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12 December 2017
Jacksonville Man Pleads Guilty to Manufacturing and Possessing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that James Edward Langford, IV (30, Jacksonville) today pleaded guilty to manufacturing and possessing counterfeit Federal Reserve notes. He faces a maximum penalty of 40 years in federal prison, forfeiture of the computer media used to manufacture the counterfeit notes, and payment of restitution to any victims he defrauded.
According to court documents, in late July 2017, law enforcement officers received information that Langford was manufacturing counterfeit Federal Reserve notes at a hotel in Jacksonville. On July 25, 2017, U.S. Secret Service agents surveilled the hotel room and observed Langford and two others leave the room. Langford and one of the individuals discarded full trash bags by the hotel’s trash area. A search of the bags revealed several uncut sheets of wadded paper with printed images of counterfeit $20 bills.
Later that day, agents observed Langford leave the room and exit the hotel parking lot. Surveillance teams observed him driving erratically, cutting across three lanes of traffic, speeding, entering an intersection, and then making a sudden U-turn. Law enforcement initiated a traffic stop and during a search of Langford, multiple counterfeit $20 Federal Reserve notes were recovered from his wallet. A subsequent search of Langford’s hotel room revealed numerous counterfeit notes and the computer media used to manufacture them, along with chemicals commonly used to remove the ink from genuine bills during the counterfeiting process.
This case was investigated by the U.S. Secret Service - Jacksonville Field Office and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Iserve Technologies, Inc. Pled Guilty in Connection with Guilty Pleas of Former Exec and Manager of Med-Fast Pharmacy Inc.Read the Press Release
PITTSBURGH – Individuals and entities associated with Med-Fast Pharmacy, Inc. (“Med-Fast”) have resolved criminal and civil charges associated with Med-Fast’s improper submission of claims to the Medicare and Medicaid programs, Acting United States Attorney Soo C. Song announced today.
Iserve Technologies, Inc., a company co-located with and operated out of Med-Fast, participated in a conspiracy to fill prescriptions for nursing homes with recycled unused drugs that were commingled with drug stocks on hand at Med-Fast’s Institutional Pharmacy. Today the court sentenced it to pay $400,000 in forfeiture, $44,600 in a criminal fine and a $400 special assessment. Iserve was also ordered by the court to pay to the United States $1,555,000, in accordance with a Civil Settlement Agreement to reimburse the Medicare and Medicaid Programs for overbilling. The Iserve criminal charges follow the earlier guilty plea on related charges against the former Vice President of Store Operations for Med-Fast, defendant Gino Cordisco, 47, of Mars, Pennsylvania, and the former manager of the Med-Fast Institutional Pharmacy, Correna Pfeiffer, 37, of Monaca, Pennsylvania.
Med-Fast Pharmacy, Inc., its owner Douglas Kaleugher, and related entities also have agreed to pay the United States additional monies to settle civil False Claims Act allegations. The total amounts paid, including the above sums, total $2,666,300. The civil settlement resolves allegations in two separate whistleblower lawsuits filed in federal court in Pittsburgh, Pennsylvania. The settled claims contended thatMed-Fast violated the False Claims Act by distributing and submitting claims to Medicare for medication that it had either recycled from long-term care facilities serviced by its institutional pharmacy, or that otherwise differed from the medications identified as part of the claims submitted to the United States. The settlement also resolves allegations that Med-Fast violated the False Claims Act by submitting claims to Medicare and Pennsylvania Medicaid that sought reimbursement for the retail-packaged version of diabetes testing strips, while actually supplying patients with cheaper mail-order-packaged version of the same strips.
These matters were investigated by The U.S. Food and Drug Administration-OCI, the Drug Enforcement Administration-Diversion Investigators, the Office of Inspector General of the Department of Health and Human Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Nelson P. Cohen prosecuted the criminal cases on behalf of the government and Assistant U.S. Attorney Colin J. Callahan litigated the civil cases on behalf of the Affirmative Civil Enforcement Section of the United States Attorney’s Office.
The civil cases resolved by this settlement are captioned United States ex rel. Darla Reid v. Med-Fast Pharmacy, Inc., Civil Action No. 13-715 (WDPA); and United States ex rel. Bryan Bisceglia v. Med-Fast Pharmacy, Inc. et al., Civil Action No. 13-0368 (WDPA). The claims resolved by the civil settlement are allegations only, and there has been no determination of liability. The conspiracy charge against Cordisco carries a maximum total sentence of five years in prison, a fine of $250,000 or both. The conspiracy charge against Iserve Technologies, Inc. carries a maximum total sentence of five years probation, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Guilford Man Charged with Failing to Report to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a grand jury in New Haven returned an indictment today charging BRIAN PAGE, 43, of Guilford, with one count of failure to surrender for service of his federal sentence.
According to court documents and statements made in court, on October 17, 2017, U.S. District Judge Alvin W. Thompson sentenced PAGE in Hartford to 97 months of imprisonment, followed by four years of supervised release, for his role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions. Judge Thompson ordered PAGE, who was released on a $200,000 bond, to surrender for service of his sentence on November 17. PAGE was designated by the Bureau of Prisons to the Federal Correctional Institute at Fort Dix, New Jersey.
The indictment alleges that PAGE did not self-surrender to FCI Fort Dix on November 17, 2017.
The U.S. Marshals Service located and arrested PAGE at a hotel in Branford on December 7.
The charge of failure to surrender for service of a federal sentence carries a maximum term of imprisonment of 10 years, which must be imposed consecutively to the underlying sentence.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Guilford Contractor Pleads Guilty to Submitting False Claim to the U.S. Postal ServiceRead the Press Release
John H, Durham, United States Attorney for the District of Connecticut, and Scott Pierce, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, announced that MARCEL VAN WOLVELAERD, 62, of Guilford, waived his right to be indicted and pleaded guilty today in New Haven federal court to submitting false documents to the U.S. Postal Service.
According to court documents and statements made in court, VAN WOLVELAERD owns and operates CableComm, LLC. From approximately 2007 through 2014, the U.S. Postal Service (“USPS”) contracted with CableComm to perform repair and maintenance work at various USPS facilities. In 2017, VAN WOLVELAERD sought payment on certain repair and maintenance work done in Connecticut. Prior to making payment, the USPS requested that VAN WOLVELAERD show proof of his costs. In response, VAN WOLVELAERD submitted to the USPS a certified claim that included several invoices detailing his costs, including three false invoices from an electric company. Two of the invoices falsely inflated CableComm’s costs, and the third was entirely fictitious.
VAN WOLVELAERD is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on March 6, 2018, at which time he faces a maximum term of imprisonment of five years.
VAN WOLVELAERD is released on $20,000 bond pending sentencing.
This matter is being investigated by the U.S. Postal Service Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan.
Gresham Man Sentenced to 25 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
PORTLAND, Ore. – On Tuesday, December 12, 2017, U.S. District Court Judge Robert E. Jones sentenced Thomas Gene Duncan to 25 years in federal prison followed by a life term of supervised release. Duncan pleaded guilty on August 29, 2017, to one count each of the production and possession of child pornography in federal court. He pleaded guilty to one count each of first-degree rape, second-degree sodomy, and unlawful sexual penetration in state court. Duncan will be sentenced in state court in early January 2018.
“Thomas Duncan is a convicted sex offender who will justly serve the next 25 years in federal prison. Sadly, the potential physical, psychological, and emotional toll on his victim is a predictable consequence of this kind of predatory behavior,” said Billy J. Williams, United States Attorney for the District of Oregon. “It is our hope that this sentence will provide a sense of closure for the victim. The law enforcement community applauds such courage and strength in the face of adversity,” continued U.S. Attorney Williams, “and will continue to pursue similar perpetrators who engage in this reprehensible and destructive conduct.”
"Young, vulnerable victims don't just suffer abuse once at the hands of their attacker. They are violated every day - often for years - as strangers living in the dark corners of the Internet trade images and videos," said Renn Cannon, Special Agent in Charge of the FBI in Oregon. "I am proud of the people on the FBI's Child Exploitation Task Force who work day in and day out to bring justice to these children and put their abusers behind bars."
According to court documents, Duncan used a dark web bulletin board and website called “Playpen” to search for and obtain child pornography. The server hosting Playpen was seized by the FBI early in 2015. Between October 20, 2014 and March 4, 2015, Duncan logged a total of 72 hours on the site. In a one-week period beginning February 25, 2015, he downloaded 89 files. Duncan admitted to possessing a large collection of pornography on his personal computer, and provided investigators with the password for the device.
A forensic review of Duncan’s computer revealed approximately 4,000 images and 120 videos of child pornography. Investigators also discovered sexually explicit images and videos of his fiancée’s then 12-year-old daughter, and troubling though non-pornographic images of her younger sister. Duncan admitted to sexually abusing the 12-year-old on multiple occasions. He was taken into custody following the execution of a search warrant at the residence he shared with his fiancée and her daughters.
The case was investigated by the FBI’s Portland Division and prosecuted by Gary Y. Sussman, Assistant United States Attorney for the District of Oregon.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Child sexual exploitation investigations – many of them undercover – are conducted in FBI field offices by Child Exploitation Task Forces (CTEFs), which combine the resources of the FBI with those of other federal, state, and local law enforcement agencies. Portland FBI’s CETF consists of agents and task force officers from the Beaverton Police Department, Portland Police Bureau, Tigard Police Department, Hillsboro Police Department, and the Clackamas County Sheriff’s Office. The FBI’s CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child pornography.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Gloucester County, New Jersey, Man Who Secretly Filmed Girls in His Bathroom Gets 15 Years in PrisonRead the Press Release
CAMDEN, N.J. – A Williamstown, New Jersey, man was sentenced today to 180 months in prison for receiving images and videos of child sexual abuse and for producing child pornography using a hidden camera in his bathroom, Acting U.S. Attorney William E. Fitzpatrick announced.
Eric Ziegler, 39, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of receiving child pornography and one count of possessing child pornography. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Ziegler admitted that from February 2015 through Dec. 3, 2015, he received and possessed multiple images of child sexual abuse over the Internet which he saved to his computer, external hard drives, compact discs and other electronic media located inside his home. Among the content on Ziegler’s devices were images focusing on the genitalia of several girls, which Ziegler admitted producing using a camera hidden in a bathroom at his Williamstown residence.
In addition to the prison term, Judge Rodriguez ordered Ziegler to serve a lifetime of supervised release and pay $215,000 in restitution.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation. He also thanked the Monroe Township Police Department under the direction of Chief John McKeown for its assistance.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense Attorney: Bruce Warren Esq., Sewell, New Jersey
Former South Jersey Letter Carrier Admits Scheme to Steal and Cash Postal Money OrdersRead the Press Release
CAMDEN, N.J. – A Sicklerville, New Jersey, man today admitted his role in a scheme to steal and convert over 100 blank U.S. Postal Service (USPS) money orders, resulting in nearly $100,000 in losses, Acting U.S. Attorney William E. Fitzpatrick announced.
Marc Saunders, 39, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of transmitting and presenting unlawfully issued USPS money orders with intent to defraud the United States.
According to the documents filed in this case and statements made in court:
Saunders was employed as a letter carrier at the USPS branch in New Lisbon, New Jersey.
Saunders admitted that while working at the New Lisbon branch, he stole a money order imprinting machine and more than 100 USPS money orders. Saunders used the machine to produce completed money orders that appeared legitimate, which he then gave to middle men that he recruited. The middle men recruited individuals to cash the money orders for a small fee. The middle men and Saunders kept the rest of the money.
The charge for transmitting and presenting unlawfully issued USPS money orders carries a maximum penalty of five years in prison and $250,000 fine. Sentencing is scheduled for March 20, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the USPS, Office of the Inspector General, under the direction of Acting Special Agent in Charge Kenneth M. Cleevely of the Eastern Area Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Teri S. Lodge Esq., Marlton, New JerseyFormer Physician’s Office Employee Charged in Fraud SchemeRead the Press Release
Memphis, TN – A federal grand jury returned an indictment against a former data entry clerk for Crescent Medical Corporation, U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced today.
According to the indictment, Gloria Harris, 55, was employed as a data entry clerk at Crescent Medical Corporation, which was solely owned by Dr. Ahsan Kathawala. The indictment alleges that between January 2016 and March 2017, Harris fraudulently obtained $292,500 by stealing checks payable to Crescent and depositing them to bank accounts at Trustmark Bank and Suntrust Bank which she had fraudulently opened in the name of Crescent without Dr. Kathawala’s knowledge or authorization.
In addition to the bank fraud charge associated with the scheme to deposit the stolen checks, the indictment also alleges that Harris fraudulently used Social Security Numbers which did not belong to her to update a residential apartment lease and to open bank accounts at Trustmark and Suntrust.
Harris faces up to 30 years’ imprisonment; a one million dollar fine and 5 years supervised release on the bank fraud charge. Each charge of fraudulent use of Social Security Number carries a maximum penalty of 5 years’ imprisonment; a $250,000 fine and 3 years supervised release.
This case was investigated by the United States Secret Service Economic Crimes Task Force. Assistant U.S. Attorney Carroll L. Andre’ III is prosecuting this case on the government’s behalf.
Former Mercyhurst University Employee Charged with Falsifying a Person’s Acceptance StatusRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charges of use of a false visa, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Daniel Cabanillas, 47, of Erie, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Cabanillas was the Designated School Official (DSO) for the Student Exchange Visitor Program at Mercyhurst University until he was terminated on February 19, 2015. The indictment alleges during the period he was employed as the DSO, Cabanillas did knowingly make materially false statements on Form I-20, Certificate of Eligibility for Nonimmigrant (F-1) Student Status - for Academic and Language Students, subscribing to as true, the false certification of a person’s acceptance status at the university.
The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Department of Homeland Security, Homeland Security Investigations and U.S. Border Patrol conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Meadville Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
ERIE, Pa. - A former resident of Meadville, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal firearms and drug laws, Acting United States Attorney Soo C. Song announced today.
The three-count indictment named Charles Joseph Butter, 41, as the sole defendant.
According to the indictment presented to the court, on September 7, 2017, Butter possessed several firearms while being a convicted felon. In addition, he is also charged with possessing pseudoephedrine with intent to manufacture methamphetamine and attempting to manufacture methamphetamine.
The law provides for a maximum total sentence of 30 years in prison, a fine of $250,0000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former InSouth Bank Employee Sentenced for Embezzling Almost $900,000Read the Press Release
Memphis, TN – A former InSouth bank employee was sentenced by United States District Judge Sheryl H. Lipman to serve 33 months in federal prison in connection with her embezzlement of $890,000. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
Lauren Melissa McDivitt, 41, of Covington, Tennessee pled guilty in August to charges filed by the U.S. Attorney’s Office that she embezzled $888,470 between 2006 and 2016, while employed as Branch Administrator at InSouth’s Atoka, Tennessee branch.
According to information presented in court at the time of her plea, McDivitt accomplished the theft by creating false and fraudulent withdrawal tickets to make it appear that bank customers with IRA and CD accounts were withdrawing funds. To conceal theft, McDivitt signed customers up to receive monthly statements online via email, and linked the customer accounts to a dummy/fake e-mail account where the statements, which reflected the unauthorized withdrawals, would be e-mailed.
McDivitt thereafter prepared fraudulent monthly statements, which reflected interest accrued, but omitted her unauthorized withdrawals. McDivitt mailed the fraudulent statements to the customers. In some instances, McDivitt also made internal transfers between accounts on various customers to cover amounts she had taken from other customers.
U.S. Attorney D. Michael Dunavant said: “The long term financial fraud and embezzlement committed by the defendant is disturbing and far-reaching. The abuse of her position of trust and authority as a small town bank manager for her own personal gain had a significant negative impact on the employees and customers of InSouth Bank, as well as the whole Atoka and Tipton County community. The U.S. Attorney’s Office places a high priority on protecting the security, deposits and assets of financial institutions, and this sentence demonstrates that commitment.”
As part of her sentence, McDivitt was also ordered to pay restitution in the amount of $947,951.30 to InSouth Bank and to serve a period of 3 years of supervised release to begin after her incarceration.
This case was investigated by the Atoka, Tennessee Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney Carroll L. Andre’ III prosecuted this case on the government’s behalf.
Former Employee Charged with Attempted ExtortionRead the Press Release
HOUSTON – A 28-year-old former employee of BP Corporation North America Inc. has been charged with five counts of wire fraud, announced Acting U.S. Attorney Abe Martinez.
On Nov. 29, 2017, a federal grand jury in Houston returned a five-count indictment against George Koutsostamatis, of Chicago.
He was taken into custody in Chicago last week. He made his appearance in Houston federal court this morning before U.S. Magistrate Judge Dena Palermo. Trial has been set for Jan. 29, 2018, before U.S. District Sim Lake.
According to the indictment, Koutsostamatis was an employee of BP. While employed there, Koutsostamatis allegedly emailed BP and falsely represented to them that he had infiltrated BP’s computer network system. He then allegedly demanded payment or he would release information stored on the computer network.
If convicted of wire fraud, he faces up to 20 years in prison and a possible $250,000 fine.
The FBI Houston Cyber Task Force investigated this case. The FBI Houston Cyber Task Force is a multi-agency task force responsible for investigating, pursuing and defeating cyber criminals who seek to exploit our nation’s most significant computer systems, networks and critical infrastructure. The Houston field office of the FBI led the investigation with assistance from U.S. Attorney’s Offices in Houston and Chicago, FBI – Chicago field office and the National Crime Agency in the United Kingdom.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Florida Man Sentenced to Eight Years on Bank Robbery ChargesRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced John Kershaw Barrette, 38, of Jacksonville, Florida, to 96 months in prison and three years of supervised release on bank robbery charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and today’s sentencing hearing, on January 3, 2017, at approximately 11:00 a.m., Barrette, wearing a faded red wig, entered the Asheville Savings Bank located at 1012 Patton Avenue, in Asheville. Court records show that Barrette waited in line with a cellular phone to his ear, which he appeared to be using. When it was his turn to approach the teller, Barrette handed the teller a note and placed a large envelope on the counter. The note instructed the teller to give Barrette cash in denominations of $100 and $50. The note also warned the teller that the envelope contained a bomb, which Barrette could remotely activate using his cellular phone. The note further instructed the teller to wait eight minutes before calling the police. According to court records, the teller, afraid that Barrette would activate the explosive device if she did not do as instructed, complied with Barrette’s demands. Barrette fled the location with $3,250 in cash, leaving the purported bomb on the counter. Court records indicate that law enforcement determined that the device was a sham.
According to filed court documents, on the same day shortly before 1:00 p.m., Barrette, wearing the same faded red wig, entered the PNC Bank located at 1007 Smokey Park Highway, in Candler, N.C. Barrette again presented the teller with an envelope that he claimed contained a bomb and demanded money from the teller. The teller complied out of fear that Barrette would detonate the bomb. After receiving $3,180.00 in cash, Barrette fled the bank, leaving on the counter the envelope containing the purported bomb, which was again ultimately determined to be a sham device. Barrette was apprehended by law enforcement shortly thereafter.
In April 2017, Barrette pleaded guilty to one count of bank robbery. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the FBI, the Asheville Police Department and the Buncombe County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Daniel Bradley, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Federal and State Trustees Reach $4.5 Million Settlement with Three Companies for Natural Resource Damages Incurred at Sheboygan River & Harbor Superfund SiteRead the Press Release
The United States and the State of Wisconsin today announced three settlements totaling in excess of $4.5 million with Tecumseh Products Co., Thomas Industries, Inc., and Wisconsin Public Service Corp. to resolve claims for natural resource damages at the Sheboygan River & Harbor Superfund Site brought under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as the Superfund Law. The Sheboygan River Site encompasses the lower 14 river miles of the Sheboygan River, from Sheboygan Falls downstream to and including the Sheboygan Harbor in Lake Michigan, as well as adjoining floodplain areas.
According to the complaint, filed simultaneously with the settlement today in the Eastern District of Wisconsin, the three companies are liable for historic industrial discharges of polychlorinated biphenyls (PCBs) and/or polycyclic aromatic hydrocarbons (PAHs) at the Sheboygan River Site. PCBs and PAHs were identified in river sediments at different locations throughout the Site in sufficient concentrations to cause injury to many types of natural resources, including invertebrates, fish, amphibians, birds, and mammals. In addition, PCB and PAH-contaminated natural resources resulted in the loss of recreational fishing services.
“The restoration work enabled by this settlement will make significant contributions to the environment in the area of the Sheboygan River and nearby Lake Michigan,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “We are particularly pleased to have been able to work alongside the State of Wisconsin, the U.S. Department of Interior, and the National Oceanic and Atmospheric Administration to achieve this positive outcome.”
Under CERCLA, federal and state natural resource trustees have authority to seek compensation for natural resources harmed by hazardous industrial waste and by-products discharged into the Sheboygan River. The natural resource trustees include the U.S. Department of the Interior, acting through the U.S. Fish and Wildlife Service; the U.S. Department of Commerce, acting through the National Oceanic and Atmospheric Administration; and the Wisconsin Department of Natural Resources. The proposed settlements require payment of $1,295,500 to Sheboygan County as partial reimbursement for costs it incurred in acquiring the Amsterdam Dunes restoration project area for preservation and include $2,532,500 to be used on preservation and restoration activities consistent with a proposed Restoration Plan/Environmental Assessment that is also being made available for public review and comment today. Of the possible alternatives, the draft Restoration Plan recommends preservation and implementation of restoration activities at the Willow Creek and Amsterdam Dunes project properties. The remainder of the settlement funds will reimburse trustee agencies for their work at the site.
The three Defendants previously paid approximately $32 million to clean up the Sheboygan River and Harbor Superfund site under prior agreements with the U.S Environmental Protection Agency. Additional millions of dollars were invested by the federal government through the Great Lakes Restoration Initiative along with state, city and county funds to further speed river restoration and restore navigation to the Sheboygan River.
“The Sheboygan River and its wetlands provide important habitats for migratory birds and fish, and support hunting and fishing activities for local residents,” said Charlie Wooley, Deputy Midwest Regional Director for the U.S. Fish and Wildlife Service. “Today’s settlement means we can help natural resources affected by PCBs and other contaminants, and at the same time, benefit local communities. We look forward to working with local conservation organizations to protect and restore important habitat.”
The former Schuchardt farm property, approximately 140 acres within the City of Sheboygan, will be protected to create the Willow Creek Preserve. Willow Creek is a unique natural feature within an urban environment, supporting a diverse habitat mix along it and the Sheboygan River. Conservation of Willow Creek has been identified as a high priority for maintaining and improving fish and wildlife populations and habitat in the Sheboygan River area. Under the Preferred Alternative, settlement funds would be used to transfer the 140 acres from the City to the Glacial Lakes Conservancy, a private, non-profit land conservation organization in the Sheboygan area, and for habitat restoration and recreational fishing enhancements.
“We are excited to continue the restoration work with our partners in the City of Sheboygan and Sheboygan County on this incredible resource. The projects that will be implemented will provide additional benefits to the local community and this wonderful river and coastal area.” said Patrick Stevens, Administrator of the Environmental Management Division at the Wisconsin Department of Natural Resources.
Amsterdam Dunes consists of 184 acres abutting Lake Michigan within the Sheboygan River Basin, just north of the Ozaukee-Sheboygan County line. Amsterdam Dunes is a place of unique coastal habitats and wildlife, and consists of remnants of natural lands and waters that have largely disappeared from Wisconsin’s landscape. The Trustees have worked with Sheboygan County to identify potential restoration options within Amsterdam Dunes, including restoration of wetland hydrology, stream habitat improvements, invasive species management, and conversion of agricultural land to more ecologically valuable habitat.
“We're pleased to contribute NOAA's expertise to these projects in Sheboygan County that preserve approximately 324 acres of important ecological habitat and support more recreational opportunities and public access,” said W. Russell Callender, assistant NOAA administrator for the National Ocean Service.
The consent decree is subject to a 30-day public comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice web site at www.usdoj.gov/enrd/Consent_Decrees.html.
The draft Restoration Plan/Environmental Assessment is also subject to a 30 day public comment period and is available for review at https://www.fws.gov/midwest/es/ec/nrda/SheboyganHarbor or at the Mead Public Library.
Federal Judge Imposes Sentence for Attempted Meth ImportationRead the Press Release
LAREDO, Texas – A 34-year-old Kansas man has been ordered to federal prison for organizing an attempt to import more than five kilograms of heroin through the Lincoln Juarez Bridge in Laredo, announced Acting U.S. Attorney Abe Martinez. Misael Segovia pleaded guilty
Today, U.S. District Judge Diana Saldana imposed a 140-month term of imprisonment to be immediately followed by five years of supervised release.
On Sept. 27, 2016, Amy Leigh Housholder, 31, of Emporia, Kansas, applied for admission into the United States at the Lincoln Juarez Bridge in downtown Laredo. At that time, a search of her vehicle uncovered false compartments in the battery containing approximately five kilograms of heroin.
The Investigation uncovered Segovia as the individual who had arranged for the drugs to be imported into the United States and ultimately transported to Chicago. When confronted with this information, Segovia admitted he had helped Householder by translating between her and the individuals in Mexico supplying the heroin.
Segovia had taken Householder from Emporia, Kansas, to Wichita where he purchased a bus ticket for her to travel to Laredo. Housholder was previously sentenced 50 months in federal prison for her role in the scheme.
Segovia was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Alfredo De La Rosa and Christopher Dale Howard are prosecuting the case.
Ellsworth Man Sentenced on Child Pornography ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Ellsworth AFB, South Dakota, man convicted of Receipt of Child Pornography and Possession of Child Pornography was sentenced on December 8, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Colby Haggerty, age 26, was sentenced to 10 years of imprisonment, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Haggerty was charged on May 20, 2014, and was found guilty of both offenses after a four-day federal jury trial in July 2017. The conviction stems from Haggerty downloading at least 1,000 pornographic images of children, including infants, between 2009 and 2015, while living on Ellsworth Air Force Base and in Rapid City.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Haggerty was immediately turned over to the custody of the U.S. Marshals Service.
East Texas Imaging Companies and Owners Resolve Swapping and Medicare Fraud AllegationsRead the Press Release
PLANO, Texas – Multiple mobile imaging companies, along with their owners Dennis Whitsell and Jonathan Graham Lane, will pay the United States $300,000 after improperly billing Medicare for transportation charges related to portable x-ray services, announced Acting United States Attorney Brit Featherston. One of the companies also entered into a deferred prosecution agreement with the United States to resolve swapping allegations, which implicated the Anti-Kickback Statute.
“The United States Attorney’s Office for the Eastern District of Texas keeps a watchful eye on the use of public funds,” said Acting U.S. Attorney Featherston. “When a provider fails to comply with Medicare or Medicaid program rules, taxpayers expect to be repaid.”
In March 2011, Relators Kevin P. McDonough and Boyd K. Billington filed a lawsuit under the qui tam provisions of the False Claims Act. Relators filed their suit in the Eastern District of Texas in an action captioned United States ex rel. McDonough, et al. v. PDQ Imaging Services, LLC, et al., Case Number 4:11-cv-00138. In their action, Relators alleged, among other things, that the defendants improperly billed for portable x-ray services and unlawfully paid kickbacks to skilled nursing facilities (SNFs) in exchange for patient referrals, an arrangement Relators referred to as “swapping.”
The United States intervened in the action for purposes of settlement. Defendants PDQ Imaging Services, LLC, PDQ Ultrasound Services, LLC, PDQ Mobile X-Ray Services, PDQ Mobile X-Ray, LLC, Dennis Whitsell, and Jonathan Graham Lane (together, “Defendants”) agreed to pay the United States $300,000 to resolve allegations that they submitted improper claims to the Medicare program for transportation charges and entered into an agreed judgment in favor of the United States.
The False Claims Act permits a private citizen (called a “relator”) with knowledge of fraud against the Government to bring a lawsuit on behalf of the United States and to share in the recovery. Under the settlement announced today, Relators will receive a 19% share of the United States’ recovery.
The United States also undertook a criminal investigation regarding the allegations of improper remuneration paid by PDQ Imaging Services, LLC (PDQ) in exchange for referrals from a number of SNFs. The criminal investigation revealed that from in or around January 2008, and continuing through in or around March 2012, PDQ offered and paid illegal remunerations, in the form of free and significantly discounted portable x-ray services, to administrators of SNFs in exchange for the referral of the SNF’s Medicare beneficiaries to PDQ for the purpose of furnishing portable x-ray services. The free and significantly discounted portable x-ray services were services covered by the SNF’s Part A per diem payment and were provided to the SNFs in exchange for the SNF referring to PDQ other Federal health care program business, namely Part B business excluded from consolidated billing, that PDQ could bill directly to Medicare.
To resolve the matter, PDQ entered into a deferred prosecution agreement with the United States in an action captioned United States v. PDQ Imaging Services, LLC, Case Number 4:17-CR-199, wherein PDQ acknowledged that the arrangements entered into between PDQ and the SNFs violated the Anti-Kickback Statute and amounted to unlawful “swapping” arrangements. As part of the agreement, PDQ agreed to cooperate with the government in the investigation and prosecution of the SNFs and individuals involved in the illegal swapping arrangements and to maintain internal controls, including compliance with the Anti-Kickback Statute, and all other applicable federal health care laws.
This matter was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the United States Attorney’s Office for the Eastern District of Texas. The civil settlement was negotiated by Assistant U.S. Attorney Joshua Russ. Assistant U.S. Attorneys Nathaniel Kummerfeld and L. Frank Coan, Jr. prosecuted the criminal case for the United States.
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Dual Israeli/Russian Citizen Pleads Guilty to Money Laundering Charge in International SchemeRead the Press Release
WASHINGTON - Stanislav Nazarov, 46, a dual citizen of Israel and Russia, pled guilty today in the U.S. District Court for the District of Columbia to a federal charge of conspiracy to commit money laundering stemming from his role in an international scheme.
The announcement was made by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and John L. Phillips, Assistant Inspector General for Investigations for the U.S. Department of Treasury.
Nazarov was among 19 people charged earlier this year in federal indictments outlining various international fraud and money laundering conspiracies. He was indicted in January 2017 and arrested in March 2017 in Israel. Nazarov later waived extradition to the United States and made his first appearance on Oct. 20, 2017, in the U.S. District Court for the District of Columbia. He has remained in custody since his initial arrest.
The money laundering conspiracy charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under the plea agreement, Nazarov has agreed to pay a forfeiture money judgment of $50,000.
The Honorable Colleen Kollar-Kotelly scheduled sentencing for March 2, 2018.
According to a statement of offense submitted at today’s plea hearing, in or around 2013, Nazarov agreed to become partners with an unnamed money launderer who worked with individuals and groups engaged in fraudulent schemes in Israel and elsewhere. In return for his assistance, Nazarov was to receive a share of proceeds that his partner made from various fraudulent schemes. In one such scheme, a cyber-phishing scam was carried out in 2015 that tricked a director of a company into wiring $1.4 million to a bank account in the United States.
In December 2016, Nazarov obtained what he believed to be a portion of that $1.4 million by receiving $50,000 at his location in Israel. According to the statement of offense, Nazarov received that money by orchestrating a sophisticated money laundering scheme whereby the $50,000 was first transferred to Russia, and then to Nazarov in Israel.
This case is being investigated by the FBI’s Washington Field Office and the U.S. Department of Treasury, Office of the Inspector General. Assistance has been provided by the U.S. Marshals Service, the Department of Justice’s Office of International Affairs, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Washington, D.C., and the Israeli National Police. The FBI Legal Attaché in Tel Aviv, Israel, also provided assistance.
The case is being prosecuted by Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys Michael J. Marando and David Kent of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Paralegal Specialists Brittany Phillips, Christopher Toms, and C. Rosalind Pressley.
Decatur Doctor Sentenced for Illegal Distribution of HydrocodoneRead the Press Release
URBANA, Ill. – A doctor who operated a walk-in clinic in Decatur, Ill., Sukhwinder Multani, has been ordered to serve 14 months in federal prison for illegal distribution of hydrocodone, a controlled substance. In addition, Multani, 43, of the 3700 block of N. Ashley Court, was prohibited from working in the medical field during his incarceration period and the three years of supervised release to follow his release from prison. The federal Bureau of Prisons will provide Multani, who remains released on bond, the date and location to report to begin serving his prison sentence.
According to court documents, Multani operated his clinic, known as Universal Urgent Care, at 3767 E. US Route 36, also in Decatur. Multani advertised that his clinic was “open seven days a week,” and charges “$40 per visit.”
On Nov. 14, 2016, Multani admitted that on three occasions in 2014, he dispensed hydrocodone, a controlled substance, outside the course of professional medical practice and not for any legitimate medical purpose. At the time he committed the offenses, Multani was an authorized Drug Enforcement Administration registrant, engaged in private practice.
According to public records of the Illinois Department of Financial and Professional Regulation, Division of Professional Regulation, Multani’s medical licenses were ordered suspended in 2014.
Assistant U.S. Attorney Jason M. Bohm represented the government in the prosecution of Multani. The U.S. Drug Enforcement Administration conducted the investigation of the charges.
Dallas Resident Pleads Guilty to a Scheme to Defraud the IRSRead the Press Release
DALLAS — Jose Dominguez Berroa, aka “Ana Maria Rodriguez,” “Martha Vargas,” and “Michelle Dominguez,” of Dallas, appeared in federal court this morning and pleaded guilty before U.S. Magistrate Judge David L. Horan to one count of wire fraud, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Berroa faces a maximum penalty of twenty years in federal prison, and a $250,000 fine. The defendant could also be ordered to pay restitution. Berroa will remain on bond pending sentencing, which is set for April 4, 2018.
Co-defendant Rufus Kimangi Kariuki is scheduled to begin trial on April 23, 2018.
According to the plea agreement factual resume, from February 2012 through December 2012, Berroa and others opened several bank accounts in and around Dallas using false alias names and fraudulent passports. During this time Berroa and others filed approximately 18 fraudulent tax returns and obtained fraudulent refunds totaling at least $314,932 from the IRS.
After the fraudulent tax refunds were deposited into the bank accounts, according to the factual resume, Berroa used debit cards to purchase money orders at local stores and would give the blank money orders to Kariuki. Kariuki then distributed blank money orders to Berroa and to others who participated in the scheme.
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Cuch Pleads Guilty to Assault on a Federal Officer and Possession of a Firearm Following a Felony ConvictionRead the Press Release
SALT LAKE CITY -- Jarvis Charlie Cuch, age 28, of Ft. Duchesne, pleaded guilty to assault on a federal officer and possession of a firearm after a felony conviction in U.S. District Court Monday afternoon. The plea agreement includes a stipulated 12-year sentence, subject to the Court’s approval.
As a part of stipulated facts included in the plea agreement, Cuch agreed that on Dec. 18, 2016, Bureau of Indian Affairs (BIA) police officers working in Ft. Duchesne attempted to initiate a traffic stop on a vehicle he was driving. Cuch fled from the BIA officers. As the officers continued their pursuit, Cuch admitted he reached out of the vehicle window and fired two rounds from a .40 caliber semi-automatic pistol, according to the plea agreement.
The pursuit went from Ft. Duchesne through Vernal City. Vernal City police officers and Uintah County Sheriff’s Office deputies assisted the BIA in apprehending Cuch after his tires were spiked and his car came to a stop in Vernal.
He admitted that he forcibly assaulted, resisted, intimidated, and interfered with the BIA officers while they were engaged in the performance of their official duties. He also admitted that in discharging the firearm during the incident, he violated a federal law related to using a firearm during and in relation to a crime of violence.
Cuch, a convicted felon, was prohibited under federal law from possessing a firearm.
The plea agreement also includes a stipulation that Cuch will serve 60 months of supervised release when he finishes his prison sentence. U.S. District Judge Dale A. Kimball set a sentencing hearing for Feb. 20, 2018, at 2:30 p.m.
Cuch was on escape status with federal authorities when the December 2016 incident with the BIA officers occurred. U.S. District Judge Tena Campbell sentenced Cuch to 30 months in federal prison in August 2015 for a firearms violation. The sentence was to be followed by 36 months of supervised release. The U.S. Bureau of Prisons transferred Cuch to a halfway house in Salt Lake City on Aug. 31, 2016, pending his release on Jan. 27, 2017. Cuch was placed on escape status on Sept. 26, 2016, when he left the halfway house without permission.
Special agents of the FBI investigated the case. Assistant U.S. Attorneys Isaac Workman and Michael Thorpe in the U.S. Attorney’s Office prosecuted the case. Federal prosecutors acknowledged the important contributions of Vernal police officers and Uintah County Sheriff’s Office deputies for their assistance in stopping Cuch’s car and assisting with his arrest after his assault on the federal officers.
Couple sentenced to federal prison for drug distribution conspiracy involving mail theftRead the Press Release
CHARLESTON, W.Va. – A couple who conspired to steal oxycodone and hydrocodone from packages mailed from the Department of Veterans Affairs to veterans and then sold the pills from the stolen packages was sentenced to federal prison today, announced United States Attorney Carol Casto. Amber Fox, 28, of Lesage in Cabell County, was sentenced to two and a half years in prison after previously pleading guilty to mail theft. David Grove, Jr., 39, of Chillicothe, Ohio, was sentenced to two years in prison after previously pleading guilty to conspiracy to distribute pain pills. Both Fox and Grove were also ordered to pay $453.80 in restitution.
Fox was a federal postal support employee who worked in the Charleston Processing and Distribution Center. She used her job to steal pain pills by identifying packages that contained oxycodone and hydrocodone, specifically packages from the VA to veterans who were prescribed pain medication. Fox admitted that on March 17, 2015, she stole a package that contained 112 hydrocodone pills mailed from the VA to a veteran living in Raleigh County. After stealing the packages, Fox took the pills to the home that she shared with Grove in East Bank in Kanawha County. Together, they took some of the pills themselves and sold the remaining pills. Fox admitted to stealing between 45 and 50 postal packages containing thousands of oxycodone and hydrocodone pills from August 2014 to April 9, 2015. On April 9, 2015, law enforcement executed search warrants at the East Bank residence and located over 500 stolen oxycodone and hydrocodone pills. Both Fox and Grove gave statements admitting their involvement in the mail theft and drug distribution conspiracy. Fox is no longer an employee with the United States Postal Service.
The United States Postal Service, Office of Inspector General, and the Metropolitan Drug Enforcement Network Team conducted the investigation, with assistance from the United States Department of Veterans Affairs. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentences.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Coordinated Federal and State Law Enforcement Operation Results in the Arrest of More Than 35 Bakersfield Gang Members and AssociatesRead the Press Release
BAKERSFIELD, Calif. — Today, the Federal Bureau of Investigation, the Bakersfield Police Department, the United States Attorney’s Office, the California Department of Justice, the California Highway Patrol, and the Kern County District Attorney’s Office announced the result of a multi-agency operation in Bakersfield that resulted in the arrest of more than 35 members and associates of the West Side Crips (WSC), a local criminal street gang on federal and state charges including burglary, illegal gun possession, drug sales, and murder. State and federal law enforcement teams also executed more than 30 residential search warrants.
The arrests are a result of a 10-month investigation that began in March 2017. Federal agents drafted a 200-page affidavit in support of federal complaints and search warrants that details several WSC members’ alleged crimes. The alleged crimes presented in the federal and state cases include weapons violations, unlawful possession of a firearm, assault with a deadly weapon, robbery, money laundering, methamphetamine sales, crack cocaine sales, opiate sales, attempted murder and murder. The affidavit also details WSC members’ plan to shoot into a crowd of approximately 200 people, including rival gang members, at a local park in early October 2017. Their plan was thwarted by law enforcement as a result of this investigation. A listing of the individuals arrested and the specific charges they face is attached to this release. The charges brought today are allegations — all defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney Talbert stated: “This operation is another example of how my office has worked closely with our state, local and federal law enforcement partners to combat violent criminal street gangs and their associates. As part of our Project Safe Neighborhood initiative, we are committed to collaborating with these partners to hold accountable those who make our communities unsafe.”
Bakersfield Police Chief Lyle Martin stated, “This gang has victimized our city through a system of murder and intimidation. We are using the resources of our city, county, state and federal authorities to stop senseless acts of gun violence that are traumatizing and killing our city’s children. This is the enforcement piece to the department’s community-wide approach to addressing gang violence. “
“Violent gangs threaten the safety and well-being of entire communities, blighting the neighborhoods they dwell in and placing lives of innocent bystanders at risk, “ said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our law enforcement partners to identify, disrupt, and dismantle gangs to protect the public. We also rely on our community relationships in the effort to remove violent gangs from neighborhoods to ensure our region and families have an opportunity to thrive.”
“My office remains dedicated to working with all law enforcement agencies to successfully solve and prosecute the perpetrators of these violent crimes, “ said Kern County District Attorney Lisa Green.
"This violent gang has killed innocent people and escalated violence in our Bakersfield neighborhoods. Today's successful takedown shows that when local, state and federal law enforcement authorities work together to combat violence, we can improve our communities. We are committed to making our neighborhoods safer by prosecuting street gangs to the fullest extent of the law," said California Attorney General Xavier Becerra.
This case is the product of an investigation by the Federal Bureau of Investigation, California Department of Justice, California Highway Patrol, Bakersfield Police Department, and Kern County District Attorney’s Office. Assistant United States Attorneys Angela Scott and Vincenza Rabenn are prosecuting the case.
More than 300 law enforcement personnel from over 20 law enforcement agencies participated in today’s operation. In addition to the investigating agencies the following agencies participated in today’s arrests and searches: Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Marshals Service, U.S. National Guard, California Department of Corrections and Rehabilitation, California Department of Justice Bureau of Firearms, Fresno Methamphetamine Task Force (FMTF), Merced Area Gang Narcotic Enforcement Team (MAGNET), Madera Narcotic Enforcement Team (MADNET), Tulare Area Regional Gang Enforcement Team (TARGET), Kern County Probation Department, Kern County Sheriff’s Department, Kings County Sheriff’s Office, Tulare County Sheriff’s Office, and Coalinga Police Department.
Federal defendants are as follows and are all residents of Bakersfield:
Tommie Thomas, 35, distribution of methamphetamine; William Thomas, 35, distribution of crack cocaine; Danny Willis, 33, felon in possession of a firearm; Gary Pierson, 36, felon in possession of a firearm; Ladaireus Jones, 24, felon in possession of a firearm; Bernard Warren, 18, felon in possession of a firearm; Manuel Cruz III, 37, conspiracy to possess with intent to distribute marijuana; Luis Fernandez, 26, distribution of methamphetamine; Myron Dewberry, 44, felon in possession of a firearm; and Bryshanique Allen, 21, money laundering.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Coordinated Federal and State Law Enforcement Operation Results in the Arrest of More Than 35 Bakersfield Gang Members and AssociatesRead the Press Release
BAKERSFIELD, Calif. — Today, the Federal Bureau of Investigation, the Bakersfield Police Department, the United States Attorney’s Office, the California Department of Justice, the California Highway Patrol, and the Kern County District Attorney’s Office announced the result of a multi-agency operation in Bakersfield that resulted in the arrest of more than 35 members and associates of the West Side Crips (WSC), a local criminal street gang on federal and state charges including burglary, illegal gun possession, drug sales, and murder. State and federal law enforcement teams also executed more than 30 residential search warrants.
The arrests are a result of a 10-month investigation that began in March 2017. Federal agents drafted a 200-page affidavit in support of federal complaints and search warrants that details several WSC members’ alleged crimes. The alleged crimes presented in the federal and state cases include weapons violations, unlawful possession of a firearm, assault with a deadly weapon, robbery, money laundering, methamphetamine sales, crack cocaine sales, opiate sales, attempted murder and murder. The affidavit also details WSC members’ plan to shoot into a crowd of approximately 200 people, including rival gang members, at a local park in early October 2017. Their plan was thwarted by law enforcement as a result of this investigation. A listing of the individuals arrested and the specific charges they face is attached to this release. The charges brought today are allegations — all defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney Talbert stated: “This operation is another example of how my office has worked closely with our state, local and federal law enforcement partners to combat violent criminal street gangs and their associates. As part of our Project Safe Neighborhood initiative, we are committed to collaborating with these partners to hold accountable those who make our communities unsafe.”
Bakersfield Police Chief Lyle Martin stated, “This gang has victimized our city through a system of murder and intimidation. We are using the resources of our city, county, state and federal authorities to stop senseless acts of gun violence that are traumatizing and killing our city’s children. This is the enforcement piece to the department’s community-wide approach to addressing gang violence. “
“Violent gangs threaten the safety and well-being of entire communities, blighting the neighborhoods they dwell in and placing lives of innocent bystanders at risk, “ said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our law enforcement partners to identify, disrupt, and dismantle gangs to protect the public. We also rely on our community relationships in the effort to remove violent gangs from neighborhoods to ensure our region and families have an opportunity to thrive.”
“My office remains dedicated to working with all law enforcement agencies to successfully solve and prosecute the perpetrators of these violent crimes, “ said Kern County District Attorney Lisa Green.
"This violent gang has killed innocent people and escalated violence in our Bakersfield neighborhoods. Today's successful takedown shows that when local, state and federal law enforcement authorities work together to combat violence, we can improve our communities. We are committed to making our neighborhoods safer by prosecuting street gangs to the fullest extent of the law," said California Attorney General Xavier Becerra.
This case is the product of an investigation by the Federal Bureau of Investigation, California Department of Justice, California Highway Patrol, Bakersfield Police Department, and Kern County District Attorney’s Office. Assistant United States Attorneys Angela Scott and Vincenza Rabenn are prosecuting the case.
More than 300 law enforcement personnel from over 20 law enforcement agencies participated in today’s operation. In addition to the investigating agencies the following agencies participated in today’s arrests and searches: Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Marshals Service, U.S. National Guard, California Department of Corrections and Rehabilitation, California Department of Justice Bureau of Firearms, Fresno Methamphetamine Task Force (FMTF), Merced Area Gang Narcotic Enforcement Team (MAGNET), Madera Narcotic Enforcement Team (MADNET), Tulare Area Regional Gang Enforcement Team (TARGET), Kern County Probation Department, Kern County Sheriff’s Department, Kings County Sheriff’s Office, Tulare County Sheriff’s Office, and Coalinga Police Department.
Federal defendants are as follows and are all residents of Bakersfield:
Tommie Thomas, 35, distribution of methamphetamine; William Thomas, 35, distribution of crack cocaine; Danny Willis, 33, felon in possession of a firearm; Gary Pierson, 36, felon in possession of a firearm; Ladaireus Jones, 24, felon in possession of a firearm; Bernard Warren, 18, felon in possession of a firearm; Manuel Cruz III, 37, conspiracy to possess with intent to distribute marijuana; Luis Fernandez, 26, distribution of methamphetamine; Myron Dewberry, 44, felon in possession of a firearm; and Bryshanique Allen, 21, money laundering.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Colorado Home Healthcare Business Owner Pleads Guilty to Tax EvasionRead the Press Release
A Brighton and Denver, Colorado, business owner pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Bob Troyer for the District of Colorado.
According to documents and information provided to the court, Michelle Medina, 51, owned and operated RHHS Inc., also doing business as Reliable Home Health Services Inc., which provided home healthcare services. From 2008 through 2011, Medina concealed hundreds of thousands of dollars in personal income by having RHHS Inc. directly pay her personal expenses and by withdrawing cash from the company’s bank accounts for personal use. Medina did not inform her tax return preparer of this additional income and filed false individual income tax returns underreporting her income. Medina also failed to file 2008 through 2011 corporate income tax returns for RHHS. She admitted her actions caused a total tax loss of between $550,000 and $1.5 million.
U.S. District Court Judge Philip A. Brimmer scheduled sentencing for March 13, 2018. Medina faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Troyer commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Kathleen M. Barry and Benjamin J. Weir of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Chicago Investment Manager Indicted on Federal Fraud Charges for Allegedly Swindling $10 Million from Clients and LendersRead the Press Release
CHICAGO — A Chicago investment manager has been indicted for allegedly swindling more than $10 million from clients and lenders.
SHAWN BALDWIN, who owned and controlled various investment-related firms in Chicago, exaggerated his financial success and professional connections to fraudulently obtain more than $10 million from at least 17 investors and lenders, according to an indictment returned in federal court in Chicago. Baldwin falsely claimed that their funds would be invested in stocks and other investment products, when, in fact, Baldwin spent the money for his own personal benefit, the indictment states. The fraud scheme alleged in the indictment began in 2006 and continued until May of this year.
The indictment was returned on Dec. 7, 2017, and ordered unsealed on Monday. It charges Baldwin, 51, of Olympia Fields, with eight counts of wire fraud. Baldwin pleaded not guilty at a Monday arraignment in federal court in Chicago. A status hearing is set for Dec. 28, 2017, at 1:00 p.m., before U.S. District Judge John Robert Blakey.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
According to the indictment, Baldwin obtained funds from individual investors, as well as from corporate lenders who lent him money for use in business and personal dealings. Baldwin claimed that compliance officers and professional advisors were affiliated with his firms, when, in fact, no such relationships existed, the indictment states. Baldwin also deceived the investors and lenders by misrepresenting and minimizing the serious disciplinary actions taken against him by regulators, the indictment states. The regulatory actions included the revocation of his certifications with the Financial Industry Regulatory Authority in 2009, and a permanent prohibition from offering securities sales or investment advice, which the State of Illinois imposed in 2013.
Baldwin attempted to conceal the scheme by furnishing victims with fraudulent account statements that misrepresented the value of their funds, the indictment states. Baldwin also lulled his victims by falsely maintaining that he was working on lucrative business deals and developing new contacts that would lead to profits from initial public stock offerings, the indictment states. In reality, Baldwin knew he could not pay back investors because he had lost or spent their money, the charges allege.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Matthew Getter.
Ceremonial Administration of the Oath of Office for United States Attorney R. Trent ShoresRead the Press Release
TULSA, Okla.— Chief Judge Gregory K. Frizzell will administer the ceremonial oath of office to United States Attorney R. Trent Shores on Friday, December 15, 2017, at 2:00 p.m.
WHO: United States Attorney R. Trent Shores
WHAT: Ceremonial Administration of the Oath of Office to United States Attorney R. Trent Shores
WHEN: 2:00 p.m. CST
4th Floor, Ceremonial Courtroom
Page Belcher Courthouse 333 West 4th Street
Tulsa, Oklahoma 74103NOTE: Government-issued photo I.D. (such as a driver’s license) necessary for admission to the courthouse. Point of Contact is Anna Montgomery at (918) 382-2784
Caldwell Woman Pleads Guilty to Obtaining Controlled Substances by FraudRead the Press Release
BOISE – Carrie Lynn Johnson, 42, pleaded guilty yesterday to obtaining controlled substances by fraud, U.S. Attorney Bart M. Davis announced. A Boise federal grand jury indicted Johnson on September 14, 2017.
According to the plea agreement, Johnson worked as a medical assistant in a medical office from approximately January to December, 2016. While she was employed at the medical office, she took possession of, and filled out, blank prescriptions from two practitioners. Using the stolen prescriptions, she not only forged prescriptions to herself but also used her spouse’s name, her children’s names, and others. Johnson took the prescriptions to pharmacies in Canyon County and filled them for herself. The forged prescriptions were mainly for Schedule II controlled substances. For example, on May 23, 2016, Johnson filled a forged prescription for 150 tablets of oxycodone 30 mg and on January 11, 2017, she filled a forged prescription for 150 tablets of hydrocodone/APAP 10/325 mg. Johnson later worked at another medical office in Payette, Idaho, where she called-in an unauthorized prescription.
The charge of obtaining controlled substances by fraud is punishable by up to four years in prison, a maximum fine of $250,000, and up to one year of supervised release.
Sentencing is set for February 28, 2017, in front of Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Nampa Police Department with assistance from the Drug Enforcement Administration.
Burleson Man Sentenced to 12 Years in Federal Prison for Attempting to Meet a 13-Year-Old for Sex at a Fort Worth HotelRead the Press Release
FORT WORTH, Texas — Preston Anthony King, 23, of Burleson, Texas, was sentenced today by Senior U.S. District Judge Terry R. Means to 12 years in federal prison and 20 years of supervised release. The sentence follows King’s guilty plea in August 2017 to one count of enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
King has been in custody since November 2016 on a related complaint.
According to documents filed in the case, on March 14, 2016, a Fort Worth Police Officer acting in an undercover capacity and posing as a 13-year-old girl responded to an advertisement that King posted on Craigslist. The description of the advertisement indicated that King was looking to engage in sexual intercourse. During the conversation, the officer told King that she was 13 years old, and later in the conversation King told the officer that he wanted to engage in sexual intercourse with her. King agreed to meet, who he thought was a 13-year-old girl, on March 15, 2016, at a hotel room in Fort Worth, Texas, to engage in sexual intercourse. When King arrived at the agreed location the Fort Worth Police Department took King into custody.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Fort Worth Police Department investigated the case. Assistant U.S. Attorney Megan Fahey is in charge of the prosecution.
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Brooklyn Man Sentenced for Intending to Sell Crack in North CountryRead the Press Release
ALBANY, NEW YORK – Tyleek Deramus, age 19, of Brooklyn, New York, was sentenced yesterday to 27 months in prison for possessing crack cocaine with the intent to distribute it.
The announcement was made by Acting United States Attorney Grant C. Jaquith, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division and New York State Police Superintendent George P. Beach II.
As part of his guilty plea, Deramus admitted that on October 13, 2016, he transported approximately 47 grams of crack cocaine from New York City to Plattsburgh, New York, intending to sell the crack cocaine in the Witherbee, New York, area.
Senior United States District Judge Thomas J. McAvoy also imposed a 3-year term of supervised release, to begin after Deramus is released from prison.
This case was investigated by the DEA and New York State Police, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Bristol Man Sentenced to 10 Years in Federal Prison for Distributing FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JARED McBRIARTY, 32, of Bristol, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for distributing fentanyl and other controlled substances.
According to court documents and statements made in court, in late December 2015, the DEA’s Hartford Task Force and New Britain Police Department received information that Kyle Petersen, of New Britain, was selling fentanyl powder, prescription pills and marijuana. DEA Task Force Officers and the New Britain Police Department Special Services Unit initiated an investigation and made multiple controlled purchases of fentanyl from Petersen. The investigation, which included court-authorized wiretaps, revealed that John Casadei, of Morris, used the darknet, an internet network that can only be accessed through the use of specific software or authorizations, to purchase large quantities of fentanyl that were shipped from China. Casadei also obtained and distributed various prescription pills, including Xanax and oxycodone. Casadei then supplied fentanyl and various prescription pills to McBRIARTY who, in turn, supplied them to Petersen. Petersen distributed the drugs to other individuals who sold them throughout central Connecticut.
McBRIARTY, Petersen, Casadei and other individuals involved in this narcotics distribution ring were arrested on May 19, 2016. On that date, law enforcement searched a New Britain residence that Petersen used as a stash location and seized approximately $740,000 in cash, approximately 3.2 kilograms of MDMA (commonly known as “ecstasy”), and more than 40,000 Xanax pills. A search of Petersen’s residence revealed additional quantities of narcotics and more than $11,000 in cash. Law enforcement subsequently seized approximately $80,000 from Petersen’s bank account.
On April 18, 2017, McBRIARTY pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 400 grams or more of fentanyl.
Petersen and Casadei pleaded guilty to related charges. On July 19, Petersen was sentenced to 120 months of imprisonment. Casadei awaits sentencing.
McBRIARTY, who is released on a $250,000 bond, was ordered to report to prison on January 23, 2018.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office; the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments, and the Food and Drug Administration. Agencies assisting the investigation include the U.S. Marshals Service, U.S. Postal Inspection Service, Homeland Security Investigations, New Britain State’s Attorney’s Office and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Brazilian National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national pleaded guilty today in federal court in Boston to a federal immigration crime.
Josilei DeCastro, a/k/a Marcos Santos, a/k/a Marcos Augusto Dos Santos, 37, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Feb. 27, 2018.
In May 2016, DeCastro was arrested and charged in state court with multiple counts of sexual assault on a nine-year-old child. In July 2016, DeCastro was indicted on those charges, and his case is scheduled for trial in January 2018.
On Dec. 9, 2016, while held on the aforementioned state charges, DeCastro was encountered by law enforcement officers at the Middlesex House of Corrections and determined to be illegally present in the United States. DeCastro was previously deported on July 17, 2000.
DeCastro 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 Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Birch Tree Man Indicted for Stealing Timber from National ForestRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Birch Tree, Mo., man was indicted by a federal grand jury today for stealing timber from a national forest.
John R. Marlow, 46, of Birch Tree, was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Marlow stole government property worth more than $1,000 between Jan. 1, 2016, and March 20, 2017. Marlow allegedly stole timber from federal property in Oregon County, Mo.
Marlow is also charged with one count of cutting and removing timber from public lands and one count of maintaining a trail without authorization within the Mark Twain National Forest.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the U.S. Forest Service, the Oregon County, Mo., Sheriff’s Department and the Alton, Mo., Police Department.
Beckley man admits role in federal drug conspiracyRead the Press Release
BLUEFIELD, W.Va. – A Beckley man pleaded guilty today for his role in a drug trafficking conspiracy, announced United States Attorney Carol Casto. Dominic J. Copney, 24, entered his guilty plea to conspiracy to distribute and to possess with intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. Copney is one of 23 defendants indicted in June 2017 after a long-term investigation of drug trafficking in Southern West Virginia.
Copney admitted that between October 2016 and June 28, 2017, he took part in a drug trafficking conspiracy with multiple participants that was responsible for distributing controlled substances in and around Raleigh County. During the course of the conspiracy, Copney also admitted to collecting money from other members of the drug trafficking organization that had been obtained from selling and distributing illegal controlled substances. Copney admitted that throughout the conspiracy, he distributed approximately three kilograms of cocaine and over 100 grams of heroin.
Copney faces at least five and up to 40 years in federal prison when he is sentenced on April 17, 2018.
Other individuals implicated as a result of this drug investigation have entered guilty pleas and are awaiting sentencing. Cheyenne Fragale and Macon Fragale, two brothers from Boomer in Fayette County, previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, a quantity of oxycodone, and a quantity of heroin. The both face a mandatory minimum of 10 years and up to life in federal prison when they are sentenced on March 14, 2018.
This prosecution was made possible through the cooperative efforts of several investigating agencies. The investigation was led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service provided assistance throughout the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of these prosecutions. The plea hearing was held before Senior United States District Judge David A. Faber.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Bar Owner Sentenced to 42 Months in PrisonRead the Press Release
Michael Hoffner, Sr., 52, of Voorhees, New Jersey, was sentenced today to 42 months in prison for wire fraud, announced United States Attorney Louis D. Lappen. The Honorable Mitchell S. Goldberg also imposed a three year term of supervised release and ordered the defendant to pay $87,060 in restitution and to forfeit $82,643 in proceeds.
According to the superseding indictment Hoffner owned the Brown Street Pub in Philadelphia, Pennsylvania. At his guilty plea hearing on July 31, 2017, Hoffner admitted that on 40 occasions between September and December 2012, Hoffner used a stolen credit number to make charges at the pub to credit and debit cards issued by American Express, Navy Federal Credit Union, USAA, ACNB, and the State Employees Credit Union of Maryland. The average fraudulent charge was more than $2,000. The cardholders were not aware of and did not authorize these transactions. The proceeds of these transactions, more than $87,000, went into an account that Hoffner controlled.
The case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General, the Internal Revenue Service-Criminal Investigation Division, and the United States Secret Service, and is being prosecuted by Assistant United States Attorneys David J. Ignall and Christopher J. Mannion.
Aurora Man Sentenced to Two Years in Federal Prison for Operating Illegal Steroid Lab out of His HomeRead the Press Release
CHICAGO — An Aurora man has been sentenced to two years in federal prison for manufacturing illegal steroids and distributing them to dozens of customers.
CHRISTOPHER C. HICKSON, 25, used bulk powders he had imported from China to manufacture anabolic steroid pills. Hickson operated a makeshift laboratory in his Aurora residence and distributed the pills to more than 100 customers in the United States and Canada.
The case against Hickson was part of “Operation Cyber Juice,” a federal investigation that targeted the illegal importation of steroids purchased overseas and manufactured in the United States.
Hickson previously pleaded guilty to one count of drug conspiracy and one count of money laundering. In addition to the 24-month prison term, U.S. District Judge Andrea R. Wood on Monday ordered Hickson to pay a $100,000 personal money judgment.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
In October 2013, U.S. Customs and Border Protection agents intercepted a Chinese parcel addressed to Hickson’s residence. A laboratory analysis determined that the parcel contained approximately 436 grams of the powder Stanozolol, a steroid classified as a Schedule III controlled substance. A court-authorized search of Hickson’s home in November 2014 revealed steroid powder, more than 1,000 vials filled with liquid steroids, and hundreds of steroid pills and capsules. Hickson labeled his steroid brand “Rift Labs” and “truelab.”
The government is represented by Assistant U.S. Attorney Kartik K. Raman.
Atlanta Woman Is Handed Down Six-Month Sentence for Lying to Federal JudgeRead the Press Release
CHARLOTTE, N.C. – Tonya Leshun Hall, 43, of Atlanta, Georgia, was sentenced to six months in prison yesterday for lying in federal court, following her guilty plea to a criminal contempt charge, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney presided over the case.
According to court documents, Hall testified in August 2016 during a pair of hearings in a civil lawsuit between plaintiff Antonio Stukes and defendant Debra Antney filed in U.S. District Court. Stukes was shot in a shoot-out along Independence Boulevard in February 2011 by members of a security detail working for rapper Waka Flocka Flame, whose given name is Juaquin Malphurs. In connection with the civil suit, Stukes sought to enforce a judgment for compensatory and punitive damages obtained against Antney, who is Waka Flocka’s mother, and various business entities allegedly under Antney’s control.
Court documents show that Hall testified on Antney’s behalf during the hearings on August 25 and August 30, 2016. During those hearings, Hall opined that, based on her review of Antney’s finances, Antney had “no money” to satisfy the judgment entered against her in the civil suit. In support of her opinion, Hall represented she had graduated from Emory University with a degree in accounting and was licensed as a certified public accountant in Georgia.
In yesterday’s hearing in federal court, Hall admitted that her claims about her credentials were not true. Hall did not graduate from Emory and was never licensed as a CPA. During the sentencing hearing, Judge Whitney explained that Hall’s lies “misled” the court in its assessment of Antney's ability to satisfy the judgment in the civil suit. In announcing Hall’s sentence, Judge Whitney highlighted the “need to promote respect for the law” and the importance of truthfulness in the justice system.
Hall pleaded guilty to one count of criminal contempt. She will be ordered to report to the Federal Bureau of Prisons to begin serving her sentence, upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The criminal contempt case was prosecuted by the U.S. Attorney’s Office in Charlotte.
Akayed Ullah Charged with Terrorism and Explosives Charges in Connection with the Detonation of a Bomb in New York CityRead the Press Release
Akayed Ullah, 27, of Brooklyn, New York, and a lawful permanent resident from Bangladesh, has been charged in the U.S. District Court for the Southern District of New York in connection with Ullah’s attempted detonation of a bomb in a subway terminal near the New York Port Authority Bus Terminal in New York City on Dec. 11. At least three people were injured as a result of the detonation.
Attorney General Jeff Sessions, Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr., of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement. Ullah will be presented before the Honorable Katharine H. Parker.
"The Department of Justice is relentless in taking on the terrorist threat," said Attorney General Sessions. "In my time back at the Department, nothing has impressed me more. Since 9/11, the Department has convicted more than 500 criminals of terrorism-related offenses, and the FBI has open terrorism investigations in every state. To make law enforcement’s job easier, however, Congress must finally fix our broken immigration system so that we admit to this country those who are likely to succeed, not violent criminals, gang members, terrorists, or their sympathizers. The fact that somebody won a lottery or is someone’s relative tells us nothing about their ability to assimilate. Nevertheless, the Department of Justice will prosecute this case and every other case to the fullest extent of the law, and we will bring those who threaten America to justice."
“Yesterday, in the heart of rush hour, as thousands came into New York City through the Port Authority Bus Terminal, Akayed Ullah allegedly came with a hate-filled heart and an evil purpose: to murder as many innocent people as he could and blow himself up in the process, all in support of the vicious terrorist cause of ISIS,” said Acting U.S. Attorney Kim. “Although yesterday he allegedly stood in the tunnels under Port Authority plotting to kill, today he stands charged with federal crimes of terrorism. Those alleged terrorists who target New York City do so because they feel threatened by the strength of our spirit, the height of our ambition and the breadth of our freedom. They come seeking to sow hate, fear and terror. But in New York City, they find instead strength, resilience and hope. Like many before him, Akayed Ullah will also find another great American virtue: justice. That justice will be tough, it will be fair and it will be swift.”
“Akayed Ullah let loose his plan to conduct a mass casualty attack, setting off a pipe bomb, strapped to his body, inside a New York City subway terminal, as we allege today,” said Assistant Director in Charge Sweeney. Like many others before him, we believe Ullah was inspired by a group that exploits technology in an effort to spread a violent ideology, effectively convincing sympathizers to commit terrorist acts worldwide. The nature of this particular strain of the terrorism threat can often mean evaluating behavior that doesn’t mean anything until you combine it with other pieces of intelligence. We rely heavily upon the community’s assistance to accomplish that task.”
“The act of terror committed in New York City yesterday accomplished nothing,” said Commissioner O’Neill. “It has not changed our way of life. It was a cowardly act, fueled by a false sense of purpose — motivated by propaganda in the shadows of the internet. What is clear is the resolve of New Yorkers to live in a free society, devoid of fear. I want to commend the work of the NYPD-FBI Joint Terrorism Task Force and the prosecutors in the Southern District for bringing today’s charges. Finally, our security requires every single member of the public’s help. It requires their vigilance. And it requires their care. If you see something that doesn’t look right, contact law enforcement.”
As alleged in the Complaint:
Islamic State of Iraq and Al-Sham (ISIS)
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts.
The Dec. 11, Attack
On Dec. 11, at approximately 7:20 a.m., an improvised explosive device (IED) detonated inside a subway terminal (the Subway Terminal) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the December 11 Attack). Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department located an individual later identified as Akayed Ullah lying on the ground in the vicinity of the explosion. Surveillance footage captured Ullah walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion.
Ullah was subsequently taken into custody by law enforcement. During the course of Ullah’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the Pipe Bomb). Specifically, law enforcement located, among other items, (i) a nine-volt battery inside Ullah’s pants pocket; (ii) wires connected to the battery and running underneath Ullah’s jacket; (iii) two plastic zip ties underneath Ullah’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip-ties, among other items.
After Ullah was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, Ullah stated, among other things, the following:
- Ullah constructed the Pipe Bomb and carried out the Dec. 11 Attack. Ullah was inspired by ISIS to carry out the Dec. 11 Attack, and stated, among other things, “I did it for the Islamic State.”
- Ullah constructed the Pipe Bomb at his residence in Brooklyn (the Residence);
- The Pipe Bomb was comprised of a metal pipe, which Ullah filled with explosive material that he created. Ullah used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb. Ullah filled the Pipe Bomb with metal screws, which he believed would cause maximum damage. Ullah used zip ties to secure the Pipe Bomb to his body.
- Ullah carried out the Dec. 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East. One of Ullah’s goals in carrying out the Dec. 11 Attack was to terrorize as many people as possible. He chose to carry out the attack on a work day because he believed that there would be more people.
- Ullah’s radicalization began in at least approximately 2014. Ullah viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands. He began researching how to build IEDs on the Internet approximately one year ago.
- On the morning of Dec. 11, shortly before carrying out the attack, Ullah posted a statement on his Facebook account referring to the President of the U.S., stating, in substance, “Trump you failed to protect your nation.” Ullah also posted a statement that he believed would be understood by members and supporters of ISIS to convey that Ullah carried out the attack in the name of ISIS.
Items Recovered from Ullah’s Residence
On Dec. 11, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in Ullah’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”
Three individuals were injured as a result of the Dec. 11 Attack.
* * *
Ullah is charged in a Complaint with one count of provision of material support and resources to a designated foreign terrorist organization which carries a maximum sentence of 20 years’ imprisonment; one count of using and attempting to use a weapon of mass destruction which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use which carries a maximum sentence of life imprisonment; one count of destruction of property by means of fire or explosives, which carries a mandatory minimum sentence of five years’ imprisonment and a potential maximum sentence of 20 years’ imprisonment; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of a weapon of mass destruction which carries a mandatory minimum consecutive sentence of 30 years’ imprisonment and potential maximum of life, all in connection with Ullah’s alleged detonation of an explosive device in New York City.
Mr. Sessions, Mr. Boente and Mr. Kim praised the outstanding investigative efforts of the FBI; the NYPD; the Department of Homeland Security, Homeland Security Investigations (HSI); and the Port Authority of New York and New Jersey’s Police Department. Ullah’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI and other agencies – and the U.S. Department of Justice’s National Security Division.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The prosecution is being handled by Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski and George D. Turner of the Southern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.
Akayed Ullah Charged with Terrorism and Explosives Charges in Connection with the Detonation of a Bomb in New York CityRead the Press Release
Akayed Ullah, 27, of Brooklyn, New York, and a lawful permanent resident from Bangladesh, has been charged in the U.S. District Court for the Southern District of New York in connection with Ullah’s attempted detonation of a bomb in a subway terminal near the New York Port Authority Bus Terminal in New York City on Dec. 11. At least three people were injured as a result of the detonation.
Attorney General Jeff Sessions, Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr., of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement. Ullah will be presented before the Honorable Katharine H. Parker.
"The Department of Justice is relentless in taking on the terrorist threat," said Attorney General Sessions. "In my time back at the Department, nothing has impressed me more. Since 9/11, the Department has convicted more than 500 criminals of terrorism-related offenses, and the FBI has open terrorism investigations in every state. To make law enforcement’s job easier, however, Congress must finally fix our broken immigration system so that we admit to this country those who are likely to succeed, not violent criminals, gang members, terrorists, or their sympathizers. The fact that somebody won a lottery or is someone’s relative tells us nothing about their ability to assimilate. Nevertheless, the Department of Justice will prosecute this case and every other case to the fullest extent of the law, and we will bring those who threaten America to justice."
“Yesterday, in the heart of rush hour, as thousands came into New York City through the Port Authority Bus Terminal, Akayed Ullah allegedly came with a hate-filled heart and an evil purpose: to murder as many innocent people as he could and blow himself up in the process, all in support of the vicious terrorist cause of ISIS,” said Acting U.S. Attorney Kim. “Although yesterday he allegedly stood in the tunnels under Port Authority plotting to kill, today he stands charged with federal crimes of terrorism. Those alleged terrorists who target New York City do so because they feel threatened by the strength of our spirit, the height of our ambition and the breadth of our freedom. They come seeking to sow hate, fear and terror. But in New York City, they find instead strength, resilience and hope. Like many before him, Akayed Ullah will also find another great American virtue: justice. That justice will be tough, it will be fair and it will be swift.”
“Akayed Ullah let loose his plan to conduct a mass casualty attack, setting off a pipe bomb, strapped to his body, inside a New York City subway terminal, as we allege today,” said Assistant Director in Charge Sweeney. Like many others before him, we believe Ullah was inspired by a group that exploits technology in an effort to spread a violent ideology, effectively convincing sympathizers to commit terrorist acts worldwide. The nature of this particular strain of the terrorism threat can often mean evaluating behavior that doesn’t mean anything until you combine it with other pieces of intelligence. We rely heavily upon the community’s assistance to accomplish that task.”
“The act of terror committed in New York City yesterday accomplished nothing,” said Commissioner O’Neill. “It has not changed our way of life. It was a cowardly act, fueled by a false sense of purpose — motivated by propaganda in the shadows of the internet. What is clear is the resolve of New Yorkers to live in a free society, devoid of fear. I want to commend the work of the NYPD-FBI Joint Terrorism Task Force and the prosecutors in the Southern District for bringing today’s charges. Finally, our security requires every single member of the public’s help. It requires their vigilance. And it requires their care. If you see something that doesn’t look right, contact law enforcement.”
As alleged in the Complaint:
Islamic State of Iraq and Al-Sham (ISIS)
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts.
The Dec. 11, Attack
On Dec. 11, at approximately 7:20 a.m., an improvised explosive device (IED) detonated inside a subway terminal (the Subway Terminal) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the December 11 Attack). Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department located an individual later identified as Akayed Ullah lying on the ground in the vicinity of the explosion. Surveillance footage captured Ullah walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion.
Ullah was subsequently taken into custody by law enforcement. During the course of Ullah’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the Pipe Bomb). Specifically, law enforcement located, among other items, (i) a nine-volt battery inside Ullah’s pants pocket; (ii) wires connected to the battery and running underneath Ullah’s jacket; (iii) two plastic zip ties underneath Ullah’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip-ties, among other items.
After Ullah was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, Ullah stated, among other things, the following:
- Ullah constructed the Pipe Bomb and carried out the Dec. 11 Attack. Ullah was inspired by ISIS to carry out the Dec. 11 Attack, and stated, among other things, “I did it for the Islamic State.”
- Ullah constructed the Pipe Bomb at his residence in Brooklyn (the Residence);
- The Pipe Bomb was comprised of a metal pipe, which Ullah filled with explosive material that he created. Ullah used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb. Ullah filled the Pipe Bomb with metal screws, which he believed would cause maximum damage. Ullah used zip ties to secure the Pipe Bomb to his body.
- Ullah carried out the Dec. 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East. One of Ullah’s goals in carrying out the Dec. 11 Attack was to terrorize as many people as possible. He chose to carry out the attack on a work day because he believed that there would be more people.
- Ullah’s radicalization began in at least approximately 2014. Ullah viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands. He began researching how to build IEDs on the Internet approximately one year ago.
- On the morning of Dec. 11, shortly before carrying out the attack, Ullah posted a statement on his Facebook account referring to the President of the U.S., stating, in substance, “Trump you failed to protect your nation.” Ullah also posted a statement that he believed would be understood by members and supporters of ISIS to convey that Ullah carried out the attack in the name of ISIS.
Items Recovered from Ullah’s Residence
On Dec. 11, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in Ullah’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”
Three individuals were injured as a result of the Dec. 11 Attack.
* * *
Ullah is charged in a Complaint with one count of provision of material support and resources to a designated foreign terrorist organization which carries a maximum sentence of 20 years’ imprisonment; one count of using and attempting to use a weapon of mass destruction which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use which carries a maximum sentence of life imprisonment; one count of destruction of property by means of fire or explosives, which carries a mandatory minimum sentence of five years’ imprisonment and a potential maximum sentence of 20 years’ imprisonment; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of a weapon of mass destruction which carries a mandatory minimum consecutive sentence of 30 years’ imprisonment and potential maximum of life, all in connection with Ullah’s alleged detonation of an explosive device in New York City.
Mr. Sessions, Mr. Boente and Mr. Kim praised the outstanding investigative efforts of the FBI; the NYPD; the Department of Homeland Security, Homeland Security Investigations (HSI); and the Port Authority of New York and New Jersey’s Police Department. Ullah’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI and other agencies – and the U.S. Department of Justice’s National Security Division.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The prosecution is being handled by Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski and George D. Turner of the Southern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.
Akayed Ullah Charged in Manhattan Federal Court with Terrorism and Explosives Charges in Connection with the Detonation of A Bomb in New York CityRead the Press Release
Jeff Sessions, the Attorney General of the United States, Joon H. Kim, the Acting U.S. Attorney for the Southern District of New York, Dana J. Boente, the Acting Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office (“FBI”), and James P. O’Neill Commissioner of the Police Department for the City of New York (“NYPD”), announced that AKAYED ULLAH has been charged in U.S. District Court for the Southern District of New York in connection with ULLAH’s detonation and attempted denotation of a bomb in a subway terminal near the New York Port Authority Bus Terminal in New York City on December 11, 2017. Three people were injured as a result of the detonation.
Attorney General Jeff Sessions said: “The Department of Justice is relentless in taking on the terrorist threat. In my time back at the Department, nothing has impressed me more. Since 9/11, the Department has convicted more than 500 criminals of terrorism-related offenses, and the FBI has open terrorism investigations in every state. To make law enforcement’s job easier, however, Congress must finally fix our broken immigration system so that we admit to this country those who are likely to succeed, not violent criminals, gang members, terrorists, or their sympathizers. The fact that somebody won a lottery or is someone’s relative tells us nothing about their ability to assimilate. Nevertheless, the Department of Justice will prosecute this case and every other case to the fullest extent of the law, and we will bring those who threaten America to justice.”
Acting U.S. Attorney Joon H. Kim said: “Yesterday, in the heart of rush hour, as thousands came into New York City through the Port Authority Bus Terminal, Akayed Ullah allegedly came with a hate-filled heart and an evil purpose: to murder as many innocent people as he could and blow himself up in the process, all in support of the vicious terrorist cause of ISIS. Although yesterday he allegedly stood in the tunnels under Port Authority plotting to kill, today he stands charged with federal crimes of terrorism. Those alleged terrorists who target New York City do so because they feel threatened by the strength of our spirit, the height of our ambition, and the breadth of our freedom. They come seeking to sow hate, fear, and terror. But in New York City, they find instead strength, resilience, and hope. Like many before him, Akayed Ullah will also find another great American virtue: justice. That justice will be tough, it will be fair, and it will be swift.”
FBI Assistant Director William F. Sweeney Jr. said: “Akayed Ullah let loose his plan to conduct a mass casualty attack, setting off a pipe bomb, strapped to his body, inside a New York City subway terminal, as we allege today. Like many others before him, we believe Ullah was inspired by a group that exploits technology in an effort to spread a violent ideology, effectively convincing sympathizers to commit terrorist acts worldwide. The nature of this particular strain of the terrorism threat can often mean evaluating behavior that doesn’t mean anything until you combine it with other pieces of intelligence. We rely heavily upon the community’s assistance to accomplish that task.”
NYPD Commissioner James P. O’Neill said: “The act of terror committed in New York City yesterday accomplished nothing. It has not changed our way of life. It was a cowardly act, fueled by a false sense of purpose—motivated by propaganda in the shadows of the internet. What is clear is the resolve of New Yorkers to live in a free society, devoid of fear. I want to commend the work of the NYPD-FBI Joint Terrorism Task Force and the prosecutors in the Southern District for bringing today’s charges. Finally, our security requires every single member of the public’s help. It requires their vigilance. And it requires their care. If you see something that doesn’t look right, contact law enforcement.”
As alleged in the Complaint:[1]
Islamic State of Iraq and Al-Sham
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts.
The December 11, 2017, Attack
On December 11, 2017, at approximately 7:20 a.m., an improvised explosive device (“IED”) detonated inside a subway terminal (the “Subway Terminal”) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the “December 11 Attack”). Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department (“PAPD”) located an individual later identified as AKAYED ULLAH lying on the ground in the vicinity of the explosion. Surveillance footage captured ULLAH walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion.
ULLAH was subsequently taken into custody by law enforcement. During the course of ULLAH’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the “Pipe Bomb”). Specifically, law enforcement located, among other items, (i) a nine-volt battery inside ULLAH’s pants pocket; (ii) wires connected to the battery and running underneath ULLAH’s jacket; (iii) two plastic zip ties underneath ULLAH’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip ties, among other items.
After ULLAH was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, ULLAH stated, among other things, the following:
- ULLAH constructed the Pipe Bomb and carried out the December 11 Attack. ULLAH was inspired by ISIS to carry out the December 11 Attack, and stated, among other things, “I did it for the Islamic State.”
- ULLAH constructed the Pipe Bomb at his residence in Brooklyn (“the Residence”);
- The Pipe Bomb was composed of a metal pipe, which ULLAH filled with explosive material that he created. ULLAH used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb. ULLAH filled the Pipe Bomb with metal screws, which he believed would cause maximum damage. ULLAH used zip ties to secure the Pipe Bomb to his body.
- ULLAH carried out the December 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East. One of ULLAH’s goals in carrying out the December 11 Attack was to terrorize as many people as possible. He chose to carry out the attack on a work day because he believed that there would be more people.
- ULLAH’s radicalization began in at least approximately 2014. ULLAH viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands. He began researching how to build IEDs on the Internet approximately one year ago.
- On the morning of December 11, 2017, shortly before carrying out the attack, ULLAH posted a statement on his Facebook account referring to the President of the United States, stating, in substance, “Trump you failed to protect your nation.” ULLAH also posted a statement that he believed would be understood by members and supporters of ISIS to convey that ULLAH carried out the attack in the name of ISIS.
Items Recovered from ULLAH’s Residence
On December 11, 2017, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in ULLAH’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”
Three individuals were injured as a result of the December 11 Attack.
* * *
ULLAH, 27, of Brooklyn, New York, is charged in the Complaint with one count of provision of material support and resources to a designated foreign terrorist organization, in violation of 18 U.S.C. § 2339B, which carries a maximum sentence of 20 years in prison; one count of using and attempting to use a weapon of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life in prison; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life in prison; one count of destruction of property by means of fire or explosives, which carries a mandatory minimum sentence of five years in prison and a potential maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of a weapon of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison and potential maximum of life, all in connection with ULLAH’s alleged detonation of an explosive device in New York City.
Mr. Sessions, Mr. Kim, and Mr. Boente praised the outstanding investigative efforts of the FBI, the NYPD, the Department of Homeland Security, Homeland Security Investigations (“HSI”), and the PAPD. ULLAH’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI, PAPD, and other agencies – and the U.S. Department of Justice’s National Security Division.
The prosecution is being handled by the Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski, and George D. Turner are in charge of the prosecution, with assistance from Trial Attorney Jerome Teresinski of the Counterterrorism Section of the Justice Department’s National Security Division.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
21st Century Oncology to Pay $26 Million to Settle False Claims Act AllegationsRead the Press Release
21st Century Oncology Inc. and certain of its subsidiaries and affiliates have agreed to pay $26 million to the government to resolve a self-disclosure relating to the submission of false attestations regarding the company’s use of electronic health records software and separate allegations that they violated the False Claims Act by submitting, or causing the submission of, claims for certain services provided pursuant to referrals from physicians with whom they had improper financial relationships.
“The Justice Department is committed to zealously investigating improper financial relationships that have the potential to compromise physicians’ medical judgment,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “However, we will work with companies that accept responsibility for their past compliance failures and promptly take corrective action.”
21st Century Oncology, which is headquartered in Fort Myers, Florida, owns and operates subsidiaries and affiliates throughout the United States that provide integrated cancer care. As part of its business, 21st Century Oncology’s subsidiaries and affiliates employ physicians in specialty fields such as radiation oncology, medical oncology, and urology.
The settlement announced today resolves conduct that was self-disclosed by the company regarding payments made by the government as part of the Medicare Electronic Health Records (EHR) Incentive Program. Under the Medicare EHR Incentive Program, physicians who attest to their meaningful use of certified EHR technology may receive incentive payments and avoid downward adjustments to certain Medicare claims. As part of its self-disclosure, 21st Century Oncology reported that it knowingly submitted, or caused the submission of, false attestations to CMS concerning employed physicians’ use of EHR software. The company further reported that, in support of the attestations, its employees falsified data regarding the company’s use of EHR software, fabricated software utilization reports, and superimposed EHR vendor logos onto the reports to make them look legitimate.
“This settlement represents our office’s continued commitment to ensuring compliance with important federal health care laws,” said Acting U.S. Attorney Stephen Muldrow of the Middle District of Florida. “We appreciate that 21st Century Oncology self-reported a major fraud affecting Medicare, and we are also pleased that the company has agreed to accept financial responsibility for past compliance failures.”
The settlement also resolves the government’s allegations regarding violations of the physician self-referral law (commonly referred to as the “Stark Law.”) The Stark Law prohibits an entity from submitting claims to Medicare for designated health services performed pursuant to referrals from physicians with whom the entity has a financial relationship unless certain designated exceptions apply. The government alleged that 21st Century Oncology and certain of its subsidiaries and affiliates violated the FCA by submitting, or causing the submission of, claims for services performed pursuant to referrals from physicians whose compensation did not satisfy any exception to the Stark Law.
The Stark Law allegations were originally brought in a lawsuit filed by Matthew Moore, 21st Century Oncology’s former Interim Vice President of Financial Planning, under the qui tam provisions of the False Claims Act. Under the Act, private parties may bring suit on behalf of the government and share in any recovery. Mr. Moore will receive $2,000,000 as his share of the recovery associated with the Stark Law allegations.
In addition to the civil settlement, 21st Century Oncology has entered into a new five-year Corporate Integrity Agreement with the Office of Inspector General of the United States Department of Health and Human Services (HHS-OIG), which obligates 21st Century Oncology to undertake substantial internal compliance reforms, including hiring independent review organizations to conduct annual claims and arrangements reviews.
“21st Century Oncology admitted to causing violation of the meaningful use regulations in order to fund an electronic health records system, as well as falsifying records to cover up those actions,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Separately, the government alleged that same company, through its affiliates and subsidiaries, caused certain physicians to enter into illegal financial arrangements. Providers engaging in similar behavior should expect attention from OIG.”
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
The investigation was handled by the Civil Division’s Commercial Litigation Branch and the Fort Myers Division of the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the U.S. Attorney’s Office for the Southern District of New York and HHS-OIG. The claims resolved by this settlement are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Moore v. 21st Century Oncology, LLC, No. 2:16-cv-99 (M.D. Fl.).
21st Century Oncology to Pay $26 Million to Settle False Claims Act AllegationsRead the Press Release
Fort Myers, FL – 21st Century Oncology Inc. and certain of its subsidiaries and affiliates have agreed to pay $26 million to the government to resolve a self-disclosure relating to the submission of false attestations regarding the company’s use of electronic health records software and separate allegations that they violated the False Claims Act by submitting, or causing the submission of, claims for certain services provided pursuant to referrals from physicians with whom they had improper financial relationships.
“The Justice Department is committed to zealously investigating improper financial relationships that have the potential to compromise physicians’ medical judgment,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “However, we will work with companies that accept responsibility for their past compliance failures and promptly take corrective action.”
21st Century Oncology, which is headquartered in Fort Myers, Florida, owns and operates subsidiaries and affiliates throughout the United States that provide integrated cancer care. As part of its business, 21st Century Oncology’s subsidiaries and affiliates employ physicians in specialty fields such as radiation oncology, medical oncology, and urology.
The settlement announced today resolves conduct that was self-disclosed by the company regarding payments made by the government as part of the Medicare Electronic Health Records (EHR) Incentive Program. Under the Medicare EHR Incentive Program, physicians who attest to their meaningful use of certified EHR technology may receive incentive payments and avoid downward adjustments to certain Medicare claims. As part of its self-disclosure, 21st Century Oncology reported that it knowingly submitted, or caused the submission of, false attestations to CMS concerning employed physicians’ use of EHR software. The company further reported that, in support of the attestations, its employees falsified data regarding the company’s use of EHR software, fabricated software utilization reports, and superimposed EHR vendor logos onto the reports to make them look legitimate.
“This settlement represents our office’s continued commitment to ensuring compliance with important federal health care laws,” said Acting U.S. Attorney Muldrow. “We appreciate that 21st Century Oncology self-reported a major fraud affecting Medicare, and we are also pleased that the company has agreed to accept financial responsibility for past compliance failures.”
The settlement also resolves the government’s allegations regarding violations of the physician self-referral law (commonly referred to as the “Stark Law.”) The Stark Law prohibits an entity from submitting claims to Medicare for designated health services performed pursuant to referrals from physicians with whom the entity has a financial relationship unless certain designated exceptions apply. The government alleged that 21st Century Oncology and certain of its subsidiaries and affiliates violated the FCA by submitting, or causing the submission of, claims for services performed pursuant to referrals from physicians whose compensation did not satisfy any exception to the Stark Law.
The Stark Law allegations were originally brought in a lawsuit filed by Matthew Moore, 21st Century Oncology’s former Interim Vice President of Financial Planning, under the qui tam provisions of the False Claims Act. Under the Act, private parties may bring suit on behalf of the government and share in any recovery. Mr. Moore will receive $2,000,000 as his share of the recovery associated with the Stark Law allegations.
In addition to the civil settlement, 21st Century Oncology has entered into a new five-year Corporate Integrity Agreement with the Office of Inspector General of the United States Department of Health and Human Services (HHS-OIG), which obligates 21st Century Oncology to undertake substantial internal compliance reforms, including hiring independent review organizations to conduct annual claims and arrangements reviews.
“21st Century Oncology admitted to causing violation of the meaningful use regulations in order to fund an electronic health records system, as well as falsifying records to cover up those actions,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Separately, the government alleged that same company, through its affiliates and subsidiaries, caused certain physicians to enter into illegal financial arrangements. Providers engaging in similar behavior should expect attention from OIG.”
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
The investigation was handled by Trial Attorney Kristen Murphy from the Department of Justice Civil Division's Commercial Litigation Branch and Assistant United States Attorney Kyle S. Cohen from the Fort Myers Division of the United States Attorney's Office for the Middle District of Florida, with assistance from the Department of Health and Human Services Office of Inspector General and the United States Attorney's Office for the Southern District of New York. The claims resolved by this settlement are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Moore v. 21st Century Oncology, LLC, No. 2:16-cv-99 (M.D. Fl.).
2017 Animal Cruelty Prosecutions Training to Be Held at Valdosta State UniversityRead the Press Release
On December 13-14, 2017, the United States Attorney’s Office for the Middle District of Georgia, the Environmental Crimes Section of the United States Department of Justice – Environment and Natural Resources Division, and the United States Department of Agriculture – Office of Inspector General – Investigations will be hosting a regional animal cruelty prosecutions training in Valdosta.
The training will be held on December 13-14, 2017 from 8:30 am to 5:00 pm each day. The training will be held in the Cypress Room at the Valdosta State University Center, 1203 N. Patterson Street (corner of Ann and N. Patterson).
The conference will provide participants with an overview of the federal animal welfare and cruelty statutes, investigation techniques, and prosecution challenges. During the training, the Humane Society of the United States, along with prosecutors and federal agents, will share their experience in handling dog fighting and animal cruelty cases.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 752-3511.
11 December 2017
Woman Charged with Defrauding the School District of PhiladelphiaRead the Press Release
A federal indictment was unsealed last Friday afternoon charging Patricia Cleary with wire fraud, mail fraud, social security fraud, aggravated identity theft and false statements to government agents, announced United States Attorney Louis D. Lappen, FBI Special Agent-in-Charge Michael T. Harpster, USPIS Inspector-In-Charge Daniel B. Brubaker, SSA OIG Special Agent-in-Charge Michael J. McGill, and City of Philadelphia Inspector General Amy Kurland.
According to allegations contained in the indictment, Patricia Cleary falsely and fraudulently presented herself as the tutor for a relative with special needs with the City of Philadelphia School District. Cleary used her maiden name, Patricia Goldstein, as the name for the fictitious tutor. She submitted a false W-9 for the fictitious tutor using the social security number of another person and a retired Pennsylvania teacher’s credentials. She prepared false invoices purportedly for tutoring services provided to a relative and submitted them to the School District from personal email accounts as well as an email account created for the fictitious tutor. After the School District stopped issuing payment on the tutoring invoices and required verification of the tutor’s credentials, Cleary continued to perpetuate the fraud by threatening the School District with a lawsuit, falsely alleging that she hired a tutor, sent the tutor’s IRS form and teaching credentials to the School District, and gave money directly to the tutor for the tutoring services the School District refused to pay. She also submitted false teaching certificates from two different states purportedly in the name of the fictitious tutor and fraudulently created a profile for the fictitious tutor in a system used by the School District to verify credentials, including identifying a stolen social security number of another person as belonging to the fictitious tutor.
As a result of her deceptive tactics, including the submission of false and fraudulent documents to the School District through emails and other documentation, Cleary received approximately $58,940.00 and attempted to receive approximately $33,090 from the School District to which she was not entitled.
“The defendant allegedly stole a victim’s identity and used it to defraud the Philadelphia School District by claiming that she was tutoring her special needs relative,” said United States Attorney Louis D. Lappen. “Our office will continue to prosecute scammers who seek to enrich themselves at the expense of members of our community who are entitled to benefit from valuable public programs that too often are targeted by venal criminals.”
“Stealing money from a cash-strapped school district, money meant to help people with special needs, is outrageous," said FBI Special Agent in Charge Harpster. "As alleged in the indictment, Cleary exploited a vulnerable family member to enrich herself - and when the school district grew suspicious and stopped sending checks, she brashly doubled down and threatened suit. The FBI is committed to investigating and holding responsible anyone fraudulently siphoning off public funds."
"Identify theft is a serious crime that effects millions of Americans each year, " This case is an example of how an identity thief can infiltrate an organization, pose as a legitimate tutor, and cause all of us to pay her an unearned salary,” said Daniel B Brubaker, Inspector in Charge of the Philadelphia Division of the US Postal Inspection Service. “This case illustrates how far reaching the effects of identity theft are, and the depths these criminals will go to receive ill-gotten gains. We take these crimes very seriously and we're dedicated to holding criminals accountable when they use the mail in furtherance of their criminal schemes"
“Patricia Cleary allegedly stole money from the School District that was meant to educate our children, who deserve and need quality education," said Amy Kurland, Inspector General for the School District and City of Philadelphia. "This indictment sends a message that we will not tolerate theft and that we will continue to work to eliminate fraud and ensure integrity in the District.”
Cleary is charged with wire fraud and mail fraud, which carry a maximum sentence of 20 years in prison and a $250,000 fine. Additionally, Cleary is charged with social security fraud, which carries a maximum sentence of 5 years’ imprisonment and a $250,000 fine, and aggravated identity theft, which carries a maximum sentence of 2 years’ imprisonment that must run consecutive to any other sentence and a $250,000 fine. Cleary also is charged with false statements to federal agents, which carries a maximum sentence of 5 years in prison and a $250,000 fine.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Social Security Administration Office of Inspector General, and the School District of Philadelphia Inspector General’s Office. It is being prosecuted by Assistant United States Attorney Tomika N.S. Patterson of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Wilmington Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – A Wilmington man pleaded guilty today in federal court in Boston to armed bank robbery.
Russell Dinovo, 52, pleaded guilty to one count of armed bank robbery before U.S. District Court Judge Richard G. Stearns. Sentencing is scheduled for March 7, 2018.
On Oct. 9, 2015, two individuals, wearing hooded sweatshirts with portions of their faces visible, entered a branch of the Hingham Institute for Savings in Boston. One of the robbers, later identified as Dinovo, vaulted the teller counter, forced open two tellers’ cash drawers, grabbed money, and put it into a duffel bag. Dinovo then demanded that a bank employee open the vault; the employee did, and Dinovo then removed money from the vault. The other individual, later identified as Anthony Pantone, remained in front of the counter throughout the entire robbery holding what appeared to be a handgun.
After stealing $16,320 from the bank, the two individuals fled on foot, but were captured a short time later in a cab with the duffel bag containing $16,320 and an airsoft gun.
Pantone pleaded guilty and was sentenced in August 2016 to 78 months in prison.
Dinovo faces a sentence of no greater than 25 years in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
Waterbury Man to Serve More Prison Time for Escaping from CustodyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHRISTOPHER BRYAN COLEMAN, 28, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for escaping from federal custody. Judge Bolden also ordered COLEMAN to serve the first 90 days of supervised release in home confinement.
According to court documents and statements made in court, on December 22, 2014, COLEMAN was sentenced in New Haven federal court to 42 months of imprisonment, followed by two years of supervised release, for possession of a firearm by a convicted felon. On May 24, 2017, COLEMAN was transferred from a federal prison in Pennsylvania to a halfway house in Waterbury to serve the remainder of his sentence. On July 16, 2017, he left the halfway house without prior authorization and did not return.
On August 9, 2017, the U.S. Marshals Service located COLEMAN at a private residence in Waterbury and arrested him.
On September 12, COLEMAN pleaded guilty to one count of escape from custody
COLEMAN’s criminal history also includes drug convictions and a conviction for escape in the first degree.
This matter was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Waterbury Man Pleads Guilty to Credit Card "Bust-Out" Scheme and Lying in Bankruptcy ProceedingRead the Press Release
John H, Durham, United States Attorney for the District of Connecticut, announced that JANZAYB KHAN, 29, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of conspiracy to commit bank fraud and one count of making a false oath in a bankruptcy proceeding in connection with a credit card “bust-out” scheme that defrauded more than a dozen financial institutions.
According to the court documents and statements made in court, KHAN provided his personal information to a co-conspirator so that the co-conspirator could obtain credit cards in KHAN’s name. In total, the co-conspirator obtained 31 credit cards in KHAN’s name from more than a dozen financial institutions. In many cases, the credit card applications contained false statements about KHAN’s income, assets, address and employment history. Then, within a short period in January 2013, nearly all of the available credit on the cards were rapidly utilized or “busted out.” More than $59,000 was spent on cash advances, gift cards and precious metals. Some of the proceeds from the cash advances were deposited and/or transferred to bank accounts in the name of KHAN’s co-conspirator and/or the co-conspirator’s relatives.
In addition, almost $70,000 was charged in sham transactions at three merchants, who then issued checks from the proceeds that were later deposited into bank accounts in the name of the co-conspirator and/or the co-conspirator’s relatives.
The co-conspirator paid KHAN approximately $10,000 in cash for his role in the scheme.
After the bust-out, there was more than $165,954 in accumulated debt on the 31 cards in KHAN’s name. In June 2013, KHAN filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court and attempted to discharge all of his credit card debt. In his bankruptcy court filings, KHAN falsely stated that the majority of his debt was due to gambling losses as casinos. KHAN also made a number of other false statements under oath during an examination by the U.S. Trustee in his bankruptcy case. The U.S. Bankruptcy Court later denied the discharge of KHAN’s debts.
KHAN was arrested on a federal criminal complaint on April 4, 2017.
Judge Meyer scheduled sentencing for March 5, 2018, at which time KHAN faces a maximum term of imprisonment of 35 years.
This matter is being investigated by the U.S. Secret Service and is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Two Defendants Plead Guilty to Conspiracy Related to Interstate Prostitution BusinessRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that LiangLiang Guo, 31, and Chengqi Li, 28, both of Flushing, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to use interstate facilities to promote prostitution and to transport individuals in interstate commerce with intent that such individuals would engage in prostitution. The charges carry a maximum penalty of five years in prison and a $250,000 fine.Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that the defendants were part of a multi-state prostitution business that sent female victims to cities and states across the Eastern United States to engage in commercial sex acts. As part of that business, Li and others posted advertisements on Backpage.com to set up meetings between clients and prostitutes in Tonawanda, NY and other cities and states. Guo acted as a driver for the prostitution business, driving the females to hotels where they would engage in commercial sex acts. Guo also collected the proceeds of the illicit prostitution business. Li assisted in the running of the business by posting the advertisements, arranging for the travel of the females, and receiving the money that represented was the profits of commercial sex acts.
“By their guilty pleas, the defendants admitted that theirs was a business plan which linked their bottom line to their ability to promote and facilitate the sexual exploitation of their workers,” noted U.S. Attorney Kennedy. “These felony convictions represent the just return that defendants have earned for investing themselves in such a morally bankrupt venture.”
“The guilty pleas acknowledge the defendants primary roles in a sex trafficking scheme with multiple victims,” said Homeland Security Investigations Special Agent-in-Charge Kevin Kelly. “HSI will continue to work with every stakeholder engaged in the effort to ensure traffickers are brought to justice and victims get the support they need.”The pleas are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III; the New York Police Department, under the direction of Chief James P. O’Neill; the South Portland, Maine Police Department, under the direction of Chief Edward Googins; and the Fairview Township Police Department, under the direction of Chief Jason C. Loper.
Defendant Guo’s sentencing is scheduled for March 19, 2018 at 9:30 a.m. and defendant Li’s sentencing is scheduled for April 9, 2018 at 10:00 a.m., both before Judge Vilardo.
Two Cincinnati Individuals Plead Guilty to Conspiracy to Sex Trafficking of ChildRead the Press Release
CINCINNATI – Eric Zyn Ho, 25, and Bryan Mathew Otero, 27, both of Cincinnati, pleaded guilty in U.S. District Court to one count of conspiracy to sex traffic a child. Ho also pleaded guilty to one count of conspiracy to produce child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Union Township Police Chief Scott Gaviglia and other members of the FBI’s Child Exploitation Task Force announced the pleas entered into today before U.S. District Judge Susan J. Dlott.
In May, the defendants conspired to harbor a 14-year-old female and caused her to engage in a commercial sex act.
Both defendants were charged by criminal complaint and arrested on May 4 and remain in custody. They were indicted by a federal grand jury in the same month.
Conspiracy to sex traffic children is a crime punishable by up to life in prison. Conspiracy to produce child pornography carries a mandatory minimum of 15 years in prison up to 30 years.
Pursuant to the Child Victims’ and Child Witnesses’ Rights Act, specific details of the plea agreements remain under seal.
U.S. Attorney Glassman commended the investigation of this case by the FBI, including FBI Cincinnati, Indianapolis and Kansas City field offices, and Union Township Police, as well as Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
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Turkish Citizen Makes Initial Appearance on Charges of Illegally Exporting Goods to IranRead the Press Release
United States Attorney Gregory J. Haanstad announced today that Resit Tavan, age 40, of Istanbul, Turkey, was arraigned in federal court in Milwaukee on an indictment returned June 27, 2017. Tavan, owner and president of Ramor Dis Ticaret, Ltd. (Ramor), a Turkish company, and Fulya Oguzturk are charged, along with Ramor, with conspiring to defraud the United States and to smuggle American made products to Iran in violation of the International Emergency Economic Powers Act (IEEPA). Pursuant to IEEPA, American goods may not be shipped to Iran without prior approval and specific licensing by the United States government.
The indictment charges that Tavan, Oguzturk, and Ramor arranged the purchase and acquisition of marine products manufactured in Wisconsin, for shipment to and use by Iran. The indictment alleges that the goods, specifically outboard engines, generators, and propulsion systems, were shipped first to Turkey and then to Iran without the knowledge of the manufacturers, and without the permission and license of the United States. The indictment further alleges that the marine products were intended for use by the Iranian navy.
In addition to the conspiracy charge, 18 U.S.C § 371, the indictment charges three counts of violating IEEPA, 50 U.S.C. § 1705(a); three counts of smuggling, 18 U.S.C. § 554(a); and six counts of money laundering, 18 U.S.C. § 1956(a)(2)(A). If convicted, Tavan faces up to 5 years in prison and a $250,000.00 fine on the conspiracy count; up to 20 years and a $1,000,000 fine on each IEEPA count; up to 10 years and a $250,000 fine on each smuggling count; and up to 20 years and a $500,000 fine on each money laundering count.
Tavan was arrested in Romania in June 2017, on an international arrest warrant issued at the request of the United States. Upon his arrest, the United States requested Tavan’s extradition from Romania. That process has ended with his arraignment today.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement. The case is being prosecuted by Assistant United States Attorney Paul L. Kanter and William Mackie, Trial Attorney, Counterintelligence & Export Control Section, National Security Division, U.S. Department of Justice.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700