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Wednesday 1 November 2017
Former Supervisory Deputy Jailer at Kentucky River Regional Jail Sentenced to over 10 Years Imprisonment for Charges Related to the Death of A Detainee and Obstruction of JusticeRead the Press Release
Justice Department announced today that a former supervisory deputy jailer at the Kentucky River Regional Jail (KRRJ), Perry County, Kentucky, has been sentenced to 126 months in federal prison related to his role in an unprovoked violent assault of a detainee.
United States District Judge Karen K. Caldwell formally sentenced Damon Wayne Hickman, 40, on his conviction. Under federal law, Hickman must serve 85 percent of his prison sentence. Following the completion of his prison term, he will be under the supervision of the United States Probation Office for three years.
On Nov. 9, 2016, Hickman entered a guilty plea to using excessive force against the detainee, resulting in bodily injury, and to deliberately ignoring the detainee’s serious medical needs, also resulting in bodily injury, and obstruction of justice. On May 11, 2017, William Curtis Howell, 60, was convicted of the same offenses after a jury trial, and he is scheduled to be sentenced in United States District Court on Dec. 19, 2017. Hickman was also convicted of obstruction of justice for creating a fake medical log to cover up his and Howell’s misconduct.
According to evidence and testimony presented during Hickman’s pretrial hearings and Howell’s jury trial, on July 9, 2013, at the Kentucky River Regional Jail in Hazard, Kentucky, Hickman and Howell violently beat Larry Trent, 54, a pretrial detainee, and left him in his cell, seriously injured and bleeding from an open head wound. Trent ultimately died from injuries sustained during the beating. Trent was in custody for a DUI charge. Hickman, who was initially charged along with Howell, pleaded guilty prior to trial and testified against Howell.
The assault started when Howell and Hickman opened the door to Trent’s cell to remove a sleeping-mat, and Trent ran out of the cell. Howell tased Trent, and after Trent was brought to the floor, Hickman, without justification, violently kicked Trent in the ribs. Hickman and Howell continued their assault after Trent was carried back to the area outside of his cell. Both deputies, without justification, punched, kicked, and stomped on Trent. Witnesses further testified that, before closing the cell door, Howell stepped into Trent’s cell and kicked Trent in the head while Trent was on the floor and posing no threat. After the assault, Hickman and Howell had other inmates clean up Trent’s blood from the floor and walls outside of his cell.
The evidence further revealed that Trent was lying motionless in his cell with blood all over his face. However, Hickman and Howell willfully failed to provide medical attention, because they did not want to get in trouble. Approximately four hours after the beating, another employee at the jail discovered Trent’s lifeless body. Paramedics were summoned and Trent was transported to a local hospital, where he was later pronounced dead.
“Corrections officers throughout the country carry out their duties in a responsible manner on a daily basis,” said Acting Assistant Attorney General John Gore. “Attacks like this one dishonor those responsible corrections officers and is a violation of civil rights, and the Department of Justice will prosecute such misconduct.”
“The criminal conduct in this case was a disgraceful breach of public trust, a grave disservice to truly dedicated law enforcement personnel, and an appalling violation of a man’s civil rights,” said Acting U. S. Attorney Carlton Shier. “Holding law enforcement officials accountable for violations of the public trust we place in them is absolutely critical to making our communities safer.”
Autopsy results presented at trial showed that Trent died from internal bleeding caused by a displaced pelvic fracture, and from blunt force trauma to his head, torso, and extremities.
According to evidence presented at pretrial hearings for Hickman and at an unrelated jury trial of another KRRJ supervisory deputy jailer, Kevin Asher, Hickman and Asher assaulted another pre-trial detainee at the same jail in 2012. On Oct. 19, 2017, Asher was sentenced to 108 months imprisonment for his involvement in that unrelated inmate assault.
The Kentucky River Regional Jail houses pre-trial detainees from Perry and Knott Counties. As a supervisory deputy jailer, Hickman was responsible for the custody, care, safety and control of the inmates at the jail.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; John M. Gore, Acting Assistant Attorney General for the Civil Rights Division; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The investigation was conducted by the FBI and the Kentucky State Police. Assistant U.S. Attorney Hydee Hawkins of the United States Attorney’s Office and Trial Attorney Sanjay Patel of the Civil Rights Division prosecuted this case on behalf of the federal government.
Former Supervisory Deputy Jailer at Kentucky River Regional Jail Sentenced to over 10 Years Imprisonment for Charges Related to the Death of A Detainee and Obstruction of JusticeRead the Press Release
WASHINGTON – Justice Department announced today that a former supervisory deputy jailer at the Kentucky River Regional Jail (KRRJ), Perry County, Kentucky, has been sentenced to 126 months in federal prison related to his role in an unprovoked violent assault of a detainee.
United States District Judge Karen K. Caldwell formally sentenced Damon Wayne Hickman, 40, on his conviction. Under federal law, Hickman must serve 85 percent of his prison sentence. Following the completion of his prison term, he will be under the supervision of the United States Probation Office for three years.
On Nov. 9, 2016, Hickman entered a guilty plea to using excessive force against the detainee, resulting in bodily injury, and to deliberately ignoring the detainee’s serious medical needs, also resulting in bodily injury, and obstruction of justice. On May 11, 2017, William Curtis Howell, 60, was convicted of the same offenses after a jury trial, and he is scheduled to be sentenced in United States District Court on Dec. 19, 2017. Hickman was also convicted of obstruction of justice for creating a fake medical log to cover up his and Howell’s misconduct.
According to evidence and testimony presented during Hickman’s pretrial hearings and Howell’s jury trial, on July 9, 2013, at the Kentucky River Regional Jail in Hazard, Kentucky, Hickman and Howell violently beat Larry Trent, 54, a pretrial detainee, and left him in his cell, seriously injured and bleeding from an open head wound. Trent ultimately died from injuries sustained during the beating. Trent was in custody for a DUI charge. Hickman, who was initially charged along with Howell, pleaded guilty prior to trial and testified against Howell.
The assault started when Howell and Hickman opened the door to Trent’s cell to remove a sleeping-mat, and Trent ran out of the cell. Howell tased Trent, and after Trent was brought to the floor, Hickman, without justification, violently kicked Trent in the ribs. Hickman and Howell continued their assault after Trent was carried back to the area outside of his cell. Both deputies, without justification, punched, kicked, and stomped on Trent. Witnesses further testified that, before closing the cell door, Howell stepped into Trent’s cell and kicked Trent in the head while Trent was on the floor and posing no threat. After the assault, Hickman and Howell had other inmates clean up Trent’s blood from the floor and walls outside of his cell.
The evidence further revealed that Trent was lying motionless in his cell with blood all over his face. However, Hickman and Howell willfully failed to provide medical attention, because they did not want to get in trouble. Approximately four hours after the beating, another employee at the jail discovered Trent’s lifeless body. Paramedics were summoned and Trent was transported to a local hospital, where he was later pronounced dead.
“Corrections officers throughout the country carry out their duties in a responsible manner on a daily basis,” said Acting Assistant Attorney General John Gore. “Attacks like this one dishonor those responsible corrections officers and is a violation of civil rights, and the Department of Justice will prosecute such misconduct.”
“The criminal conduct in this case was a disgraceful breach of public trust, a grave disservice to truly dedicated law enforcement personnel, and an appalling violation of a man’s civil rights,” said Acting U. S. Attorney Carlton Shier. “Holding law enforcement officials accountable for violations of the public trust we place in them is absolutely critical to making our communities safer.”
Autopsy results presented at trial showed that Trent died from internal bleeding caused by a displaced pelvic fracture, and from blunt force trauma to his head, torso, and extremities.
According to evidence presented at pretrial hearings for Hickman and at an unrelated jury trial of another KRRJ supervisory deputy jailer, Kevin Asher, Hickman and Asher assaulted another pre-trial detainee at the same jail in 2012. On Oct. 19, 2017, Asher was sentenced to 108 months imprisonment for his involvement in that unrelated inmate assault.
The Kentucky River Regional Jail houses pre-trial detainees from Perry and Knott Counties. As a supervisory deputy jailer, Hickman was responsible for the custody, care, safety and control of the inmates at the jail.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; John M. Gore, Acting Assistant Attorney General for the Civil Rights Division; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The investigation was conducted by the FBI and the Kentucky State Police. Assistant U.S. Attorney Hydee Hawkins of the United States Attorney’s Office and Trial Attorney Sanjay Patel of the Civil Rights Division prosecuted this case on behalf of the federal government.
Former State Treasurer Barbara H. Hafer Sentenced to Three Years’ Probation for Making False Statements to Federal Law Enforcement AgentsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Barbara H. Hafer, age 73, former Treasurer of Pennsylvania, was sentenced on October 31, 2017, to three years’ probation and a $50,000 fine by U.S. District Court Judge John E. Jones, III, for making false statements to federal law enforcement agents in connection with a long-term FBI-IRS investigation of alleged pay-to-play activities involving Pennsylvania State government. Hafer was indicted on July 20, 2016, and pleaded guilty before Judge Jones on June 9, 2017.
According to United States Attorney Bruce D. Brandler, Hafer was interviewed by federal law enforcement agents in May 2016, regarding her relationship with Richard W. Ireland, an individual that had financial relationships with businesses that provided asset management services to the Pennsylvania Treasury Department while Hafer served as Treasurer. After leaving office, Hafer operated a consulting firm known as Hafer and Associates, LLC, that entered into a contract with a business associated with Ireland. During Hafer’s interview, she denied receiving any money from Ireland or any businesses he was associated with and denied receiving any help from Ireland or any businesses he was associated with in connection with her operation of Hafer and Associates. During Hafer’s guilty plea hearing, she admitted that she lied to the federal agents during that interview because Ireland helped Hafer’s consulting business by causing $675,000 to be paid to Hafer and Associates between 2005 and 2007, an amount that was a substantial portion of Hafer and Associates’ revenue during that time period.
The case was investigated by the Federal Bureau of Investigation and the Criminal Investigation Division of the Internal Revenue Service. Senior Litigation Counsel Michael A. Consiglio and Assistant United States Attorneys William S. Houser, Phillip J. Caraballo and Carlo D. Marchioli prosecuted the case.
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Former Shelter Worker Sentenced to 10 Years of Imprisonment for Attempting to Coerce and Entice an Unaccompanied Alien Minor to Engage in Illicit Sexual ActivityRead the Press Release
Merice Perez Colon, 35, of Homestead, Florida, was sentenced by United States District Judge Kathleen M. Williams to 10 years’ imprisonment and 50 years of supervised release following her conviction for attempting to coerce and entice an unaccompanied alien minor to engage in illicit sexual activity.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG), Miami Regional Office, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), made the announcement.
Perez Colon was employed as a youth care worker at an emergency influx shelter that has since been closed in Homestead that provided services to unaccompanied alien children present in the United States. Perez Colon engaged in inappropriate relationships with minors she met at the shelter by sending and receiving explicit videos and images.
Acting U.S. Attorney Benjamin G. Greenberg said, “The U.S. Attorney’s Office and our law enforcement partners stand united against child exploitation and abuse. Any individual who victimizes unaccompanied alien minors or any other children, who are among society’s most vulnerable victims, can look to this sentencing and see they will face severe consequences within the federal criminal justice system.”
“The sexual exploitation of minors is particularly reprehensible,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “The OIG and our partners will tirelessly pursue those who would violate their position of trust in order to prey on children under the care of the U.S. Government. As seen in this case, they will be held accountable.”
“Perez Colon held a position where she was entrusted with providing care for unaccompanied minors - a trust she violated by sending inappropriate material to her victims,” said HSI Special Agent-in-Charge Mark Selby. “Her behavior is indefensible; and it only reaffirms that joint law enforcement initiatives which target these types of offenders are the best way to ensure they are captured, and held accountable for their illegal and harmful behavior.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.projectsafechildhood.gov.
Mr. Greenberg commended the investigative efforts of HHS-OIG and ICE-HSI. This case is being prosecuted by Assistant United States Attorney Jonathan Kobrinski.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Bordentown Township Police Chief Charged with Hate Crime and Use of Excessive Force During ArrestRead the Press Release
CAMDEN, N.J. – The retired chief of the Bordentown Township Police Department was arrested and charged today with committing a hate crime and violating a man’s civil rights by using excessive force during an arrest, Acting U.S. Attorney William E. Fitzpatrick and FBI Special Agent in Charge Timothy Gallagher announced.
Frank M. Nucera Jr., 60, of Bordentown, New Jersey, was arrested by FBI agents this morning and charged with a hate crime assault and the deprivation of civil rights under color of law. Nucera, who was the township administrator as well as its police chief before he retired earlier this year, will make his initial appearance before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
“The nobility of police officers is rooted in their selfless commitment to protect our communities and their pledge to honor our constitutional values. As Chief of the Bordentown Township Police Department, the defendant dishonored the profession by doing neither,” Acting U.S. Attorney Fitzpatrick said. “The complaint alleges that the defendant harbored an intense racial animosity towards African Americans, and on September 1, 2016, that senseless hatred led to the unlawful assault of a handcuffed and defenseless prisoner. The conduct alleged is a shocking breach of the duty of every police officer to provide equal justice under the law and never to mistreat a person in custody. As a result, the former chief of police is now a charged federal criminal defendant.”
“Police officers take an oath to uphold the law. The FBI works to ensure that they are held accountable when they violate that oath and break the law,” SAC in Charge of the Newark FBI Field Office said. “We rely on the police to protect the public. The few who take advantage of that public trust, at any level, will be investigated and prosecuted to the full extent of the law."
According to documents filed in this case and statements made in court:
On Sept. 1, 2016, two Bordentown Township police officers responded to a phone call from the Bordentown Ramada, complaining that two teenagers had stayed in a room at the hotel without paying. The teens were listed in the complaint as “Civilian 1,” an 18-year-old African American man, and “Civilian 2,” a 16-year-old African American girl. After the officers arrived and questioned the teenagers, the situation escalated into a physical confrontation, with both teens attempting to resist arrest. The officers called for backup, and numerous officers, including then-Chief Nucera, arrived on the scene.
After Civilian 1 was handcuffed and was being escorted out of the hotel by police, Nucera allegedly approached him from behind and slammed the man’s head into a metal doorjamb. A subordinate police officer later surreptitiously recorded Nucera making racist and hostile remarks about Civilian 1, Civilian 2, and African Americans more generally. He repeatedly used racial slurs to refer to Civilian 1 and Civilian 2, and said: “[t]hese fucking people” should “[s]tay the fuck out of Bordentown.” He also said it “would have been nice” if officers could have used a police dog during the arrest.
The use of excessive force and hate crime counts with which Nucera is charged each carry a maximum penalty of 10 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Molly S. Lorber and Sarah M. Wolfe of the Criminal Division in Trenton.
Defense counsel: Tracy Riley Esq., Mount Holly, New Jersey
Fitchburg Man Charged in Federal Drug ConspiracyRead the Press Release
BOSTON – Angel Cruz, a/k/a “Papo,” 57, was arrested today and charged in federal court in Worcester with one count of conspiracy to possess with intent to distribute cocaine.
According to the indictment, unsealed today, Cruz conspired with others in October 2016 to possess with intent to distribute 500 grams or more of cocaine.
Cruz faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Fitchburg Police Chief Ernest F. Martineau; and Lunenburg Police Chief James P. Marino made the announcement today. The Drug Enforcement Administration, Detroit Division, Columbus Office, and the Ohio State Police assisted with the investigation. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Finds Two Miami-Area Men Guilty of $1.8 Million Robbery of Armored TruckRead the Press Release
Fort Myers, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Diosme Fernandez Hano (43) and Reinaldo Arrastia-Cardoso, a/k/a “Reinaldo Arrastia” (47), both from Hialeah, guilty of armed robbery and conspiracy to commit armed robbery. Each faces a maximum penalty of 20 years in federal prison. The sentencing hearings are scheduled for January 29, 2018.
Hano and Arrastia-Cardoso were charged in a superseding indictment on March 16, 2016.
According to evidence presented at trial, on November 30, 2009, Hano and Arrastia-Cardoso committed an armed robbery of a Brink’s armored truck outside of the Fifth Third Bank on Daniels Parkway and Treeline Avenue in Fort Myers. Almost $1.8 million was stolen during the robbery.
This case was investigated by the Federal Bureau of Investigation, the Lee County Sheriff’s Office, the Florida Department of Law Enforcement, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Jeffrey F. Michelland and Simon R. Eth.
Federal Inmate Admits Possessing Images of Child Sexual Abuse While He Was in PrisonRead the Press Release
CAMDEN, N.J. – A federal inmate already serving a lengthy sentence for a child pornography conviction today admitted possessing images of child pornography while in prison, Acting U.S. Attorney William E. Fitzpatrick announced.
Erik M. Smith, 36, of Iron Mountain, Michigan, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with possession of child pornography through the use of a contraband micro SD card. Smith was already serving a 235-month sentence at Federal Correctional Institution Fort Dix (FCI Fort Dix) for his conviction in the Western District of Michigan for receipt of child pornography. Smith had a scheduled release date of March 26, 2027, prior to today’s guilty plea.
According to documents filed in this case and statements made in court:
Smith possessed a 16-gigabyte micro SD card containing 263 images of child pornography, including 213 sexually explicit images of prepubescent children. He told another inmate the SD card included “mostly boy stuff,” referring to images of boys. Smith admitted that he downloaded these and other images of child pornography from a cloud account on behalf of other inmates. Smith was one of five federal inmates arrested on April 26, 2017, on the East Compound of FCI Fort Dix and charged with new counts of distributing images and videos of child sexual abuse within the prison through the use of contraband cellphones and micro SD cards, as well as selling and possessing with intent to sell such images and videos on federal property, and conspiracy to commit these offenses.
The count of possession of child pornography to which Smith pleaded guilty carries a mandatory minimum sentence of 10 years in prison, due to Smith’s prior conviction, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Feb. 13, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked officials of the Bureau of Prisons at FCI Fort Dix for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Gabriel Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations in the complaints against the remaining four federal inmates –Anthony Jeffries, 32, of Orange, Virginia; Brian J. McKay, 46, of Brookhaven, Pennsylvania; Jordan T. Allen, 30, of Plain City, Ohio; and Christopher Roffler, 30, of Virginia Beach, Virginia – are merely accusations, and those defendants are considered innocent unless and until proven guilty.
Defense counsel: Mark W. Catanzaro Esq., Mount Holly, New Jersey
FDA supervisor and local businessman charged in bribery schemeRead the Press Release
ATLANTA - Elvis Gordon, a U.S. Food and Drug Administration (“FDA”) supervisor, and small business owner Ivan Ponder have been arraigned on bribery and conspiracy charges for using Gordon’s influence to divert FDA contracts to a company owned by Ponder.
“Gordon and Ponder allegedly carried out a kickback scheme that lined both their pockets with taxpayer money for nearly six years,” said U. S. Attorney Byung J. “BJay” Pak. “Gordon is charged with violating the public’s trust by taking bribes in exchange for steering FDA business to Ponder.”
“Every federal employee has the responsibility to use the public’s funds wisely,” said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations’ Office of Internal Affairs. “When FDA employees abuse that trust, we will act swiftly to investigate and ensure that those responsible are held accountable.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Elvis Gordon is the Senior Facilities Manager of the FDA field office in Atlanta, and in that role influences the selection of businesses that do various maintenance work at the FDA building in the Atlanta area.
From 2010 until 2016, Gordon allegedly used his position to direct work to P&E Management, a company owned by Ivan Ponder. Ponder, in turn, gave Gordon a debit card tied to P&E’s bank account, which Gordon used for shopping sprees, vacations, and dining out. On one occasion, Gordon used the debit card to pay for FDA business trip expenses, for which Gordon later sought reimbursement from the FDA. P&E also purchased a Cadillac Escalade for Gordon and his wife.
Elvis Gordon, 51, of Marietta, Georgia, and Ivan Ponder, 38, of Hiram, Georgia, were arraigned before U.S. Magistrate Judge Catherine M. Salinas. The defendants were indicted by a federal grand jury on October 17, 2017.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Food and Drug Administration Office of Internal Affairs.
Assistant U.S. Attorney Lynsey M. Barron is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Deported Guatemalan Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of Illegal Re-Entry After Deportation, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on October 31, 2017, named Cesar Garcia Alvarez-Paz, aka Cesar Yohan Alvarez-Paz, Cesar Alvarez, Cesar Alvarez-Paz, age 29, of Guatemala, as the sole defendant.
According to the indictment presented to the court, Cesar Garcia Alvarez-Paz, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on October 7, 2015. Cesar Garcia Alvarez-Paz was found to be illegally present in Coraopolis, Pennsylvania, on October 10, 2017.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Department of Justice Supports BJS’s Efforts to Release State Estimates of Crime from the National Crime Victimization SurveyRead the Press Release
The Department of Justice today announced its support of efforts to collect, analyze and report state and local crime data through the National Crime Victimization Survey. The expansion of the NCVS to produce state and local crime estimates is part of a continuing effort to improve crime data collection and it aligns with recommendations from the President’s Crime Data Task Force, which is focused on reducing violent crime.
Maintained by the Justice Department’s Bureau of Justice Statistics, the NCVS has provided national-level estimates of crime since the 1970s. Unlike the law enforcement statistics compiled by the FBI through its Uniform Crime Reporting Program, the NCVS is a household sample survey that provides data on the incidence and prevalence of nonfatal violent and property crime; characteristics of victims, incidents and offenders; the consequences of crime for victims; and the proportion of crime that is not reported to police. Supplemental surveys to the NCVS also provide data on identity theft, stalking, bullying, contact between police and the public and financial fraud.
“The National Crime Victimization Survey is designed to include offenses not reported to police,” said Deputy Attorney General Rod J. Rosenstein. “This expansion of the survey is intended to give researchers, policymakers and the public a deeper understanding of victimization in America.”
Over the past several years, BJS has worked to expand the capacity of the NCVS to assess state and local crime conditions, policing patterns and other criminal justice services. In 2016, the survey sample was redesigned to generate estimates of crime, both reported and unreported, for the largest 22 states. BJS is analyzing the data and will release the first state-level estimates for the 22 largest states in early 2018. With these data, the 22 states, which represent about 80 percent of the US population age 12 or older, will have a more complete picture of the level and nature of crime, both reported and unreported to police.
As the Justice Department launches a series of initiatives to reduce violent crime, including the National Public Safety Partnership, the state-level data will enable comparison of crime rates among states with differing criminal justice policies and programs. It will also permit the assessment of reductions in reported and unreported crime to police over time.
Additional information about the NCVS and BJS’s statistical publications and other programs can be found on the BJS website at www.bjs.gov.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.
Defendant Sentenced to 33 Months for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Senior United States District Judge Callie V. S. Granade sentenced Demetrius Patterson, 43, to 33 months imprisonment for failing to register as a sex offender. The judge ordered that Patterson pay a $100 special assessment, receive substance abuse and sex offender treatment, and undergo 25 years of supervised release after completing his prison term.
On November 20, 2007, Patterson pleaded guilty to Criminal Sexual Contact in the Third Degree in the Circuit Court of Macomb County, Michigan. Patterson was sentenced to 184 days in Macomb County Jail. Upon release from jail, he was required to register quarterly as a sex offender for life.
Between April 2014 and September 2016, Patterson traveled from Michigan to Alabama without notifying the authorities in these states about his whereabouts and without registering as a sex offender. On September 30, 2016, Patterson was arrested in Mobile, Alabama for Robbery in the First Degree, Possession of Marijuana, and Attempting to Elude. Patterson was booked into the Mobile County Metro jail pending trial. On October 5, 2016, the United States Marshals Service learned about Patterson’s presence in Mobile County. Patterson was a non-compliant registered sex offender from Michigan who had not registered in Alabama as a sex offender. After Patterson received bond and was released from jail in his state case, law enforcement officials determined that Patterson was not living at the local address he gave the bonding company. Furthermore, Patterson had not met with local authorities to register as a sex offender.
In May 2017, a federal grand jury for the Southern District of Alabama charged Patterson with failing to register as a sex offender in violation of 18 U.S.C. § 2250(a). On August 2, 2017, Patterson pleaded guilty to the offense before Judge Granade.The United States Marshals Service investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Day Care Owner Sentenced for Stealing Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Halima Mohamed, 35, of Buffalo, NY, who was convicted of theft of government funds, was sentenced to five months in prison and three years supervised release, to include five months home detention, by U.S. District Judge Lawrence J. Vilardo. In addition, the defendant was ordered to pay restitution totaling $130,188 to the U.S. Department of Health and Human Services and is prohibited from owning/operating a daycare facility for the duration of her sentence.
Assistant U.S. Attorney Maura K. O’Donnell, who handled the case, stated that in February 2015, the defendant and her husband, Tariq Butt, opened Twinkle Stars Day Care Center in Buffalo. Between January 2016 and September 2016, Mohamed submitted hundreds of fraudulent claims to Erie County seeking reimbursement for daycare services purportedly provided by Twinkle Stars to children eligible for Child Care and Development Block Grant funds from the U.S. Department of Health and Human Services. The defendant knew that the children listed on the claims did not actually attend Twinkle Stars on the dates and times claimed, making the daycare ineligible for reimbursement. In total, between January 2016 and September 2016, Erie County paid Twinkle Stars approximately $130,188 for daycare services, which were never provided.
Tariq Butt has been convicted and is awaiting sentencing.
Today’s sentencing is the result of an investigation by the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent-in-Charge Scott Lampert, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Council Bluffs Man Sentenced for Drug Trafficking and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, Iowa - On October 31, 2017, Chief United States District Court Judge John A. Jarvey sentenced Travis Wayne Clark, 27, of Council Bluffs, Iowa, heather Jean Reekrto 60 months in prison for possessing methamphetamine with intent to distribute and a consecutive 60 months for possession of a firearm in furtherance of the drug trafficking offense, announced United States Attorney Marc Krickbaum. Clark will serve four years of supervised release following imprisonment.
Clark entered a guilty plea to the two charges on June 5, 2017. The convictions resulted from an investigation that began with a traffic stop conducted by Council Bluffs Police Department. Located in a vehicle that Clark was driving was methamphetamine, approximately $1,000, along with methamphetamine distribution paraphernalia. In addition, law enforcement found a loaded 9mm handgun on Clark.
This matter was investigated by the Council Bluffs Police Department and the Southwest Iowa Narcotics Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Convicted Felon Guilty of Possession of Firearms and Drug TraffickingRead the Press Release
Memphis, TN – A federal jury has found a Bartlett man guilty for possession of a controlled substance with intent to distribute, possession of firearms in furtherance of drug trafficking, as well as being a felon in possession of firearms. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the guilty verdicts today.
According to information presented in court, throughout August 2016, Detectives with the Bartlett Police Department received information that David High, 31, was selling marijuana at a residence in Memphis, TN. Officers set up surveillance at the residence and saw High smoking marijuana on the front steps of his house. On August 19, 2016, law enforcement witnessed him walk outside with a backpack and get into a truck. They followed him and stopped him for speeding in a school zone.
As officers approached the defendant, he attempted to put something under the passenger side seat. Officers noticed the strong smell of marijuana emanating from the car and noticed the defendant visibly shaken. High admitted to speeding in the school zone. The officers searched the car based on the marijuana smell and found a dark colored backpack under the passenger side seat containing a clear plastic bag with 125 grams of marijuana, a black plastic bag with 125.6 grams of marijuana and a black bag containing 119.3 grams of THC wax. The marijuana field-tested positive.
Based on this information, the officers obtained a search warrant to search for drugs and drug proceeds at the residence. The officers executed the search warrant the same day and discovered a Smith & Wesson .38-caliber revolver loaded with five rounds of ammunition and a Mossberg 12 gauge shotgun. The shotgun has a pistol stock and was located between a bedside table and the bed, allowing for easy access. The shotgun was also within arm’s length of a dresser, which contained the majority of the marijuana. High’s ID was found in the top of one of the dressers in the master bedroom. A box of 12 gauge shotgun shells was found in one of the nightstands in the bedroom.
Throughout the residence was a total of 1265.6 grams of marijuana, 110.2 grams of marijuana wax and $2,990 in cash.
United States Attorney D. Michael Dunavant said, "On July 24, 2017, our office along with other local partners held the ‘Fed Up’ press conference to inform the citizenry that we are fed up with this type of lawlessness, drug trafficking, and gun violence throughout our communities. This case serves as a reminder that if you choose to illegally possess a firearm, you could be facing up to life in federal prison. Gun Crime is Max Time."
Sentencing is scheduled for February 2, 2018, before U.S. District Judge Sheryl H. Lipman. High faces up to 15 years imprisonment.
This case was investigated by the Bartlett Police Department and Project Safe Neighborhoods. Assistant U.S. Attorney J. William Crow is prosecuting this case on the government’s behalf.
- Complaint in U.S. v. Sayfullo Saipov
Colorado Man Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Adrian Chavez, 24, of Greeley, Colo., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
The DEA arrested Chavez in Aug. 2016, after seizing approximately 2.80 kilograms (6.27 pounds) of crystal methamphetamine from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The methamphetamine was contained in five clear plastic containers inside Chavez’s backpack.
Chavez subsequently was indicted on Aug. 23, 2016, and was charged with possession of methamphetamine with intent to distribute on Aug. 12, 2016, in Bernalillo County, N.M.
During today’s change of plea hearing, Chavez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Chavez admitted that on Aug. 12, 2016, he possessed methamphetamine that was concealed inside five plastic containers wrapped with grey duct tape inside his backpack.
At sentencing, Chavez faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Cape Cod Man Pleads Guilty to Conspiracy to Distribute Fentanyl, Heroin, and CocaineRead the Press Release
BOSTON – A Yarmouth Port man pleaded guilty today in federal court in Boston for his role in a wide-ranging operation that distributed heroin and fentanyl throughout Cape Cod.
Kevin Fraga, 24, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, 500 grams or more of cocaine and 100 grams or more of heroin. U.S. District Court Judge Allison Buroughs scheduled sentencing for Jan. 24, 2018.
Fraga and three others were arrested in August 2017 as part of a drug ring that shipped large quantities of fentanyl, cocaine and heroin from Boston to Cape Cod, where it was redistributed. Fraga and his brother, Alex Fraga, were arrested on Aug. 16, 2017, after law enforcement officers seized large quantities of fentanyl, heroin and cocaine from Kevin Fraga’s Jeep and Winnebago, and the home that Alex and Kevin shared in Yarmouth Port. Approximately one week later, Kelvin Chales and James Ramirez, alleged drug suppliers to the Fraga brothers, were arrested, and law enforcement seized fentanyl pills and powdered fentanyl from a drug stash house in Dorchester, Ramirez’s home in Dorchester, and a safety deposit box at Santander Bank in Dorchester.
The charge provides for a mandatory minimum sentence of 10 years and up to life in prison, five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cape and Islands District Attorney Michael O’Keefe made the announcement today. The investigation was led by the DEA Cape Cod Resident Office and the Massachusetts State Police - Cape & Islands District Attorney’s Office in conjunction with the Brewster, Harwich, Sandwich, Mashpee, Chatham, Yarmouth, and Barnstable Police Departments and the Barnstable County Sheriff’s Department. Assistant U.S. Attorney Eric Rosen of Weinreb’s Criminal Division is prosecuting the case
Buffalo Man Sentenced for Violations of Clean Air Act Involving AsbestosRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Sean P. Doctor, 50, of Buffalo, NY, who was convicted of making a false statement under the Clean Air Act, was sentenced to one year probation and fined $2,000 by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that CEM, an environmental consulting company located at 1815 Love Road on Grand Island, provided consulting services to Doctor and his asbestos abatement company, S.D. Specialty Services, LLC. Pursuant to federal regulations, all owners or operators of an asbestos abatement project regulated under the Clean Air Act, must maintain a waste shipment manifest to include the name of the owner/operator; the name of the generator; and the date the asbestos was transported. The information enables the Environmental Protection Agency, which enforces the Clean Air Act and associated regulations, properly and timely to investigate suspected violations of the Clean Air Act.
From December 2009, to January 2010, employees of S.D. Specialty performed asbestos abatement work at the Roosevelt Park Shelter in Buffalo, which was subject to regulations of the Clean Air Act. During the project, S.D. Specialty employees removed asbestos from the Roosevelt Park Shelter and transported the material to a waste container at CEM on Grand Island.
On March 11, 2010, Doctor and CEM executed an asbestos waste manifest which falsely indicated that asbestos had been transported to CEM from the Roosevelt Park Shelter on that date. In truth and in fact, such asbestos had been transported to, and stored at, the Grand Island location prior to March 11, 2010. As such false statement was included in the shipping manifest created when a local waste disposal company retrieved the waste container at CEM on March 11, 2010, such false statement became part of a record required to be maintained under the Clean Air Act.
In addition, on April 28, 2011, an inspection of the Roosevelt Park Shelter revealed asbestos was improperly left behind by employees of S.D. Specialty.
CEM owner Raj Chopra and the company have both been convicted and are awaiting sentencing.
Today’s sentencing is the result of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge Tyler Amon; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.
Brooklyn Resident Charged with Providing Material Support to ISIS Extradited to United StatesRead the Press Release
Earlier today, an indictment was unsealed in federal court in Brooklyn, New York, charging Mirsad Kandic, a legal permanent resident of the United States, with one count of conspiring to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, resulting in death, and five counts of providing and attempting to provide material support and resources to ISIS, including personnel, equipment and false documentation and identification. The defendant was extradited to the United States from Bosnia and Herzegovina yesterday and is scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Dana J. Boente, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the extradition and charges.
“As alleged, defendant Kandic abandoned the United States, his adopted country, and joined ISIS, a violent terrorist organization opposed to the U.S. and its interests,” stated Acting U.S. Attorney Bridget M. Rohde. “From Turkey, he proceeded to recruit others to join ISIS, swelling its ranks and helping it commit terrorist acts such as suicide bombings. Together with our law enforcement partners, we will continue to prosecute ISIS members, as well as other terrorists, to the fullest extent of the law.” Ms. Rohde thanked the authorities of Bosnia and Herzegovina, the FBI Legal Attaché’s Office in Sarajevo, and the Department of Justice’s Office of International Affairs, for their assistance in the investigation and effecting the defendant’s extradition.
“As part of his support for ISIS, the defendant traveled overseas and, while abroad recruited, and facilitated the travel of foreign fighters to join the terrorist organization,” said Acting Assistant Attorney General Boente. “The National Security Division will continue to use all its tools to disrupt the flow of foreign fighters and bring to justice those who provide material support to foreign terrorist organizations.”
“As alleged, at the same time Kandic lived freely among us in New York, he expressed a desire to travel overseas to kill or maim U.S. military forces,” stated FBI Assistant Director-in-Charge Sweeney. “Kandic eventually put his desire in action when he traveled to Turkey to join ISIS, and from there he set about recruiting others, including Jake Bilardi, to support his cause. Just prior to Bilardi successfully detonating a suicide bomb in Ramadi, Kandic told Bilardi he hoped Bilardi’s victims’ organs would ‘implode,’ and just after the attack, Kandic publicized it on Twitter. Kandic is now back in New York, no longer living freely among us, but rather in federal custody to face justice. ”
As alleged in the indictment and other court filings, prior to November 2013, while living in the Bronx and Brooklyn, Kandic expressed the desire to travel overseas to engage in “jihad” against U.S. military forces to obtain martyrdom. In December 2013, Kandic traveled to Istanbul, Turkey and joined ISIS. From there, Kandic recruited individuals from the United States, the United Kingdom, Australia, and elsewhere to travel to ISIS-controlled territory in Syria and Iraq and serve as foreign fighters. In online communications with an associate, Kandic stated he worked in ISIS’s Border Office in Turkey and was part of a team that conducted background checks of foreign fighters seeking to join ISIS in Syria. Kandic told associates that he traveled to and from ISIS-controlled territory, including Raqqa, Syria, in connection with his work with ISIS. In a recorded voice memo from Kandic to an associate, Kandic stated, “I have a lot of Mujahideen in Europe, a lot,” and “I sent out over 20,000 brothers . . . to Sham.” “Mujahideen” refers to fighters. “Sham” is frequently used by ISIS members to refer to the region of the Levant, including Syria.
One of the individuals Kandic assisted was Jake Bilardi, an 18-year-old Australian citizen who traveled from Melbourne, Australia, to Istanbul, Turkey in August 2014. A few days before Bilardi flew to Turkey, Kandic sent Twitter messages instructing Bilardi to stand in a particular section of an airport in Istanbul. Kandic informed Bilardi that he would send someone to meet him there. From Turkey, Bilardi traveled to ISIS-controlled territory in Syria and Iraq. Kandic continued to communicate with Bilardi and encouraged him to commit a suicide attack in Iraq. In early March 2015, Bilardi informed Kandic via Twitter that he “just went to look at my target today for my operation.” Kandic replied, “May Allah reward you immensely.” Kandic later added: “May Allah make there inner organs implode.” On March 11, 2015, Bilardi committed a suicide bombing in Ramadi, Iraq. Kandic publicized the attack via Twitter.
Kandic also worked to further ISIS’s media and propaganda operations. Kandic set up and used over 100 Twitter accounts to provide updates about ISIS attacks and territorial gains, which announcements were close in time to when the events occurred.
If convicted, Kandic faces a maximum sentence of life imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy, Tiana A. Demas and J. Matthew Haggans are in charge of the prosecution, with assistance provided by Trial Attorneys Jennifer Levy and Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
The Defendant:
MIRSAD KANDIC
Age: 36E.D.N.Y. Docket No. 17-CR-449 (NGG)
Brooklyn Businessman Charged with Fraud in Connection with Two Initial Coin OfferingsRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Maksim Zaslavskiy with securities fraud conspiracy in connection with engaging in illegal unregistered securities offerings and fraudulent conduct and misstatements designed to deceive investors as part of two Initial Coin Offerings (ICOs). Zaslavskiy conducted these ICOs through two of his companies, REcoin Group Foundation, LLC (REcoin) and DRC World, Inc., which was also known as Diamond Reserve Club (Diamond). Zaslavskiy marketed RECoin as “The First Ever Cryptocurrency Backed by Real Estate,” and subsequently touted Diamond as an “exclusive and tokenized membership pool” that was hedged by physical diamonds. The defendant was arrested this morning and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. In a separate action, the United States Securities and Exchange Commission (SEC) filed civil charges against Zaslavskiy.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, Zaslavskiy and his associates enticed investors by promising returns using novel ICOs even though Zaslavskiy knew that no real estate or diamonds were actually backing the investments,” stated Acting United States Attorney Rohde. “This Office and our partners at the FBI are committed to protecting investors and ensuring that the securities markets are free from manipulation.” Ms. Rohde extended her grateful appreciation to the Securities and Exchange Commission, New York Regional Office, for their assistance in this case.
“As alleged, Zaslavskiy and associates led their victims to believe they were hedging their bets on cryptocurrency secured by real estate and diamond investments,” stated Assistant Director-in-Charge Sweeney. “Much like a diamond, however, their promises were flawed, and the investments didn't exist. Today’s charges are a reminder that we intend to prosecute those who exploit our markets by engaging in corrupt behavior.”In connection with the two ICOs, Zaslavskiy, with the help of others working with him, allegedly sold virtual tokens or coins to investors under the pretense that the coins were backed by investments in real estate and diamonds, even though no such investments existed. Virtual currency, such as that promoted in these ICOs, is a digital representation of value that can be digitally traded but does not have legal tender status, and functions only by agreement with the community of users of that particular currency. Zaslavskiy and his cohorts promised substantial returns to investors even though neither company had any real operations. With respect to REcoin, Zaslavskiy advertised that the company had a “team of lawyers, professionals, brokers and accountants” who would invest the proceeds from the REcoin ICO into real estate when in fact no such employees had ever been hired or even consulted, and no real estate investments were made. Similarly, Zaslavskiy told prospective investors in Diamond that their investment in Diamond tokens was “hedged by physical diamonds,” even though Diamond had not actually purchased any diamonds or engaged in any business operations.
If convicted, the defendant faces up to five years’ imprisonment and a fine. The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Julia Nestor is in charge of the prosecution.
The Defendant:
MAKSIM ZASLAVSKIY
Residence: Brooklyn, New York
Age: 38E.D.N.Y. Docket No. 17-MJ-934
Bessemer, Michigan Crystal Meth Dealer Sentenced to over 17 Years in Federal PrisonRead the Press Release
MARQUETTE, MICHIGAN —Jeremy James Whitebird, age 34 and formerly a resident of Bessemer, MI, was sentenced to 212 months (17 years, 8 months) in federal prison as a result of Whitebird’s involvement in methamphetamine trafficking and unlawful gun possession in Gogebic County, Acting U.S. Attorney Andrew Birge announced today.
In January 2017, officers assigned to the Gogebic Iron-Area Narcotics Team (GIANT) learned that Whitebird was selling significant amounts of crystal methamphetamine (meth) and other drugs in the Bessemer and Ironwood area. Acting on this information, undercover GIANT officers purchased ounces of crystal meth from Whitebird on three separate occasions and followed that with a search warrant at his residence. During the search, police found 424 grams (about 15 ounces) of crystal meth, 194 grams of cocaine, 27 grams of heroin and 3.5 pounds of marijuana. Whitebird, who has multiple prior felony convictions, was also in possession of several firearms. In addition, Whitebird, who is the father of six children and currently owes more than $25,000 in child support, had about $15,000 in cash in his possession.
Following these discoveries, Sergeant Matthew J. Sterbenz, the head of GIANT, contacted the U.S. Drug Enforcement Administration (DEA) and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) so that Whitebird would be prosecuted in federal court. After Whitebird’s sentencing, Sgt. Sterbenz thanked the officers of GIANT and the Gogebic Iron-Area SWAT Team, the Special Agents of the DEA and ATF, the U.S. Attorney’s Office and Beacon Ambulance Service (which provided standby emergency medical response during the execution of the search warrant) for their work on the investigation.
On June 26, 2017, Whitebird pleaded guilty to one count of possession with intent to distribute methamphetamine and a count related to being a felon in possession of a firearm. U.S. District Judge Paul L. Maloney sentenced Whitebird to 212 months for the meth offense and ordered the 120-month sentence for the firearm offense to run concurrently. Whitebird will also serve 5 years on supervised release after he is released from prison.
Acting U.S. Attorney Andrew Birge observed that the western part of the Upper Peninsula of Michigan is being hit particularly hard by a caustic mix of crystal methamphetamine, opioid addiction, and opioid-related overdoses. Birge vowed that the U.S. Attorney’s Office and its partners at DEA, ATF, and local narcotics teams will continue to aggressively investigate and prosecute armed drug traffickers like Whitebird.
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Armed Drug Dealer Sentenced to More Than 17 Years in Federal PrisonRead the Press Release
Jacksonville, Florida –U.S. District Judge Timothy J. Corrigan yesterday sentenced Michael Holmes (53, Jacksonville) to 17 years and 6 months in federal prison for illegal possession of multiple firearms by a convicted felon, and possession with intent to distribute cocaine and cocaine base (“crack cocaine”). He was found guilty in a bench trial before Judge Corrigan on November 12, 2015.
According to court documents and testimony at the sentencing hearing, on December 29, 2013, Jacksonville Sheriff’s Office detectives questioned Holmes on the front porch of his home about complaints of drug sales occurring at the property. When asked to retrieve his identification, Holmes left the detectives on his front porch and attempted to obtain a firearm from his gun safe inside the home. Unable to get the safe open, Holmes returned to the front porch. He later told the detectives that if he had been able to get the safe open, he believed that he would have been able to “take . . . out” at least two detectives before making his escape.
While waiting on the front porch, detectives smelled fresh burning marijuana wafting out the front door and, when Holmes returned from inside the home, he admitted to smoking marijuana. The detectives obtained a search warrant for the home and later found the gun safe, 12 firearms, over 1,100 rounds of ammunition, high-capacity magazines, a bulletproof vest, approximately $3,600 in cash, three digital scales, more than 49 grams of marijuana, 20 grams of cocaine base, and 29 grams of powder cocaine. When asked how he came to possess the cache of firearms, Holmes explained, “I sell dope. People come. I buy.”
Holmes has multiple, prior felony convictions, including drug sale convictions. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorneys Cherie Krigsman and Michael J. Coolican.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Tuesday 31 October 2017
Woman Faked Death as Part of Cross-Country Luxury Vehicle Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A Portsmouth woman who faked her own death in connection with an elaborate bank fraud scheme pleaded guilty today to conspiracy and fraud charges.
According to court documents, Alexandra Hatcher, 49, conspired with her husband, Albert Hatcher Jr., to collect on life insurance policies the two had obtained to insure Hatcher’s life. After traveling to Washington state and changing her legal name in August 2015, Hatcher and her husband submitted false death claims on at least two of these policies. In support of these claims, Hatcher created fake death certificates and published a death notice in the Daily Press. After insurers denied their claims, Hatcher and her husband undertook a cross-country fraud scheme through which they fraudulently obtained at least 20 new and newer-used luxury vehicles by presenting worthless and counterfeit checks and forged documents to car dealerships in several states. Hatcher and her husband retitled these vehicles and then used them as collateral for loans and other vehicles. The two also resold vehicles to other dealerships for cash. Hatcher used the legal name she adopted just prior to faking her death to purchase, title, and resell vehicles in furtherance of the scheme.
The Hatcher’s each pleaded guilty to conspiracy to commit bank fraud, possessing and uttering a counterfeit security of an organization, and conspiracy to commit mail fraud. Each faces a maximum penalty of 30 years in prison when sentenced. Alexandra Hatcher will be sentenced on Feb. 12, 2018. Albert Hatcher will be sentenced on Jan. 22, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Kaitlin C. Gratton is 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. 4:17-cr-48.
Wilson Drug Trafficker Sentenced After Conviction for Deadly Heroin DistributionRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr. announced that in federal court yesterday, United States District Judge Louise W. Flanagan, sentenced ELTON WAYNE WALSTON, age 66, of Wilson, to 324 months imprisonment followed by 3 years of supervised release.
On June 22, 2017, WALSTON was found guilty of one count of distributing heroin that resulted in the death of a Wilson, N.C. man, one count of possession with intent to distribute heroin, one count of illegally possessing a firearm and ammunition, and four counts of distribution of heroin.
In 2015, the Wilson Police Department and Drug Enforcement Administration (DEA), Raleigh, North Carolina, identified WALSTON as a source of heroin in the Wilson, Greenville, and Nash County areas. Investigation confirmed that the defendant sold heroin on multiple occasions including a sale that led to the death of a Wilson man, in March of 2015.
SARAH ANNE MOLLENHAUER, 32, of Anthem, Arizona was also sentenced to 45 months of imprisonment and 3 years of supervised release. MOLLENHAUER pled guilty to a Superseding Criminal Information on November 15, 2016 that charged her with Distribution of a Quantity of Heroin and Aiding and Abetting.
The evidence presented at the same trial revealed that on March 27, 2015, MOLLENHAUER notified the mother of the man who died that her son was not breathing and that he was at his brother’s residence on Dover Road in Wilson. At the scene, officers located and questioned MOLLENHAUER. Specifically, MOLLENHAUER advised that she and the victim “hung out” on the evening of March 26, 2015. Furthermore, MOLLENHAUER advised that she left the victim around 12:30am on March 27, 2015, to meet her boyfriend. MOLLENHAUER returned to the residence with her boyfriend, a nurse, to check on the victim who was lying on the floor with his eyes closed and breathing heavily. MOLLENHAUER and her boyfriend left the residence at 1:30am. MOLLENHAUER indicated she returned at 5:30am to again check on the victim’s condition. At that time, she found the victim lying on the bathroom floor and not breathing. He was pronounced dead on the scene by responding EMS personnel at 6:21 am.
“Heroin and other opioids are a deadly plague across our country. Our office - along with the entire U.S. Department of Justice - is determined to hold accountable those who deal these deadly drugs to enrich themselves. This prosecution is an example of that determination,” said Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina.
“This guilty verdict is a victory for law enforcement and the citizens of North Carolina. DEA and our law enforcement partners are committed to bringing to justice those who prey on individuals who are unfortunately addicted to this poison. Hopefully, this verdict, will bring some comfort to the families impacted by Mr. Walston’s illegal activities,” said DEA Special Agent in Charge Daniel R. Salter.
The case was investigated by the DEA Raleigh Resident Office, Wilson Police Department, North Carolina State Office of the Chief Medical Examiner, the North Carolina State Bureau of Investigations Crime Lab, and the Bureau of Alcohol Tobacco and Firearms (ATF). The federal prosecution was handled by Special Assistant United States Attorney Benjamin O. Zellinger and Assistant United States Attorney Edward D. Gray. Mr. Zellinger is a prosecutor with the Wake County District Attorney’s Office. Wake County District Attorney Lorrin Freeman has assigned Mr. Zellinger to the United States Attorney’s Office, pursuant to funding provided by the state of North Carolina as allocated by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Williamsville Woman Sentenced for Stealing Social Security Retirement BenefitsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Diane Cleversley, 68, of Williamsville, NY, who was convicted of theft of social security benefits, was sentenced to two years’ probation, to include one year home detention, by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that the defendant failed to notify the Social Security Administration of her mother’s death in 2001. As a result, social security checks continued to be issued and deposited into a joint savings account held by Cleversley and her mother. The defendant transferred funds from the joint savings account into her own checking account. Cleversley, a retired social worker, stole a total of $176,405 between July 2001 and February 2017. The government recovered $104,051 from the savings account and Cleversley has repaid the Social Security Administration restitution totaling $72,354.
The sentencing is the result of an investigation by the Office of the Inspector General of the Social Security Administration, under the direction of Special Agent-in-Charge John Grasso.
Webster Man Charged with Government TheftRead the Press Release
BOSTON – David Brunell, 55, of Webster was arrested today and charged in federal court in Worcester with one count of theft of government money. Brunell was released on conditions following his appearance before U.S. Magistrate Judge David H. Hennessy.
According to the indictment, Brunell embezzled more than $1,000 in funds from the Social Security Administration between January 2004 and May 2017.
Brunell faces a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waterbury Man Sentenced to 37 Months in Prison for Distributing Heroin Involved in Winsted OverdoseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PETER HASKELL, 32, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 37 months of imprisonment, followed by three years of supervised release, for distributing heroin involved in the overdose death of a Winsted woman last year.
This matter stems from 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, in the morning of April 17, 2016, Winchester Police officers and emergency medical personnel responded to a Winsted residence on the report of an unresponsive woman. The woman, who was 27, was pronounced deceased at the scene. Within the residence, officers located and seized several opened and unopened wax folds (“bags”) of suspected heroin/fentanyl, and other narcotics paraphernalia. Investigators also seized the victim’s cell phone.
The Connecticut Chief Medical Examiner’s Office determined that the victim’s death was caused by acute intoxication due to the combined effects of fentanyl, heroin, hydrocodone and alcohol.
The investigation revealed that the day before she was found dead, the victim traveled to Waterbury to purchase heroin from HASKELL. HASKELL subsequently admitted that he sold the heroin that the victim used just before her death.
HASKELL was arrested on a federal criminal complaint on April 21, 2017, and has been detained since his arrest. On July 11, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Winchester Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case was prosecuted by Assistant U.S. Attorneys Robert M. Spector and Natasha Freismuth.
Virginia Man Sentenced to 87 Months in PrisonRead the Press Release
CAMDEN, N.J. – A Virginia man was sentenced today to 87 months in prison for robbing four banks – two in New Jersey and two in Baltimore, Maryland – during a spree in December 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
Bruce Wayne Higgins, 43, of Herndon, Virginia, previously pleaded guilty before U.S. District Court Judge Renée Marie Bumb to a four-count information charging him with robbing: (1) Dec. 10, 2016 – Howard Bank in Baltimore; (2) Dec. 13, 2016 -- Northwest Bank in Baltimore; (3) Dec.15, 2016 – TD Bank N.A. in Ocean City, New Jersey; and (4) Dec. 16, 2016 – Wells Fargo Bank in Atlantic City, New Jersey. Judge Bumb imposed the sentence today in Camden federal court
According to documents filed in this case and statements made in court:
On Dec. 15, 2016, a man entered a TD Bank in Ocean City and presented a teller with a note that read: “GUN IN Pocket, MONEY NOW or –BANG-.” He then took cash from the teller and fled on foot. Law enforcement officers issued a bulletin with a bank surveillance photograph. The robber was later identified as Higgins.
Through coordination with the FBI in Baltimore, Maryland, New Jersey agents learned that a robber with a similar physical description had robbed two banks and a business earlier that week in Baltimore.
On Dec. 16, 2017, a man fitting Higgins’ description walked into a TD Bank in Atlantic City. After recognizing Higgins from the police bulletin, a bank employee triggered the bank’s “hold-up” alarm, and Higgins left the bank and got into a taxicab. Officers from the Atlantic City Police Department (ACPD) arrived at the TD Bank and, following up on information provided by witnesses, issued a bulletin describing the taxicab’s number and direction of travel.
Having received the bulletin describing the taxicab, another ACPD officer located the taxicab near a Wells Fargo Bank in Atlantic City while Higgins was allegedly in the process of robbing that bank. Higgins entered the Wells Fargo Bank and presented a teller with a note that read, “Gun in Pocket, Money Now or Bang now.” After Higgins took the money and fled the bank, ACPD officers arrested him.
Higgins admitted to robbing two banks and a business in Baltimore, Maryland, as well as the two New Jersey banks. During each of the bank robberies, Higgins threatened the bank’s employees and fled.
In addition to the prison term, Judge Bumb sentenced Higgins to three years of supervised release and ordered him to pay restitution of $23,390.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark and Special Agent in Charge Gordon Johnson in Baltimore; the Ocean City Police Department, under the direction of Chief Chad Callahan; the Atlantic City Police Department, under the direction of Chief Henry White; the Cape May County Prosecutor’s Office, under the direction of Prosecutor Robert L. Taylor; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Baltimore County Police, under the direction of Chief Terrance Gordon; and the Fairfax County Police, under the direction of Chief of Police Col., Edwin C. Roessler Jr., with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
United States Recovers $200,000 Resolving Allegations that Social Security Disability Income Recipient Violated the False Claims ActRead the Press Release
DENVER – The United States recovered $200,000 as a settlement of allegations that Stephen G. Ackerman violated the federal False Claims Act by improperly accepting Social Security Disability Income payments and misleading the Social Security Administration (“SSA”) about his work activity, acting U.S. Attorney Bob Troyer announced.
The Settlement Agreement resolves contentions by the United States that Mr. Ackerman failed to accurately report his work activity to SSA between January 2011 and January 2016. The United States contends that Mr. Ackerman engaged in substantial gainful activity that made him ineligible to receive his monthly disability income payments through his work on behalf of Organic Alternatives, a marijuana retail business Mr. Ackerman owns and operates. Because Mr. Ackerman was not truthful to SSA about his work activity, the United States contends that he is liable under the False Claims Act, which allows for civil penalties and treble damages.
“Lying to the federal government does not pay,” said acting U.S. Attorney Bob Troyer. “We are committed to recovering government benefits obtained by fraud.”
“The SSA Office of the Inspector General is committed to protecting Social Security’s disability programs from fraud, waste, and abuse,” said Wilbert Craig, Special Agent-in-Charge of the OIG’s Denver Field Division. “This settlement and monetary recovery demonstrates that we will investigate allegations of false statements related to receiving Social Security disability benefits, to preserve benefits for individuals who truly need and depend on them. I thank the U.S. Attorney’s Office for pursuing this case.”
“Program integrity is one of the Social Security Administration’s highest priorities. We vigorously fight fraud and appreciate the U.S. Attorney’s commitment to recovering the public’s money,” said Asheesh Agarwal, General Counsel, Social Security Administration.
The Social Security Administration Office of Inspector General and Social Security Administration Office of General Counsel were key partners in investigating and resolving this matter. The United States Attorney’s Office in Denver, Colorado works closely with these offices in the pursuit of recouping fraudulently obtained Social Security benefits.
The United States was represented in this matter by Assistant United States Attorney Andrea Wang of United States Attorney’s Office in Denver, Colorado.
United States Announces Settlement with New York City Board of Elections Resolving Improper Removal of Voters from Registration RollsRead the Press Release
The Department of Justice and the United States Attorney’s Office for the Eastern District of New York announced today that it has entered into a settlement with the Board of Elections in the City of New York (NYCBOE), resolving the Department’s claims that the NYCBOE improperly removed New York City voters from voter registration rolls in violation of Section 8 of the National Voter Registration Act of 1993 (NVRA). Under the terms of the settlement, the NYCBOE will ensure that the names of affected voters will be restored to the City’s voter registration list.
The Justice Department’s investigation found that the NYCBOE removed approximately 117,000 voters from the voter registration list solely due to the voters’ failure to vote, something that federal law forbids. The NYCBOE also failed to follow NVRA procedures designed to protect voters from wrongful removal from the voter registration list.
The NVRA includes requirements for maintaining voter registration lists in elections for federal office. The NVRA requires that states make a reasonable effort to remove voters who may have become ineligible due to having died or moved. At the same time, the NVRA has protections against wrongful removal, including specific procedures for voters who may have moved and a requirement that voters cannot be removed solely because he or she has not voted.
The settlement also requires the NYCBOE to develop and implement voter registration list maintenance procedures that comply fully with federal law and protect New York City voters from improper removal from voter registration lists in the future. The parties will submit the settlement to a federal judge for court approval.
“Complete and accurate voter registration lists strengthen our democracy,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Civil Rights Division commends the Board of Elections for working with the Division to ensure that New York City’s voter registration list accurately reflects its eligible registrants, as envisioned by the National Voter Registration Act.”
“The improper removal of voters from the rolls deprives voters of their voice in choosing their elected representatives,” said Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York. “The settlement in this case restores that voice and ensures that eligible voters will be heard in the future.”
More information about the National Voter Registration Act and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about voter registration practices may be reported to the Civil Rights Division at 1-800-253-3931.
United States Announces Settlement with New York City Board of Elections Resolving Improper Removal of Voters from Registration RollsRead the Press Release
BROOKLYN – The Department of Justice and the United States Attorney’s Office for the Eastern District of New York announced today that it has entered into a settlement with the Board of Elections in the City of New York (NYCBOE), resolving the Department’s claims that the NYCBOE improperly removed New York City voters from voter registration rolls in violation of Section 8 of the National Voter Registration Act of 1993 (NVRA). Under the terms of the settlement, the NYCBOE will ensure that the names of affected voters will be restored to the City’s voter registration list.
The Justice Department’s investigation found that the NYCBOE removed approximately 117,000 voters from the voter registration list solely due to the voters’ failure to vote, something that federal law forbids. The NYCBOE also failed to follow NVRA procedures designed to protect voters from wrongful removal from the voter registration list.
The NVRA includes requirements for maintaining voter registration lists in elections for federal office. The NVRA requires that states make a reasonable effort to remove voters who may have become ineligible due to having died or moved. At the same time, the NVRA has protections against wrongful removal, including specific procedures for voters who may have moved and a requirement that a voter cannot be removed solely because he or she has not voted.
The settlement also requires the NYCBOE to develop and implement voter registration list maintenance procedures that comply fully with federal law and protect New York City voters from improper removal from voter registration lists in the future. The parties will submit the settlement to a federal judge for court approval.
“The improper removal of voters from the rolls deprives voters of their voice in choosing elected representatives,” said Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York. “The settlement in this case restores that voice and ensures that eligible voters will be heard in the future.”
“Complete and accurate voter registration lists strengthen our democracy,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Civil Rights Division commends the Board of Elections for working with the Division to ensure that New York City’s voter registration list accurately reflects its eligible registrants, as envisioned by the National Voter Registration Act.”
More information about the National Voter Registration Act and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about voter registration practices may be reported to the Civil Rights Division at 1-800-253-3931.
Under Agreement with the Justice Department and Environmental Protection Agency, Exxonmobil to Reduce Harmful Air Pollution at Eight U.S. Chemical PlantsRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) announced a settlement today with Exxon Mobil Corp. and ExxonMobil Oil Corp., (ExxonMobil) that will eliminate thousands of tons of harmful air pollution from eight of Exxon’s petrochemical manufacturing facilities in Texas and Louisiana. The settlement resolves allegations that ExxonMobil violated the Clean Air Act by failing to properly operate and monitor industrial flares at their petrochemical facilities, which resulted in excess emissions of harmful air pollution.
ExxonMobil will spend approximately $300 million to install and operate air pollution control and monitoring technology to reduce harmful air pollution from 26 industrial flares at five ExxonMobil facilities in Texas—located near Baytown, Beaumont, and Mont Belvieu—and three of the company’s facilities in Baton Rouge, Louisiana.Once fully implemented, the pollution controls required by the settlement are estimated to reduce harmful air emissions of volatile organic compounds (VOCs) by more than 7,000 tons per year. The settlement is also expected to reduce toxic air pollutants, including benzene, by more than 1,500 tons per year.
The Louisiana Department of Environmental Quality is also a signatory of today’s settlement, which resolves alleged violations of Louisiana law at ExxonMobil’s three plants in Baton Rouge, Louisiana.
“This settlement will improve air quality in Texas and Louisiana by eliminating thousands of tons of harmful air pollution each year,” said Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the Department of Justice. “The agreement, which requires Exxon to reduce emissions from its facilities in Texas and Louisiana, demonstrates the Justice Department’s continuing efforts, alongside EPA and our state partners, to protect the American public from these harmful pollutants by bringing sources of air pollution into compliance with the Clean Air Act.”
“This settlement means cleaner air for communities across Texas and Louisiana, and reinforces EPA’s commitment to enforce the law and hold those who violate it accountable,” said EPA Administrator Scott Pruitt. “As this agreement shows, EPA is dedicated to partnering with states to address critical environmental issues and improving compliance in the regulated community to prevent future violations of the law.”
“LDEQ is always happy to cooperate with our federal partners in investigating environmental violations,” said Dr. Chuck Carr Brown, Secretary of the LDEQ. “This settlement will benefit the entire state of Louisiana, and the Beneficial Environmental Projects included in the settlement will enhance LDEQ’s surveillance and enforcement capabilities.”
These pollutants can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Flares are devices used to combust waste gases that would otherwise be released into the atmosphere during certain industrial operations. Well-operated flares should have high “combustions efficiency,” meaning they combust nearly all harmful waste gas constituents, like VOCs and hazardous air pollutants, and turning them into water and carbon dioxide. The agreement is designed to improve Exxon’s flaring practices. First, it requires Exxon to minimize the amount of waste gas that is sent to the flares. Second, Exxon must improve the combustion efficiency of its flares.
In order to minimize the waste gas sent to the flares, Exxon will create waste minimization plans for each facility. At four of the facilities, Exxon will operate flare gas recovery systems which minimize the amount of waste gas sent to the flares by recovering and recycling the gases before they are sent for combustion in a flare. The flare gas recovery systems will allow ExxonMobil to reuse these gases as a fuel at its facilities or a product for sale. In order to improve combustion efficiency, ExxonMobil must also install and operate instruments and monitoring systems to ensure that gases that are sent to flares are efficiently combusted. ExxonMobil will perform air quality monitoring that is designed to detect the presence of benzene at the fence lines of four of the covered plants, and pay a civil penalty of $2.5 million.
Today’s settlement also requires ExxonMobil to spend $1 million on a supplemental environmental project to plant trees in the City of Baytown. The trees will provide a natural buffer to reduce airborne pollutants from the chemical plants to nearby communities.
The LDEQ will receive $470,000 of the $2.5 million total civil penalty, and ExxonMobil will perform two state “beneficial environmental projects,” including purchasing a $1.5 million mobile air quality monitoring vehicle for LDEQ’s use.
The consent decree, lodged in the Southern District Court of Texas, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
More information about the settlement: https://www.epa.gov/enforcement/exxon-mobil-corporationexxonmobil-oil-corporation-clean-air-act-settlement.
Two West Virginia women admit to their roles in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – A Buckhannon, West Virginia women and a Wallace, West Virginia woman have admitted to their participation in a meth distribution operation, United States Attorney William J. Powell announced.
Melissa Ann Masuga, 33, of Buckhannon, West Virginia, pled guilty to one count of “Distribution of Methamphetamine.” Masuga admitted to conspiring with others to distribute methamphetamine in Upshur County and elsewhere from March 2016 to September 2017.
Clarrisa Michelle Adkins, 24, Wallace, West Virginia, pled guilty to “Unlawful Possession of a Firearm.” Adkins admitted to illegally possessing a .40-caliber pistol and a 9mm pistol in Upshur County in April 2017.
Masuga faces up to 20 years incarceration and a fine of up to $1,000,000. Adkins faces up to 10 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.
Two Sentenced for Trafficking MethRead the Press Release
LAREDO, Texas – Two U.S. citizens have been convicted of conspiracy and possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez.
Homero Figueroa-Nava, 37, who resided in Benemerito De Las Americas, Chiapas, Mexico, pleaded guilty April 17, 2017, while Jason Paul Nino, 37, of Waco, entered his plea May 22, 2017. Both men pleaded guilty to conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and possession with intent to distribute approximately 22 kilograms of methamphetamine.
Today, Judge Marina Marmolejo ordered Jason Paul Nino to serve a total of 300 months in federal prison followed by five years of supervised release. Figueroa-Nava will serve a 70-month term of imprisonment and three years of supervised release.
At the time of their pleas, the court heard that a Drug Enforcement Administration (DEA) undercover agent had received approximately 22 kilograms of methamphetamine in Laredo with instructions to take it to Dallas. He was to contact Figueroa-Nava once he arrived at the location. Figueroa-Nava admitted he received the methamphetamine in Dallas and agreed to deliver it to Nino.
Nino admitted he had received the methamphetamine and that it was payment for a previous debt.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The DEA conducted the investigation. Assistant U.S. Attorney Robert Wells Jr. is prosecuting the case.
Two KC Men Charged in Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., men have been charged in federal court for their roles in a conspiracy to commit 10 armed robberies at local businesses.
Jerry D. Patterson, 21, and Michael A. Harris, 19, both of Kansas City, were charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Monday, Oct. 30, 2017. That complaint was unsealed and made public today upon the arrests and initial court appearances of Patterson and Harris.
The federal criminal complaint charges Patterson and Harris together in one count of conspiracy to commit robbery, one count of robbery and one count of brandishing a firearm in furtherance of a crime of violence.
According to an affidavit filed in support of the criminal complaint, Patterson and Harris were involved in a conspiracy to commit 10 armed robberies at area businesses over a four-week period in September and October 2017.
On Oct. 15, 2017, Patterson and Harris allegedly stole $3,500 at gunpoint from Walgreens Pharmacy, 1536 E. 23rd St., Independence, Mo. They drove Patterson’s red 2007 Pontiac G6 sedan, the affidavit says; after officers discovered the vehicle, Patterson and Harrison abandoned it and fled on foot. Investigators searched the vehicle and found a Glock .40-caliber handgun, an extended .40-caliber magazine, money taken from the robbery, and a number of items used in several of the armed robberies. Agents also found a Kahr Arms .40-caliber handgun (seen in several surveillance videos) in a nearby wooded area.
The affidavit also lists a series of armed robberies allegedly committed during the conspiracy. In all of the robberies, says the affidavit, at least one of the defendants displayed a handgun in a threatening manner. The suspects consistently behaved in a violent and aggressive fashion, the affidavit says, pressing a handgun against the stomach or back of business employees and putting an employee on his knees in one of the robberies.
• On Oct. 14, 2017, Patterson and Harris allegedly stole $4,275 at gunpoint from Walgreens Pharmacy, 9300 Gregory Blvd., Raytown, Mo.;
• On Oct. 14, 2017, Patterson and Harris allegedly stole $3,000 at gunpoint from CVS Pharmacy, 6244 S. Brookside Blvd., Kansas City, Mo.;
• On Oct. 10, 2017, Patterson and Harris allegedly robbed Dollar General, 5105 Blue Ridge Blvd., Raytown, Mo., at gunpoint;
• On Oct. 9, 2017, Patterson and Harris allegedly stole $3,705 at gunpoint from Walgreens Pharmacy, 2261 S. Sterling Ave., Independence, Mo.;
• On Oct. 8, 2017, Patterson and Harris allegedly stole $575 at gunpoint from Domino’s Pizza, 3709 S. Noland Road, Independence, Mo. They also allegedly stole $410 from employees.
• On Oct. 2, 2017, Patterson and Harris allegedly stole $2,500 from CVS Pharmacy, 5310 Blue Ridge Blvd., Raytown, Mo.;
• On Sept. 26, 2017, Patterson and Harris allegedly stole $380 from Family Dollar, 12521 E. 40 Hwy., Independence, Mo.;
• On Sept. 26, 2017, Patterson and Harris allegedly stole $150 and some store items at gunpoint from 7 Eleven, 11107 Grandview Rd., Kansas City, Mo.;
• On Sept. 10, 2017, Patterson and Harris allegedly stole $3,500 from Walgreens, 1100 E. 63rd. St., Kansas City, Mo.
Larson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the Raytown, Mo., Police Department.
Three Hawaii Residents Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
RENO, Nev. – Three individuals were sentenced Monday for their roles in a multi-state conspiracy to distribute methamphetamine, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Devon Kealiiaukai Kauwe, 35, of Waianae, Hawaii; Joseph Novit Fua, aka “Joey Boy,” 29, and Rhonda Pualani Wong-Fernandez, 30, both of Honolulu, were sentenced to 130 months, 135 months, and 41 months in prison, respectively, by U.S. District Judge Larry R. Hicks. Kauwe and Fua each pleaded guilty to one count of conspiracy to possess with intent to distribute and one count of distribution of at least 50 grams of methamphetamine and Wong-Fernandez pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine.
According to their individual plea agreements, from April 2014 to May 2014, Kauwe, Fua, and Wong-Fernandez conspired to possess and distribute at least 50 grams of methamphetamine. To further the conspiracy, Kauwe agreed to sell seven pounds of methamphetamine for $102,000 to a buyer who was an undercover agent. Kauwe contacted Fua to help him obtain the drugs. Fua and co-conspirators arranged for and acquired a total of 17 pounds, seven pounds were for Kauwe and 10 pounds were for Fua, of methamphetamine. Fua and Wong-Fernandez obtained the 17 pounds of methamphetamine from co-conspirators in the Los Angeles area. Kauwe and co-conspirator Jeromy Perez received seven pounds of methamphetamine from Fua and Wong-Fernandez. Kauwe and Perez drove with the drugs from California to Reno. Fua and Wong-Fernandez drove with ten pounds to Denver where Fua used a co-conspirator to get the concealed methamphetamine around airport security. In Reno, Perez delivered the methamphetamine to co-defendant Shane Kelly McPherson, who then delivered the drugs to the undercover agent in a casino parking lot. On May 5, 2014, during the drug transaction, law enforcement arrested McPherson, Perez, and Kauwe.
The investigation was conducted by the DEA and Assistant U.S. Attorney James E. Keller prosecuted the case.
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Three Florida Residents Plead Guilty to Operating an Illegal Steroid and Counterfeit Prescription Drug LabRead the Press Release
Montgomery, Alabama – Three people have pled guilty for their involvement in a steroid and counterfeit prescription drug lab in Northwest Florida, announced Louis V. Franklin, Sr., United States Attorney for the Middle District of Alabama.
Ryan Anthony Sikora (24), John Joseph Bush, II (26), and Ariel Anna Murphy (29), all of Chipley, Florida, have pled guilty to conspiracy charges for importing, manufacturing, and distributing anabolic steroids as well as counterfeit prescription drugs. On Thursday, October 26, 2017, the last of the three defendants, John Bush, pled guilty before a Federal Judge in Montgomery, Alabama.
According to court documents, United States Postal Inspectors determined that large amounts of steroid and counterfeit prescription drug ingredients were being shipped from China to various locations in South Alabama and Northwest Florida.
During the investigation, law enforcement found the defendants’ illegal drug lab near Chipley, Florida. In the lab, investigators uncovered a hefty amount of steroids, including over 42,000 pills, over 3,000 liquid vials, and more than a kilogram of raw powders used to make the steroids. Law enforcement also discovered over 35,000 counterfeit prescription pills labeled as Viagra, Cialis, Accutane, and Clomid. Each of these four drugs are regulated by the U.S. Food and Drug Administration (FDA), and are exclusively produced by major pharmaceutical companies. They also require a prescription to be legally dispensed. The defendants mass-produced the pills at the lab using two large-scale pill presses.
The defendants marketed the counterfeit drugs online using the brand name “Future Pharma” and they would typically process the orders through encrypted email, and then use the United States Postal Service to send the contraband products across the United States.
Sikora’s sentencing is scheduled for January 18, 2018. The other two defendants are expected to be sentenced at the same time. Each defendant faces a maximum term of 15 years in federal prison, as well as significant fines and restitution.
U.S. Attorney Franklin would like to thank the following agencies for their assistance with this case: The United States Postal Inspection Service, the FDA Office of Criminal Investigations, the Alabama Law Enforcement Agency (ALEA), the Florida Department of Law Enforcement (FDLE), the Washington County (Florida) Sheriff’s Office, and the Chipley, Florida Police Department. This case is being prosecuted by Assistant United States Attorney Bradley Bodiford.
The Justice Department, Environmental Protection Agency and State of Colorado Reach Agreement with PDC Energy, Inc. to Resolve Litigation and Reduce Air PollutionRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the State of Colorado today announced a settlement with Denver-based PDC Energy, Inc. resolving Clean Air Act violations alleged in a civil complaint. The complaint filed June 26, 2017 alleged that PDC violated requirements to reduce volatile organic compounds (VOC) emissions from its oil and gas exploration and production activities in the Denver area.
This case arose from a series of Colorado inspections that found significant VOC emissions from PDC’s condensate storage tanks. Under the settlement, PDC will spend an estimated $18 million on system upgrades, improved operations and maintenance practices, monitoring, and inspections to reduce emissions. PDC will also be required to implement environmental mitigation projects at certain sites to further reduce VOC and nitrogen oxide (NOx) emissions at a cost of $1.7 million. The settlement includes a $2.5 million civil penalty, which will be split evenly between the United States and the State of Colorado. The state’s share of the penalty may be offset by up to $1 million by performing one or more state-only supplemental environmental projects.
EPA estimates that modifications to the vapor control systems, along with operational and maintenance improvements and increased monitoring, will reduce VOC emissions by more than 1,600 tons per year. PDC already has begun this work, which must be completed on a phased schedule with a deadline of June 30, 2019 for the last phase
“As a result of state and federal efforts, PDC has agreed to take comprehensive action to address excess VOC emissions from its oil and gas operations,” said Associate Attorney General Rachel L. Brand of the Department of Justice. “We are proud that we were able to work side by side with EPA and Colorado to bring these facilities into compliance with the law.”
“This agreement will result in cleaner air in the Denver area and shows that EPA is committed to enforcing the law in order to ensure public health is protected,” said EPA Administrator Scott Pruitt. “This case exemplifies the strong partnerships with states that are integral to delivering results for American communities and finding solutions that build compliance with the law and prevent future violations.”
The settlement covers approximately 650 PDC tank batteries and resolves claims that PDC failed to adequately design, size, operate and maintain vapor control systems on its controlled condensate storage tanks, resulting in VOC emissions. VOC are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. The tank batteries that are subject to today’s settlement are all located in an ozone non-attainment area, meaning that the area does not meet the national air quality standard that EPA set for this pollutant.
As part of the settlement, PDC has agreed to evaluate the design and capacity of its vapor control systems, modify those vapor control systems as necessary to ensure that that they are adequately designed and sized to collect and convey emissions to a control device, implement an enhanced inspection and maintenance program, and undertake periodic infrared camera inspections to identify any emissions and take prompt corrective action to address those emissions. Where monitoring and recordkeeping indicates recurring issues resulting in emissions, PDC will take proactive measures to identify the cause of these issues and prevent their recurrence.
In addition, PDC will implement two environmental mitigation projects to further reduce emissions of ozone precursors from certain PDC well pads in the nonattainment area by an estimated combined 425 tons per year. These efforts are in addition to measures PDC has already taken to reduce emissions from its well pads, such as implementing techniques at all locations equipped with automation capability to sell oil from storage tanks without the need to open thief hatches for sampling or gauging.
The consent decree, lodged in the District Court of Colorado, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
More on this settlement: https://www.epa.gov/enforcement/pdc-energy-inc-clean-air-act-settlement.
Texas Man Pleads Guilty to Violating Federal Drug Trafficking and Firearms Laws in New MexicoRead the Press Release
ALBUQUERQUE – Michael Dwain Samples, 25, of Monahans, Tex., pled guilty today in federal court in Las Cruces, N.M., to violating federal drug trafficking and firearms laws under a plea agreement with the U.S. Attorney’s Office.
Samples’ co-defendant, Nicolas Robert Muniz, 26, also of Monahans, Tex., was charged by criminal complaint on June 5, 2017, after law enforcement officers seized approximately 504 grams of methamphetamine, 50 grams of marijuana, and firearms and ammunition from Muniz’s vehicle following a routine traffic stop. During the traffic stop, Muniz allegedly acted suspicious and nervous causing the officers to deploy a drug detection canine on the vehicle, and the canine allegedly alerted the officers to the presence of controlled substances in the vehicle.
Samples and Muniz were subsequently charged in a six-count indictment on Sept. 13, 2017. Samples and Muniz were charged with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute. Muniz was charged individually with being a felon in possession of a firearm and ammunition and possession of a firearm in relation to a drug trafficking crime. Samples was charged individually with being a felon in possession of a firearm and ammunition and possession of a firearm in relation to a drug trafficking crime. According to the indictment, the offenses took place on May 16, 2017, in Lea County, N.M. Samples was prohibited from possessing firearms or ammunition because he was previously convicted of possession of a controlled substance. Muniz was prohibited from possessing firearms or ammunition because he was previously convicted of theft of property.
During today’s proceedings, Samples pled guilty to conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute and being a felon in possession of a firearm and ammunition. In entering the guilty plea, Samples admitted that on May 16, 2017, he traveled with another individual from Monahans, Tex., to Carlsbad, N.M., to purchase approximately 469 grams of methamphetamine with the intention of distributing the methamphetamine to other people in exchange for money. Samples further admitted that on May 16, 2017, he was in possession of a firearm and ammunition despite his status as a convicted felon.
At sentencing, Samples faces a statutory minimum penalty of ten years and a maximum of life in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
Muniz has entered a plea of not guilty to the charges in the indictment, and is currently scheduled for trial in Jan. 2018. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Texas Man Convicted of Kidnapping Child to MexicoRead the Press Release
BROWNSVILLE, Texas – A 36-year-old man has admitted he kidnapped his minor child from Brownsville and took her to Mexico City, Mexico, announced Acting U.S. Attorney Abe Martinez.
Ismail Khaleel Al Gebory, of San Antonio, had taken the child during a weekend visitation and fled to Mexico.
The mother had sole custody of the child, but Al Gebory had regular visitation. He would travel from his residence in San Antonio to Brownsville on Friday evenings and would return the child to the mother on Sundays. However, on Friday, Feb. 17, 2017, Al Gebory picked up the child but did not return her that weekend in violation of the divorce decree between him and the child’s mother. After picking up the child, he drove to Mexico City, Mexico, and stayed at a hotel with the minor child.
The mother contacted authorities and told them Al Gebory had relatives in Iraq. While in Mexico, Al Gebory visited the Iraqi Embassy and attempted to obtain travel documents for the minor child. On Feb. 23, 2017, Mexican Customs detained Al Gebory before entering the Iraqi Embassy. The next day, the FBI took him into custody.
At the time of the arrest, the child was with him, but has since been returned to the mother.
U.S. District Judge Andrew Hanen accepted the plea today and set sentencing for Feb. 6, 2018. At that time, Al Gebory faces up to three years in federal prison. He was permitted to remain on bond pending that hearing.
The FBI, Department of State and the Brownsville Police Department conducted the investigation with the assistance of Mexican Customs. Assistant U.S. Attorney Jose A. Esquivel Jr. and Ana C. Cano are prosecuting the case.
Springfield Landlord Found Liable of Housing DiscriminationRead the Press Release
BOSTON – A Springfield landlord was found liable by a federal jury on Friday, Oct. 24, 2017, of discriminating against a family in violation of the Fair Housing Act (“Act”).
John DeRaffele, of New Rochelle, N.Y., was found liable following a five-day jury trial of discrimination based on familial status under the Fair Housing Act. The Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. DeRaffele violated the Act by including an addendum to leases that prospective renters could not rent apartments if they had minor children, were pregnant, or became pregnant. Furthermore, in 2015, DeRaffele refused to rent an apartment to a Springfield family because they had a child under six years of age and because the wife was pregnant. When the couple filed a complaint with state authorities, DeRaffele retaliated by suing the couple in federal court alleging $1 million in damages.
The jury found that DeRaffele interfered with the family’s fair housing rights by discriminating based on familial status and engaged in a pattern or practice of discrimination against prospective tenants based on their familial status. The jury awarded $8,500 in damages to the family, and imposed a $35,000 civil penalty for the pattern and practice discrimination.
Acting U.S. Attorney William D. Weinreb and Susan Forward, Regional Director of the U.S. Department of Housing and Urban Development, Fair Housing and Equal Opportunity, New England Office made the announcement. Assistant U.S. Attorney Jennifer A. Serafyn, Chief of Weinreb’s Civil Rights Unit, and Special Assistant U.S. Attorney Gregory J. Dorchak, also of the Civil Rights Unit, handled the case.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
South Korean Maker of Contact Lenses, Company CEO Charged with Smuggling Products into U.S. by Failing to Declare Full ValueRead the Press Release
LOS ANGELES – Geo Medical Co., Ltd., a contact lens manufacturer based in the Republic of Korea that claims to be the “leading brand of circle lenses,” has been charged in federal court with illegally bringing contact lenses into the United States by dramatically undervaluing shipments in documents submitted to customs officials.
An indictment returned on Friday by a federal grand jury charges the company and its chief executive officer with five counts of illegal entry of falsely classified goods. The indictment against Geo Medical and Hwasung Pak, the company’s president and CEO, alleges they sent to the United States shipments of contact lenses with values ranging from $6,200 to $71,815, but declared all five shipments to be worth less than $200. This undervaluing allegedly allowed them to avoid import duties, as well as inspection and seizure by the FDA.
In 2013, Geo Medical was placed on an FDA “Red List” that restricted imports of its products after samples of its contact lenses were found to be contaminated with microorganisms. The import alert authorized the FDA to automatically detain any Geo Medical contact lenses coming into the United States.
In two other cases filed on October 27, two corporations that operate retail outlets in Los Angeles and Orange counties were charged with selling “misbranded” contact lenses without the necessary prescriptions. The criminal informations filed by prosecutors charge I-Takashima, Inc. and TS Group, Inc., which operate cosmetics and gift stores under the Takashima name in Irvine and Rowland Heights, respectively. The decorative contact lenses allegedly illegally sold by Takashima were marketed as Halloween and beauty accessories under the brand name Deja-vu and were manufactured by Geo Medical.
Contact lenses – whether corrective, cosmetic or decorative – are prescription medical devices subject to United States Food and Drug Administration regulations. Due to the risk of injury, blindness and possible eye infection, all contact lenses require prescriptions from medical professionals who can provide guidance on the proper care and maintenance of the contact lenses.
The FDA regularly issues warnings concerning the use of decorative contact lenses, which have become popular during the Halloween season. The American Academy of Ophthalmology also cautions against the use of decorative contact lenses and los lentes de contacto de color.
Indictments and criminal informations contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Geo Medical and Pak are charged with five felony offenses, each of which carries a statutory maximum penalty of two years in federal prison for the CEO and fines of up to $500,000 for the corporation.
I-Takashima and TS Group are each charged with one misdemeanor count of selling misbranded devices. This charge carries a maximum fine of $200,000 for the corporations.
I-Takashima has been summoned to appear for an arraignment in United States District Court in Santa Ana on November 27. TS Group, Geo Medical and Pak have been summoned to appear for arraignments in federal court in Los Angeles on November 30.
The ongoing investigation into the illegal importation and sale of contact lenses is being conducted by the FDA’s Office of Criminal Investigations
The three cases announced today are being prosecuted by Assistant United States Attorney Diana M. Kwok of the General Crimes Section.
Sixth Member of “Manche Boy Mafia” Gang Sentenced to Federal Prison for Credit Card Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Demeko Wells (22, Tampa) to four years and nine months in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. He pleaded guilty on July 19, 2017.
According to court documents and statements made in court, from at least January 2015 through November 2016, Wells and others affiliated with the “Manche Boy Mafia” or “MBM” organization conspired to commit credit card fraud and identity theft in the Tampa Bay area. Investigators learned that these individuals had purchased stolen credit and debit card account numbers online from various websites, some of which used bitcoins as their currency. The conspirators purchased or stole reloadable gift cards and used a machine to emboss the stolen account numbers and their own names onto the front of these altered gift cards, thereby generating counterfeit credit cards. The conspirators then used these counterfeit cards at various retailers around the Tampa Bay area to purchase gift cards and electronics, which they either kept or sold for cash.
Investigators determined that these individuals had engaged in hundreds of successful transactions with counterfeit credit cards, and had possessed and used thousands of stolen account numbers from individuals across the United States. In total, Wells was held responsible for more than $350,000 in intended or attempted purchases with counterfeit credit cards and stolen account information.
Wells’s co-defendant, Maurice Lewis, pleaded guilty to conspiracy and aggravated identity theft and was sentenced on October 17, 2017, to 61 months in prison.
In a related case, fellow MBM members, Brandon Lewis and Terrance Cobb, were each sentenced to 5 years and 1 month in federal prison; Dontae Williams was sentenced to 5 years and 10 months in federal prison; and Davon Smith was sentenced to 5 years and 5 months in federal prison - all for engaging in a conspiracy to commit credit card fraud, credit card fraud, and identity theft.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Shelby County Duo Agree to Plead to Conspiracy to Operate Pawn Shop Fencing RingRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office today charged two Shelby County residents with conspiring to operate a large-scale pawnshop fencing ring, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
In separate informations filed in U.S. District Court, prosecutors charged STEVE RANDALL SCOTT, 59, of Shelby County and Puerto Rico, and SARAH VICKERS, also known as Sarah Elizabeth Cahill and Sarah Vickers Morrow, 39, of Shelby County, with one count of conspiring to transport stolen goods across state lines. Scott and Vickers have agreed to plead guilty and signed plea agreements. They must appear before a judge to formally enter guilty pleas.
“These defendants encouraged thieves to bring stolen retail merchandise to their pawn shops to fuel an illicit online business where they sold as much as $1.5 million in stolen goods,” Town said. “Thanks to the outstanding work of the Secret Service, our partners at the Jefferson County District Attorneys’ Office and local law enforcement, we have been able to shut down a widespread fencing operation in our district,” he said. “This exemplifies the successes in partnerships.”
“This case highlights the excellent work the Secret Service Financial Crimes Task Force is conducting,” Williams said. “This task force is a strong force-multiplier of Birmingham metro area law enforcement that fights financial crimes affecting our community.”
According to Scott’s and Vickers’ plea agreements, Scott, personally and through his relatives and corporations, owned and operated multiple check-cashing, check advance, title loan, and traditional pawn businesses in the Birmingham metro area operating under the names Cashmax, Check Exchange, Cash 101, Cash Plus and Scott’s Jewelry and Pawn. Scott employed Vickers to operate the Cashmax, Check Exchange, Cash 101 and Cash Plus locations.
In 2015, Scott, Vickers and others agreed to start taking in items from shoplifters. Vickers and other employees of Scott encouraged shoplifters to bring them new, in-box items from national retailers including Walmart, Target, CVS, Walgreens and Home Depot. The stolen items included power tools, graphing calculators, Fitbit activity trackers, vacuum cleaners, designer purses and electric toothbrushes. Vickers and other Scott employees accepted the stolen goods, paid the shoplifters a portion of their value, resold the items for a profit on Amazon and eBay, and mailed them to locations across the United States, according to the plea agreements.
On Oct. 14, 2016, the Secret Service Financial Crimes Task Force, working in conjunction with the U.S. Attorney’s Office and the Jefferson County District Attorney’s Office, raided 12 of the Scott locations and arrested 16 people including Scott and Vickers. The task force recovered two tractor-trailers’ worth of stolen goods. The more than 5,000 items had a value of at least $500,000. Scott and Vickers acknowledge in their plea agreements that they sold at least another $500,000 in stolen items via eBay and Amazon. The total loss to area retailers from their scheme is between $550,000 and $1.5 million.
Scott already has forfeited much of the proceeds of the scheme and is no longer operating the businesses. Scott and Vickers will face up to five years in prison and fines up to $250,000.
The Secret Service Financial Crimes Task Force is composed of investigators from the Secret Service, the Vestavia Hills, Mountain Brook, Birmingham, Homewood and Alabaster police departments, and prosecutors from the Jefferson County District Attorney’s Office and the U.S. Attorney’s Office. eBay also assisted in the investigation. Assistant U.S. Attorneys Erica Williamson Barnes, Robin Beardsley Mark and Nicole Grosnoff are prosecuting the case.
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Roswell Woman Sentenced to 63 Months for Federal Drug Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Renee Rodriguez, 33, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 63 months in prison for her conviction on methamphetamine trafficking and firearms charges. Rodriguez will be on supervised release for three years after completing her prison sentence.
Rodriguez and co-defendant Joseph Vallejos, 25, also of Roswell, were charged in a criminal complaint filed in Sept. 2015, with conspiracy, distribution of methamphetamine, and firearms offenses in Chaves County, N.M. According to the criminal complaint, Rodriguez and Vallejos sold an aggregate of 157.7 grams of methamphetamine to undercover law enforcement officers during nine separate transactions between July 2015 and Sept. 2015. The complaint further charged Rodriguez with brandishing a handgun during a methamphetamine transaction on July 8, 2015.
Rodriguez and Vallejos subsequently were charged in a nine-count indictment that was filed on Dec. 17, 2015. The indictment charged Rodriguez and Vallejos with conspiring to distribute methamphetamine from July 1, 2015 through July 30, 2015. It also charged Rodriguez with distributing methamphetamine on three occasions in July 2015, and Vallejos and Rodriguez with distributing methamphetamine on four occasions in July 2015. Rodriguez also was charged with brandishing a firearm during a drug trafficking crime on July 8, 2015. According to the indictment, Vallejos and Rodriguez committed the nine crimes in Chaves County.
On Aug. 12, 2016, Rodriguez pled guilty to two of the distribution of methamphetamine charges and to brandishing a firearm during a drug trafficking crime. In entering the guilty plea, Rodriguez admitted that on July 8, 2015, she distributed approximately 15 grams of methamphetamine to an undercover law enforcement officer, and during that transaction she used and carried a firearm. Rodriguez further admitted that she distributed approximately 11.9 grams of methamphetamine to an undercover law enforcement officer on July 30, 2015.
On Aug. 3, 2016, Vallejos pled guilty to a conspiracy charge and four methamphetamine distribution charges. At sentencing, Vallejos faces a statutory minimum of five years and a maximum of 40 years in federal prison followed by not less than four years of supervised release. Vallejos also will be ordered to pay $750.00 in restitution to the United States, which represents the proceeds he derived from the drug trafficking offenses to which he pleaded guilty. Vallejos remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Roswell office of the FBI and the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Randolph County Man Sentenced for Methamphetamine OffenseRead the Press Release
On October 31, 2017, Robert J. Smith, Jr., 48, Sparta, was sentenced to federal prison for a methamphetamine offense, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Smith, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute methamphetamine, was sentenced to 188 months of imprisonment, three years of supervised release, and was fined $400.00. The superseding indictment alleged that the methamphetamine offense occurred between 2014 and September 2016, in Perry, Randolph, St. Clair, and Franklin Counties. Evidence at the plea and sentencing hearings established that Smith was involved with numerous other persons in the distribution of ice in southern Illinois. Ice is methamphetamine which has a purity level of at least 80%. At sentencing, the district court found that Smith was responsible for the distribution of approximately 7.9 kilograms of ice.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Steeleville Police Department, Illinois State Police, Sparta Police Department and Southern Illinois Drug Task Force. The Randolph County States Attorney’s Office also assisted in the investigation.
Prosser Man Sentenced to 27 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Stephen Jeffrey Castilleja, age 28, of Prosser, Washington, was sentenced today for four counts of Production of Child Pornography. Senior United States District Judge Edward F. Shea sentenced Castilleja to a twenty-seven year term of imprisonment, to be followed by a lifetime of court supervision after he is released from federal prison. Castilleja will also be required to register as a sex offender.
According to information disclosed during court proceedings, in January of 2016, a Kennewick Police Department detective affiliated with the Southeast Regional Internet Crimes Against Children Task Force (SER-ICAC) was conducting an online undercover investigation relating to the distribution of child pornography. During the course of this investigation, an IP address affiliated with Castilleja and his residence in Prosser was identified as distributing known images of child pornography. Law enforcement agents obtained a federal search warrant for Castilleja’s residence.
Law enforcement officers with the SER-ICAC, HSI, and the Benton County Sheriff’s Office executed the search warrant at Castilleja’s residence. Castilleja was located in close proximity to the residence and was subsequently interviewed. During the course of the interview, Castilleja admitted that he possessed “inappropriate videos” on his computer, and advised he thought he may lose a lot of his life, including his teaching job and volunteer position, over the videos. Castilleja further informed officers that he viewed child pornography for ten to fifteen minutes a day at his worst, and could not bring himself to delete his collection of child pornography. Castilleja also admitted that he had produced child pornography images of two minor children when they were five or six years old, and directed officers to specific electronic devices in the residence that contained child pornography.
The electronic devices seized from Castilleja’s residence were forensically examined. Officers located known child pornography images, as well as child pornography images Castilleja had produced of children close to him. The children depicted were children Castilleja had access to by virtue of his job as a first grade teacher, his intimate relationships, and his familial relationships. The child pornography images and videos that Castilleja produced spanned almost a decade, and included images and videos that portrayed Castilleja engaged in sexual abuse of two of the minor victims. Another video depicted a victim in the school where Castilleja taught as a first grade teacher.
At sentencing, Judge Shea read portions of the impact statements submitted by the victims in the case. He emphasized the immense and immediate harm Castilleja’s actions had on the victims and their families, as well as the long-term ramifications of Castilleja’s crimes. Judge Shea also recognized Castilleja’s abuse of the various positions of trust he held in the community, stating, “In this case there was the ultimate betrayal of trust…the face of a predator is not always what we think it will be. In this case it was a face that seem[ed] harmless…” Judge Shea further stated, “You had a compulsion, an obsession, and structured your life in a position to take advantage of little people…when they were most vulnerable.”
Joseph H. Harrington said, “Today’s sentence should serve as a warning to those criminals who produce child pornography -- they will be actively pursued by federal and state law enforcement officers. This egregious case is an example of the superb work that can be accomplished when state and federal law enforcement officers work together. The United States Attorney’s Office will continue to prosecute aggressively child pornography crimes that occur in the Eastern District of Washington.”
“We entrust teachers to serve as role models for our children and safeguard their welfare. As this sentence makes clear, when that trust is violated, there will be serious consequences,” said Brad Bench, special agent in charge for Homeland Security Investigations (HSI) Seattle. “This case should also serve as a stern warning to those who mistakenly believe cyberspace affords them anonymity and they can use the Internet to sexually exploit children with impunity.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The Southeast Regional Internet Crimes Against Children Task Force, Homeland Security Investigations, Kennewick Police Department and Benton County Sheriff’s Office conducted the investigation of this matter. The case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington, and Andrew Howell, Deputy Prosecuting Attorney for Benton County.
Pocatello Man Pleads Guilty to Sexual Exploitation of MinorRead the Press Release
POCATELLO – Alfredo Padilla, 59, of Pocatello, Idaho, pleaded guilty yesterday to sexual exploitation of a minor child, U.S. Attorney Bart M. Davis announced. Padilla was indicted by a federal grand jury in Pocatello on May 23, 2017.
According to the plea agreement, Padilla coerced an 11-year old girl to take pictures of her exposed breasts, then forced her to pose for additional pornographic pictures. A forensic search of Padilla’s phone revealed 43 images relevant to the case, and images of Padilla were interspersed with images of the young girl. When interviewed by police, Padilla admitted to taking the pictures. In court, Padilla admitted to taking pornographic photographs of the child and to using, persuading, or coercing the child to take part in sexually explicit conduct for the purposes of producing the photographs.
A charge of sexual exploitation of a minor child is punishable by a prison sentence of 15 to 30 years, a fine of up to $250,000, a term of supervised release of five years, up to life, and special assessment totaling $5,100.
The case was investigated by the Pocatello Police Department and U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI).
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.”
Pendleton County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – A Franklin, West Virginia man admitted to a firearms violation, United States Attorney William J. Powell announced.
Randy David May, age 37, pled guilty to “Felon in Possession of a Firearm.” May, having been convicted of three prior felonies, admitted to possessing a 12-gauge shotgun on August 28, 2016 in Pendleton County.
May faces up to ten years in prison 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 case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.