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29 November 2017
Attorney General Sessions and Acting DEA Administrator Patterson Announce New Tools to Address Opioid CrisisRead the Press Release
Continuing to follow President Trump’s strong leadership on combatting the deadly opioid crisis, Attorney General Sessions today announced new resources and stepped up efforts to address the drug and opioid crisis.
Joined by Acting DEA Administrator Robert Patterson, Attorney General Sessions announced the following efforts during a press conference at the Department of Justice: over $12 million in grant funding to assist law enforcement in combating illegal manufacturing and distribution of methamphetamine, heroin, and prescription opioids; the establishment of a new DEA Field Division in Louisville, Kentucky, which will include Kentucky, Tennessee, and West Virginia, a move meant to better align DEA enforcement efforts within the Appalachian mountain region; and a directive to all U.S. Attorneys to designate an Opioid Coordinator to work closely with prosecutors, and with other federal, state, tribal, and local law enforcement to coordinate and optimize federal opioid prosecutions in every district.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “That’s why, under President Trump’s strong leadership, the Department of Justice has been taking action to make our drug law enforcement efforts more effective. Today we announce three new initiatives to do just that. First, we will invest $12 million in funding for our state and local law enforcement partners to take heroin and methamphetamine off of our streets. Second, we will restructure DEA's Field Divisions for the first time in nearly 20 years. Third, we will require all of our federal prosecutors' offices to designate an Opioid Coordinator who will customize our anti-opioid strategy in every district in America. These steps will make our law enforcement efforts smarter and more effective—and ultimately they will save American lives."
“DEA continually looks for ways to improve operations and interagency cooperation and more efficiently leverage resources,” said Acting DEA Administrator Robert W. Patterson. “By creating a new division in the region, this restructuring places DEA in lockstep with our partners in the area to do just that. This change will produce more effective investigations on heroin, fentanyl, and prescription opioid trafficking, all of which have a significant impact on the region.”
COPS Anti-Heroin Task Force Grants and Anti-Meth Program
The Community Oriented Policing Services (COPS) Office is awarding a total of $7.19 million in FY 2017 funding through the Anti-Heroin Task Force Program (AHTF). AHTF provides two years of funding directly to law enforcement agencies in states with high per capita levels of primary treatment admissions for heroin and other opioids. This funding will support the location or investigation of illicit activities related to the distribution of heroin or the unlawful distribution of prescription opioids.
The COPS Office will also award a total of $5.03 million in FY 2017 funding through the COPS Anti-Methamphetamine Program (CAMP). The state agencies receiving funding today have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies will be awarded two years of funding through CAMP to support the investigation of illicit activities related to the manufacture and distribution of methamphetamine.
The complete list of Anti-Heroin Task Force Program (AHTF) award recipients, including funding amounts, can be found here.
The complete list of COPS Anti-Methamphetamine Program (CAMP) award recipients, including funding amounts, can be found here.
Establishment of DEA Louisville Field Division
The DEA will establish the Louisville Field Division – its 22nd division office in the United States – on Jan. 1, 2018. It will include Kentucky, Tennessee, and West Virginia. This action converts the existing Louisville District Office into a field division in an effort to enhance DEA enforcement efforts within the Appalachian mountain region and unify drug trafficking investigations under a single Special Agent in Charge. DEA anticipates that this change will produce more effective investigations on heroin, fentanyl and prescription opioid trafficking, all of which have a significant impact on the region. The division will also better align DEA with the U.S. Attorney’s Office districts in those areas, similar to current ATF and FBI offices, and also to the Appalachia High Intensity Drug Trafficking Areas (HIDTA) Program.
The Louisville Division will be led by Special Agent in Charge D. Christopher Evans, who comes from the Detroit Field Division where he served as Associate Special Agent in Charge.
Designation of Opioid Coordinators
Every U.S. Attorney will designate an Opioid Coordinator by the close of business on Dec. 15, 2017. Each USAO Opioid Coordinator will be responsible for facilitating intake of cases involving prescription opioids, heroin, and fentanyl; convening a task force of federal, state, local, and tribal law enforcement to identify opioid cases for federal prosecution, facilitate interdiction efforts, and tailor their district’s response to the needs of the community it serves; providing legal advice and training to AUSAs regarding the prosecution of opioid offenses; maintaining statistics on the opioid prosecutions in the district; and developing and continually evaluating the effectiveness of the office’s strategy to combat the opioid epidemic.
The Attorney General’s memo to United States Attorneys can be viewed here.
Attorney General Jeff Sessions Appoints U.S. Trustee and Acting U.S. Trustees to Cover Six U.S. Trustee Program RegionsRead the Press Release
WASHINGTON, D.C. – Attorney General Jeff Sessions has appointed one interim U.S. Trustee and five Acting U.S. Trustees to cover six U.S. Trustee Program (USTP or Program) regions, the Executive Office for U.S. Trustees (EOUST) announced today. The effective date of each appointment correlates with the upcoming retirements of Judy A. Robbins, U.S. Trustee for Regions 4 and 7, and Guy G. Gebhardt, Acting U.S. Trustee for Region 21, and the detail of Gail B. Geiger, Acting U.S. Trustee for Region 18, to a leadership position in the EOUST.
Region 4 – District of Columbia, Maryland, South Carolina, Virginia, and West Virginia: John P. Fitzgerald III is appointed as the Acting U.S. Trustee for Region 4 effective Jan. 1, 2018. Mr. Fitzgerald is the Assistant U.S. Trustee in the Boston office of the USTP. Region 4 is headquartered in Columbia, South Carolina, with additional offices in Baltimore and Greenbelt, Maryland; Alexandria, Norfolk, Richmond, and Roanoke, Virginia; and Charleston, West Virginia.
Region 5 – Louisiana and Mississippi: David W. Asbach is appointed as the Acting U.S. Trustee for Region 5 effective Jan. 1, 2018. Mr. Asbach is the Assistant U.S. Trustee in the Milwaukee office of the USTP. Region 5 is headquartered in New Orleans with additional offices in Shreveport, Louisiana, and Jackson, Mississippi.
Region 7 – Southern and Western Districts of Texas: Henry G. Hobbs, Jr., is appointed as the Acting U.S. Trustee for Region 7 effective Jan. 1, 2018. Mr. Hobbs is the Assistant U.S. Trustee in the USTP’s office in Austin, Texas, and has served as the Acting U.S. Trustee for Region 5 since January 2011. Region 7 is headquartered in Houston with additional offices in Austin, Corpus Christi, and San Antonio, Texas.
Region 12 – Iowa, Minnesota, North Dakota, and South Dakota: James L. Snyder is appointed as the Acting U.S. Trustee for Region 12 effective Jan. 7, 2018. Mr. Snyder is the Assistant U.S. Trustee in the Program’s Des Moines, Iowa, office. Region 12 is headquartered in Cedar Rapids, Iowa, with additional offices in Des Moines; Minneapolis, Minnesota; and Sioux Falls, South Dakota.
Region 18 – Alaska, Idaho, Montana, Oregon, and Washington: Gregory M. Garvin is appointed as the Acting U.S. Trustee for Region 18 effective Dec. 23, 2017. Mr. Garvin is the Assistant U.S. Trustee in the USTP’s Denver office. Region 18 is headquartered in Seattle with additional offices in Anchorage, Alaska; Boise, Idaho; Great Falls, Montana; Eugene and Portland, Oregon; and Spokane, Washington.
Region 21 – Florida, Georgia, Puerto Rico, and the U.S. Virgin Islands: Daniel M. McDermott is appointed as the interim U.S. Trustee for Region 21 effective Jan. 7, 2018. Mr. McDermott also will continue as U.S. Trustee for Region 9 (Michigan and Ohio), where he has served since his appointment in July 2008. Region 21 is headquartered in Atlanta with additional offices in Miami, Orlando, Tallahassee, and Tampa, Florida; Macon and Savannah, Georgia; and San Juan, Puerto Rico.
“On behalf of the U.S. Trustee Program, I extend my deepest gratitude to Ms. Robbins and Mr. Gebhardt for their immeasurable contributions to federal service throughout their 34- and 28-year careers in government, respectively,” said USTP Director Cliff White. “I also am extremely appreciative of our dedicated colleagues who have so graciously agreed to take on additional duties. Their wealth of experience and knowledge will allow the Program to move forward seamlessly in carrying out our important mission.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 92 field office locations.
Alamogordo Felon Sentenced for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Colby Edward Steele, 32, of Alamogordo, N.M., was sentenced today in federal court in Las Cruces, N.M., for violating the federal firearms laws by unlawfully possessing a firearm and ammunition. Steele will serve 41 months in prison followed by three years of supervised release.
Steele was arrested on Feb. 3, 2017, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Feb. 2, 2017. According to the complaint, Steele was arrested in the desert near Alamogordo while attempting to flee from law enforcement officers who were executing a warrant for Steele’s arrest on a parole violation out of Arizona. Officers located a firearm with a chambered round in Steele’s pants pocket and multiple rounds of ammunition in the sand near Steele incident to Steele’s arrest. Steele was prohibited from possessing firearms or ammunition because he previously had been convicted in 2003 of possession of a controlled substance in Otero County, N.M., and in 2008 for being a felon in possession of a firearm in Dona Ana County, N.M.
On May 2, 2017, Steele pled guilty to a felony information charging him with being a felon in possession of a firearm. In entering the guilty plea, Steele admitted that on Feb. 2, 2017, he possessed a handgun and ammunition when he was arrested by law enforcement. Steele acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Las Cruces office of the FBI, the U.S. Marshals Service and the U.S. Border Patrol. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
30 Savannah Residents Charged with Federal Firearms, Drug Trafficking, Robbery, and Related OffensesRead the Press Release
SAVANNAH, GA – Federal indictments and criminal complaints were unsealed yesterday against 30 Savannah residents charged with federal firearms, drug trafficking, robbery, and related offenses. The charges are the result of joint federal, state, and local efforts to reduce violent crime and drug activities in the Savannah area. The focus of this joint operation was the historic Cuyler-Brownsville neighborhood, a small neighborhood near downtown Savannah that has seen a significant rise in crime in the past year.
The Cuyler-Brownsville neighborhood is one of the oldest neighborhoods in Savannah, Georgia, roughly bounded by Anderson Lane, West 31st Street, Montgomery Street, Victory Drive, Ogeechee Road, and Hopkins Street. It is a residential neighborhood that was designed shortly after the Civil War, and it is recognized as a National Register Historic District. The neighborhood contains homes, churches, schools, and businesses. Over the last year, there has been an increase in violence and drug activity in the neighborhood. Some Cuyler-Brownsville residents have expressed to local police that they fear sitting on their own porches because of shootings.
To address the apparent increase in violent crime and drug activities, the Savannah Chatham Metropolitan Police Department (SCMPD), the Georgia Bureau of Investigation (GBI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), began a joint investigation to identify and arrest the criminals operating in and around the neighborhood. Law enforcement used a number of investigative techniques to identify the targets, including undercover purchases of drugs and firearms and extensive surveillance.
In early November 2017, the federal grand jury for the Southern District of Georgia indicted 13 of the 30 defendants identified as a result of this investigation. Those indictments initially were returned under seal. Last week, a federal Magistrate Judge issued sealed criminal complaints and arrest warrants against the other 17 defendants.
On November 28, 2017, local, state, and federal law enforcement officers executed four federal search warrants, two state search warrants, and dozens of arrests warrants. Federal detainers additionally were placed on a number of defendants who are presently incarcerated on state charges. Today, the indictments complaints, and federal warrants were unsealed, and many of the charged defendants made their initial appearance in federal court.
The federal charges and maximum penalties include:
- Felon in Possession of Firearm, 18 U.S.C. § 922(g)(1), which typically carries a maximum sentence of 10 years’ imprisonment. However, if a defendant has three prior convictions for violent crimes or serious drug offenses, then the minimum sentence is 15 years’ imprisonment and the maximum sentence is life imprisonment.
- Drug User in Possession of Firearm, 18 U.S.C. § 922(g)(3), which carries a maximum sentence of 10 years’ imprisonment.
- Distribution of Controlled Substances, and Possession of Controlled Substances with Intent to Distribute, 21 U.S.C. § 841(a)(1), which typically carries a maximum sentence of 20 years’ imprisonment, but may carry increased minimum and maximum terms of imprisonment based on the quantity of controlled substances involved and the prior drug convictions of the defendant.
- Interference with Commerce by Robbery of a Business, 18 U.S.C. § 1951, which carries a potential sentence of 20 years’ imprisonment.
- Carrying a Firearm During and in Relation To a Crime of Violence or Drug Trafficking Crime, 18 U.S.C. § 924(c), which carries a potential sentence of not less than 5 years’ imprisonment, and up to life imprisonment, consecutive to any other sentence imposed.
During the investigation, law enforcement investigators seized dozens of firearms, including semi-automatic pistols, revolvers, assault-style rifles, shotguns, and firearms with extended magazines, along with hundreds of rounds of ammunition. Many of the firearms seized during this investigation had previously been stolen and were connected to prior shootings in Savannah. One stolen firearm that was recovered was used in four separate shootings within the Cuyler-Brownsville neighborhood. Another firearm recovered was used in eleven prior shootings in and around Savannah. Additionally, investigators seized body armor and quantities of numerous controlled substances, including cocaine, crack cocaine, marijuana, MDMA (ecstasy), heroin, and oxycodone.
The Savannah residents charged with federal crimes include:
Jamall Brightwell, age 22,
Frederick Brown, a/k/a “Freddie B,” age 36,
Derrick Butler, a/k/a “Rico,” age 29,
Animahaun Cole, age 43,
Trishon Collins, age 23,
Andre Cooper, a/k/a “Minuteman,” a/k/a “Coop,” age 30,
Deandre Davis, age 31,
Omesimus Franklin, 42,
Baheem Frazier, age 25,
Jadonte Gadsden, a/k/a “Jadonte Hood,” age 20,
George Graham, age 38,
Lorenzo Graham, a/k/a “Zo,” age 32,
Eshon Grant, age 25,
Dennis Grubbs, a/k/a “Lil Red,” age 33,
Julian Harris, a/k/a “Ju Ju,” age 50,
Nathaniel Harvey, age 20,
Darrell McRae, a/k/a “General,” a/k/a “Ghetto,” age 44,
George Truman Polite, age 29,
Joseph Price, age 32,
Emmitt Scott, a/k/a “Scooda,” 32,
John Scott, age 20,
Shawn Seibert, age 26,
Leonard Washington, a/k/a “Guzzi,” age 37,
Floyd Williams, a/k/a “Ricardo Williams,” age 65,
Raheem Williams, a/k/a “Bucket,” age 25,
Raynard Williams, age 20,
Tyrone Williams, a/k/a “T Y,” age 42,
Quentin Wright, age 35,
Deonta Young, a/k/a “Fluid,” a/k/a “Flow,” a/k/a “Lil D,” a/k/a “D,” age 27, and
Larry Young, age 39.
Some of the defendants are alleged in the pending federal charges to have actively employed firearms during criminal activity. For example, Quentin Wright, is charged with brandishing and using a firearm during a robbery of a Savannah business. Deonta Young is charged with possessing a firearm and ammunition that he allegedly used to kill one victim and injure another at a Savannah residence. (Mr. Young also faces additional state charges, including murder, arising from this incident.)
United States Attorney Attorney Bobby L. Christine said, “The federal government is committed to working with local and state law enforcement agencies to make our neighborhoods safe again. Families should be able to sit on their own porches and children able to play in front yards without fear of being hit by a stray bullet. Citizens called for help, and we responded. Let this prosecution serve as notice: violent crime in Savannah will equal lengthy federal jail time.”
“This operation has dismantled a serious criminal enterprise which funneled guns and drugs into our communities,” said ATF Special Agent in Charge Wayne Dixie. “ATF and its law enforcement partners acted quickly and judiciously on information developed during this ten month long investigation. The safety of the public is at the core of ATF’s mission, and we stand at the front line eradicating violent crime from our streets.”
GBI Special Agent in Charge Jamie Jones said, “Cases and outcomes like this are a true testament to the fortitude of agents to pursue and diligently investigate all avenues presented to them. This case is also an example of the teamwork and collaborative efforts that exist among local, state, and federal law enforcement agencies.”
“This operation highlights the importance of the partnerships between law enforcement agencies,” said Chatham County District Attorney Meg Heap. “I would like to thank them for the time and energy that went into making this project successful. The dedication of all the partners has contributed to the reduction of crime in some of the most crime-ridden neighborhoods in our community.”
SCMPD Chief Joseph H. Lumpkin, Sr., said, “The SCMPD certainly appreciates the collaboration, cooperation, and engagement of our local, state, and federal law enforcement partners. We value and appreciate the support of the U.S. Attorney’s Office and the District Attorney’s Office and their commitment to aggressively addressing violent criminals. Many violent offenders were taken off the street in this joint operation, and those numbers will continue to climb. We will keep a laser focus on criminals, groups, and gangs in this community that commit violent acts. We will arrest and prosecute them to the fullest extent of the law to make Savannah-Chatham a safer place.”
Everett Ragan, Director of the Chatham-Savannah Counter Narcotics Team, said, “The success of this investigation further solidifies the importance of partnerships in the fight to rid this community of dangerous drugs and individuals.”
United States Attorney Christine emphasized that an indictment or criminal complaint is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The operation was investigated by ATF, GBI and SCMPD, with assistance from the U.S. Marshals Service, the Chatham-Savannah Counter Narcotics Team (CNT) and the Chatham County Sheriff’s Office. Assistant United States Attorneys Greg Gilluly, Tania Groover and Matthew Josephson are prosecuting these cases for the United States.
Attorney General Jeff Sessions announced last month a recommitment of the United States Department of Justice to Project Safe Neighborhoods (PSN), a program dedicated to bringing together federal, state, and local law enforcement to reduce violent crime and make neighborhoods safer for everyone. The United States Attorney’s Office incorporated key components of the PSN strategy into the Cuyler-Brownsville operation, including strong federal involvement, the cultivation of partnerships with local law enforcement and community stakeholders, targeted enforcement in those areas most affected by violent crime, and outreach efforts designed to prevent violent crime before it occurs.
For any questions, please contact Appellate Chief R. Brian Tanner at (912) 652-4422.
- Felon in Possession of Firearm, 18 U.S.C. § 922(g)(1), which typically carries a maximum sentence of 10 years’ imprisonment. However, if a defendant has three prior convictions for violent crimes or serious drug offenses, then the minimum sentence is 15 years’ imprisonment and the maximum sentence is life imprisonment.
28 November 2017
Weston Man Guilty of Insider TradingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal jury in Hartford has found EDWARD J. KOSINSKI, 70, of Weston, guilty of insider trading offenses. The trial before U.S. District Judge Vanessa L. Bryant began on November 13 and the jury returned its verdict this afternoon.
According to the evidence presented during the trial, on January 29, 2014, KOSINSKI entered into a Clinical Study and Research Agreement with an authorized agent of Regado Biosciences, Inc., formerly a Delaware corporation whose common stock traded on the NASDAQ under the ticker symbol “RGDO.” KOSINSKI, as a principal investigator for Regado’s clinical trial, was required to maintain in strict confidence all confidential information he received from Regado or its agent during the course of the clinical trial. In May 2014, KOSINSKI owned 40,000 shares of Regado common stock.
On June 29, 2014, KOSINSKI and other principal investigators received an email from the clinical trial team stating that there had been several allergic reactions during the clinical trial, the acceptance of new subjects was put on hold and the Data and Safety Monitoring Board (“DSMB”) would be reviewing the recent events. On June 30, 2014, while in possession of this non-public information, KOSINSKI sold his 40,000 shares of Regado common stock for between $6.59 and $7.00 per share. On July 2, 2014, after the close of the market, Regado publicly announced that the DSMB initiated an unplanned review of the clinical trial and patient enrollment had been suspended until the DSMB completed its review. On July 3, 2014, the stock fell $3.95 from the day’s previous closing price, to close at $2.81.
By selling his shares of Regado stock, KOSINSKI avoided a loss of approximately $160,000.
On July 29, 2014, KOSINSKI and other principal investigators received an email from the clinical trial team stating that a death occurred in the clinical trial and that the trial was on hold. On July 31, 2014, while in possession of this material, non-public information, KOSINSKI purchased 50 Regado common stock put option contracts with a strike price of $2.50. On August 25, 2014, before the market opened, Regado publicly announced that it permanently halted the clinical trial and the price of Regado common stock fell approximately 60 percent. KOSINSKI then purchased 5,000 shares of Regado common stock for approximately $1.13 per share and exercised his put options, netting more than $3,000.
KOSINSKI was convicted of two counts of securities fraud-insider trading, an offense that carries a maximum term of imprisonment of 20 years on each count. A sentencing date is not scheduled.
KOSINSKI is released on a $500,000 bond pending sentencing.
This matter was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.
In a related federal civil matter, KOSINSKY has been charged by the Securities and Exchange Commission. (Securities and Exchange Commission v. Edward J. Kosinski 3:16-cv-01322)
Westbrook Man Pleads Guilty to SNAP and WIC Trafficking Conspiracy, Money Laundering and Theft of Government FundsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Ali Ratib Daham, 40, of Westbrook, Maine, pleaded guilty today in U.S. District Court to SNAP and WIC trafficking conspiracy, money laundering and theft of federal MaineCare funds. Daham was charged by indictment on April 24, 2017.
Court documents show that from 2011 to 2017, Daham owned the Ahram Halal Market in Portland. The Supplemental Nutrition Assistance Program (“SNAP”) is a federal program, formerly known as the Food Stamp Program, designed to raise the level of nutrition among low-income households. The Special Supplemental Nutrition Program for Women, Infants and Children (“WIC”) is a federal program that provides supplemental food, health care referrals and nutrition for certain low-income women, and to infants and children up to age five who were found to be nutritionally at risk. Ahram became a SNAP retailer in 2011 and a WIC retailer in 2012.
According to court records, from 2011 through April 2016, Daham conspired with others to give cash to customers at Ahram in exchange for SNAP or WIC benefits plus a fee, in violation of the rules of these programs and federal law. During that period, Ahram received over $4 million in SNAP and WIC receipts, at least $1.4 million of which were obtained illegally. Daham also laundered proceeds of the conspiracy and stole at least $39,000 in MaineCare benefits for himself and his family by underreporting his income and assets to the Maine Department of Health and Human Services (“Maine DHHS”).
“The defendant stole from programs designed to provide nutritional items to some of our most vulnerable community members – low income households, mothers, infants and children,” said U.S. Attorney Halsey B. Frank. “The defendant put his own financial profit above their needs. People who defraud these programs should expect to be brought to justice.”
“Mainers can take comfort knowing that our dedicated Fraud Investigation and Recovery Unit (“FIRU”) team is hard at work every day, ensuring state welfare benefits are going to the Mainers who need them most,” said Maine DHHS Commissioner Ricker Hamilton.
Daham faces up to five years in prison for conspiracy and ten years for theft of government funds, and a fine of up to $250,000 on each count. He faces up to 20 years in prison and a $500,000 fine for money laundering. In a plea agreement, Daham agreed to pay $1,446,372 in restitution, including $80,000 at or prior to sentencing, and agreed to the forfeiture of $80,814 in cash that was seized from him in 2016. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation; the U.S. Department of Agriculture, Office of Inspector General; the Internal Revenue Service-Criminal Investigation; and the Maine DHHS, FIRU.
West Haven Man Who Distributed Xanax that Contributed to Overdose Death is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CLARENCE BELL, also known as “Solo,” 22, of West Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to time served and three years of supervised release for illegally distributing Xanax that contributed to an overdose death last year. Judge Underhill ordered BELL to serve the first year of supervised release in home confinement with electronic monitoring.
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, at approximately 6:10 a.m. on May 24, 2016, the West Haven Police Department and emergency medical personnel responded to a residence in West Haven on report of a sudden death of a 20-year-old male. Upon arrival, the initial responding patrol units determined that the death was suspicious in nature and appeared to be drug related. The investigation, which included witness interviews and analysis of phone records and surveillance cameras, revealed that at approximately 10:00 p.m. on May 23, 2016, the victim purchased a quantity of Xanax pills from BELL. The victim them crushed approximately three of pills and snorted the powder.
The victim’s autopsy report states the official cause of death as acute intoxication due to the combined effects of heroin, alprazolam (Xanax) and cocaine.
BELL was arrested on a federal criminal complaint on September 26, 2016, and has been released on a $25,000 bond since September 29, 2016. On May 17, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of Xanax, a Schedule IV controlled substance.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, the DEA’s New Haven Tactical Diversion Squad and the West Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waterbury Man Sentenced to 17 Years in Prison for Enticing Minors to Engage in Sexual Activity on SkypeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN EASTMAN, 50, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 204 months of imprisonment, followed by a lifetime of supervised release, for enticing minors to engage in sexually explicit conduct during online video chats.
According to court documents and statements made in court, between June and November 2012, EASTMAN engaged in video chats with minors over the internet using his computer and online video chatting services such as Skype. During these video chats, EASTMAN enticed the minors to engage in sexually explicit conduct, which EASTMAN recorded or photographed and then saved on his computer. In order to deceive and entice the minors, EASTMAN posed as famous singers and musicians that are popular to teenagers.
As an example, in November 2012, EASTMAN used the screen name justin.bieber727 to communicate via Skype with a female who was under the age of 18. During the video chat, EASTMAN asked the minor to expose herself and pose in a sexually explicit manner. EASTMAN then saved on his computer a still image of the female exposing herself.
EASTMAN has been detained since his arrest on related state charges in May 2013. On March 2, 2017, he pleaded guilty to one count of use of an interstate facility to persuade a minor to engage in unlawful sexual activity.
EASTMAN’s criminal history includes 31 convictions, including convictions for attempted sexual assault in the fourth degree and risk of injury to a minor relating to inappropriate contact he had with a nine-year-old girl approximately 20 years ago. As a result of these convictions, he was placed on the sex offender registry for 10 years.
This matter was investigated by Homeland Security Investigations and the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Upshur County man admits to his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – A Buckhannon, West Virginia man has admitted today to distributing methamphetamines, United States Attorney Bill Powell announced.
Brett Allen Reed, age 23, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine - Aiding and Abetting.” He admitted to aiding another person in distributing methamphetamines in Upshur County in March 2017.
Reed face ups 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
U.S. District Court and U.S. Attorney’s Office warn of jury duty scamRead the Press Release
Scammers pose as U.S. Marshals and threaten arrest if victim does not pay a fine
PRESS RELEASE
Indianapolis, Indiana – November 22, 2017: Chief U.S. District Judge Jane E. Magnus-Stinson and U.S. Attorney Josh Minkler warn the public of a nationwide scam in which the callers pose as U.S. Marshals or other government officials and claim that the victim is about to be arrested for not appearing for jury duty, but can avoid arrest by paying a fine.
The scammers often provide information that seems very convincing, including the real names of federal judges or court employees, the location of the courthouse, and case and badge numbers. The victim has every reason to believe the call is legitimate. The caller then tells the victim they can avoid arrest by paying an immediate fine and walks them through purchasing a prepaid debit or gift card or making an electronic payment to satisfy the “fine.”
On behalf of the U.S. District Court for the Southern District of Indiana, Chief Judge Magnus-Stinson said, “The people conducting this scam can be very convincing. They call their law-abiding victims and terrify them with threats of arrest and jail unless they pay up immediately. The U.S. Courts do not operate this way. In no instance will a court official, U.S. Marshal, or other government employee contact someone and demand payment or personal information by phone or email. This is a scam, and a lot of people are being hurt.”
“Those who take advantage of trusting citizens must know that there is zero tolerance for this type of behavior,” said Minkler. “Fraudsters and other scammers will face the full force of federal law enforcement for such activity.”
Residents of the Southern District of Indiana who believe they have been the victim of such a scam are encouraged to report the incident to the District Court Clerk’s Office at 317-229-3700; the Federal Trade Commission at https://www.ftccomplaintassistant.gov; and the U. S. Marshals Service at 317-226-6566.
Here is additional information on things to remember, who to call, and what to do if you are contacted by a scammer:
A court will never ask for a credit/debit card number, wire transfers, or bank routing numbers over the phone for any purpose.
A prospective juror who disregards a summons will be contacted by the District Court Clerk’s Office by mail and may, in certain circumstances, be ordered to appear before a judge.
A fine will never be imposed until after an individual has appeared in court and been given the opportunity to explain a failure to appear.
Do not divulge personal information or financial information to unknown callers.
Report scams to the District Court Clerk’s Office, U.S. Marshals Service, or Federal Trade Commission.
You can remain anonymous when you report.
You can authenticate a call by contacting the Clerk’s Office of the U.S. District Court in Indianapolis at (317) 229-3700 to verify that you were not summoned for jury duty and that the scam call did not come from the court.
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Three Individuals Charged in Florida-based Investment Fraud Scheme that Defrauded over 150 InvestorsRead the Press Release
A grand jury in Miami indicted three individuals for their alleged participation in an investment fraud scheme that targeted investors throughout the United States, defrauding them out of approximately $15 million. The main office operated out of Sunrise, Florida.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Daniel Joseph Touizer, 44, of Aventura, Saul Daniel Suster, 65, of Sunny Isles, and John Kevin Reech, 55 of Delray Beach, were charged with conspiracy to commit mail fraud and wire fraud and substantive mail fraud charges. In addition, Touizer was charged with substantive wire fraud charges as well as conspiracy to commit money laundering and substantive money laundering charges.
The Indictment charges a conspiracy involving the sale of stock in various investment companies owned and operated by Touizer. According to the Indictment, from July 2010 to November 2017, the defendants solicited investors located throughout the United States to buy shares or ownership units in several companies, including, Omni Guard, LLC, Infinity Diamonds, LLC, Infinity Direct Insurance, LLC, d/b/a Covida Holdings, LLC, Wheat Capital Management, LLC, Wheat Self-Storage Partners I, LP, Wheat Self-Storage II, LP, and Wheat Self-Storage Partners III, LP (collectively referred to as the “Investment Companies”).
The materially false statements, included, but were not limited to, statements that the Investment Companies were successful and profitable and would provide a “safe and profitable investment,” that the value of the investment would increase significantly, investor funds would be used for sales and marketing, working capital and general corporate purposes, and that Touizer did not personally take a salary or draw on funds invested in certain Investment Companies.
As stated in the Indictment, depending on which Investment Company stock they offered, the defendants and their co-conspirators’ stole between 50% and 80% of investor proceeds in undisclosed commissions and fees.
Mr. Greenberg commended the investigative efforts of the FBI. Mr. Greenberg also thanked the Florida Office of Financial Regulation. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Individuals who believe that they may be a victim in this case should contact the FBI at www.fbi.gov for more information.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Suburban Pittsburgh Man Pleads Guilty to Hate CrimeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to one charge of violating the Hate Crimes Prevention Act, Acting United States Attorney Soo C. Song announced today.
Jeffrey Allen Burgess, age 55, of Pittsburgh, PA, pleaded guilty to one-count before United States District Judge Nora Barry Fischer.
According to information presented to the Court, on or about November 22, 2016, Burgess violated the Hate Crimes Prevention Act by willfully causing bodily injury to A.M. because of A.M.’s actual and perceived race, color, and national origin.
Judge Fischer scheduled sentencing for March 30, 2018 at 4:45 p.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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Rachael L. Dizard and Civil Rights Division Trial Attorney Tona Boyd are prosecuting this case.
The Federal Bureau of Investigation and the Bethel Park Police Department conducted the investigation that led to the prosecution of Burgess.
Sisters Who Defrauded Postal Service Sentenced to Five and Four Years in Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – BIRDIE JO HOAKS, 47, and BECKY JO HOAKS, 47, both of Choctaw, Oklahoma, were sentenced today to 60 and 48 months respectively in federal prison for conspiring to steal U.S. postage stamps, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On May 18, 2017, the defendants, who are identical twins, were indicted on one count of conspiracy and one count each of theft of government property. The Indictment alleged that from June 2016 through February 2017, they opened personal checking accounts at various banks, using small cash deposits ranging from $5 to $200. Working together, they wrote dozens of bogus checks—i.e., checks backed by insufficient funds and checks written on closed accounts—at United States post offices and contract postal units throughout the Western District of Oklahoma to obtain thousands of U.S. postage stamps.
Both defendants pleaded guilty to conspiracy on June 27, 2017. Each agreed to pay $61,993.38 in restitution, mostly to the U.S. Postal Service.
Today U.S. District Judge David L. Russell sentenced Birdie Jo Hoaks to 60 months in prison, the statutory maximum. He sentenced Becky Jo Hoaks to 48 months in prison. Both women will serve three years of supervised release after their prison terms.
The sisters have extensive criminal histories of fraud spanning more than two decades and in jurisdictions from New York to California. In May 2007, for example, they were featured in a Chicago Tribune article entitled "The Incredible True-Life (mis)Adventures of the Hoaks Sisters: Deception, Confusion, Theft, Betrayal, Foot Surgery." And in July 2012, Birdie Jo Hoaks was the subject of a Dateline NBC investigative report. These are their first federal criminal convictions.
This case is the result of an investigation conducted by United States Postal Inspection Service. Assistant U.S. Attorney Amanda Maxfield Green prosecuted the case.
Rhode Island Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON - A Rhode Island man pleaded guilty today in federal court in Boston to armed bank robbery.
Michael A. Dirocco, 35, pleaded guilty to one count of armed bank robbery. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for March 6, 2018.
On Nov. 14, 2014, two men entered a branch of the Webster Bank in Seekonk, Mass. One of the men vaulted over the teller’s counter and started taking money from the drawers. The other man brandished what appeared to be a black semi-automatic handgun and pointed it at the tellers. The two then fled the scene in a large black SUV with $10,065 in stolen cash.
A short time later, an individual in Rhode Island observed two men removing license plates from a large black SUV and exchanging them with Rhode Island plates. The individual was able to record the Rhode Island license plate numbers and provide them to law enforcement officers. The officers then spoke to the registered owner of the vehicle with Rhode Island license plates and determined that the owner’s son, Dirocco, was operating her vehicle. When officers in Rhode Island later located the black SUV, Dirocco was no longer the operator. They learned that Dirocco was now using a green pickup truck, which was later observed heading in their direction. Upon seeing police, the truck’s driver, later confirmed to be Dirocco, stopped the vehicle, made an abrupt U-turn, and sped off, resulting in an extended car chase that culminated with Dirocco crashing the vehicle into a tree. Dirocco matched the description of the gun wielding bank robber and was subsequently arrested.
The charging statute provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Bristol County District Attorney Thomas M. Quinn made the announcement today. The Rhode Island State Police and Burrillville, R.I., Cranston, R.I., Pawtucket, R.I., and Seekonk, Mass., Police Departments provided valuable assistance. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Region 16 Education Service Center Employee Admits to Felony Child Pornography ChargeRead the Press Release
AMARILLO, Texas — Neal Edmond Brown, 46, of Canyon, Texas, appeared this afternoon before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to a superseding information charging one count of possession of prepubescent child pornography, announced Erin Nealy Cox, United States Attorney for the Northern District of Texas.
Brown faces a maximum penalty of not more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Brown has been in custody since his arrest in October 2017 and is scheduled to be sentenced on March 26, 2018.
According to the plea agreement factual resume filed in the case, the National Center for Missing and Exploited Children (NCMEC) received information that an image depicting child pornography had been uploaded using the Skype program. Law enforcement discovered that the IP address responsible for uploading the image belonged to the Region 16 Education Service Center (ESC) in Amarillo, Texas. With the assistance from Region 16 ESC personnel, agents were able to verify that Brown, the Director of School Finance Operations at Region 16 ESC, was uploading child pornography from his work computer.
On June 21, 2017, a search warrant was executed at Region 16 ESC and agents seized several electronic devices located in Brown’s office. A forensic examination revealed that the electronic devices contained over 900 images of child pornography and over 200 videos of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and Amarillo Police Department are investigating the case. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Pittsburgh Man Sentenced to Prison after Pleading Guilty to Possessing a Stolen GunRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, waived prosecution by Indictment and pleaded guilty to an Information in Pittsburgh, Pennsylvania, on a charge of Possession of a Stolen Firearm, and was sentenced to 42 months imprisonment followed by 3 years supervised release, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Richard Graves, age 35, of Pittsburgh, Pennsylvania.
According to the information provided to the Court, on or about April 15, 2016, Graves knowingly possessed a stolen firearm.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes. Acting U.S. Attorney Song commended the Bureau of Alcohol, Tobacco, and Firearms, the Pittsburgh Bureau of Police, and the Penn Hills Police Department, for conducting the investigation leading to the successful prosecution of Graves.
Orange Landscaper Pleads Guilty to Federal Tax OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS CAPECELATRO, 62, of Orange, waived his right to indictment and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of willful failure to account for and pay over more than $66,000 in employment taxes.
According to court documents and statements made in court, CAPECELATRO has owned and operated an unincorporated landscaping business known as Chestnut Ridge Landscaping (“Chestnut Ridge”) since approximately 1984. From approximately October 2010 through 2013, CAPECELATRO caused Chestnut Ridge to withhold $42,322.64 in payroll taxes from its employees but failed to truthfully account for and pay over that money to the Internal Revenue Service. During that same period, CAPECELATRO failed to pay $24,089.28 in federal employment taxes and $1,347.54 in federal unemployment taxes that Chestnut Ridge owed. Chestnut Ridge also failed to file quarterly employment tax returns (Forms 941) with the IRS.
The total tax loss to the U.S. Treasury from October 2010 through 2013 was $67,759.46.
Judge Shea scheduled sentencing for February 21, 2018, at which time CAPECELATRO faces a maximum term of imprisonment of five years and a fine of up to $10,000. CAPECELATRO made restitution of $67,759.46 to the IRS in May 2017.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
New York Woman Admits Fraud in Investment SchemeRead the Press Release
NEWARK, N.J. – A New York woman today admitted running an investment scheme that defrauded victims of hundreds of thousands of dollars, Acting U.S. Attorney William E. Fitzpatrick announced.
Alisa Adler, 57, of New York, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with two counts of wire fraud.
According to documents filed Information:
From January 2009 through August 2014, Adler took loans and investments from multiple victims and told them that their money would be used for certain specified investments through her company, ASG Real Estate Services Group Inc. To induce potential victim investors to give her money, Adler provided them with promotional materials and other documents, and told them that their money would be repaid within a certain amount of time. Adler did not use the majority of invested funds for the specific real estate investments she had presented to the investors. Instead, she used it to, among other things, repay prior investors and pay her own personal expenses.
Each count of wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the amount of the loss caused by the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Jacob Laufer Esq., New York
New London Man Sentenced to Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TICO GARRETT, 37, of New London, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, an investigation by the FBI Northern Connecticut Safe Streets Task Force, Norwich Police Department, Waterford Police Department and Groton Town Police revealed that in the summer of 2016, Paul Mott, of Groton, conspired with others to obtain and distribute cocaine. Mott regularly took orders for cocaine from individuals, including GARRETT, and then drove to his supplier in the Bronx, New York, to obtain the drug. When he returned to Connecticut, Mott provided the cocaine to GARRETT and others for further distribution. Some of Mott’s narcotics trafficking activity occurred at his restaurant, Caribbean American Kitchen to Go, located on Truman Street in New London.
GARRETT was arrested on August 8, 2016. On May 10, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
Mott also pleaded guilty and, on September 5, 2017, was sentenced to 60 months of imprisonment and was ordered to forfeit a 2013 Toyota 4Runner and approximately $3,494 that was seized from him at the time of his arrest.
Three other individuals were charged and convicted as a result of this investigation.
Judge Meyer ordered GARRETT, who is released on a $100,000 bond, to report to prison on January 5, 2018.
This case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
New Bedford Seafood Manager Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A New Bedford seafood manager pleaded guilty today in federal court in Boston to failing to report $75,000 in earnings on his tax returns.
Orlando Cardoso, 44, of New Bedford, pleaded guilty to two counts of filing a false income tax return. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 8, 2018.
Cardoso swore on his 2012 and 2013 tax returns that the only income he had received was from his employer. However, Cardoso had received over $75,000 in cash and checks from his employer’s supplier and failed to report the income on his tax returns.
The charge of filing a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
Montgomery “Pill Mill” Doctor Pleads Guilty to Drug Distribution, Health Care Fraud, and Money Laundering ChargesRead the Press Release
Montgomery, Ala. – On Tuesday, November 28, 2017, Dr. Gilberto Sanchez, 56, of Cecil, Alabama, pleaded guilty to drug distribution conspiracy, health care fraud, and money laundering charges, announced United States Attorney Louis V. Franklin, Sr. from the Middle District of Alabama.
According to court documents, beginning on an unknown date and continuing until he was arrested on August 1, 2017, Dr. Sanchez operated a “pill mill” through Family Practice, a medical clinic he owned located at 4143 Atlanta Highway in Montgomery, Alabama. A “pill mill” is a medical clinic that is dispensing controlled substances inappropriately, unlawfully, and for non-medical reasons. At Family Practice, Dr. Sanchez conspired with other health care providers working for him to prescribe controlled substances to patients even though they did not actually need the medicines. Among the controlled substances Dr. Sanchez and his colleagues unnecessarily prescribed were oxycodone, hydrocodone, methadone, hydromorphone, amphetamine, and fentanyl.
As for the health care fraud charge, the court documents indicate that Dr. Sanchez and his colleagues required patients of Family Practice to return for monthly physical examinations before the patients could receive prescription refills. Such monthly examinations were not medically necessary, as the patients had no real medical condition that required the prescribing of controlled substances in the first place. Dr. Sanchez and the Family Practice employees would then bill health insurance companies and government health insurance programs (including Medicare and Medicaid) for the cost of these unnecessary monthly examinations.
The money laundering charges stem from Dr. Sanchez’s spending the proceeds of his operation of a pill mill. Court documents describe Dr. Sanchez using those proceeds to purchase at least one vehicle and one personal residence located in Montgomery.
Dr. Sanchez’s sentencing date has not yet been set. At sentencing, he faces a maximum of 20 years in prison on the drug conspiracy count and maximum sentences of 10 years imprisonment on the health care fraud and money laundering counts. There is no parole in the federal system. He also faces substantial monetary penalties, restitution, and forfeiture of assets purchased with the proceeds of his crimes.
“We have seen first-hand in Montgomery the harm that our country’s opioid epidemic causes,” stated United States Attorney Franklin. “Too many lives have been destroyed as a result of the illegitimate prescribing of these pills. Dr. Sanchez, and others like him, have led us to this point and I am proud that he will face the consequences of placing profit over the well-being of his patients and our community.”
“The abuse of prescription drugs is a serious problem in our communities’ said Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton. “All too often, this abuse leads to addiction, shattered lives, or even death. For the health and safety of our citizens, the Drug Enforcement Administration and our federal, state, and local law enforcement partners will continue to target those who illegally distribute these dangerous drugs.”
“Drug diversion is a growing epidemic in our society that is amplified when trusted professionals abandon their ethical code in the name of greed. These unethical practices are damaging the lives of individuals and families throughout this country,” said IRS Criminal Investigation Acting Special Agent in Charge James E. Dorsey. “IRS CI will continue to work closely with our law enforcement partners in an effort to prosecute those illegally dispensing drugs for profit.”
"We depend on doctors to be part of the prescription drug abuse solution—not part of the problem. Dr. Sanchez’s greed-fueled pill mill put the lives of his patients and the integrity of federal health care programs at risk,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General. "Our investigators, working with our law enforcement partners, will continue to uproot such dangerous schemes."
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Internal Revenue Service’s Criminal Investigation Division, and the Department of Health and Human Services – Office of Inspector General. The Montgomery County, Alabama Sheriff’s Office, the Alabama Board of Medical Examiners, the Montgomery, Alabama Police Department, and the Opelika, Alabama Police Department all assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross, R. Rand Neeley, and Kevin P. Davidson are prosecuting the case.
Mission Women Sentenced in Child Abuse CaseRead the Press Release
United States Attorney Randolph J. Seiler announced that two Mission, South Dakota, women charged with child abuse have been sentenced by U.S. District Judge Roberto A. Lange.
On August 16, 2016, Verna Blue Thunder, age 42, and Lorraina Stead, age 26, were indicted for two counts of Child Abuse. Verna Blue Thunder was further charged with one count of Assault Resulting in Serious Bodily Injury to a Child.
Blue Thunder pled guilty in August 2017 to two counts of Child Abuse. She was sentenced on November 27, 2017, to 90 months in prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Stead pled guilty in July 2017 to a Superseding Information charging Simple Assault of a Child and Aiding and Abetting. She was sentenced on September 27, 2017, to time served equal to one year in custody, 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Restitution may also be ordered for both defendants.
The convictions stem from conduct that occurred between October 2014 and June 2016. In October of 2014, two small children were placed in the defendants’ home in Mission. Over the course of the next approximately 21 months, the children were subject to physical abuse, emotional abuse, and starvation at the hands of the defendants. The defendants repeatedly avoided attempts by the South Dakota Department of Social Services to assess the children. In June of 2016, a relative from Spokane, Washington, took physical custody of the children and promptly sought medical attention for them. Both children were severely malnourished, and the younger child had healing fractures to both arms and two ribs.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Mission Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 27, 2017, by U.S. District Judge Roberto A. Lange.
Edward Zane Roubideaux, Jr., age 27, was sentenced to 21 months in prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Roubideaux was indicted by a federal grand jury on July 19, 2017. He pled guilty on October 2, 2017.
Roubideaux was convicted in U.S. District Court of Sexual Abuse of a Minor, in May 2008. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. On June 5, 2017, Roubideaux moved from Sioux Falls to Rosebud, but did not update his registration. On June 23, 2017, he was arrested by the U.S. Marshals Service in Rosebud. Between June 5, 2017, and June 23, 2017, Roubideaux failed to register and update his registration.
This case was investigated by the Sioux Falls Police Department and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Roubideaux was immediately turned over to the custody of the U.S. Marshals Service.
Minnesota Woman Sentenced to 35 Months in Federal Prison for Bank Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
United States Attorney Randolph J. Seiler announced that a Marshall, Minnesota, woman was sentenced to 35 months of imprisonment following her convictions for Conspiracy to Commit Bank Fraud and Aggravated Identity Theft.
Angelica Marie Hatch-Pequin, age 27, was indicted on March 7, 2017, and she pleaded guilty on August 28, 2017. In addition to her prison term, Hatch-Pequin was also ordered to serve three years of supervised release following release from custody, and to pay restitution to a victim and a special assessment.
According to court documents, between September 2016 and November 16, 2016, Hatch-Pequin engaged in a scheme to defraud financial institutions, while using the personal identifying information of other individuals. Hatch-Pequin would use the proceeds of the fraud scheme to purchase methamphetamine for her use and to distribute to others for money.
More specifically, on November 16, 2016, defendants Angelica Marie Hatch-Pequin (“Hatch”) and Jason Maurice Fagin were arrested at the Royal River Casino in Flandreau, South Dakota, for attempting to negotiate counterfeit checks. While trying to negotiate the check, Hatch presented a driver’s license belonging to another individual. Hatch, aided and abetted by Fagin, used the identification of that individual without lawful authority.
Hatch and Fagin would steal mail from mailboxes located in affluent neighbors of Minneapolis, Minnesota. Hatch and Fagin would target mail that appeared to contain bills and checks. Fagin would then use the personal, business, and banking information contained in those mail matters to create fraudulent checks. After Fagin created the fraudulent checks, Hatch would usually cash the counterfeit checks at convenience stores and casinos located throughout the Minnesota, Iowa, and South Dakota region. Hatch and Fagin created and passed fraudulent checks for approximately two months leading up to their arrests in November.
Two types of checks were created: payroll and personal checks. Payroll checks would be drafted in amounts ranging from $450 to $2,000; the check presented to the Royal River Casino was for $1,500. Personal checks were made in amounts from $100 to $800. The effected banks were insured by the FDIC at the time of the offenses.
The investigation is being conducted by the Federal Bureau of Investigation, the Flandreau Police Department, and the Flandreau Sioux Tribe’s Police Department. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Hatch-Pequin was remanded to custody to continue serving her prison sentence. Fagin’s sentencing is pending.
Miami Resident Sentenced to 1 Year for Impersonating a Federal OfficerRead the Press Release
A 46 year old resident of Bay harbor was sentenced yesterday by U.S. District Judge Darrin P. Gayles to serve one year in prison, to be followed by one year of supervised release, for impersonating a U.S. Marine Corps and U.S. Coast Guard officer.
Benjamin Greenberg, Acting United States Attorney for the Southern District of Florida, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and Thomas Robarge, Special Agent in Charge, Coast Guard Investigative Service (CGIS), made the announcement.
George I. Lopez, a/k/a “Ray Lo, Master Lo, and Israel Lo,” was indicted on July 13, 2017, with two counts of impersonation of an officer and employee of the United States, in violation of Title 18, United States Code, Section 912. He pled guilty to both counts on August 22, 2017.
According to the court filings, Lopez falsely represented himself to be a Master Sergeant in the U.S. Marine Corps and a Lieutenant in the U.S. Coast Guard. He befriended a woman as her mixed martial arts instructor. In her pursuit to join the military, Lopez offered her entry into the United States Coast Guard through the fictitious character of Lt. Jenna Lee. Lopez convinced the woman to pose for naked photographs in order for her application to be considered. Lopez had previously been other than honorably discharged from the United States Army in 2003.
Mr. Greenburg commended the investigative efforts of DCIS and CGIS. The case was prosecuted by Assistant U.S. Attorney Greg Schiller.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced for Drug and Immigration OffensesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that SALVADOR ORDONEZ-MALDONADO, age 58, a native of Mexico, was sentenced today after pleading guilty to a two-count Bill of Information for possession with intent to distribute 27 kilograms of marijuana and illegal reentry of a previously removed alien.
U.S. District Court Judge Susie Morgan sentenced ORDONEZ to 51 months of incarceration, followed by three years of supervised release, and a $100 special assessment fee as to each count. Following completion of his sentence, ORDONEZ will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, agents from Homeland Security Investigations received information that packages containing 27 kilograms of marijuana were being sent via FedEx to Abita Springs, Louisiana from Memphis, Tennessee. The packages were originally sent to Memphis from Mexico. An undercover agent made a controlled delivery to the Abita Springs residence on April 29, 2015. The agents then served a search warrant and recovered the marijuana as the packages were being opened by ORDONEZ in the garage. ORDONEZ had been previously deported from the United States on February 8, 2013.
Acting U.S. Attorney Evans praised the work of Homeland Security Investigations, Customs and Border Protection, Louisiana State Police, and the St. Tammany Sheriff’s Office in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Mexican Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
BOISE – Manual Vera-Gonzalez, of Guanajuato, Mexico, was sentenced today to time served by Chief U.S. District Judge B. Lynn Winmill, U.S. Attorney Bart M. Davis announced. Vera-Gonzalez had served over seven months in custody since his arrest in April 2017. Vera-Gonzalez pleaded guilty on August 30, 2017, to failure to register as a sex offender.
According to the plea agreement, Vera-Gonzalez is a native and citizen of Mexico. Vera-Gonzalez had been removed from the United States to Mexico on or about August 15, 2016. He returned to the United States and was discovered in Ada County, Idaho, in April 2017. Vera-Gonzalez was required to register under the Sex Offender Registration and Notification Act (SORNA) by virtue of his 2005 conviction for sexual battery by restraint in Orange County, California. He was previously convicted in 2014 for failure to register as a sex offender in the District of Idaho. Nonetheless, Vera-Gonzalez again knowingly failed to register as a sex offender, as he was required to do under SORNA.
This case was investigated by the U.S. Marshals Service and the Department of Homeland Security Immigration and Customs Enforcement.
Medical Doctor Pleads Guilty to Selling Fentanyl That Resulted in Manhattan Man’s Overdose DeathRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that AVINOAM LUZON pled guilty this morning to selling fentanyl that resulted in the overdose death of Gabriel Tramiel, 32, of Manhattan, on October 22, 2016. LUZON pled guilty earlier today before Chief Magistrate Judge Debra Freeman.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Avinoam Luzon was a trained medical doctor who sold a lethal dose of fentanyl. Even as he was enrolled as a graduate student in public health, Luzon fueled the nation’s most serious health crisis, the opioid abuse epidemic. As he admitted today, Luzon sold fentanyl to Gabriel Tramiel, a 32-year-old New Yorker, and, tragically, it killed him.”
According to the charging and other documents filed in federal court, as well as statements made in the plea proceeding:
Gabriel Tramiel was found dead by his wife in the early morning hours of October 23, 2016. Tramiel was transported to the hospital and was examined by a medical examiner from the New York City Office of the Chief Medical Examiner who determined that a fentanyl overdose was the cause of Tramiel’s death. Text messages recovered from Tramiel’s phone show a conversation with LUZON the evening of October 22, 2016, in which LUZON requested payment from Tramiel for narcotics and the two arranged a meeting to exchange narcotics for payment. LUZON later admitted to providing the lethal dose of fentanyl to Tramiel on October 22, 2016. LUZON also turned over to law enforcement over 160 grams of fentanyl he was storing in his dorm room in Manhattan, while enrolled as a public health student.
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LUZON, 33, of Manhattan, New York, faces a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by a judge. LUZON is scheduled to be sentenced in March 2018, by the Honorable Lewis A. Kaplan, U.S. District Judge.
Mr. Kim praised the outstanding work of the NYPD. He also thanked the New York State Department of Health’s Bureau of Narcotics Enforcement for their assistance with this investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Karin Portlock and Matthew Podolsky are in charge of the case.
Mason County felon pleads guilty to federal gun chargeRead the Press Release
HUNTINGTON, W.Va. – A Mason County man pleaded guilty today to a federal gun crime, announced United States Attorney Carol Casto. Conrad D. Berkley, II, 37, of Gallipolis Ferry, entered his guilty plea to being a felon in possession of a firearm.
On April 3, 2017, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives went to Drew’s Jewelry, Gun and Pawn in Gallipolis Ferry to determine if anyone had recently sold an AK-47 rifle to the store. Agents discovered that Berkley had sold a Century Arms, model RAS 47 to the store on March 27, 2017. Berkley was prohibited from possessing any firearm under federal law because of a 2007 conviction in Cabell County Circuit Court for unlawful wounding.
Berkley faces up to 10 years in federal prison when he is sentenced on February 26, 2018.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is responsible for the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Martinsburg man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia man has admitted to distributing cocaine, United States Attorney Bill Powell announced.
Fenel Baptiste, age 32, pled guilty to one count of “Possession With the Intent to Distribute a Controlled Substance.” Baptiste admitted to selling crack cocaine in Berkeley County in August 2015.
Baptiste 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 & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U. S. Magistrate Judge Robert W. Trumble presided.
Leader of MS-13 East Coast Program Pleads GuiltyRead the Press Release
BOSTON – The leader of the MS-13 East Coast Program pleaded guilty yesterday in federal court in Boston to racketeering conspiracy.
Jose Adan Martinez Castro, a/k/a “Chucky,” 28, a Salvadoran national formerly residing in Richmond, Va., pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Feb. 26, 2018.
After a three-year investigation, Castro was one of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts.
MS-13 leaders incarcerated in El Salvador oversee individual branches, or “cliques,” that are grouped into “programs” throughout the United States. During the investigation, Castro was identified as the leader of MS-13’s East Coast Program. On Dec. 13, 2015, Castro was recorded as he ran a meeting of East Coast Program clique leaders in Richmond, Va. During the meeting, Castro and others discussed sending money to El Salvador to support MS-13, the need to work together to increase the gang’s strength and control, and the need to violently retaliate against anyone who provided information against the gang.
Castro is the 25th defendant to be convicted.
Castro faces up to 20 years in prison, three years of supervised release, and will be subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Herndon (VA) Police Chief Maggie A. DeBoard made the announcement.
Keshena Man Indicted for Attempted Child Exploitation and Enticement on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 21, 2017, a federal grand jury returned a three-count indictment against Basil L. O’Kimosh (age: 39), of Keshena, Wisconsin. The indictment alleges that O’Kimosh used an internet chat app to attempt to exploit a minor female on the Menominee Indian Reservation.
Count One charges O’Kimosh with Attempted Child Exploitation in violation of Title 18 United States Code § 2251(a). On this count O’Kimosh faces a mandatory minimum sentence of 15 years, and a maximum sentence of life in prison; up to a $250,000 fine; and between 5 years and a lifetime of supervised release. The charge also carries a $5000 special assessment.
Count Two charges O’Kimosh with Attempted Child Enticement in violation of Title 18 United States Code § 2422(b). On this count O’Kimosh faces a mandatory minimum sentence of 10 years in prison, and a maximum sentence of life in prison; up to a $250,000 fine; and between 5 years and a lifetime of supervised release. The charge also carries a $5000 special assessment.
According to the indictment, on November 1, 2017, O’Kimosh attempted to obtain images of a minor female engaged in lascivious behavior. Additionally, between January 1, 2017 and November 2, 2017, O’Kimosh used his phone to attempt to persuade the minor female to engage in sexual activity at a location within the Menominee Indian Reservation.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation, with assistance from the Wisconsin Department of Justice - Division of Criminal Investigation (NADGI and ICAC Task Forces). The case is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Justice Department Sues to Stop Miami-Dade County Tax Return Preparers Allegedly Engaged in Fabricating Deductions and CreditsRead the Press Release
The United States has asked a federal court in Miami, Florida, to permanently bar Simon Accounting & Tax Services LLC, and three of its preparers, Vilbrun Simon, Saintanise Agenord, and Wilcienne Pierre, from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Simon, his wife, Agenord, and his niece, Pierre, prepare returns that seek fraudulent tax refunds by fabricating business income, claiming false itemized deductions, and claiming various tax credits to which their customers are not entitled.
The government complaint alleges that Simon, Agenord, and Pierre prepare returns that fabricate business income to increase the customers’ Earned Income Tax Credit. The complaint also alleges that Simon and the others inflate education expenses on their customers’ returns to claim education credits that their customers are not entitled to receive. Additionally, the complaint alleges that Simon, Agenord, and Pierre fabricate deductions to reduce the taxable income their customers report and increase their customers’ refunds. Altogether, the government complaint alleges that Simon’s and the others’ activities may have caused the United States to lose millions of dollars in understated taxes and fraudulent refunds.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Sues Springfield, Illinois, for Discrimination Against Persons with DisabilitiesRead the Press Release
The Justice Department today filed a lawsuit alleging that the City of Springfield, Illinois, has discriminated against persons with disabilities in violation of the Fair Housing Act. The lawsuit, filed in the U.S. District Court for the Central District of Illinois, alleges that Springfield’s zoning code treats small group homes for persons with disabilities less favorably than similarly-situated housing for people without disabilities. The department’s complaint further alleges that, even if the zoning code were valid, Springfield violated the Fair Housing Act by failing to grant an exception that would allow a three-person group home for individuals with disabilities to continue operating in a residential neighborhood.
“The Fair Housing Act prohibits cities from applying their zoning laws in a manner that discriminates against persons with disabilities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We will continue to vigorously enforce the Fair Housing Act’s prohibition on such discrimination.”
This case arose when the City of Springfield attempted to close a home with three residents with intellectual and physical disabilities because the home violated a 600-foot spacing requirement that applies to community residences for persons with disabilities. That spacing requirement does not apply to homes for up to five unrelated persons without disabilities. The small group home allowed two of the residents to move out of large institutions and live in an integrated community setting.
The lawsuit seeks a court order prohibiting Springfield from enforcing the spacing requirement against this home or similarly-situated homes for persons with disabilities elsewhere in the city. The lawsuit also seeks monetary damages to compensate victims, as well as payment of a civil penalty. A related case challenging Springfield’s spacing requirement was filed by the home’s service provider and one resident. The court in that case, A.D. ex rel. Valencia v. City of Springfield, issued a preliminary injunction against Springfield on Aug. 2, 2017. That ruling is now on appeal to the U.S. Court of Appeals for the Seventh Circuit.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex, and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Jury Delivers Verdicts in Bank of Oswego Fraud TrialRead the Press Release
PORTLAND, Ore. – A federal jury today delivered its verdicts against two executives of the Bank of Oswego formerly headquartered in Lake Oswego, Oregon. Dan Heine and Diana Yates were charged with conspiracy to commit bank fraud and falsifying bank entries, reports, and transactions in a five-year scheme beginning in September 2009.
Jurors found both Heine and Yates guilty of one count of conspiracy to commit bank fraud and twelve counts of falsifying bank entries, reports, and transactions. Each charge carries a maximum sentence of thirty years in federal prison.
“As the jury found today, Dan Heine and Diana Yates violated the law by deceiving the Bank of Oswego’s board of directors, customers, and federal regulators in an attempt to conceal the organization’s true financial condition,” said Billy J. Williams, United States Attorney for the District of Oregon. “Together with our partners at the FBI and the Federal Deposit Insurance Corporation, we remain steadfast in our commitment to protecting the integrity of our financial system from fraudulent and corrupt banking practices.”
"Banks and the people who run them should serve as the cornerstone of the American economy," said Renn Cannon, Special Agent in Charge of the FBI in Oregon. "When bankers conspire, lie, and hide wrongdoing to benefit themselves, they undercut the integrity of the financial system on which we all depend."
Dan Heine, a co-founder of the bank, was president, Chief Executive Officer (CEO) and member of the board of directors from September 2004 through September 2014. Diana Yates, also a co-founder, was executive vice president, Chief Financial Officer (CFO), and secretary of the board of directors from 2004 through March 2012. During the conspiracy Heine and Yates concealed the true financial condition of the bank to regulators and the board of directors by falsely reporting that the bank had title to a property in a straw buyer transaction, falsely reporting that delinquent loans were paid, and falsely reporting the sale of bank owned property.
Sentencing for both defendants is scheduled for March 5, 2018 in Portland. The case was investigated by the FBI and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) and prosecuted by Quinn Harrington and Michelle Kerin, Assistant United States Attorneys for the District of Oregon.
Joshua J.C. Ulloa Sentenced for Conspiracy to Possess with Intent to Distribute IceRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that defendant JOSHUA J.C. ULLOA, age 40, from Barrigada, Guam, was sentenced in the District Court of Guam to a 110-month term of imprisonment for Conspiracy to Possess with Intent to Distribute Methamphetamine. The Court also ordered an additional 24 months imprisonment for violating terms of supervised release in a separate federal case. The 24-month sentence will be served consecutive to the 110 months for a total of 11 years in prison. The Court also ordered ULLOA to serve three years of supervised release following his terms of imprisonment. Additionally, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On March 13, 2017, defendant ULLOA was charged with Conspiracy to Possess with Intent to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1). During July 2016, ULLOA received a mail package that had contained approximately 1,300 grams of methamphetamine. ULLOA was confronted by federal agents at his residence and gave the agents the package. A search of the residence revealed other evidence, including $30,920 in U.S. currency. The money was seized as proceeds of drug trafficking activity and administratively forfeited to the United States. ULLOA engaged in this conduct while serving a term of supervised release for a prior federal conviction in Guam. Further investigation revealed that ULLOA conspired with others to distribute drugs. His prosecution was also linked to other co-conspirators operating out of the Guam Department of Corrections prison facility.
The investigation was conducted by the U.S. Postal Service Inspector and the Drug Enforcement Administration. The case was prosecuted by Frederick A. Black and Rosetta San Nicolas, Assistant U.S. Attorneys.
Jefferson County, Kentucky, Resident Sentenced to Ten Years in Prison for Attempted Online Enticement of A MinorRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the ten-year sentence followed by a 20-year term of Supervised Release, of a Jefferson County, Kentucky resident, by Senior Judge Charles R. Simpson, III, in United States District Court, for the attempted online enticement of a minor. There is no parole in the federal system.
According to the factual basis of the plea agreement, Carl Dean Sewell, 25, from Louisville, admitted to using a cell phone to communicate with a person, whom Sewell believed to be a 15-year-old girl, for the purposes of engaging in sexual activity. While authorized by the Attorney General to conduct undercover (UC) operations within the Commonwealth, on December 2, 2016, a law enforcement official created an ad on the Louisville Craigslist website under the personals tab titled “nothing serious”. The ad did not request any sexual contact from prospective responders. A person later identified as Sewell contacted the UC that same day through the Craigslist Email server system. The UC identified himself to Sewell as a 15-year-old female.
During the online communications, email and then texting, Sewell, who used the name “Dean” brought up the subject of sexual activity with the person he believed to be a 15-year-old girl. Specifically, he asked the UC to engage in sexual activity for the purpose of creating a video. The UC agreed to meet Sewell on December 5, 2016, at an address on Taylorsville Road in Eastern Jefferson County, Kentucky. Law enforcement officials watched Sewell drive to the agreed upon location where he was arrested. A search warrant on the phone confirmed that it was the device Sewell had used to communicate with the UC.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Attorney General’s Department of Criminal Investigations Cyber Crime Unit conducted the investigation with assistance from Louisville Metro Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab resources.
Indictment Charges 10 Individuals with Trafficking Heroin in Southern New EnglandRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a grand jury in Hartford returned a 14-count indictment today charging the following 10 individuals with heroin trafficking offenses:
MICHAEL LUCIANO, 32, of New London
EDDY PENA, 29, of Montville
MARIO RECINOS, 26, of Central Falls, R.I.
ELIZABETH MORALES, 47, a citizen of Guatamala residing in Johnston, R.I.
MAYCOL CAMPOS, 36, of Attleboro, Mass.
SELENA MENA, 28, of New London
ROBERTO ROMAN, a.k.a. “Indio,” 47, of New London
WILLIAM GONZALEZ-NIEVES, 26, of Norwich
JOSE QUINONES, 56, of Providence, R.I.
HECTOR QUINONES, 38, of Freetown, Mass.The indictment stems from an investigation headed by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force East and New London Police Department targeting a southeastern Connecticut heroin trafficking ring. The investigation began after several heroin overdoses in southeastern Connecticut, including two overdose deaths involving a heroin and fentanyl mix that occurred in January 2016.
As alleged in court documents and statements made in court, between January and June 2017, investigators made controlled purchases of heroin from Luciano and Gonzalez-Nieves. Subsequent court-authorized wiretaps revealed that Recinos and Morales, with the assistance of Campos, regularly supplied heroin on credit to Luciano, who then distributed the drug to a large customer base in southeastern Connecticut. Pena also supplied Luciano with heroin. Mena and Roman assisted Luciano by packaging heroin for distribution, making deliveries and collecting drug proceeds that Luciano then delivered to Recinos and Morales.
It is further alleged that Recinos supplied Hector Quinones and Morales supplied Jose Quinones with distribution quantities of heroin.
All of the defendants, with the exception of Hector Quinones, who has been incarcerated in Rhode Island for an unrelated state offense, were arrested on November 14. On that date, investigators executed 12 federal search warrants and seized more than three kilograms of heroin, including significant quantities from Luciano, Recinos, Morales, Jose Quinones, Roman and Campos. Investigators also seized approximately 100 grams of fentanyl from Campos, more than $14,000 in cash from Pena, and more than $13,000 in cash from Morales.
All of the defendants are charged with conspiracy to distribute and to possess with intent to distribute heroin. If convicted of this charge, based on their conduct and the quantity of heroin involved in the conspiracy, Luciano, Recinos, Morales, Campos, Roman and Mena face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Pena, Gonzalez-Nieves and Jose Quinones face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and Hector Quinones faces a maximum term of imprisonment of 20 years.
Luciano, Pena, Mena, Roman and Gonzalez-Nieves are also charged with one or more counts of possession with intent to distribute, and/or distribution of, heroin.
All of the defendants are detained.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, Connecticut State Police Statewide Narcotics Task Force East and the New London, Norwich, Waterford, Attleboro (Mass.) and Freetown (Mass.) Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Jocelyn Courtney Kaoutzanis.
Indiana Man Sentenced to Seven Years for Possession of Child PornographyRead the Press Release
BOISE – Mark Eugene Timperley, 21, of Indianapolis, Indiana, was sentenced yesterday in United States District Court to 84 months in prison followed by five years of supervised release for possession of child pornography, U.S. Attorney Bart M. Davis announced. Chief U.S. District Judge B. Lynn Winmill also ordered Timperley to forfeit the cellular phone used in the commission of the charged offense. As a result of his conviction, Timperley will be required to register as a sex offender.
According to the plea agreement, in February 2017, a school resource officer with the Nampa Police Department (NPD) received information that a 14-year-old Nampa student was in an internet relationship with Timperley, and that Timperley intended to travel to Idaho to live with the student. NPD officers viewed the victim’s cell phone, and observed text messages between Timperley and the victim in which Timperley requested and received images of the victim engaged in sexually explicit conduct.
Three days later, NPD detectives encountered Timperley after he exited a Greyhound bus in Boise. Timperley admitted that he was in an online relationship with the victim, that he knew the victim was 14 years old, and that he requested and received sexually explicit images from the victim on his cell phone. NPD detectives seized Timperley’s cell phone, conducted a forensic examination of its contents, and found approximately 46 explicit images of the victim.
“Law enforcement agencies in Idaho are committed to working cooperatively to prosecute those who would seek to sexually exploit children,” said Davis. “I commend the work of law enforcement and prosecutors in this case who acted swiftly and aggressively to protect this child victim from further harm. Mr. Timperley is being appropriately punished for his criminal conduct.”
“Predators who view pornographic images of children fuel the disturbing actions of like-minded criminals who create the illegal content. Both rob the innocence of their victims and leave permanent scars that can never be entirely healed,” said Brad Bench special agent in charge for Homeland Security Investigations (HSI) Seattle. “This case should send a clear message to those trolling the Internet to victimize children – you will be caught and pay with your freedom for such crimes. HSI will continue to work closely with our law enforcement partners to investigate these predators and ensure that they feel the full weight of the law.”
The case was investigated by the Nampa Police Department, Homeland Security Investigations, and the Canyon County Prosecutor’s Office, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Hong Mei Xu Sentenced for Operating an Unlicensed Money Transmitting BusinessRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Hong Mei Xu was sentenced in the District Court of the Northern Mariana Islands to 12 months and one day in prison for operating an unlicensed money transmitting business, in violation of 18 U.S.C. § 1960(b)(1)(B). The Defendant was indicted by a federal grand jury on August 5, 2016, and pled guilty on December 9, 2016.
Ms. Xu managed an unlicensed money transmitting business on the island of Tinian. The business operated under the pretense of being a jewelry store. Customers would enter the store and purportedly buy jewelry with their UnionPay International credit card. In reality, the customers would not receive any merchandise, only a receipt, which they would redeem for cash, minus Xu’s 5% commission. Customers then used the cash to gamble at the Tinian Dynasty Hotel and Casino. The purchase transactions were transmitted to UnionPay International Bank, allowing the customers to avoid China’s strict capital flight restrictions. During the federal investigation, agents executed a search warrant at the store in an effort to obtain financial transaction records. Agents discovered merchant card transaction slips totaling $501,800.11 for the period of November 22, 2014, through August 3, 2015. Ms. Xu later disclosed to agents that the business was not licensed as a money transmitting business and that she would run customers’ credit cards in exchange for U.S. currency.
Acting U.S. Attorney Anderson stated, “federal law requires certain money services businesses (MSBs) to register with the Financial Crimes Enforcement Network (FinCEN). Registration enables the government to monitor and enforce compliance with financial regulations. These regulations are important to deterring money laundering and terrorist financing, within our homeland and abroad. Our office will continue to pursue criminal prosecutions and civil monetary penalties against those who fail to register as MSBs and choose to operate in the shadows of our financial system. Additional guidance can be found at www.fincen.gov.”
Special Agents from the Internal Revenue Service conducted the investigation. Assistant United States Attorneys Russell Lorfing and James Benedetto prosecuted the case.
Greensburg, Kentucky, Attorney Charged with Embezzling from Clients to Pay Gambling Losses Exceeding $1.6 MillionRead the Press Release
BOWLING GREEN, Ky. – A Greensburg, Kentucky, attorney was charged with multiple counts of wire fraud as part of a scheme to obtain money from clients of his legal practice, by means of misappropriating funds, in order to pay personal expenses including gambling losses announced United States Attorney Russell M. Coleman.
Danny P. Butler, 71, of Campbellsville, was charged by federal grand jury indictment on November 15, 2017 and made a first appearance in federal court today. Butler has state felony charges pending in Larue County, Kentucky. He is currently in federal custody.
According to the indictment, Butler was an attorney licensed with the Kentucky Bar Assoccation who was authorized to practice law in the Commonwealth of Kentucky. He operated a legal practice in Greensburg, located in Green County, Kentucky, and provided clients with a broad range of legal services including probate, general civil, and government benefits.
Butler maintained seven bank accounts which he used for both personal and business purposes. From about August of 2009 through October of 2016, Butler used the bank accounts to routinely commingle client funds, and often to misappropriate funds from one client to distribute funds to other, unrelated clients. He also used client funds from the bank accounts to make cash withdrawals and pay personal expenses. In addition, he transferred client funds from business bank accounts to his personal accounts.
From 2009, through 2015, Butler incurred personal gambling losses, totaling $1,648,613 that he paid for, in large part, by the misappropriation of funds from eleven clients. .
If convicted at trial, Butler could be sentenced to no more than 20 years in prison, fined $250,000, and be required to serve a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Bryan Calhoun and H. Joseph Pinto, III and is being investigated by the FBI and Kentucky State Police.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
butler_danny_charged.pdf
Greene County Woman Sentenced to 60 Months for Stealing $3.1 Million from Her EmployerRead the Press Release
ALBANY, NEW YORK – Diane Backis, age 51, of Athens, New York, was sentenced today to 60 months in prison for stealing $3.1 million from her employer Cargill, Inc. (“Cargill”) and causing over $25 million in additional losses.
The announcement was made by Acting United States Attorney Grant C. Jaquith; Special Agent in Charge Vadim D. Thomas of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Special Agent in Charge James D. Robnett of Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
United States District Judge Mae A. D’Agostino described the scheme as “insidious,” and Backis’s behavior as both “greedy” and “piggish.” Judge D’Agostino imposed a 2-year term of supervised release, to begin after Backis is released from prison. She also ordered Backis to pay $3.5 million in restitution to Cargill, an agricultural services conglomerate based in Minnetonka, Minnesota.
On November 28, 2016, Backis pled guilty to charges of mail fraud and filing a false income tax return. Backis was responsible for accounting functions for Cargill’s grain operations in Albany, including creating customer contracts, generating and mailing invoices, and receiving and processing customer payments. As part of her plea, Backis admitted that she defrauded Cargill while working in the company’s Port of Albany facility, which receives, stores, and sells grain products.
Acting United States Attorney Grant C. Jaquith stated: “Diane Backis was a longtime Cargill employee who was trusted to manage valuable grain commodities. She repeatedly betrayed that trust by stealing over $3 million over a decade and causing at least $25 million in additional losses in an effort to cover up her theft. Thanks to the teamwork of federal agents who unraveled Backis’s complex and lengthy scheme, she is being held accountable for her crime.”
FBI Special Agent in Charge Vadim D. Thomas stated: “Ms. Backis caused tens of millions in losses and did lasting damage to Cargill. The FBI will continue to work with our law enforcement partners to ensure this kind of malicious behavior is investigated and prosecuted.”
IRS-CI Special Agent in Charge James D. Robnett stated: “Today’s sentencing demonstrates the serious consequences of financial crimes such as this, and the collective focus of IRS Criminal Investigation (CI) and our partners on holding the perpetrators of such fraudulent schemes accountable for their actions.”
As part of her plea, Backis admitted that she stole hundreds of customer payments sent to Cargill totaling at least $3,115,610 and deposited them into her personal bank accounts. Backis also regularly created fraudulent invoices and mailed them to Cargill’s customers. The fraudulent invoices charged Cargill’s customers prices substantially less than what Cargill paid to acquire the grain products, causing Cargill significant financial losses. The fraudulent invoices also directed Cargill’s customers to send payment directly to Backis, thereby bypassing Cargill’s corporate controls.
To hide her activities, Backis made false entries into Cargill’s accounting software to make it appear that customers were paying prices higher than those in her fraudulent invoices, and that customers owed Cargill millions of dollars for delivered grain products. Backis then later reversed those false entries. As a result, Cargill lost at least $25 million.
Backis also admitted that she filed a false 2015 individual income tax return because she declared only $61,208 in total income and omitted over $450,000 in additional taxable income she received by stealing customer payments intended for Cargill in 2015.
This case was investigated by the FBI and IRS-CI, and was prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Grand Rapids Man Pleads Guilty to Student Loan and Tax FraudRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Brandon Kenon Rogers, 31, of Grand Rapids, pled guilty to student loan and tax fraud. Rogers’s wire fraud scheme involved aggravated identity theft and ultimately defrauded the U.S. Department of Education of approximately $150,000. His filing of false tax returns using other people’s information led to the tax fraud conviction.
During his plea hearing before Magistrate Judge Phillip J. Green, Rogers admitted to defrauding the U.S. Department of Education by obtaining the identity information of others and posing as those individuals while applying online for Student Loans and Pell Grants in their names. He also enrolled online in local community colleges, including Grand Rapids Community College and Kalamazoo Valley Community College, using those same identities. Rogers’s aid applications were approved, and as a result, he received loans and grants and used them for his own purposes without actually attending the classes as required. Rogers further admitted he also used the personal identity information he obtained to file bogus tax returns seeking refunds in the name of others. He told the court that he would assist the government to locate and prosecute others engaged in the same activity.
Wire fraud carries a maximum possible penalty of 20 years in prison plus other penalties. Aggravated Identity Theft carries a mandatory two-year prison term, which must be served after the completion of any other sentence. Income tax fraud carries a maximum possible sentence of five years in prison plus other penalties. Sentencing on the matter will be held before U.S. District Judge Paul Maloney at a date and time to be determined.
U.S. Attorney Birge advised that: "These loan and grant programs are for students who want to better themselves with an education and obviously not for those who would take advantage to simply line their pockets. Rogers didn’t actually attend his classes, but he is learning a lesson in criminal justice that should serve as a warning to others."
The Grand Rapids Community College Department of Public Safety, the U.S. Department of Education, Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service investigated this case. Assistant U.S. Attorney Timothy VerHey is handling the prosecution.
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Gorham Man Pleads Guilty to Possessing Child PornographyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Christopher Shepard, 31, of Gorham, Maine, pled guilty today in U.S. District Court to possessing child pornography.
According to court records, in April of this year, investigators from the Gorham Police Department executed a search warrant at Shepard’s Gorham apartment. Investigators seized his cellular telephone, which was later found to contain several images of a girl under the age of 12 engaged in sexually explicit conduct.
Shepard faces a sentence of up to 20 years in prison and a fine of up to $250,000. He also faces a supervised release term of between five years and life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Gorham Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Gettysburg Man Charged with AssaultsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Gettysburg, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Christopher Arpan, age 51, was indicted on November 14, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 21, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 6 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 24, 2017, Arpan unlawfully assaulted an adult male victim with a wooden cane, causing the victim serious bodily injury.
The charges are merely accusations and Arpan is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Arpan was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for January 23, 2018.
Fort Wayne Man Sentenced to 57 MonthsRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that, Jermaine Underwood, 42, of Fort Wayne, Indiana, was sentenced by District Court Judge Robert L. Miller Jr., for possession with intent to distribute heroin.
Underwood was sentenced to 57 months and 3 years of supervised release.
According to Court filings, on December 9, 2016, Underwood possessed a package that had been sent through the United States Mail that contained approximately 96 grams of heroin.
This case was investigated by the United States Postal Inspection Service, with the assistance of the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, and the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Stacey R. Speith.
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Former Holts Summit Woman Pleads Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Holts Summit, Mo., woman pleaded guilty in federal court today to her role in a conspiracy to distribute methamphetamine.
Jean Elizabeth Sanchez, 52, of Georgia, formerly of Holts Summit, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to participating in a conspiracy to distribute methamphetamine in Callaway County, Mo.
Her husband, Justin Raul Sanchez, 49, of Holts Summit, pleaded guilty to the same charge on Nov. 1, 2016.
Jean and Justin Sanchez were identified by investigators as distributors of large quantities of methamphetamine in the Callaway County area. According to today’s plea agreement, the Sanchezes made three trips to Georgia in March and April 2014 to obtain large quantities of methamphetamine. On each trip, the supplier in Georgia sold them approximately one kilogram of methamphetamine, in a sealed silver coffee can, which they brought back to Holts Summit to distribute.
Jean Sanchez was stopped by state troopers on U.S. Highway 63 in Taos, Mo., on April 21, 2014, while returning from the third trip to Georgia, according to the plea agreement. The trooper located a large silver coffee can that contained 27 small baggies of methamphetamine (totaling .85 kilograms) underneath the third row of seats in the vehicle. The trooper also found a loaded Taurus .380-caliber handgun inside a glove on the front passenger floorboard.
On April 24, 2014, law enforcement officers executed a search warrant at the Sanchezes’ residence. Officers seized two baggies containing methamphetamine, drug paraphernalia, $7,817 and a drug ledger. Justin Sanchez was arrested and admitted to officers that he had been distributing methamphetamine from his residence.
Today’s plea agreement also cites two controlled purchases of methamphetamine by a confidential informant at Sanchez’s residence in April 2014. In each instance, the confidential informant agreed to pay $1,300 for 28 grams of methamphetamine.
Under federal statutes, Jean and Justin Sanchez are each subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 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 defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, LANEG (Lake Area Narcotics Enforcement Group), the Missouri State Highway Patrol, the Jefferson City, Mo., Police Department and the MUSTANG Drug Task Force.
Former Felon Sentenced to Nine Years in Prison for Possession of A Firearm After Ramming into Police VehiclesRead the Press Release
RENO, Nev. – A former felon who illegally possessed a firearm and rammed into three police vehicles to avoid apprehension was sentenced today to 108 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Kyle Howe, 31, of Reno, pleaded guilty to one count of felon in possession of a firearm. In addition to the prison term, U.S. District Judge Larry R. Hicks sentenced him to three years of supervised release.
According to the plea agreement, Howe admitted that, on Nov. 29, 2016, in an attempt to flee apprehension on an outstanding warrant, he rammed into a police vehicle then sped away. Then the next day, Howe rammed two police vehicles as Regional Crime Suppression Unit detectives attempted to arrest him. Law enforcement were able to remove him from his vehicle and arrest him. At the time of his arrest, a Smith & Wesson 9mm semiautomatic pistol, a switchblade, and approximately 4.5 grams of methamphetamine were found in his possession.
The case was investigated by the Regional Crime Suppression Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Megan Rachow prosecuted the case.
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Former Employee of U.S. Government Contractor in Afghanistan Sentenced to Prison for Accepting $250,000 in Kickbacks from SubcontractorRead the Press Release
A former employee of a U.S. government contractor in Afghanistan was sentenced today to 21 months in prison for accepting over $250,000 in illegal kickbacks from an Afghan subcontractor in return for his assistance in obtaining subcontracts on U.S. government contracts.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia, Special Agent in Charge John Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office- Atlanta Resident Agency, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.
Nebraska McAlpine, 57, of Smyrna, Georgia, was sentenced in Atlanta by U.S. District Judge Mark H. Cohen of the Northern District of Georgia. McAlpine previously pleaded guilty to a one-count Information charging him with one count of accepting illegal kickbacks. The defendant’s prison sentence will be followed by three years of supervised release and 100 hours of community service.
As part of his guilty plea, McAlpine admitted that while he was employed as a project manager for an American defense contractor (the Prime Contractor) in Kabul, Afghanistan, he and an Afghan executive agreed that in exchange for illicit kickbacks, McAlpine would ensure that the Prime Contractor awarded lucrative subcontracts to the executive’s companies. McAlpine admitted that he repeatedly told his supervisors that these companies should be awarded “sole source” subcontracts, which allowed them to supply services to the Prime Contractor without having to competitively bid on them. As a result of the kickback scheme, the Prime Contractor paid over $1.6 million to the subcontractor to assist with maintaining the Afghanistan Ministry of the Interior Ultra-High Frequency radio communications system in Kabul, McAlpine admitted.
McAlpine further admitted that the executive agreed to pay kickbacks to McAlpine totaling approximately 15 percent of the value of the subcontracts, and that in 2015 and 2016, he accepted over $250,000 in kickbacks from the executive. McAlpine also admitted that he hid the kickbacks from his employer by storing the cash payments in his personal effects and by physically transporting the cash to the United States. McAlpine then deposited the majority of these funds into his bank accounts at bank branches in the Atlanta metropolitan area, he admitted.
DCIS, SIGAR and Army CID-MPFU investigated the case. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia prosecuted the case.
Former Blue Springs Business Owner Pleads Guilty to Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Blue Springs, Mo., business owner pleaded guilty in federal court today to tax evasion.
Roy Wayne Guier, 64, of Blue Springs, pleaded guilty before U.S. District Judge Stephen R. Bough to one count of tax evasion.
Guier owned and operated Roy and Son Fencing, which sells and installs a variety of fencing products, from 1982 until 2009. In October 2009, Guier transferred the ownership and operation of the company to his daughter, who leased the business and assets from him. Guier’s daughter, at his direction, made the lease payments to a company operating under the name of DEK Resource Management. Guier’s wife was listed as the general manager of DEK and the only signatory on the company’s bank accounts.
From 2010 through 2014, the amount of rental income deposited into DEK’s bank account on Guier’s behalf totaled $382,522. DEK never filed a federal income tax return for each of those years 2010 through 2014. Guier failed to file any tax returns for 2010 through 2014. The additional tax due and owing for 2010 through 2014 is $38,391.
By pleading guilty today, Guier admitted that he willfully attempt to evade and defeat income tax due and owing by him by using the DEK bank account, as a nominee, to receive rental income from the lease of his fencing business to his daughter, and by using the DEK bank account to pay for his personal living expenses.
Under federal statutes, Guier is subject to a sentence of up to five 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 Rudolph R. Rhodes, IV. It was investigated by IRS-Criminal Investigation.