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Wednesday 11 October 2017
Man Sentenced to 6 Years in Prison for Transportation and Possession of Child PornographyRead the Press Release
BINGHAMTON, NEW YORK - Nicholas Feminella, 21, formerly of Danby, New York, was sentenced today to serve 72 months in prison for transporting and possessing child pornography, announced Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent-in-Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Feminella admitted that he transported videos of child pornography by uploading them from his computer to a Drop Box account. On November 3, 2015, investigators searched Feminella’s residence in Danby, New York and recovered thousands of images and hundreds of videos depicting child pornography.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Feminella is released from prison, and ordered him to pay $20,000.00 in restitution to the victims, and a $200 special assessment. As a result of his conviction, Feminella will be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI, the New York State Police-Computer Crime Unit and Investigators from the New York State Police, Troop C.
This case was prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Local Man Set to Appear in Court on Allegations of Trafficking a Minor for SexRead the Press Release
HOUSTON – A federal grand jury has indicted a 31-year-old Missouri City man for allegedly trafficking a 12-year old girl, announced Acting U.S. Attorney Abe Martinez.
Eddie Larue is expected to appear before U.S. Magistrate Judge Dena Hanovice Palermo at 10:00 a.m. today.
According to the indictment returned last week, Larue allegedly recruited a 12-year old girl to engage in commercial sex acts for money along the 1.3 mile stretch of Bissonnet St., commonly referred to as “The Track.” Larue also allegedly used force and threats of force to compel his victim into prostitution and took all of the money she received.
If convicted, Larue faces a mandatory minimum of 15 years and up to life in federal prison as well as a $250,000 fine.
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation. HTRA law enforcement includes members of the FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Houston Police Department, sheriff’s offices in Harris and Montgomery counties, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State, Department of Labor, IRS and the Texas Department of Public Safety.
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sebastian Edwards and Sharad Khandelwal are prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Lexington County Man Sentenced to 66 Months in Federal Prison on Methamphetamine and Gun ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Ryan L. Childs, age 29, of West Columbia, was sentenced in Columbia to 66 months imprisonment followed by a five-year term of supervised release. On June 7, 2017, Childs entered a guilty plea in federal court to one count of Possession with intent to Distribute Methamphetamine and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. United States District Judge Mary Geiger Lewis imposed the sentence.
The evidence presented at the guilty plea hearing and sentencing hearing established that, on October 27, 2016, Lexington County Sheriff’s Department officers executed an outstanding General Sessions Bench Warrant for Mr. Childs at a residence in Lexington County. As officers approached the residence, they saw Childs reach into his waistband, remove an item and place it in the passenger side of a vehicle. Officers located a Glock Model 19, 9mm handgun containing 11 rounds of ammunition and a bag of methamphetamine under the front passenger seat.
The case was investigated by agents with the Lexington County Sheriff’s Department, South Carolina Law Enforcement Division, and the Bureau of Alchohol Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Nancy Wicker of the Columbia office prosecuted the case.
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Leader of “2Fly” Street Gang Sentenced to over 16 Years in Prison on Racketeering and Firearms ChargesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that LAQUAN PARRISH, a/k/a “MadDog,” a/k/a “Quanzaa,” a leader of a violent street gang in the Bronx called the “2Fly YGz” (“2Fly”), was sentenced today to 195 months in prison on racketeering and firearms charges. PARRISH was sentenced by United States District Judge Lewis A. Kaplan.
Acting U.S. Attorney Joon H. Kim said: “Laquan Parrish led the violent 2Fly street gang, and participated in the gang’s violence. In August 2012, Parrish and other 2Fly members opened gunfire at a group of rival gang members sitting in a playground. By good fortune, no one was killed, but a bullet struck one rival gang member in the chest and another in the leg, and a 14-year-old girl was wounded in the crossfire. Today’s sentence holds Parrish accountable for this senseless violence.”
According to the Indictment and other documents filed in the case, as well as statements made during the public proceedings in this case:
PARRISH was a leader of 2Fly, a subset of the “Young Gunnaz,” or “YGz” street gang, which operates throughout New York City. 2Fly is based in the Bronx, within and around the Eastchester Gardens public housing development (“ECG”) and in an area called the “Valley” or the “V,” which is in the vicinity of Gun Hill Road. ECG is a rectangular complex of residential buildings bordered by Burke, Adee, Yates, and Bouck Avenues, in the middle of which is a playground. The gang war between 2Fly and rival street gangs has led to an enormous amount of fatal and non-fatal violence between 2007 and 2016 in the Northern Bronx, including shootings, stabbings, slashings, beatings, and robberies. Members and associates of 2Fly controlled the narcotics trade at ECG, which took place in the open air at the playground and in apartments at ECG. 2Fly primarily sold marijuana and crack cocaine, but also sold powder cocaine and prescription pills, such as oxycodone. 2Fly members and associates stored guns at the playground or in nearby apartments or cars in order to protect the narcotics business and for protection against rival gangs.
In addition to leading 2Fly, PARRISH personally participated in a number of acts of violence with the Gang, including a shootout with rival gang members on August 7, 2012, in a public park in the Bronx. Three victims were shot, including a 14-year-old girl caught in the crossfire.
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PARRISH, 27, of the Bronx, New York, was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. On April 27, 2016, the Indictment captioned United States v. Laquan Parrish et al., 16 Cr. 212 (LAK) was unsealed, charging 57 members and associates of 2Fly with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and/or firearms charges. To date, 54 of these defendants have pled guilty.
Mr. Kim praised the outstanding work of NYPD’s Bronx Gang Squad, HSI, DEA, and ATF. He also thanked the Bronx County District Attorney’s Office, the Department of Investigation, NYCHA Inspector General’s Office, and the New York State Department of Parole for their ongoing support in this investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Skinner are in charge of the prosecution.
Laveen Man Sentenced to 87 Months for Illegally Possessing Firearm on ReservationRead the Press Release
PHOENIX – Yesterday, Anthony James Kyyitan, 38, of Laveen, Ariz., was sentenced by U.S. District Judge David G. Campbell to 45 months in prison for recklessly handling a firearm on the Gila River Indian Community. Kyyitan had previously pleaded guilty to disorderly conduct.
In imposing the sentence, Judge Campbell noted that Kyyitan was a prohibited possessor who had improperly possessed firearms on two occasions while living on the reservation. Kyyitan is an enrolled member of the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine D. Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00161-PHX-DGC
RELEASE NUMBER: 2017-097_Kyyitan
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Laredo Resident Indicted in Enticement of a Minor ChargeRead the Press Release
LAREDO, Texas – A Laredo resident has been indicted on charges related to the enticement of a minor, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned an indictment today against Ruben Morin, 22, of Laredo. The two-count indictment charges Morin with coercion and enticement of a minor and transfer of obscene materials to a minor.
Between Aug. 30, 2017, to Sept. 15, 2017, Morin allegedly communicated with whom he thought was a 13-year-old girl through an online messaging application and text messages. During these communications, Morin sent several pictures of his genitals, according to th charges. Morin then travelled locally to a location in Laredo for the alleged purpose of engaging in a sexual act with the girl. Upon his arrival, law enforcement took him in to custody.
If convicted of the coercion and enticement charge, Morin faces a mandatory minimum of 10 years and up to life in prison. For the transfer of obscene materials, he faces up to 10 years in prison. Both counts also carry a possible $250,000 fine, upon conviction.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Webb County Sheriff’s Department, Laredo Police Department and the United Independent School District Police.
The case, prosecuted by Assistant U.S. Attorney Christopher dos Santos, 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."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Kerr County Man Sentenced for Sending Threatening Letters to President Obama an U.S. Attorney and a FBI Field OfficeRead the Press Release
SAN ANTONIO, Texas — Gavin Friedman, 21, of Austin, Texas, was sentenced yesterday by U.S. District Judge David A. Ezra to 63 months in federal prison for sending threatening communications to President Obama, and the U.S. Attorney for the Western District of Texas, as well as threats to destroy the FBI field office in Houston. The announcement was made today by U.S Attorney John Parker of the Northern District of Texas.
Friedman pleaded guilty to one count of making a threat against the president, one count of mailing – concerning an explosive and two counts of mailing threatening communications. He has been in custody since the time of his arrest in December 2016.
“Threats such as these have no place in a civilized society and will be vigorously prosecuted,” said U.S. Attorney Parker.
According to plea documents filed in the case, on January 22, 2016, Friedman wrote and mailed a letter which contained a threat to take the life of the President Barack Obama. The letter stated that President Obama would be killed so Friedman could be martyred in the name of Allah.
On September 19, 2016, according to plea documents, Friedman made a threat, by mail, to damage and destroy the Federal Bureau of Investigation Field Office in Houston, Texas and the White House in Washington, D.C., by means of an explosive. Also on September 19, 2016 and again on September 27, 2016, Friedman wrote and mailed two separate letters addressed to the United States Attorney for the Western District of Texas, which contained threats to injure the United States Attorney and stating that he was going to kill, and had hired people to kill, the United States Attorney, and to kidnap and kill his family.
The U.S. Secret Service and the U.S. Marshals Service investigated the case. Assistant U.S. Attorney Mark Penley of the Northern District of Texas prosecuted the case, as the U.S. Attorney’s Office for the Western District of Texas is recused from the matter.
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Justice Department to Award $1 Million Grant to the State of Nevada in Response to the Las Vegas Mass ShootingRead the Press Release
The Department of Justice today announced it will offer a $1 million award to the State of Nevada in order to assist with the immediate costs of responding to the mass shooting in Las Vegas, Nevada. The grant is drawn from emergency response funds within the Bureau of Justice Assistance.
The grant funds announced today recognize the hard work and dedication of law enforcement officers across Las Vegas and the State of Nevada, who worked tirelessly in the wake of the tragic shooting last week. The Justice Department is continuing to work with Las Vegas officials to address law enforcement and public safety costs related to this tragedy.
Justice Department Settles Immigration-Related Retaliation Claim Against Texas CompanyRead the Press Release
The Justice Department announced today that it has reached a settlement with InMotion Software LLC (InMotion), a software developer and recruiter in Texas, resolving the department’s investigation into whether the company violated the Immigration and Nationality Act’s (INA) anti-discrimination provision.
Based on its investigation, the department concluded that InMotion retaliated against a work-authorized job applicant after she protested InMotion’s requirement that she provide a Permanent Resident Card even though she had a valid employment authorization card issued by the U.S. Citizenship and Immigration Services. After the worker complained that InMotion’s request constituted discrimination under the INA, InMotion removed her from its pool of candidates available for job placement. The INA’s anti-discrimination provision prohibits employers from retaliating against or intimidating workers because they have opposed employer conduct that may violate that provision or have participated in the department’s activities to enforce it.
Under the settlement agreement, InMotion will pay the maximum civil penalty for an instance of retaliation, post notices informing workers about their rights under the INA’s anti-discrimination provision, train its staff, and be subject to departmental monitoring and reporting requirements for one year.
“Employees must be able to assert their rights without fear of reprisal,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “Employers should familiarize themselves with the law and ensure that they do not engage in retaliatory conduct against workers who raise concerns about compliance.”
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation, different documentary requirements based on their citizenship/immigration status or national origin, or discrimination based on their citizenship/immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
IRS Cooperator Pleads Guilty to Falsifying Digital Audio Tape in a Federal Investigation for Financial GainRead the Press Release
BOSTON – A Lawrence man who was working as a paid cooperator for the Internal Revenue Service’s Criminal Investigation (IRS-CI) pleaded guilty yesterday in federal court in Boston in connection with falsifying audio recordings in a federal investigation.
Erick Santiago-Then, 36, pleaded guilty to 10 counts of falsifying records in a federal investigation. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 3, 2018.
In February 2014, Santiago-Then was working as a paid cooperator for IRS-CI. As part of his work uncovering evidence against the perpetrators of a stolen identity refund fraud scheme, Santiago-Then was given IRS-CI funds and authorized to set up a controlled meeting for the purpose of purchasing fraudulently-obtained tax refund checks. However, Santiago-Then set up a sham meeting with a cohort during which time he obtained a list of personal identifying information, rather than tax refund checks. Following the controlled meeting, and unbeknownst to IRS-CI, Santiago-Then split the IRS-CI funds with his cohort. Santiago-Then subsequently engineered several recorded phone calls during which his cohort posed as someone else and purportedly gave Santiago-Then the run around concerning the purported mix up regarding the tax refund checks.
The charge of falsifying records in a federal investigation provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Ryan M. DiSantis of Weinreb’s Public Corruption Unit is prosecuting the case.
Harrison County man admits to firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia man has admitted to a firearm charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Ryan Matthew Smith, age 40, pled guilty to one count of “Unlawful Possession of a Firearm.” Smith, having been previously convicted of a felony and a misdemeanor in the Circuit Court in Harrison County, West Virginia, admitted to possessing a .357caliber revolver in Harrison County in September 2016.
Smith faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national charged with a federal immigration crime pleaded guilty and was sentenced yesterday in federal court in Boston.
Juan Chilel-Sandoval, a/k/a Jose Bartolome Chilel Sandoval, 28, pleaded guilty to one count of illegal re-entry of a deported alien before U.S. District Court Judge Rya W. Zobel, who sentenced Chilel-Sandoval to time-served (approximately 15 days). Chilel-Sandoval will be subject to deportation proceedings.
On Aug. 31, 2017, law enforcement in Lynn encountered Chilel-Sandoval and determined him to be unlawfully present in the United States. Chilel-Sandoval had been previously deported on Oct. 22, 2010.
Acting United States Attorney William Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Guatemalan Man Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Celso Diaz Ramirez, 39, of Guatemala, was sentenced today to time served (34 days), for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), Field Office Director Thomas E. Feeley, Buffalo, New York Field Office.
As part of his guilty plea, Diaz Ramirez admitted that he was an alien, a citizen of Guatemala, and that he illegally returned to the United States after he was removed to Guatemala on July 8, 2014.
Diaz Ramirez was previously removed on May 27, 2011, February 1, 2012, April 9, 2012 and May 13, 2013.
On September 7, 2017, Diaz Ramirez was encountered and arrested by ICE officers in Middleburgh, New York.
Following the sentencing, Diaz Ramirez was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.
The case was investigated by United States Immigration and Customs Enforcement, Albany, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Former President of Harris County Medical Society and Affiliated Facilities Settle Allegations of Medicare FraudRead the Press Release
HOUSTON – Dr. Gurunath Thota Reddy, Memorial Hermann Endoscopy and Surgery Center North Houston, United Surgical Partners International and Digestive & Liver Disease Consultants P.A. have entered into an agreement to pay $1,575,000 to settle allegations of Medicare fraud, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge C.J. Porter of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG). The claims resolved by this settlement are only allegations and there has been no determination of liability.
The Medicare claims included in the settlement date from April 1, 2007, through Nov. 30, 2014.
An endoscopy nurse formerly employed by Memorial Hermann Endoscopy and Surgery Center initialed the matter. She alleged that Reddy and other physicians who performed colonoscopies at Memorial Hermann Endoscopy and Surgery Center North Houston failed to meet established medical standards. She claimed Reddy and other physicians performed procedures at the center so quickly that they were essentially worthless. By failing to take the necessary amount of time to closely examine the colon, precancerous lesions could be missed.
She also claimed that, in the interest of saving time, the physicians would not always examine the entire colon and would sometimes spend as little as two minutes on a colonoscopy. She also alleged the surgery center did not follow established guidelines for sanitation, claiming Reddy would not put on a clean gown prior to each procedure in order to save money.
“When Medicare pays for a patient to undergo a medical procedure, Medicare expects the health care provider to follow established medical standards of care and sanitation,” said Martinez. “There is no excuse for shortcutting quality in order to increase revenues.”
“Boosting profits with shortcuts to standard medical procedures is unacceptable and at the expense of patient safety,” said Porter. “Working with our law enforcement partners, we will continue to protect Medicare and Medicaid patients from substandard care.”
The experienced endoscopy nurse who brought the allegations further claimed she was fired the day after she complained to the Regional Vice President of United Surgical Partners about the problems she observed.
The FBI, DHHS-OIG and investigators for the U.S. Attorney’s Office conducted the investigation. Assistant U.S. Attorney Michelle Zingaro handled the litigation on this matter.
Former NYS Deputy Secretary of State Sentenced to Serve Thirty Months in Prison for PerjuryRead the Press Release
ALBANY, NEW YORK – Joseph Felix Strevell, 56, of Castleton, New York, was sentenced today to serve 30 months in prison, to be followed by a three-year term of supervised release, in connection with his guilty plea to five counts of perjury.
The announcement was made by Acting United States Attorney Grant C. Jaquith, New York State Police Superintendent George P. Beach, II, and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Strevell admitted that from 1997 to 1999, he served as a Deputy Secretary of State for the State of New York. He left that position in December 1999 to serve as the head of the state-funded Institute for Entrepreneurship, which he led until July 2001. In 2007, Strevell pled guilty in federal court to defrauding New York State while leading the Institute, including using Institute funds to give himself a $95,000.00 lump-sum raise without the approval of the Institute’s Board of Directors. He also admitted to improperly using Institute funds to pay for his personal expenses and those of his family.
In March 2009, the United States District Court for the Northern District of New York entered a judgment against Strevell for this conviction, requiring him to pay $111,500.00 in restitution to New York State, the victim of his offense. The judgment required Strevell to pay restitution at a minimum rate of $100 per month, or 10 percent of his gross monthly earnings, whichever was greater, and to pay full restitution immediately if at any time he had the resources to do so.
In December 2014, the Civil Division of the U.S. Attorney’s Office for the Northern District of New York deposed Strevell under oath to determine whether he was complying with his restitution obligation. When questioned about how he was able to make a $75,440.00 down payment on a lease with an option to purchase a 138.55-acre horse farm in Rensselaer County in April and May 2013, Strevell falsely testified that his mother and aunt provided most of the funds to make the down payment. In fact, neither Strevell’s mother, nor aunt, contributed any money toward the down payment.
Strevell also lied during that deposition about whether he had paid for his daughter’s wedding in May 2014, falsely testifying that he contributed only “a couple thousand dollars” toward wedding expenses. In fact, Strevell paid for most of the wedding, contributing more than $30,000.00, including $10,435.00 in cash to one vendor directly, and transferring tens of thousands of dollars from his business to his daughter.
This case was investigated by the New York State Police and the FBI, and was prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Michael Barnett.
Former Detroit Deputy Chief of Police and Legal Advisor Charged with Bribery and Bribery ConspiracyRead the Press Release
A former Deputy Chief of Police for the Detroit Police Department was indicted today for bribery and conspiracy to commit bribery, in connection with the corruption of towing permits in Detroit, Acting United States Attorney Daniel L. Lemisch announced.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
Charged was Celia Washington, 57, of Detroit.
According to the indictment, while serving as a Deputy Police Chief and the legal advisor to the Chief of Police, Washington’s responsibilities included overseeing the Detroit Police Department’s permitting, licensing, and use of private towing companies. As a Deputy Police Chief, Washington conspired to commit bribery with the owner of several towing companies to assist the owner with the placement of his various companies on the Detroit Police Department’s towing rotation. Under the city’s towing rotation, private towing companies are called by the police to tow cars that are seized by the police or had been stolen. Washington was aware that the owner of the towing companies was violating the City of Detroit’s rules prohibiting a towing company owner from having more than one company in the rotation for a particular police precinct or district. As part of the conspiracy, Washington accepted at least $3,000 in cash as a bribe from the owner of the towing companies in February 2016. In June 2016, Washington assisted in issuing a police towing rotation that continued to allow the owner to violate the city’s towing rules. During the conspiracy, Washington directed the owner and his associate and relative to communicate with her concerning the towing rotations that he wanted using Washington’s private e-mail account.
The bribery charge carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000. The bribery conspiracy count carries a maximum sentence of 5 years’ imprisonment and a fine of $250,000.
Acting United States Attorney Lemisch said, “Given her role and importance to the operation of the Detroit Police Department, it is critical that the activities of Ms. Washington are free of corruption and bribery. We thank Chief of Police James Craig for his assistance in this investigation.”
"Today's indictment establishes that former Deputy Police Chief Celia Washington betrayed the men and women of the Detroit Police Department and the citizens of Detroit when she prioritized personal gain over policing excellence which will always place neighborhoods and people first", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "The FBI wants the public to know that this conduct is not representative of the Detroit Police Department and we remain grateful for the support of Chief Craig and our law enforcement partners to address corrupt practices wherever those practices exist".
"This is extremely troubling, stated Detroit Police Chief Craig. “It’s certainly a betrayal, not only to the men and women of this police department and my office, but the citizen of this city. We want to acknowledge both the work of the FBI and US Attorney Office in bringing closure to this matter. This was certainly a team effort and we applaud their work. The stain is present and a significant betrayal to this organization."
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.
An indictment is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Former D.C. Schools Employee and Business Owner Accused of Carrying Out Bid-Rigging SchemeRead the Press Release
WASHINGTON – A former employee of the District of Columbia Public Schools and a business owner, her longtime friend, have been indicted on charges stemming from an alleged bid-rigging scheme involving contracts for administrative assistants valued at nearly $300,000.
The indictments were announced today by U.S. Attorney Jessie K. Liu, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Daniel W. Lucas, Inspector General for the District of Columbia.
Amber R. Crowder, 39, of Washington, D.C., the former schools employee, and Shauna Marie Brumfield, 39, of Sacramento, Calif., the business owner, were indicted on Oct. 10, 2017, in the U.S. District Court for the District of Columbia. Both were indicted on five counts of mail fraud, three counts of wire fraud, one count of engaging in a money laundering conspiracy, three counts of money laundering, and one count of first-degree fraud. The indictment also includes a forfeiture allegation seeking all proceeds of the alleged crimes.
Crowder was arrested today in Washington, D.C., and Brumfield was arrested today in Sacramento. Crowder pled not guilty at her first appearance this afternoon in the U.S. District Court for the District of Columbia and was released on personal recognizance pending further court proceedings. Brumfield is expected to make her first appearance later today in the U.S. District Court for the Eastern District of California.
According to the indictment, Crowder held various positions with the Office of Special Education (OSE), a part of the District of Columbia Public Schools. The charges involve the school system’s awarding of two contracts for administrative assistants to a company called A Simple Solution. Brumfield was identified as the firm’s registered agent and her residence, then in Northeast Washington, was listed as its principal place of business. According to the indictment, Crowder and Brumfield were close personal friends since childhood.
In the summer of 2012, according to the indictment, Crowder was tasked with identifying and recommending a company to provide temporary administrative assistants for the Office of Special Education to aid in the scheduling of meetings related to services being provided for special education students in the 2012-2013 school year. The indictment alleges that she took a series of steps to steer two administrative assistant contracts to A Simple Solution, including falsely representing during the selection process that A Simple Solution had staff with educational experience and specialized in providing staff to educational institutions throughout the United States when in fact it had no staff and had never performed any work.
The indictment also alleges that Brumfield used Crowder’s knowledge of the estimated cost of the project to submit a price quote for A Simple Solution. Additionally, the indictment alleges Brumfield used the alias “Marie Matthews” when communicating with the school system on behalf of A Simple Solution, and Crowder referred to “Marie Matthews” as the contact person for A Simple Solution, to conceal the fact that Crowder was recommending the awarding of the contracts to her close personal friend.
According to the indictment, from October 2012 until March 2014, the District of Columbia Public Schools mailed approximately $222,000 in checks to A Simple Solution. From January 2013 until August 2013, the indictment alleges, Brumfield transferred approximately $19,164 from the bank account for A Simple Solution to Crowder’s own bank account.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The FBI’s Washington Field Office and the District of Columbia Office of the Inspector General are investigating the case. The case is being prosecuted by Assistant U.S. Attorney Anthony Saler, with assistance from Assistant U.S. Attorney Diane Lucas and Paralegal Specialists Jessica Mundi, Kristy Penny, Joshua Fein, and Aisha Keys.
Former Congressional Staffer Pleads Guilty to Extensive Fraud and Money Laundering SchemeRead the Press Release
HOUSTON - A former congressional staffer pleaded guilty today for his role in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to pay for personal expenses and to illegally finance a former congressman’s campaigns for public office, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Jason T. Posey, 46, formerly of Houston and currently residing in Mississippi, pleaded guilty to one count of mail fraud, one count of wire fraud and one count of money laundering before Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. Sentencing is set for March 29, 2018.
According to admissions made in connection with Posey’s plea, Posey served as director of special projects for former U.S. Congressman Stephen E. Stockman, 60, of the Houston area, from in or around January 2013 until in or around November 2013. Posey admitted that, at Stockman’s direction, he and another congressional staffer, Thomas Dodd, 38, also of the Houston area, illegally funneled $15,000 of charitable proceeds into Stockman’s campaign bank account and caused the campaign to file reports with the Federal Election Commission (FEC) that falsely stated that the money was a contribution from their parents and from the staffers themselves. According to Posey’s admissions, Stockman also directed Posey to send a letter to a charitable donor that falsely stated the donor’s $350,000 donation had been used to support a charitable endeavor, when the funds were actually used for other purposes to include Stockman’s campaigns for public office.
In connection with his plea, Posey also admitted he and Stockman raised $450,571.65 to support Stockman’s 2014 Senate campaign by falsely representing to a donor that the funds would be used to support a legitimate independent expenditure by an independent advocacy group Posey headed. In fact, according to Posey, Stockman personally directed and supervised the activities of the purportedly independent group, including the printing and mailing of hundreds of thousands of copies of a pro-Stockman publication to Texas voters. Posey also admitted he submitted a false affidavit to the FEC in order to conceal the scheme.
Dodd pleaded guilty on March 20 to conspiracy to commit mail and wire fraud and conspiracy to make illegal conduit contributions and false statements to the FEC.
Stockman’s trial is scheduled to begin on Jan. 29, 2018. The charges and allegations against him are merely accusations. He is presumed innocent until and unless proven guilty.
The FBI and IRS-CI are investigating the case. Assistant U.S. Attorney Melissa Annis is prosecuting the case along with Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Former Congressional Staffer Pleads Guilty to Extensive Fraud and Money Laundering SchemeRead the Press Release
A former congressional staffer pleaded guilty today for his role in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to pay for personal expenses and to illegally finance a former congressman’s campaigns for public office, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Abe Martinez of the Southern District of Texas.
Jason T. Posey, 46, formerly of Houston, and currently residing in Mississippi, pleaded guilty to one count of mail fraud, one count of wire fraud and one count of money laundering before Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. Sentencing is set for March 29, 2018.
According to admissions made in connection with Posey’s plea, Posey served as director of special projects and treasurer of the congressional campaign committee for former U.S. Congressman Stephen E. Stockman, 60, of the Houston, Texas area, from in or around January 2013 until in or around November 2013. Posey admitted that, at Stockman’s direction, he and another congressional staffer, Thomas Dodd, 38, of the Houston, Texas area, illegally funneled $15,000 of charitable proceeds into Stockman’s campaign bank account and caused the campaign to file reports with the Federal Election Commission (FEC) that falsely stated that the money was a contribution from their parents and from the staffers themselves. According to Posey’s admissions, Stockman also directed Posey to send a letter to a charitable donor that falsely stated that the donor’s $350,000 donation had been used to support a charitable endeavor, when in fact the funds were actually used for other purposes, including Stockman’s campaigns for public office.
In connection with his plea, Posey also admitted that he and Stockman raised $450,571.65 to support Stockman’s 2014 Senate campaign by falsely representing to a donor that the funds would be used to support a legitimate independent expenditure by an independent advocacy group Posey created. In fact, Posey admitted that Stockman personally directed and supervised the activities of the purportedly independent group, including the printing and mailing of hundreds of thousands of copies of a pro-Stockman publication to Texas voters. Posey also admitted that he submitted a false affidavit to the FEC in order to conceal the scheme.
Dodd pleaded guilty on March 20 to conspiracy to commit mail and wire fraud and conspiracy to make illegal conduit contributions and false statements to the FEC. Stockman’s trial is scheduled to begin on Jan. 29, 2018. The charges and allegations in this case are merely accusations. Stockman is presumed innocent until proven guilty.
The FBI and IRS-CI are investigating the case. Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas are prosecuting the case.
Florida Businessman Pleads Guilty to Foreign Bribery Charges in Connection with Venezuela Bribery SchemeRead the Press Release
A partial owner of several Florida-based energy companies pleaded guilty today to foreign bribery charges for his role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston office made the announcement.
Fernando Ardila Rueda (Ardila), 49, of Miami, pleaded guilty in federal court in Houston, to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. U.S. District Judge Gray H. Miller of the Southern District of Texas accepted the guilty plea. Sentencing is scheduled for Feb. 8, 2018.
According to admissions made in connection with his plea, Ardila conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. The bribes were paid to ensure that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels and in order to obtain or retain business with PDVSA. From 2008 through 2014, while he was sales director, manager and partial owner of several of Shiera’s companies, Ardila provided entertainment and offered bribes to PDVSA officials based on a percentage of the value of contracts the officials helped to award to Shiera’s companies.
Rincon, Shiera and two other former employees of Shiera’s companies have also pleaded guilty in the case. Including Ardila, the Justice Department has announced a total of 10 individuals have pleaded guilty and are pending sentencing as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
ICE-HSI is conducting the ongoing investigation with assistance from IRS-Criminal Investigation. Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. AUSA Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Florida Businessman Pleads Guilty in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON – A partial owner of several Florida-based energy companies pleaded guilty today to foreign bribery charges for his role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston office made the announcement.
Fernando Ardila Rueda (Ardila), 49, of Miami, Florida, pleaded guilty in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. U.S. District Judge Gray H. Miller accepted the guilty plea. Sentencing is scheduled for Feb. 8, 2018.
According to admissions made in connection with his plea, Ardila conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. The bribes were paid to ensure that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels and in order to obtain or retain business with PDVSA. From 2008 through 2014, while he was sales director, manager and partial owner of several of Shiera’s companies, Ardila provided entertainment and offered bribes to PDVSA officials based on a percentage of the value of contracts the officials helped to award to Shiera’s companies.
Including Ardila, the Justice Department has announced a total of 10 individuals have pleaded guilty and are pending sentencing as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
ICE-HSI is conducting the ongoing investigation with assistance from IRS - Criminal Investigation. Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case along with Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Federal Jury Convicts Titusville Man in Stolen Identity Refund Fraud SchemeRead the Press Release
Orlando, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Trayone Lefferio Bell guilty of one count of fraudulent possession of access devices (credit card), two counts of theft of government money, and three counts of aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for each of the first three counts, followed by two years in federal prison for the aggravated identity theft counts. His sentencing hearing has been set for January 4, 2018. Bell was indicted on December 21, 2016.
According to evidence presented at trial, Bell used stolen names, dates of birth, and Social Security numbers to file false 2011 federal tax returns. The fraudulent returns requested that the refunds be issued via prepaid debit cards in the victims’ names. Bell obtained the cards and used them in a series of large cash withdrawals and purchases.
This case was investigated by the St. Cloud Internal Revenue Service-Secret Service Financial Crimes Task Force, which includes representatives from the Internal Revenue Service - Criminal Investigation, the U.S. Secret Service, the St. Cloud Police Department, the Osceola County Sheriff’s Office, the Brevard County Sheriff’s Office, the Palm Bay Police Department, the Casselberry Police Department, the Kissimmee Police Department, the Winter Park Police Department, and the Maitland Police Department. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.
El Departamento de Justicia Resuelve Una Denuncia de Represalias Relacionada con la Inmigración contra Una Empresa de TejasRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con InMotion Software LLC (InMotion), una compañía que se dedica al reclutamiento y desarrollo de software en Tejas, lo que resuelve la investigación iniciada por el Departamento con el fin de determinar si tal compañía había vulnerado la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
Con base en su investigación, el Departamento concluyó que InMotion tomó represalias contra un solicitante de empleo, autorizada a trabajar en los EEUU, después de que protestara contra el requisito de InMotion que presentara una tarjeta de residencia permanente aunque ella disponía de una tarjeta de autorización para trabajar válida, emitida por los Servicios de Ciudadanía e Inmigración de los EE. UU. Tras quejarse de que el requisito de InMotion constituya discriminación conforme a la INA, InMotion la eliminó de su lista de posibles candidatos para empleo. La disposición antidiscriminatoria de la INA prohíbe que los empleadores intimiden o tomen represalias contra los trabajadores porque estos se opongan a una conducta del empleador que podría representar una vulneración de la disposición o porque participen en las actividades del Departamento para hacer cumplir la ley.
Conforme al acuerdo, InMotion pagará la sanción civil máxima por haber tomado represalias. Asimismo, publicará avisos para informar a sus trabajadores acerca de sus derechos al amparo de la disposición antidiscriminatoria de la INA, capacitará a su personal y se someterá a la supervisión y los requisitos de declaración del Departamento durante un año.
«Es de primordial importancia que los empleados puedan hacer valer sus derechos sin temer represalias», declaró el Fiscal General Auxiliar en funciones, John M. Gore, de la División de Derechos Civiles. «Los empleadores deben familiarizarse con la ley y asegurar que no tomen represalias contra aquellos trabajadores que vocalicen sus preocupaciones acerca del cumplimiento».
La Sección para los Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Eight Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury returned a second superseding indictment on September 27, 2017 and it was unsealed today. The second superseding indictment charges the following defendants in connection with a conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13:
Carlos Roberto Tejada Cruz, a/k/a “Krusty,” age 20, of Beltsville, Maryland;
Kevin Alexis Hernandez-Guevara, a/k/a “Stop,” age 20, of Landover Hills, Maryland;
Rolando Aristides Juarez-Vasquez, a/k/a “Virus,” a/k/a “Daffy,” age 22, of Hyattsville, Maryland;
Jeffry Rodriguez, a/k/a “Hyper,” age 21, of Beltsville, Maryland;
Junior Noe Alvarado-Requeno, a/k/a “Insolente,” a/k/a “Trankilo,” age 20, of Landover, Maryland;
Michael Eduardo Contreras, a/k/a “Katra,” a/k/a “Insoportable,” age 22, of Silver Spring, Maryland;
Luis Fernando Orellana-Estrada, a/k/a “Pinguino,” age 18, of Hyattsville, Maryland; and
Donald Roberto Mendez-Lopez, a/k/a “Chuckie,” age 18, of Hyattsville, Maryland.
All of the defendants are in custody.
The second superseding indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General Kenneth A. Blanco; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Assistant Director in Charge Andrew W. Vale of FBI Washington Field Office; Special Agent in Charge of DEA Karl C. Colder; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. The defendants were allegedly members of the Sailors Clique of MS-13. The four count superseding indictment alleges that from at least 2015 through September 2017, the defendants were members and associates of MS-13 who planned and committed murders, drug and gun trafficking, and extortions.
For a period of time beginning at least in 2015 through September 2017, the Sailors Clique is alleged to have extorted owners of illegal businesses in the Langley Park and Wheaton areas of Maryland, with the extortion proceeds being sent to El Salvador to benefit MS-13. In addition, members of the Sailors Clique allegedly trafficked narcotics, including marijuana and cocaine in Langley Park, Maryland, with the proceeds benefiting the gang.
More specifically, the superseding indictment alleges that on June 16, 2016, Alvarado-Requeno, planned with and directed other MS-13 members and associates to murder an individual who was thought to be a member of the rival 18th Street gang in Gaithersburg, Maryland.
On July 29, 2016, Tejada-Cruz, Hernandez-Guevara and other members and associates of MS-13 planned another murder. After luring the victim to a secluded location, Tejada-Cruz attempted to shoot the victim, and Tejada-Cruz and others stabbed the victim to death.
On March 27, 2017, Contreras arranged for members of the Sailors Clique to travel from Maryland to Lynchburg, Virginia where they murdered a victim in Bedford County.
The indictment further alleges that on August 9, 2016, Tejada-Cruz, Hernandez-Guevara and Rodriguez planned a drug deal to purchase marijuana. Hernandez-Guevara and Rodriguez attempted to steal the marijuana by brandishing a gun and knife, and in the course of the robbery shot and stabbed two individuals.
According to the indictment, on June 1, 2017, Juarez-Vasquez and other members and associates of MS-13 exchanged words with an individual in the Adelphi area of Maryland, and threw MS-13 gang signs. Juarez-Vasquez shot the victim in the head, killing him.
Alvarado-Requino, Tejada-Cruz, Hernandez-Guevara, and Juarez-Vasquez face a maximum sentence of life in prison. Rodriguez, Contreras, Orellana-Estrada and Mendez-Lopez face a maximum sentence of twenty years in prison for conspiring to participate in a racketeering enterprise. Tejada-Cruz and Hernandez-Guevara also face a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering. Orellana-Estrada and Mendez-Lopez also face a maximum of twenty years in prison for conspiring to interfere with interstate commerce by extortion.
Contreras is also charged with conspiracy to distribute and possession with intent to distribute controlled substances, which carries a penalty of up to 20 years in prison. Orellana-Estrada and Mendez-Lopez have been charged with conspiracy to interfere with interstate commerce by extortion, which carries a possible sentence of 20 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning thanked the FBI Washington Field Office, HSI, DEA, the Prince George’s County Police Department, the Hyattsville Police Department, the Montgomery County Police Department, the State’s Attorney’s Office of Prince George’s County, and the State’s Attorney’s Office of Montgomery County. Mr. Schenning also commended Assistant United States Attorneys William D. Moomau and Daniel C. Gardner of the United States Attorney’s Office for the District of Maryland and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Eagle Butte Woman Charged with Violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty ActRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman, has been indicted by a federal grand jury for violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act.
Wanda Dupris, age 44, was indicted on August 22, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to two years in custody and/or a $250,000 fine, one year of supervised release, and up to $125 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 30, 2015, Dupris did knowingly, and with wanton disregard for the consequences of her actions, possess, sell, barter, and offer to sell and barter a bald eagle and a golden eagle and parts thereof, and other migratory birds and parts thereof.
The charges are merely accusations and Dupris is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.
Dupris was released on bond pending trial. A trial date has not been set.
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston for illegally reentering the United States after being deported.
Teddy Leonel Cruz-Velez, 44, pleaded guilty to one count of illegal re-entry of a deported alien before U.S. District Court Judge George A. O’Toole Jr. Sentencing is scheduled for Jan. 11, 2018.
In December 2016, law enforcement in Middleton encountered Cruz-Velez and determined that he was illegally present in the United States. Cruz-Velez had previously been deported on July 2, 2013.
Cruz-Velez faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.
Dominican National Involved in Federal Fentanyl Sweep in Lawrence Pleads GuiltyRead the Press Release
BOSTON - A Dominican national pleaded guilty yesterday in federal court in Boston to federal drug offenses.
Oscar Francisco Marcano Valverde, a/k/a Oscar Marcado, a/k/a Oscar Malcano, 38, a Dominican national formerly residing in Haverhill, pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine, and fentanyl and one count of being an alien unlawfully present in the United States in possession of a firearm and ammunition. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 10, 2018.
On May 30, 2017, after a year-long investigation aimed at attacking the fentanyl and heroin crisis in Lawrence and surrounding areas, more than 200 federal, state and local law enforcement officers executed a federal drug sweep to dismantle a Lawrence-based drug trafficking organization allegedly run by Juan Anibal Patrone. Marcano Valverde was arrested and charged along with Patrone and approximately 30 co-conspirators.
Marcano Valverde worked part-time at a stash house where he prepared and packaged drugs as well as picked up and delivered drugs and drug proceeds at Patrone’s direction.
The conspiracy charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. The charge of being an alien unlawfully present in the United States in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Marcano Valverde will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James Fitzpatrick made the announcement today. The DEA Cross Border Initiative, comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments, conducted the investigation jointly with the Massachusetts State Police. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Departments of Justice and State Partner to Protect U.S. Workers from Discrimination and Combat FraudRead the Press Release
The Departments of Justice and State announced today that they have formalized a partnership aimed at protecting U.S. workers from discrimination and combatting fraud by employers that misuse visas. The partnership, memorialized by a Memorandum of Understanding (MOU) between the Department of Justice’s Civil Rights Division and the Department of State’s Bureau of Consular Affairs, facilitates information sharing in an effort to help each agency advance its mission.
Under the MOU, the Civil Rights Division and the Bureau of Consular Affairs will share information about employers that may be engaging in unlawful discrimination, committing fraud, or making other misrepresentations in their use of employment-based visas, such as H-1B, H-2A, and H-2B visas. The agencies will also provide each other with technical assistance and training to encourage complaint referrals and effective collaboration.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, enforces the anti-discrimination provision of the Immigration and Nationality Act (INA). The provision prohibits, among other things, citizenship and national origin discrimination in hiring, firing, or recruiting.
In February 2017, IER launched its Protecting U.S. Workers Initiative, an initiative aimed at targeting, investigating, and bringing enforcement actions against companies that discriminate against U.S. workers in favor of foreign visa workers. The Initiative filed its first lawsuit last week against a Loveland, Colorado company for allegedly discriminating against U.S. workers.
“Employers that discriminate against qualified U.S. workers by favoring foreign visa workers will be held accountable,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “Today’s agreement reflects the Civil Rights Division’s commitment to use all available tools, including collaboration with other federal agencies, to protect U.S. workers from discrimination. The Division welcomes the Department of State as a partner in this effort.”
“The Department of State’s Bureau of Consular Affairs is pleased to have joined forces with the Department of Justice to protect U.S. workers, combat fraud, and facilitate legitimate international travel,” said Assistant Secretary of State for Consular Affairs, Carl C. Risch.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status or national origin in hiring, firing, recruitment or referral, or during the employment eligibility verification process (Form I-9 and E-Verify), should contact IER’s worker hotline for assistance.
For additional information on U.S. visas and other U.S. consular services, please see the State Department's website at travel.state.gov.
Department of Justice Awards over $18 Million to Oklahoma TribesRead the Press Release
The Department of Justice has awarded more than $18 million in grants to Oklahoma tribal governments to enhance public health and safety, announced R. Trent Shores, U.S. Attorney for the Northern District of Oklahoma; Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma; and Brian J. Kuester, U.S. Attorney for the Eastern District of Oklahoma.
These grants are part of more than $100 million in grants to 125 American Indian tribes, Alaska Native villages, tribal consortia, and tribal designees, announced today by Associate Attorney General Rachel Brand. Many of these awards were made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
CTAS grants are designed to enhance law enforcement practices, expand victim services, and sustain crime prevention and intervention efforts. Awards cover nine areas: public safety and community policing, justice systems planning, alcohol and substance abuse, corrections and correctional alternatives, children’s justice act partnerships, services for victims of crime, violence against women, juvenile justice, and tribal youth programs.
“Reducing violent gang and gun crimes in Indian Country is crucial to protecting citizens who live in and around tribal communities. The justice community must also look to help those with mental health and substance abuse issues to re-enter society as productive citizens. These Federal grant allocations will help to further those goals,” said U.S. Attorney Shores of the Northern District of Oklahoma.
The Oklahoma CTAS recipients are:
Cherokee Nation (total: $3,087,900)
Public Safety and Community Policing: $565,241
Comprehensive Tribal Justice Systems Strategic Planning: $74,995
Justice Systems and Alcohol and Substance Abuse: $749,993
Violence Against Women Tribal Governments Program: $898,100
Comprehensive Tribal Victim Assistance Program: $449,925
Tribal Youth Program: $349,646
Choctaw Nation of Oklahoma (total: $1,994,588)
Violence Against Women Tribal Governments Program: $897,851
Comprehensive Tribal Victim Assistance Program: $449,999
Juvenile Healing to Wellness Courts: $350,000
Tribal Youth Program: $296,738
Citizen Potawatomi Nation (total: $1,098,106)
Justice Systems and Alcohol and Substance Abuse: $749,593
Tribal Youth Program: $348,513
Comanche Nation (total: $749,348)
Justice Systems and Alcohol and Substance Abuse: $749,348
Delaware Tribe of Indians (total: $424,845)
Violence Against Women Tribal Governments Program: $424,845
Muscogee Creek Nation (total: $803,912)
Violence Against Women Tribal Governments Program: $803,912
Pawnee Nation (total: $700,000)
Violence Against Women Tribal Governments Program: $700,000
Ponca Tribe of Oklahoma (total: $1,800,000)
Corrections and Correctional Alternatives: $1,000,000
Comprehensive Tribal Victim Assistance Program: $450,000
Tribal Youth Program: $350,000
Quapaw Tribe of Oklahoma (total: $4,590,422)
Public Safety and Community Policing: $232,929
Justice Systems and Alcohol and Substance Abuse: $446,714
Corrections and Correctional Alternatives: $3,910,779
Seminole Nation of Oklahoma (total: $900,000)
Violence Against Women Tribal Governments Program: $900,000
Seneca Cayuga Nation (total: $825,000)
Violence Against Women Tribal Governments Program: $825,000
Wyandotte Nation (total: $200,189)
Public Safety and Community Policing: $200,189
In addition to CTAS grants, the Department awarded $889,975 to four Oklahoma tribes under the Adam Walsh Act Implementation grant program, part of the Office of Justice Program’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. These grant awards enable states, the District of Columbia, territories, and tribal jurisdictions to develop and enhance programs that implement the requirements of the federal Sex Offender Registration and Notification Act. Funding supports staff, information-sharing technology, infrastructure development, law enforcement training, and stakeholder collaboration.
The Oklahoma recipients of Adam Walsh Act Implementation grants are:
Caddo Nation: $200,000
Cheyenne and Arapaho Tribes: $400,000
Seneca Cayuga Nation: $198,181
United Keetoowah Band of Cherokee Indians: $91,794
Finally, through the Office of Justice Programs, the University of Oklahoma Health Sciences Center will receive $1.5 million under the Office of Juvenile Justice and Delinquency Prevention’s Fiscal Year 2017 Tribal Youth Program Training and Technical Assistance grant. This program provides culturally-sensitive, trauma-informed and developmentally-appropriate training, support, resources, information, and related technical assistance to help tribes meet the needs of their youth.
The Department of Justice’s national press releases on these and related grants are available at:
- www.justice.gov/tribal/awards, www.justice.gov/ovw/page/file/1000416 /download
- www.justice.gov/opa/press-release/file/1000981/download.
David A. Hickman Pleads Guilty to Using Fire or Explosives to Damage or Destroy Buildings Used in Interstate CommerceRead the Press Release
ALBUQUERQUE – David A. Hickman, 28, of Albuquerque, N.M., pleaded guilty today in federal court to five counts of damaging and destroying buildings used in interstate commerce by fire or explosive. Although Hickman pled guilty to five arson counts, in his plea agreement, Hickman acknowledged igniting arson fires that damaged or destroyed nine businesses engaged in interstate commerce in Albuquerque between Nov. 16, 2016 and Nov. 26, 2106. The plea agreement includes a recommendation that Hickman be sentenced to a term of imprisonment within the range of five to 20 years.
Hickman’s guilty plea was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Gorden E. Eden Jr., of the Albuquerque Police Department (APD), and Captain Jackie Lance of the Albuquerque Fire Department, Fire Investigation Division (FID).
“Arson is a crime of extreme violence that puts the lives of the public and first responders in grave danger, and arsonists must understand that their crimes will evoke a serious response from the law enforcement community,” said Acting U.S. Attorney James D. Tierney. “The U.S. Attorney’s Office commends the dedicated men and women of the FBI, ATF, the Albuquerque Police Department, and the Albuquerque Fire Department for working together to protect our community by apprehending David Hickman and bringing him to justice before his criminal conduct resulted in human injury and loss of life.”
“A series of arsons in Albuquerque almost a year ago not only endangered the lives of firefighters and other innocent people, but also jeopardized the paychecks of numerous hard-working employees at the damaged businesses,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “The FBI is proud to have been part of the team of local and federal law enforcement and fire investigators who came together to solve this case. We congratulate the U.S. Attorney’s Office on a successful prosecution, and we hope it sends a clear message that those responsible for this kind of criminal behavior will be held accountable.”
“I would like to compliment the investigative efforts of all the agencies that lead to Hickman’s arrest,” said Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the ATF. “The Albuquerque Fire Investigation Division in partnership with the ATF National Response Team were able to determine the cause and origin of the Carlisle Condominiums fire started by Hickman on November 23, 2016.”
“This guilty plea ensures justice in a very disturbing case. We are appreciate the hard work and diligence of our law enforcement partners,” said Albuquerque Police Chief Gorden E. Eden Jr.
“The successful investigation and prosecution of David Hickman brings great pride to the Albuquerque Fire Department, especially its Fire Investigation Division (FID). Through a community approach, the men and women of the FID, together with APD, ATF and FBI worked diligently to close this case while continuing to keep our community safe,” said Albuquerque Fire Captain Jackie Lance. “We would like to express our gratitude to everyone who contributed to the successful resolution of this complex case. Please remember if you see something suspicious, say something.”
Hickman was arrested on Nov. 28, 2016, on a criminal complaint charging him with maliciously damaged and destroyed, and attempted to damage and destroy, by means of fire, a building, an Old Navy store located in Albuquerque, used in interstate commerce on Nov. 26, 2016. APD officers arrested Hickman in the early hours of Nov. 26, 2016, and later transferred him into the custody of the FBI. Hickman was arrested shortly after an APD officer responded to the Pavilions at San Mateo shopping center after hearing “small explosions” coming from the area. When the officer arrived at the shopping center, he observed Hickman running into and out of the Old Navy store located in the shopping center, which was on fire. Hickman subsequently was indicted on one count of maliciously damaging a building, the Old Navy store, by fire on Dec. 20, 2016.
During today’s change of plea hearing, Hickman pled guilty to the one-count indictment and to a felony information charging him with four additional counts of arson. In entering the guilty plea, Hickman admitted that, between Nov. 16, 2016 and Nov. 26, 2016, he ignited and attempted to ignite nine separate fires at the following businesses in Albuquerque:
- Starbucks Coffee Shop, located at 800 Broadway Blvd. NE;
- Project Defending Life, located at 625 San Mateo Blvd. NE;
- Carlisle Condominiums, located at 3600 Central Ave. SE;
- Starbucks Coffee Shop, located at 5301 Gibson Blvd. SE;
- Starbucks Coffee Shop, located at 4407 Lomas Blvd. NE;
- Starbucks Coffee Shop, located at 3400 Central Ave. SE;
- Barnes & Noble Bookstore, located at the Coronado Mall at 6600 Menaul Blvd. NE;
- “Shred It,” located at 1415 Broadway Blvd. NE; and
- Old Navy, located at 4900 Cutler Ave. NE.
However, Hickman entered guilty pleas to committing five arsons that damaged and destroyed the following businesses:
- Igniting the fire at the Carlisle Condominiums located at 3600 Central Ave. SE, on Nov. 23, 2016, by using glass mason jars filled with ignitable liquid. The Carlisle Condominiums were under construction and approximately 80% complete when Hickman broke into the construction site and ignited the fire. The damages caused by the fire exceeded $8 million.
- Setting the fire at the Starbucks Coffee Shop located at 5301 Gibson Blvd. SE, on Nov. 25, 2016, by firing a gun into a glass door so he could enter the shop and throwing glass mason jar devices into the building together with firecrackers and a kerosene container that would ignite and fuel the fire.
- Setting the fire at the “Shred It” building located at 1415 Broadway Blvd NE, on Nov. 26, 2016, by firing a gun into a glass door so he could enter the building and use glass mason jar devices and road flares to ignite fires in the building.
- Setting the fire at the Barnes & Noble bookstore building located at the Coronado Mall at 6600 Menaul Blvd. NE, on Nov. 26, 2016, by firing a gun into a glass door so he could enter the building and use glass mason jar devices and a road flare to ignite fires in the store. The damages caused by the fire exceeded $800,000.
- Setting the fire at the Old Navy store located in Albuquerque on Nov. 26, 2016, by shooting several rounds from an assault rifle into the windows of the store so he could enter the store and ignite several fires inside the store using glass mason jar devices with a road flare. The damages caused by the fire exceeded $690,000.
Hickman was arrested shortly after departing the Old Navy store. When he was arrested, Hickman was wearing a holster with a handgun and had a flare in his belt. In Hickman’s vehicle, officers found an assault rifle in his vehicle, glass mason jar devices, tape, ammunition, kerosene, tannerite, and motor oil. Officers also found similar materials, including firecrackers, inside Hickman’s residence while executing a search warrant.
Hickman has been in federal custody since his arrest and remains in custody pending a sentencing hearing, which has yet to be scheduled.
The Albuquerque Division of the FBI, the Albuquerque office of the ATF, ATF’s National Response Team, APD and the Albuquerque Fire Department conducted the investigation of this case. Assistant U.S. Attorney Fred J. Federici is prosecuting the case.
Hickman Indictment Hickman Information Hickman Plea AgreementCongressional Staffer Charged with Filing False Security Clearance FormRead the Press Release
WASHINGTON – A congressional staffer was charged today with filing a false security clearance form, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Jessie K. Liu for the District of Columbia, and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office.
According to the indictment, Issac Lanier Avant, a resident of Arlington, Va., was a staff member employed by the House of Representatives since approximately 2000. Since 2002, Avant has been the Chief of Staff for a member of Congress. In approximately December 2006, he began an additional position for the House Committee on Homeland Security, including Deputy Staff Director and Staff Director. The indictment charges that from 2008 through 2012, Avant earned wages of approximately $170,000 and failed to file an individual income tax return with the Internal Revenue Service (IRS) during those years. Avant allegedly had no federal income withheld during those years because in May 2005, he caused a form to be filed with his employer that falsely claimed he was exempt from federal income taxes. According to the indictment, Avant did not have any federal tax withheld from his paycheck until the IRS mandated that his employer begin withholding in January 2013.
In 2008 and again in 2013, for his position with the Committee on Homeland Security, Avant allegedly completed a Standard Form 86, “Questionnaire for National Security Positions” (SF-86), in order to receive a Top Secret security clearance. The indictment charges that on Sept. 18, 2013, Avant willfully made a false statement by responding “no” to the following question on a SF-86: “In the past seven (7) years have you failed to file or pay federal, state, or other taxes when required by law or ordinance?”
If convicted, Avant faces a statutory maximum prison term of five years, as well as a term of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Liu thanked special agents of the FBI, who conducted the investigation, and Assistant U.S. Attorney John Marston and Assistant Chief Todd Ellinwood of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Congressional Staffer Charged with Filing False Security Clearance FormRead the Press Release
A congressional staffer was charged today with filing a false security clearance form, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Jessie K. Liu for the District of Columbia and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office.
According to the indictment, Issac Lanier Avant, a resident of Arlington, Virginia, was a staff member employed by the House of Representatives since approximately 2000. Since 2002, Avant has been the Chief of Staff for a member of Congress. In approximately December 2006, he began an additional position for the House Committee on Homeland Security, including Deputy Staff Director and Staff Director. The indictment charges that from 2008 through 2012, Avant earned wages of approximately $170,000 and failed to file an individual income tax return with the Internal Revenue Service (IRS) during those years. Avant allegedly had no federal income withheld during those years because in May 2005, he caused a form to be filed with his employer that falsely claimed he was exempt from federal income taxes. According to the indictment, Avant did not have any federal tax withheld from his paycheck until the IRS mandated that his employer begin withholding in January 2013.
In 2008 and again in 2013, for his position with the Committee on Homeland Security, Avant allegedly completed a Standard Form 86, “Questionnaire for National Security Positions” (SF-86), in order to receive a Top Secret security clearance. The indictment charges that on Sept. 18, 2013, Avant willfully made a false statement by responding “no” to the following question on a SF-86: “In the past seven (7) years have you failed to file or pay federal, state, or other taxes when required by law or ordinance?”
If convicted, Avant faces a statutory maximum prison term of five years, as well as a term of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Liu thanked special agents of the FBI, who conducted the investigation, and Assistant U.S. Attorney John Marston and Assistant Chief Todd Ellinwood of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Charlotte Woman Pleads Guilty to Wire Fraud for Embezzling Funds Intended as Charitable Assistance to Individuals Experiencing Financial HardshipsRead the Press Release
CHARLOTTE, N.C. – Today, a Charlotte woman pleaded guilty to wire fraud for embezzling money from a non-profit organization that provides charitable assistance to individuals experiencing financial hardships, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Leah S. Belk, 48, of Charlotte, entered a plea of guilty before U.S. Magistrate Judge David S. Cayer.
Matthew Quinn, Acting Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Rose in making today’s announcement.
According to the filed plea agreement and other court documents, from August 2010 to March 2017, Belk engaged in a scheme to defraud her employer (the Company), and an affiliated non-profit organization (the Foundation), of which she was a board member, by embezzling funds intended to provide charitable assistance to employees faced with financial hardships. According to court records, the Foundation received funding primarily from donations made by the Company’s employees through payroll deductions.
Court records show that members of the Foundation’s board of directors, which was comprised of Company employees, evaluated applications received from Company employees to determine whether to award financial assistance based on the employee’s need and the events that contributed to the hardship. The Foundation typically paid an approved employee’s expenses directly by issuing checks payable to the employee’s mortgage or utility companies to cover the employee’s bills. The Foundation also purchased Company gift cards to provide to awarded applicants in times of need.
According to court records, Belk was an employee of the Company from 1992 until her termination in March 2017. From 2006 until her termination, Belk was also a member of the Foundation’s board of directors and acted as the Foundation’s secretary. Court records show that Belk performed administrative tasks in connection with the Foundation’s operations, including: assembling and logging applications reviewed by the board; communicating directly with applicants; coordinating the initiation and processing of checks to be paid on behalf of awarded applicants; and maintaining control over Company gift cards purchased by the Foundation to provide employees in need.
Belk admitted in plea documents and in court today that, beginning in August 2010 through March 2017, she used Foundation funds intended for needy Company employees to pay for personal expenses, including her mortgage and utility bills. Belk also admitted to falsifying and modifying applications and other Foundation documents to cover the fraud. Specifically, Belk admitted to modifying approved applications and documents after payments had been made to awarded applicants, to cause the issuance of additional checks to cover her own personal expenses using Foundation funds. Belk also diverted applications from the board, and falsified and reused board approval forms, to approve payments and the issuance of checks to cover personal expenses. Belk also modified rejected applications to falsely reflect that they had been approved, and, based on the falsified approvals, Belk directed the issuance of checks to pay for her personal expenditures. Court records also show that Belk used Company gift cards intended for needy employees to make purchases for herself.
Over the course of the scheme, Belk falsified documents and diverted payments for her own benefit in approximately 45 separate incidents. In total, Belk fraudulently diverted more than $77,000 in Foundation funds.
Belk pleaded guilty today to one count of wire fraud and was released on bond. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. A sentencing date has not been set yet.
U.S. Secret Service led the investigation. Assistant United States Attorney William Miller, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Charleston man sentenced for Social Security fraudRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to five years of probation and ordered to pay $36,927 in restitution for Social Security fraud, announced United States Attorney Carol Casto. Thomas Bennett, 58, previously pleaded guilty to theft of public money.
Bennett admitted that he participated in a scheme in which his family members, in 1986, fraudulently applied for Social Security benefits. The fraudulent application was in the name of a family member who died in 1967 and members of Bennett’s family were not entitled to receive any benefits. Bennett subsequently learned about the fraud and in 2000, he joined his family in participating in the scheme. When the other family members died in 2012 and 2013, Bennett took over the Social Security scheme and continued to cash Social Security benefits checks that he knew he was not entitled to receive. Bennett assisted his other family members in cashing Social Security benefits checks dating back to the year 2000 totaling $36,927.
The investigation was conducted by the Social Security Administration’s Office of the Inspector General and the Social Security Administration. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
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Chamberlain Man, Fort Thompson Man, and Box Elder Woman Charged with Violations of the Bald and Golden Eagle Protection Act and Lacey ActRead the Press Release
United States Attorney Randolph J. Seiler announced that a Chamberlain, South Dakota man, a Fort Thompson, South Dakota man, and a Box Elder, South Dakota woman have been indicted by a federal grand jury for violations of the Bald and Golden Eagle Protection Act and Lacey Act.
Christopher Pomani, age 37, Michael Pomani, age 40, and Arvella Pomani, age 35, were indicted on August 22, 2017. They appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to two years in custody and/or a $250,000 fine, one year of supervised release, and up to $175 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 27, 2014, Christopher Pomani and Michael Pomani did knowingly, and with wanton disregard for the consequences of their actions, possess, sell, barter, and offer to sell and barter, a bald eagle and a golden eagle and parts thereof.
The indictment also alleges that between October 28, 2014, and October 30, 2014, Michael Pomani and Arvella Pomani also did knowingly, and with wanton disregard for the consequences of their actions, possess, sell, barter, and offer to sell and barter a bald eagle and a golden eagle and parts thereof, as well as knowingly transported, sold, received, acquired, and purchased bald eagles, golden eagles, and various species of hawks and owls.
The charges are merely accusations and all three defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.
Christopher Pomani was remanded to the custody of the U.S. Marshals Service pending trial. Michael Pomani and Arvella Pomani were released on bond pending trial. A trial date has not been set.
Boston Man Sentenced for Escaping from CustodyRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for escaping from custody at a Residential Reentry Center.
Sean Jones, 43, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 15 months in prison. On March 30, 2017, Jones pleaded guilty to one count of escape.
In Feb. 2011, Jones was convicted in federal court of distributing cocaine and sentenced to eight years in prison. In August 2016, Jones was transferred from federal prison to a Residential Reentry Center, where he was to serve the remainder of his sentence until Feb. 25, 2017. On Oct. 8, 2016, Jones, who was allowed to sign out of the Center on a “common pass,” contacted the program to let them know he had fainted and was going to the hospital. Jones never returned to the program and was placed on escape status the following day. On Oct. 12, 2016, Jones was arrested by Transit Police in Boston and charged with drug possession, resisting arrest, and making threats. Jones was released on the state charges and taken into federal custody.
Acting United States Attorney William D. Weinreb and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement. Assistant U.S Attorney Nicholas A. Soivilien of Weinreb’s Major Crimes Unit prosecuted the case.
Best Practices Regarding Safety & Investigative Techniques During Opioids, Synthetics, & Overdose Investigations ConferenceRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina, along with the Wake County District Attorney’s Office, hosted a conference today to provide patrol officers, investigators, first responders and narcotics and homicide detectives information regarding safety measures and investigative techniques necessary for working opioid and synthetic drug cases. Representatives of the North Carolina State Bureau of Investigation, the Drug Enforcement Administration and the Office of North Carolina’s Chief Medical Examiner provided critical information regarding safety measures and evidence gathering and investigative techniques.
United States Attorney Robert J. Higdon, Jr. welcomed conference participants with the following remarks:
“I wanted to be here with you this morning to open this important training conference because North Carolina is literally at the center of the opioid and synthetic crisis gripping our nation. This crisis affects all of us. In 2015 more than 52,000 Americans lost their lives to drug overdose. And the numbers we have for 2016 show another increase - a big increase. Based on preliminary data, nearly 60,000 Americans lost their lives to drug overdoses last year. This crisis is being driven primarily by opioids-prescription drugs, heroin and synthetic drugs like fentanyl.
Here in North Carolina we have seen an alarming increase in opioid related deaths. In 2015 more than 1100 of our people lost their lives from opioid abuse - 1100 of our friends, neighbors, fellow North Carolinians. More than three per day.
Across our communities we’re seeing more availability, higher purity, and lower prices. As you know, drugs like heroin and cocaine are being laced with drugs like fentanyl - a substance 30 to 50 times more powerful than heroin. As a result, the drugs on the street are now more powerful, more addictive, and more dangerous than ever before. And they are not just dangerous for users; even being accidently exposed to just a few grains of fentanyl can kill a police officer or paramedic.
Today’s conference is designed to provide you with information and best practices about the safety measures you need to take as you investigate opioid and synthetic cases. And, we hope, it will help you continue to hone your investigative skills as you collect evidence and prepare cases for prosecution - the prosecution of the traffickers who are pumping this poison into our communities.
To confront a crisis on this scale, we must take a comprehensive approach that includes prevention, enforcement and treatment. You are on the front lines of our enforcement effort. And as you investigate these cases, we want you to have every tool available to stay safe and to investigate these critical cases so that traffickers can be successfully prosecuted.
We in the United States Attorney’s Office stand behind you and we are prepared to prosecute opioid traffickers across the Eastern District of North Carolina. Congress has given us many tools to help stem the tide of deadly opioids in our communities.
We will aggressively use mandatory minimum sentencing, stiff sentences for heroin and other Schedule I or II drugs, and enhanced sentences available where death or serious bodily injury occurs. And where drug traffickers have been previously convicted of a felony drug offense, we will pursue the substantial enhanced sentences available under federal law.
Today’s training is one-step toward strengthening our collaboration and communication. And I am very pleased that we are able to partner with Lorrin Freeman and her very fine staff at the Wake County District Attorney’s Office. I know they share our deep commitment to fighting the problems in a comprehensive and aggressive way. And I know she shares our commitment to the safety and effectiveness of dedicated investigators and first responders like each of you.
As one who lives and works and who is raising a family here in Wake County, I thank you for the work you do every day to protect me, my wife and my two sons. Thank you for your dedication and for the sacrifices you make for each of us. And thank you for being here today and for your commitment to this important work. I hope and trust that the information that is shared today will help you stay safe and do your job more efficiently. I look forward to working closely with you to protect our communities from the opioid and synthetic crisis.”
Belmont County woman admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Bridgeport, Ohio woman has admitted to her role in a crack cocaine distribution operation, Acting United States Attorney Betsy Steinfeld Jividen announced.
Faith Diane Leasure, age 22, pled guilty to one count of “Aiding and Abetting the Distribution of Crack Cocaine.” Leasure admitted to selling crack cocaine in Ohio County in August 2016.
Leasure 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 David J. Perri is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U. S. Magistrate Judge James E. Seibert presided.
Austin Area Patient Recruiter Pleads Guilty to Receiving Kickbacks in Health Care Fraud SchemeRead the Press Release
In Austin this afternoon, 68-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, pleaded guilty to federal charges in connection with a Health Care Fraud scheme announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
Appearing before United States Magistrate Judge Mark Lane, McKenzie pleaded guilty to one count of conspiracy to violate the federal anti-kickback law and one count of soliciting and receiving kickbacks. Each count calls for up to five years in federal prison. McKenzie remains on bond pending sentencing, which has yet to be scheduled.
According to court records, Dr. William Joseph Dubin and his son, Dr. David Fox Dubin were licensed psychologists who operated Psychological A.R.T.S. in Austin. Between April 2011 and March 2013, McKenzie was the President of the Board of Directors of an emergency shelter house located approximately eighty miles from Austin. That facility provided temporary shelter for crisis intervention and mental health services to children and youth ages 5 to 17 who had been removed from their homes by the Texas Department of Family and Protective Services. By pleading guilty, McKenzie admitted to receiving over $15,000 in kickbacks from the doctors during that time for using his position at the emergency shelter and his contacts with other similar shelters to refer children and youth to Psychological A.R.T.S. for comprehensive mental health assessments.
In July, a grand jury indicted the doctors on federal charges including: conspiracy to violate the federal anti-kickback law; five counts of paying illegal kickbacks; conspiracy to commit health care fraud; seven counts of health care fraud and aiding and abetting health care fraud; and, six counts of aggravated identity theft. The indictment alleges that from January 2011 to June 2015, the doctors caused fraudulent billings totaling approximately $300,000 to be submitted to the Texas Medicaid program and the Texas Vocational Rehabilitation Services program for various psychological services.
Jury selection for both doctors is scheduled for January 2, 2018, before U.S. District Judge Sam Sparks in Austin. Upon conviction, each count related to illegal kickbacks calls for up to five years in federal prison; each count related to Health Care Fraud calls for up to ten years in federal prison; and, each count related to aggravated identity theft calls for up to two years in federal prison.
The Federal Bureau of Investigation, together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit, investigated this case. Special Assistant United States Attorney Rex Beasley is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Attorney General Jeff Sessions Announces Reinvigoration of Project Safe Neighborhoods and Other Actions to Reduce Rising Tide of Violent CrimeRead the Press Release
Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
Attorney General Sessions stated, “According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action.”
“The Northern District of Oklahoma is not immune to the scourge of violent crime. The United States Attorney’s Office stands ready to work side-by-side with our federal, state, tribal, and local partners to combat violent crime,” United States Attorney Shores said. “We will target the most violent offenders, and we will prosecute them. We will increase our engagement with community leaders to help keep youth on track and reduce recidivism. Bottom line, we cannot afford to be complacent in the face of violence that threatens our communities.”
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.
More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.
Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.
Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, Arizona, and Kansas City, Missouri.
Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
Armed Drug Trafficker Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Bruce King, 48, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute marijuana and possession of a short-barrel rifle which was not registered in the National Firearms Registration and Transfer Record. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000 or both.Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that King was arrested on October 19, 2015, following a search by the New York State Department of Corrections and Community Supervision of his residence at 161 Conkey Avenue in Rochester. During the search, officers recovered a brown paper bag with plastic capsules containing marijuana inside a backpack. Officers also found a .22 caliber sawed-off rifle with two boxes of .22 caliber ammunition. The barrel and the stock of the rifle had been shortened so that the barrel was 5 and 10/16 inches and the overall length was 14 and 1/16 inches. Officers also found drug trafficking paraphernalia in the residence as well.
The plea is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Rochester Police Department, under the direction of Chief Michael Ciminelli; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for January 22, 2018, at 12:30 p.m. before Judge Wolford.
Albuquerque Man Sentenced for Prescription Drug Trafficking and Money Laundering ConvictionRead the Press Release
ALBUQUERQUE – Gerald Roberts, 49, of Albuquerque, N.M., was sentenced today in federal court to 51 months in prison followed by three years of supervised release for his conviction on prescription drug trafficking and money laundering charges. Roberts and his wife and co-defendant Yvonne Garcia, 55, also were ordered to forfeit their interest in the proceeds of their criminal activities, including $71,674.92 seized from bank accounts and a safe deposit box, a 2016 Toyota Camry, a 2016 Toyota Tacoma truck, a 2013 BMW motorcycle, and to pay a money judgment in the amount of $15,500.
Roberts and Garcia were arrested in Sept. 2016, on an eight-count indictment charging them with trafficking controlled substances in Bernalillo County, N.M. Roberts and Garcia were charged with conspiring to distribute oxycodone, oxymorphone and alprazolam from May 2016 through Sept. 2016. The indictment also charged the couple with distributing oxycodone on three separate occasions in May, June and July 2016; distributing oxymorphone on four occasions in May, June, July and Sept. 2016; and distributing alprazolam in July 2016.
On March 29, 2017, Roberts and Garcia each pled guilty to the conspiracy charged in the indictment and to felony informations charging them with conspiring to launder drug proceeds. According to the plea agreements, between May 2016 and Sept. 2016, Roberts and Garcia sold oxycodone, oxymorphone and alprazolam to an individual who unbeknownst to them was an undercover DEA agent. Roberts and Garcia deposited the proceeds of their illegal drug transactions into Wells Fargo checking and savings accounts in amounts that would not trigger currency-reporting requirements that could alert law enforcement authorities to their illegal activities. Roberts and Garcia used the drug proceeds in the bank accounts to make payments on their residential mortgage and vehicle loans.
Garcia was previously sentenced on Aug. 16, 2017, to 46 months in prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of the DEA, the Albuquerque Police Department and the Santa Fe Police Department. Assistant U.S. Attorneys Shana B. Long and Peter J. Eicker prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Acting Manhattan U.S. Attorney and FBI Assistant Director Announce Securities and Wire Fraud Charges Against Founders of Purported Snack BusinessRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest and unsealing of a complaint charging LISA BERSHAN, BARRY SCHWARTZ, and JOEL MARGULIES with securities fraud, wire fraud, and conspiracy to commit those offenses in connection with a scheme to defraud investors in a company variously called The Awake Company and Starship Snacks (“Starship”).
BERSHAN and SCHWARTZ were presented earlier today in federal court in Atlanta, and MARGULIES was presented earlier today in federal court in Tennessee.
In a separate action, the SEC filed civil charges against BERSHAN, SCHWARTZ, and MARGULIES.
Acting U.S. Attorney Joon H. Kim said: “As alleged, while promising a sure thing, in the form of guaranteed returns, the defendants were actually selling nothing but lies. Instead of using investors’ money to grow the business, they allegedly spent it on plastic surgeries, jewelry, and cars. Thanks to the terrific investigative work of the FBI, the defendants will now have to answer in court for their lies.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Bershan, Schwartz, and Margulies allegedly led investors to believe their company was on a guaranteed path to success. To further support their claim, as charged today, they promised to buy back any shares that didn’t appreciate within a year, including a supplemental interest payment of five percent. Samples of chocolate intended to represent the caffeinated snack they had supposedly developed were provided to some for good measure, but the chocolate was void of its key ingredient. In the end the numbers didn’t add up as this sweet deal turned sour.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
As alleged, BERSHAN, SCHWARTZ, and MARGULIES created Starship with the stated goal of marketing and selling a caffeinated chocolate snack. BERSHAN, SCHWARTZ, and MARGULIES subsequently raised over $2 million from investors by telling them that their investments in Starship would be personally guaranteed against any losses; that Starship was on the verge of a lucrative acquisition by another entity, Monster Beverage Corp. (“Monster”); and that Starship’s signature product had been developed successfully. All of these representations were false and misleading. Starship had no ability to honor the guarantees that it and BERSHAN made to investors. It was never in talks with Monster to be acquired. And it had never developed or engaged a third party to develop its caffeinated snack. After receiving investor monies, moreover, BERSHAN, SCHWARTZ, and MARGULIES used those funds to maintain their own extravagant lifestyles, spending hundreds of thousands of dollars on things like luxury clothing, plastic surgery, interior decorating, and luxury housing in New York City.
Beginning in August 2015, BERSHAN, MARGULIES, and SCHWARTZ began soliciting investments in Starship. In order to assure investors that their investments in Starship would be safe, BERSHAN sent investors images of herself in what appeared to be a mansion with subject lines like, “Just a glimpse – my parents sure as hell didn’t leave me this.” BERSHAN and MARGULIES also signed investment documents providing that “[t]he Company and Lisa Bershan, its founder, have committed to repurchase” investors’ shares at the price that they had paid for them if they had not appreciated within a year, and further guaranteeing that “Lisa Bershan . . . [would] add an interest payment of 5%” in such an event. These guarantees were not made in good faith, as neither BERSHAN nor Starship had any significant assets or ability to honor the guarantees they were making. To the contrary, BERSHAN had unpaid tax liabilities and multiple outstanding civil judgments (and did not actually own the mansion that, as discussed above, she implicitly held out to investors as her own).
In addition to making bogus guarantees, BERSHAN, SCHWARTZ, and MARGULIES also told investors that Starship was in discussions to be acquired by Monster, and that this transaction would take place through a one-to-one exchange of Starship stock for Monster stock. In October 2015, for example, MARGULIES sent an email to multiple investors that sought additional investments and expressly stated, “[t]he deal as I am certain you have heard is done thanks in no small part to the extraordinary talents and skills of our CEO, Lisa Bershan. If you are not aware of the deal, it is a one to one --- share for share exchange of [Starship] for Monster after a six month holding period of [Starship] shares.” Given that Monster’s stock was, at the time, trading at many multiples of the $3 per share that Starship’s investors initially paid at the time, this purported transaction would result in tremendous gains for Starship investors. But there was no basis for the claim that the “deal . . . [was] done.” Starship was never acquired by Monster or any other entity, and, indeed, was never in negotiations with Monster.
Finally, BERSHAN, SCWHARTZ, and MARGULIES misrepresented the nature and progress of Starship’s purported business to investors. BERSHAN, SCHWARTZ, and MARGULIES told investors that Starship had developed its caffeinated chocolate snack, when, in reality, it had not done so. Indeed, in order to mislead investors into thinking that the product was further along than it actually was, BERSHAN, SCHWARTZ, and MARGULIES actually provided samples of normal chocolates to certain investors, falsely telling them that the chocolates were caffeinated as per Starship’s business plan.
In total, BERSHAN, SCHWARTZ, and MARGULIES raised over approximately $2 million from investors based on these false representations. Much of this amount was simply misappropriated by BERSHAN and SCHWARTZ (or paid to MARGULIES). Between August 2015 and July 2017, for example, BERSHAN and SCHWARTZ spent over $39,000 on plastic surgery; over $209,000 on retail purchases, including jewelry, clothes, and interior decorating; over $11,900 at a Mercedes dealership; and hundreds of thousands of dollars on luxury housing.
* * *
MARGULIES, 72, of Murfreesboro, Tennessee, BERSHAN, 65, and SCHWARTZ, 71, are each charged with one count of conspiring to commit securities and wire fraud, which carries a maximum prison sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the exceptional work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Robert Allen is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
33 Charged with Racketeering, Narcotics, Firearms, and Bank Fraud Offenses in Connection with Violent Gang Activity and Drug Trafficking Near the Mill Brook Houses in the Bronx, New YorkRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James J. Hunt, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of three Indictments and two Complaints charging 33 individuals with racketeering, narcotics, firearms, and bank fraud offenses in connection with violent gang and drug trafficking conduct near the Mill Brook Houses, in the Bronx, New York.
The indictment in U.S. v. Michael White, et al. charges a total of 14 individuals, eight of whom are charged with racketeering conspiracy in connection with their membership in a gang known as “MBG” (also known as “Money Bitches Guns” and “Millbrook Gangstas”) and 11 of whom are charged with racketeering conspiracy in connection with their association with the gang known as the “Young Gunnaz,” also known as the “YGz.” The indictment in U.S. v. Gary Davis, et al. charges a total of 15 individuals, four of whom are charged with racketeering conspiracy in connection with their membership in a gang known as “Killbrook.” The indictment in U.S. v. Algi Crawford, et al. charges two individuals with bank fraud. The complaint in U.S. v. Bernard Franklin, charges one individual with heroin distribution. The complaint in United States v. James Green, 17 Mag. 7566, charges one individual with crack cocaine distribution.
A total of 24 defendants were taken into custody today; five other defendants are already in state custody on other charges. Of the 33 defendants, 23 will be presented before U.S. Magistrate Judge Katharine H. Parker later today. DAVID OQUENDO was arrested in the Northern District of New York and will be presented and arraigned in the United States District Court for the Northern District of New York later today. U.S. v. Michael White is assigned to U.S. District Judge Robert W. Sweet. U.S. v. Gary Davis is assigned to U.S. District Judge Lorna G. Schofield. U.S. v. Algi Crawford is assigned to U.S. District Judge J. Paul Oetken. U.S. v. Bernard Franklin and U.S. v. Eric Green are not yet assigned to District Judges
Acting U.S. Attorney Joon H. Kim said: “As alleged, members and associates of these gangs and crews plagued the Mill Brook Houses for a decade, engaging in violence and selling drugs. One of the victims was Bolivia Beck, a 21-year-old who was shot dead in broad daylight. Thanks to the terrific investigative work of the FBI, DEA, and NYPD, the defendants will now face justice in federal court.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The gang members we rounded up in this case, and in many other investigations, seem to not learn the lesson that they cannot act with impunity. These gangs have a significantly negative impact on the neighborhoods where they operate, but we can’t make these arrests in a vacuum. We need the community to seize the chance at a fresh start to rebuild a safer place to live. With that said, we have had tremendous success in bringing down crime in New York City through our collaboration on the FBI NY Metro Safe Streets Task Force. We will keep focusing our resources against these gangs, and we won’t ever stop pursing the most violent criminals who look to fill the void.”
DEA Special Agent in Charge James J. Hunt said: “The drug trafficking of all three gangs around the Mill Brook Houses was a breeding ground for violence. By working collaboratively with our partners, law enforcement removed these gang members who are allegedly responsible for jeopardizing the safety of their neighbors by putting them in the middle of their turf war.”
As alleged in the Indictments and Complaint unsealed today in Manhattan federal court and in other court papers[1]:
MBG was a criminal enterprise involved in committing numerous acts of violence, including attempted murders, in the vicinity of the Mill Brook Houses in the Bronx. Members and associates of MBG enriched themselves by selling drugs, such as crack cocaine and marijuana. In particular, on or about February 4, 2013, MBG member DAVID OQUENDO attempted to murder a rival gang member in the Mill Brook Houses. On August 17, 2014, CHRISTOPHER HOWARD, a/k/a “Juju,” attempted to murder rival gang members in the Mill Brook Houses.
The YGz was a criminal enterprise involved in committing numerous acts of violence, including attempted murders, in the vicinity of the Mill Brook Houses in the Bronx. Members and associates of the YGz enriched themselves by selling drugs, such as crack cocaine and marijuana. On October 28, 2012, YGz member MICHAEL WHITE, a/k/a “Mike,” attempted to murder rival gang members, causing injuries to multiple people.
Killbrook was a criminal enterprise involved in committing numerous acts of violence, including murder and attempted murders, in the vicinity of the Mill Brook in the Bronx. Members and associates of Killbrook enriched themselves by selling drugs such as crack cocaine and marijuana. On or about April 18, 2011, Killbrook member GARY DAVIS, a/k/a “Reckless,” a/k/a “Poppa,” murdered Bolivia Beck in the Mill Brook Houses.
* * *
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI, DEA, and NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jordan Estes, Drew Skinner, and Alexandra Rothman are in charge of the prosecution.
The charges contained in the Indictments and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Michael White, et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
MICHAEL WHITE (age 29)
JOEY COLON (age 28)
DEMETRIUS WINGO (age 25)
ANTHONY BUSH (age 27)
DAVID OQUENDO (age 27)
CHRISTIAN PEREZ (age 24)
JAMES ROBINSON (age 30)
CHRISTOPHER HOWARD (age 25)
20 years in prison
2
Racketeering conspiracy
18 U.S.C. § 1962(d)
MICHAEL WHITE
JOEY COLON
DEMETRIUS WINGO
ANTHONY BUSH
DAVID OQUENDO
CHRISTIAN PEREZ
ALLEN KNIGHT (age 28)
MIGUEL CALDERON (age 23)
JAMESE SNIPES (age 19)
WESLEY MONGE (age 20)
OSCAR BRIONES (age 20)
20 years in prison
3
Narcotics conspiracy
21 U.S.C. § 846
JOEY COLON
DEMETRIUS WINGO
ANTHONY BUSH
DAVID OQUENDO
CHRISTIAN PEREZ
JAMES ROBINSON
ALLEN KNIGHT
MIGUEL CALDERON
JAMESE SNIPES
WESLEY MONGE
OSCAR BRIONES
ROY ROBINSON (age 38)
Life in prison
Mandatory minimum of 10 years in prison
4
Violent crime in aid of racketeering
18 U.S.C. § 1959(a)(3), (5)
MICHAEL WHITE
20 years in prison
5
Violent crime in aid of racketeering
18 U.S.C. § 1959(a)(3), (5)
DAVID OQUENDO
20 years in prison
6
Violent crime in aid of racketeering
18 U.S.C. § 1959(a)(3), (5)
CHRISTOPHER HOWARD
20 years in prison
7
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
18 U.S.C. § 924(c )
JOEY COLON
DEMETRIUS WINGO
ANTHONY BUSH
DAVID OQUENDO
CHRISTIAN PEREZ
JAMES ROBINSON
CHRISTOPHER HOWARD
Life in prison
Mandatory minimum of 10 years in prison
8
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
18 U.S.C. § 924(c )
MICHAEL WHITE
ALLEN KNIGHT
MIGUEL CALDERON
WESLEY MONGE
OSCAR BRIONES
Life in prison
Mandatory minimum of 10 years in prison
9
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime
18 U.S.C. § 924(c )
ROY ROBINSON
Life in prison
Mandatory minimum of 5 years in prison
United States v. Gary Davis, et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
GARY DAVIS (age 27)
RAMEL JACKSON (age 26)
ANDREW BURRELL (age 26)
QUENTIN STARKES (age 25)
For GARY DAVIS, life in prison
For all other defendants, 20 years in prison
2
Narcotics conspiracy
21 U.S.C. § 846
ANDRE COFIELD (age 40)
PATRICK INNIS (age 39)
GARY DAVIS
RAMEL JACKSON
ANDREW BURRELL
QUENTIN STARKES
MATTHEW COOPER (age 26)
JUSTIN COOPER (age 29)
NAYSEAN CHAVIS (age 25)
HASSAN MUHAMMAD (age 20)
CHIMBA CARLOS (age 31)
WILLIAM RAY (age 27)
JEFFREY GOODRIDGE (age 30)
MICHAEL LAMAR (age 36)
LUIS GOMEZ (age 24)
Life in prison
Mandatory minimum of 10 years in prison
3
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
18 U.S.C. § 924(c )
GARY DAVIS
RAMEL JACKSON
ANDREW BURRELL
Life in prison
Mandatory minimum of 10 years in prison
4
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime
18 U.S.C. § 924(c )
WILLIAM RAY
Life in prison
Mandatory minimum of 5 years in prison
United States v. Algi Crawford, et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Bank fraud conspiracy
18 U.S.C. § 1349
ALGI CRAWFORD (age 35)
JONATHAN GRIFFIN (age 31)
30 years in prison
2
Bank fraud
18 U.S.C. § 1344
ALGI CRAWFORD
JONATHAN GRIFFIN
30 years in prison
United States v. Bernard Franklin
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Distribution of heroin
21 U.S.C. §§ 812, 841(a)(1), 841(b)(1)(C)
BERNARD FRANKLIN (age 32)
20 years in prison
United States v. James Green
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Possession with the intent to distribute crack cocaine
21 U.S.C. §§ 812, 841(a)(1), 841(b)(1)(B)
JAMES GREEN (age 49)
40 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
13 Indicted in Stolen Check SchemeRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged 13 individuals with conspiracy to commit bank fraud and bank fraud in an 18-count superseding indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service and Monica S. Weyler, Special Agent in Charge, U.S. Postal Service Office of Inspector General, announced the superseding indictment.
The superseding indictment alleges that beginning in September 2016 and continuing until August 2017, the defendants conspired to unlawfully negotiate checks and money orders stolen from the United States mail.
Those charged include:
Name
Age
City of Residence
Za Darrick J. Brooks
24
Columbus
Thomas P. Williams, Jr.
23
Pickerington
Charlee D. Mitchell
26
Dayton
Jordan L. McCorvey
24
Columbus
Neshaun M. T. Walls
22
Columbus
Milahn M. Wright
23
Columbus
Jamicia R. Gordon
22
Columbus
Courtney N. Bruce
23
Columbus
Donte L. Rippey-Young
23
Gahanna
Joshua O. Saunders
24
Columbus
Chevez M. Stanley
26
Columbus
Terry T. Reynolds
20
Columbus
Justin L. Brooks
25
Columbus
At least four of the defendants – Williams, Gordon, Bruce and Rippey-Young – were at one time employed by the United States Postal Service.
According to the superseding indictment, co-conspirators used Postal Service property to illegally access blue collection boxes in the greater metropolitan Columbus area.
Williams, Gordon and Bruce allegedly gave or sold Postal Service property in order to steal the checks and money orders and to aid and abet the other defendants in doing the same. Co-conspirators then allegedly cashed the stolen checks and money orders at ATMs and through bank mobile deposit apps.
Part of the conspiracy also allegedly involved creating counterfeit checks from the stolen checks.
Some of the defendants used social media, including Twitter and Facebook, to solicit individuals with bank accounts to participate in the conspiracy and permit the deposit of stolen checks into their bank accounts in exchange for money.
“It is estimated that the defendants caused a loss of at least $150,000 to financial institutions,” U.S. Attorney Glassman said.
Conspiracy to commit bank fraud and bank fraud are each crimes punishable by up to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Postal Inspection Service and Office of Inspector General, and Assistant United States Attorney Jonathan J.C. Grey, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #
Tuesday 10 October 2017
Youth Minister from Las Cruces Arrested on Federal Child Sexual Exploitation and Pornography ChargesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, announced the filing of federal child sexual exploitation and pornography charges against Stephen Mendoza Arellano, an ordained minister for the Apostolic Assembly Church who serves as the Church’s District of New Mexico Youth President.
Arellano, 30, of Las Cruces, N.M., made his initial appearance this morning in federal court on a criminal complaint charging him with attempted production of child pornography, enticement of a child to engage in sexual activity, and travel to meet a minor to engage in sexual conduct. He remains in federal custody pending a preliminary hearing and a detention hearing, which have not yet been scheduled.
HSI Special Agents arrested Arellano on Oct. 6, 2017, on the criminal complaint, which alleges that Arellano committed the crimes charged between May 2017 and Aug. 2017 in Dona Ana County, N.M., and elsewhere. According to the criminal complaint, Arellano traveled from Las Cruces to El Paso, Tex., with the intention of having illicit sexual contact with the child victim who was 15-years-old when he began contacting her.
According to the complaint, Arellano is a National Ordained Minister for the Apostolic Assembly Church, holds the title of District of New Mexico Youth President, and is a member of the same church as the victim. HSI initiated the investigation into Arellano after receiving a report from the parents of Arellano’s victim. The criminal complaint alleges that Arellano began communicating with the victim in a sexually explicit manner in May 2017, when the victim was fifteen-years-old. It further alleges that Arellano sent nude photos of himself to the victim and requested nude photos of the victim via cellular phone messaging between May 2017 and Aug. 2017. The complaint also alleges that Arellano engaged in sexual activity with the victim in July and Aug. 2017. The investigation allegedly revealed that Arellano was aware of the victim’s age because he assisted in making a video for the victim’s Sweet 16 birthday party.
If convicted on the attempted production of child pornography charge, Arellano faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison. If convicted on the enticement charge, Arellano faces a mandatory minimum penalty of ten years and a maximum of life in federal prison. If convicted on the traveling to engage in illicit sexual conduct charge, Arellano faces a maximum of 30 years in federal prison. The charges in the complaint are merely accusations and Arellano is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of HSI and the Las Cruces Police Department. The case is being prosecuted by Assistant U.S. Attorney Marisa A. Ong as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Youngstown man sentenced for trafficking cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Dennis Lee Artis, of Youngstown, Ohio was sentenced today to 15 months incarceration for distributing cocaine, Acting United States Attorney Betsy Steinfeld Jividen announced.
Artis, age 52, pled guilty to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location” in September 2017. Artis admitted to selling cocaine near Allison Elementary School in Hancock County on April 5, 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Hancock/Brooke/Weirton Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.Woman Pleads Guilty to Fraudulently Obtaining More Than 8,000 Hydrocodone PillsRead the Press Release
GREENSBORO, N.C. – A Burlington resident pleaded guilty on October 4, 2017, in United States District Court before the Honorable N. Carlton Tilley, Jr., to controlled substance offenses and other crimes, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
HEATHER SMITH ELLIOTT, 41, of Burlington, North Carolina, pleaded guilty to charges in relation to a scheme to fraudulently obtain over 8,000 10-325 mg hydrocodone pills from CVS pharmacies in Alamance and Guilford Counties through use of forged and fraudulent prescriptions appearing to be issued by a Duke University Medical Center neurosurgeon. ELLIOTT pleaded guilty to two counts of obtaining hydrocodone pills, a Schedule II controlled substance, by use of forged and fraudulent prescriptions, in violation of Title 21, United States Code, Section 843, one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Documents filed with the Court show that ELLIOTT forged and counterfeited approximately 132 prescriptions for hydrocodone. Each of these forged and counterfeit prescriptions bore the name and DEA number of a neurosurgeon at Duke University Medical Center in Durham, North Carolina. ELLIOTT made use of altered actual Duke University Medical Center prescription forms to create fraudulent prescriptions for hydrocodone appearing to be issued by the Duke neurosurgeon for herself, as well as for friends and family members of ELLIOTT including an ex-boyfriend, a former employee, her former husband, her son, and a neighbor. Neither ELLIOTT nor any of these persons were patients of the Duke neurosurgeon, nor had he prescribed any medications to them. ELLIOTT retained and converted the hydrocodone pills to her own use and purpose. ELLIOTT also made use of a fraudulently obtained Bank of America credit card in the name of her former boyfriend to pay for at least one of the false prescriptions.
Obtaining a controlled substance through use of a fraudulent prescription is punishable by up to four years in federal prison. Wire fraud is punishable by up to twenty years in federal prison. Aggravated identity theft is punishable by two years in federal prison consecutive to any other prison sentences imposed by the court. ELLIOTT also faces a fine of up to $250,000 and a term of supervised release of not less than three years. Sentencing is scheduled for January 18, 2018, at 9:30 a.m. in Greensboro, Courtroom #2.
The United States Postal Inspection Service, United States Treasury Office of Inspector General Task Force, and the City of Burlington Police Department participated in the investigation. Special Assistant United States Attorney Kennedy Gates and Assistant United States Attorney Frank Joseph Chut, Jr. prosecuted the case.
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Vietnamese National Extradited on Charges of Wire Fraud, Identity Theft and Money Laundering SchemeRead the Press Release
BOSTON – Tuan Dinh Nguyen, 29, a Vietnamese national living in Melbourne, Australia, appeared in federal court in Boston today on charges that he participated in an international scheme to use stolen payment card data and personally identifiable information to purchase and re-sell hundreds of thousands of dollars’ worth of consumer goods.
In August 2015, a federal grand jury in Boston indicted Nguyen on one count of wire fraud conspiracy, one count of money laundering conspiracy, 13 counts of money laundering and aiding and abetting, and one count of aggravated identity theft. Nguyen was arrested in Australia in June 2017, and on Oct. 5, 2017, he was extradited to the United States.
According to the indictment, between December 2007 and December 2013, Nguyen and at least three others conspired to use stolen payment card data and personally identifiable information to purchase consumer goods online and to re-sell those items on auction websites, including Amazon, eBay, and Buy.com; they then wired the proceeds overseas.
It is alleged that Nguyen and his co-conspirators created fraudulent accounts on multiple auction websites, or used stolen usernames and passwords to take over subscribers’ legitimate accounts. They then posted popular goods for sale at a discounted price, including Apple merchandise, electronics, personal care items and books. However, Nguyen and his co-conspirators did not own or otherwise have these goods to sell. Instead, when customers of the auction websites purchased and paid for these items, Nguyen and his co-conspirators used stolen payment card and personally identifiable information to buy the items from Walmart.com or other e-commerce websites, and then shipped the items to the auction website customers, who never knew that the items they received had been purchased with stolen credit cards and re-sold to them at discounted prices.
To obtain the proceeds of the scheme, Nguyen and his co-conspirators allegedly recruited U.S. residents to withdraw and wire overseas the money that the unwitting customers had paid through the auction websites. In total, Nguyen and his coconspirators stole and re-sold approximately $500,000 in consumer goods.
The charges of wire fraud conspiracy, money laundering, and money laundering conspiracy provide for a sentence of no greater than 20 years in prison, three years of supervised release, forfeiture and restitution. The wire fraud charge carries a fine of up to $250,000, or twice the conspiracy’s gain or loss to any victim; and the money laundering conspiracy charge carries a fine of up to $500,000, or twice the amount of the money laundered. The aggravated identity theft charge provides for a mandatory two-year sentence to be served consecutively to any sentence imposed for the wire fraud conspiracy charge. Sentences are imposed by a U.S. district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. Australia’s Attorney-General’s Department, the Australian Federal Police, and the U.S. Department of Justice’s Office of International Affairs provided assistance in securing Nguyen’s extradition to the United States. Assistant U.S. Attorney Seth Kosto of Weinreb’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Verona Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH – One former resident of Verona, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Richard Anthony Burke, age 29, as the sole defendant.
According to the indictment, on November 12, 2016 Richard possessed with intent to distribute a quantity of fentanyl. On February 3, 2017, Burke, a convicted felon, was also in possession of a firearm. As a convicted felon, Burke is prohibited by federal law from possessing a firearm.
The law provides for a maximum total sentences of not more than 20 years and a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the criminal history of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Pittsburgh Office of the Drug Enforcement Agency and Wilkinsburg Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.