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Thursday 26 October 2017
Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that LUIS CHAVEZ-LOPEZ, age 31, a native of Mexico, pled guilty yesterday to a one-count Indictment for illegal reentry of a removed alien.
According to court documents, CHAVEZ-LOPEZ was previously removed from the United States on February 5, 2015. He was found in the Eastern District of Louisiana on May 3, 2017, without permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter the country. CHAVEZ-LOPEZ re-entered the United States after being convicted of Possession with Intent to Distribute Marijuana in Jefferson Parish. CHAVEZ-LOPEZ’s conviction occurred on June 1, 2009.
CHAVEZ-LOPEZ faces a maximum term of imprisonment of twenty years in prison, a fine of $250,000, three years of supervised release, and a $100 special assessment fee. U.S. District Judge Susie Morgan set sentencing for January 24, 2018.
Acting U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
Massive Sentence Imposed for Pasadena Bank RobberyRead the Press Release
HOUSTON – A Houston man will be serving more than 40 years in prison for the attempted robbery and robbery of the Shared Resources Credit Union and for using and carrying a firearm during commission of the crimes, announced Acting U.S. Attorney Abe Martinez. A federal jury deliberated for less than five hours before convicting Raynard Gray, 34, and Sonny Pervis, 28, March 23, 2017, on all counts as charged following a three-day-trial.
Today, U.S. District Judge Sim Lake handed Pervis a total sentence of 485 months in federal prison – 125 months for the robberies in addition to five years for the first firearms charge and another 25 years for the second which must be served consecutively to each other and to the bank robbery sentences. Following completion of his more than 40-year prison term, he will serve five years of supervised release. The sentence was enhanced due to the reckless endangerment during flight. The judge found that following the robbery, Pervis aided and abetted the high speed chase and fired his weapon at a civilian in a nearby neighborhood.
Gray’s hearing was continued to a later date.
A total of seven men met and planned the robbery of the credit union. At trial, the jury heard Gray was the leader of this robbery crew and acted as a lookout during the robberies, while Pervis was one of the men who entered the credit union and brandished and discharged a firearm.
They arrived at the bank first on Saturday, July 26, 2014, with the intention of committing the robbery. The jury heard that employees inside the bank observed the men with the firearms as they approached. However, the doors to the lobby were locked so the crew left, but returned two days later to complete the crime.
The men fled the scene after stealing the money on July 28. A civilian followed them in order to give police the vehicle information of the robbers, during which time Howard Glaze, 24, of Houston, and Pervis discharged their firearms in a neighborhood in his direction. The group then led officers on a high-speed chase from Pasadena to north Houston, where they abandoned their vehicle and fled on foot. Glaze was soon apprehended. The investigation later led to the discovery and arrest of the others.
During trial, the jury saw surveillance videos, photos and police dash camera footage of the high speed chase and heard testimony from 12 witnesses. They also heard from a sergeant with the Pasadena Police Department who collected cash, bank straps and clothing of the robbers from the abandoned vehicle. The officer was also able to lift a fingerprint off a trash bag found in that vehicle, which belonged to Pervis.
The defense did not dispute that the robberies occurred, but contended that Pervis and Gray were not involved. The jury was not convinced and convicted them on all charges.
Pervis and Gray and Braziel will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The remaining five co-defendants - Keith McGee, 27, Glaze, Kwhun Johnson, 25, Leroy Richardson, 37, and Chris Braziel, 30, all of Houston, had pleaded prior to trial. McGee was ordered to serve a sentence of 140 months, while Richardson, Johnson and Glaze received respective sentences of 130, 60 and 130 months imprisonment. Braziel is set for sentencing Feb. 15, 2018.
The FBI and police departments in Pasadena and Houston conducted the investigation. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case.
Maryland Man Sentenced for Medicaid Fraud, Tax EvasionRead the Press Release
RICHMOND, Va. – A Maryland man was sentenced today to 37 months in prison for conspiring to defraud Medicaid and evading both his personal income taxes and his company’s employment taxes.
Lamar Taylor, 39, of Bowie, pleaded guilty to conspiracy to commit health care fraud, and tax evasion, on August 4. According to court documents, Taylor was the owner and operator of Alexandria-based Global Interventions, LLC, a business that marketed itself as a provider of therapeutic treatment services for at-risk children. Taylor obtained contracts with Alexandria City Public Schools and Hopewell City Public Schools, becoming an approved Medicaid-contracted service provider for mentoring services to at-risk youth. Between April 2014 and September 2016, Taylor billed Alexandria City Public Schools and Hopewell City Public Schools for hundreds of therapeutic day treatment sessions with at-risk youth that did not take place, receiving approximately $595,000 in fraudulently obtained Medicaid funds. Taylor also evaded paying over his personal income taxes and Global’s employment taxes from 2012 to 2015, resulting in a tax evasion liability of approximately $398,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Thomas A. Garnett and David V. Harbach II prosecuted 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. 3:17-cr-101.
Manhattan Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Manuel Clemente, age 62, of Manhattan, New York, pled guilty today to conspiring to distribute cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his plea, Clemente admitted that he worked with others to distribute cocaine in New York City and Schenectady, New York. Clemente also admitted that when he was arrested on May 30, 2017 in Manhattan, he was providing approximately $12,000 to a conspirator in exchange for approximately 190 grams of cocaine.
Clemente’s prosecution is part of a takedown of a Capital Region drug trafficking ring that led to charges against 12 other defendants, all of which remain pending.
Clemente faces up to 20 years in prison, a maximum $1 million fine, and a term of post-imprisonment supervised release of at least 3 years and up to life when he is sentenced by United States District Judge Mae A. D’Agostino on February 22, 2018 . A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, Schenectady County District Attorney’s Office, the U.S. Drug Enforcement Administration, Albany County Sheriff’s Office, New York State Police, and the New York Department of Corrections and Community Supervision. This case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Manchester Man Pleads Guilty to Drug Trafficking and Firearms ChargesRead the Press Release
CONCORD, N.H. - Kaisle J. Raikes, 25, of Manchester, pleaded guilty in federal court to drug trafficking and firearms charges, Acting United States Attorney John J. Farley of the District of New Hampshire announced today.
According to court documents and statements made in court, beginning on or about May 16, 2017 through May 31, 2017, on three separate occasions, Raikes sold methamphetamine to a confidential informant working with the Manchester Police Department. Raikes had firearms displayed during two of the drug transactions. At the time of his arrest, Raikes had drugs on his person as well as a loaded firearm in his sock. The Manchester Police Department subsequently executed a search warrant at Raikes’ apartment and seized two loaded firearms, ammunition, and quantities of methamphetamine, cocaine, and Suboxone.
Raikes pleaded guilty to three counts of distribution of a controlled substance, one count of possession with intent to distribute a controlled substance, one count of being a felon in possession of a firearm, and one count of possession of a firearm in furtherance of a drug trafficking crime,
Raikes is scheduled to be sentenced on February 1, 2018.
“The U.S. Attorney’s Office is committed to working with our law enforcement partners to stop drug trafficking and violent crime,” said Acting U.S. Attorney Farley. “Guns and drugs are a potentially lethal combination that can threaten the safety of our communities. This case is an example of our ongoing effort to target those who commit gun-related crimes.”
This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man Sentenced to 6 1/2 Years in Prison for Illegal Marijuana Grow Operations at Two Las Vegas HousesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced Wednesday to 78 months in prison for maintaining two Las Vegas houses that he converted into illegal indoor marijuana grow operations, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Jian Guo Han, 66, was convicted by a jury in July of one count of conspiracy to manufacture marijuana and one count of manufacturing marijuana. United States District Judge James C. Mahan presided over the jury trial and sentencing hearing.
According to documents filed with the court, during an investigation into a concerned citizen’s report, law enforcement observed unlawful modifications to a house that were indicative of an indoor marijuana grow operation. During the execution of a search warrant, police discovered over 500 marijuana plants and evidence which led law enforcement to a second house. This house was also converted into an indoor marijuana grow operation and had three rooms dedicated to growing marijuana. A total of 342 marijuana plants and 210 marijuana clones, or cuttings from a mature cannabis plant, were found at the second house.
The investigation was conducted by the Las Vegas Metropolitan Police Department.
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Man Admits Smuggling Chocolate-Covered Heroin into Newark Liberty International AirportRead the Press Release
TRENTON, N.J. – A Guatemalan citizen today admitted transporting three kilograms of heroin that had been coated in chocolate in a failed attempt to bring the drugs undetected through Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced.
Jacobo Leonel Orellana-Estrada, 21, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of possession with intent to distribute more than one kilogram of heroin.
According to the documents filed in this case and statements made in court:
On June 11, 2017, Orellana-Estrada arrived at Newark Liberty International Airport as a passenger aboard a commercial airline flight from Guatemala City, Guatemala. U.S. Customs and Border Protection (CBP) officers stopped Orellana-Estrada at customs inspection and searched his luggage. In one of his bags, they discovered what appeared to be six small single-layer cakes that were actually packages of heroin coated in a thin layer of chocolate and wrapped in paper.
The count of possession with intent to distribute more than one kilogram of heroin carries a maximum potential penalty of life in prison. Sentencing is scheduled for Jan. 29, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of CBP, under the direction of Acting Director of Field Operations Leon Hayward, New York Field Office, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Newark Field Office, under the direction of Acting Special Agent in Charge Debra Parker, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Narcotics/OCDETF unit of the U.S. Attorney’s Office in Newark.
Defense counsel: .Kevin Carlucci, Esq., Assistant Federal Public Defender
Maine Fisherman Sentenced for Illegally Trafficking American EelsRead the Press Release
Richard D. Austin was sentenced to 24 months’ imprisonment yesterday for trafficking juvenile American eels (also called “elvers” or “glass eels”) in violation of the Lacey Act, following a hearing in federal district court in Norfolk, Virginia. The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and United States Attorney for the Eastern District of Virginia, Dana J. Boente.
In April 2017, Austin, who has several previous wildlife-related convictions, pleaded guilty to violating the Lacey Act by selling elvers in interstate commerce that he had harvested illegally in Virginia and Massachusetts. Court documents indicate that Austin trafficked at least 147 pounds of elvers, which is approximately 300,000 individual eels, and worth more than $162,000. Austin sold these eels to exporters, who then exported them from the United States to international markets.
“Illegal harvesting and trafficking of wildlife represents a dire threat to our critical ecosystems,” said U.S. Attorney Boente. “This case reaffirms our commitment to protecting Virginia’s natural resources for future generations.”
"Today's sentencing sends a strong message to those who choose to exploit and illegally traffic our native wildlife," said U.S. Fish and Wildlife Service Acting Chief of Law Enforcement, Ed Grace. "We appreciate the dedication of the Department of Justice, and our partners involved in this case, and will continue to work with federal, state, and local conservation law enforcement officials to combat the illegal wildlife trade."
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in these populations. As a result, harvesters have turned to the American eel to fill the void. American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver and grow to adulthood in fresh water. Elvers are exported for aquaculture in East Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to East Asia for more than $2,000 per pound.
Because of the threat of overfishing, Atlantic Coast states have cooperatively prohibited elver harvesting in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities. Other Atlantic coast states, including Virginia, have commercial fisheries for adult or “yellow” eels.
This case was the result of “Operation Broken Glass,” a multi-jurisdiction U.S. Fish and Wildlife Service investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for 18 individuals whose combined conduct resulted in the illegal trafficking of more than $5 million worth of elvers.
“In this operation, we are actively partnering with state and federal law enforcement agencies in order to protect our nation's marine resources from further exploitation.” said Acting Assistant Attorney General Wood.
Operation Broken Glass was conducted by the U.S. Fish and Wildlife Service and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller, and Assistant United States Attorney Joseph Kosky.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to racketeering conspiracy involving murder, attempted murder, and armed robbery. Defendant admitted responsibility for murdering an innocent bystander, attempted murder of rival gang member and armed robbery.
Hector Ramires, a/k/a “Cuervo,” 24, a Honduran national formerly of Chelsea, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Jan. 19, 2018. According to the terms of the plea agreement, the parties will jointly recommend a sentence of 27 years in prison.
Ramires was a member of MS-13’s Enfermos Criminales Salvatrucha (ECS) clique, which operated in Chelsea and other parts of Massachusetts. On Oct. 18, 2014, Ramires and Bryan Galicia Barillas a/k/a “Chucky,” a fellow member of MS-13’s ECS clique, were walking the streets of Chelsea when they encountered a group of rival gang members. Ramires, who was armed, shot at one of the gang rivals and missed, killing a woman who was an innocent bystander who was looking out a nearby window of a room she shared with her three children. Barillas was also charged and previously pleaded guilty to, among other things, providing Ramires with the gun.
Ramires also accepted responsibility for his role in a March 28, 2014, attempted murder of a rival gang member in Chelsea, and an April 9, 2014, armed robbery in Chelsea.
After a three-year investigation, Ramires was one of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in Massachusetts.
Ramires is the 22nd defendant to plead guilty in this case and will subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; Somerville Police Chief David Fallon; and Herndon (Va.) Police Chief Maggie A. DeBoard made the announcement.
The details contained in the charging documents are allegations. All remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Los Angeles Man Found Guilty of Federal Narcotics Conspiracy Involving the Opioid AcetylfentanylRead the Press Release
LOS ANGELES – A resident of downtown Los Angeles was found guilty this afternoon of federal drug trafficking charges for participating in a conspiracy that imported acetylfentanyl, a drug very similar to fentanyl, which is a powerful and highly addictive opioid. Acetylfentanyl, which is five times more potent that heroin, is not approved for any use in the United States.
Christopher Bowen, 31, was found guilty by a federal jury of conspiracy to manufacture, possess with intent to distribute, and distribute four narcotics, specifically: acetylfentanyl; a-pyrrolidinovalerophenone, a so-called designer drug also known as “PVP” that is sometimes used in “bath salts”; ecstasy (MDMA); and alprazolam, which is sold under the brand name Xanax.
Bowen was also found guilty of possession of acetylfentanyl with intent to distribute.
The evidence presented during a two-day trial in United States District Court showed that Bowen and other members of the drug organization imported acetylfentanyl from China, which they then used to produce homemade pills designed to look like pharmaceutical products. Bowen and his co-conspirators then distributed the pills in bulk across the nation.
The drug organization also obtained pill presses from China that were used illegally to make tablets in labs in a storage unit in Long Beach and a house in Baldwin Park. During the investigation, DEA agents seized more than 9 kilograms of acetylfentanyl from the organization.
Bowen is scheduled to be sentenced by United States District Judge S. James Otero on January 22, 2018. At the time of sentencing, Bowen will face a statutory maximum penalty of 20 years in federal prison for each of the two counts.
The jury that convicted Bowen also acquitted him of possession with intent to distribute acetylfentanyl that was found in his apartment.
The leader of the organization – Gary Resnik, 32, of Long Beach – pleaded guilty in August and is scheduled to be sentenced by Judge Otero on February 26, 2018.
This case was investigated by the special agents with the Drug Enforcement Administration.
This case is being prosecuted by Assistant United States Attorneys Michael G. Freedman and David Ryan of the General Crimes Section.
Lloyd Aguon Sentenced to Prison in Firearm CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant LLOYD JOHN AGUON, age 41, from Umatac, Guam, was sentenced on October 25, 2017 in District Court to a 18-month term of imprisonment with credit for time served, to be followed by 3 years of supervised release, and 50 hours of community service, for being a Felon in Possession of Firearms and Ammunition. The Court also ordered Defendant LLOYD JOHN AGUON to pay a mandatory $100 assessment fee.
On April 19, 2017, Defendant LLOYD JOHN AGUON entered a guilty plea to Count 1 of an Indictment, charging him with being a Felon In Possession of Firearms and Ammunition, in violation of Title 18, United States Code § 922(g)(1). Defendant had been previously convicted in the Superior Court of Guam for Family Violence (As a Third Degree Felony and Terrorizing (As a Third Degree Felony). It is unlawful for individuals previously convicted of a crime punishable by imprisonment for a term exceeding one year to possess any firearm or ammunition, which has been transported in interstate or foreign commerce. Upon assisting a team of Guam Marshals and Guam Probation with a local arrest warrant for Defendant LLOYD JOHN AGUON in September 2015, the Federal Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) investigation discovered two 12 Gauge Shotguns and 14 rounds of ammunition. ATF’s further investigation revealed that one of the firearms, a 12 Gauge Remington Shot Gun, had been previously reported stolen to the Guam Police Department.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.
Leader of Major Heroin and Cocaine Drug Rings Pleads Guilty to ConspiracyRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that Aaron Clark, 36, of Little Rock, has pleaded guilty to his involvement in a major conspiracy to distribute heroin.
Clark, also known as “Black,” entered his guilty plea today before United States District Court Judge James M. Moody, Jr., who will sentence Clark at a later date.
A federal grand jury indicted Clark on May 5, 2017, in a 33-defendant, 67-count indictment involving heroin and cocaine conspiracies, both headed by Clark. The indictment resulted in the arrests of dozens of accused drug and gun dealers in central Arkansas.
In late 2015, the FBI and North Little Rock Police Department began investigating the drug-trafficking activities of certain North Little Rock gangs, including the “Self Made Gangsters” (SMG) street gang. Investigators soon learned the gangs’ main source of supply of drugs came from individuals in Little Rock.
Between July and October 2016, NLRPD conducted four controlled purchases of heroin from Clark. Using wiretaps and other sources, agents then confirmed that Clark was purchasing kilogram quantities of heroin and cocaine from a supplier in Texas. On Tuesday, Clark admitted to selling this heroin in ounce and gram quantities as well as larger multi-ounce and kilogram quantities.
In November 2016 agents executed a search warrant at Clark’s west Little Rock residence. Agents seized more than $100,000 cash and jewelry, 178 grams of heroin, a marijuana grow operation, and six firearms. In May 2017, another search warrant at Clark’s new residence revealed over $55,000 cash, marijuana, drug paraphernalia, and 1.7 kilograms of methamphetamine labeled “ice” and stored in an oven.
Throughout the investigation, agents seized more than two kilograms of cocaine, one kilogram of heroin, more than five pounds of methamphetamine, one pound of crack cocaine, and eight ounces of fentanyl. Officers seized these drugs during more than 25 controlled purchases, as well as during the execution of multiple search warrants. In addition, agents seized 25 guns and approximately $241,000 of drug proceeds.
The maximum punishment Clark faces for conspiracy to distribute heroin is not less than 10 years’ imprisonment, not more than life, a fine not to exceed $10,000,000, and not less than five years of supervised release.
The primary investigation was conducted by FBI’s Met Rock Task Force, in coordination with the Little Rock and North Little Rock Police Departments. Assistant United States Attorney Benecia Moore is the lead prosecutor on the indictment.
# # #Lackawanna County Man Sentenced to 12 Years in Prison for Receiving and Distributing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael J. Costello, age 42, of Archbald, Pennsylvania, was sentenced on October 25, 2017, by U.S. District Court Judge Malachy E. Mannion to 12 years in prison for receiving and distributing child pornography in 2014.
According to United States Attorney Bruce D. Brandler, Costello previously admitted to using a computer to obtain and trade images of child pornography during January through August 2014. Costello’s computer contained more than 1,100 images and more than 300 videos of child pornography.
Judge Mannion also ordered Costello to serve 10 years on supervised release following his prison sentence, and to pay restitution of $1,100. Costello must also undergo sex offender treatment and comply with sex offender notification and registration requirements.
The charge against Costello resulted from an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorneys Francis P. Sempa and Evan J. Gotlob prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Keshena Woman Indicted for Motor Vehicle Theft on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, U.S. Attorney for the Eastern District of Wisconsin, announced that on October 24, 2017, a federal grand jury returned a one-count indictment against a woman who allegedly stole a vehicle from a residence on the Menominee Indian Reservation. The indictment named Danielle R. Kaquatosh (age: 34), of Keshena, which is on the Menominee Indian Reservation in Wisconsin. The indictment charges Kaquatosh with Theft in violation of Title 18 United States Code §§ 661 and 1152. Kaquatosh faces a maximum sentence of up to 5 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. The charge also carries a $100 special assessment.
According to the indictment, on or about September 23, 2017, the defendant took a motor vehicle from a location in the Menominee Indian Reservation. The vehicle and defendant were later located in New York City.
The case was investigated by the Menominee Tribal Police Department, Menominee County Sheriff’s Office, New York Police Department, New York County District Attorney’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Illegal Immigrant Pleads Guilty to Possessing Child PornographyRead the Press Release
Gulfport, Miss. – Gustavo Millan-Arizmendi, 29, a citizen of Mexico, pled guilty on Wednesday, October 25, 2017, before U.S. District Court Judge Sul Ozerden, to possession of child pornography, announced U.S. Attorney Mike Hurst.
On May 29, 2017, Millan-Arizmendi was pulled over by U.S. Customs and Border Patrol on Interstate 10 and was found to be in the United States illegally. After his arrest, agents discovered that Millan-Arizmendi was in possession of child pornography.
"Child pornography is a great menace to our society, harming our youth and robbing them of their childhood. It’s even more troubling when it is being furthered by individuals illegally in our country. Those who perpetuate these types of heinous crimes will be prosecuted to the fullest extent of the law," said U.S. Attorney Mike Hurst.
Millan-Arizmendi will be sentenced on February 9, 2018, at 9:30 a.m. before U.S. District Judge Sul Ozerden, and faces a maximum sentence of 20 years in prison and a $250,000 fine.
This case was investigated by U.S. Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Andrea Jones.
Illegal Alien Sentenced to More than a Year in Prison after Returning to the United States Following DeportationRead the Press Release
A Mexican man who had previously been deported following federal convictions for unlawful use of identification documents and misuse of a Social Security number was sentenced October 25, 2017, to 15 months in federal prison.
Adan Vazquez-Santos, age 34, a citizen of Mexico who had been living in Hamilton County, Iowa, received the prison term after an August 3, 2017, guilty plea to one count of illegal reentry of a removed alien after a felony conviction.
At the guilty plea, Vazquez-Santos admitted he illegally reentered the United States without permission after having been deported from the United States in February 2015. Prior to his deportation, Vazquez-Santos was convicted in January 2015 in the United States District Court for the Northern District of Iowa on one count of unlawful use of identification documents and one count of misuse of a Social Security number, both felony offenses. Vazquez-Santos had also been convicted of operating a motor vehicle while intoxicated in both Hamilton County, Iowa, in 2009, and in Webster County, Iowa, in 2012. Vazquez-Santos most recently came to the attention of immigration officials in April 2017 following his arrest in Hamilton County, Iowa, for willful injury and domestic abuse assault.
Vazquez-Santos was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Vazquez-Santos was sentenced to 15 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. This sentence is to be served consecutively to a 14-month sentence imposed in June 2017 for violating the terms of his supervised release on the 2015 federal convictions for unlawful use of identification documents and misuse of a Social Security number.
Vazquez-Santos is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3029.
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Identity Theft Ring Indicted for Credit Card FraudRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging six people with conspiring to commit bank and wire fraud, conspiring to traffic in contraband cigarettes, aggravated identity theft, and access device fraud.
According to allegations in the indictment, Travon Williams, 33, of Portsmouth, Rodriguez Norman, 29, of Temple Hills, Maryland, Nathaneal Williams, 25, of Manassas, and Marvin Mitchell, 33, Gentle Grant Tyson, III, 32, and Ebony Coe, 29, all of Virginia Beach, purchased stolen financial information including credit and debit card numbers from black market websites. The conspirators encoded that stolen information, including information belonging to real people, onto forged credit cards that they used to purchase things of value, including cartons of cigarettes. They then resold over 10,000 of those cigarettes to black market resellers for $47 per carton.
According to the indictment, laptops recovered from the conspirators included files of thousands of credit card numbers, including 2,000 numbers recovered from Travon Williams’ laptop and over 10,000 numbers recovered from Nathaneal Williams’ laptop.
Each defendant has been charged with conspiracy to commit bank and wire fraud, conspiracy to traffic in contraband cigarettes, and at least one count of aggravated identity theft. Additionally, defendants Travon Williams, Nathaneal Williams, and Marvin Mitchell have been charged with access device fraud. The conspiracy to commit bank and wire fraud carries a maximum penalty of 30 years in prison, and the aggravated identity theft charges carry a mandatory term of two years in prison, if convicted. 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 Andrew W. Vale, Assistant Director of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Maya D. Song, Whitney Dougherty Russell and Katherine E. Rumbaugh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-254.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Houston Business Owner Pleads Guilty to $840,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the owner of a Houston, Texas business pleaded guilty in federal court to his role in an $840,000 scheme to defraud J.E. Dunn Construction Company.
Brian A. Newkirk, 49, of Houston, pleaded guilty before U.S. District Judge Stephen R. Bough to one count of wire fraud.
Co-defendant John L. Kirwin, 46, of Lee’s Summit, Mo., was employed by J.E. Dunn Construction Company as an internal recruiter from August 2013 through April 13, 2016. His duties included finding qualified candidates for job vacancies. Kirwin worked with outside employment recruitment agencies to locate and employ J.E. Dunn personnel for construction projects across the country. If the recruit was actually hired, J.E. Dunn paid a fee to the outside employment recruitment agencies.
Kirwin hired three firms, including Search Group International (owned by Newkirk) and two firms owned by co-defendant Debi K. Jordan, 53, of Tulsa, Okla. – Recruitegist and Sourcegist – to locate suitable employees for J.E. Dunn. Kirwin was salaried and did not receive commission for recruiting new employees; his employment contract prohibited him from receiving any benefits from outside vendors.
Beginning shortly after his employment in 2013, Kirwin operated a scheme in which he received kickbacks from Newkirk and Jordan by submitting fraudulent invoices to J.E. Dunn. The invoices from Newkirk and Jordan included highly inflated amounts or they referenced employees never hired by J.E. Dunn. When J.E. Dunn paid the recruitment companies, they divided the proceeds from the fraudulent invoices with Kirwin.
Kirwin has pleaded guilty to one count of wire fraud and one count of mail fraud. Jordan has pleaded guilty to one count of mail fraud.
The government believes the loss amount to J.E. Dunn was approximately $840,000. Under the terms of today’s plea agreement, Newkirk must forfeit to the government any proceeds he received from the fraud scheme. The government believes the money judgment should be for $182,165.
Under federal statutes, Newkirk is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Postal Inspection Service, Office of Inspector General.
Houma Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DARREKA BOYKINS, age 41, of Houma, pled guilty yesterday to an Indictment charging him with violating the Federal Controlled Substances Act.
According to the court records, BOYKINS conspired to possess with the intent to distribute and to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a quantity of a mixture or substance containing a detectable amount of cocaine, and a quantity of a mixture or substance containing a detectable amount of methamphetamine. BOYKINS admitted to being captured on a Title III wire intercept.
BOYKINS faces a mandatory minimum term of imprisonment of at least 10 years because of a prior drug offense, up to a maximum of life, a fine of up to $8,000,000, and eight years of supervised release following any term of imprisonment. U.S. District Judge Sarah S. Vance set sentencing on February 7, 2018.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA) in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Heroin Trafficker Sentenced to Three Years in PrisonRead the Press Release
SAN FRANCISCO – Mariano Ramos-Lopez was sentenced today to 36 months in prison for possessing with the intent to distribute nearly a kilogram of heroin, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable William H. Orrick, U.S. District Judge.
According to his plea agreement, Ramos-Lopez, 37, of Porterville, Calif., admitted that in December of 2016, he offered to sell one kilogram of heroin to an individual and then traveled from Porterville to Foster City to make the sale. Ramos-Lopez acknowledged he arrived at a hotel parking lot in Foster City in possession of 946.07 grams of heroin. Ramos-Lopez was arrested after retrieving the drugs from a hidden compartment of his pickup truck.
On January 31, 2017, a federal grand jury indicted Ramos-Lopez charging him with one count of possession intent to distribute heroin, in violation of 21 U.S.C. § 841(a)(1). On July 10, 2017, Ramos-Lopez pleaded guilty to the charge.
In addition to the prison term, Judge Orrick ordered Ramos-Lopez to serve a five-year period of supervised release. Ramos-Lopez is in custody and will begin serving the sentence immediately.
Assistant U.S. Attorney Nikhil Bhagat is prosecuting the case with assistance from Ana Guerra. The prosecution is the result of an investigation by the DEA, the San Mateo County Narcotics Task Force, and the Coast Guard Investigative Service.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national charged with an immigration crime pleaded guilty and was sentenced today in federal court in Boston.
Gilberto Chavez-Mendez, 24, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Richard G. Stearns sentenced Chavez-Mendez to time served. Chavez-Mendez will be subject to deportation.
Chavez-Mendez was previously deported on May 23, 2012. On Aug. 28, 2017, law enforcement encountered Chavez-Mendez in Lynn and determined him to be illegally present in the United States.
Chavez-Mendez faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. 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 Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national was indicted today in Worcester on a federal immigration charge.
Enri Nemias Vega, 31, was indicted on one count of unlawful reentry of a deported alien. Vega was previously deported in 2012. On May 20, 2017, Vega was encountered by law enforcement in Sutton and determined to be illegally present in the United States.
Vega faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of up to $250,000 and will be subject to deportation upon completion of his sentence. 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 Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Greg A. Friedholm 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.
Gary Man Entered A Guilty Plea of Conspiracy to RacketeeringRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that William Salazar, age 41, of Gary, Indiana entered a guilty plea of conspiracy to participate in racketeering activity before Judge Phillip Simon.
According to documents in this case, Salazar entered a guilty plea for conspiracy to participate in racketeering activity for his role and participation in the Latin Kings street gang. Salazar has been in custody since his arrest on August 4, 2016.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office also has provided assistance. The Latin King case is being prosecuted by Assistant U.S. Attorneys David J. Nozick, Dean Lanter and Abizer Zanzi of the Northern District of Indiana.
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Fulton Man Charged with Illegally Manufacturing a Firearm Silencer Following Court HearingRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man was charged in federal court today with illegally manufacturing a firearm suppressor, or “silencer,” following his arrest for harassing a state worker involved with him losing custody of his children.
Nathaniel Craig Carroll, 37, of Fulton, was charged in the U.S. District Court in Jefferson City, Mo., with illegally manufacturing a firearm suppressor. Carroll, who will have an initial court appearance at 1:30 p.m. today, remains in federal custody pending a detention hearing on Tuesday, Oct. 31, 2017.
According to an affidavit filed in support of today’s federal criminal complaint, Carroll manufactured a suppressor (or “silencer”) following his recent arrest for harassing a state children’s division employee who is involved in a case where Carroll’s children were taken from the home.
On Tuesday, Oct. 24, 2017, a judge in Callaway County determined that the case was going to move toward the permanent removal of the children from Carroll’s custody, which upset him a great deal. Immediately after the court hearing, the affidavit says, Carroll was seen at the Westlake Ace Hardware store. A Calloway County sheriff’s deputy was concerned that Carroll was intent on hurting himself because of what had happened at the hearing earlier, and therefore followed up with employees at the hardware store to determine what Carroll was purchasing.
According to the affidavit, Carroll purchased several items that could be used to manufacture a suppressor. Carroll allegedly made a statement to the store clerk about needing items to build a suppressor. Carroll does not have a federal license to manufacture a suppressor.
Law enforcement officers executed a search warrant at Carroll’s residence at approximately 9 p.m. on Wednesday, Oct. 25, 2017. They found the suppressor on a shelf in the garage next to a baggie of suspected marijuana. Another suspected suppressor was found in a gun safe in the residence along with a rifle that was threaded to fit the suppressor that was next to it in the safe. This suspected suppressor appears to have been made from oil filters covered in an adhesive tape, a common method used for homemade “silencers.” Items were also found in the garage that were consistent with parts used to build suppressors.
In addition to the suppressors, officers found 13 firearms inside the residence as well as over 1,000 rounds of assorted ammunition.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Callaway County, Mo., Sheriff’s Department, the MUSTANG Drug Task Force and the Missouri State Highway Patrol.
Fugitive Captured by U.S. Marshals Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A fugitive captured by the U.S. Marshals at a Suffolk hotel on January 6 was sentenced today to eight years in prison.
According to the statement of facts filed with the plea agreement, the U.S. Marshals captured convicted felon David Webb, 40, of Georgia, at a hotel in Suffolk after being on the run for multiple outstanding arrest warrants issued in Dekalb and Chatham County, Georgia. During his time as a fugitive, Webb evaded or eluded police on at least three occasions, including one instance when he fled from police by jumping out of the back window of a hotel and hiding in an alligator-infested swamp.
According to court documents, prior to his capture, Webb was able to evade law enforcement through his use of 15 various aliases and 20 false identity documents. When U.S. Marshals arrested the defendant, he was in possession of more than a dozen driver’s licenses bearing his image but associated with different names. These identification documents included driver’s licenses purportedly issued by the states of Texas, Nebraska, Illinois, Connecticut, Tennessee, Kentucky, Georgia, and the District of Columbia. Webb was also in possession of five social security cards bearing names other than his own, a U.S. Department of Veterans Affairs identification card, and a U.S. Military Common Access Card bearing Webb’s picture and claiming the rank of Sergeant in the Army. At the time of his arrest, U.S. Marshals also recovered methamphetamine, $7,300 in cash, a digital scale, drug packaging materials, ammunition, and three firearms, one of which had an obliterated serial number.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Arron J. Graves, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Robert Mathieson, U.S. Marshal for the Eastern District of Virginia, and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Kevin Comstock prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching Case No. 2:17-cr-15.
Four Defendants Sentenced to A Total of 64 Years' Imprisonment for Sex Trafficking Two 14-Year-Old Girls in Battle CreekRead the Press Release
GRAND RAPIDS, MICHIGAN — James Smith, 28, of Battle Creek, Michigan, received a 20 year sentence in federal prison for sex trafficking a minor, Acting U.S. Attorney Andrew Birge announced today. Smith is the fourth defendant sentenced in this case, which arose out of the sex trafficking of two local 14-year-old girls in Battle Creek in June of 2016. The four defendants received a total sentence of 64 years’ imprisonment, which, in addition to Smith’s sentence, breaks down as follows:
- 20 Years – William Edwards, 24, recruited both 14-year old victims into sex trafficking;
- 20 Years – Dakota Walters, 25, coached and helped Edwards with sex trafficking the minors;
- 4 Years – Michael Noble, 22, knowingly drove one of the victims to several places for commercial sex.
In June of 2016, Edwards recruited the first 14-year-old victim by preying on her after she ran away from home and needed money. Edwards told her he knew how to help her make money and took her to Walters’ house, where the two men created an online advertisement for sex with the minor. They told her to act 18, despite knowing she was only 14. They also gave her cocaine, telling her it would help her stay up longer to make more money. He took half of all the money she made. When one client did not pay the minor, Edwards grabbed her neck and threw her against a wall. That girl eventually fled from Edwards.
After the first minor left, Edwards turned to another 14-year-old runaway, whom he eventually handed off to Smith. Smith forced the girl to engage in commercial sex for about a week. Like Edwards, Smith provided the girl with cocaine and recruited Noble, who provided Smith and the minor with cocaine in exchange for driving her to meet johns. Smith carried a gun, forced the girl to have sex with him, and took away her phone so she could not contact her family for approximately one week while trapped in a Battle Creek motel with Smith, Noble, and an 18-year-old female. The minor finally escaped when she located her phone while the others slept, texted her aunt, and ran.
"The Western District of Michigan has seen this pattern again and again, where grown men—and sometimes women—use drugs, money, and various promises to lure vulnerable teens into commercial sex for the adults’ own financial gain," said Andrew Birge, Acting U.S. Attorney. "The manipulation and exploitation trap the victims, who are often in desperate need of adult attention, financial security, and basic necessities."
"Today’s sentencing effectively ends a heinous sex trafficking scheme that exploited two underage girls," said Steve Francis, HSI Detroit special agent in charge. "Using our victim-centered approach, HSI can now focus on ensuring the survivors of these depraved acts continue to get the help they need to rebuild their lives."
This case was the result of a collaborative investigative effort between Homeland Security Investigations and the Battle Creek Police Department. Assistant U.S. Attorneys Tessa K. Hessmiller and Davin Reust prosecuted the cases. For more information about Project Safe Childhood and the investigation and prosecution of sex trafficking in the Western District of Michigan, visit https://www.justice.gov/usao-wdmi/project-safe-childhood.
END
Founder and Owner of Pharmaceutical Company Insys Arrested and Charged with RacketeeringRead the Press Release
The founder and majority owner of Insys Therapeutics Inc., was arrested today and charged with leading a nationwide conspiracy to profit by using bribes and fraud to cause the illegal distribution of a Fentanyl spray intended for cancer patients experiencing breakthrough pain.
"More than 20,000 Americans died of synthetic opioid overdoses last year, and millions are addicted to opioids. And yet some medical professionals would rather take advantage of the addicts than try to help them," said Attorney General Jeff Sessions. "This Justice Department will not tolerate this. We will hold accountable anyone – from street dealers to corporate executives -- who illegally contributes to this nationwide epidemic. And under the leadership of President Trump, we are fully committed to defeating this threat to the American people.”
John N. Kapoor, 74, of Phoenix, Ariz., a current member of the Board of Directors of Insys, was arrested this morning in Arizona and charged with RICO conspiracy, as well as other felonies, including conspiracy to commit mail and wire fraud and conspiracy to violate the Anti-Kickback Law. Kapoor, the former Executive Chairman of the Board and CEO of Insys, will appear in federal court in Phoenix today. He will appear in U.S. District Court in Boston at a later date.
The superseding indictment, unsealed today in Boston, also includes additional allegations against several former Insys executives and managers who were initially indicted in December 2016.
The superseding indictment charges that Kapoor; Michael L. Babich, 40, of Scottsdale, Ariz., former CEO and President of the company; Alec Burlakoff, 42, of Charlotte, N.C., former Vice President of Sales; Richard M. Simon, 46, of Seal Beach, Calif., former National Director of Sales; former Regional Sales Directors Sunrise Lee, 36, of Bryant City, Mich., and Joseph A. Rowan, 43, of Panama City, Fla.; and former Vice President of Managed Markets, Michael J. Gurry, 53, of Scottsdale, Ariz., conspired to bribe practitioners in various states, many of whom operated pain clinics, in order to get them to prescribe a fentanyl-based pain medication. The medication, called “Subsys,” is a powerful narcotic intended to treat cancer patients suffering intense breakthrough pain. In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer.
The indictment also alleges that Kapoor and the six former executives conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients. They achieved this goal by setting up the “reimbursement unit,” which was dedicated to obtaining prior authorization directly from insurers and pharmacy benefit managers.
“In the midst of a nationwide opioid epidemic that has reached crisis proportions, Mr. Kapoor and his company stand accused of bribing doctors to overprescribe a potent opioid and committing fraud on insurance companies solely for profit,” said Acting United States Attorney William D. Weinreb. “Today's arrest and charges reflect our ongoing efforts to attack the opioid crisis from all angles. We must hold the industry and its leadership accountable - just as we would the cartels or a street-level drug dealer.”
“As alleged, these executives created a corporate culture at Insys that utilized deception and bribery as an acceptable business practice, deceiving patients, and conspiring with doctors and insurers,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The allegations of selling a highly addictive opioid cancer pain drug to patients who did not have cancer, make them no better than street-level drug dealers. Today's charges mark an important step in holding pharmaceutical executives responsible for their part in the opioid crisis. The FBI will vigorously investigate corrupt organizations with business practices that promote fraud with a total disregard for patient safety.”
“These Insys executives allegedly fueled the opioid epidemic by paying doctors to needlessly prescribe an extremely dangerous and addictive form of fentanyl,” said Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Corporate executives intent on illegally driving up profits need to be aware they are now squarely in the sights of law enforcement.”
“As alleged, Insys executives improperly influenced health care providers to prescribe a powerful opioid for patients who did not need it, and without complying with FDA requirements, thus putting patients at risk and contributing to the current opioid crisis,” said Mark A. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to work with our law enforcement partners to pursue and bring to justice those who threaten the public health.”
“Pharmaceutical companies whose products include controlled medications that can lead to addiction and overdose have a special obligation to operate in a trustworthy, transparent manner, because their customers’ health and safety and, indeed, very lives depend on it,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA pledges to work with our law enforcement and regulatory partners nationwide to ensure that rules and regulations under the Controlled Substances Act are followed.”
“Today’s arrest is the result of a joint effort to identify, investigate and prosecute individuals who engage in fraudulent activity and endanger patient health,” stated Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS will continue to work with the U.S. Attorney’s Office, District of Massachusetts, and our law enforcement partners, to protect U.S. military members, retirees and their dependents and the integrity of TRICARE, the Defense Department’s healthcare system.”
“As alleged, John Kapoor and other top executives committed fraud, placing profit before patient safety, to sell a highly potent and addictive opioid. EBSA will take every opportunity to work collaboratively with our law enforcement partners in these important investigations to protect participants in private sector health plans and contribute in fighting the opioid epidemic,” said Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“Once again, the United States Postal Inspection Service is fully committed to protecting our nation’s mail system from criminal misuse,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service. “We are proud to work alongside our law enforcement partners to dismantle high level prescription drug practices which directly contribute to the opioid abuse epidemic. This investigation highlights our commitment to defending our mail system from illegal misuse and ensuring public trust in the mail.”
“The U.S. Department of Veterans Affairs, Office of Inspector General will continue to aggressively investigate those that attempt to fraudulently impact programs designed to benefit our veterans and their families,” said Donna L. Neves, Special Agent in Charge of the VA OIG Northeast Field Office.
The charges of conspiracy to commit RICO and conspiracy to commit mail and wire fraud each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. The charges of conspiracy to violate the Anti-Kickback Law provide for a sentence of no greater than five years in prison, three years of supervised release and a $25,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by a team that included the FBI; HHS-OIG; FDA Office of Criminal Investigations; the Defense Criminal Investigative Service; the Drug Enforcement Administration; the Department of Labor, Employee Benefits Security Administration; the Office of Personnel Management; the U.S. Postal Inspection Service; the U.S. Postal Service Office of Inspector General; and the Department of Veterans Affairs. The U.S. Attorney’s Office would like to acknowledge the cooperation and assistance of the U.S. Attorney’s Offices around the country engaged in parallel investigations, including the District of Connecticut, Eastern District of Michigan, Southern District of Alabama, Southern District of New York, District of Rhode Island, and the District of New Hampshire. The efforts of the Central District of California and the Justice Department’s Civil Fraud Section of the Department of Justice are also greatly appreciated.
Assistant U.S. Attorneys K. Nathaniel Yeager, Chief of Weinreb’s Health Care Fraud Unit, and Susan M. Poswistilo, of Weinreb’s Civil Division, are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.Founder and Owner of Pharmaceutical Company Insys Arrested and Charged with RacketeeringRead the Press Release
BOSTON – The founder and majority owner of Insys Therapeutics Inc., was arrested today and charged with leading a nationwide conspiracy to profit by using bribes and fraud to cause the illegal distribution of a Fentanyl spray intended for cancer patients experiencing breakthrough pain.
John N. Kapoor, 74, of Phoenix, Ariz., a current member of the Board of Directors of Insys, was arrested this morning in Arizona and charged with RICO conspiracy, as well as other felonies, including conspiracy to commit mail and wire fraud and conspiracy to violate the Anti-Kickback Law. Kapoor, the former Executive Chairman of the Board and CEO of Insys, will appear in federal court in Phoenix today. He will appear in U.S. District Court in Boston at a later date.
The superseding indictment, unsealed today in Boston, also includes additional allegations against several former Insys executives and managers who were initially indicted in December 2016.
The superseding indictment charges that Kapoor; Michael L. Babich, 40, of Scottsdale, Ariz., former CEO and President of the company; Alec Burlakoff, 42, of Charlotte, N.C., former Vice President of Sales; Richard M. Simon, 46, of Seal Beach, Calif., former National Director of Sales; former Regional Sales Directors Sunrise Lee, 36, of Bryant City, Mich., and Joseph A. Rowan, 43, of Panama City, Fla.; and former Vice President of Managed Markets, Michael J. Gurry, 53, of Scottsdale, Ariz., conspired to bribe practitioners in various states, many of whom operated pain clinics, in order to get them to prescribe a fentanyl-based pain medication. The medication, called “Subsys,” is a powerful narcotic intended to treat cancer patients suffering intense breakthrough pain. In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer.
The indictment also alleges that Kapoor and the six former executives conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients. They achieved this goal by setting up the “reimbursement unit,” which was dedicated to obtaining prior authorization directly from insurers and pharmacy benefit managers.
“In the midst of a nationwide opioid epidemic that has reached crisis proportions, Mr. Kapoor and his company stand accused of bribing doctors to overprescribe a potent opioid and committing fraud on insurance companies solely for profit,” said Acting United States Attorney William D. Weinreb. “Today's arrest and charges reflect our ongoing efforts to attack the opioid crisis from all angles. We must hold the industry and its leadership accountable - just as we would the cartels or a street-level drug dealer.”
“As alleged, these executives created a corporate culture at Insys that utilized deception and bribery as an acceptable business practice, deceiving patients, and conspiring with doctors and insurers,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The allegations of selling a highly addictive opioid cancer pain drug to patients who did not have cancer, make them no better than street-level drug dealers. Today's charges mark an important step in holding pharmaceutical executives responsible for their part in the opioid crisis. The FBI will vigorously investigate corrupt organizations with business practices that promote fraud with a total disregard for patient safety.”
“These Insys executives allegedly fueled the opioid epidemic by paying doctors to needlessly prescribe an extremely dangerous and addictive form of fentanyl,” said Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Corporate executives intent on illegally driving up profits need to be aware they are now squarely in the sights of law enforcement.”
“As alleged, Insys executives improperly influenced health care providers to prescribe a powerful opioid for patients who did not need it, and without complying with FDA requirements, thus putting patients at risk and contributing to the current opioid crisis,” said Mark A. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to work with our law enforcement partners to pursue and bring to justice those who threaten the public health.”
“Pharmaceutical companies whose products include controlled medications that can lead to addiction and overdose have a special obligation to operate in a trustworthy, transparent manner, because their customers’ health and safety and, indeed, very lives depend on it,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA pledges to work with our law enforcement and regulatory partners nationwide to ensure that rules and regulations under the Controlled Substances Act are followed.”
“Today’s arrest is the result of a joint effort to identify, investigate and prosecute individuals who engage in fraudulent activity and endanger patient health,” stated Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS will continue to work with the U.S. Attorney’s Office, District of Massachusetts, and our law enforcement partners, to protect U.S. military members, retirees and their dependents and the integrity of TRICARE, the Defense Department’s healthcare system.”
“As alleged, John Kapoor and other top executives committed fraud, placing profit before patient safety, to sell a highly potent and addictive opioid. EBSA will take every opportunity to work collaboratively with our law enforcement partners in these important investigations to protect participants in private sector health plans and contribute in fighting the opioid epidemic,” said Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“Once again, the United States Postal Inspection Service is fully committed to protecting our nation’s mail system from criminal misuse,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service. “We are proud to work alongside our law enforcement partners to dismantle high level prescription drug practices which directly contribute to the opioid abuse epidemic. This investigation highlights our commitment to defending our mail system from illegal misuse and ensuring public trust in the mail.”
"We are gratified to have contributed to this investigation and applaud the exceptional work of this investigative team for both protecting patient safety and program costs," said Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office. "Along with our law enforcement partners, the USPSOIG will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service."
“The U.S. Department of Veterans Affairs, Office of Inspector General will continue to aggressively investigate those that attempt to fraudulently impact programs designed to benefit our veterans and their families,” said Donna L. Neves, Special Agent in Charge of the VA OIG Northeast Field Office.
The charges of conspiracy to commit RICO and conspiracy to commit mail and wire fraud each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. The charges of conspiracy to violate the Anti-Kickback Law provide for a sentence of no greater than five years in prison, three years of supervised release and a $25,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by a team that included the FBI; HHS-OIG; FDA Office of Criminal Investigations; the Defense Criminal Investigative Service; the Drug Enforcement Administration; the Department of Labor, Employee Benefits Security Administration; the Office of Personnel Management; the U.S. Postal Inspection Service; the U.S. Postal Service Office of Inspector General; and the Department of Veterans Affairs. The U.S. Attorney’s Office would like to acknowledge the cooperation and assistance of the U.S. Attorney’s Offices around the country engaged in parallel investigations, including the District of Connecticut, Eastern District of Michigan, Southern District of Alabama, Southern District of New York, District of Rhode Island, and the District of New Hampshire. The efforts of the Central District of California and the Justice Department’s Civil Fraud Section of the Department of Justice are also greatly appreciated.
Assistant U.S. Attorneys K. Nathaniel Yeager, Chief of Weinreb’s Health Care Fraud Unit, and Susan M. Poswistilo, of Weinreb’s Civil Division, are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Desoto Parish District Attorney’s Office employee indicted for stealing feesRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a federal grand jury indicted a Converse woman for seven counts of mail fraud.
Melanie Barber, 35, of Converse, La., was employed by the Desoto Parish District Attorney’s office from April 2002 until February 2014. From at least 2004 to 2014, she negotiated money orders made payable to and intended for the Desoto Parish District Attorney’s Office. The money orders were collected by worthless checks and diversion fees but negotiated by Barber at several local banks and retailers for her personal use.
Barber faces up to 20 years in prison, three years of supervised release and a $250,000 fine per count. She also faces forfeiture.
The FBI and the Mansfield Police Department conducted the investigation. Assistant U.S. Attorney Mike O’Mara is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Connecticut Resident Pleads Guilty to Defrauding Lenders of More Than $3 MillionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MOHSEN YOUSSEF, 27, formerly of Vernon, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to fraud offenses relating to a scheme to secure more than $3 million in funding for his purported pita manufacturing business.
According to court documents and statements made in court, beginning in approximately October 2011, YOUSSEF defrauded various banks, a corporate leasing and vendor finance company, and the Connecticut Department of Economic and Community Development, in a scheme to secure funding for equipment purchases for his company, Amoun Pita and Distribution LLC (“Amoun Pita”), and other companies he controlled. According to its business plan, Amoun Pita was a bakery that manufactured pocket pita bread from a production facility in South Windsor, Connecticut.
As part of the scheme, YOUSSEF provided false information when applying for loans, lines of credit, lease financing and state grants, purportedly to finance the acquisition of new pita manufacturing equipment, other machinery and inventory related to his businesses. The false information included documentation that inflated the assets and income of YOUSSEF and his companies, as well as fraudulently created invoices purporting to document equipment purchases that, in fact, never occurred. In order to induce victims to rely on the invoices he provided, YOUSSEF created marketing materials and websites for non-existent vendors.
YOUSSEF caused more than $3 million in losses through this scheme.
YOUSSEF pleaded guilty to one count of bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of mail fraud, which carries a maximum term of imprisonment of 20 years.
YOUSEEF has agreed to pay the victim lenders restitution in the amount of $3,209,603.17.
Judge Arterton scheduled sentencing for January 18, 2018.
YOUSSEF, who has dual U.S and Egyptian citizenship, moved to Canada in 2014. On Oct 22, 2015, a grand jury returned a 14-count indictment charging YOUSSEF with various fraud offenses. He was arrested in Canada on March 1, 2017, and has been detained since his arrest.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the Quebec Provincial Police RELEX Unit, Montreal Police Service and Royal Canadian Mounted Police. The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Avi M. Perry.
Former CFO Indicted in Multi-Million Dollar Embezzlement and Laundering SchemeRead the Press Release
BOSTON – The former chief financial officer of two Boston-area companies was indicted yesterday with embezzling over $3 million from his former employers.
Edward J. Abell III, 44, of Gloucester, was indicted on five counts of wire fraud and three counts of money laundering. In October 2017, Abell was charged in a criminal complaint with wire fraud and money laundering.
According to court documents, Abell served as Vice President of Finance and later Chief Financial Officer of a global integrated marketing agency based in Boston. In that capacity, Abell oversaw all aspects of the company’s finances and controlled all corporate bank accounts. It is alleged that between 2006 and his departure in 2016, Abell embezzled over $3.7 million from his employer by writing company checks to Pinehurst Tax Associates – a firm Abell owned. However, Pinehurst allegedly did not provide any services to Abell’s employer. Rather, it is alleged that Abell used Pinehurst as a shell company through which he channeled embezzled funds to personal bank accounts.
In order to avoid detection, Abell allegedly created fake profiles for Pinehurst within his employer’s internal vendor database and attributed all the fraudulent payments to Pinehurst as “Professional Services” in the financial accounting system. Abell also allegedly filed false personal tax returns with the IRS, which failed to report the millions he obtained through Pinehurst.
According to court documents, in late 2016, after he was terminated from the marketing and public relations firm, Abell was hired as CFO of a Boston-based consulting and investment banking firm, where he continued his scheme and embezzled over $140,000.
It is further alleged that Abell laundered the proceeds of his crimes by moving the funds through different personal accounts and by purchasing property and other luxury assets. Previously, the United States obtained seizure warrants for several of Abell’s assets allegedly acquired with fraudulent proceeds. As part of the operation, federal agents seized a 2015 Porsche Macan S, a 2015 Ford F-350 Super Duty, and an E*TRADE brokerage account all owned by Abell or held in his name.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The maximum sentence of one of the money laundering charges is 20 years in prison, three years supervised release, and a fine of $500,000, or twice the value of the property involved in the transaction. The remaining money laundering charges provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the value of the criminally derived property. 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; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Field Division; and Joel P. Garland Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
Five Charged in Shooting Death of A Bowling Green Resident During Robbery of La Placita MarketRead the Press Release
Defendants tied to a string of at least twelve violent robberies occurring at small stores across Kentucky, Tennessee, and North Carolina
BOWLING GREEN, Ky. – United States Attorney Russell M. Coleman today announced the arrest of five co-defendants charged in the shooting death of a Bowling Green resident, while robbing the La Placita market, located in Warren County, Kentucky. The Bowling Green homicide is tied to a string of at least twelve violent robberies occurring at small, privately owned stores across Kentucky, Tennessee, and North Carolina.
All were charged in a Criminal Complaint, unsealed yesterday, October 25, 2017, following the initial appearance of defendants Lillian Duron and Estrellita Soto, before United States Magistrate Judge H. Brent Brennenstuhl in Bowling Green. Defendant Johnny Alexander Relles-Martinez made his initial appearance on Tuesday, October 24, 2017 from the Leavenworth, Kansas, Detention Center. Defendants Jorge Santos Caballero-Melgar and Jose Adan Mejia Varela are currently in the custody of the Commonwealth of Virginia and are scheduled for their initial appearance on the federal charges on November 29, 2017 in Bowling Green.
“This outcome was due to plain old good police work, by Bowling Green’s Finest, in concert with the Federal Bureau of Investigation, and a host of other police agencies in other states” stated U.S. Attorney Russell Coleman. “We are all safer when local and federal law enforcement work together to tackle violent crimes like this dangerous string of multi-state robberies.”
According to the Criminal Complaint, on March 17, 2017, at 2:58 pm, two armed men, Martinez and Varela entered La Placita, locked the door behind them, and demanded money from La Placita’s employees. La Placita is a locally owned Hispanic market, check cashing business, and InterCambio Express wire transfer service, located at 710 Morgantown Road in Bowling Green.
During the robbery, Jose Cruz arrived at the store to pick-up his minor children, who were locked inside. When Varela unlocked the door to walk toward a waiting car, Cruz entered the store, realized that a second gunman, Martinez, was robbing the store and began fighting him. Valera returned to the store and attempted to pistol whip Mr. Cruz. Video footage, 911 audio, and witnesses, including Mr. Cruz’s minor children, who were present during the shooting, confirm the second gunman, Martinez, shot Cruz during the fight. First responders transported Mr. Cruz to a local hospital where he subsequently died.
According to the Affidavit supporting the Criminal Complaint, defendant Melgar served as the lookout during the robbery. Defendant Duron is accused of making a wire transfer at La Placita just over an hour before the robbery. Surveillance video showed Duron and Soto inside and in the parking lot of La Placita just prior to the hold up and shooting. Further, according to the Affidavit, Soto told Melgar where the money was kept, inside the store, and alerted Melgar when customers had left and only two female clerks were left inside. The five defendants are believed to be connected to a string of at least twelve violent robberies between January 13, 2017 and September 2, 2017, across Kentucky Tennessee, and North Carolina.
The charge of interference with commerce by threats or violence, a Hobbs Act charge, carries a maximum penalty of twenty years in prison. The charge of use of a firearm during a crime of violence, causing death, carries a maximum punishment of death or a term of life in prison.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Bowling Green Police Department and the FBI with assistance from the Warren County Commonwealth’s Attorney’s Office; Northampton County, VA Sheriff’s Office; Metro Nashville, TN Police Department; Rocky Mount, NC Police Department; Clayton, NC Police Department; Cary, NC Police Department; Henderson, NC Police Department; Snow Hill, NC Police Department; Chatham County, NC Sheriff’s Department; Department of Homeland Security; and United States Marshals.
la_placita_5_criminal_complaint_10-18-17.pdf***
The charge of a person by a Federal Criminal Complaint is an accusation only and that person is presumed innocent until and unless proven guilty
Five Army National Guardsmen Sentenced in Fraud SchemeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABTH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On October 24, 2017, United States District Judge George J. Hazel sentenced Vincent A. Grant, age 28, of Laurel, Maryland, to 58 months in prison after a jury found him guilty of conspiracy to commit access device fraud and one count of aggravated identity theft. Judge Hazel earlier ordered the following sentences for Grant’s co-defendants -
James C. Stewart, III to 66 months in prison;
Derrick K. Shelton, II to 49 months in prison;
Jamal A. Moody to 48 months in prison; and
Quentin T. Stewart to 40 months in prison.
Each of the defendants’ sentences included a 2-year consecutive mandatory minimum sentence for committing aggravated identity theft.
The sentences were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office (DCIS); and Special Agent in Charge Jeffrey Thorpe of the DCIS - Cyber Field Office.
The defendants were found guilty of conduct occurring from July 2014 to May 2015, during which time the defendants used Bitcoin, a form of digital currency to purchase stolen credit and debit card numbers of individuals and businesses from foreign internet websites. The defendants selected and purchased stolen credit and debit card numbers of individuals and businesses holding federal credit union accounts, and those with billing addresses in or near Maryland. They bought magnetic strip card-encoding devices and software to re-encode credit, debit, and other cards with the stolen credit and debit card numbers. The defendants then used the cards they fraudulently re-encoded to buy merchandise, including gift cards, electronic items, and luxury goods, from Army and Air Force Exchange Service stores on U.S. military bases, also known as PX stores, and other locations in Maryland and elsewhere. They used the merchandise themselves or resold the merchandise to individuals they knew or through Craigslist postings.
James Stewart was convicted after trial on June 1, 2017, of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Vincent Grant was convicted of conspiracy to commit access device fraud and aggravated identity theft. Derrick Shelton and Quentin Stewart pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Jamal Moody pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft.
Moody, Shelton, James Stewart, and Grant were specialists, and Quentin Stewart was a former sergeant, all in the District of Columbia Army National Guard.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the DCIS for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Bryan E. Foreman and Thomas P. Windom; Special Assistant U.S. Attorney Gustav William Eyler, of the U.S. Justice Department, Criminal Division - Fraud Section; and Trial Attorney Jessee Alexander-Hoeppner, of the U.S. Justice Department, Criminal Division - Fraud Section, who prosecuted the case.
Fifteen Individuals Charged in Multi-Million Dollar International Money Laundering and Fraud SchemeRead the Press Release
Fifteen individuals, including twelve Florida residents, have been charged in a multi-million dollar international money laundering and fraud scheme in two Indictments.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security (ICE-HSI), made the announcement.
One Indictment charges Roda Taher, 38, of Beruit, Lebanon, Geannis Gonzalez, 31, of Peyton, Colorado, Alfredo Tovar, 36, of Miami Gardens, Quiana Velasco, 35, of Miami, Jose Daniel Estrella, 38, of Hallandale, Pedro Reyes, 38, of Hialeah, Robinson Castillo, 32, of Pembroke Pines, and Jamie Vives Castillo, 41, of Pembroke Pines, with conspiracy to commit money laundering, conspiracy to commit bank fraud, money laudering, and conducting transactions in criminally derived property. Hanan Jaafar, 26, of Beruit, Lebanon, is also charged with conspiracy to commit money laundering and conspiracy to commit bank fraud.
According to the Indictment, from 2008 to the present, Taher has managed and supervised a criminal organization engaged in money laundering and transactions in criminally derived property that has received approximately $94 million dollars in fraudulent proceeds. The organization utilized bank accounts established in the names of shell corporations to receive the proceeds of various fraudulent schemes, including romance frauds, email hacking schemes, and inheritance and lottery scams, that victimized individuals and corporations across the United States. The defendants would recruit individuals to act as “money mules,” establishing the shell corporations in the money mules’ names. The defendants would then have the money mules open bank accounts throughout South Florida in the names of their shell corporations, instructing the mules to falsely represent to the banks that the shell corporations were legitimate businesses engaged in the import, export, or sale of various goods. Once these bank accounts received money wired from a fraud victim, the defendants would instruct the money mules to wire the money to other accounts overseas. Defendants Gonzalez, Tovar, Velasco, Estrella, Reyes, Castillo, and Vives Castillo all incorporated shell corporations and eventually graduated to recruiting and managing money mules on behalf of the organization. Defendant Jaafar, Taher’s wife, also received criminal proceeds from other members of the organization and transferred portions of those proceeds to accounts overseas.
A second Indictment charged Luis Angel de Jesus Alfonseca Pujols, 24, of Sunrise, Gary Alberto Camillo, 26, of Pembroke Pines, Jean-Phillipe Etienne, 25, of Pembroke Pines, Randy Eliessel Santos, 29, of Hollywood, and Cosme Daniel Enrique Vasquez, 36, of Miramar, with conspiracy to commit money laundering, conspiracy to commit bank fraud and wire fraud, international money laundering, money laundering, and bank fraud. The indictment also charged Karina Marie Ocasio, 24, of Weston, with conspiracy to commit money laundering, conspiracy to commit bank fraud and wire fraud, money laundering, and bank fraud.
If convicted of the charged conduct, the defendants face a possible maximum statutory sentence of 30 years’ imprisonment for conspiracy to commit bank fraud and wire fraud; 30 years’ imprisonment for bank fraud; 20 years’ imprisonment for conspiracy to commit money laundering; 20 years’ imprisonment for money laundering; 20 years’ imprisonment for international money laundering; and 10 years’ imprisonment for conducting transactions in criminally derived property.
Mr. Greenberg commended the investigative efforts of the FBI, HSI and the South Florida Joint Terrorism Task Force (JTTF) in connection with the investigation of this matter. The case against Taher et.al. is being prosecuted by Assistant U.S. Attorneys Jared M. Strauss and Michael G. Walleisa. The case against Alfonseca Pujols, et. al. is being prosecuted by Assistant U.S. Attorney Dwayne E. Williams.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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
Federal Jury Returns Guilty Verdict Against Arizona Man on Marijuana Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – This afternoon, a federal jury sitting in Las Cruces, N.M., found John Leroy Milne, 56, of Phoenix, Ariz., guilty on marijuana trafficking charges and acquitted his co-defendant following a three-day trial. Acting U.S. Attorney James D. Tierney, Acting Special Agent in Charge Steve Borak of the El Paso Division of the DEA and Chief Patrol Agent Jeffrey D. Self of the U.S. Border Patrol El Paso Sectorannounced the verdict.
The DEA and U.S. Border Patrol arrested Milne on June 23, 2017, on a criminal complaint charging him with possessing 111.58 kilograms (245.99 pounds) of marijuana with intent to distribute. Milne and his co-defendant, Manuel Pavon-Rodriguez, 36, a Mexican national illegally in the United States, subsequently were indicted on July 19, 2017, and were charged with participating in a marijuana trafficking conspiracy and possession of marijuana with intent to distribute. According to the indictment, the defendants committed the crimes on June 23, 2017, in Hidalgo County, N.M.
The evidence at trial established that U.S. Border Patrol agents encountered Milne in Rodeo, N.M., on June 23, 2017, after Milne stopped his vehicle in front of the agents, got out of the vehicle, and initiated a conversation with the agents. The agents had been following Milne because Milne’s vehicle did not have a visible license plate. Agents testified that Milne gave conflicting and confusing accounts about this his travel plans until the agents asked him to show them the paper license plate for his vehicle. The agents testified that they observed five burlap backpacks and detected the strong scent of marijuana from the back of vehicle as Milne attempted to remove the paper license plate from the back window of his vehicle.
When the agents opened the back of the vehicle to inspect the backpacks, they observed Pavon-Rodriguez, who was wearing camouflage clothing, attempting to hide in the back of the vehicle with the backpacks so he could illegally enter the United States. The five burlap backpacks contained 12 square bales of marijuana, weighing approximately 246 pounds that were wrapped in duct tape.
The jury deliberated approximately two hours before returning a guilty verdict against Milne and a not guilty verdict against Pavon-Rodriguez.
At sentencing, Milne faces a statutory mandatory minimum penalty of five years and maximum of 40 years in federal prison. Milne remains in custody pending sentencing hearings, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the U.S. Border Patrol. Assistant U.S. Attorneys Alfred J. Perez and Kathleen Robeson of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Federal Jury Finds Man Guilty of Drug and Explosive OffensesRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Wednesday, a federal jury in New Bern found JAMES CURTIS DENTON guilty of conspiracy to manufacture and distribute methamphetamine and possession and transportation of an explosive by a drug user with the intent to injure or kill an individual.
DENTON was named in a superseding indictment originally filed on May 3, 2016, which included a drug conspiracy with four co-defendants and other drug offenses. He was arrested shortly thereafter. While in custody and after further investigation, DENTON was named in a second superseding indictment including the explosive charges on August 2, 2016.
In the early morning of May 28, 2015, an improvised explosive device (IED) constructed of PVC pipe, black powder, and pellets was affixed under the vehicle of DENTON’S ex-spouse’s boyfriend’s vehicle. Later that day, the IED exploded as the victim was driving down a neighborhood street. Fortunately, the victim was unharmed. During the investigation, it was discovered that DENTON was involved in drug use, and, as the drug investigation continued, evidence regarding DENTON’s motive to place the IED was revealed. Investigators and the federal prosecutor were able to tie DENTON to the IED based on the statements and interviews of multiple witnesses, including a co-defendant who accompanied DENTON to the neighborhood when he placed the IED.
At sentencing, DENTON faces a mandatory minimum sentence of 5 years imprisonment and a maximum of 40 years imprisonment.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Cary Police Department. Assistant United States Attorney Jason Kellhofer represented the government.
Federal Grand Jury Indicts Pomona Police Officer on Civil Rights Offense for Allegedly Assaulting Minor at L.A. County FairRead the Press Release
Three officers with the Pomona Police Department (PPD) surrendered this morning to face federal charges that allege one officer violated the civil rights of a minor who was beaten at the Los Angeles County Fair two years ago, and that all three took illegal steps to justify and cover-up the attack.
PPD Corporal Chad Kenneth Jensen is charged with deprivation of rights under color of law for allegedly beating the minor victim on September 16, 2015. The indictment alleges that Jensen violated the victim’s constitutional rights, which includes the right to be free from the use of unreasonable and unnecessary force, and that the assault resulted in bodily injury.
Jensen and his partner–PPD Officer Prince Taylor Hutchinson–are charged with preparing false reports that attempted to justify the use of force. The indictment alleges that, in a report prepared soon after the incident, Jensen falsely wrote that the minor victim attempted to punch Jensen’s face, and that the minor victim came within arm’s reach of another officer who was escorting an individual who had been placed under arrest. Hutchinson similarly is accused of writing a report that falsely stated the victim had come within two to three feet of the officer who was escorting an individual who had been placed under arrest, and that the victim had attempted to incite unrest among at the crowd at the Fair as Hutchinson escorted the minor victim to a holding facility at the Fair.
Jensen and Hutchinson are further charged with obstruction of justice for giving false testimony during state court proceedings regarding criminal charges against the victim. Both Jensen and Hutchinson gave false testimony similar to that in their reports and created the false impression that the minor posed a physical threat to other officers before Jensen assaulted him.
The third defendant in the case–PPD Sergeant Michael Timothy Neaderbaomer, who was assigned to the PPD’s Internal Affairs Unit–is charged with obstruction of justice for making false statements to the victim’s family designed to dissuade them from reporting the incident to law enforcement. According to the indictment, Neaderbaomer “attempted to intimidate and corruptly persuade” the victim and his parents by falsely claiming that the PPD had a video showing the victim punching Jenson and by telling the victim’s mother that the parents would not be allowed to attend PPD’s interview of the victim in relation to the citizen’s complaint, in violation of PPD policy.
Neaderbaomer is also charged with making false statements to FBI agents who were investigating the alleged civil rights violation by Jensen.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted, the charges of excessive force carry a maximum penalty of 10 years in prison, the charges of witness tampering and falsifying records carry a maximum penalty of 20 years in prison, and the charges of false statements to federal agents carry a maximum penalty of five years in prison.
The case against the police officers is being prosecuted by Assistant United States Attorney Thomas Stout of the Public Corruption and Civil Rights Section and by Justice Department Trial Attorney Donald Tunnage of the Civil Rights Division.
Federal Grand Jury Indicts Pomona Police Officer on Civil Rights Offense for Allegedly Assaulting Minor at L.A. County FairRead the Press Release
LOS ANGELES – Three officers with the Pomona Police Department (PPD) surrendered earlier today to face federal charges that allege one officer violated the civil rights of a minor who was beaten at the Los Angeles County Fair two years ago, and that all three took illegal steps to justify and cover-up the attack.
PPD Corporal Chad Kenneth Jensen, 50, is charged with deprivation of rights under color of law for allegedly beating the minor victim on September 16, 2015. The indictment alleges that Jensen violated the victim’s constitutional rights, which include the right to be free from the use of unreasonable and unnecessary force, and that the assault resulted in bodily injury.
Jensen and his partner – PPD Officer Prince Taylor Hutchinson, 31 – are charged with preparing false reports that attempted to justify the use of force.
The indictment alleges that, in a report prepared soon after the incident, Jensen falsely wrote that the minor victim attempted to punch Jensen’s face, and that the minor victim came within arm’s reach of another officer who was escorting an individual who had been placed under arrest.
Hutchinson similarly is accused of writing a report that falsely stated the victim had come within two to three feet of the officer who was escorting an individual who had been placed under arrest, and that the victim had attempted to incite unrest among the crowd at the Fair as Hutchinson escorted the minor victim to a holding facility at the Fair.
Jensen and Hutchinson are further charged with obstruction of justice for giving false testimony during state court proceedings regarding criminal charges against the victim. Both Jensen and Hutchinson gave false testimony similar to that in their reports and created the false impression that the minor posed a physical threat to other officers before Jensen assaulted him.
The third defendant in the case – PPD Sergeant Michael Timothy Neaderbaomer, 49, who was assigned to the PPD’s Internal Affairs Unit – is charged with obstruction of justice for making false statements to the victim’s family designed to dissuade them from reporting the incident to law enforcement. According to the indictment, Neaderbaomer “attempted to intimidate and corruptly persuade” the victim and his parents by falsely claiming that the PPD had a video showing the victim punching Jenson and by telling the victim’s mother that the parents would not be allowed to attend PPD’s interview of the victim in relation to the citizen’s complaint, in violation of PPD policy.
Neaderbaomer is also charged with making false statements to FBI agents who were investigating the alleged civil rights violation by Jensen.
All three PPD officers were arraigned on the indictment this afternoon in United States District Court. All three defendants entered not guilty pleas and were ordered released on $50,000 bond. A trial in this case was scheduled for December 19.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The civil rights charge related to the use of excessive force carries a statutory maximum penalty of 10 years in prison, the charges of witness tampering and falsifying records carry a maximum penalty of 20 years in prison, and the charges of false statements to federal agents carry a maximum penalty of five years in prison. Therefore, if they were to be convicted of the charges in the indictment, Jensen would face a maximum sentence of 50 years, Hutchinson would face up to 40 years, and Neaderbaomer would be subject to a statutory maximum sentence of 30 years.
This case is being investigated by the Federal Bureau of Investigation.
The case against the police officers is being prosecuted by Assistant United States Attorney Thomas Stout of the Public Corruption and Civil Rights Section and by Justice Department Trial Attorney Donald Tunnage of the Civil Rights Division.
Euclid man indicted for having more than 200 grams of carfentanilRead the Press Release
A Euclid man was indicted for having cocaine and more than 200 grams of carfentanil, said U.S. Attorney Justin Herdman and Euclid Police Chief Scott Meyer.
Troy Baker, 37, was indicted on one count of possession with intent to distribute carfentanil and one count of possession with intent to distribute cocaine.
Baker had approximately 218 grams of carfentanil, as well as cocaine, on June 27, according to the indictment.
“This amount of carfentanil could kill tens of thousands of people,” Herdman said. “This is an example of a tip from a citizen resulting in police action and a safer community.”
“This investigation, conducted by members of the Euclid Police Department -- Narcotics and Vice Unit, shows the power and importance of tips from the public,” Meyer said. “These tips can be provided anonymously. It is the responsibility of all to combat this opiate epidemic. We are very pleased that the U.S. Attorney’s Office has adopted this case for prosecution.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the Euclid Police Department and Northern Ohio Law Enforcement Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Drug Trafficking Organization Members IndictedRead the Press Release
Hattiesburg, Miss – Six people have been charged in a five-count federal indictment with drug trafficking offenses, announced U.S. Attorney Mike Hurst, DEA Special Agent in Charge Stephen G. Azzam and FBI Special Agent in Charge Christopher Freeze.
The indictment charges Dexter Jones, 42, of Soso, Mississippi, with one count of conspiracy to possess with intent to distibute methamphetamine and one count of possession with intent to distribute methamphetamine; John Baxter, 35, of Stockton, California, with one count of conspiracy to possess with intent to distribute methamphetmine; Darrion Jones, 32, of Laurel, Mississippi, with one count of conspiracy to possess with intent to distribute methamphetamine; Mitchell Jones, 42, of Soso, Mississippi, with one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession with intent to distribute methamphetamine; Jamie Wheat, 41, of Laurel, Mississippi, with one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession with intent to distribute methamphetamine; and John Foster, 41, of Hattiesburg, Mississippi, with one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession with intent to distribute cocaine, and one count of possession with intent to distribute methamphetamine.
The indictment alleges that beginning in 2015, the defendants conspired with others to possess with intent to distribute narcotic drug controlled substances including methamphetamine and cocaine in the Eastern Division of the Southern District of Mississippi.
"The way to address our drug crisis is to attack the criminal organizations that perpetuate it. I commend our federal, state and local law enforcement agencies for their diligent investigation. We will not stop prosecuting these criminal enterprises until our citizens are safe and our communities are protected," said U.S. Attorney Mike Hurst.
"With these arrests, DEA and its state and local law enforcement partners have taken down an organization responsible for distributing large quantities of methamphetamine in the state of Mississippi. By removing these violent criminals from the streets, they can no longer threaten the health and safety of our communities. We will continue to work together to target criminal organizations and their assets to ensure that drug traffickers are held responsible for the harm they cause," said DEA Special Agent in Charge Stephen G. Azzam.
"This is another great example of how the efforts of DEA and MBN continue to dismantle drug trafficking organizations within our state," said MBN Director John M. Dowdy, Jr.
If convicted, the defendants face up to life in prison and fines of up to $10,000,000.
Five of the defendants appeared before United States Magistrate Judge Michael T. Parker on October 25, 2017 for initial appearances and arraignments. The remaining defendant, John Baxter, will be arraigned at a later date. A jury trial is scheduled for December 18, 2017, before United States District Judge Keith Starrett in Hattiesburg, Mississippi.
The case is being investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Mississippi Bureau of Narcotics, Lamar County Sheriff’s Department, Jones County Sheriff’s Department, and the Hattiesburg Police Department.
The public is reminded that an indictment is merely an allegation and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
District Man Pleads Guilty to Robbing Southeast Washington BankRead the Press Release
WASHINGTON – Syles Kealoha, 23, of Washington, D.C., pled guilty today to a federal bank robbery charge for a hold-up in August 2016 in Southeast Washington, announced U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Kealoha entered the plea in the U.S. District Court for the District of Columbia. He is to be sentenced on March 15, 2018 by the Honorable Rudolph Contreras. He faces a statutory maximum of 20 years in prison. Under federal sentencing guidelines, he faces a likely range of 30 to 37 months in prison and potential financial penalties
According to the government=s evidence, on Aug. 12, 2016, at approximately 3:30 p.m., Kealoha entered a Wells Fargo bank in the unit block of M Street SE and presented a demand note which stated, “I didn’t come to hurt anyone. Give me all the money or everyone dies.” Kealoha also handed the teller a plastic bag in which to place the money. After reading the note, the teller ducked behind the counter and began placing money into the plastic bag, and pressed the panic button in the bank, triggering law enforcement response.
After banging on the glass to get the teller’s attention, Kealoha fled, leaving the note behind, without obtaining any money. During the course of the investigation, law enforcement obtained video surveillance from the bank, which captured the bank robbery and showed the defendant. The demand note was sent to the FBI Laboratory in Quantico, Virginia for testing and analysis. Specifically, the note was tested for the presence of DNA and fingerprints or palm prints. Two palm prints were located on the note and were identified as belonging to Kealoha.
Kealoha was arrested on March 27, 2017.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI Laboratory. They acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias, Legal Assistant Peter Gaboton, and Law Clerk Jennifer Newman. Finally, they commended the efforts of Assistant U.S. Attorney Emory V. Cole who investigated and prosecuted the case.
District Man Found Guilty of First-Degree Murder for Setting Fire That Killed 4-Year-Old GirlRead the Press Release
WASHINGTON – Jerome C. Lewis, 50, of Washington, DC, has been found guilty by a jury of first-degree murder with aggravating circumstances, second-degree murder, and first-degree cruelty to children in a fire that led to the death of a four-year-old child.
The verdict was announced by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD), Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Gregory M. Dean, Chief of the District of Columbia Department of Fire and Emergency Medical Services (DCFEMS).
Lewis was found guilty on Oct. 25, 2017, following a trial in the Superior Court of the District of Columbia. The Honorable Milton C. Lee scheduled sentencing for Jan. 26, 2018. Lewis faces a potential sentence of life in prison without parole.
According to the government’s evidence, Lewis owned a home in the 2600 block of 33rd Street SE. In late 2011, Lewis began renting the first and second floors to relatives while he lived in the basement. In early 2013, his relationship with his tenant-relatives had become strained and he was experiencing a financial crisis. On Feb.17, 2013, in the early hours of the morning, he set fire to his mattress located in his basement living area, causing a fire that spread throughout the basement and to the first floor of the home.
Everyone was able to escape the home, with the exception of four-year-old Samauri Michelle Jenkins. She was rescued from a second floor bedroom by the District of Columbia Department of Fire and Emergency Medical Services. She was taken to a hospital with burns and smoke inhalation, but died from her injuries two days later.
Lewis was arrested on the morning of the fire and has been in custody ever since.
In announcing the verdict, U.S. Attorney Liu, Chief Newsham, Special Agent in Charge Chittum, and Chief Dean commended the work of the D.C. Arson Task Force, which is comprised of members from MPD, the Washington Field Division of the ATF, and DCFEMS. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialist Stephanie Gilbert; Legal Secretary Dawn White; Intelligence Analyst Zachary McMenamin; Litigation Technology Specialist Leif Hickling; Victim/Witness Advocate Marcia Rinker; Supervisory Victim/Witness Services Coordinator David Foster; Victim/Witness Services Coordinator Katina Adams-Washington; Supervisory Administrative Services Specialist Tina Wall, and Administrative Services Specialist Sallie Rynas.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Kimberley C. Nielsen and Michelle D. Jackson, who investigated and prosecuted the case.
DOJ Awards more than $3.7 Million to Washington State Entities to Advance Forensic Science and Crime Fighting DatabaseRead the Press Release
The U.S. Department of Justice has awarded four grants totaling more than $3.7 million to Washington State entities to enhance forensic science and criminal records systems, announced U.S. Attorney Annette L. Hayes. The grant awards advance scientific research and improve criminal justice record keeping.
“In a very competitive environment, local researchers and law enforcement submitted grant proposals that earned substantial backing from the Justice Department,” said U.S. Attorney Annette L. Hayes. “These federal funds will improve the ways we use DNA, and will enhance critical records used to bring criminals to justice.”
University of Washington researchers were awarded two grants. The largest grant, for $902,440 will continue work focused on producing statistical procedures for providing the quantitative strength of DNA evidence. The researchers are working with population genetic theory to calculate match probability and genetic markers. The second grant, $509,728 advances work on damaged or mixed DNA samples. This second grant involves work with the Washington State Patrol Crime Lab.
The Washington State Patrol (WSP) also received more than $2 million in grants. The largest, $1,559,282, will allow for the testing of previously unsubmitted sexual assault kits. State law enforcement currently has a backlog of more than 6,000 previously unsubmitted test kits. The second grant to the Washington State Patrol funds improvements to record keeping in the National Criminal History database. WSP will use the $741,964 in federal funds to improve the state records submitted to the national database in a number of ways: researching missing records; finding incomplete records; improving the way records are input into the national system; and deploying technology to various jurisdictions to improve the entering of records.
Some of these grants continue work undertaken by researchers and law enforcement in prior funding periods.
Specific information about the work being funded can be obtained from Susan Gregg at the University of Washington [email protected] and from Bob Maki at WSP 360-593-4045.
DEA and United States Attorneys Office Prepare for Prescription Drug Takeback DayRead the Press Release
U.S. Attorney R. Trent Shores announced the DEA will hold the 14th National Prescription Drug Take Back Day, October 28th from 10 a.m. to 2 p.m., at ten collection sites throughout the Northern District of Oklahoma. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“I encourage Oklahomans to take advantage of this opportunity to safely dispose of outdated and unused prescription drugs collecting at their homes.” USA Shores said. “Unused prescription drugs just laying around the house may unintentionally create the opportunity for their improper use or fuel an addiction problem.”
Last April Americans turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept needles or sharps. The DEA can accept pills, patches, and tightly sealed liquids.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
The collection sites in the Northern District of Oklahoma are:
- Bartlesville Police Department - 615 S. Johnstone Avenue, Bartlesville, OK 74003
- BIA-OJS Miami Agency - 34 A Street, Miami, OK 74355
- Miami Nation Tribal Police - 3401 P. Street, Miami, OK 74335
- Osage Nation Police Department - 627 Grandview Ave, Pawhuska, OK 74056
- Tulsa Police Department - 12466 E 21st St, Tulsa, OK 74129
- Tulsa Police Department - Patrick Henry Elementary School, 3820 E. 41st Street, Tulsa, OK 74135
- Craig County Sheriff's Office - 210 W. Delaware Ave. #101, Vinita, OK 74301
- Vinita Police Department - 104 E. Illinois Avenue, Vinita, OK 74301
- Wyandotte Tribal Police Department - 64700 E. Hwy 60, Wyandotte, OK 74370
- Eastern Shawnee Tribal Police Department - 10250 South 695 Rd, Wyandotte, OK 74370
For more information or to locate a collection site nearest you go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
DEA Prepares for Prescription Drug Takeback Day This SaturdayRead the Press Release
Columbia, South Carolina – U.S. Attorney Beth Drake will join the DEA on October 28th for its 14th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including over 65 locations across South Carolina. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Last April, Americans turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
take_back_approved_sites.xlsDEA Prepares for Prescription Drug Take Back DayRead the Press Release
DES MOINES, Iowa – On Saturday, October 28, 2017, from 10 a.m. to 2 p.m., the Des Moines Resident Office of the Drug Enforcement Administration (DEA) and other participating law enforcement agencies will give the public its 14th opportunity in 7 years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. The DEA cannot accept liquids, needles or sharps, only pills or patches. The service is free and anonymous with no questions asked.
Last April, Americans turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have collected over 8.1 million pounds—more than 4,050 tons—of pills.
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
This initiative addresses vital public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse. In addition, flushing medications down the toilet or throwing them in the trash create separate potential safety and health hazards.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day website at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
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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).
DEA and Local Law Enforcement Partners Take Back Unwanted Prescription Drugs October 28Read the Press Release
SAN FRANCISCO – This Saturday, October 28, from 10 a.m. to 2 p.m. local time the federal Drug Enforcement Administration and its local law enforcement, community and tribal partners will give the public its 14th opportunity in seven years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Individuals can take pills and other solid forms of medication to one of almost 5,000 collection sites manned by more than 4,000 partners nationwide. (DEA cannot accept liquids, needles or sharps.) They can find nearby collection sites at www.DEATakeBack.com or by calling 800-882-9539. The service is free and anonymous, no questions asked.
“The Department of Justice is committed to ensuring that unused and unwanted prescription drugs are disposed of properly,” said United States Attorney Brian J. Stretch. “The DEA Takeback program is one proven way we can ensure that these potentially dangerous drugs no longer pose a threat to our community.”
“Disposing of leftover painkillers or other addictive medicines in the house is one of the best ways to prevent a member of your family from becoming a victim of the opioid epidemic,” said DEA Acting Administrator Robert W. Patterson. “More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the largest rate of overdose deaths this country has ever seen.”
“America is in the midst of a prescription drug crisis and the home medicine cabinet is a major source. Let’s work together to help put an end to this epidemic by cleaning out that cabinet and disposing of unwanted medication at a take back location,” stated DEA Special Agent in Charge John J. Martin.”
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Last April the public turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills.
Columbia Man Sentenced to 35 Years in Federal Prison for Sex Trafficking and Possession of a Firearm During a Drug Trafficking CrimeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Alshura Tabil Annessa Frazier, age 36, of Columbia, South Carolina, was sentenced today in federal court in Columbia, for sex trafficking of children, a violation of 18 U.S.C. § 1591(a) (1) and for possession of a firearm during a drug trafficking crime, a violation of 18 U.S.C. § 924(c). United States District Judge Mary Geiger Lewis, of Columbia, imposed a sentence of 420 months (35 years) imprisonment, followed by a lifetime of supervised release and a $5,200 special assessment fee. Judge Lewis also ordered Frazier to pay the victims restitution totaling $159,500.
Evidence presented at the change of plea hearing established that the victim in this case was a minor (under the age of eighteen) from North Carolina. Around Memorial Day in 2015, the victim left her family and met Frazier in Myrtle Beach. Following this encounter, Frazier and others had sex with the victim in exchange for providing her with the recreational drug “Molly” and shelter for the night. After leaving Myrtle Beach, Frazier brought the victim to Columbia where Frazier recruited her to perform sexual acts with clients for money. Frazier transported her to and from North Carolina and South Carolina on multiple occasions for the purpose of prostitution. Frazier received 100% of the profits made from the prostitution. The victim was sixteen-years-old at the time she began working as a prostitute for Frazier. During this time, Frazier knew that the victim was under the age of eighteen.
In addition, on March 18, 2015, after a Richland County deputy attempted to make a traffic stop on a car driven by Frazier, Frazier refused to stop and a chase ensued. During the chase, Frazier pulled into a parking lot and let a female passenger exit the vehicle. The female passenger, later identified as a prostitute working for Frazier, ran from the scene carrying a box. Unable to locate Frazier that day, officers, with the help of citizens, found the female passenger hiding in the woods. She then led officers to the box that she exited the vehicle with earlier which contained a 10mm Glock pistol, cocaine, crack cocaine, and the suspected drug, “Molly.” The female passenger told officers that the box belonged to Frazier and that he gave it to her when he stopped to let her out and told her to run.
The case was investigated by agents of the Federal Bureau of Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springdale Police Department, and the Richland County Sheriff’s Department. Assistant United States Attorneys William K. Witherspoon and T. DeWayne Pearson of the Columbia office prosecuted the case.
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Cleveland men indicted for using firearms to rob bank on Shaker BoulevardRead the Press Release
Two Cleveland men were indicted for the armed robbery of a bank on Shaker Boulevard, said U.S. Attorney Justin Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Maurice Montgomery, Jr., 20, and Jeremiah A. Johnson, 19, were each indicted on one count of bank robbery. They are accused of robbing the U.S. Bank on Shaker Boulevard in Cleveland on Aug. 26.
Both are also indicted on one count of using or brandishing a firearm during the commission of a crime of violence.
“We will seek long prison sentences for those who use firearms to commit crimes and prey upon others,” Herdman said.
"These two individuals put Saturday morning bank customers and employees at risk with the dangerous, gun-wielding robbery they committed,” said FBI Special Agent in Charge Stephen D. Anthony. “The FBI will continue to work with our local law enforcement partners and the public in getting every bank robber identified, in custody, and prosecuted -- just like these two.”
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Pinjuh following an investigation by the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Captain with Bristol County Sheriff’s Office Indicted for Smuggling Profits to PortugalRead the Press Release
BOSTON – A Captain with the Bristol County Sheriff’s Office was indicted yesterday by a federal grand jury in connection with helping Carlos Rafael, the owner of one of the largest commercial fishing businesses in the U.S., smuggle the profits of his illegal overfishing scheme to Portugal.
Jamie Melo, 45, of North Dartmouth, Mass., was indicted on one count each of bulk cash smuggling, structuring and conspiracy. In August 2017, Melo was arrested and charged in a criminal complaint.
In May 2015, federal agents began an undercover operation targeting Carlos Rafael, the owner of one of the largest commercial fishing businesses in the U.S. In the fall of 2015, undercover agents, posing as potential buyers of Rafael’s business, met with Rafael to negotiate buying his fishing business. Rafael told the agents that he hid the cash proceeds of his illegal fishing sales, in part, by smuggling the money to Portugal. As alleged in court documents, Rafael said that he sometimes took the money himself, but also used the services of others, and referred to knowing several members of the Bristol County Sheriff’s Office, including Melo, whom he described as, “the captain at the prison.”
As alleged, on Nov. 10, 2015, agents conducting surveillance at Logan Airport saw Melo and Rafael arrive in a van, marked as belonging to the Bristol County Sheriff’s Office, for a flight to Portugal. Melo completed TSA screening without incident, but Rafael was found in possession of $26,400, for which he completed a federal reporting form. Several other acquaintances of Rafael and Melo were also on the flight and, allegedly coordinated by Melo, helped Rafael smuggle an additional $50,000 in cash to Portugal. It is further alleged that before the flight, Melo distributed envelopes of cash to these acquaintances, each of whom took an envelope on the flight and returned it to Melo or Rafael after landing in Portugal. Two days later, on Nov. 13, 2015, Portuguese bank records indicate that Carlos Rafael deposited $76,000 in U.S. currency into a Banif Bank account.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of bulk cash smuggling provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of structuring carries a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $500,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Gregory K. Null, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Office of Investigations, Philadelphia Field Office; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.