Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 25 October 2017
Attorney General Jeff Sessions Recognizes South Dakota Prosecutor for Exceptional Service in Indian CountryRead the Press Release
Attorney General Jeff Sessions recognized 202 department employees for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony in Washington, DC. Gregg Peterman, Supervisory Assistant United States Attorney for the District of South Dakota, received national recognition for his work in Indian Country. Peterman was the recipient of the Attorney General’s Award for Exceptional Service in Indian Country – Outstanding Dedication to Lowering Crime Rates in Indian Country.
The awards ceremony took place at Constitution Hall near the White House, before hundreds of Justice Department employees and other award recipients, as well as Attorney General Sessions, the Deputy Attorney General, the Director of the FBI, and numerous other federal law enforcement officials. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
Peterman supervises six federal prosecutors in the Rapid City branch of the U.S. Attorney’s Office. The office is responsible for general crimes prosecutions in western South Dakota, including violent crime on the Pine Ridge Reservation. Under Peterman’s careful guidance, his talented team of prosecutors have persevered and achieved an appreciable increase in the number of defendants’ indicted year-upon-year out of the Rapid City office.
Peterman joined the U.S. Attorney’s Office for the District of South Dakota in 1995. Shortly after joining the office, he showed an interest in working on Indian Country issues, and quickly displayed a passion and energy focused on these cases. Over the years, he has handled some of the District’s toughest Indian Country matters, ranging from violent homicides to heart wrenching child sexual abuse cases.
He has been involved in numerous national Indian Country working groups and committees, including the Attorney General’s Task Force on Domestic Violence in Indian Country, as well as the Department of Justice Office for Victims of Crime Working Group addressing Alcohol Facilitated Sexual Assault in Indian Country. Peterman is a frequent lecturer on Indian Country issues at the Justice Department’s training center in South Carolina, and has provided law enforcement training to hundreds of Indian Country and other federal officers. He has co-authored two Indian Country articles for a Justice Department publication.
“Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions. “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”
“Gregg Peterman’s steadfast commitment and dedication to Indian Country over the past 22 years is unparalleled,” said Randy Seiler, U.S. Attorney for the District of South Dakota. “It is not an overstatement to say relations between the U.S. Attorney’s Office and the Oglala Sioux Tribe have never been stronger, more productive, and more respectful than they are right now. That is a direct result of Gregg’s extraordinary efforts to build that relationship. Gregg’s compassion, coupled with his tenacity, knowledge, and familiarity with Indian Country, makes him the model choice for the exceptional service award. His prosecutorial skills and expertise continue to be valuable tools in our ongoing efforts to improve public safety on reservations.”
Peterman has served as a pathfinder for the nation by leading the first Community Prosecution Project on the Pine Ridge Reservation implemented in 2010. Peterman embraced the challenge to establish a stronger presence on the reservation, and successfully created and strengthened relationships by setting up a satellite U.S. Attorney’s Office in Pine Ridge. Since then, he has maintained regular, productive, and proactive interactions through an unmatched level of one-on-one engagement with tribal leaders, agencies, and law enforcement personnel in an effort to stem the incidence of crime on the reservation, bring justice to victims of such crime, and carry on the Department’s mission in Indian Country.
Attorney General Jeff Sessions Hosts the 65th Annual Attorney General Awards Honoring Department Employees and Others for their ServiceRead the Press Release
WASHINGTON – Attorney General Jeff Sessions recognized 202 department employees for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony. Nineteen other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. The department will also present one posthumous award to Deputy Commander Patrick T. Carothers for exceptional heroism in the line of duty during a fugitive apprehension in Allenhurst, Georgia on Nov. 18, 2016, in which Deputy Commander Carothers was mortally wounded.
Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions. “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”
Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina said: “It is impossible to overstate the importance of the Melton case and the work of Mr. Duffy, Ms. Cooley and the entire trial team. The kidnapping and torture of a family member of a prosecutor of our community strikes at the heart of the rule of law in our society. If you are able to intimate prosecutors and law enforcement officers, we are left with little protection as citizens. So, I am very pleased to recognize this prosecution and those who worked so diligently to protect the rule of law for us all.
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
In the Eastern District of North Carolina Assistant United States Attorneys Dennis Duffy and Leslie Cooley received The John Marshall Award. The John Marshall Awards are the Department's highest awards offered to attorneys, for contributions and excellence in specialized areas of legal performance. Twelve awards in nine categories are presented this year. The award is in the Trail of Litigation category for their outstanding performance in conviction of a United Blood Nation Member.
This team is honored for its outstanding work in the conviction of United Blood Nation member Kelvin Melton in a jury trial, as well as the conviction by guilty plea of nine co-defendants, and the conviction of a tenth in a separate jury trial. In April of 2014, Melton orchestrated the kidnapping and torture of an Assistant District Attorney’s father as retribution for his State conviction and life sentence, all while incarcerated in the State of North Carolina’s maximum security prison. The victim spent five days bound to a chair, locked in a closet, deprived of food and water, beaten, tased, and forced to urinate on himself. The Federal Bureau of Investigation was able to utilize cellular telephone analysis and a Title III wiretap to locate and rescue the victim just hours after Melton gave the order to have him killed, and arrest nine individuals who had perpetrated a string of heinous crimes culminating in the kidnapping. The recipients conducted a sweeping probe into the North Carolina Department of Corrections to determine which corrupt officials were responsible for prisoner access to cellular telephones while incarcerated. The team took a tremendous amount of evidence and created a cohesive and powerful trial presentation, diligently prepared a large number of gang members and inmates for trial, and distilled hundreds of thousands of pages of digital evidence into a succinct overview that led to Melton’s conviction of all counts. The recipients accepted a case that posed significant personal risk, investigated and expertly prepared it for trial, and secured swift justice for one of the most dangerous criminals in the U.S. Attorney’s Office for the Eastern District of North Carolina’s history.
Attorney General Jeff Sessions Hosts the 65th Annual Attorney General Awards Honoring Department Employees and Others for Their ServiceRead the Press Release
WASHINGTON – Attorney General Jeff Sessions recognized 202 department employees for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony. Nineteen other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. The department will also present one posthumous award to Deputy Commander Patrick T. Carothers for exceptional heroism in the line of duty during a fugitive apprehension in Allenhurst, Georgia on Nov. 18, 2016, in which Deputy Commander Carothers was mortally wounded.
“Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions. “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
The Attorney General’s Award for Excellence in Law Enforcement was presented to a group of law enforcement professionals from the Eastern District of Tennessee for their extraordinary teamwork in the successful investigation and prosecution of a violent drug dealing and human trafficking organization. Today’s award recipients included:
Allen P. Pack, Jr., Special Agent, Federal Bureau of Investigation
Gregory J. Smith, Special Agent, Federal Bureau of Investigation
Steven T. Fogarty, Special Agent, Federal Bureau of Investigation
Ted S. Francisco, Special Agent, Homeland Security Investigations
Michelle L. Evans, Special Agent, Homeland Security Investigations
Carl Richard Walker, Jr., Special Agent, Tennessee Bureau of Investigation
Sollie W. Rabun III, Trooper, Tennessee Highway Patrol
Patrick L. White, Captain, Elizabethton Police Department
The trial team associated with these successful prosecutions included Assistant U.S. Attorney’s Donald Wayne Taylor, Jr., Helen C.T. Smith, and J. Christian Lampe assisted by Paralegal Specialist Cynthia St. John.
From 2009 through 2014, approximately 55 individuals associated with this organization were indicted and convicted of federal offenses associated with drug trafficking, firearms, immigration, and human trafficking. The organization and its associates were officially linked to drug suppliers from Tennessee, North Carolina, California, Oklahoma, Arizona, and ultimately a major drug organization in Mexico. The human trafficking portion of the operation affected such states as Tennessee, Kentucky, Alabama, Ohio and Georgia. Removal of the drug operation and its numerous associates had a profound impact on the area. Arrests and convictions associated with the human trafficking portion of the investigation resulted in the rescue of numerous victims and likely saved countless lives.
U.S. Attorney Nancy Stallard Harr praised today’s award recipients, as well as the prosecution team, for their success in eliminating this combined violent drug and human trafficking organization. “The U.S. Attorney’s Office is extremely proud of these dedicated, hard-working individuals. Their endeavor to eradicate a serious threat to the American public unquestionably improved the safety and well-being of law-abiding citizens in the region. Their success is due to the outstanding communication, commitment and perseverance by the multiple federal, state and local agencies and the prosecution team in our office,” said U.S. Attorney Harr.
# # #
Attorney General Jeff Sessions Hosts the 65th Annual Attorney General Awards Honoring Department Employees and Others for Their ServiceRead the Press Release
WASHINGTON – Attorney General Jeff Sessions recognized 202 Department of Justice employees for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
Four honorees received the Attorney General’s Award for Exceptional Heroism for their actions in Allenhurst, Georgia, on November 18, 2016. That day, members of the U.S. Marshals Service Southeast Regional Fugitive Task Force, led by Deputy Commander Patrick T. Carothers, conducted an investigation to apprehend a fugitive at a residence in Allenhurst. The fugitive was wanted in South Carolina on multiple counts of attempted murder of police officers. When the fugitive was located in a room inside the residence, he opened fire on Deputy Commander Carothers, striking him multiple times. Although mortally wounded, Deputy Commander Carothers gallantly continued to return accurate fire in an attempt to protect his team and himself from the fugitive’s attack. As additional task force members entered the gunfight, others removed Deputy Commander Carothers from the residence and rendered medical aid. Tragically, Deputy Commander Carothers succumbed to his wounds.
For these events, the Attorney General presented the Award for Exceptional Heroism posthumously to Deputy Commander Carothers, and to three members of his team: Supervisory Criminal Investigator Ramiro Suarez, Jr., Criminal Investigator James F. Turner, and Deputy United States Marshal Robert C. Doherty.
“Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions. “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”
During the ceremony, Attorney General Sessions talked specifically about Deputy Commander Carothers. “We must remember some who couldn’t be with us because they gave the last full measure of devotion. That includes Deputy Commander Patrick Carothers of the Marshals Service. After more than 25 years in law enforcement, Pat could have gotten a desk job or retired. But that just wasn’t who he was. And so, when it was time to serve a warrant for a fugitive wanted for attempting to kill police, Pat was the first one through the door,” said Attorney General Sessions, “We are going to remember Patrick Carothers’ story for a long time. And he is going to inspire us to live up to his example of selflessness and bravery.”
Said United States Attorney R. Brian Tanner, “Every member of Deputy Commander Carothers’s team exhibited profound courage, but he made the ultimate sacrifice. We rightly should take this moment to recognize Deputy Commander Carothers and his entire team for their exceptionally heroic actions under extreme duress. That team not only included the three federal Marshals recognized with him by the Attorney General today, but also a number of state and local law enforcement agents that with no less gallantry were on the scene in Allenhurst returning fire and rendering aid. All these men and women voluntarily took on the mantle of public service, putting themselves in harm’s way in order to keep us all safe. Today, and every day, they deserve our gratitude and respect.”
Attorney General Jeff Sessions Hosts the 65th Annual Attorney General Awards Honoring Department Employees and Others for Their ServiceRead the Press Release
WASHINGTON – Attorney General Jeff Sessions recognized 202 department employees for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony. Nineteen other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. The department will also present one posthumous award to Deputy Commander Patrick T. Carothers for exceptional heroism in the line of duty during a fugitive apprehension in Allenhurst, Georgia on Nov. 18, 2016, in which Deputy Commander Carothers was mortally wounded.
“Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions. “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”
“I’m delighted that the Attorney General chose to recognize the work of one of our outstanding prosecutors,” said U.S. Attorney Parker. “Mr. Meitl’s work in this case was nothing short of extraordinary and exemplifies the work that goes on in this office every day.”
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
Attorney General Sessions recognized Northern District of Texas Assistant U.S. Attorney P.J. Meitl for the prosecution of one the largest cases ever against the Aryan Brotherhood of Texas (ABT), which is considered a Tier One gang in the State of Texas. Mr. Meitl’s leadership in the ABT investigation was instrumental in the highly successful prosecution of dozens of members and associates of various white supremacy groups in North Texas. To date, 89 dangerous defendants are incarcerated for their involvement in a far-reaching drug trafficking conspiracy. Combined, the defendants had previously been convicted of 730 crimes that included murder, sexual assault, robbery, and other violent offenses.
# # #
Attorney General Jeff Sessions Hosts the 65th Annual Attorney General Awards Honoring Department Employees and Others for Their ServiceRead the Press Release
WASHINGTON – Attorney General Jeff Sessions recognized 202 department employees for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony. Nineteen other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. The department will also present one posthumous award to Deputy Commander Patrick T. Carothers for exceptional heroism in the line of duty during a fugitive apprehension in Allenhurst, Georgia on November 18, 2016, in which Deputy Commander Carothers was mortally wounded.
“Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions. “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”
“Today’s recognition of members of our office, DOJ’s Organized Crime and Gang Section, and the Bureau of Alcohol, Tobacco, Firearms and Explosives is well-deserved,” said U.S. Attorney Muldrow. “As a result of their combined, tireless efforts over two years, a violent criminal gang was brought to justice. We will continue to work with our law enforcement partners and the community to reduce crime throughout our district.”
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their selfless efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, and going after gangs and those trafficking in dangerous narcotics and human beings.
From the Middle District of Florida, Assistant United States Attorneys Christopher Murray, Natalie Hirt Adams, and Administrative Specialist Abbey Hicks, Special Agents Yannick J. Deslauriers and Melinda G. Sears from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with Trial Attorney Marty Ann Woelfle from the Organized Crime and Gang Section, were recognized for their outstanding achievements in the case of United States v. Nathaniel Harris, et al.
Between April 2014 and September 2016, this team successfully investigated and prosecuted six leaders of the most violent gang in Manatee County. For nearly a decade, the Harris defendants operated an extremely violent racketeering enterprise. The gang’s violence culminated on August 1, 2013, when two defendants stormed a youth football practice and gunned down Coach Brenton Coleman, killing him in front of 300 children and their parents. The recipients prosecuted the six defendants in a 28-count racketeering indictment involving charges for seven murders, one attempted murder, and two armed kidnappings, among many other crimes. Additionally, the team worked feverishly to prepare over 150 witnesses and over 1,800 exhibits for trial. Through the course of a grueling three-month trial that began on June 6, 2016, the recipients excelled in the complex task of persuasively presenting the testimony of cooperating defendants and other witnesses, coupled with physical, forensic, and electronic evidence. The team’s work resulted in the conviction of all six defendants and sentences ranging from 120 years to multiple life sentences. The Harris case was one of the most complex and successful violent crime prosecutions in the history of the Middle District of Florida. Furthermore, the professionalism, dedication, and devotion to duty of the recipients are in keeping with the highest traditions of the U.S. Department of Justice.
Arrests Made in Drug and Firearm Charges in and Around Craven CountyRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina Robert J. Higdon, Jr., District Attorney Scott Thomas, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announce the arrests yesterday of eight defendants pursuant to three federal indictments for drug and firearms charges.
A 35-count indictment was returned by a federal grand jury on October 17, 2017. The indictment charges nine defendants with conspiracy to distribute heroin and marijuana and various drug offenses, one defendant with operating a continuing criminal enterprise, and three defendants with firearm offenses arising out of a Title III wiretap investigation in Craven County.
The defendants include:
- CALVIN MARK WILSON, aka “Bali,” 33, of New Bern, NC
- MARIO CORRELLUS BARGNEARE, aka “Rio,” 38, of New Bern, NC
- WILLIE FRANK JAMES AHERN, aka “White, White Bread, Dribs,” 38, of Bayboro, NC
- DEREK JACQUAN WIGGINS, aka “DJ,” 37, of New Bern, NC
- ROY JAMES NOLON, aka “Henny,” 20, of New Bern, NC
- MICHAEL QUALEEK VELASQUEZ, aka “Moo Moo,” 22, of New Bern, NC (currently housed in the Bertie Correctional Institution)
- LAMAR HOSEA WIGGINS, aka “LB,” 39, of New Bern, NC
- LASHAWNNA JAQUETTE MCCOTTER, aka “Flossy,” 46, of New Bern, NC
- LATREKA DENISE HARDESTY, aka “T,” 26, of New Bern, NC
Additionally, ADRIENNE MICHELLE HALL, 34, of New Bern, NC, was indicted for conspiracy to distribute and possess with the intent to distribute heroin and for possession of heroin. CAROLINE LOUISE HUGHES, 27, of Alliance, NC, also faces a 3-count indictment for conspiracy to distribute heroin and distributing heroin.
In addition to the federal arrests, three other individuals were arrested by the New Bern Police Department for state drug and firearm offenses. Suquanna Robinson, 33, of New Bern, NC, was arrested for possession with intent to sell and deliver heroin and maintaining a dwelling. Dwayne Stallings, 32, of Cove City, was arrested for possession of a stolen firearm. Finally, Nassar Mack, 36, of New Bern, NC, was arrested for possession of a firearm by a felon.
“The heroin epidemic is affecting the lives of citizens here in North Carolina and throughout the nation,” commented U.S. Attorney Higdon. “In fact we are losing more than 3 North Carolinians to drug overdoses every day. And, heroin and opioids are driving a significant portion of this devastating problem. This prosecution reflects the commitment of this office and that of our state and local law enforcement partners in combatting this crisis and targeting those who put these dangerous drugs on the streets.”
District Attorney Scott Thomas said, “This coordinated investigation between local, state and federal agencies is part of our ongoing effort to combat violence and illegal drug activity in our area. The fight against crime requires cooperation between law enforcement agencies and prosecutors at the state and federal levels to be successful. My office will continue to work closely with the United States Attorney’s Office as these and similar cases are investigated and prosecuted in the future.”
The Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) Special Agent in Charge CJ Hyman stated, “One of ATF’s primary missions is to combat violent crime, and this investigation is a great example of the positive results that can be accomplished when we collaborate with our law enforcement partners to accomplish the common goal of making our communities safer.”
“I applaud the spirit of cooperation that exists at local, state and federal levels”, said New Bern's Chief of Police, Toussaint E. Summers, Jr., as he remarked on the arrests yesterday that represented a coordinated effort of more than two years. “The citizens of the City of New Bern, Craven County and eastern North Carolina can be assured that the law enforcement community as well as federal and state prosecutors will work together to use all available resources to remove drug traffickers from the streets of our community.”
All but two of the defendants charged in the federal indictments are in custody pending trial. DEREK WIGGINS and LAMAR WIGGINS remain at large.
In addition to the arrests, law enforcement executed seven search warrants of residences in Craven County as part of a multi-year investigation into the violent drug trafficking organization. This case was brought as a part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation entitled Operation 190.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New Bern Police Department, Jacksonville Police Department, Craven County Sheriff’s Office, Pamlico County Sheriff’s Office, the North Carolina State Bureau of Investigation, Onslow County Sheriff’s Office, Sampson County Sheriff’s Office, Trentwood Police Department, Carteret County Sheriff’s Office, Morehead City Police Department, and with the assistance of the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA).
Anchorage Man Charged for Trafficking Large Quantities of Heroin and Methamphetamine into AlaskaRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Anchorage man was arrested and charged for the trafficking of multi-kilo quantities of heroin, as well as multi-pound quantities of methamphetamine, which were to be distributed in the Anchorage area.
Cheng Chiew Saechao, 28, of Anchorage, was charged yesterday with possession with intent to distribute 1,000 grams or more of heroin. Saechao had his initial appearance in court yesterday, and was ordered detained pending grand jury indictment.
According to the complaint, on October 23, 2017, federal, state, and local law enforcement officers arrested Saechao following a seizure of nearly 10 pounds of methamphetamine by the United States Postal Inspection Service (USPIS), which had been shipped to Alaska from California. When law enforcement officers subsequently searched Saechao’s residence, they found approximately 4 kilograms of heroin, which is the approximate equivalent of 40,000 individual dose quantities. In total, the complaint alleges that the street value of the drugs is approximately $400,000 for the heroin and $1,000,000 for the methamphetamine.
At Saechao’s residence, evidence of drug distribution including packaging materials, a digital scale, and a handgun were also found. Following his arrest, Saechao admitted receiving pounds of heroin and methamphetamine in recent months and further admitted he intended to distribute the heroin throughout the Anchorage area.
If convicted, Saechao faces a mandatory minimum 10 years to life imprisonment, a $10 million fine, and a minimum of five years of supervised release.
The Drug Enforcement Administration Task Force (DEA), United States Postal Inspection Service (USPIS), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Homeland Security Investigations (HSI), Anchorage Police Department Vice Unit, Alaska State Troopers, Anchorage Airport Police Department and Alaska National Guard Counter Drug Support Program conducted the investigation leading to the charges in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Anchorage Man Charged for Distribution of Child PornographyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Anchorage man was charged for the distribution of child pornography.
Ronald Teekell, 52, of Anchorage, and owner of Jewel Lake Bowl, was arraigned yesterday before U.S. Magistrate Judge Kevin F. McCoy on two counts of distribution of child pornography. A detention hearing was scheduled for Oct. 27, 2017.
According to the indictment, in November 2014 and June 2016, Teekell knowingly distributed, by any means and facility of interstate and foreign commerce, visual depictions of minors engaging in sexually explicit conduct. It is alleged that Teekell used the wireless internet at Jewell Lake Bowl to access child pornography.
The charges against Teekell are the result of a joint investigation conducted by the FBI and APD. If the public has any further information, questions, or concerns about the activities of Teekell, please contact the FBI at (907) 276-4441.
If convicted, Teekell faces a statutory minimum of five years in prison and guideline sentence of the statutory maximum of 20 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Altoona Man Admits Possessing Pornographic Images and Videos of MinorsRead the Press Release
JOHNSTOWN, Pa. – A resident of Altoona, Pa. pleaded guilty today in federal court to a charge of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
Trenton Stehley, 20, of Altoona, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on August 11, 2015, Stehley knowingly possessed videos and images in individual computer graphic files which were produced using minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for Feb. 20, 2018, at 10:00 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and Altoona Police Department conducted the investigation that led to the prosecution of Stehley.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Acting United States Attorney Farley Encourages Participation in Dea’s National Presription Drug Take Back Day on October 28, 2017Read the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley encourages the public to participate in the Drug Enforcement Administration’s National Prescription Drug Take Back Day on Saturday, October 28, 2017. This biannual event will be held form 10 a.m. to 2 p.m. at thousands of collection sites around the country, including over 100 here in New Hampshire. This event is an important effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“I encourage everyone in our state to join in our efforts to combat the opioid crisis by participating in National Prescription Take Back Day,” said Acting U.S. Attorney Farley. “As our state and our nation combat the opioid crisis, we have heard far too many stories of individuals whose paths to addiction began with the misuse of prescription drugs. One way that all citizens in the Granite State can help to fight this drug epidemic is to remove any unneeded prescription drugs from their homes. Properly disposing of these drugs can prevent them from falling into the wrong hands. The simple act of disposing of unneeded drugs may help to prevent someone you love from misusing these drugs or dying from an overdose.”
"The abuse of opioid prescription drugs can lead to the path of addiction and overdose death," said DEA Special Agent in Charge Michael J. Ferguson. "We are proud to partner with the New Hampshire U.S. Attorney's Office and the residents of the Granite State to provide a method to dispose of unwanted, unused and expired pain killers and addictive medicines. The abuse of opioids is our nation’s biggest drug problem."
Prior Drug Take Back Day events have been very successful. Last April, Americans turned in 450 tons (900,000 pounds) or prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills. The disposal service is free and anonymous, no questions asked. Please note that the DEA cannot accept liquids, needles, or sharps, only pills or patches.
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that most abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin. In fact, four out of five new heroin users started their drug use with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
###
Tuesday 24 October 2017
Westerville Man Pleads Guilty to Threatening CongressmanRead the Press Release
COLUMBUS, Ohio – E. Stanley Hoff, 68, of Westerville, pleaded guilty in U.S. District Court today to one count of threatening to assault and murder a United States official.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and the United States Capitol Police announced the plea entered into before U.S. District Judge Michael H. Watson.
Hoff was indicted by a federal grand jury in July, and, according to court documents, threatened to assault and murder U.S Representative Steve Stivers and a member of Stivers’ family. Hoff left a threatening voice mail on Rep. Stivers’ Hilliard office phone.
Hoff was arrested on June 21, when he was charged by a criminal complaint. He is being held without bond.
Threatening to assault and murder a United States official is a crime punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Capitol Police and Assistant United States Attorneys Kevin Kelley and Noah Litton, who are prosecuting the case.
# # #
West Warwick Man Admits to Possessing 7,000 Images and Videos of Child PornographyRead the Press Release
PROVIDENCE – Joseph Seymour, 39, of West Warwick, pleaded guilty in federal court in Providence today to possession of child pornography.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Seymour admitted to the Court that in July 2016, he was in possession of more than 7,000 digital images or videos of minors engaged in sexually explicit conduct. Some of the images and videos depicted prepubescent minors under the age of 12 engaged in sexually explicit conduct.
Seymour’s guilty plea is announced by Acting United States Attorney Stephen G. Dambruch; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, in July 2016, a Tempe, Arizona computer repair service notified the Tempe Police Department that they discovered images on a digital hard drive that appeared to be child pornography. The hard drive had been sent to the repair service via a Rhode Island-based manufacturer of electronic products. The Arizona company is often used by the Rhode Island-based manufacturer as a sub-contractor for computer repair services.
The Tempe Police Department reviewed some of the material on the hard drive, and, after determining that some of the contents they reviewed depicted child pornography, they contacted that Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force. The hard drive was transferred to the ICAC Task Force and then to the U.S. Postal Inspection Service (USPIS) for further examination. In addition to numerous documents and other files containing identifying information belonging to Joseph Seymour, a forensic examination by a USPIS Digital Evidence Unit revealed over 7,000 images of child pornography stored in more than 160 subfolders.
On December 21, 2016, USPIS agents and members of the ICAC Task Force arrested Seymour while executing a court authorized search of Seymour’s residence and seizing numerous computers and digital storage devices.
Seymour is scheduled to be sentenced on January 12, 2018. Possession of child pornography is punishable by up to 10 years in federal prison followed by 3 years supervised release, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
###
Virginia Tax Return Preparer Sentenced to Prison for Filing Fraudulent ReturnsRead the Press Release
Danville, VIRGINIA – A Danville, Virginia, resident was sentenced to 30 months in prison for aiding and assisting in the preparation of fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
According to documents filed with the court, Timothy Harris, 49, owned and operated TNA Tax Services and TNT Tax Services, which were located in Danville and Rocky Mount. Harris used these businesses to prepare false tax returns for clients that claimed bogus business losses in order to seek refunds to which his clients were not entitled. After the Internal Revenue Service (IRS) revoked Harris’s Electronic Filing Identification Number (EFIN) in December 2012, he used another person’s EFIN to continue filing tax returns. Harris admitted that his fraudulent conduct caused a tax loss of more than $250,000.
In addition to the term of prison imposed, Senior U.S. District Judge Jackson L. Kiser ordered Harris to serve one year of supervised release and to pay $335,389 in restitution to the IRS. Harris pleaded guilty in July 2017 to aiding and assisting in the preparation of a false tax return.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Mountcastle commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys William M. Montague and Michael C. Boteler of the Tax Division, who prosecuted the case.
Virginia Tax Return Preparer Sentenced to Prison for Filing Fraudulent ReturnsRead the Press Release
A Danville, Virginia, resident was sentenced to 30 months in prison for aiding and assisting in the preparation of fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
According to documents filed with the court, Timothy Harris, 49, owned and operated TNA Tax Services and TNT Tax Services, which were located in Danville and Rocky Mount. Harris used these businesses to prepare false tax returns for clients that claimed bogus business losses in order to seek refunds to which his clients were not entitled. After the Internal Revenue Service (IRS) revoked Harris’s Electronic Filing Identification Number (EFIN) in December 2012, he used another person’s EFIN to continue filing tax returns. Harris admitted that his fraudulent conduct caused a tax loss of more than $250,000.
In addition to the term of prison imposed, Senior U.S. District Judge Jackson L. Kiser ordered Harris to serve one year of supervised release and to pay $335,389 in restitution to the IRS. Harris pleaded guilty in July 2017 to aiding and assisting in the preparation of a false tax return.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Mountcastle commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys William M. Montague and Michael C. Boteler of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Union Treasurer Sentenced to Prison for Embezzling FundsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW THIBODEAU, 72, of East Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to three months of imprisonment, followed by one year of supervised release, for embezzling more than $70,000 from his union.
According to court documents and statements made in court, THIBODEAU was a member of the International Association of Machinists and Aerospace Workers Local 1433. Beginning in approximately 2004, THIBODEAU served as secretary/treasurer of the local office of the union in Kensington. For several years, THIBODEAU used his access to the union’s funds to defraud the union in various ways. He issued unauthorized paychecks to himself, sometimes forging the signature of another union official so the bank would cash the check. He also reimbursed himself for fraudulent expenses for maintenance, officer duties and supplies. At times, he charged expenses to the union’s credit card, paid the resulting bill with union funds, and then wrote a check for the same amount to himself.
Between 2010 and 2014, THIBODEAU embezzled $70,379.30 from the union.
Judge Covello ordered THIBODEAU to make full restitution.
On April 5, 2017, THIBODEAU pleaded guilty to one count of embezzlement and theft of labor union assets.
This matter was investigated by the U.S. Department of Labor, Office of Inspector General, and U.S. Department of Labor, Office of Labor Management Standards. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
U.S. Attorney’s Office Hosts Conference Addressing Hate Speech in K-12 SchoolsRead the Press Release
BOSTON – The U.S. Attorney’s Office hosted a conference yesterday aimed at bringing together educators, school administrators, advocates, and community members to learn and share ideas about preventing and effectively responding to hate speech in K-12 schools in Massachusetts.
“Preventing and responding to hate speech in our schools is essential to ensuring equal educational opportunities for youth in Massachusetts,” said Acting U.S. Attorney William D. Weinreb. “All young people have a right to learn in a safe and welcoming environment that fosters respect for diversity and nurtures healthy development.”
The full day conference, “Hate Speech in K-12 Schools: Prevention and Response,” was organized by Weinreb’s Civil Rights Unit and held at the College of the Holy Cross in Worcester. The conference brought together a diverse audience of over 200 educators, school resource officers, school administrators, advocates, and community members from across Massachusetts for a series of panels and plenary sessions about addressing hate speech in Massachusetts schools.
Keynote speaker Maureen Costello, the Director of Teaching Tolerance at the Southern Poverty Law Center, spoke about the importance of addressing bias in schools. “Thanks to media coverage of hate speech incidents and the use of modern technology to bully or harass, we are more aware than ever of what vulnerable children face in school, and we have a profound responsibility to ensure that our schools are inclusive and free from bias,” she said. According to keynote speaker Steve Wessler, a Human Rights Educator & Advocate, “The impact [of hate speech] on students includes damage to their physical and mental health as well as to their ability to succeed in school. Additionally, degrading language can escalate from words to violence when no one speaks up for civility and respect.”
The sessions covered a variety of topics including how to address the needs of vulnerable populations who are disproportionately victimized by hate speech and how to prevent hate speech and harassment online and through social media. One panel shared best practices in prevention programs and how to create and maintain positive and welcoming school environments. A panel of legal experts also discussed the legal obligations of schools with respect to harassment and hate speech, including First Amendment protections that apply to students in schools, and when hate speech becomes a hate crime.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney and Law Enforcement Partners Announce Formation of Connecticut Cyber Task ForceRead the Press Release
United States Attorney Deirdre M. Daly and representatives of federal, state and local law enforcement today announced the formation of the Connecticut Cyber Task Force to investigate complex crimes in cyberspace.
The Connecticut Cyber Task Force, which is based at the FBI in New Haven, includes representatives from the FBI, Drug Enforcement Administration, U.S. Secret Service, U.S. Postal Inspection Service, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Defense Criminal Investigative Service, Connecticut State Police and 11 police departments from across the state, including the Bridgeport, Bristol, Fairfield, Greenwich, Hartford, New Canaan, New London, Norwalk, Stamford, Torrington and Westport Police Departments.
“The broad reach of cyber criminals can be felt almost every day in Connecticut,” said U.S. Attorney Daly. “Day after day, we learn of companies, municipalities, educational institutions, hospitals, public utilities, nonprofits and citizens being targeted by bad actors. These cyber criminals seek to disrupt our work, steal our intellectual property, compromise the personal or financial information of employees, customers and citizens through dedicated denial of service (DDOS) attacks, spear phishing campaigns, ransomware and malware attacks and other computer hacks or cyber intrusions.”
“The Connecticut Cyber Task Force will address the significant increase in the number and frequency of cyber-attacks occurring in Connecticut,” said FBI Special Agent in Charge Patricia M. Ferrick. “The primary goal of the task force is to combine available federal, state and local law enforcement resources in Connecticut to address challenging and emerging cyber threats such as the use of the Dark Markets, crypto currencies such as Bitcoin, and encrypted routing services, including TOR, to hide the advertising, sale and distribution of controlled substances and the sale of stolen personal identification, user credentials and financial information. We will also work closely with our law enforcement partners to provide training, resources and investigative strategies to address the significant ransomware and business email compromise attacks in Connecticut. It is our hope that this task force will make a significant impact and serve to better protect the citizens of Connecticut from the ever-changing criminal threats emanating from the internet.”
“Cybercrime is an increasing threat to individuals, businesses, and government in Connecticut and across the country,” said Commissioner Dr. Dora Schriro of the Connecticut Department of Emergency Services and Public Protection. “Neither impeded by geographic boundaries nor governmental jurisdictions, no single law enforcement agency can adequately address cybercrime. The Connecticut State Police welcomes the opportunity to expand our efforts and outreach in this important area through collaborative efforts such as this. Working closely with federal and local partners is key to keeping our communities safe and to holding accountable those who are responsible.”
Initially, the Task Force will prioritize cybercrime investigations in two areas. First, the Task Force will work to identify and disrupt criminal organizations that use computer intrusions to defraud companies of their money and information. “According to some estimates, in the last four years alone, ‘business compromise’ schemes have cost American companies more than $1.6 billion,” said U.S. Attorney Daly. “The FBI, Secret Service, HSI and IRS have made great strides in minimizing the impacts of these frauds through both prosecution of fraudsters and numerous outreach efforts to the business communities, but by working together and with state and local law enforcement, we believe that we will detect trends across intrusions, thereby allowing us to identify, arrest and prosecute the most serious offenders.”
“On behalf of HSI, I am extremely pleased to join the U.S. Attorney’s Office for the District of Connecticut on this new cyber task force,” said Special Agent in Charge Matthew Etre of HSI Boston. “HSI’s unique authorities, broad scope of investigative areas, and cyber-specific assets bring to the table an extensive toolkit that can track down cyber criminals and bring them to justice, no matter where they hide. Our methods have been tried and tested over many years, helping to make HSI a world leader in cyber investigations.”
“Our growing reliance on computer networks and electronic devices in almost every aspect of our lives has been accompanied by an increased threat from individuals, organized criminal networks, and nation states that victimize American citizens and businesses,” said Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation. “Recent revelations about massive thefts of financial and other sensitive data, from both the public and private sector, serve as a stark reminder of how vulnerable we all are to cyber-attacks. IRS Criminal Investigation is committed to investigating and prosecuting those perpetrating criminal schemes in the cyber world. Through our partnership with the U.S. Attorney's Office and our federal, state and local partners, we will aggressively pursue those who threaten our citizens and our nation.”
Second, the Task Force will target criminal activity on the dark web, notably the illicit acquisition and distribution of fentanyl and other dangerous drugs that are the cause of tens of thousands of overdose deaths annually. “Many dark web forums are an online version of an open-air drug market where narcotics are openly marketed and sold with impunity,” said U.S. Attorney Daly. “We believe that the vast majority of fentanyl that is killing far too many Americans is being produced overseas, and then sold on the dark web. Our Office, in partnership with the DEA and Postal Inspectors, has arrested and prosecuted online distributors of fentanyl and other drugs. The goal of the Task Force is to now marshal our resources and focus attention on those who operate and profit from the online forums themselves.”
“The DEA continues to be proactive in attacking criminal organizations that use the internet to conduct their illicit trade,” said DEA Special Agent in Charge Michael J. Ferguson. “Many times these organizations are utilizing the Dark Web to procure fentanyl directly from China. Connecticut has been experiencing a deadly opioid epidemic and the majority of these deaths can be attributed to a combination of fentanyl and heroin. The creation of this Task Force will give us additional resources to target and attack those individuals who are responsible for bringing this deadly poison into the United States and onto the streets of Connecticut.”
“The need to combat cybercrimes is increasing as more individuals become victims to these types of crimes,” said Inspector in Charge Shelly Binkowski of the U.S. Postal Inspection Service.” The U.S. Postal Inspection Service looks forward to working collaboratively with our law enforcement partners to keep the American public safe.”
“Cybercrimes that could compromise the integrity of the U.S. Department of Defense’s (DoD) Information Network or result in the disclosure of sensitive or classified DoD data are a top priority for the Defense Criminal Investigative Service (DCIS),” said Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “DCIS welcomes the opportunity to join the U.S. Attorney’s Office, the FBI New Haven Division and its law enforcement partners in this important initiative to combat cyber-related crimes.”
U.S. Attorney Daly noted several significant cybercrime matters that were investigated and prosecuted in Connecticut in the last decade, including the dismantling of the Coreflood botnet in 2011, a groundbreaking case that utilized legal and technical tools that are now used regularly throughout the country; the prosecution and extradition of several Romanian citizens who stole financial and personal information in phishing schemes; a fentanyl distribution investigation that revealed the drug was being acquired in kilogram quantities over the dark web; the arrest this past August of a Nigerian citizen who is alleged to have operated a phishing scheme to acquire tax information from school system employees, which information was used to file numerous false tax returns, and the arrest in Spain of a Russian citizen who is alleged to have operated the Kelihos botnet for more than 10 years.
U.S. Attorney Daly announced that Assistant U.S. Attorneys Vanessa Richards, David Huang and Neeraj Patel are coordinating the efforts of the Task Force within the U.S. Attorney’s Office. “Over the last two years, the Office has made a singular commitment to fighting cyber crime by creating a cyber bench – a group of prosecutors specially trained in this complex area,” said U.S. Attorney Daly. “These dedicated prosecutors have presented to Connecticut’s largest companies to educate businesses on how to avoid becoming the victim of a cyber-attack, and what to do when attacked.”
To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.
U.S. Attorney Charges NW Alabama Compounding Pharmacy Sales Representative in Prescription Fraud ConspiracyRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office today charged a fourth sales representative for a Haleyville, Ala.,-based compounding pharmacy for participating in a conspiracy to generate prescriptions and defraud health care insurers and prescription drug administrators out of tens of millions of dollars in 2015.
U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp, U.S. Postal Inspector in Charge Adrian Gonzalez, U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey announced the charges.
Prosecutors filed an information in U.S. District Court charging PETER EODICE II, 34, of Webster, NY, with conspiracy to commit health care fraud, wire fraud and mail fraud, various counts of health care fraud for submitting fraudulent prescription reimbursement claims to Blue Cross Blue Shield of Alabama, and one count of aggravated identity theft for forging a prescription. In conjunction with the charges, prosecutors also filed a plea agreement with Eodice.
Eodice worked for Northside Pharmacy, an Alabama company doing business as Global Compounding Pharmacy. Global’s compounding and shipping facility was in Haleyville. The pharmacy did its prescription processing, billing and customer service at its “call center” in Clearwater, Fla.
Global hired sales representatives, including Eodice, who were located in various states and were responsible for generating prescriptions from physicians and other prescribers. To bill insurance providers, including Blue Cross Blue Shield of Alabama, for these prescriptions, Global contracted to enter the pharmacy networks of third-party administrators, known as “pharmacy benefit managers” or “PBMs.” These PBMs included Prime Therapeutics and Express Scripts Incorporated.
The court documents describe a conspiracy at Global that centered on generating and billing PBMs for fraudulent, often high-reimbursement prescriptions. To generate prescriptions, Global hired sales representatives who were married or related to doctors and other prescribers. Global also encouraged sales representatives to volunteer at doctors’ offices where they would review patient files and push Global’s products to patients. Global executives also frequently instructed employees to obtain high-reimbursing prescriptions that Global would fill and bill for reimbursement. One of the drugs that Eodice got for himself and his family members was a wound cream that cost over $29,000.
The plea agreement describes a Global executive instructing sales representatives to obtain certain prescriptions and, shortly after, Eodice obtained those prescriptions for himself and family members. Eodice also forged multiple prescriptions, according to the court documents.
When billing, Global engaged in various fraudulent practices, including automatically refilling and billing for prescriptions regardless of patient need, and routinely waiving co-pays to encourage patients to accept unnecessary medications and refills.
As part of his plea agreement, Eodice agreed to forfeit $266,513 to the government as proceeds of illegal activity.
Global paid sales representatives a base salary plus a monthly commission for prescriptions that they obtained, according to court documents.
The charges against Eodice follow charges brought by the U.S. Attorney’s Office earlier this year against three other Global sales representatives, Robin Gary Lowry, 49, of Columbus, Miss., Bridget McCune, 42, of Destin, Fla., and Kelley Norris-Hartley, 41, of Tuscaloosa. All three were charged with conspiracy to defraud insurance plans and PBMs, along with various health care fraud counts for submitting fraudulent claims for payment to BCBS of Alabama. McCune also was charged with conspiring to solicit and receive kickbacks in return for referring prescriptions under Medicare and TRICARE, a U.S. Department of Defense health care program, and with money laundering for spending proceeds of the crimes. All three defendants pleaded guilty. Their sentencings are scheduled for early 2018.
FBI, U.S. Postal Inspection Service, U.S. Department of Health and Human Services Office of Inspector General, and U.S. Defense Criminal Investigative Service investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor and Nicole Grosnoff are prosecuting.
###
Two New York Residents Plead Guilty in Separate Stolen Identity Refund Fraud SchemesRead the Press Release
Two Queens, New York, residents pleaded guilty today for their roles in separate stolen identity refund fraud schemes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Kishore Jattan, 44, pleaded guilty to identity theft. According to the plea agreement and documents filed with the court, from April 2012 through June 2012, Jattan stole student IDs from packages he delivered for a university located in New York and sold the stolen IDs to other individuals who used the IDs to file fraudulent tax returns with the Internal Revenue Service (IRS). Jattan admitted that he caused a tax loss of between $250,000 and $550,000.
Sentencing is scheduled for March 21, 2018 before U.S. District Court Judge Edward R. Korman. Jattan faces a statutory maximum sentence of 15 years in prison. He also faces a period of supervised release, restitution, and monetary penalties.
In a separate scheme, Michael Bratton, 51, pleaded guilty to conspiring to defraud the United States. According to the plea agreement and documents filed with the court, from January 2011 through June 2012, Bratton purchased stolen IDs, which he provided to a co-conspirator for the purpose of filing fraudulent tax returns with the IRS. Bratton admitted to causing a tax loss of more than $40,000.
Sentencing is scheduled for March 21, 2018 before U.S. District Court Judge Edward R. Korman. Bratton faces a statutory maximum sentence of five years for conspiring to defraud the United States. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Stuart M. Goldberg thanked special agents of IRS Criminal Investigation and the U.S. Postal Inspection Service, who conducted the investigations, and Trial Attorneys Mark Kotila and Ann M. Cherry of the Tax Division, who are prosecuting these cases.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Two Men Indicted for Conspiring to Cause False Statements to the Federal Election CommissionRead the Press Release
A federal grand jury sitting in the Eastern District of Pennsylvania returned an indictment today charging two Philadelphia-area political consultants with a scheme to use a political candidate’s campaign funds to make illegal contributions to his opponent’s campaign to secure the opponent’s agreement to drop out of a 2012 congressional primary race.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania made the announcement.
According to the indictment, Donald “D.A.” Jones, 62, of Willingboro, New Jersey, and Kenneth Smukler, 57, of Villanova, Pennsylvania, were charged with conspiracy, causing unlawful campaign contributions and causing the filing of false reports to the Federal Election Commission (FEC), and Jones was charged with making false statements to the FBI, in connection with a falsification scheme involving unlawful contributions to the campaign of former Municipal Court Judge Jimmie Moore, a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives in the 2012 Democratic race for Pennsylvania’s First Congressional District. According to the indictment, those payments came from the campaign committee of Moore’s opponent for the purpose of removing Moore from the race. Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.
As alleged in the indictment, in or about February 2012, Moore withdrew from the primary election pursuant to an agreement with his opponent, who promised $90,000 in campaign funds to be used to repay Moore’s campaign debts. Under the applicable law, a contribution from one authorized campaign to another could not exceed $2,000 for the primary election. Therefore, the $90,000 payment from Moore’s opponent’s campaign to pay Moore’s campaign debts constituted an unlawful campaign contribution.
According to the indictment, the FEC requires campaigns to file periodic reports itemizing the campaign’s contributions and expenditures during the reporting period. However, in order to conceal the unlawful contribution and its source, Moore instructed his campaign manager, Carolyn Cavaness, to create a company whose sole purpose would be to receive the funds from his opponent’s political campaign and repay Moore’s campaign debts. As described in the indictment, those payments were routed through Voter Link Data Systems (Voter Link) and D. Jones & Associates, political consulting companies run by Smukler and Jones.
According to the indictment, the defendants used false invoices to generate a paper trail intended to justify the payments from Moore’s opponent’s campaign committee, and Cavaness, acting at Moore’s direction, used a portion of the money from the opponent’s campaign committee to repay Moore’s campaign debts, including debts to Moore and Cavaness themselves. Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25.
According to the indictment, to further conceal the scheme, the defendants willfully caused Moore’s campaign committee to file false reports with the FEC that did not disclose or reference the funds received from his opponent’s campaign committee; did not mention Voter Link or D. Jones & Associates, the companies through which the payments were routed; and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds from Moore’s opponent’s campaign committee. Likewise, the defendants willfully caused the opponent’s campaign committee to file false reports with the FEC that did not mention the use of campaign funds to repay Moore’s campaign debts. Finally, the indictment alleges that Jones made material false statements to FBI agents investigating this matter, telling them that Cavaness had performed work in exchange for the opponent’s campaign funds that were routed through D. Jones & Associates, when in fact Cavaness never performed any such work.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The FBI conducted the investigation, and Assistant U.S. Attorney Eric Gibson Eric Gibson of the Eastern District of Pennsylvania and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section are prosecuting the case.
Two Indicted for Conspiring to Cause False Statements to the Federal Election CommissionRead the Press Release
Philadelphia – A federal grand jury returned an indictment today charging two Philadelphia-area political consultants with conspiracy, causing unlawful campaign contributions, causing the filing of false reports to the Federal Election Commission, causing false statements to the Federal Election Commission and making false statements to the FBI.
Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.
According to the indictment, Donald Jones, 62, and Kenneth Smukler, 57, caused unlawful campaign contributions and engaged in a falsification scheme involving those contributions to the campaign of a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives. According to the indictment, those payments came from the campaign committee of a candidate for the purpose of removing that candidate’s opponent, former Municipal Court Judge Jimmie Moore, from the 2012 Democratic race for Pennsylvania’s First Congressional District. Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.
As alleged in the indictment, in or about February 2012, Moore withdrew from the primary election pursuant to an agreement with his opponent, who promised $90,000 in campaign funds to be used to repay Moore’s campaign debts. Under the applicable law, a contribution from one authorized campaign to another could not exceed $2,000 for the primary election. Therefore, a $90,000 payment from Moore’s opponent’s campaign to pay Moore’s campaign debts would constitute an unlawful campaign contribution. Moreover, because the FEC requires campaigns to file periodic reports itemizing the campaign’s contributions and expenditures during the reporting period, that unlawful campaign contribution should appear on the FEC reports filed by both campaigns.
According to the indictment, in order to conceal the unlawful contribution, as well as the fact that his opponent’s campaign committee paid his campaign debts, Moore instructed his campaign manager, Carolyn Cavaness, to create a company whose sole purpose would be to receive the funds from his opponent’s political campaign and repay Moore’s campaign debts. As described in the indictment, those payments were routed through Voter Link Data Systems and D. Jones & Associates, political consulting companies run by Smukler and Jones. According to the indictment, the defendants used false invoices to generate a paper trail intended to justify the payments from Moore’s opponent’s campaign committee. Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25.
According to the indictment, Cavaness, acting at Moore’s direction, used a portion of the money from the opponent’s campaign committee to repay Moore’s campaign debts, including debts to Moore and Cavaness themselves. According to the indictment, by causing Moore’s opponent’s campaign to make these payments, the defendants willfully caused the opponent’s campaign to make unlawful campaign contributions.
In addition, true and accurate information about the payments was never disclosed to the FEC. Instead, according to the indictment, the defendants willfully caused Moore’s campaign committee to file false reports with the FEC that did not disclose or reference the funds received from his opponent’s campaign committee, did not mention the companies of the political consultants through which the payments were routed, Voter Link and D. Jones & Associates, and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds from Moore’s opponent’s campaign committee. According to the indictment, the defendants also willfully caused the opponent’s campaign committee to file false reports with the FEC that did not mention the use of campaign funds to repay Moore’s campaign debts. Finally, the indictment alleges that Jones made material false statements to FBI agents investigating this matter, telling them that Cavaness had performed work in exchange for the opponent’s campaign funds that were routed through D. Jones & Associates, when in fact Cavaness never performed any such work.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting U.S. Attorney Lappen and Acting Assistant Attorney General Blanco commended special agents of the FBI, who conducted the investigation, and Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section, who are prosecuting the case.
Two California Men Sentenced to Years in Federal Prison for Roles in Multi-Million Dollar ‘High-Yield Prime Bank’ SchemeRead the Press Release
SANTA ANA, California – Two California men have been sentenced to multi-year federal prison terms after being convicted of federal wire fraud charges for participating in a “high-yield prime bank” scam that stole more than $5 million from victims across the nation who were promised huge returns on investments, purportedly with little or no risk.
Francis Wilde, 66, of Mountain View, who was the chief executive officer of Riptide Worldwide Inc. and the owner of Matrix Holdings, LLC, was sentenced yesterday to 51 months in prison and was ordered to pay nearly $6.2 million in restitution. Wilde, who was the leader of the scheme, was actively involved in more than two dozen deals with investors, he admitted in court.
Mark Gelazela, who was also known as Mark Zella, 44, of Marina Del Rey, who operated IDLYC Holdings Trust, was sentenced yesterday to 41 months in prison.
Both defendants were sentenced by United States District Judge David O. Carter, who scheduled a December 11 restitution hearing for Gelazela
Wilde and Gelazela lured victims to invest in their scheme by falsely promising astronomical returns. They told investors that their money would be used to lease and monetize “bank guarantees” overseas. After leasing the bank instruments, credit lines would be drawn from the instruments and those funds would be used for trading, leading to extraordinary profits, they told victims.
Once money came in from investors, Wilde and Gelazela almost immediately split the money to pay themselves and their co-conspirators. In at least one case, Gelazela took half of an investor’s funds as an undisclosed fee, and told Wilde to “play” with $50,000 of the investor’s money. In other cases, money from new victims was used to pay off earlier investors to keep the scheme running. When victims began inquiring about the status of payouts under the program and then began seeking the return of their money, Gelazela lulled them with falsehoods and took steps to conceal the fraud.
As part of the scheme, Wilde and Gelazela falsely represented that Gelazela was an international finance guru – while in reality Gelazela had zero success with leasing and monetizing bank guarantees, and his research consisted of “Google.” Wilde and Gelazela also lied about how investors’ money would be used, made excuses for delays in payment, and urged victims to avoid cooperating with investigators.
“Over months – and time and again – [Gelazela] lied to victims about the status of payouts under the program,” prosecutors wrote in a sentencing memorandum. “Even though defendant knew full well that he had taken part of their money without telling them, that there was no money left in the attorney escrow account, and that there was nothing to recommend the program, defendant repeatedly told investors that payouts were right around the corner. That is to say, defendant repeatedly lifted and crushed his victims’ spirits.”
Wilde pleaded guilty last year to one count of wire fraud. A federal jury found Gelazela guilty of two counts of wire fraud after a six-day trial late last year.
The evidence presented at trial showed that Gelazela brought 18 victims into the scheme with false promises of huge returns on their investments. Wilde admitted being involved with approximately 20 victims.
A third defendant in the case – attorney Bruce Haglund, 66, of Irvine, who acted as an escrow “paymaster” in deals made by his co-defendants – is scheduled to be sentenced by Judge Carter on February 12. Prosecutors argued in court documents that Haglund’s role provided “an air of legitimacy and safety” because victims sent their money to his attorney trust account. As a result of pleading guilty to one count of wire fraud, Haglund faces a statutory maximum sentence of 20 years in prison.
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Daniel H. Ahn of the Santa Ana Branch Office.
Three Members of Nicholasville Family Sentenced for Conspiracy to Defraud Nicholasville BusinessRead the Press Release
LEXINGTON, Ky. – Joyce Minton, 65, Aaron Brooke Warren, 43, and James Minton, 70, all of Nicholasville, Ky., have been sentenced, respectively, to 97 months, 46 months, and 18 months in federal prison, for defrauding a Nicholasville business. They were also ordered to forfeit the proceeds of their crimes and to pay restitution to their victims.
Senior United States District Judge Joseph M. Hood formally sentenced the Mintons and Aaron Brooke Warren yesterday. They must serve 85 percent of their prison sentence.
In June, according to evidence presented at their trial, James Minton, Joyce Minton, and Aaron Brooke Warren conspired to defraud their longtime employer, Clark Machine Tool and Die, of Nicholasville. The criminal conspiracy took place from February 2000 through May 2016 and stole over $1,500,000. The conspirators defrauded the business by using company checks and credit cards to purchase personal items, by cashing and keeping company petty cash checks, by issuing themselves extra paychecks, and by inflating their paychecks. They also kept money that customers had paid the company for work, converting those funds to their personal use. Joyce Minton was the office manager and bookkeeper for the company; Aaron Brooke Warren was the company’s shop supervisor; and James Minton was a contractor.
The jury convicted Joyce Minton of 46 counts of conspiracy, mail fraud, bank fraud, and money laundering; Aaron Brooke Warren was convicted of 34 counts of conspiracy, mail fraud, and money laundering; and James Minton was convicted of seven counts of conspiracy and mail fraud.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; Chris White, Assistant Inspector in Charge, United States Postal Inspection Service; and Richard W. Sanders, Commissioner of the Kentucky State Police, jointly announced the sentences. Assistant U.S. Attorneys Neeraj Gupta and Ken Taylor prosecuted the case on behalf of the federal government.
Texas man pleads guilty to using postal service fuel cards for private vehicleRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a former Lake Charles post office employee pleaded guilty last week to using U.S. Postal Service fuel cards for his personal vehicle.
Shawn Bell Jr., 21, of Port Arthur, Texas, pleaded guilty Thursday before U.S. Magistrate Judge Kathleen Kay to one count of use of an unauthorized access device. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Bell started using U.S. Postal Service fuel cards for his private vehicle starting on November 29, 2016. Bell resigned as a route driver for the Drew Station Post Office in Lake Charles on January 12, 2017, after law enforcement agents interviewed him about U.S. mail from his route found discarded in a dumpster. Even after his resignation, he kept the fuel cards and used them through April 10, 2017 for a total loss to the U.S. Postal Service of $2,021.24.
Bell faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a January 18, 2018 sentencing date.
The U.S. Postal Service-Office of Inspector General conducted the investigation. Assistant U.S. Attorneys T. Forrest Phillips and Robert C. Abendroth are prosecuting the case.
Sweetwater Resident Sentenced to Serve Thirty Months in Prison for Extortion via SnapChatRead the Press Release
KNOXVILLE, Tenn. – On October 24, 2017, Brandon Douglas Shanahan, 23, of Sweetwater, Tennessee, was sentenced by the Honorable Pamela L. Reeves, U.S. District Court Judge, to serve 30 months in federal prison for extortion using the computer application SnapChat.
Shanahan pleaded guilty in November 2016 to one count of a federal indictment charging him with using interstate communications with the intent to extort contained in a federal indictment. Shanahan used Snapchat to extort women into sending nude photographs of themselves to him. After entering his guilty plea, it was discovered that Shanahan engaged in new conduct which could have been charged in a subsequent indictment. However, the U.S. Attorney’s Office agreed to allow Shanahan to plead guilty to an additional count in the indictment prior to his sentencing today. Details of this are outlined in the plea agreement on file with the U.S. District Court and available to the public.
Agencies involved in this investigation include the Federal Bureau of Investigation and Knoxville Cyber Task Force, which includes the University of Tennessee Police Department, Tennessee Highway Patrol, Knoxville Police Department and Knox County Sheriff Office, assisted by the Sweetwater Police Department. Assistant U.S. Attorney Cynthia F. Davidson represented the United States.
###
St. Martinville man pleads guilty to drug distribution, firearms possessionRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a St. Martinville man pleaded guilty Monday to drug distribution and firearm charges.
Clay Anthony Robertson, 31, of St. Martinville, La., pleaded guilty before U.S. Magistrate Judge Carol Whitehurst to one count of possession with intent to distribute a controlled substance and one count of possession of firearms by a convicted felon. The plea will become final when accepted by U.S. District Judge Elizabeth E. Foote. According to the guilty plea, law enforcement agents searched Robertson’s former apartment in the River Ranch area of Lafayette on January 19, 2017. Law enforcement agents recovered more than 500 grams of cocaine, 31 grams of marijuana dipped in Tetrahydrocannabinol (THC) wax, and $64,280. Law enforcement also recovered a .40 caliber pistol, a 9 mm semi-automatic pistol, 30 rounds of 9 mm ammunition, and 41 rounds of .40 caliber ammunition. Agents also discovered later that the .40 caliber pistol was stolen, and that Robertson was previously convicted of a controlled substance felony on January 25, 2007.
Robertson faces up to 40 years in prison, five years of supervised release and a $5 million fine for the controlled substance violation. He also faces up to 10 years in prison, three years of supervised release and a $250,000 fine for the firearms count. The court set sentencing for February 9, 2018.
The DEA, ATF, Lafayette Metro Narcotics Task Force, and the St. Martin Parish Narcotics Division of the St. Martin Parish Sheriff's Office conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
South Jersey Brother and Sister Admit Kickback Conspiracy Involving Military Parts for the U.S. NavyRead the Press Release
NEWARK, N.J. – The president and secretary of a Cherry Hill, New Jersey, machine shop today admitted paying kickbacks in return for subcontract work from a Philadelphia company that manufactured military parts for the U.S. Navy, Acting U.S. Attorney William E. Fitzpatrick announced.
John Schallenhammer, 57, of Atco, New Jersey, and his sister, Theresa Schallenhammer, 53, of Cherry Hill, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to separate informations charging them with conspiracy to violate the federal anti-kickback act. They were both released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
Christopher Sanchirico, 55, of King of Prussia, Pennsylvania, was the assistant purchasing manager for an entity identified in the information as “Subcontractor 1,” which was located in Philadelphia and manufactured shock-hardened circuit breakers and switchgears for installation on U.S. Navy surface ships, submarines, and aircraft carriers. Subcontractor 1 performed work on multiple U.S. Navy and Defense Logistics Agency maritime contracts as a first-tier subcontractor to a prime contractor working for the United States.
In July 2013, John Schallenhammer, the president of a machine shop identified in the information as “Subcontractor 2,” made an agreement with Sanchirico. In return for Sanchirico’s assistance in securing a manufacturing contract between Subcontractor 1 and Subcontractor 2, John Schallenhammer paid Sanchirico between five and 10 percent of the gross revenue from circuit breaker and switchgear components that Subcontractor 2 provided to Subcontractor 1. Theresa Schallenhammer, Subcontractor 2’s secretary, maintained records of the payments and sometimes made bank withdrawals for the kickbacks when John Schallenhammer was unable to do so.
From 2013 to 2016, the Schallenhammers paid Sanchirico approximately $150,000 in cash kickbacks.
John and Theresa Schallenhammer both face a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for both defendants is scheduled for Feb. 6, 2018.
Sanchirico pleaded guilty to a related charge on Oct. 10, 2017 and awaits sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the Naval Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont in Newport, Rhode Island, and agents of the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the investigation leading to the guilty pleas. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania, under the direction of Acting U.S. Attorney Louis D. Lappen, for its assistance.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.
Defense counsel:
John Schallenhammer: Blair R. Zwillman Esq., Millburn, New Jersey
Theresa Schallenhammer: Henry E. Klingeman Esq., and Ernesto Cerimele Esq., Newark
Shreveport woman sentenced to 10 years in prison for distributing methamphetamineRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Shreveport woman was sentenced to 120 months in prison for distributing methamphetamine.
Guadalupe Ponte, 27, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of conspiracy to possess with intent to distribute methamphetamine. She was also sentenced to five years of supervised release. According to the guilty pleas, DEA drug task force agents learned that Ponte was distributing methamphetamine in Shreveport. They recorded her on January 12, 2017 setting up sales and then observed her traveling to meet codefendant Rogelio Lopez, 47, of Longview, Texas. Agents arrested the defendants after they arrived at a hotel in separate vehicles. Agents found 82.9 grams of methamphetamine in Lopez’s car. While Ponte was being detained, agents saw a Ruger LC9S 9 mm semi-automatic handgun in her car, and they also saw an infant in the backseat. Agents found 326.6 grams of methamphetamine when they later searched Lopez’s Texas home. Lopez admitted to being Ponte’s supplier of methamphetamine. Ponte admitted to owning the firearm and selling methamphetamine for Lopez.
Lopez was sentenced on August 25, 2017 to 65 months in prison and five years of supervised release for conspiracy.
The DEA investigated this case with assistance from the Shreveport Police Department. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
Rome Man Sentenced for Possession of a Firearm as a FelonRead the Press Release
SYRACUSE, NEW YORK – Michael Dyer, age 33, of Rome, New York, was sentenced today to 10 months of weekend incarceration, as well as a 3-year term of supervised release, for illegally possessing a firearm as a felon.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
As part of his guilty plea, Dyer admitted that in January 2016, after being convicted for the sale of a controlled substance, he sold a 12 gauge shotgun and four boxes of ammunition to another person. Dyer further admitted that he told the buyer to create a bill of sale that omitted Dyer’s involvement as the seller because Dyer could not sell the gun as a felon.
This case was investigated by the Oneida County Drug Enforcement Task Force and the ATF, and was prosecuted by Assistant U.S. Attorney Robert S. Levine.
Rockland Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Adam Davis, 37, of Rockland, Maine, pled guilty today in U.S. District Court to illegally importing from China the synthetic opioid U-47700, also known as “Pink” or “U4,” and to illegally possessing a firearm while being a user of a controlled substance.
On November 14, 2016, the U.S. Drug Enforcement Administration listed U-47700 as a temporary Schedule 1 controlled substance on an emergency basis after it determined that the drug represented an imminent hazard to public safety.
On January 15, 2017, border agents intercepted a package from China which contained U-47700 that was destined for the defendant’s Rockland residence. On January 25, 2017, federal and state agents made a controlled delivery of the package to the defendant. The defendant was arrested after he accepted the package. The defendant admitted that he knew that the package contained U-47700 and that he ordered it from China. Agents also recovered a firearm while searching Davis’ apartment.
Davis is the first person convicted of a federal offense involving U-47700 in the District of Maine. He faces up to 20 years in prison and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by U.S. Immigration & Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service and the Maine Drug Enforcement Agency.
Ponemah Man Sentenced to 15 Months in Prison for Assault, Kidnapping and RobberyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of DARRIS JAY KINGBIRD, 33, to 15 months in prison for assault with intent to commit a felony offense. KINGBIRD, who was indicted on January 25, 2017, pleaded guilty on May 31, 2017, before Chief Judge John R. Tunheim in United States District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, on October 8, 2016, the Red Lake Police Department received a report of a female victim being physically assaulted by a man, who was later identified as KINGBIRD. Immediately after the assault, the victim was placed into the trunk of her car by KINGBIRD. The victim was eventually able to escape and KINGBIRD drove off in the victim’s car. Law enforcement later recovered the victim’s vehicle, which was parked next door to KINGBIRD’S residence. They also found multiple blood stains in the trunk and passenger compartment of the vehicle. As a result of the assault, the victim sustained injuries to her face, abdomen and legs.
This case is the result of an investigation conducted by the Red Lake Police Department and the FBI.
Assistant U.S. Attorney Clifford B. Wardlaw prosecuted the case.
Defendant Information:
DARRIS JAY KINGBIRD, 33
Ponemah, Minn.
Convicted:
- Assault with intent to commit a felony offense, 1 count
Sentenced:- 15 months in prison
- Three years supervised release
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600Owner of Kansas City Area Businesses Pleads Guilty to Bank FraudRead the Press Release
KANSAS CITY, KAN. - A Leavenworth woman who owned businesses in the Kansas City area pleaded guilty Tuesday to bank fraud, U.S. Attorney Tom Beall said.
Brenda Wood, 49, Leavenworth, Kan., pleaded guilty to two counts of bank fraud. In her plea, she admitted she made false statements to Farmers Bank in Great Bend. She told the bank that her company, Professional Cleaning and Innovative Building Services (PCI), had received a contract to provide cleaning services at an Internal Revenue Service building in Kansas City, Mo. In fact, the company did not receive the contract and did not even make the final round of bids. As a result, the bank extended a $350,000 line of credit. Wood submitted draw requests to the bank, falsely stating that the funds were needed to fulfill the contract.
In another incident, Wood created a check kiting scheme to artificially inflate her bank account balances. She exchanged and cross-deposited more than 473 insufficient fund checks between her accounts at Capital Federal Savings, Intrust Bank and the Credit Union of Leavenworth County.
Sentencing is set for Jan. 17. Both parties have agreed to recommend a sentence of 78 months in federal prison and restitution of at least $4.6 million.
Beall commended the Department of Labor, Office of Inspector General, the Special Investigator General for the Troubled Asset Relief Program, the Department of Labor Employee Benefits Security Administration, the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Owner of Tax Preparation Business Sentenced for Wire Fraud and Making A False ClaimRead the Press Release
Orlando, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Rigaud Colin (49, Apopka) to two years and three months in federal prison for wire fraud and making a false claim to the United States. He was also ordered to forfeit $189,409, which represents the proceeds Colin obtained as a result of his offenses. Colin pleaded guilty on July 25, 2017.
According to court documents, Colin was the owner and operator of Rigaud Investment Group, Inc., a tax preparation business in Orange County. Using his business, he executed a scheme to defraud the IRS by preparing and filing false and fraudulent income tax returns for residents of the U.S. Virgin Islands who were not eligible to receive tax refunds from the IRS. Colin included false and fraudulent addresses and education tax credit claims in the tax returns that he had electronically filed with the IRS on behalf of the Virgin Islands residents. As a result of Colin’s scheme, the IRS sustained a loss of $1,393,097.
This case was investigated by Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Orlando Woman Sentenced to Five Years in Federal Prison for Role in Cocaine Trafficking ConspiracyRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced Laidy Ann Rosaly-Donato (26, Orlando) to five years in federal prison for conspiracy to distribute and possessing with the intent to distribute cocaine. She pleaded guilty on August 1, 2017.
According to court documents, between October 2016 and May 2017, Rosaly-Donato received packages of cocaine that were mailed to her home by individuals in Puerto Rico and then later picked up by other co-conspirators. In total, she received 10 packages containing approximately 2 kilograms of cocaine each. She was paid $1,000 for each package she had received. Rosaly-Donato also received, counted, and stored drug proceeds inside her residence.
In May 2017, agents recovered two kilograms of cocaine from a package that had been mailed from Puerto Rico and was addressed to Rosaly-Donato. An undercover agent, posing as a mail carrier, delivered the package to Rosaly-Donato at her home. During the execution of a search warrant, agents recovered the cocaine package, which Rosaly-Donato had cut open. Agents also recovered additional drug ledgers, a money-counting machine, and $255,506 in drug proceeds.
This case was investigated by the Drug Enforcement Administration and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Operators of Millbury Plumbing Business Charged with Drug ConspiracyRead the Press Release
BOSTON – The operators of a family-owned business in Millbury were arrested and charged in federal court in Worcester with using their business to cover up a drug conspiracy.
Thomas Laverty, 37, of Clinton; Charles Laverty, 60, of Millbury; and Andrea Laverty, 61, of Millbury, were charged yesterday by federal criminal complaint with one count of conspiring to manufacture and distribute marijuana. Charles Laverty and Andrea Laverty were arrested today, and Thomas Laverty is currently in state custody.
It is alleged that Andrea, Charles, and their son, Thomas, used their business, Chuck Laverty & Son Inc., as a front for a large-scale, commercial marijuana cultivation and distribution operation. Laverty & Son vehicles, bank accounts, and locations were used to facilitate drug manufacturing, storage, and distribution.
On Oct. 17, 2017, law enforcement officers executed two search warrants: one at Laverty and Sons’ business warehouse in Clinton, which is attached to Thomas Laverty’s residence, where agents found a commercial-style marijuana grow operation, including more than 1,000 plants; and another at the residence of Charles and Andrea Laverty in Millbury, where agents found a large quantity of marijuana being dried and processed, as well as another marijuana grow operation.
It is further alleged that significant cash deposits were made into bank accounts controlled by Thomas Laverty and Andrea Laverty. For example, during one week in January 2017, approximately $12,100 in cash was deposited into Thomas Laverty’s bank account; these funds were then used to pay private school tuition and to make payments on multiple cars. In addition, in May 2017, Andrea Laverty used $28,000 derived from cash deposits as a down payment on an $80,000 2017 Chevrolet Corvette.
Thomas Laverty faces a sentence of no greater than 10 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $500,000. Charles Laverty and Andrea Laverty each face a sentence of no greater than five years in prison, a minimum of two years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the complaint are allegations. The defendants are each presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nurse Practitioner and Physician Indicted in Compounding Pharmacy Fraud SchemesRead the Press Release
A Mississippi-based nurse practitioner was charged in an indictment unsealed today for her role in a multi-million dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans and their respective family members. A Mississippi-based physician was charged in a separate indictment filed last week for his role in a similar scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Mike Hurst of the Southern District of Mississippi, Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Division and Special Agent in Charge Jerome R. McDuffie of the Internal Revenue Service Criminal Investigation (IRS-CI) New Orleans Field Office made the announcement.
Susan Perry N.P., 58, of Grand Bay, Alabama, and Albert Diaz M.D., 78, of Ocean Springs, Mississippi, were charged in separate indictments returned on Oct. 18, in the Southern District of Mississippi, in Hattiesburg. Perry’s indictment was unsealed upon her arrest and initial appearance today before U.S. Magistrate Judge John Gargiulo of the Southern District of Mississippi. Perry is scheduled to be arraigned on Oct. 25, at 10:30 a.m., and Diaz is scheduled to be arraigned on Nov. 1, at 10:30 a.m., both before Judge Gargiulo.
Perry was charged in a 13-count indictment with one count of conspiracy to commit health care fraud and wire fraud, four counts of wire fraud, one count of conspiracy to distribute and dispense a controlled substance, one count of distributing and dispensing of a controlled substance, one count of conspiracy to solicit and receive healthcare kickbacks, four counts of soliciting and receiving healthcare kickbacks and one count of making false statements. Diaz was charged in a 16-count indictment with one count of conspiracy to commit health care fraud and wire fraud, four counts of wire fraud, one count of conspiracy to distribute and dispense a controlled substance, four counts of distributing and dispensing a controlled substance, one count of conspiracy to falsify records in a federal investigation and five counts of falsification of records in a federal investigation.
The indictments allege that both Perry and Diaz participated in schemes to defraud TRICARE by prescribing medically unnecessary compounded medications, some of which included Ketamine, a controlled substance, to individuals they had not examined, for the purpose of having a Hattiesburg-based compounding pharmacy dispense these medically unnecessary compounded medications and to seek reimbursement from TRICARE. According to the indictments, between February 2013 and October 2016, TRICARE reimbursed the compounding pharmacy more than $3.3 million for compounded medications prescribed by Perry, and between October 2014 and December 2015, TRICARE reimbursed the compounding pharmacy more than $2.3 million for compounded medications prescribed by Diaz. Additionally, Perry is alleged to have received more than $50,000 in kickback payments from a marketer for the compounding pharmacy in return for prescribing the compounded medications, as well as having made false statements to the FBI. Diaz is alleged to have submitted falsified patient records in response to an audit conducted by TRICARE to make it appear as though he had examined patients before prescribing the compounding medications.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS-CI, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Inspector General, the Mississippi Bureau of Narcotics and other government agencies investigated the case. Trial Attorneys Dustin M. Davis, Katherine Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
New London Man Pleads Guilty to Distributing Heroin Involved in Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON SHEPHARD, also known as “Angel,” 19, of New London, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of distribution of heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on May 1, 2017, the New London Police Department received a 911 call regarding a drug overdose in New London. The caller indicated that a male in her apartment was unconscious and barely breathing. Police and emergency medical personnel responded to the apartment and attempted life-saving measures. The victim, who was 36, was transported to the hospital and later pronounced deceased. At the scene, officers seized numerous empty bags that contained a trace amount of white and brown drug residue.
The investigation revealed that SHEPHARD supplied the heroin consumed by the victim hours before the victim died.
On May 1 and May 3, New London Police conducted controlled purchases of heroin from SHEPHARD. Some of the heroin bags purchased contained fentanyl, and all were marked with the same brand stamp that marked the empty bags of heroin found at the scene of the overdose.
The Connecticut Office of the Chief Medical Examiner has determined that the victim’s death was caused by a combination of fentanyl and alcohol.
Judge Shea scheduled sentencing for January 19, 2018, at which time SHEPHARD faces a maximum term of imprisonment of 20 years.
SHEPHARD was arrested on a federal criminal complaint on May 31, 2017. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the New London Police Department. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
New Jersey Man Pleads Guilty to Intending to Distribute Crack and HeroinRead the Press Release
PLATTSBURGH, NEW YORK - Markell Reyes, age 20, of Jersey City, New Jersey, pled guilty today to possessing and intending to distribute crack cocaine and heroin.
The announcement was made by Acting United States Attorney Grant C. Jaquith; James J. Hunt, Special Agent in Charge of the New York Field Division of the U.S. Drug Enforcement Administration (DEA); and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Reyes admitted that while in Ogdensburg, New York, he possessed a bag that contained approximately 58 grams of crack, 5 grams of heroin, and 135 grams of N-ethyl pentylone, often marketed as “Molly,” all of which Reyes intended to distribute. The bag also contained a handgun.
United States District Judge David N. Hurd will sentence Reyes on February 22, 2017. Reyes faces at least 5 years and up to 40 years in prison, a term of post-imprisonment supervised release of at least 4 years and up to life, and a maximum $5 million fine.
This case was investigated by the United States Border Patrol and DEA, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
New Haven Man Charged with Distributing FentanylRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ALEX BORRERO, also known as “Red,” 50, of New Haven, was arrested yesterday on a criminal complaint charging him with distributing fentanyl and heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
BORRERO appeared today before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was released on a $50,000 bond into an inpatient drug counseling program.
As alleged in court documents, on February 28, 2017, the Wallingford Police Department and emergency medical personnel responded to a report of an untimely death of a 25-year-old male at a residence in Wallingford. At the scene, officers seized drug and non-drug evidence, including the victim’s cellphone and six empty wax folds bags that contained a white powder residue.
The Connecticut Office of the Chief Medical Examiner has determined that the victim’s death was caused by a combination of fentanyl and alprazolam (Xanax).
It is alleged that BORRERO was the source of the fentanyl involved in the overdose death of the victim.
This ongoing investigation also includes an overdose death of a 31-year-old male in Branford on May 18, 2017.
At the time of his arrest, it is alleged that BORRERO possessed approximately 30 grams of heroin and approximately $1,900 in cash.
The complaint charges BORRERO with possession with intent to distribute, and distribution of, fentanyl and heroin, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, Wallingford Police Department and Branford Police Department. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Neosho Woman Pleads Guilty to Social Security Fraud After Concealing $4 Million SettlementRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., woman pleaded guilty in federal court today to illegally receiving federal disability benefits for her son for seven years, while concealing a $4 million settlement that provided them with a home and income.
Kerry D. Sanders, 47, of Neosho, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of participating in a conspiracy to steal government property and one count of theft of government property.
By pleading guilty today, Sanders admitted that she conspired from May 2005 until July 2012 to receive at least $56,138 in Social Security disability benefits to which she was not entitled.
Sanders was approved to become her son’s representative payee when he was born in 2001 and began receiving Supplemental Security Income due to his disabilities. A $4 million monetary settlement was paid to her son surrounding his birth, with a conservatorship set up to receive the settlement proceeds that began with the first disbursement of $164,290 in 2005. Sanders admitted that she concealed this income from the Social Security Administration and provided false statements in order to continue receiving federal benefits.
Sanders also admitted that she concealed the purchase of a home by the conservatorship in April 2008. Sanders falsely claimed that she paid $400 per month to rent the home where she lived with her son, and which she shared with a co-conspirator. The conservatorship did not require either Sanders or her co-conspirator to pay rent for the home.
As the funds held in the conservatorship could be used for the support and maintenance of Sanders’s son, the conservatorship constituted both a resource and income, and as such, Sanders was required to report its existence to the Social Security Administration in its oversight of his eligibility for Supplemental Security Income. The actions of Sanders and her co-conspirator in concealing the conservatorship, the home, and the living arrangement led to the Social Security Administration paying at least $56,138 in benefits to which her son was not entitled.
Under federal statutes, Sanders is subject to a sentence of up to 15 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the Social Security Administration, Office of Inspector General.
Muskogee Man Pleads Guilty to Possession of Firearm, Ammunition in Furtherance of Drug TraffickingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that RIEN KEITH IRVING, age 21, of Muskogee, Oklahoma pled guilty to FELON IN POSSESSION OF FIREARM & AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both; and to POSSESSION OF A FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 60 months consecutive to any other sentence imposed, and up to a $250,000.00 fine or both.
The Indictment alleged that from on or about December 9, 2016, within the Eastern District of Oklahoma, the defendant, RIEN KEITH IRVING, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The Indictment further alleged that on or about December 9, 2016, within the Eastern District of Oklahoma, the defendant, RIEN KEITH IRVING, did knowingly possess a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
The charges arose from an investigation by the Muskogee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Montana Woman Indicted for Wire FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bigfork, Montana, woman was charged in federal district court with 35 counts of Wire Fraud.
Judy Lynn Carroll, age 58, was charged on August 22, 2017. She appeared before U.S. Magistrate Judge Veronica Duffy on October 23, 2017, and pleaded not guilty to the charges. The maximum penalty on each count upon conviction is 20 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Carroll devising a scheme to fraudulently obtain checks, prepaid debit cards, or wires from another individual between December 2000 and October 2016. The charges are merely an accusation and Carroll is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Carroll was released pending trial. A trial date has not been set.
Michigan man pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Michigan man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. William Henry Stephens, Jr., 45, of Inkster, pleaded guilty to possession with intent to distribute 100 grams or more of heroin.
On June 29, 2017, members of the Huntington FBI Drug Task Force executed a search warrant at 702 Washington Avenue in Huntington. Prior to the search, investigators conducting surveillance observed Stephens coming and going from the residence and conducting what appeared to be drug transactions. During the search, investigators seized approximately 140 grams of heroin, 44 grams of crack, and a Chinese SKS 7.62mm assault rifle with ammunition. Stephens admitted that he possessed the heroin and crack for distribution. Stephens also admitted that he possessed drugs and firearms seized by investigators during a separate search warrant previously executed on December 15, 2016. On that date, investigators searched 322 West 5th Avenue in Huntington and seized approximately 342 grams of heroin, 69 grams of cocaine, 109 30mg oxycodone pills and multiple firearms. As part of his plea agreement, Stephens admitted to all the drug trafficking and firearms activity charged in the indictment.
Stephens faces at least five and up to 40 years in federal prison when he is sentenced on January 22, 2018.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was brought 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.
- Follow us on Twitter: SDWVNews
Mexican Woman Sentenced for Trafficking MethamphetamineRead the Press Release
LAREDO, Texas – A 35-year-old woman from Nuevo Laredo, Mexico, has been ordered to prison following her conviction of conspiracy to possess with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Maria De Jesus Castillo-Flores pleaded guilty Oct. 5, 2016.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Castillo to serve a 120-month term of imprisonment. Not a U.S. citizen, she is expected to face deportation proceedings following her release from prison.
On Aug. 11, 2016, Castillo approached the U.S. Border Patrol Checkpoint located at mile marker 29 on Interstate 35, north of Laredo, as the driver of a passenger vehicle. At the primary inspection lane, an agent noticed that it appeared someone had tampered with the carpet under the driver’s seat. Authorities then x-rayed the vehicle, after which they discovered anomalies in the gas tank. Upon further investigation, they found 31 kilograms of liquid methamphetamine concealed in the gas tank. Castillo later admitted she was going to be paid to transport the controlled substance to Houston.
Castillo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Christopher dos Santos is prosecuting the case.
Maryland man admits to selling crack cocaineRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Hagerstown, Maryland man has admitted to a drug charge, United States Attorney William J. Powell announced.
Michael Anthony McIntosh, also known as “Lo, and “Polo,” age 46, pled guilty to one count of “Distribution of Cocaine Base.” Anthony admitted to selling crack cocaine in Berkeley County in November 2013.
McIntosh faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Marty Man Sentenced on Aggravated Sexual AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Marty, South Dakota, man convicted of Aggravated Sexual Abuse was sentenced on October 23, 2017, by U.S. District Judge Karen E. Schreier.
Gary Cournoyer, age 55, was sentenced to 135 months in custody, followed by 10 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Cournoyer was indicted for aggravated sexual abuse by a federal grand jury on April 5, 2016. He pled guilty on October 23, 2017.
Gary Cournoyer had sexual contact with an 11 year-old girl in January 2016. The contact occurred in Cournoyer’s home in Charles Mix County. Law enforcement was contacted after a relative discovered suspicious messages on a computer between Cournoyer and the girl. The girl was interviewed and disclosed that Cournoyer had the sexual contact with her after he brought her to his home to do some laundry. Investigators also learned that another child witnessed the sexual act.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Cournoyer was immediately turned over to the custody of the U.S. Marshals Service.
Marketing Company President Charged with Wire FraudRead the Press Release
TALLAHASSEE, FLORIDA – Michael D. Towner, 58, of Los Angeles, California, was arraigned today in the U.S. District Court in Tallahassee after a federal grand jury returned an indictment charging him with sixteen counts of wire fraud. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that Towner was president of Foundation Consultants Corporation (FCC) and the Towner Corporation, companies that provided marketing support for The Dream Foundation. The Dream Foundation is a nonprofit corporation established to create and market the Florida Live the Dream specialty license plate. Florida law permits companies handling marketing for specialty license plates to receive up to 25% of the total funds received from the sale of the plates.
The indictment further alleges that, between July 2010 and November 2015, Towner arranged to issue payments to FCC and the Towner Corporation in excess of the 25% permitted by Florida law. In total, Towner allegedly made or caused to be made transfers of more than $250,000 over the permitted amount to FCC and the Towner Corporation from the funds received through sale of the Florida Live the Dream specialty license plate. Towner also allegedly falsified annual reports detailing the amount of money distributed to the charities supported by the Dream Foundation.
The maximum penalty for wire fraud is 20 years in prison. The trial is scheduled for December 11, 2017, at 8:15 a.m. at the United States Courthouse in Tallahassee.
This case resulted from an investigation by the Department of Financial Services – Division of Investigative and Forensics Services Office of Fiscal Integrity and the Federal Bureau of Investigation. Assistant United States Attorney Gary Milligan is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Man Who Was Arrested with Murder Weapon Sentenced in Federal Firearms CaseRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man who was arrested with a rifle used in a homicide was sentenced Tuesday to 10 years in prison on a federal firearms charge, U.S. Attorney Tom Beall said.
Rudolph George, 35, Kansas City, Kan., was found guilty in a jury trial on one count of unlawful possession of a firearm following a felony conviction. During a trial in May 2017, prosecutors presented evidence that George had outstanding warrants for his arrest when investigators tracked him to a room at the Overland Park Place Hotel at 7000 W. 107th in Overland Park, Kan. Working with hotel staff, investigators arranged for nearby rooms to be evacuated. George was asked to leave his room so a pest control service could examine it. He was arrested in a hallway outside his room.
George was found to be in possession of an American Tactical 5.56 mm rifle and a knife. The rifle later was tested and confirmed to be the weapon used in a homicide on Sept. 22, 2015, in Kansas City, Mo.
Beall commended the FBI, the Kansas City, Mo., Police Department and U.S. Attorney Terra Morehead for their work on the case.
Man Who Paid for Sex with Child Sentenced to Ten Years in Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – CURTIS A. ANTHONY, 51, of Ardmore, Oklahoma, was sentenced today to 120 months in federal prison for child sex trafficking, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On June 16, 2015, a federal grand jury indicted Anthony and four other defendants for conspiring to engage in child sex trafficking. One of these defendants, Tonya Gay Gum, operated at least twenty phone numbers listed in the escort section of the Oklahoma City Yellow Pages. On October 24, 2014, at a commercial property he owned in Edmond, Oklahoma, Anthony met with 14- and 15-year-old girls who were being trafficked by Gum, along with pimps Maurice Johnson and Hiram Mitchell. After paying both girls to take off their clothes, Anthony paid to have sex with one of the girls.
On June 19, 2017, at the conclusion of a four-day trial, a jury convicted Anthony of conspiracy and child sex trafficking for his role as a customer of underage escorts. The judge instructed the jury that it could convict if Anthony had a reasonable opportunity to observe a minor victim, even if he did not know or recklessly disregard that victim’s age. The jury heard evidence that Anthony saw the girls in their underwear, touched both of them, and drove one of them to an ATM to get cash for the commercial sex transaction.
Today U.S. District Judge Robin J. Cauthron sentenced Anthony to 120 months in prison, to be followed by five years of supervised release. The United States anticipates he will also be required to pay restitution to victims; the court will conduct a hearing to determine the amount of restitution within 90 days.
The cases against three of Anthony’s four co-defendants have already been resolved. On November 19, 2015, Gum pled guilty to conspiracy to commit child sex trafficking. She was sentenced to four years in prison and three years of supervised release. Trung N. Duong, another customer of Gum, pled guilty to conspiracy to commit child sex trafficking on May 9, 2017, and was sentenced to two years in prison on August 29, 2017. Russell D. Ehrens, another customer, was acquitted on December 9, 2015, under jury instructions that required knowledge or reckless disregard of the victim’s age. In a government appeal in the cases against Duong, Anthony, and William M. Baker, the Tenth Circuit Court of Appeals held on February 14, 2017, that “reasonable opportunity to observe” the victim is sufficient to support a conviction under the federal statute prohibiting child sex trafficking. Baker’s case remains pending.
Johnson and Mitchell were also prosecuted. Johnson is currently serving 240 months in federal custody, and Mitchell is serving 120 months.
This case is the result of an investigation conducted by United States Department of Homeland Security and the Oklahoma Bureau of Narcotics and Dangerous Drugs. Assistant U.S. Attorneys McKenzie Anderson and David Petermann prosecuted the case.