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21 December 2017
Harrisburg Woman Charged with Distribution of HeroinRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Marjorie Maldonado, age 30, of Harrisburg, Pennsylvania, was indicted on December 20, 2017, by a federal grand jury with unlawful distribution of heroin.
According to United States Attorney David J. Freed, the indictment alleges that Maldonado distributed heroin on December 1, 2017, in Harrisburg.
The charge stems from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney James T. Clancy is prosecuting the case.
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.
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 for this drug trafficking charge is 20 years in prison, 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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Harrisburg Man Sentenced to Prison for Tax FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Felix Ramon Diaz, age 58, of Harrisburg, Pennsylvania, was sentenced on December 19, 2017, to one year and one day imprisonment by United States District Court Judge William W. Caldwell for aiding and assisting the preparation of false tax documents.
According to United States Attorney David J. Freed, Diaz was a tax preparer who owned Felix Tax Service. From 2010 through 2013, Diaz filed 45 tax returns with false and fraudulent income, deductions, and addresses in an effort to maximize income tax refunds. Diaz’s conduct resulted in approximately $100,000 in losses taxes to the government.
Judge Caldwell noted the health issues facing Diaz and his lack of prior criminal history as mitigating factors. However, when imposing sentence, the judge noted the crimes were serious and Diaz committed the offense for years.
In March 2016, a grand jury indicted Diaz for the tax fraud scheme. On January 25, 2017, Diaz entered a guilty plea to the offense before Judge Caldwell.
The case was investigated by the Internal Revenue Service Criminal Investigation Division and Assistant United States Attorney Michael A. Consiglio prosecuted the case.
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Harrisburg Man Charged with Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Eddie Junior Pena, age 23, of Harrisburg, Pennsylvania, was indicted on December 20, 2017, by a federal grand jury for unlawful possession of a firearm.
According to United States Attorney David J. Freed, the indictment alleges that between March 2017 and December 2017, Pena possessed a 9mm Glock firearm as a convicted felon in furtherance of drug trafficking.
The charges stem from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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 for possession of a firearm in furtherance of drug trafficking is life in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for possessing a firearm after being convicted of a felony offense is 10 years in prison, 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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Glastonbury Man Charged with Child Exploitation OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford returned an indictment yesterday charging JAMES RIPBERGER, 62, of Glastonbury, with one count of receipt of child pornography.
As alleged in court documents and statements made in court, on October 12, 2017, law enforcement officers conducted a search of RIPBERGER’s Glastonbury residence and seized computers and electronic storage devices. Preliminary analysis of the seized items revealed more than 125 images and videos of child pornography.
If convicted of receipt of child pornography, RIPBERGER faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
RIPBERGER has been in federal custody since December 15, 2017, when he was arrested on a federal criminal complaint.
U.S. Attorney Durham stressed that an indictment 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 ongoing investigation is being conducted by Homeland Security Investigations, the Glastonbury Police Department and the Connecticut Center for Digital Investigations. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Gentilly Resident Sentenced to over 10 Years Imprisonment for Money Laundering and other Financial CrimesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CORNELL PENDLETON, age 51, of the Gentilly neighborhood in New Orleans, was sentenced today for his role in laundering money on behalf of heroin dealers in the New Orleans area.
U.S. District Judge Jane Triche Milazzo sentenced PENDELTON to a term of incarceration of 121 months, followed by two years of supervised release. Judge Milazzo also ordered PENDLETON to pay a fine of $100,000.
Following a weeklong trial, a jury found PENDLETON guilty of conspiracy to commit money laundering; numerous substantive money laundering offenses involving the purchase of real property and cars using illegal drug money; structuring his cash deposits; and providing false statements on loan applications. The jury also found that PENDLETON must forfeit over $700,000 in cash and assets that were involved in his criminal activities.
According to the evidence presented trial, the case against PENDLETON stemmed from a Drug Enforcement Administration investigation of a heroin-trafficking organization that operated in New Orleans East. The original investigation, nicknamed “Wild Wild East,” began in 2013 and has since resulted in the conviction of twelve New Orleans-based heroin dealers.
Through that investigation, the government began developing evidence that PENDLETON was helping drug dealers to acquire high-end assets in an effort to conceal the proceeds of their drug operation. These high-end assets included multiple cars, such as Mercedes, Porsche, Corvette, Bentley, and BMW; residential and investment real estate; jewelry, including Rolex watches; and other expensive items. PENDLETON’s scheme involved purchasing assets in his own name, and then allowing the drug dealers to use the assets while making sizable, off-the-books payments to PENDLETON. Once an asset was fully paid off, PENDLETON would often transfer title of the asset back to the drug dealer. PENDLETON was paid entirely in cash for his assistance in acquiring these assets. The evidence showed that, over a two and a half year period between 2012 and 2014, PENDLETON deposited over $1.5 million in cash into four bank accounts, while knowing that the cash included illegal drug proceeds.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Kenner Police Department, and Border Patrol in investigating this matter. Assistant United States Attorneys Brandon S. Long and Theodore Carter were in charge of the prosecution.
Four Aliens Indicted on Illegal Reentry Charges, False Representation of a Social Security Account Number, False Claim of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity TheftRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina announces that a federal grand jury in Raleigh has returned indictments charging JELBER ALEXANDER LOPEZ-SANCHEZ, age 25, of Guatemala, JUAN SEGURA-GOMEZ, age 48, of Mexico, and KEVIN TERRASA, age 32, of Mexico, with Illegal Reentry of a Deported Alien. Additionally, a federal grand jury in Raleigh has returned an indictment charging JOSE DARWIN MARTINEZ-LAINEZ, age 32, of Honduras, with False Representation of a Social Security Account Number, False Representation of United States Citizenship with Intent to Engage in Unlawful Employment in the United States, and Aggravated Identity Theft.
If convicted of Illegal Reentry of a Deported Alien, LOPEZ-SANCHEZ, found in Duplin County, SEGURA-GOMEZ, previously deported twice and found in Beaufort County, and TERRASA, previously deported twice and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number, False Representation of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity Theft, MARTINEZ-LAINEZ, found in Sampson County, would face maximum penalties of twenty-four years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the cases.
Former Owner of Sleep Study Clinics Pleads Guilty to Fraud, Tax ChargesRead the Press Release
ALEXANDRIA, Va. – The former owner of 1st Class Sleep Diagnostic Center and 1st Class Medical, pleaded guilty today to conspiracy to commit health care and wire fraud, and conspiracy to defraud the United States.
According to court documents, from at least 2005 through 2014, Dannie Ahn, 43, of Centreville, helped control, manage, and oversee various corporations, to include 1st Class Sleep Diagnostic Center and 1st Class Medical, which provided sleep studies and sleep-related treatment at clinics located throughout Northern Virginia and Maryland.
According to the statement of facts filed with the plea agreement, Ahn, along with a conspirator, directed a scheme to defraud health care benefit programs by causing the submission of false, fraudulent, and misleading claims. Ahn fraudulently incentivized individuals to receive sleep studies, which he had no reason to believe were medically necessary and were not authorized by any medical practitioner, in order to increase revenue. Ahn also caused kickbacks to be paid to physicians in exchange for referring patients to 1st Class, and disguised the kickbacks using various means.
According to the statement of facts, Ahn, along with a conspirator, caused 1st Class to pay personal expenses which were falsely and fraudulently characterized as business expenses on the financial books and records of 1st Class. Later, Ahn caused the false information, including the false business records of 1st Class, to be provided to various individuals for preparation of corporate income tax returns and individual income tax returns. According to court documents, the loss attributable to Ahn’s conduct is between $4.5 and $25 million, and the loss to government health care programs is more than $1 million.
Ahn pleaded guilty to conspiracy to commit health care and wire fraud, and conspiracy to defraud the United States. He is scheduled for sentencing on Sept. 14, 2018.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Norbert E. Vint, Acting Inspector General for the Office of Personnel Management (OPM), made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Katherine Wong and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-222.
Former Executive of Defunct Tampa Technology Company Sentenced to Five Years in Prison for Investment FraudRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Terrance F. Taylor (52, Bradenton) to five years in federal prison for conspiracy to commit wire fraud. The Court also ordered him to pay $3,341,500 in restitution to the victims of the fraud.
Taylor pleaded guilty on September 9, 2015.
According to court documents, in 2010, Taylor and Timothy Roberts founded Savtira Corporation Inc., a technology company headquartered in Ybor City. Savtira purported to offer a centralized, cloud-based shopping cart platform for online and traditional retailers to sell products, regardless of the device used by the online purchaser. Roberts and Taylor marketed Savtira stock to investors by making false claims about the company, including that Savtira was profitable and that the company had entered into executed agreements with nationally recognized technology firms. They also falsely claimed that Savtira owned patents and/or that the company was valued between $450 and $540 million. Roberts and Taylor then misused and misappropriated some of the investors’ funds for personal expenses and cash withdrawals without the investors’ consent or knowledge. They also failed to disclose that Roberts had entered into a settlement agreement with the U.S. Securities and Exchange Commission in 2008 that required Roberts to pay a fine and banned him from selling unregistered securities.
Roberts previously pleaded guilty to wire fraud and faces up to 20 years in federal prison. His sentencing hearing is scheduled for March 16, 2018.
This case was investigated by the Florida Office of Financial Regulation’s Bureau of Financial Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Rachel Jones.
Former Embraer Sales Executive Pleads Guilty to Foreign Bribery and Related ChargesRead the Press Release
A former sales executive of Embraer S.A. (Embraer), a Brazilian-based manufacturer of aircraft, pleaded guilty today in connection with a scheme to pay bribes to a high-level foreign government official in exchange for assistance in securing Embraer’s sale of aircraft to Saudi Arabia’s national oil company.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Joon H. Kim of the Southern District of New York, Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement.
Colin Steven, 61, a U.K. citizen residing in the United Arab Emirates, was charged by information filed today in the Southern District of New York with one count of violating the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to violate the FCPA, one count of wire fraud, one count of conspiracy to commit wire fraud, one count of money laundering, one count of conspiracy to launder money and one count of making a false statement. Steven pleaded guilty to all of those counts before U.S. District Judge Alison J. Nathan of the Southern District of New York. A sentencing date has not been scheduled yet. The Court set a control date of June 21, 2018.
As part of his plea, Steven, a former vice president of sales & marketing in Embraer’s Executive Jets Division, admitted that he engaged in a scheme to have Embraer pay bribes to a foreign official in exchange for assistance in getting an aircraft sales contract with favorable terms awarded to Embraer; retained a kickback as part of the scheme; and lied to law enforcement officials about his kickback.
Steven consented to the filing of the information, which alleged that Embraer was in negotiations with Saudi Arabia’s national oil company over a potential aircraft sale when Steven and the foreign official devised an arrangement whereby the foreign official would guarantee that Embraer would win a contract and that the contract would involve new rather than used aircraft in exchange for approximately $1.5 million in bribe payments. In early 2010, Saudi Arabia’s national oil company awarded Embraer a contract for three new aircraft, valued at approximately $93 million. The information further alleged that he arranged to disguise the bribes as commissions to a South African company that was owned in part by Steven’s personal friends. The South African company transferred the bulk of the bribe proceeds to the foreign official’s intermediary but, at Steven’s direction, paid a portion of the bribe proceeds to Steven.
In pleading guilty, Steven admitted that he executed, and conspired with others to execute, the bribery and kickback schemes; laundered and conspired to launder the proceeds of those schemes through the South African company and lied to U.S. law enforcement about the kickback.
The guilty plea entered today follows the execution in October 2016 of a deferred prosecution agreement between the Department and Embraer, under which Embraer agreed to pay a $107 million penalty to the Department as part of a $205 million global resolution to investigations by the Department, the Securities and Exchange Commission and Brazilian authorities related to corrupt conduct in several countries, including Saudi Arabia. The agreement acknowledged Embraer’s cooperation with the investigations. With the cooperation of U.S. authorities, Brazilian authorities have charged 11 individuals for their alleged involvement in Embraer’s misconduct in the Dominican Republic. Saudi Arabian authorities have charged two individuals for their alleged involvement in Embraer’s misconduct in Saudi Arabia.
The FBI’s International Corruption Squads, based in Miami, Florida, and Los Angeles, California, investigated the case. Trial Attorneys John-Alex Romano and Nikhila Raj and Assistant Chief David Johnson of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Richard Cooper of the Southern District of New York, are prosecuting the case. The Fraud Section appreciates the cooperation and assistance provided by the SEC in this matter.
The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Department also appreciates the cooperation and assistance provided by authorities in Brazil, the Dominican Republic, South Africa and Switzerland in this matter.
In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.
The 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.
Former Embraer Sales Executive Pleads Guilty to Foreign Bribery and Fraud ChargesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and John P. Cronan, the Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced that COLIN STEVEN pled guilty to Foreign Corrupt Practices Act, wire fraud, money laundering, and false statement charges arising from his role in paying bribes to a foreign official in exchange for assistance in obtaining business for STEVEN’s employer, Embraer S.A. (“Embraer”). STEVEN, a former executive in Embraer’s Executive Jets Division, arranged for Embraer to pay over $1.5 million in bribes to an official at the state-owned and state-controlled national oil company of Saudi Arabia (the “Saudi Arabia Company”), and ultimately received a kickback from a portion of the bribe proceeds. STEVEN pled guilty today before U.S. District Judge Alison J. Nathan.
According to the allegations contained in the Information to which STEVEN pled guilty, and statements made during the plea and other court proceedings:
Embraer, an aircraft manufacturer based in Brazil, has operations and subsidiaries in various locations around the world, including the United States and the Middle East. Embraer manufactures commercial, executive, and defense aircraft for governmental and private customers throughout the world. STEVEN, a British national, was an executive responsible for overseeing the generation of sales for a particular Embraer division in regions that included the Middle East.
In approximately 2006, STEVEN learned that the Saudi Arabia Company was interested in purchasing aircraft, and for a period of three years after that STEVEN and a salesperson who reported to him had occasional contact with employees of the Saudi Arabia Company to discuss the potential sale of three Embraer jets. In late 2009, STEVEN met with an official of the Saudi Arabia Company (the “Saudi Arabia Official”) in London, England. The Saudi Arabia Official offered to help Embraer win the aircraft contract from the Saudi Arabia Company, and to ensure that the Saudi Arabia Company would buy new – not used – jets from Embraer, in exchange for a payment. STEVEN agreed to cause Embraer to pay the Saudi Arabia Official $550,000 per aircraft, for a total bribe amount of $1.65 million.
In late 2009 and early 2010, STEVEN developed a plan to use a company based in South Africa (the “South Africa Company”) as a purported agent on the transaction, which would result in Embraer paying the South Africa Company $1.65 million in “finders fees,” when in fact the South African Company would perform no work on the transaction and would be used to facilitate and to disguise the payment to the Saudi Arabia Official.
In early 2010, on the Saudi Arabia Official’s recommendation, a committee at the Saudi Arabia Company approved the purchase of three new aircraft from Embraer for $93 million. A subsidiary of Embraer also entered into an agreement with the South Africa Company, pursuant to which the South Africa Company would purportedly promote the sale of Embraer aircraft to a subsidiary of the Saudi Arabia Company. In reality, the South Africa Company provided no services to Embraer other than serving as a conduit to funnel payments to the Saudi Arabia Official. An Embraer subsidiary subsequently wired $1.65 million to the South Africa Company, in December 2010 and February 2011. Between February 2011 and April 2011, the South Africa Company wired approximately $1.4 million to bank accounts in Switzerland and Bahrain held by an individual who was acting as an intermediary for the Saudi Arabia Official.
STEVEN also developed a plan to take a portion of the bribe proceeds as a kickback, and ultimately received approximately $130,000 in wire transfers from the South Africa Company in October and December 2011.
STEVEN was later interviewed by an agent of the Federal Bureau of Investigation in December 2014, and falsely stated that a wire transfer he received from the South Africa Company in 2011 was for the purpose of buying real estate in connection with a potential business venture between STEVEN and an executive of the South Africa Company.
The guilty plea entered today follows the execution in October 2016 of a deferred prosecution agreement between the Department of Justice and Embraer, under which Embraer agreed to pay a $107 million penalty as part of a $205 million global resolution to investigations by the Department, the Securities & Exchange Commission, and Brazilian authorities related to corrupt conduct in several countries, including Saudi Arabia. The agreement acknowledged Embraer’s cooperation with the investigations.
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STEVEN, 61, resides in Dubai, United Arab Emirates. A chart listing the maximum sentences relating to the charges in the Information is below. As part of his plea agreement, STEVEN is also required to pay forfeiture and restitution. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. STEVEN is scheduled to be sentenced by Judge Nathan on June 21, 2018.
This case is being prosecuted by the Justice Department’s Criminal Division Fraud Section and the Office’s Complex Frauds and Cybercrime Unit. Trial Attorneys John-Alex Romano and Nikhila Raj as well as Assistant United States Attorney Richard Cooper and Assistant Chief David Johnson of the Fraud Section are prosecuting the case.
The FBI’s International Corruption Squads, based in Miami, Florida, and Los Angeles, California, investigated the case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Office also appreciates the cooperation and assistance provided by authorities in Brazil, the Dominican Republic, South Africa and Switzerland in this matter.
Count
Charge
Maximum sentence
One
Conspiracy to violate the Foreign Corrupt Practices Act (“FCPA”), 18 U.S.C. § 371
Five years in prison
Two
Violation of the FCPA, 15 U.S.C. §§ 78dd-1 and 78ff(c)(2)(A), and 18 U.S.C. § 2
Five years in prison
Three
Conspiracy to commit wire fraud, 18 U.S.C. § 1349
20 years in prison
Four
Wire fraud, 18 U.S.C. §§ 1343 and 2
20 years in prison
Five
Conspiracy to commit money laundering, 18 U.S.C. § 1956(h)
20 years in prison
Six
Money laundering, 18 U.S.C. §§ 1956(a)(2)(A) and 2
20 years in prison
Seven
False statements, 18 U.S.C. § 1001
Five years in prison
Former Delhi City Clerk Sentenced to over a Year in Federal Prison for Stealing over $100,000 from the CityRead the Press Release
A woman who used her position as the city clerk for the City of Delhi to steal more than $100,000 in public funds was sentenced yesterday to more than a year in federal prison.
Angela Billings from Anamosa, Iowa, received the prison term after a guilty plea to theft from a program receiving public funds.
In a plea agreement, Billings admitted that she held a position of public trust as the city clerk and that her position of trust contributed significantly to the commission and concealment of her crime. She agreed that she stole more than $100,000 from the city by, among other means, using the city’s credit card for personal expenses and adjusting her own utility bills. Billings also agreed she owes more than $130,000 in restitution, which includes costs the city incurred to conduct the audit that discovered the breadth of her crime.
Billings was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Billings was sentenced to 15 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to pay $133,915.31 in restitution to the city. She must also serve a term of supervised release after the prison term. There is no parole in the federal system.
Public employees hold a special place in our society and are given a great deal of trust,” stated United States Attorney Peter Deegan. “We are committed to holding those employees responsible when they betray that trust by stealing from the communities they are supposed to be serving.”
Billings was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
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-2032.
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Former Bothell Resident Pleads Guilty to Production, Distribution and Possession of Images of Child MolestationRead the Press Release
A 53-year old Bothell, Washington, man pleaded guilty today in U.S. District Court in Seattle to production, distribution and possession of child pornography, announced U.S. Attorney Annette L. Hayes. DONALD MCCOY JR was arrested in October 2016, and has been in federal custody since that time. MCCOY faces a mandatory minimum 15 years in prison and up to 30 years in prison when sentenced by U.S. District Judge James L. Robart on March 12, 2018.
According to records filed in the case, MCCOY came to the attention of federal law enforcement in 2016, when an undercover agent using peer-to-peer file sharing software observed images of child rape being shared from a computer tied to an internet protocol address that traced back to MCCOY’s residence. After obtaining the address and a court authorized search warrant, law enforcement executed the search at MCCOY’s home. Forensic examination of various electronic devices revealed that MCCOY had made images of the molestation of four young children between the ages of 6 and 13 years-old. MCCOY molested several the young children while they were asleep.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) with assistant with the Seattle Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Florida Resident Guilty of Theft of Federal Student Aid Funds and Aggravated Identity Theft Sentenced to 44 Months of ImprisonmentRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ROMAN WILLIAMS, age 36, of Pensacola, Florida, was sentenced today after previously pleading guilty to theft of government funds and aggravated identity theft.
U.S. District Judge Eldon E. Fallon sentenced WILLIAMS to 44 months of imprisonment, to be followed by two years of supervised release after his release from prison. WILLIAMS was also ordered to pay restitution to his victims.
According to court documents, WILLIAMS falsified federal student loan applications using stolen identities and then used the stolen student aid monies for his own personal use.
Acting U.S. Attorney Evans praised the work of the Department of Education, Office of the Inspector General and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Richard R. Pickens, II was in charge of the prosecution.
Firearm and Drug Trafficking Lands Washington Man in PrisonRead the Press Release
HELENA — On Thursday, December 21, 2017, United States District Court Judge Sam Haddon sentenced Christian Jesus Ruiz, 23, of Sunnyside, Washington, to 60 months in prison, 5 years’ supervised release, and a $100 surcharge for possession of a firearm in furtherance of a drug trafficking offense. Ruiz was part of a scheme by multiple conspirators to distribute very large amounts of methamphetamine through Deer Lodge, Montana each month between January 2016 and January 2017. Members of the conspiracy, including Ruiz, possessed firearms in connection with the drug trafficking crimes they committed in Montana.
Other members of the conspiracy included Jeff Allen Trask, Chase Ryan Storlie, and Hector Ricardo Gonzalez. The court previously sentenced Trask and Gonzalez. Trask was sentenced to 54 months in prison and five years of supervised release for his role in the conspiracy. Gonzalez was sentenced to 260 months in prison and five years of supervised release. Storlie faces sentencing on January 3, 2018.
Gonzalez and Ruiz’s involvement in the conspiracy came to a sudden end on January 24, 2017, when the authorities arrested them in Mineral County, Montana, in possession of 20 pounds of methamphetamine. The methamphetamine was destined for Deer Lodge.
The charges against Ruiz and his codefendants are the result of an investigation by the Montana Division of Criminal Investigations, the Missouri River Drug Task Force, the Helena Police Department, the Lewis and Clark County Sheriff’s Office, the Federal Bureau of Investigation, the Mineral County Sheriff’s Office, the Powell County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Montana Highway Patrol, and the Drug Enforcement Administration. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Tom Bartleson prosecuted the case.
United States Attorney Kurt Alme explained, “I want to thank our law enforcement partners for helping us bring these defendants to justice. The volatile combination of methamphetamine and guns is closely associated with a rise in violent crime in communities across Montana. The Department of Justice is committed to reducing violent crime in those communities and prosecuting Ruiz and his co-defendants is another positive step toward that goal.” Alme also praised the collaborative work of the law enforcement agencies and prosecutors in the case.
Felony Warrant Enforcement Operation Nets 22 Defendants Wanted for Gun, Drug and Other ChargesRead the Press Release
FAYETTEVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that “Operation Wintry Mix” resulted in the arrest of sixteen (16) defendants for outstanding federal charges in a coordinated warrant enforcement operation. In addition, three subjects related to this operation were found to be in the custody of the North Carolina Department of Corrections and a local jail in Virginia. Federal detainers have been filed against those subjects. Also, three subjects were arrested on state charges.
The following individuals were charged by way of Criminal Indictment. The individual charges for each defendant is contained in the parenthesis following the personal information.
- Larry Donnell Adams,41, of Fayetteville, NC (Felon in Possession of a Firearm)
- Robert Edmond, Jr., 43 of Fayetteville, NC (Possession with Intent to Distribute Cocaine & Marijuana, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, Felon in Possession of a Firearm)
- Dervin Francis, 24, of Fayetteville, NC (Felon in Possession of a Firearm)
- Malcolm Dion Fuller, 36, of Fayetteville, NC (Felon in Possession of a Firearm)
- Adam Golden, 23, of Fayetteville, NC (2-Counts of Felon in Possession of a Firearm, Possession of a Stolen Firearm)
- Jesus Eliezer Gonzalez-Acevedo, 27,of Fayetteville, NC (Arson)
- Jason Stewart Hollingsworth, 41, of Fayetteville, NC (Possession with the Intent to Distribute Oxycodone & Amphetamine, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, & Felon in Possession of a Firearm)
- Joseph Luther Lewis, 28, of Spring Lake, NC (Felon in Possession of a Firearm, & Possession of a Stolen Firearm)
- Antonio Rashawn McArthur, 23, of Fayetteville, NC (Felon in Possession of a Firearm)
- Johnny Dewayne McArthur, 33, of Fayetteville, NC (Felon in Possession of a Firearm, Possession with the Intent to Distribute Marijuana, & Possession of Firearm in Furtherance of a Drug Trafficking Crime)
- Larry Lamar Nance, 32, of Raleigh, NC (Felon in Possession of a Firearm)
- Christopher Ray Parrish, 33, of Fayetteville, NC (Possession with the Intent to Distribute Marijuana, Possession of a Firearm in Furtherance of a Drug Trafficking Crime & Felon in Possession of a Firearm)
- Rochi Dowell Purdie, 42, of Rex, NC (Felon in Possession of a Firearm, & Possession of Marijuana and Pyrrolidinopentiophenone (Flakka))
- Brandon Alexander Siermons, 25, of Fayetteville, NC (Felon in Possession of a Firearm)
- Albert Vines, 28, of Dunn, NC (2-Counts of Hobbs Act Robbery, 2-Counts of Felon in Possession of a Firearm, Possession with the Intent to Distribute Cocaine, & Possession of a Firearm in Furtherance of a Drug Trafficking Activity)
- Harold Edward Williams, Jr., 45, of Fayetteville, NC (3-Counts of Distribution of Heroin, Possession of a Firearm in Furtherance of Drug Trafficking Crime, & Felon in Possession of a Firearm)
The enforcement operation was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, (ATF), the United States Marshal Service, Fayetteville Police Department, Cumberland County Sheriff’s Office, Cumberland County District Attorney’s Office, the North Carolina Department of Public Safety Adult Probation and the United States Probation Office.
The charges and allegations contained in the Indictments are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
Feds Focus on Mail Theft Based Identity Theft Crimes during Busy Holiday Shipping SeasonRead the Press Release
Five people have been charged federally in five separate mail theft cases brought in joint effort with the U.S. Postal Inspection Service to combat identity theft, announced U.S. Attorney Annette L. Hayes. Mail and package theft is a heightened problem in the busy holiday shipping season. These cases have taken some of the worst offenders off the street over the last few months. Some of those charged have already entered guilty pleas, and face mandatory minimum sentences for aggravated identity theft.
“Over the last several months we have worked with investigators from the Postal Inspection Service to federally prosecute mail thieves who repeatedly steal from homes, apartment buildings and other locations around western Washington,” said U.S. Attorney Annette L. Hayes. “These cases should serve as a warning that there are significant consequences for those who steal mail and victimize so many people.”
“The arrest and prosecution of prolific mail thieves is a top priority of the Postal Inspection Service,” said Inspector in Charge Tony Galetti.
Some of the cases pursued in this initiative include:
CHARLLETTE MILLER, 35, of Olympia, Washington pleaded guilty to access device fraud and will be sentenced in March 2018. MILLER used stolen mail, including drivers’ licenses to open bank and credit accounts in the names of her victims and then ran up thousands of dollars in fraudulent charges.
JESSE FRANKLIN DENHAM, 27, is scheduled for trial in January 2018 on an eight-count indictment charging bank fraud, access device fraud and aggravated identity theft. Using stolen mail, DENHAM allegedly opened bank and credit accounts, and forged balance transfer checks associated with the accounts. When arrested, DENHAM had mail from more than 50 victims in his car. DENHAM remains in custody.
SHAWLEE GEIGER, 41, of Seattle, is scheduled for trial in June 2018 on an eight-count indictment charging her with multiple counts of bank fraud and aggravated identity theft. GEIGER allegedly used stolen checks to inflate the balances of bank accounts she controlled and then quickly withdrew cash before the bank was notified that the checks were invalid.
DENNIE DENG, 27, of Auburn, Washington is scheduled for trial in March 2018 on a four-count indictment charging him with bank fraud and aggravated identity theft. DENG allegedly used stolen checks to inflate the balance of his bank account and then withdrew cash. In some instances he altered the stolen checks to further increase the amount of money fraudulently deposited in his account.
TRAVIS SICKLOVAN, 34, pleaded guilty in October to bank fraud, aggravated identity theft and possession of stolen mail. SICKLOVAN was arrested in November 2016, in a Snohomish County hotel with stolen mail from more than 60 victims. SICKLOVAN used the stolen mail to make and cash fraudulent checks and to obtain fraudulent credit cards.
Defendants convicted of aggravated identity theft face a mandatory minimum two years in prison in addition to any other sentence imposed based on other convictions.
The charges contained in a criminal complaint or indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The Seattle Division of the U.S. Postal Inspection Service employs a multi-faceted approach to address mail theft in western Washington. Using prevention and investigative efforts to combat mail theft, postal inspectors work with local, state and federal agencies across the area. Targeted enforcement data is used to identify, arrest and prosecute the mail thieves who are having the biggest impact on the community. The inspection service also seeks out ways to improve the security of postal facilities and mailboxes leading the effort to secure US Mail to prevent access to would-be thieves. Lastly, the Postal Inspection Service educates the public on ways to mitigate their risk of mail theft and to report it in a timely manner when it does happen.
These cases are being prosecuted by Assistant United States Attorneys Andre Penalver, Stephen Hobbs and Seungjae Lee.
Federal Jury Convicts Eloy “Chino” Alonzo of Methamphetamine Distribution and Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. - Following a three-day trial before the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, a jury found Eloy “Chino” Alonzo, 31, of Sweetwater, Tennessee, guilty of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of his drug trafficking. Sentencing is set for 2:00 pm, April 26, 2018, in U.S. District Court.
Evidence presented at trial showed that Eloy Alonzo, an illegal alien and citizen of Mexico, was a large-scale drug distributor that brought and sold pounds of methamphetamine into east Tennessee. A large quantity of methamphetamine and multiple assault rifles were found at Alonzo’s residence during the execution of a search warrant in Monroe County, Tennessee, in September 2016.
Law enforcement agencies participating in this joint investigation included the Ninth Judicial Drug Task Force, Drug Enforcement Administration, Tennessee Bureau of Investigation, Monroe County Sheriff’s Department, Sweetwater City Police Department, U.S. Homeland Security Investigations, Blount County Sherriff’s Department and Fifth Judicial Drug Task Force. Assistant U.S. Attorneys Cynthia Davidson and LaToyia Carpenter represented the United States.
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Federal Judge Sentences Prior Felon to 10 Years in Prison for Possessing 31 GunsRead the Press Release
BIRMINGHAM – A federal judge on Wednesday sentenced a Birmingham man to 10 years in prison on separate counts of being a convicted felon in possession of firearms, including a 2016 incident in which police recovered 31 firearms after he barricaded himself and three other people inside a house to avoid arrest.
U.S. Attorney Jay E. Town and the Bureau of Alcohol, Tobacco, Firearms, and Explosives announced the sentence.
U.S. District Court Judge Sharon Lovelace Blackburn sentenced WILLIE LEE COOKS, 46, for being a convicted felon in possession of a firearm on April 4, 2016, and multiple firearms on August 30, 2016.
“Cooks was a threat to the community, to his victims, and to law enforcement,” Town said. “Violent felons who possess firearms will not get diversion. They will not get probation. They will get a cell in the Bureau of Prisons.”
Birmingham Police stopped Cooks on April 4, 2016, for driving a vehicle without a license plate and arrested him on an outstanding felony warrant after seeing a Glock 9mm pistol on the floorboard, according to Cook’s plea agreement. The pistol was loaded with 31 rounds of ammunition in an extended magazine. Cooks had several prior felony convictions at that time, according to his plea agreement.
On Aug. 30, 2016, the U.S. Marshals Fugitive Task Force and the Alabama Law Enforcement Agency task force approached Cooks’ Birmingham residence to arrest him on a warrant, and Cooks barricaded himself and others in the house, according to his plea agreement. A Birmingham Police SWAT team was called to the scene and tear gas was deployed to get the occupants out of the house after negotiations for Cooks’ surrender failed, according to the plea agreement.
Police subsequently found the 31 firearms hidden in a crawl space under the house.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case, which Assistant U.S. Attorney L. James Weil Jr. prosecuted.
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East Bay Man Charged with United States Postal Service Mail BombingRead the Press Release
SAN FRANCISCO – A complaint has been filed in federal court charging Ross Gordon Laverty with mailing an explosive device with the intent to injure or kill, announced United States Attorney Brian J. Stretch, U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder, and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
According to the complaint unsealed this morning, Laverty, 56, of Oakland, mailed at least one explosive device. The charge is based upon a bombing incident that occurred in October of this year.
The complaint alleges that on October 11, 2017, a package containing an improvised explosive device was delivered to an address in East Palo Alto, Calif. The addressee became suspicious of the package and initially decided not to open it. Nevertheless, on October 19, the victim carried the package outside of his home and opened it in his back yard, causing it to detonate and injure the victim.
The criminal complaint charges Laverty with one count of mailing an explosive devise with the intent to injure or kill, in violation of 18 U.S.C. § 1716(j)(2). Laverty made his initial appearance and was arraigned on the charge this morning in San Francisco before U.S. Magistrate Judge Joseph C. Spero. Magistrate Judge Spero scheduled a detention hearing for December 28, 2017.
A complaint merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the charge, Laverty faces a maximum sentence of 20 years’ imprisonment and a maximum fine of $250,000. A term of supervised release and restitution may be ordered upon conviction. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the U.S. Postal Inspection Service with assistance from the ATF and the FBI.
Dominion Diagnostics pays $815,000 to the United States and State of Vermont to resolve allegations of False Claims Act violationsRead the Press Release
The United States Attorney’s Office for the District of Vermont announced today that Dominion Diagnostics, Inc. has paid $815,000 in total to the United States and the State of Vermont to resolve civil claims that Dominion Diagnostics violated the federal False Claims Act, 31 U.S.C. § 3729, and the Vermont False Claims Act, 32 V.S.A. § 630, by knowingly presenting, or causing to be presented, false claims for payment to Medicare and Medicaid. The money will be divided between the federal Medicare, federal Medicaid, and Vermont Medicaid programs to which Dominion Diagnostics submitted the alleged false claims.
Dominion Diagnostics provides clinical drug monitoring solutions, clinical information, and support services to a variety of medical specialties. This includes urine drug testing and routine clinical blood testing to support screening, diagnosis and monitoring. Dominion Diagnostics is based in North Kingston, Rhode Island and has an office and does business in Vermont.
The United States and the State of Vermont contend that from January 1, 2010 through December 23, 2015, Dominion Diagnostics knowingly presented or caused to be presented claims for payment from Medicare and the Vermont Medicaid program for urine specimen validity testing when referring physicians did not specifically order specimen validity testing. The United States and the State of Vermont contend Dominion Diagnostics’ standing orders automatically included these validity tests without consideration as to whether the referring physicians had actually ordered the validity tests. In addition, the State of Vermont contends Dominion Diagnostics adopted and put into effect a new Usual & Customary Rate for certain claims and impermissibly gave that rate retroactive application on claims submitted to the Vermont Medicaid program.
“As exemplified by this settlement, health care companies doing business in Vermont who take shortcuts or ignore programmatic requirements, such as individualized medical necessity determinations, will face serious consequences,” said United States Attorney Christina E. Nolan. “We will pursue and hold accountable those who knowingly or recklessly bill the government for health care services without proper authorization and justification.”
The settlement announced today resolves the foregoing allegations without the need for litigation. Pursuant to the terms of the settlement agreement, the agreement and payment are neither an admission of liability by Dominion Diagnostics, nor a concession by the United States or State of Vermont that their claims are not well founded.
This matter was investigated by the United States Attorney’s Office for the District of Vermont, with assistance from the Office of the Inspector General of the Department of Health and Human Services, and by the Medicaid Fraud and Residential Abuse Unit of the Vermont Attorney General’s Office. Assistant United States Attorney Nikolas P. Kerest handled the matter on behalf of the United States. Vermont Assistant Attorney General Steven J. Monde of the Medicaid Fraud and Residential Abuse Unit represented the State of Vermont. R. Jeffrey Behm of the law firm Sheehey, Furlong & Behm, P.C., represented Dominion Diagnostics.
Disney Cruise Ship Employee Pleads Guilty to Wire Fraud, Admitting He Embezzled More than $275,000Read the Press Release
Assistant U.S. Attorney Joseph J.M. Orabona (619)546-7951
NEWS RELEASE SUMMARY – December 21, 2017
SAN DIEGO – Renan Dias Da Rocha Gomes, a former employee aboard the Disney Wonder cruise ship, entered a guilty plea today to one count of wire fraud in connection with his scheme to embezzle more than $275,000 from The Walt Disney Company.
Gomes, who was arrested by federal agents on October 27, 2017, when the Disney Wonder made port in San Diego, admitted that from at least October 2015 through October 27, 2017, he was employed as a merchandise host and assigned to work in the merchandise stores aboard the Disney Wonder. At the hearing today, Gomes admitted he executed his scheme by fraudulently obtaining money through his access to the VeriFone payment system in order to embezzle funds from Disney for his own personal use and benefit.
According to the plea agreement, Gomes admitted he made approximately $275,000 in unauthorized charges to Disney’s bank account, and loaded the value of the funds onto Disney gift cards while working aboard the Disney Wonder on the high seas. Gomes also admitted that from April 23, 2017 through May 7, 2017, he spent approximately $37,700 of the embezzled funds for his own personal benefit by taking his family on a Disney World vacation. While on this vacation, Gomes stated the he used the gift cards with the embezzled funds to pay approximately $8,200 on lodging, approximately $29,500 on food, beverage, merchandise and entertainment expenses. As part of his plea agreement, Gomes will be required to repay The Walt Disney Company the total amount of funds he stole which the company was unable to recover.
“When someone misappropriates company assets, the loss not only affects the company but also the consumer. Today’s guilty plea sends a strong message that those who commit such corporate fraud, even while operating on the high seas, will be held accountable in this district,” said United States Attorney Adam L. Braverman.
“This case illustrates the dangers that businesses face from trusted insiders who seek to defraud them. While external fraud threats are usually the focus, the greatest fraud threats to businesses are typically from within,” stated Special Agent in Charge Eric S. Birnbaum. “The FBI remains committed to working with our law enforcement partners to detect corporate crime in all its forms and bring those responsible to justice.”
“Today’s guilty plea is an example of the significant results that can be achieved when law enforcement agencies form a great partnership and work diligently to bring a case to prosecution,” said David Shaw, Special Agent in Charge for Homeland Security Investigations (HSI) in San Diego. “HSI will continue to investigate these individuals who attempt to enrich themselves by fraudulent means.”
Gomes’ next court appearance is on March 9, 2018 at 9 a.m. before U.S. District Judge Cathy A. Bencivengo. Gomes, who is a Brazilian national, remains in federal custody.
DEFENDANT Criminal Case No. 17CR3897-CAB
Renan Dias Da Rocha Gomes Age: 32 Citizenship: Brazil
SUMMARY OF CHARGES:
Count 1 – Wire Fraud (18 U.S.C. § 1343)
Maximum Penalties: mandatory minimum of 20 years in prison; maximum fine of $250,000; maximum term of supervised release of 3 years; restitution
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Homeland Security Investigations, Immigration and Customs Enforcement
U.S. Customs and Border Protection
Departments of Justice and Homeland Security Release Data on Incarcerated Aliens—94 Percent of All Confirmed Aliens in DOJ Custody Are Unlawfully PresentRead the Press Release
President Trump’s Executive Order on Enhancing Public Safety in the Interior of the United States requires the Department of Justice (DOJ) and the Department of Homeland Security (DHS) to collect relevant data and provide quarterly reports on data collection efforts. On Dec. 18, 2017, DOJ and DHS released the FY 2017 4th Quarter Alien Incarceration Report, complying with this order.[1] The report found that more than one-in-five of all persons in Bureau of Prisons custody were foreign born, and that 94 percent of confirmed aliens in custody were unlawfully present.
"The American people deserve a lawful system of immigration that serves the national interest," Attorney General Sessions said. "But at the border and in communities across America, our citizens are being victimized by illegal aliens who commit crimes. Nearly 95 percent of confirmed aliens in our federal prisons are here illegally. We know based on sentencing data that non-citizens commit a substantially disproportionate number of drug-related offenses, which contributes to our national drug abuse crisis. The simple fact is that any offense committed by a criminal alien is ultimately preventable. One victim is too many. It's time for Congress to enact the President's immigration reform agenda so that we start welcoming the best and brightest while turning away drug dealers, gang members, and other criminals."
“While the administration is working diligently to remove dangerous criminal aliens from our streets, this report highlights the fact that more must be done,” said Secretary of Homeland Security Kirstjen Nielsen. “We will continue to pursue President Trump’s immigration priorities, including securing the border, enhancing interior enforcement, and pursuing a merit-based immigration system, but Congress must act immediately to adopt obvious solutions to strengthen DHS and DOJ efforts to confront dangerous criminal aliens.”
Section 16 of the Executive Order directs the Secretary of Homeland Security and the Attorney General to collect relevant data and provide quarterly reports regarding: (a) the immigration status of all aliens incarcerated under the supervision of the Federal Bureau of Prisons; (b) the immigration status of all aliens incarcerated as federal pretrial detainees under the supervision of the United States Marshals Service; and (c) the immigration status of all convicted aliens in state prisons and local detention centers throughout the United States.
A total of 58,766 known or suspected aliens were in in DOJ custody at the end of FY 2017, including 39,455 persons in BOP custody and 19,311 in USMS custody. Of this total, 37,557 people had been confirmed by U.S. Immigration and Customs Enforcement (ICE) to be aliens (i.e., non-citizens and non-nationals), while 21,209 foreign-born people were still under investigation by ICE to determine alienage and/or removability
Among the 37,557 confirmed aliens, 35,334 people (94 percent) were unlawfully present. These numbers include a 92 percent unlawful rate among 24,476 confirmed aliens in BOP custody and a 97 percent unlawful rate among 13,081 confirmed aliens in USMS custody.
This report does not include data on the foreign-born or alien populations in state prisons and local jails because state and local facilities do not routinely provide DHS or DOJ with comprehensive information about their inmates and detainees—which account for approximately 90 percent of the total U.S. incarcerated population.
Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons
The Department of Justice’s Bureau of Prisons (BOP) has an operational process for maintaining data regarding foreign-born inmates in its custody. On a quarterly basis, BOP supplies this information to U.S. Immigration and Customs Enforcement (ICE). ICE, in turn, analyzes that information to determine the immigration status of each inmate and provides that information back to BOP.
Out of the 185,507 inmates in BOP custody, 39,455 (21 percent) were reported by BOP as foreign-born. Further details regarding these 39,455 foreign-born inmates are as follows:
- 20,240 (51 percent) were unauthorized aliens who are subject to a final order of removal;
- 14,979 (38 percent) remain under ICE investigation;
- 2,374 (6 percent) were unlawfully present and now in removal proceedings;
- 1,852 (less than 5 percent) were lawfully present aliens but are now in removal proceedings; and
- 10 were aliens who have been granted relief or protection from removal.
Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees
USMS identified 19,311 aliens and foreign-born inmates under ICE investigation detained at USMS facilities. Further details regarding these 19,311 foreign-born inmates are as follows:
- 11,459 (59 percent) were aliens who are subject to a final order of removal;
- 6,230 (32 percent) remain under ICE investigation;
- 1,261 (6.5 percent) were unlawfully present and now in removal proceedings;
- 358 (less than 2 percent) were lawfully present but are now in removal proceedings; and
- 3 were aliens who have been granted relief or protection from removal.
Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers Throughout the United States
The Departments continue to progress towards establishing data collection of the immigration status of convicted aliens incarcerated in state prisons and local detention centers through the Department of Justice’s Office of Justice Programs, Bureau of Justice Statistics and the Department of Homeland Security’s Office of Immigration Statistics.
[1] The FY 2017 2nd Quarter report is available at: https://www.justice.gov/opa/pr/pursuant-executive-order-public-safety-department-justice-releases-data-incarcerated-aliens-0. Data for the 3rd quarter of FY 2017 is available at: https://www.dhs.gov/news/2017/08/01/pursuant-executive-order-public-safety-departments-justice-and-homeland-security.
Danbury Man Pleads Guilty to Heroin Distribution Charge Stemming from Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE GREGORY CHARON, also known as “Yoshi,” 31, of Danbury, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of distribution of heroin.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 9, 2017, the Danbury Police Department responded to Danbury residence on a report of an untimely death of a woman. Investigators collected from the scene three cellphones, a bottle of methadone and an empty glassine bag marked with a particular brand stamp. Testing of the contents of the bag confirmed that it contained heroin.
The Office of the Chief Medical Examiner determined that the victim died on April 8, 2017, as a result of a methadone and benzodiazepine (Xanax) overdose.
In May 2017, investigators made two controlled purchases of heroin from CHARON. Several of the bags of heroin purchased on both occasions were marked with the same brand stamp that was on the empty bag found in the overdose victim’s residence.
CHARON was arrested on a federal criminal complaint on September 12.
The charge of distribution of heroin carries a maximum term of imprisonment of 20 years. CHARON is scheduled to be sentenced by U.S. District Judge Michael P. Shea on March 12, 2018.
This matter has been investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, the Danbury Police Department and the Darien Police Department. The Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police. This case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and David C. Nelson.
Cypress Man Sentenced for Enticement of a Minor via Messaging AppRead the Press Release
HOUSTON – A 34-year-old Cypress man has been ordered to federal prison following his conviction of coercion and enticement of a minor, announced Acting U.S. Attorney Abe Martinez. Christopher Ray Nunes pleaded guilty June 30, 2017.
Today, U.S. District Judge Melinda Harmon took into consideration the facts and circumstances of the case, specifically that Nunes knew what he was doing was illegal and yet he still travelled to meet someone he believed to be a 15-year-old girl for sexual activity. She then imposed a 120-month term of imprisonment. Nunes was further ordered serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
On Nov. 19 and 20, 2015, Nunes communicated through the texting application known as KIK with someone he believed to be a 15-year-old girl. During those conversations, he detailed his intended plans to engage in sexual acts with her.
On Nov. 20, 2015, Nunes drove from Cypress to Fort Bend County for the purpose of engaging in a sexual act with the girl. He was taken into custody upon his arrival. At the time of his arrest, Nunes was in possession of the phone on which the sexually explicit KIK chats occurred.
Nunes was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Houston Metro Internet Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
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."
Corning Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Kevin Theil, 54, of Corning, NY, who was convicted of possession of child pornography, was sentenced to 30 months in prison and 10 years supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that between 2013 and December 16, 2016, the defendant possessed more than 300 images of child pornography on an Apple MacBook Pro laptop. Theil received the images over the internet. Some of the images depicted prepubescent minors and violence.
In November, 2016, the Ithaca Police Department was alerted by a cooperating witness (CW) that she knew a man from Corning who had a sexual interest in children. The CW told officers that Theil showed her naked images of young girls, approximately seven or eight years old, on his iPad. In addition, the CW stated that Theil admitted to her that he had previously sexually abused his niece on multiple occasions when she was approximately 14 years old. The CW further stated that on another occasion, Theil asked her to facilitate a sexual encounter with a minor female.
On December 15, 2016, search warrants were executed at the defendant’s residence in Corning and at Theil’s lake house in Hammondsport, NY. Following the searches, a forensic examination of the defendant’s computer revealed 367 images of child pornography on Theil’s laptop.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, the New York State Police, under the direction of Major Richard Allen, the Ithaca Police Department, under the direction of Chief Pete Tyler, the Steuben County Sheriff’s Department, under the direction of Sheriff James Allard, and the Albany Division of the FBI, under the direction of Special Agent-in-Charge Vadam Thomas.
Clinton Felon Sentenced to More Than Twenty Years in Federal Prison after Possessing Loaded Firearm and Then Assaulting Mount Vernon Police OfficerRead the Press Release
An eight-time felon who possessed a loaded firearm, and then assaulted and injured a Mount Vernon police officer during a traffic stop on Highway 30 in February 2017, was sentenced today to more than 20 years in federal prison.
Erwin Keith “Duffy” Bell, age 36, from Clinton, Iowa, received the prison term after a June 14, 2017, guilty plea to being a felon in possession of a firearm and ammunition. At the guilty plea, Bell admitted he possessed a .22 magnum caliber revolver after eight prior felony convictions in Iowa and Illinois for, among other things, possession of controlled substances with the intent to deliver, firearms trafficking, extortion, and burglary.
Evidence at the sentencing hearing showed that Bell was a passenger in a car travelling westbound on Highway 30 on February 4, 2017. When a Mount Vernon police officer attempted to arrest Bell, Bell struck the officer and fled. After a brief chase, Bell “squared off” with the officer and resisted arrest. Bell grabbed the officer’s duty baton and hit the officer with it. Bell also attempted to reach for the officer’s waistband during the struggle. After law enforcement officers subdued Bell, they found a loaded firearm on the ground. Bell later threatened to “beat” the arresting law enforcement officer, spat on another law enforcement officer, and was combative at a Cedar Rapids hospital.
Bell was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Bell was sentenced to 248 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $400 in restitution the City of Mount Vernon, Iowa. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Bell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Federal Bureau of Investigation, the Mount Vernon Police Department, the Lisbon Police Department, the Linn County Sheriff’s Office, the Mechanicsville Police Department, the Iowa State Patrol, the Clinton Police Department, the Davenport Police Department, the Eldridge Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-mj-65 and 17-cr-27.
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Citizen of Guatemala Pleads Guilty to Reentering U.S. after Being Deported for Sex Assault ConvictionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIMAS ESCOBAR, 41, a citizen of Guatemala last residing in New Britain, pleaded guilty today in New Haven federal court to one count of reentry of a removed alien.
According to court documents and statements made in court, ESCOBAR was admitted to the U.S. as a lawful permanent resident in November 2004.
In October 2011, ESCOBAR was convicted in Bristol Superior Court of sexual assault in the second degree and was sentenced to eight years of incarceration, execution suspended after 18 months, and 10 years of probation. He also was subject to mandatory sex offender registration.
In May 2013, ESCOBAR was deported from the U.S. to Guatemala.
On June 7, 2017, Plainville Police alerted ICE to ESCOBAR’s presence in the U.S. On June 14, ICE officers arrested ESCOBAR following a traffic stop in New Britain.
ESCOBAR has been detained since his arrest. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on March 15, 2018, at which time he faces a maximum term of imprisonment of 20 years.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Cheektowaga Man Sentenced for Attempting to Possess Child PornographyRead 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 Andrew Reiner, 30, of Cheektowaga, NY, was sentenced to 108 months in prison for attempting to possess child pornography before U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that, beginning in June 2016, the defendant communicated with a 15-year-old girl via cellphone applications Kik and Skout in an effort to have sexual intercourse with the child victim. Through the cellphone applications and text messaging, the defendant convinced the minor victim to sneak out of her home late at night to meet him for sexual activity on as many as four occasions. The defendant attempted to entice the victim to ask her friends to participate in sexual activity as well. Between June 2016 and July 2016, the defendant also asked the 15-year-old girl to send him sexually explicit photographs. Evidence shows the defendant had sexual intercourse with two other minor females.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Violent Crimes Against Children Program, under the direction of Special Agent-in-Charge Adam S. Cohen.
Charles County Sheriff’s Deputy Sentenced to 2 Years in Prison for Possession of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm has sentenced former Charles County Sheriff’s Deputy Alexander C. Sullivan, age 38, of King George, Virginia, to 2 years in prison followed by five years of supervised release for possession of child pornography.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Sheriff Troy D. Berry of the Charles County Sheriff’s Office; and Sheriff Steve F. Dempsey of the King George County Sheriff’s Office.
According to the plea agreement, the National Center for Missing and Exploited Children (NCMEC) received four tips from a company that provides cloud security concerning suspected child pornography being uploaded to a specific telephone number in October and November 2016. An officer from the Charles County Sheriff’s Department conducted a search on the telephone number and determined that it belonged to Alexander Sullivan of Indian Head, Maryland. A state search warrant for Sullivan and his telephone was executed in Charles County on November 17, 2016. A preview of the materials on the phone allegedly revealed more than 100 images and at least seven videos containing child pornography.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, the Charles County Sheriff’s Office and the King George County Sheriff’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Joseph R. Baldwin and Kristi N. O’Malley, who are prosecuting the federal case.
California man charged with using the mail to distribute methamphetamine to VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury returned a Superseding Indictment today charging Alexis Ocegueda, 23, with conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine, distribution of 50 grams or more of a mixture and substance containing methamphetamine, and attempted distribution of 50 grams or more of a mixture and substance containing methamphetamine.
According to Court documents, the United States alleges that during the conspiracy, Ocegueda shipped packages containing methamphetamine from San Diego, California to Vermont using the United States Postal Service. As part of the investigation, law enforcement seized over 250 grams of methamphetamine shipped by Ocegueda to addresses in Vermont.
On December 13, 2017, Ocegueda was arrested by United States Postal Inspectors and agents of the Drug Enforcement Administration at his residence in San Diego, California pursuant to a Criminal Complaint and Arrest Warrant issued by the Honorable John M. Conroy, United States Magistrate Judge for the District of Vermont. On December 19, 2017, Ocegueda appeared before the Honorable William V. Gallo, United States Magistrate Judge for the Southern District of California. Ocegueda stipulated to his pretrial detention, and was ordered removed to the District of Vermont. Ocegueda’s initial appearance in the District of Vermont has not yet been scheduled
The United States Attorney emphasizes that the charges contained in the Superseding Indictment are merely accusations and that Ocegueda is presumed innocent unless and until he is proven guilty. If Ocegueda is convicted, he faces a mandatory minimum sentence of five years, and a maximum possible sentence of forty years on each alleged count.
United States Attorney Christina E. Nolan commended the efforts of the Drug Enforcement Administration and the United States Postal Inspection Service in the investigation of Ocegueda. Nolan added, “it is through such collaborative efforts across agencies and jurisdictions that we bring large-scale traffickers of dangerous drugs to justice. This case exemplifies how our dedicated public servants in law enforcement join forces for the health and safety of the citizens they are sworn to protect. We thank DEA, USPIS, and their local partners for closing off this methamphetamine pipeline that ran from the west coast to Vermont.”
“This arrest reflects DEA’s strong commitment to bring to justice those that distribute methamphetamine,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA and its local, state, and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of Vermont. This investigation demonstrates the strength of collaborative law enforcement efforts in Vermont and across the country, as well as our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone who traffics this poison.”
“It is our duty as Postal Inspectors to go after those individuals who attempt to ship illicit drugs through the US Mail. The war on drugs has been an on-going and hard fought battle for law enforcement. Postal Inspectors will aggressively pursue anyone who attempts to use the Postal Service to facilitate drug trafficking,” said Nichole Cooper, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. An attorney has not yet appeared in Vermont on behalf of Ocegueda. The investigation was conducted by the Drug Enforcement Administration, the United States Postal Inspection Service – Los Angeles Division, and the United States Postal Inspection Service – Boston Division.
Butte County Couple Indicted for Trafficking Methamphetamine in Butte and Shasta CountiesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Curtis Dale Sawyer, 52, and Ann Marie Vance, 49, both of Chico, charging them with conspiring to possess and possessing methamphetamine for distribution, U.S. Attorney Phillip A. Talbert announced. Vance was also charged with unlawful possession of a firearm.
According to court documents, on December 7, officers stopped Sawyer while he was driving northbound on Interstate 5 in Shasta County. After a narcotics canine alerted to the car, agents searched the vehicle and found over three pounds of methamphetamine. Afterwards, law enforcement officers searched the Chico home that Sawyer shared with Vance, where they found more methamphetamine and $106,634 in cash. Officers found another 8.3 pounds of methamphetamine in a car Vance was driving near the home, and a subsequent search of a storage unit connected to Vance uncovered additional methamphetamine, cash, and five firearms. Vance is prohibited by law from possessing firearms.
This case is the product of an investigation by the Shasta Interagency Narcotics Task Force, the Butte Interagency Narcotics Task Force, the Shasta County Sheriff’s Office, and the Drug Enforcement Administration.
If convicted of the most significant drug charges, Sawyer and Vance each face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of the firearm charge, Vance faces a maximum penalty of 10 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 several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Brooke County woman admits to embezzling from credit unionRead the Press Release
WHEELING, WEST VIRGINIA – A Wellsburg, West Virginia woman pled guilty today to taking more than $82,000 from a local credit union, United States Attorney Bill Powell announced.
Michelle K. Martin, age 45, pled guilty to one count of “Theft, Embezzlement or Misapplication by Credit Institution Employee.” Martin admitted to embezzling approximately $82,000 from the Strip Steel Community Federal Credit Union in Brooke County from October 2016 to May 2017.
Martin faces up to 30 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Brevard County Man Sentenced to 24 Years for Production of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Billy Leon Dyer (78, Melbourne) to 24 years in federal prison for producing child pornography. The Court also ordered him to forfeit his residence located at 7664 Candlewick Drive and a vehicle that he used during the offense.
Dyer pleaded guilty on September 20, 2017.
According to court documents, between June 22, 2016, and February 9, 2017, Dyer induced at least three teen girls to engage in sexually explicit conduct so that he could produce child pornography. Dyer paid the girls, who were between 14 and 15 years old, $140-$200 each time he had sex with them. Sometimes he gave them drugs in exchange for sex. Agents discovered Dyer’s conduct after he discussed the details of his explicit activity during jail calls that he made to adult inmates at the Brevard County Jail.
In March 2017, law enforcement officers conducted an undercover operation using an undercover officer posing as an adult woman online. Dyer began a conversation with the “woman” and asked to “meet her soon.” The “woman” said that she was unable to have sex with him, but referred her 15-year-old cousin. Dyer told the “woman” that he would pay her a $40 finder’s fee for referring her “cousin,” and that he would pay her “cousin” $150 to have sex with him. During their conversation, Dyer admitted that he liked young girls and arranged a time to meet the “cousin” for sex. When he arrived at the predetermined location, agents arrested him. On his phone, computer, and thumb drive, agents located more than 170 images depicting the teen girls that Dyer had sex with at his house.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Brevard County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
It is another case 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 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.justice.gov/psc.
Boylston Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
BOSTON – A Boylston man pleaded guilty today in federal court in Worcester to two child pornography charges.
Randy Alan Chaplis, 33, pleaded guilty to one count of distributing child pornography and one count of possessing child pornography involving a prepubescent minor and a minor who had not attained 12 years of age. U.S. District Court Judge Timothy J. Hillman scheduled sentencing for March 22, 2018. Chaplis was arrested and charged by criminal complaint on March 16, 2017, and has been detained since his arrest.
On Feb. 9, 2017, Chaplis sent two emails to an undercover law enforcement officer that included dozens of images of child pornography, including prepubescent girls engaged in sex acts with adult men. In other email communications with the undercover officer, Chaplis stated that he likes three-to-10 year olds, and that he has “fun” with his girlfriend’s five-year-old daughter when her mother is not home. Chaplis emailed graphic descriptions of the sexual acts he purportedly performed on his girlfriend’s child starting when the child was two-years-old. He asked whether the undercover officer intended to have sexual intercourse with the undercover officer’s infant daughter once she turned three or four.
On March 15, 2017, federal agents executed a search warrant at Chaplis’ residence and seized an external hard drive and a desktop computer that included multiple images of child pornography.
The charging statutes provide for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Beach Aviation Owner Robert “Charles” Brady Arrested on 56-Count IndictmentRead the Press Release
Robert Charles Brady, 36, of Fort Lauderdale, was arrested after being charged for wire fraud, filing false records in federal investigation and operating an aircraft without an airman’s certificate. U.S. Magistrate Judge Dave Lee Brannon ordered that Brady be detained.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Marlies T. Gonzalez, Regional Special Agent in Charge, U.S. Department of Transportation, Office of the Inspector General (DOT-OIG), made the announcement.
As alleged in the Indictment, from 2012 to October 2017, Brady owned Beach Aviation, formerly located in Pompano and Boca Raton. It is alleged that Brady operated an illegal charter air carrier service and flight school in which Brady and his employees chartered flights to and from Bahamas and other destinations in the United States without authorization from the FAA. In addition, Brady falsified records seeking a second-in-command rating on a convair jet and claimed to be certified flight instructor on student logbooks, which were relied upon by students and FAA to verify flight hours for FAA pilot certifications and ratings.
The Indictment charges Brady with 56 separate counts. If convicted, Brady faces a maximum sentence of 20 years on each of the 12 counts of wire fraud, 20 years on each of the 17 counts of filing false records in a federal investigation, and three years on each of the 27 counts of operating an aircraft without an airman’s certificate.
Mr. Greenberg commended the investigative efforts of DOT-OIG and the Federal Aviation Administration. The case is being prosecuted by Assistant U.S. Attorney Scott Behnke.
An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Baton Rouge Man Sentenced for Operating an Aircraft in Air Transportation without an Airman’s CertificateRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CHRISTOPHER ROBERTS, age 33, of Baton Rouge, was sentenced today after previously pleading guilty to operating an aircraft in air transportation without an airman’s certificate.
U.S. District Judge Lance M. Africk sentenced ROBERTS to 5 years of probation.
According to court documents, ROBERTS possessed an airman’s certificate prior to September 2009. On or about September 10, 2009, the Federal Aviation Administration (FAA) issued ROBERTS an Emergency Order of Revocation after it was determined that an emergency existed related to safety in air commerce and immediately removed ROBERTS’ airman’s certificates, which are required to pilot an aircraft. Nevertheless, on or about January 25, 2016, ROBERTS knowingly piloted a Cessna 421 aircraft from Cookville, Tennessee to Hammond, Louisiana. Additionally, on or about May 16, 2017, ROBERTS knowingly piloted a Cessna 310 aircraft with passengers from the New Orleans International Airport in Kenner, Louisiana to Sarasota/Bradenton Airport in Florida.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Transportation, Office of Inspector General, and the U.S. Department of Homeland Security, Bureau of Customs and Border Protection, Office of Air and Marine, in investigating this matter. Assistant U.S. Attorney Loan “Mimi” Nguyen was in charge of the prosecution.
BPD Cell Block Attendant Sentenced for Violating the Civil Rights of an Individual in CustodyRead 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 Matthew Jaskula, 27, of Buffalo, NY, who was convicted of willfully depriving another of their constitutional rights under color of law resulting in bodily injury, was sentenced to 18 months in prison and three years of supervised release by U.S. District Judge Lawrence J. Vilardo.
According to First Assistant U.S. Attorney Joseph M. Guerra, who handled the case, Jaskula worked as a Cell Block Attendant with the Buffalo Police Department since 2013. On May 19, 2016, the defendant was working as a Senior Cell Block Attendant.
On May 19, 2016, the victim was arrested by two Buffalo Police officers and transported to the cell block area of police headquarters. At approximately 10:00 p.m., the victim, whose hands were handcuffed behind his back, was taken into the fingerprint and mug shot room. The officers and the victim were met by Jaskula and another cell block attendant.
The victim, with his hands still handcuffed behind him, was instructed to face a wall. Within a few seconds, Jaskula grabbed the victim from behind and shoved the victim face-first into a door. The force of the defendant’s actions not only caused the victim to strike the door, it caused the door to fly open and the victim to fall to the ground. On the way to the ground, the victim’s face struck the ledge of a shelf, before striking the floor, face-first.
The defendant’s actions caused the victim to become limp and unresponsive. Jaskula thereafter grabbed the victim by his handcuffed arms and dragged him down a hallway for approximately 10-15 feet to an open cell. The victim began bleeding profusely as he was dragged by the defendant and taken into an open cell. As the victim was pulled into the room, the victim’s head hit the door frame, causing blood to pool on the floor. Once in the room, the victim’s facial injuries caused a large amount of blood to fall onto the seat and floor of the cell.
The victim was later taken by Jaskula and another and put into a restraint chair used for non-compliant prisoners. The defendant left the victim in this chair, without seeking medical treatment for the facial injuries, for approximately an hour and 45 minutes. The cell block area in Buffalo Police headquarters is equipped with a video recording system and Jaskula’s actions were captured on video.
Jaskula told two lieutenants on duty that a prisoner had a bloody nose, giving the impression that the victim had the bloody nose when he was brought in by the officers. After one of the lieutenants indicated the victim should go to the Erie County Medical Center, the defendant replied that the victim’s nose was not bleeding anymore and he was refusing medical treatment. At approximately 11:30 p.m., the victim complained of chest pains. The victim was taken to ECMC and treated for nasal bone fractures and a laceration between his nose and right eye.
“Every day, children across the country begin their school day repeating the Pledge of Allegiance, which concludes with the following phrase, ‘with liberty and justice for all,’ noted U.S. Attorney Kennedy. “‘All’ means all, it doesn’t mean ‘some’ or simply ‘those who act the way we like.’ This Office remains committed to doing our part to deliver justice to—and to protect the civil rights of—all citizens in our District.”
"The FBI's Civil Rights Program dedicates a significant amount of its efforts to investigating crimes committed by individuals exploiting their government-granted powers," said Adam S. Cohen, Special Agent-in-Charge of the FBI Buffalo Office. "Matthew Jaskula received certain powers from the government so that he could defend the rights of the people and prevent wrongdoing. His badge did not come with the authority to ignore the Constitution; rather, he had a responsibility to uphold it."
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Attorney General Jeff Sessions Rescinds 25 Guidance DocumentsRead the Press Release
Today, Attorney General Jeff Sessions announced that, pursuant to Executive Order 13777 and his November memorandum prohibiting certain guidance documents, he is rescinding 25 such documents that were unnecessary, inconsistent with existing law, or otherwise improper.
In making the announcement, the Attorney General said: “Last month, I ended the longstanding abuse of issuing rules by simply publishing a letter or posting a web page. Congress has provided for a regulatory process in statute, and we are going to follow it. This is good government and prevents confusing the public with improper and wrong advice.”
“Therefore, any guidance that is outdated, used to circumvent the regulatory process, or that improperly goes beyond what is provided for in statutes or regulation should not be given effect. That is why today, we are ending 25 examples of improper or unnecessary guidance documents identified by our Regulatory Reform Task Force led by our Associate Attorney General Rachel Brand. We will continue to look for other examples to rescind, and we will uphold the rule of law.”
In March, President Donald Trump issued Executive Order 13777, which calls for agencies to establish Regulatory Reform Task Forces, chaired by a Regulatory Reform Officer, to identify existing regulations for potential repeal, replacement, or modification. The Department of Justice Task Force, chaired by Associate Attorney General Rachel Brand, began its work in May.
On November 17, the Attorney General issued a memorandum prohibiting DOJ components from using guidance documents to circumvent the rulemaking process and directed Associate Attorney General Brand to work with components to identify guidance documents that should be repealed, replaced, or modified.
The Task Force has already identified 25 guidance documents for repeal and is continuing its review of existing guidance documents to repeal, replace, or modify.
The list of 25 guidance documents that DOJ has withdrawn in 2017 is as follows:- ATF Procedure 75-4.
- Industry Circular 75-10.
- ATF Ruling 85-3.
- Industry Circular 85-3.
- ATF Ruling 2001-1.
- ATF Ruling 2004-1.
- Southwest Border Prosecution Initiative Guidelines (2013).
- Northern Border Prosecution Initiative Guidelines (2013).
- Juvenile Accountability Incentive Block Grants Program Guidance Manual (2007).
- Advisory for Recipients of Financial Assistance from the U.S. Department of Justice on Levying Fines and Fees on Juveniles (January 2017).
- Dear Colleague Letter on Enforcement of Fines and Fees (March 2016).
- ADA Myths and Facts (1995).
- Common ADA Problems at Newly Constructed Lodging Facilities (November 1999).
- Title II Highlights (last updated 2008).
- Title III Highlights (last updated 2008).
- Commonly Asked Questions About Service Animals in Places of Business (July 1996).
- ADA Business Brief: Service Animals (April 2002).
- Prior Joint Statement of the Department of Justice and the Department of Housing and Urban Development Group Homes, Local Land Use, and the Fair Housing Act (August 18, 1999).
- Letter to Alain Baudry, Esq., with standards for conducting internal audit in a non-discriminatory fashion (December 4, 2009).
- Letter to Esmeralda Zendejas on how to determine whether lawful permanent residents are protected against citizenship status discrimination (May 30, 2012).
- Common ADA Errors and Omissions in New Construction and Alterations (June 1997).
- Common Questions: Readily Achievable Barrier Removal and Design Details: Van Accessible Parking Spaces (August 1996).
- Website guidance on bailing-out procedures under section 4(b) and section 5 of the Voting Rights Act (2004).
- Americans with Disabilities Act Questions and Answers (May 2002).
- Statement of the Department of Justice on Application of the Integration Mandate of Title II of the Americans with Disabilities Act and Olmstead v. L.C. to State and Local Governments' Employment Service Systems for Individuals with Disabilities (October 31, 2016).
Acoma Pueblo Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Mykal Concho, 23, an enrolled member and resident of Acoma Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a statutory rape charge. Concho entered the guilty plea without the benefit of a plea agreement.
Concho was arrested on May 23, 2017, on an indictment charging him with sexually abusing a minor between 12 and 16 years of age. According to the indictment, Concho committed the crime between Nov. 24, 2014 and Dec. 31, 2014, on the Laguna Pueblo in Cibola County, N.M.
During today’s proceedings, Concho pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Concho faces a statutory maximum penalty of 15 years in federal prison. He will also be required to register as a sex offender after he completes his prison sentence. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA Office of Justice Services and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Elisa Dimas is prosecuting the case pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
20 December 2017
Woman Sentenced to Federal Prison for Shooting Her Husband While at Residence on Fort Bliss in El PasoRead the Press Release
In El Paso today, a federal judge sentenced 24–year-old Arely Brigette Ruiz to 78 months in federal prison for shooting her husband inside their residence on Fort Bliss earlier this year announced United States Attorney John F. Bash and FBI Special Agent in Charge Emmerson Buie, El Paso Division.
In addition to the prison term, United States District Judge Kathleen Cardone ordered that Ruiz pay $500.00 fine and be placed on supervised release for a period of three years after completing her prison term.
On October 6, 2017, Ruiz pleaded guilty to one count of assault resulting in serious bodily injury.
According to court records, on January 16, 2017, Ruiz transported her husband to the William Beaumont Army Medical Center to receive emergency treatment for an abdominal gunshot wound. Initially, both reported to hospital staff that the weapon, a 9mm pistol, had accidentally discharged during cleaning. Ruiz’s husband underwent successful surgery and remained in a medically induced coma for the next three days.
On January 19, 2017, the victim regained consciousness and immediately told hospital staff that his wound was not self-inflicted, but rather, the defendant shot him with a pistol. After initially denying involvement in the shooting, the defendant admitted to investigators that she, in fact, had shot her husband following an argument about their marriage.
Ruiz has remained in federal custody since her arrest on January 16, 2017.
FBI agents conducted this investigation together with Army Criminal Investigative Command (CID). Assistant United States Attorney Ian Hanna prosecuted this case on behalf of the Government.
Woman Sentenced in Connection to Methamphetamine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Wendy Kennedy, 39, of Beaver Dams, NY, who was convicted of conspiracy to manufacture and distribute methamphetamine, was sentenced to 24 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that between June 2012 and May 4, 2016, the defendant provided her brother and co-conspirator Scott Kennedy with equipment and materials, including pseudoephedrine, with the knowledge and intent that her brother would use them to manufacture methamphetamine. Wendy Kennedy also obtained quantities of methamphetamine from her brother, which he had manufactured, that she then distributed to her own customers. During the course of the conspiracy, Scott Kennedy distributed large amounts of methamphetamine with and to people throughout the area of Schuyler, Chemung, and Steuben Counties in New York.
Also, in furtherance of the conspiracy, the defendant used and maintained 2200 County Route 19, in Dix NY, for the purpose of manufacturing and distributing methamphetamine. Wendy Kennedy permitted her brother to manufacture methamphetamine at this location, and the defendant used that location to sell methamphetamine to others.
Scott Kennedy, and three other defendants, Jared Mendez, Terry Champion, and Quinton Harrison, have also been convicted.
The sentencing is the result of an investigation by the New York State Police, Special Investigations Unit, Rochester; the New York State Police, CNET Southern Tier, under the direction of Major Richard Allen; the Schuyler County Sheriff’s Department, under the direction of William Yessman; and the Schuyler County District Attorney’s Office, under the direction of Joseph Fazzary.
Windham Man Sentenced to Three Years on Child Pornography ChargeRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Matthew Miller, 52, of Windham, Maine, was sentenced yesterday in U.S. District Court by Judge George Z. Singal to three years in prison and ten years of supervised release for accessing with intent to view material containing images of child pornography. Judge Singal also ordered Miller to pay a $5,000 special assessment applicable to non-indigent individuals convicted of child exploitation offenses. Miller pleaded guilty to the offense on July 5, 2017.
According to court records, in September 2016, investigators from Homeland Security Investigations and the Maine State Police Computer Crimes Unit were investigating the exchange of child pornography over the internet. As part of the investigation, agents downloaded child pornography files from a computer that was making the files available. The computer was later determined to be at Miller’s residence in Windham. Investigators executed a search warrant at the residence, and found that Miller had been searching for and downloading child pornography to his computer using a peer-to-peer file-sharing network.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.
Washington Man Sentenced to over 12 Years in Prison for Trafficking over 60 Pounds of Methamphetamine into MontanaRead the Press Release
BILLINGS - The United States Attorney’s Office announced today that Juan Ramon Delgadillo-Meza, a 41 year-old resident of Ephrata, Washington, was sentenced to 151 months in prison, 5 years of supervised release, and a $200 special assessment. The sentence also includes a $1.3 million dollar money judgment. Delgadillo-Meza was convicted of conspiracy to possess with intent to distribute methamphetamine, in violation of 21 U.S.C. § 846, and conspiracy to commit money laundering, in violation of 21 U.S.C. § 1956(h). U.S. District Judge Susan P. Watters presided over the hearing.
In mid-June of 2015, agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force and the Federal Bureau of Investigation’s Big Sky Safe Streets Task Force began an investigation into a methamphetamine trafficking organization responsible for transporting methamphetamine from Washington into Belgrade and Billings, Montana for distribution. Agents identified Juan Ramon Delgadillo-Meza as one of the individuals who transports methamphetamine from Washington to Montana.
In August 2015, agents conducted surveillance and saw Delgadillo-Meza meet with an individual in Billings who was later identified as one of Delgadillo-Meza’s distributors. Agents then learned through hotel records, surveillance video and surveillance that Delgadillo-Meza continued to travel to Montana from September through November.
On November 15, 2015, a Montana Highway Patrol Trooper stopped Delgadillo-Meza for a traffic violation near Manhattan. The vehicle was later searched pursuant to a warrant and approximately 886 grams of pure methamphetamine was seized.
The investigation continued into January 2016 when agents searched the residences of Delgadillo-Meza’s distributors in Billings and Belgrade. During those searches, agents seized approximately 356 grams of pure methamphetamine from a storage facility in Billings.
Sources later confirmed that Delgadillo-Meza began traveling to Billings in 2014 and would transport two pounds of methamphetamine every two weeks. He sold each pound of methamphetamine for approximately $12,500.
Delgadillo-Meza’s Montana distributors were previously convicted and sentenced for narcotics and money laundering offenses in U.S. District Court. The sentence for one of the distributors included the forfeiture of his house, vehicle, and U.S. Currency held in a bank account.
The Delgadillo-Meza case was investigated by the Federal Bureau of Investigation, Eastern Montana High Intensity Drug Trafficking Area Task Force, and multiple other federal, state, and local agencies.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Upshur County woman admits to her role in a stolen firearms and methamphetamine operationRead the Press Release
ELKINS, WEST VIRGINIA – A Buckhannon, West Virginia woman has admitted to her role in a stolen firearms and meth distribution operation, United States Attorney Bill Powell announced.
Lisa Kay Knight, age 24, pled guilty to one count of “Conspiracy to Possess Stolen Firearms.” Knight admitted to conspiring with others to steal, possess, barter and sell firearms for money and methamphetamines in Upshur County and elsewhere from October 2016 to September 2017.
Knight faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department are investigating.
U.S. Magistrate Judge Michael John Aloi presided.United Therapeutics Agrees to Pay $210 Million to Resolve Allegations that it Paid Kickbacks Through a Co-Pay Assistance FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company United Therapeutics Corporation (UT), a seller of pulmonary arterial hypertension (PAH) drugs, has agreed to pay $210 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
UT sells a number of PAH drugs, including Adcirca, Remodulin, Tyvaso, and Orenitram. As part of today’s settlement, the government alleged that UT used a foundation, which claims 501(c)(3) status for tax purposes, as a conduit to pay the co-pay obligations of thousands of Medicare patients taking its PAH drugs. From February 2010 through January 2014, the government alleged, UT routinely obtained data from the foundation detailing how many patients on each UT PAH drug the foundation had assisted and how much the foundation had spent on those patients. The government alleged that UT used this data to decide the amount to donate to the foundation. At the same time, the government alleged, UT had a policy of not permitting Medicare patients to participate in its free drug program (which was open to other financially needy patients) even if those Medicare patients could not afford their co-pays for UT drugs. Instead, in order to generate revenue from Medicare and to induce purchases of its PAH drugs, UT allegedly referred Medicare patients prescribed its PAH drugs to the foundation, which resulted in claims to Medicare to cover the cost of those drugs.
“UT used a third party to do exactly what it knew it could not lawfully do itself,” said Acting United States Attorney William D. Weinreb. “According to the allegations in today’s settlement agreement, UT understood that the third-party foundation used UT’s money to cover the co-pays of patients taking UT drugs. UT’s payments to the foundation were not charity for PAH patients generally, but rather were a way to funnel money to patients taking UT drugs. The Anti-Kickback Statute exists to protect Medicare, and the taxpayers who fund it, from schemes like these that leave Medicare holding the bag for the costs of expensive drugs.”
“While we support efforts to provide patients with access to needed medications, such assistance must comply with federal law. Today’s settlement shows that the government will hold accountable drug companies that attempt to use illegal kickbacks to defeat mechanisms Congress designed to act as a check on drug pricing and healthcare costs,” said Principal Deputy Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
UT also has entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The five-year CIA requires, among other things, that UT implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, compliance-related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
“Our corporate integrity agreement requires United Therapeutics to implement controls and monitoring designed to promote true independence from any patient assistance programs to which it donates,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services. “Without true independence, a drug company can use a foundation as a conduit for improper payments that expose the taxpayer-funded Medicare program to the risk of abuse.”
Acting U.S. Attorney Weinreb, Acting Assistant Attorney General Readler, and HHS- OIG Chief Counsel Demske made the announcement today. This matter was investigated by HHS-OIG, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Department of Veterans Affairs Office of Inspector General, and was handled by Assistant U.S. Attorneys Gregg Shapiro, Abraham George, and Deana El-Mallawany of Weinreb’s Office, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Two Men Sentenced to Federal Prison for Fraud and Impersonating Immigration OfficialsRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake announced today that Michael Ruiz, age 53, and James Mondell, age 55, both of Greenville, South Carolina, were sentenced by Senior United States District Judge Henry M. Herlong, Jr. Ruiz was sentenced to a term of incarceration of 160 months to be followed by 3 years of Supervised Release. He was additionally ordered to pay $54,894.00 in restitution. Mondell was sentenced to a term of incarceration of 40 months to be followed by 3 years of Supervised Release. He was additionally ordered to pay $3,000.00 in restitution.
Both defendants entered pleas of guilty on September 20, 2017. The facts, presented at the guilty plea hearing by Assistant United States Attorney David C. Stephens, established that Ruiz devised a scheme in which he pretended to be an Immigration Official and offered to take care of illegal aliens’ immigration problems in exchange for a fee. A number of aliens agreed to pay Ruiz such fees for his services. Ruiz did absolutely nothing for these aliens, however, he demanded more and more money ultimately threatening to have them deported if he did not receive further payments. Additionally, Ruiz told one alien that he could have his family in Guatemala enter the United States and gain legal status in exchange for a fee. This led to numerous international telephone calls which are the basis for the wire fraud charges. Mondell played a lesser role in the offense. Ruiz would have Mondell with him when he met with the aliens and due to Mondell’s size his presence alone served to intimidate the victims. Additionally, Mondell was involved in handling the payments which were often in the form of money orders which Mondell would cash for Ruiz.
United States Attorney Drake further stated that in addition each defendant received a further term of incarceration due to the fact that their offenses had been committed while they were already on Supervised Release for other crimes. Ruiz received 24 months to be served consecutively to the 160 months referenced above. Mondell received 27 months to be served consecutively to the 40 months referenced above.
This case was investigated by agents of ICE-Homeland Security Investigations. Assistant United States Attorney David Stephens, of the Greenville office, prosecuted the case.
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Two Defendants Plead Guilty in Multimillion Dollar Prize Promotion Scams Targeting Elderly VictimsRead the Press Release
Two individuals who ran multimillion dollar prize promotion scams entered guilty pleas Dec. 12 in federal court in Las Vegas, Nevada, the Department of Justice announced.
Glen Burke, 57, of Las Vegas, pleaded guilty to contempt and conspiracy charges arising from his operation of two predatory schemes that defrauded thousands of victims, many of whom were elderly, out of more than $20 million. Burke conducted those fraudulent campaigns in violation of a 1998 court order obtained by the Federal Trade Commission (FTC) permanently banning him from telemarketing and making misrepresentations to consumers. A co-defendant, Michael Rossi, 52, also of Las Vegas, also pleaded guilty in connection with one of Burke’s schemes.
“The Department of Justice is determined to punish the perpetrators of fraudulent schemes that exploit consumers, especially those that target the elderly or vulnerable,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “We will work with our partners at the FTC and the U.S. Postal Inspection Service to eradicate schemes that harm the elderly wherever we find them.”
Burke pleaded guilty to contempt for violating the court order prohibiting him from making misrepresentations to consumers. That charge stemmed from Burke running a mass-mailing operation that misled consumers into believing that they had won large cash prizes, often millions of dollars. Burke specifically mailed consumers solicitations that used fake names and, in many cases, looked like they came from law firms or financial institutions, advising consumers to pay a fee – usually $20 to $30 –to claim their promised winnings. Once consumers paid, however, Burke never sent any consumer a promised prize.
Burke, along with Rossi, also pleaded guilty to conspiracy to commit mail and wire fraud for running a fraudulent telemarketing operation. Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes, typically: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300. To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars. Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all.
Sentencing is scheduled on March 12, 2018. Under the contempt statute, Burke could be sentenced to any term of imprisonment and fine. Under the conspiracy statute, Burke and Rossi face a potential maximum sentence of 20 years in prison and a $250,000 fine. The court has the discretion to impose a lower sentence.
Principal Deputy Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service and thanked the FTC for its valuable assistance. The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
Two California Men Charged in Large-Scale Opioid Distribution RingRead the Press Release
NOTE: Charges against Stephan Durham were dismissed by court order on Jan. 29, 2018.
NEWARK, N.J. – Two California men were arrested today for their alleged roles in a large-scale opioid distribution conspiracy that involved the shipment of at least 500,000 fentanyl pills to New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Andrew Tablack, 26, of Beverly Hills, California, and Stephan Durham, 43, of Altadena, California, were both charged by complaint with one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of cyclopropyl fentanyl. Tablack is also charged with distribution of 400 grams or more of cyclopropyl fentanyl. Both defendants were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Patrick J. Walsh in Los Angeles federal court.
According to the complaint:
Beginning in August 2017, the Drug Enforcement Administration began an investigation into the distribution of fentanyl in the Monmouth County, New Jersey, area. Agents executed a search warrant at a Monmouth County residence that resulted in the seizure of a substantial quantity of controlled substances, including approximately 300,000 cyclopropyl fentanyl pills that allegedly had been shipped by Tablack to New Jersey. Tablack and his customers across the United States, including New Jersey, allegedly used the Dark Web – a part of the internet that is not accessible without specific software – to arrange shipments of quantities of cyclopropyl fentanyl to various places throughout the country. Tablack also used end-to-end encrypted communication applications to take orders for fentanyl from customers in New Jersey.
The New Jersey customers allegedly provided Tablack with residential addresses in Monmouth County to which the packages of fentanyl could be mailed and arranged to intercept the packages before they were delivered. Customers paid Tablack with Bitcoin, a form of cryptocurrency that is increasingly common in the narcotics trade due to its relative anonymity.
One such set of packages, mailed by Tablack in September 2017, was intercepted by law enforcement when it reached New Jersey. When the packages were opened, agents found that they contained 226,520 cyclopropyl fentanyl pills that weighed nearly 20 kilograms.
Tablack allegedly maintained a pill production facility in California. Shipping records revealed that Tablack had purchased at least nine pill press machines that were shipped to an industrial building in California. Records showed that a company ostensibly run by Durham was registered as the lessee of that industrial property.
Tablack allegedly purchased quantities of fentanyl from a laboratory in China that shipped the packages disguised as food and beauty products. Law enforcement officers in California were able to intercept several additional packages sent from various parts of Asia bound for properties controlled by Tablack and Durham, including fentanyl and dies used to mark illicitly manufactured pills.
The charges carry a mandatory minimum penalty of 10 years in prison, a potential maximum penalty of life in prison, and a $10 million fine.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Office General Crimes Unit in Newark.
Acting U.S. Attorney Fitzpatrick credited the special agents of DEA in Newark, under the direction of Special Agent in Charge Valerie Nickerson; special agents of DEA in Los Angeles, under the direction of Special Agent in Charge David Downing; the U.S. Department of Homeland Security (DHS), Homeland Security Investigation’s (HSI) Newark Division, under the direction of Acting Special Agent in Charge Michael McCarthy; DHS-HSI, Los Angeles Division, under the direction of Special Agent in Charge Joseph Macias; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin; and special agents of the U.S. Postal Service Office of Inspector General, under the direction of Acting Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, with the investigation leading to the charges.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Brothers Sentenced for Attempted Extortion and Embezzlement of Suboxone ClinicRead the Press Release
BOSTON – Two Taunton brothers were sentenced yesterday in connection with attempting to extort and threaten violence against the co-owner of a suboxone clinic in Quincy as well as embezzling money from the clinic.
David Tkhilaishvili, 36, and Jambulat Tkhilaishvili, 46, were sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to three years and 18 months in prison, respectively. Both were sentenced to three years of supervised release. David Tkhilaishvili was also ordered to pay restitution of $3,500. In May 2017, following a five-day trial, a federal jury convicted the brothers of one count of conspiring to extort and one count of attempted extortion. David Tkhilaishvili was also convicted of two counts of embezzlement.
In 2014, the brothers approached the co-owner of a Quincy suboxone clinic and asked him to invest in a new suboxone clinic. The defendants claimed to have many years of experience in running medical clinics, including suboxone clinics. To convince the victim to invest, the defendants promised to repay the victim 50% of his investment in the clinic within five years if the business failed, with 5% interest per year in the event that the victim did not recover his investment in the clinic.
In December 2014, the victim agreed to invest in the clinic and, because of the size of his investment, insisted upon significant contractual protections, including that he would have full decision making authority over matters involving the clinic. The defendants agreed; however, shortly thereafter, the defendants began to demand that the victim surrender his ownership interest and, on multiple occasions, threatened him and his family with physical injury. One of the defendants told the victim that he had made nine people and their families, who had a problem with him in the past, disappear. Both defendants claimed to live the life of outlaws who associated with thieves. In addition, both of the defendants threatened physical harm to the victim and his family and to burn down the clinic if the victim did not comply with their demands. Furthermore, David Tkhilaishvili embezzled approximately $3,500 from the clinic.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Towing Titan Gasper Fiore Pleads Guilty to BriberyRead the Press Release
The owner of multiple towing companies in southeast Michigan, Gasper Fiore, 57, of Grosse Pointe Shores, pleaded guilty today to conspiring to commit bribery, in connection with a municipal towing contract in Clinton Township, Acting United States Attorney Daniel L. Lemisch announced today.
Lemisch was joined in the announcement by David P. Gelios, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
Fiore admitted at the plea hearing that he conspired to pay bribes to Clinton Township Trustee Dean Reynolds in order to obtain a municipal towing contract with the township. Fiore admitted to giving Reynolds cash bribes of $4,000 and $3,000 in March and May of 2016 in order to buy Reynolds’ vote to select Fiore’s company to receive the Clinton Township towing contract. Fiore paid the bribes to Reynolds through Charles B. Rizzo, who was cooperating with federal law enforcement at the time of the bribe payments. Rizzo is the former Chief Executive Officer of Rizzo Environmental Services, and Rizzo pleaded guilty to bribery and embezzlement charges on November 9, 2017.
The bribery conspiracy charge to which Fiore pled guilty carries a maximum sentence of 5 years imprisonment and a fine of $250,000.
Acting United States Attorney Lemisch said, “Today’s guilty plea is a significant blow to corruption in southeast Michigan. Bribery subverts representative government, and this conviction demonstrates that such conduct, by either public officials or bribe payers, will not be tolerated.”
"Today's guilty plea should reassure citizens that those who endeavor to entice public officials through bribery and kickback schemes can count on encountering the formidable investigative resources of the FBI and our partners, and will be held to account for their corrupt practices", said Special Agent in Charge David P. Gelios, Detroit Division of the FBI.
A sentencing date has been set for May 1, 2018.
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, R. Michael Bullotta, and Adriana Dydell.