
“Great Outdoors Bandit” Pleads Guilty to Bank RobberyRead the Press Release
BOISE – Josue Daniel Alfaro, a/k/a Danny Alfaro, a/k/a the “Great Outdoors Bandit,” age 32, of Portland, Oregon, pleaded guilty yesterday to five counts of bank robbery and one count of attempted bank robbery, U.S. Attorney Bart M. Davis announced. Pursuant to a written plea agreement filed with the court, Alfaro pleaded guilty to Counts 1, 3, 5, 7, 9, and 11 of the indictment.
According to the plea agreement, the defendant admitted to robbing, and attempting to rob, the following banks on the following dates and in the following amounts:
- On December 21, 2016, the U.S. Bank at 10500 West Overland Road in Boise, Idaho for $3,174;
- On December 21, 2016, the Idaho Central Credit Union at 1615 South Celebration Avenue in Meridian, Idaho for $2,100;
- On March 24, 2017, the Bank of the West at 9140 West Emerald Street in Boise, Idaho for $3,469;
- On May 24, 2017, the Alpine Credit Union at 351 East 800 South in Orem, Utah for $12,736;
- On August 7, 2017, the Bank of the West at 9140 West Emerald Street in Boise, Idaho. Attempted robbery, no loss;
- On August 7, 2017, the Pioneer Federal Credit Union at 850 East Fairview Avenue in Meridian, Idaho for $9,637;
- On August 7, 2017, the Clarity Federal Credit Union at 555 South Meridian Road in Meridian, Idaho for $100.
According to the plea agreement, for each of the robberies, Alfaro obscured his face with a baseball cap and black sunglasses. He provided the tellers with notes demanding money. One of the notes, provided to the Idaho Central Credit Union demanded $40,000 in large bills. Another note, provided to the Bank of the West on March 24, stated: “Give me money or I will shoot the teller next to you.” Yet another note, provided to the Pioneer Federal Credit Union on August 7, stated: “give me all of your hundred dollar bills, I have a gun.”
In total, Alfaro robbed $31,216 from the six banks and credit unions, whose deposits were federally insured. According to the plea agreement, Alfaro agreed to pay this sum in restitution to the banks and credit unions.
According to the plea agreement, on August 13, 2017, Alfaro was arrested at Los Angeles International Airport attempting to board an international flight to Brussels, Belgium. In his carry-on bag, the defendant possessed $2,826 in cash that he obtained from the robberies.
Separately, for each count, Alfaro faces a statutory maximum of 20 years in prison, a $250,000 fine, and not more than 5 years of supervised release.
Sentencing for Alfaro is set for March 13, 2018, before Chief U.S. District Judge B. Lynn Winmill, at the federal courthouse in Boise.
The case was investigated by the Federal Bureau of Investigation (Boise, Salt Lake City, and Los Angeles field offices), the Boise Police Department, and the Meridian Police Department.
York Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Timothy Ray Wright, age 30, of York, Pennsylvania, was indicted on December 20, 2017, by a federal grand jury with drug trafficking and firearms violations.
According to United States Attorney David J. Freed, the indictment alleges that on August 17, 2017, Wright possessed with intent to distribute cocaine, cocaine base and fentanyl. It is further alleged that Wright possessed a 9mm Walther Creed pistol as a previously convicted felon, and possessed the firearm in furtherance of drug trafficking.
The charges stem from an investigation conducted by the York County Drug Task Force, assisted by the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug trafficking offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine; the maximum penalty for possession of a firearm in furtherance of drug trafficking is life in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wilson Man Sentenced on Drug and Gun ChargesRead the Press Release
RALEIGH – The United States Attorney Office for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday in federal court, United States District Judge Terrence W. Boyle sentenced Deterri Obrian Lucas, 32, of Wilson, NC to 126 months of imprisonment followed by 5 years of supervised release.
On September 6, 2017, LUCAS pled guilty to a three-count indictment, charging Possession with Intent to Distribute Heroin, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Possession of a Firearm by a Felon.
The evidence established that on June 26, 2016, officers of the Wilson Police Department conducted a traffic stop on LUCAS to serve outstanding warrants for his arrest. Officers arrested LUCAS, and in a subsequent search of the vehicle, they located a loaded 9mm handgun under LUCAS’ seat. They later found a quantity of heroin hidden in LUCAS’ pants.
The Wilson Police Department conducted the investigation of this case. Assistant United States Attorney Jake D. Pugh is prosecuting this case on behalf of the government.
Wilmington, DE Man Charged with Illegal Re-entry After DeportationRead the Press Release
Sergio Jonathan Caal-Melendez, of Wilmington, DE, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Louis D. Lappen. The indictment alleges that on or about November 27, 2017, Caal-Melendez, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about May 21, 2008.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Sarah M. Wolfe.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wildwood Man Pleads Guilty to Wire FraudRead the Press Release
St. Louis, MO – Paul Creager, 39, of Wildwood, pleaded guilty to two counts of wire fraud in connection with the sale of equity in his construction business. Creager appeared before U.S. District Judge Rodney W. Sippel, and admitted to misrepresenting the financial health of his company in connection with the solicitation of $724,024.14 in investments from two individuals in 2016. Specifically, Creager admitted to omitting his company’s largest obligation from financial information provided to the investors. Without this large debt on its books, Creager’s company appeared valuable and profitable. With it, it was not. Only months after receiving the victims’ investment, Creager’s company became insolvent and the victims’ investments are now worthless.
Judge Sippel accepted Creager’s plea and deferred sentencing until March 21, 2018. The U.S. Attorney’s Office stated in court it has additional investigations into other aspects of Creager’s business that were not resolved by today’s guilty plea.
At sentencing, Creager faces up to 20 years’ imprisonment, a fine of not more than $250,000 or both for each count of wire fraud. Restitution to the victims is mandatory. The government has also seized financial accounts associated with Creager and a vehicle in the course of its investigation.
The case was investigated by the St. Louis Division of the FBI. Assistant U.S. Attorney Tom Albus is handling the case for the government.
Western District of Tennessee to Receive Two Additional Federal Prosecutors to Fight Violent CrimeRead the Press Release
Memphis, TN – The Western District of Tennessee will receive two additional federal prosecutors to combat violent crime in the district, announced United States Attorney D. Michael Dunavant.
As one of many steps Attorney General Sessions has announced to counter the surge in violent crime afflicting communities across our country, the Department of Justice is allocating 40 Assistant United States Attorney positions to U.S. Attorney’s Offices nationwide. These prosecutors will be solely focused on bringing violent criminals to justice through aggressive enforcement of federal laws.
The Western District of Tennessee is receiving two of the new dedicated positions. One of the additional prosecutors will be assigned to the Memphis office, and the other will be assigned to the Jackson office.
United States Attorney Dunavant said, "To those communities in the Western District that have been besieged by gangs and violent crime, I am thrilled to say that help is on the way. These dedicated prosecutors – working closely with our law enforcement partners – will help incapacitate violent offenders and remove them from our streets. I look forward to filling these slots promptly and putting these additional resources to work for the citizens of West Tennessee."
Violent crime is on the rise in Memphis and Jackson. For example, Memphis saw 228 murders and a major violent crime increase of 25% last year. And the violence is not confined to Memphis and Jackson. Other cities and communities in West Tennessee such as Dyersburg, Savannah, and Covington have also seen recent increases in these areas. These increases in violent crime led the Department to select Memphis and Jackson as two of the 12 cities in the National Public Safety Partnership (PSP). The Western District is the only district to have two cities selected for this program.
These two new AUSA positions will complement the Department’s ongoing enforcement efforts in West Tennessee. They will also be instrumental as the U.S. Attorney’s Office recommits to initiatives that have worked in the past to reduce violent crime, such as the Project Safe Neighborhoods program.