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22 November 2017
Jailer Pleads Guilty to Abusing Inmate at DeKalb County JailRead the Press Release
Dwight Hamilton, a former correctional officer at the DeKalb County Jail, pleaded guilty on Monday to abusing a female inmate by tasing her without any legitimate justification. Leonard Dreyer, Mr. Hamilton’s former supervisor at the DeKalb County Jail, previously pleaded guilty to attempting to obstruct the federal investigation into Mr. Hamilton’s use of excessive force by making false statements to an FBI agent.
According to the charges and other information presented in court, Dwight Hamilton worked as a sergeant at the DeKalb County Jail, and on November 1, 2011, he responded to the medical floor of the jail when a female inmate, T.P., asked to speak to a supervisor because her family visitation had been unexpectedly cancelled. Rather than explain the situation, Hamilton tased T.P. until she defecated on herself. Hamilton, who had been trained on proper taser usage, admitted he knew that what he was doing was wrong and continued anyway. As a result of the tasing, Inmate T. P. suffered permanent taser burns to her breast.
“Any correctional officer who violates an individual’s right to due process and protection from unreasonable force will be held accountable under the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will continue to work to ensure that the civil rights of all individuals will be protected.”
“Officers who have sworn to maintain security and protect the inmates inside our county jails have a difficult job but despite challenges, most do their work in a professional manner,” said U.S. Attorney Byung J. “BJay” Pak. “However, Hamilton ignored that oath and unlawfully punished an inmate by inflicting severe pain and causing a permanent injury. Hamilton’s conduct was clearly a violation of the inmate’s constitutional rights that warranted this criminal prosecution.”
“Monday’s guilty plea in federal court will clearly begin the process of holding former Dekalb County Corrections Officer Hamilton responsible for his criminal conduct involving the tasing of a female inmate,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “The FBI continues to play a significant role in investigating credible allegations of law enforcement misconduct, to include those occurring within a correctional facility, and presenting them, when appropriate, for federal prosecution as was the case with Mr. Hamilton.”
Dwight Hamilton, 53, of Atlanta, Georgia, will be sentenced by U.S. District Court Judge Timothy C. Batten on February 8, 2018.
This case was investigated by the Atlanta Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Brent Alan Gray of the Northern District of Georgia, and Trial Attorney Christopher Perras of the Civil Rights Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Irish National Arrested; Charged with Improper Use of A PassportRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Adam Doumbouya, 30, of Ireland, was arrested and charged by criminal complaint with improper use of another person’s passport and making a false statement to law enforcement. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that, according to the complaint, the defendant attempted to enter the United States at the Amtrak Train Station Port of Entry in Niagara Falls on November 19, 2017. Doumbouya presented an Irish passport bearing the name Mariame Kourouma to a Customs and Border Protection Officer. The defendant also told the officer she was traveling to New York City to visit relatives.
An officer entered the defendant’s fingerprints into a Fingerprint Identification System and determined that she was in fact Adam Doumbouya, a citizen of Ireland, and not Mariame Kourouma. The investigation further revealed that the defendant was previously denied entry to the United States at the Rouses Point, New York Port of Entry, and had been refused a visa at the United States consulate in Dublin.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing scheduled for November 28, 2017, at 9:30 a.m.The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Illegal Alien Sentenced to 108 Months for Illegal Reentry and Gun ViolationRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that United States District Judge William H. Steele sentenced Pedro Quintero-Enriques, a.k.a. Miguel Angel Quintero, 37, from Michoacán, Mexico, to 108 months imprisonment for illegal reentry into the United States and for being a felon in possession of firearms. The judge ordered that Quintero-Enriques pay a $200 special assessment, undergo three years of supervised release after completing his prison term, and participate in drug and/or alcohol treatment as directed by the U.S. Probation Office.
Quintero-Enriques is a Mexican national and convicted felon who illegally reentered the United States on numerous occasions. In 2002, he was convicted in the United States District Court for the Southern District of Texas of improper entry. On January 23, 2012, Quintero-Enriques was deported. He later reentered the country and in October 2013, a federal grand jury for the Southern District of Alabama indicted the defendant for illegal reentry. In January 2014, Judge Steele sentenced Quintero-Enriques to time served and he was again deported. Notwithstanding his previous deportations, Quintero-Enriques unlawfully returned to the U.S. several more times. He was removed on August 3, 2014 and on November 26, 2014. Quintero-Enriques’s criminal history includes domestic violence. Federal law prohibits him from possessing firearms.
On October 16, 2016, Baldwin County Sheriff’s deputies went to 14640 Woodhaven Dairy Rd. in Summerdale, Alabama in response to an alleged domestic violence incident. Upon arrival at the home, Deputy Mctigue and Sgt. Burke found two firearms in plain view in a blue Ford F-150 truck parked underneath an awning. The awning was connected to the trailer. The deputies spoke to Quintero-Enriques, who allowed them to enter his home. Inside, Sgt. Burke saw in plain view marijuana and an unknown white residue on a small scale. The scale was on the kitchen counter directly above the dishwasher. Through the back window, Deputy Harville saw two large scales in the rear room of the trailer.
The deputies Mirandized Quintero-Enriques and asked him about the drug paraphernalia. He denied responsibility for the paraphernalia. Deputies asked Quintero-Enriques for consent to search his home. Quintero-Enriques granted consent. When deputies opened the dishwasher, they found a large amount of narcotics inside a plastic container along with a debit card in the defendant’s name. After separating the items in the container, deputies found a large amount of methamphetamine in separate bags. The container contained a white powdery substance that bore a resemblance to cocaine. The container also contained a small bag with a yellow hardened powder substance resembling crack cocaine, baking soda, latex gloves, cooking utensils, and other items used to make crack cocaine.
The deputies noticed that Quintero-Enriques’s demeanor changed when they opened the dishwasher. He became restless and appeared depressed. Deputy Harville asked Quintero-Enriques if he believed the deputies would find the items in the dishwasher, he responded: “No.”
Sgt. Burke and Deputy Mctigue secured the weapons located in the F-150. The firearms were a pump shotgun and a Ruger mini-14 rifle. The shotgun was loaded and contained four shells.
Deputy Mctigue and Deputy Harville continued to search the home for contraband. Dep. Mctigue found a large bag containing an unknown powdered substance on top of the dresser in the master bedroom. The deputies moved to the back room where Deputy Harville originally saw two large scales. There were pieces of cut bags located on the floor next to the scales. There was a packaging machine on the kitchen counter near the entry to the back room. There were several notebooks in the home with Spanish writing; one notebook was in the dishwasher where deputies found the narcotics. In his wallet, Quintero-Enriques had two North Carolina I.D. cards that appeared fake and approximately $1,785 in cash. On a table, Deputy Harville found a small bag of a white powdery substance. The substance resembled cocaine. The deputies arrested Quintero-Enriques and transported him to jail. When interviewed about his immigration status, Quintero-Enriques admitted to being in the country unlawfully and illegally.
In February 2017, a federal grand jury for the Southern District of Alabama indicted Quintero-Enriques for illegal reentry, being a felon in possession of firearms, and possessing methamphetamine and crack cocaine with intent to distribute / manufacture the narcotics. According to two DEA chemical analysis reports, there were approximately 211.9 grams of pure methamphetamine and approximately 7.33 grams of crack cocaine in Quintero-Enriques’s home. On May 2, 2017, the defendant pleaded guilty before Judge Steele to illegally reentering the country and to the firearms offense.
The Baldwin County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, and the Drug Enforcement Administration investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Homestead Woman Sentenced to Prison for Conspiring to Distribute Heroin, Launder ProceedsRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 18 months’ imprisonment on her convictions of conspiracy to possess with intent to distribute and distribute a quantity of heroin and conspiracy to commit money laundering, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence yesterday on Brianna Timber, age 23, of Duquesne, PA.
According to information presented to the court, from April through August 2016, Timber was intercepted over a DEA wiretap conspiring with others to possess with intent to distribute and distribute heroin. She also conspired with others to launder the proceeds of the heroin trafficking conspiracy.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Timber. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Grand Jury Indicts Dallas Man Who Fired Multiple Shots at a Vehicle on Firearm and Drug ChargesRead the Press Release
DALLAS — A federal grand jury returned a two-count indictment earlier this month charging Freddie Thomas Gilbert, 33, of Dallas, Texas, with offenses related to the October 29, 2017 shooting of a vehicle in Kaufman County, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
The indictment charges Gilbert with one count of possession of a firearm by a felon and one count of possession with intent to distribute a controlled substance. Gilbert will remain in custody pending further court hearings.
According to the complaint affidavit filed in the case and unsealed today, on October 29, 2017 law enforcement officials in Kaufman County received a call that the driver of a black Hyundai Elantra had fired a round of ammunition at their vehicle in the area of United States Highway 80 and County Road 212 in Kaufman County. Law enforcement officials were able to locate the vehicle and initiated a traffic stop. A vehicle pursuit ensued, reaching speeds up to one hundred and ten miles per hour when the vehicle refused to stop. The vehicle eventually became involved in a vehicle accident with another vehicle on the roadway. Gilbert was identified as the driver of the black Hyundai Elantra.
Subsequent to Gilbert’s arrest, he told law enforcement officials that the body of a girl was in the trunk of the vehicle. Law enforcement officials found a female victim in the trunk of the vehicle who had a visible gunshot wound to the head. Law enforcement officials also found a Taurus .38 caliber revolver in the side-pocket of the driver’s side door and a detectable amount of cocaine.
Prior to October 29, 2017, Gilbert had been convicted in the state of Louisiana and served jail time for felony drug offenses.
An indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, Gilbert faces up to 10 years in federal prison for being a convicted felon in possession of a firearm, and a maximum penalty of up to 20 years in federal prison and a $1,000,000 fine for the possession of a controlled substance count.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, Kaufman County Sheriff’s Office and the Forney Police Department conducted the investigation. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Former jail Sergeant pleads guilty to abusing inmate at DeKalb County JailRead the Press Release
ATLANTA – Former DeKalb County corrections officer Dwight Hamilton has pleaded guilty to abusing a female inmate by tasing her without justification. Leonard Dreyer, Hamilton’s former supervisor at the jail, previously pleaded guilty to attempting to obstruct the federal investigation into Hamilton’s use of excessive force by making false statements to the FBI.
“Officers who have sworn to maintain security and protect the inmates inside our county jails have a difficult job but despite challenges, most do their work in a professional manner,” said U.S. Attorney Byung J. “BJay” Pak. “However, Hamilton ignored that oath and unlawfully punished an inmate by inflicting severe pain and causing a permanent injury. Hamilton’s conduct was clearly a violation of the inmate’s constitutional rights that warranted this criminal prosecution.”
“Any correctional officer who violates an individual’s right to due process and protection from unreasonable force will be held accountable under the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will continue to work to ensure that the civil rights of all individuals will be protected.”
“This guilty plea in federal court will clearly begin the process of holding former Dekalb County Corrections Officer Hamilton responsible for his criminal conduct involving the tasing of a female inmate. The FBI continues to play a significant role in investigating credible allegations of law enforcement misconduct, to include those occurring within a correctional facility, and presenting them, when appropriate, for federal prosecution as was the case with Mr. Hamilton,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Pak, the charges and other information presented in court: Dwight Hamilton worked as a sergeant at the DeKalb County Jail, and on November 1, 2011, he responded to the medical floor of the jail when a female inmate, T.P., asked to speak to a supervisor because her family visitation had been unexpectedly cancelled. Rather than explain the situation, Hamilton tased T.P. until she defecated on herself.
Hamilton, who had been trained on proper taser usage, admitted he knew that what he was doing was wrong and continued anyway. As a result of the tasing, Inmate T. P. suffered permanent taser burns to her breast.
Sentencing for Dwight Hamilton, 53, of Atlanta, Georgia, will be February 8, 2018, before U.S. District Court Judge Timothy C. Batten.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Brent Alan Gray and Trial Attorney Christopher Perras of the Department of Justice Civil Rights Division are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former WellCare General Counsel Sentenced for False Statements to the Florida Medicaid ProgramRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced former WellCare General Counsel, Thaddeus M.S. Bereday (52, Tampa), to six months in federal prison, followed by a three-year term of supervised release that includes one year of home confinement, for making a false statement to the Florida Medicaid Program. The Court also ordered him to pay a $50,000 fine.
Bereday pleaded guilty on June 26, 2017.
A federal grand jury in the Middle District of Florida returned an indictment on March 2, 2011, charging five former WellCare Health Plans, Inc. (“WellCare”) executives (Todd S. Farha, Paul L. Behrens, William L. Kale, Peter E. Clay, and Bereday) with four counts of healthcare fraud, four counts of making false statements relating to healthcare matters, and conspiracy to commit those crimes and defraud the United States. In addition, Clay was charged with two counts of making false statements. The fraud counts alleged that Bereday and his co-defendants had executed and attempted to execute both a scheme to defraud the Florida Medicaid Program through Florida’s Agency for Health Care Administration (“AHCA”), and a scheme to obtain, by means of false and fraudulent pretenses and representations, money under the custody or control of the program.
WellCare operates health maintenance organizations (AHMOs@) in several states targeted to government-sponsored health care benefit programs like Medicaid. Two WellCare HMOs operating in Florida, StayWell and Healthease, contracted with the AHCA to provide Florida Medicaid Program recipients with an array of services, including behavioral health services.
In 2002, the State of Florida enacted a statute requiring Florida Medicaid HMOs to expend 80% of the Medicaid premiums paid for certain behavioral health services on the provision of those services. If the HMO expended less than 80% of the premiums, the difference was required to be returned to the AHCA. The defendants in this case falsely and fraudulently schemed to submit inflated expenditure information in the company's annual reports to the AHCA in order to reduce the WellCare HMOs= contractual payback obligations for behavioral health care services.
A federal jury found Bereday’s co-defendants guilty on June 10, 2013. For their respective roles in the scheme, in May 2014, Judge Moody sentenced Farha to 36 months in prison; Behrens to 24 months’ imprisonment; and Kale to 1 year and 1 day in prison. Clay was sentenced to serve 5 years’ probation. The defendants appealed their convictions, which were all affirmed by the Eleventh Circuit in August 2016.
On May 5, 2009, the United States filed related charges in an Information and Deferred Prosecution Agreement ("DPA") against WellCare. Pursuant to that DPA, WellCare was required to pay $40 million in restitution, forfeit another $40 million to the United States, and cooperate with the government=s criminal investigation. The company complied with all of the requirements of the DPA. As a result, the Information was later dismissed by the Court following a government motion.
This case was investigated by U.S. Health and Human Services – Office of Inspector General and the Federal Bureau of Investigation, along with the Florida Medicaid Fraud Control Unit. It was prosecuted by Assistant United States Attorneys Jay G. Trezevant and Cherie L. Krigsman, DOJ Senior Litigation Counsel John A. Michelich, and Special Assistant United States Attorney John Bowers.
Former Virginia Tech Professor Charged in Federal IndictmentRead the Press Release
Roanoke, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke has charged a former engineering professor at Virginia Tech in an indictment returned yesterday, United States Attorney Rick A. Mountcastle announced.
Yiheng Percival Zhang, 46, of Blacksburg, Va., is charged with one count of conspiring to defraud the United States, three counts of making false statements within the jurisdiction of the United States, and three counts of making false claims to the United States.
Zhang, a former professor of Biological Systems Engineering at Virginia Tech, was also the Chief Scientific Officer of Cell-Free Bioinnovations (CFB). According to the indictment, CFB applied for grant funding available through the National Science Foundation (NSF) under the premise that the money would be used for research on certain projects. However, it is alleged that Zhang intended for the grant funds to be used for other purposes.
The indictment alleges that Zhang, in an email to a CFB employee, stated:
“What we expect here is to get this free money and use half of money to do what you want do to do – make sweeteners. Another half will be used to pay VT graduate students to finish this project.”
The grants that are the subject of the indictment total $600,000.
The case is being investigated by the National Science Foundation – Office of Inspector General, the Department of Energy- Office of Inspector General and the Federal Bureau of Investigation. The Blacksburg Police Department and the Virginia Tech Police Department provided assistance in the execution of search warrants. The case is being prosecuted by Assistant United States Attorney Randy Ramseyer
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Pit Boss, Blackjack Dealer, and a Player Sentenced in Federal Court for Cheating Conspiracy at Dakota Sioux CasinoRead the Press Release
United States Attorney Randolph J. Seiler announced that three individuals have been sentenced in federal court for their roles in a Conspiracy Involving Theft by Employees of a Gaming Establishment on Indian Land.
Lito Banbilla Bolocon, age 44, from Sisseton, South Dakota, and Jordon Anthony Rondell, age 29, from Lennox, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on November 20, 2017, and each received a sentence of six months in custody and were ordered to pay $8,700 in restitution to the gaming establishment. Jeremy Kris Brown, age 43, from Sisseton, was sentenced to two years of probation and ordered to pay $2,000 in restitution for his role in the conspiracy.
The Dakota Sioux Casino (“DSC”) is a gaming establishment located approximately five miles north of Watertown, in Codington County, South Dakota. The DSC is also located on the Lake Traverse Indian Reservation and is operated by the Sisseton Wahpeton Oyate Sioux Tribe.
According to the defendants’ plea agreements, Bolocon worked at the DSC as a pit boss, and Brown worked as a blackjack dealer. Rondell was a customer of the DSC whom frequently played blackjack. In December 2015 and through January 1, 2016, Bolocon, Brown, Rondell, and others conspired to enrich themselves by unlawfully obtaining gaming chips and money from the DSC. Specifically, in December 2015, the defendants devised a plan to cheat the DSC of monies derived during the gambling operations taking place on New Year’s Eve 2015, and into January 1, 2016. The agreement was for Rondell to unlawfully make a large sum of money from illegitimate winnings paid by Brown, and Rondell would then pay-off the others for their participation. Rondell cashed-out approximately $10,000 from the DSC after playing at Brown’s blackjack tables, which were supervised by Bolocon.
Bolocon, as pit boss during that night and early morning, would oversee Brown’s dealing to Rondell. Bolocon knew about and allowed the cheat to proceed throughout the night of December 31, 2015, and early morning of January 1, 2016.
The investigation is being conducted by the Federal Bureau of Investigation, the United States Attorney’s Office, and the Sisseton-Wahpeton Oyate Sioux Tribe’s Gaming Commission. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Pharmacy Compliance Director Pleads Guilty to Introducing Adulterated Drugs into Interstate Commerce and Conspiracy to Defraud the United StatesRead the Press Release
The former compliance director of an Indiana compounding pharmacy pleaded guilty to introducing adulterated drugs into interstate commerce and conspiracy to defraud the United States by obstructing the Food and Drug Administration’s (FDA) lawful functions, the Department of Justice announced today.
Caprice R. Bearden, 63, of Carmel, Indiana, pleaded guilty in the Southern District of Indiana to one count of conspiracy to defraud the United States, three misdemeanor counts of introducing an adulterated drug in interstate commerce, and six misdemeanor counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Bearden was the Director of Compliance for Pharmakon Pharmaceuticals Inc. (Pharmakon). Pharmakon compounded drugs at a facility in Noblesville, Indiana, for customers in various states.
Chief U.S. District Judge Jane E. Magnus-Stinson accepted Bearden’s plea. A date for sentencing has not been sent yet.
"This guilty plea demonstrates the Justice Department’s commitment to protecting patients and ensuring that compounded drugs are safe,” said Principal Deputy Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Distributing out-of-specification drug products poses a serious risk of harm to patients. The Justice Department will not tolerate efforts to impede FDA’s ability to uncover these types of safety concerns.”
“This defendant distributed serious drugs to hospitals in Indiana and around the country, knowing that the drugs were significantly under or over the strength they were supposed to be,” said Josh Minkler, United States Attorney for the Southern District of Indiana. “She put greed and the reputation of her company ahead of the health and safety of our most vulnerable patient populations.”
As part of her plea agreement, Bearden acknowledged that during 2014 and 2016 FDA inspections, she lied about Pharmakon’s never having received any out-of-specification drug potency test results. Bearden also acknowledged that she knowingly conspired with another individual to defraud the United States by obstructing the lawful functions of the FDA. In addition, she acknowledged that it was the purpose of the conspiracy to prevent the loss of revenue that would result from customers’ and FDA’s knowledge of Pharmakon’s having distributed numerous compounded drugs that were not the strength purported on the drugs’ labeling.
“This is an egregious example of how harmful conduct can result in risk to patients. The disregard for the law resulted in the injury of infants from poorly compounded, super potent morphine products,” said FDA Commissioner Scott Gottlieb, M.D. “We will not tolerate substandard practices, like failing to meet federal manufacturing standards like those found at Pharmakon, that put patients at risk and will aggressively pursue individuals that put profit ahead of patient safety.”
The conspiracy charge to which Bearden pleaded guilty carries a statutory maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense. The misdemeanor charges of distributing an adulterated drug in interstate commerce and adulterating drugs while held for sale after shipment of a drug component in interstate commerce each carry a statutory maximum punishment of one year in prison and a fine of $100,000 or twice the gross gain or gross loss from the offense.
Principal Deputy Assistant Attorney General Readler and U.S. Attorney Minkler commended the FDA Office of Criminal Investigations, which conducted the investigation. Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Cindy J. Cho, of the U.S. Attorney’s Office for the Southern District of Indiana, are prosecuting the case.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.
Former IRS Employee Sentenced on Health Care Fraud ChargeRead the Press Release
Lynchburg, VIRGINIA – A former employee of the Internal Revenue Service was sentenced yesterday in the United States District Court for the Western District of Virginia in Lynchburg on a federal health care fraud charge related to his misuse of government health insurance benefits, United States Attorney Rick A. Mountcastle announced.
Ronald Lewis Hooper, 69, of Lynchburg, was sentenced yesterday to 20 months in federal prison to be followed by three years of supervised release. He was also ordered to pay $549,607 in restitution. Hooper previously pleaded guilty to one count of health care fraud.
According to evidence presented at a previous hearing by Assistant United States Attorney Jennie L. M. Waering, should this case have gone to trial, the United States would have proven that Hooper misused his government health benefits to seek opiate drugs such as Nubian, Phenergan, and others, at various emergency departments. The United States would have proven that Hopper began seeking these drugs at various emergency departments only after his primary physician began to restrict the number of injections he would provide to Hooper to two per week. Hooper sought additional injections at emergency departments at hospital facilities throughout Virginia, West Virginia, North Carolina, South Carolina, Georgia and Florida.
Between December 2002 and December 2012, Hooper received services at hospitals and emergency rooms on approximately 1,700 separate occasions seeking injections of Nubian and Phenergan, incurring more than $824,000 in fraudulent medical payments.
The investigation of the case was conducted by the Office of Personnel Management, the Federal Bureau of Investigation and the Blue Cross Blue Shield Special Investigations Unit. Assistant United States Attorney Jennie L. M. Waering prosecuted the case for the United States.
Former General Counsel of Company That Operates Health Maintenance Organizations in Several States Sentenced to Prison for Role in $35 Million Health Care Fraud SchemeRead the Press Release
The former general counsel of a company that operates health maintenance organizations in several states was sentenced to six months in prison today for his role in a $35 million health care fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Steven Muldrow of the Middle District of Florida, Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Field Office, Special Agent in Charge Eric W. Sporre of the FBI’s Tampa Field Office and the Florida Attorney General’s Medicaid Fraud Control Unit made the announcement.
Thaddeus M.S. Bereday, 52, of Tampa, Florida, was sentenced by U.S. District Judge James S. Moody of the Middle District of Florida, who also ordered Bereday to serve three years of supervised release that includes one year of home confinement following his prison term and to pay a fine in the amount of $50,000. Bereday pleaded guilty on June 27, to one count of making a false statement in connection with health care matters.
According to admissions made in connection with his guilty plea, Bereday served in several positions, including as general counsel, with WellCare Health Plans Inc. (WellCare), a publicly traded corporation that operates health maintenance organizations (HMOs) in several states targeted to government-sponsored health care benefit programs such as Medicaid. Two WellCare HMOs operating in Florida, StayWell and Healthease, contracted with the Agency for Health Care Administration (AHCA), the Florida agency that administers the Medicaid program, to provide Florida Medicaid program recipients with an array of services, including behavioral health services.
In 2002, Florida enacted a statute that required Florida Medicaid HMOs to expend 80 percent of the Medicaid premium they received for certain behavioral health services on the actual provision of those services to beneficiaries. If the HMO expended less than 80 percent of the premium, the law required the excess funds to be returned to the Medicaid Program. Bereday and four other defendants were charged in an indictment that alleged the ways in which the defendants falsely and fraudulently schemed to submit inflated expenditure information in the company’s annual reports to AHCA in order to reduce the WellCare HMOs’ contractual payback obligations for behavioral health care services.
As part of his guilty plea, Bereday admitted that he, along with others, knowingly and willfully caused the submission of a false expenditure report for calendar year 2006 to the Florida Medicaid Program on behalf of Healthease, a WellCare HMO that was under contract to provide health care services to Medicare beneficiaries in Florida in 2006.
On May 5, 2009, the United States reached a resolution with WellCare on related charges. Pursuant to a Deferred Prosecution Agreement (DPA), WellCare was required to pay $40 million in restitution, forfeit another $40 million to the United States and cooperate with the government’s criminal investigation. The company complied with all of the requirements of the DPA. As a result, the criminal Information was later dismissed by the Court following a government motion.
After a 13-week trial in June 2013, a jury found the four other defendants guilty for their roles in a scheme to defraud the Florida Medicaid Program of more than $35 million. Todd S. Farha of Tampa, Florida, former WellCare chief executive officer, was convicted of two counts of health care fraud; Paul L. Behrens of Odessa, Florida, former WellCare chief financial officer, was convicted of two counts of making false statements relating to health care matters and two counts of health care fraud; William L. Kale of Oldsmar, Florida, former vice president of Harmony Behavioral Health Inc. (a wholly owned subsidiary of WellCare), was found guilty of two counts of health care fraud; and Peter E. Clay of Wellesley, Massachusetts, former WellCare vice president of medical economics, was found guilty of making false statements to a law enforcement officer. In May 2014, Judge Moody sentenced Farha to 36 months in prison; Behrens to 24 months in prison; and Kale to one year and one day in prison. Clay was sentenced to serve 5 years’ probation. The defendants appealed their convictions, which were all affirmed by the Eleventh Circuit in August 2016.
This case was investigated by the HHS-OIG, the FBI and the Florida Attorney General's Medicaid Fraud Control Unit. Senior Litigation Counsel John A. Michelich of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jay G. Trezevant and Cherie Krigsman of the Middle District of Florida prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former Federal Penitentiary Lieutenant pleads guilty to abusing inmate and attempting to cover it upRead the Press Release
ATLANTA – Gregory McLeod, a former correctional officer with the rank of lieutenant at the U. S. Penitentiary in Atlanta, has pleaded guilty to abusing an inmate by punching him in his face without justification. McLeod also admitted that he intentionally obstructed a federal investigation into the matter by writing a false incident report.
“Working in a correctional facility is stressful and often dangerous work,” said U.S. Attorney Byung J. “BJay” Pak. “However, McLeod made an unnecessary and unconstitutional assault on an inmate, and then filed a false report to cover it up. An abuse of the power by any law enforcement officer is unacceptable.”
“A correctional officer should never resort to violence or violate an inmate’s constitutional right to protection from unreasonable force, no matter the circumstance,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will not tolerate any abuse of an individual’s civil rights under the law, or any effort to obstruct justice.”
“No correctional officer is above the law,” stated James F. Boyersmith, Assistant Special Agent-in-Charge of the Department of Justice (DOJ) Office of the Inspector General’s (OIG) Miami Field Office. “The DOJ OIG takes allegations of civil rights violations and false statements very seriously. We appreciate the diligent efforts of our fellow law enforcement partners that assisted us in investigating this matter.”
“This guilty plea of former U.S. Bureau of Prisons Lieutenant McLeod was triggered by key and credible allegations of inmate abuse by prison staff. While the FBI would like to remind the public that the vast majority of those working within our nation’s correctional facilities consistently conduct themselves admirably under often harsh conditions, the FBI does have a duty to investigate and present for prosecution those corrections officers or staff members who abuse their authority and positions,” David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Pak, the charges and other information presented in court: McLeod, who worked as a supervisor at the prison, strip-searched an inmate in the McLeod’s office in front of three other correctional officers. McLeod admitted that after the inmate complained that the strip-search was taking too long, he punched the inmate in his face without justification. McLeod also admitted that after the assault, he wrote an incident report and a separate memorandum about the encounter in which he falsely claimed that the inmate swung a closed fist at him and attempted to assault other officers before the inmate was restrained.
Sentencing for Gregory McLeod, 44, of Atlanta, Georgia, will be on February 20, 2018, before U.S. District Court Judge Steve C. Jones.
This case is being investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation.
Assistant U.S. Attorney Brent Alan Gray and Trial Attorney Mary J. Hahn of the Department of Justice Civil Rights Division are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Former Federal Penitentiary Lieutenant Pleads Guilty to Abusing Inmate and Attempting to Cover it UpRead the Press Release
Gregory McLeod, 44, of Atlanta, Georgia, a former correctional officer with the rank of lieutenant at the U. S. Penitentiary in Atlanta, pleaded guilty today to abusing an inmate by punching him in his face without any justification. McLeod also admitted that he intentionally obstructed a federal investigation into the matter by writing a false incident report.
“A correctional officer should never resort to violence or violate an inmate’s constitutional right to protection from unreasonable force, no matter the circumstance,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will not tolerate any abuse of an individual’s civil rights under the law, or any effort to obstruct justice.”
“Working in a correctional facility is stressful and often dangerous work,” said U.S. Attorney Byung J. “BJay” Pak. “However, McLeod made an unnecessary and unconstitutional assault on an inmate, and then filed a false report to cover it up. An abuse of the power by any law enforcement officer is unacceptable.”
“No correctional officer is above the law,” said James F. Boyersmith, Assistant Special Agent-in-Charge of the Department of Justice (DOJ) Office of the Inspector General’s (OIG) Miami Field Office. “The DOJ OIG takes allegations of civil rights violations and false statements very seriously. We appreciate the diligent efforts of our fellow law enforcement partners that assisted us in investigating this matter.”
“This guilty plea of former U.S. Bureau of Prisons Lieutenant McLeod was triggered by key and credible allegations of inmate abuse by prison staff,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “While the FBI would like to remind the public that the vast majority of those working within our nation’s correctional facilities consistently conduct themselves admirably under often harsh conditions, the FBI does have a duty to investigate and present for prosecution those corrections officers or staff members who abuse their authority and positions.”
According to the charging and court documents, McLeod, who worked as a supervisor at the prison, strip-searched an inmate in the lieutenants’ office in front of three other correctional officers. McLeod admitted that after the inmate complained that the strip-search was taking too long, he punched the inmate in his face without justification. McLeod also admitted that after the assault, he wrote an incident report and a separate memorandum about the encounter in which McLeod falsely claimed that the inmate swung a closed fist at him and attempted to assault other officers before the inmate was restrained.
Sentencing for McLeod will be on February 20, 2018, before U.S. District Court Judge Steve C. Jones.
This case was investigated by the Department of Justice Office of the Inspector General and Atlanta Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Brent Alan Gray and Trial Attorney Mary J. Hahn of the Civil Rights Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Former Chief Financial Officer of New Jersey Orthopedic Care Provider Admits Embezzling over $1 MillionRead the Press Release
Newark, N.J. – The former chief financial officer of a New Jersey orthopedic care provider today admitted stealing over $1 million from the company for his personal use, Acting U.S. Attorney William E. Fitzpatrick announced.
Harry Wolfmuller, 70, formerly of Belmar, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From 2007 through 2015, Wolfmuller was employed as the chief financial officer for “Company A,” an orthopedic care provider with offices in Ocean and Monmouth Counties. As such, Wolfmuller controlled Company A’s bank accounts and financial records.
Wolfmuller cashed checks from Company A’s business accounts to pay for unapproved personal expenses, including meals at restaurants, golf, gambling and lottery tickets. Wolfmuller then misrepresented the nature of these transactions in Company A’s accounting records to make them appear as legitimate business expenses. Altogether Company A lost approximately $1,175,720 as a result of Wolfmuller’s conduct.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of the plea agreement, Wolfmuller must pay $1,175,720 in restitution. Sentencing is scheduled for March 13, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit in Newark.
Defense Counsel: Salvatore T. Alfano Esq. and Louis Esposito Esq.
Eighteen Defendants Charged by Federal and State Authorities in Connection with Credit Card Fraud SchemeRead the Press Release
Eighteen defendants have been charged by federal and state authorities in connection with a scheme to traffic in stolen credit card account numbers and to manufacture counterfeit credit cards.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Jaime Fernandez Del Pino, 27, of Miami, Florida, Julio Arjona Gomez, 50, of Miami Gardens, Florida, and Dayan Borges, 29, of Doral, Florida have been charged by federal criminal complaint with conspiracy to commit access device fraud in connection with the scheme. An additional fifteen defendants have been charged by the Miami-Dade County State Attorney’s Office.
Acting U.S. Attorney Benjamin G. Greenberg stated, “This investigation demonstrates law enforcement’s commitment to find, apprehend and bring to justice organized criminal enterprises such as this that use technology and the Internet to steal and sell personal identifying information for personal gain. It should also serve as notice to those thinking about engaging in, or those engaging in, this type of criminal activity, the days of hiding behind technology and the Internet are over.”
“In conjunction with the excellent investigative team at the Miami-Dade Police Department and other partner agencies, we remain focused in dismantling the proliferation of these criminal fraud organizations that are based in South Florida and traversing across the United States,” said U.S. Secret Service Special Agent in Charge Brian Swain.
Director Juan J. Perez said, “The Miami-Dade Police Department will continue to collaborate with local and federal law enforcement agencies to stop organized criminals from preying on our community. The hard work demonstrated during this investigation should serve as a reminder to those who seek to victimize the people of Miami-Dade County; we will aggressively pursue each and every one of you.”
According to the Complaint, the investigation began as a joint effort between the United States Secret Service and the Miami Dade Police Organized Crime Section. Law enforcement identified an organized criminal enterprise (“OCE”) involved in an ongoing scheme to traffic in stolen credit card account numbers and manufacture counterfeit credit cards. Certain members of the OCE were tasked with illegally installing credit card scanning devices (“skimmers”) at gas station pumps throughout the United States, for the purpose of stealing the credit card account information of gas station customers. Once the numbers were obtained, they were sent to Miami for use in the production of counterfeit credit cards. The counterfeit credit cards were then passed on to “mules” who either travelled back to the cities where the stolen credit card account numbers were obtained or were deployed locally to make fraudulent purchases. Although stolen credit card numbers were generally “skimmed” from gasoline pumps, the OCE also obtained them through the use of illegal websites.
The investigation revealed an email account linked to Del Pino and Arjona, who were using the account to operate a clandestine credit card manufacturing facility capable of producing up to 1,000 counterfeit credit cards daily. On April 19, 2017, investigators obtained authorization to intercept the electronic communications occurring over the email account and over the next month, investigators intercepted emails from an additional thirteen email accounts, containing the stolen credit card information of nearly 900 victims. Investigators thereafter obtained additional authorization to intercept communications occurring over the email account for an additional thirty days, which uncovered similar stolen credit card information and indicators of fraud.
Thousands of victims’ personal identifying information was used in the scheme, resulting in millions of dollars in losses to both victims and financial institutions. Today’s announcement reaffirms law enforcement’s commitment to crack down on credit card and other access device fraud.
During the week of November 13, 2017, law enforcement executed fifteen search warrants and two consent searches arising out of the investigation, at different locations throughout Miami, West Palm Beach, and Orlando, Florida and Colorado Springs, Colorado. During those searches, law enforcement recovered, among other things, the following items:
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Thousands of counterfeit credit cards
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Over 50,000 blank credit card stock used to manufacture counterfeit credit cards
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Numerous electronics containing thousands of stolen credit card account numbers
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Hundreds of counterfeit state identifications
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Hundreds of gas pump skimmers used to steal the credit card account numbers
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Numerous credit card printers and embossers, including several credit card making labs containing all products necessary to create counterfeit credit cards
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Approximately $95,000 in United States cash
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Nine vehicle seizures including a Mercedes Benz, Chevrolet Tahoe, Ford F350, Range Rover, BMW, a Kia Sonata, and a bladder truck used to steal gasoline
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High-end jewelry including nine watches worth over $100,000
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70 marijuana plants and 27 lbs of packaged marijuana
Mr. Greenberg commended the investigative efforts of the USSS and the MDPD Organized Crime Section, the Palm Beach Sheriff’s Office, the Orange County Sheriff’s Office, the City of Orlando Police Department, and Colorado Springs Police Department. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance in this investigation. This case is being handled by Assistant United States Attorneys Jonathan D. Stratton and Robert Juman.
A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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District Court Enters Permanent Injunctions Shutting Down Two Groups of International Defendants Responsible for Multi-Million Dollar Mail Fraud SchemesRead the Press Release
The U.S. District Court for the Eastern District of New York entered four consent decrees in two civil actions, permanently barring 14 individuals and entities from operating alleged multi-million dollar international mail-fraud schemes. The defendants, located around the globe, include: Swiss corporation BDK Mailing GmbH; Singapore companies Mailing Force Pte. Ltd. and Only Three Pte. Ltd; Chantal Seguy of France; Marion Elchlepp of France; Aurora Jouffroy-Brandtner of Switzerland; U.S. corporation Macromark Inc.; Macromark employee Mary Ellen Meyer; Indian corporation Mail Order Solutions India Pvt. Ltd. (MOSI), and MOSI’s owners, Dharti B. Desai of New York, New York, and Mehul A. Desai of India; and Ercan Barka, a resident of Turkey and New Jersey, Ryan Young of New Jersey, and True Vision LLC, a Delaware-based corporation.
Both schemes followed a similar pattern, involving a complicated web of actors located across the world. Fraudulent “direct mailers” created letters falsely claiming that the recipient has won, or will soon win, cash or valuable prizes, or otherwise will come into good fortune. In order to collect these benefits, the letters say that the recipients need only send in a small amount of money for a processing fee. The letters appeared to come from legitimate sources, typically on official-looking letterhead, but were in fact fictitious individuals and organizations including “Baroness de Rothman,” “DNF Funds Office,” “Finkelstein & Partner,” the “Harrison Institute,” and Marie de Fortune. Moreover, even though the solicitations are in reality identical form letters sent to thousands or tens of thousands of recipients – the letters appear to be personally addressed.
“The Department of Justice is committed to protecting all Americans from fraud and exploitation,” Associate Attorney General Rachel Brand said. “This exploitation is repugnant and the Justice Department will pursue those who target our nation’s seniors and other vulnerable American consumers for financial gain. These consent decrees are just one example of the department’s broad efforts to protect seniors—and every American—from mail fraud.”
“The defendants’ preyed on the elderly and other vulnerable citizens through fictitious lotteries and other exploitive games, unfairly enriching themselves at the expense of these victims,” stated Acting U.S. Attorney Bridget Rohde for the Eastern District of New York. “These consent decrees put the defendants out of the exploitation business. This Office is committed to pursuing the perpetrators and enablers of such schemes, in New York and abroad, to hold them accountable and to protect others from being swindled.”
“These actions are an important step in dismantling the many components of this fraudulent mass-mailing industry,” said Inspector in Charge Regina Faulkerson. “The Postal Inspection Service will continue to aggressively investigate everyone involved in facilitating these predatory mailings.”
United States v. BDK, et al.
The first case, in which consent decrees were entered on November 21, 2017, alleges that the defendants’ fraud scheme victimized hundreds of thousands of Americans and targeted primarily the elderly and vulnerable. According to the complaint, the victims sent the defendants payments totaling $50 to $60 million annually between 2005 and 2016.
The consent decrees entered yesterday resolve the litigation. As part of the consent decrees, defendants BDK Mailing GmbH, Mailing Force Pte. Ltd. and Only Three Pte. Ltd. (collectively BDK) admit that they acted as “direct mailers” responsible for mailing millions of advertisements, solicitations, or promotional materials on behalf of dozens of fictitious psychics, sweepstakes, lotteries, and other wealth-building programs (collectively “covered direct mailings”) to hundreds of thousands of potential victims throughout the United States each year between 2005 and 2016. BDK further admits that the solicitations falsely promised that recipients would receive large sums of money, and guaranteed money-making methods or powerful talismans in return for payment of $50 to $55. In reality, however, the purported senders and the promised winnings were fictitious. Although victims sent requested payments by cash, check, and credit card, they received nothing in return. Defendants Macromark, Inc. and Mary Ellen Meyer do not dispute that they facilitated BDK’s rental of numerous “customer lists” containing hundreds of thousands of consumer names used for BDK’s direct mailing campaigns. Defendant Mail Order Solutions Inc., in turn, printed millions of copies of BDK’s covered direct mailings and delivered them via air cargo and international post into the United States for delivery to unwitting U.S. consumers.
United States v. Ercan Barka, et al.
The second case, in which consent decrees were entered on October 5, names defendants Barka, Young, and True Vision LLC. The United States’ amended complaint, filed in May 2017, alleges that Barka and Young worked together as “direct mailers,” sending fraudulent solicitations to hundreds of thousands of American victims through an international web of shell companies. The complaint alleges that Barka and Young’s mailings informed recipients that they had won prizes including millions of dollars in cash and luxury cars, and that recipients would receive delivery of the prizes upon payment of a fee. Victims allegedly received nothing in return for their payments, while Young and Barka collected an estimated $29 million from American victims from 2012 through 2016.
Under the consent decrees entered in both cases, the defendants may not use the U.S. mail to distribute fraudulent mailings or any mailings promoting similar schemes. The consent decrees also prevent the defendants from printing, receiving, handling, opening, forwarding, or processing any such direct mailings. The defendants are also prohibited from creating, renting, or selling any lists of demographic information relating to consumers who have responded to defendants’ or other certain direct mailings. Nor may the defendants process any payments received in response to certain direct mailings. Finally, the consent decrees authorize the U.S. Postal Inspection Service to return any victim money or personal checks sent to the defendants and detained by the Postal Inspection Service.
The United States’ case is being handled by Chief of Affirmative Civil Enforcement John Vagelatos and Assistant U.S. Attorney Thomas Price of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorneys Ann Entwistle and Gabriel Scannapieco of the Civil Division’s Consumer Protection Branch, in coordination with the U.S. Postal Inspection Service.
Additional information on the original enforcement actions and mass mailing schemes is available at: https://www.justice.gov/opa/pr/justice-department-and-law-enforcement-partners-announce-civil-and-criminal-actions-dismantle . Additional information about the Consumer Protection Branch and its enforcement efforts can be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny .
The Defendants:
BDK MAILING GMBH
MAILING FORCE PTE. LTD.
ONLY THREE PTE. LTD.
CHANTAL SEGUY
Age: 59
Paris, France
MARION ELCHLEPP
Age: 26
Paris, France
AURORE JOUFFROY-BRANDTNER
Age: 40
Zurich, Switzerland
MACROMARK, INC.
MARY ELLEN MEYER
Age: 45
Mahopac, New York
MAIL ORDER SOLUTIONS INDIA PVT. LTD.
DHARTI B. DESAI
Age: 50
New York, New York
MEHUL A. DESAI
Age: not available
Mumbai, India
E.D.N.Y. Docket No. 16-CV-5264 (NGG)
ERCAN BARKA
Age: 35
Paramus, New Jersey
RYAN YOUNG
Age: 35
Upper Saddle River, New Jersey
TRUE VISION LLC.
E.D.N.Y. Docket No. 16-CV-5266 (ENV)
Download Young Consent Decree and Final Judgment
Download Barka Consent Decree and Final Judgment
Download BDK Consent Decree and Final Judgment
Download Macromark Consent Decree and Final Judgment
Download Mosi Consent Decree and Final Judgment
Convicted Felon Pleads Guilty to Gun Charge in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Bobby Eric Spates, age 26, of Florence, pled guilty in federal court in Florence to Felon in Possession of a Firearm. United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on March 31, 2017, members of the Florence Police Department (FPD) responded to a 911 call regarding a pedestrian pointing a gun at a motorist on West Evans Street in Florence. Based on the description of the armed pedestrian received from the motorist, FPD made contact with the pedestrian, identified as Spates, detained him in handcuffs, and asked Spates if he had any weapons on him. Spates responded he had a gun in his pants pocket. The officer proceeded to pat-down Spates and felt what appeared to him to be a gun in Spates’ right front pants pocket. The officer then removed a loaded Phoenix Arms .22 caliber pistol. The officer advised Spates of his Miranda warnings and advised Spates he was under arrest. The officer next secured a box of .22 caliber ammunition from the same pocket where the firearm was located. Prior to his possession of the firearm, Spates had been convicted of a crime punishable by imprisonment for a term exceeding one year.
Ms. Drake stated the defendant faces a maximum penalty of ten years imprisonment. The case was investigated by the Florence Police Department and the ATF. Assistant United States Attorney Lauren Hummel of the Florence office handled the case.
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Columbus Man Sentenced to 20 Years in Prison for Attempted Sexual Exploitation of ChildrenRead the Press Release
United States Attorney G. F. “Pete” Peterman, III announces that Timothy Joiner, age 34 of Columbus, Georgia, was sentenced to serve 20 years in Federal prison for attempted sexual exploitation of children. The sentence was handed down on November 20, 2017, by Chief United States District Court Judge Clay D. Land in Columbus, Georgia.
There is no parole in the federal system.
Mr. Joiner entered a plea of guilty to the charge on August 2, 2017. According to the plea agreement, in March 2017, he sent pornographic pictures of children he found on the internet with the intent to receive child pornography in return. He also sent pictures of children taken from inside his own house, inside his car, and a picture of one of his own blood relatives. The charges were the result of an undercover investigation conducted by the Metropolitan Police Department-Federal Bureau of Investigation (FBI) Child Exploitation Task Force.
“Mr. Joiner’s perverse activities as a user, creator and purveyor of child pornography certainly warrant the sentence he received.” said United States Attorney Peterman. “Hopefully this case will send a message to others who might share the same inclinations as Mr. Joiner that when caught they will be prosecuted by this office to the fullest extent of the law.”
The case was investigated by the Federal Bureau of Investigation, assisted by the Columbus Police Department. Assistant United States Attorney Crawford Seals prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Charles E. Peeler Sworn in as United States AttorneyRead the Press Release
MACON, GA – Charles E. “Charlie” Peeler has taken the oath of office to become the United States Attorney for the Middle District of Georgia. Mr. Peeler was nominated by President Donald Trump on August 3, 2017 and confirmed by the U.S. Senate on November 9, 2017. He took the oath of office from Chief United States District Court Judge Clay D. Land.
“I am honored to have the opportunity to serve as United States Attorney in the Middle District of Georgia. My objective is to make the Middle District a safer place to live, work and visit. I look forward to working with the Assistant United States Attorneys and State and Federal law enforcement to accomplish this mission.”
As U.S. Attorney, Mr. Peeler is the top-ranking federal law enforcement official in the Middle District of Georgia, which includes Albany, Athens, Columbus, Macon and Valdosta. He oversees a staff of 74 employees, including 28 attorneys and 46 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Mr. Peeler, of Albany, Georgia, received his J.D cum laude in 1999 from The University of Georgia School of Law and his B.S. in Biochemistry and Molecular Biology in 1995 also from The University of Georgia. He is a member of the Georgia Bar Association.
PROFESSIONAL OVERVIEW
Over the last 17 years Mr. Peeler has built a diverse trial practice. Mr. Peeler worked in Atlanta for King & Spalding prior to moving to Albany and founding a litigation boutique firm. Mr. Peeler has argued cases before the 11th Circuit Court of Appeals, Georgia Court of Appeals and the Georgia Supreme Court. Mr. Peeler has obtained multi-million dollar jury verdicts on behalf of plaintiffs and defense verdicts on behalf of defendants. Mr. Peeler has tried to verdict business disputes, civil rights matters, criminal matters, employment matters and intellectual property matters. Mr. Peeler was appointed by District Court Judges in the Middle District of Georgia to serve on the Local Rules Advisory Committee and the Planning Committee for the 2016 11th Circuit Judicial Conference. Mr. Peeler was appointed by Georgia Governors Sonny Perdue and Nathan Deal to serve on the State Judicial Nominating Commission.Cataula Tax Preparers Sentenced for Tax FraudRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that on November 21, 2017, Chief U.S. District Court Judge Clay D. Land sentenced Melissa Lowe, age 47, and her daughter, Bianca Lowe, age 29, for their roles in filing false tax returns with the Internal Revenue Service.
Melissa Lowe was sentenced to 24 months imprisonment and restitution in the amount of $440,000, followed by a year of supervised release. Bianca Lowe was sentenced to 9 months imprisonment and restitution in the amount of $78,687, followed by a year of supervised release. As a condition of their supervised release, both parties are prohibited from acting as tax preparation agents or seeking employment in any tax related field.
The evidence showed that from 2011-2013, Melissa Lowe owned and operated Priority Tax Service in Cataula, Harris County, Georgia. Bianca Lowe was an occasional employee of the business. This business primarily was engaged in filing federal and state income tax returns for individual taxpayers. The Lowes engaged in a sustained practice of filing fraudulent income tax returns designed to inflate their customers’ tax refunds. While the scheme was perpetrated in several ways, the most common method used by the Lowes was filing a “Schedule C” with each return, even when such a filing was unwarranted and/or unnecessary. A Schedule C is filed when a taxpayer must report small business gains or losses; the Lowes routinely would file a Schedule C showing that their client sustained large business losses, which offset the amount of tax owed, and therefore increased the tax refund to the client. In most cases, the Schedule C businesses were either non-existent or their losses were drastically overstated.
The scheme was discovered when the Internal Revenue Service (IRS) realized that Ms. Lowe’s business was filing Schedule C returns in a volume that was drastically higher than the national average for such businesses. As a result of this scheme, the total loss to the government was estimated at $440,000. Most of the individual taxpayers were unaware of the fraudulent filings, and will not be held accountable for the losses.
“Today’s sentencings should act as a deterrent for those who are thinking about helping others submit false tax returns,” said James Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “We will continue to utilize our resources, work with our law enforcement partners and dismantle any of these tax preparation businesses who submit fraudulent tax returns.”
This case was investigated by agents representing the Harris County Sheriff’s Office, the Columbus Police Department, and the Internal Revenue Service. Assistant United States Attorney Mel Hyde prosecuted this matter for the government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Buffalo Men Convicted by Federal Jury of Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has found Isiah Pierce, 34, and Larry Willis, 32, both of Buffalo, NY, guilty of possessing crack cocaine with intent to distribute, maintaining a drug involved premises, possessing firearms in furtherance of drug trafficking activities, and being a felons-in-possession of firearms and explosives. In addition to the foregoing, defendant Pierce was also convicted of possession with intent to distribute cocaine, fentanyl, and butryl fentanyl. The charges carry a maximum penalty of life in prison.
Assistant U.S. Attorneys Laura A. Higgins and Paul E. Bonanno, who handled the trial of the case, stated that between November 2016 and December 1, 2016, the defendants utilized two apartments inside 70 Henrietta Avenue, Buffalo, New York, to manufacture, package, and store quantities of crack cocaine, heroin, cocaine, fentanyl, and butyryl fentanyl, along with the proceeds for sale of such controlled substances. To protect their product and their proceeds, the defendants maintained multiple firearms and ammunition within each of the apartments.
During the execution of a search warrant in the lower apartment at 70 Henrietta Avenue, officers recovered crack cocaine, three firearms and ammunition, a digital scale with drug residue, packaging material, whisks, spoons, and cutting agents. A subsequent search of the upper apartment uncovered additional amounts of crack cocaine, a mixture of heroin and butyryl fentanyl, three handguns and numerous rounds of ammunition.
The verdict is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard and the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Pierce and Willis will be sentenced on March 20, 2018, and March 21, 2018, respectively, before U.S. District Judge Lawrence J. Vilardo, who presided over the trial of the case.
Buffalo Man Sentenced on Fentanyl and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Walker, Jr., 25, of Buffalo, NY, who was convicted of distribution of fentanyl and unlawful possession of a firearm by a person subject to an order of protection, was sentenced to 33 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that on five occasions in March and April of 2016, the defendant sold fentanyl to a confidential source of the Federal Bureau of Investigation. The last of those transactions occurred on April 18, 2016, when Walker sold a quantity of fentanyl for $1,000.
On April 26, 2016, a search warrant was executed at the defendant’s residence on Busti Avenue in Buffalo. Officers recovered a semi-automatic pistol, and a magazine loaded with 13 rounds of 9mm ammunition. At the time, Walker was subject to a court order prohibiting him from harassing, stalking, or threatening an individual. The defendant was also explicitly prohibited from using, attempting to use or threatening use of physical force against the individual. The individual has children with the defendant.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Buffalo Man Pleads Guilty to Running A Fraudulent Debt Collection SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shawn Sylvia, 35, of Buffalo, NY, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that the defendant organized a scheme fraudulently to collect on non-existent debts and over-collect on debts that had been paid-in-full. Sylvia, or other individuals he managed, contacted eight victims via telephone purporting to be from organizations which included: American Mutual Holdings (AMH); Check Systems, LLC; Interstate Recovery Solutions; Apex Resolution Group; Interstate Check Registry; Miller and Flemming and Associates (MFA); Pasquale and Associates LLC; Checking Solutions; or Aries Resolution Group.
The defendant and others used strong-arm tactics including threats of arrest, jail, and lawsuits to convince victims to make payments toward what they were told were outstanding debts. Victims were directed to transfer money via MoneyGram and Western Union and to wire funds into bank accounts controlled by the defendant or his associates. Merchant accounts were established with two merchant processing companies in order to process credit card payments made by victims. In creating those merchant accounts, Sylvia and others made false representations to the payment processing companies claiming that the business entities they operated were engaging in legal services, investment services, and software sales. The payment processing companies suffered losses as a result of chargebacks of payments as a result of unauthorized and fraudulent charges.
Between May 2013 and August 2017, Sylvia and his associates fraudulently obtained a total of $342,303.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for April 3, 2017, at 12:30 before Judge Arcara.
Buffalo Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jimmy Lee Barner, 35, of Buffalo, NY, pleaded guilty to being a felon-in-possession of a firearm before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on December 7, 2016, Amherst, NY police officers stopped a vehicle in connection with a report of larceny from a Kohl’s department store on Transit Road in Williamsville, NY. The defendant was one of four occupants and was sitting in the front passenger seat. Stolen merchandise was recovered from some of the occupants.
A subsequent search of the vehicle for additional items of stolen property resulted in the seizure of a .380 caliber semi-automatic pistol from the glove box. The firearm was loaded with nine rounds of ammunition. Subsequently, a DNA sample was taken from Barner to compare with DNA collected from the firearm. Testing confirmed that the defendant’s DNA was on the firearm.
Barner was previously convicted of local charges in Erie County Court as well as federal charges in the Western District of New York of and is legally prohibited from carrying a firearm.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, and the Amherst Police Department, under the direction of Chief John Askey.Sentencing is scheduled for March 13, 2018, before Judge Vilardo.
Brooklyn Man Sentenced for Illegal Transportation of AlienRead the Press Release
ALBANY, NEW YORK – Myroslav Avram, age 46, of Brooklyn, New York, and a citizen of Ukraine, was sentenced yesterday to time served (65 days in jail), as well as a 2-year term of supervised release, for transporting another Ukrainian citizen who illegally crossed the border into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Avram pled guilty on December 12, 2016 and admitted that on February 23, 2016, in Hogansburg, New York, he picked up a Ukrainian citizen who had crossed the border illegally from Canada. Avram was driving the man to New York City when he was stopped and arrested by Border Patrol Agents near Clinton, New York.
The smuggled alien, Petro Vasylyovy Lakusta, age 40, of Ukraine, was sentenced on March 1, 2016 to 23 days in jail and then placed into removal (deportation) proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Attorney General Jeff Sessions Directs FBI and ATF to Conduct a Comprehensive Review of the National Instant Criminal Background Check SystemRead the Press Release
Today, Attorney General Jeff Sessions issued a memo to the FBI and ATF directing them to look at several issues as it relates to reporting information to the National Instant Criminal Background Check System. The memo directs the FBI and ATF to take the following steps:
- Work with the Department of Defense to identify and resolve any issues with the military’s reporting of convictions and other information relevant to determining prohibited person status under 18 U.S.C. § 922(g).
- Conduct a review to identify other federal government entities that are not fully and accurately reporting information to NICS. If any such entities are identified, a plan should be developed to ensure full and accurate reporting to NICS going forward to the extent required under current law.
- Conduct a review of the format, structure, and wording of ATF Form 4473 and recommend changes as necessary.
- Prepare a report that addresses: (a) the number of current open investigations for making a false statement on ATF Form 4473; (b) the number of investigations for making a false statement on ATF Form 4473 for the past five years; (c) the prosecution referral and declination numbers for the current year, as well as the past five years for making a false statement on ATF Form 4473; and (d) the priority level assigned to investigations for making a false statement on ATF Form 4473.
- Identify any additional measures that should be taken to prevent firearms from being obtained by prohibited persons, including identifying obstacles to state, local, and tribal entities sharing information with NICS.
“The National Instant Criminal Background Check System is critical for us to be able to keep guns out of the hands of those that are prohibited from owning them,” said Attorney General Jeff Sessions. “The recent shooting in Sutherland Springs, Texas revealed that relevant information may not be getting reported to the NICS – this is alarming and it is unacceptable. Therefore, I am directing the FBI and ATF to do a comprehensive review of the NICS and report back to me the steps we can take to ensure that those who are prohibited from purchasing firearms are prevented from doing so.”
- Work with the Department of Defense to identify and resolve any issues with the military’s reporting of convictions and other information relevant to determining prohibited person status under 18 U.S.C. § 922(g).
Albany Woman Pleads Guilty to Wire FraudRead the Press Release
ALBANY, NEW YORK – Bobbi A. Constantine, formerly known as Robert Bove, age 48, of Albany, pled guilty today to wire fraud in connection with a scheme to obtain mortgages and car loans under the false pretense of being a beneficiary of a $12 million trust.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Acting Inspector in Charge Raymond Moss, U.S. Postal Inspection Service (USPIS), Boston Division.
As part of her guilty plea, Constantine admitted that, from October 2014 through July 2016, when she was known as Robert Bove, she obtained mortgages and automobile lease financing from lenders under the false pretense that she was the beneficiary of a trust containing more than $12 million of the assets of a fictitious, deceased aunt.
Constantine used fictitious trust documents, which bore a forged notary seal, to dupe an attorney into generating a letter stating that that she was the beneficiary of a trust generating annual income of more than $50,000. Constantine also impersonated a fictitious administrative trustee for the trust. On the basis of the fraudulent trust documents and the attorney’s letter, Constantine obtained lease financing for a new Toyota RAV4 and a new Jeep Renegade, and obtained mortgages for her purchase of a $200,000 home in Albany and a $131,000 condominium in Myrtle Beach, South Carolina.
The plea follows Constantine’s August 21, 2017 federal sentencing for making false statements in connection with her May 2016 application for employment with the United States Postal Service. Constantine, who has more than 20 prior convictions including convictions for fraud, falsely stated in her employment application that she had never been convicted of a crime.
Constantine has been in federal custody since September 13, 2016. She received a sentence of time served on the false statements conviction.
United States District Judge Mae A. D’Agostino is scheduled to sentence Constantine on December 22, 2017 on the fraud conviction. Constantine faces up to 30 years in prison, a maximum $1 million fine, and a term of post-imprisonment supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The plea agreement requires that Constantine consent to forfeiture in the amount of $43,640.72, and pay restitution in the amount of $18,739 to the Social Security Administration and $24,901.72 to the seller of the Myrtle Beach condominium.
This case was investigated by the USPIS, the New York State Police, the Social Security Administration Office of the Inspector General, and the Town of Bethlehem Police Department, and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Alaska Man Sentenced to Prison for Threatening to Assault Federal OfficialsRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that a Wiseman, Alaska, man was sentenced in federal court for threatening to assault federal officials.
Jay Rolf Armstrong, 52, of Wiseman, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline, to serve two years in federal prison, followed by one year of supervised release. Armstrong was also ordered to pay a fine of $2,000. Armstrong pleaded guilty on Aug. 18, 2017, to two counts of threatening to assault federal officials.
According to court documents, Armstrong had made numerous complaints to BLM officials and others over a period of several months, beginning in January 2016, about BLM’s decisions regarding Armstrong’s mining activities on public lands. On Jan. 9, 2017, in Washington, D.C., Armstrong spoke to a BLM official and expressed his anger at being denied mining permits. Two days later, Armstrong made two phone calls to government officials, and threatened to kill BLM employees in Alaska.
In the first call, Armstrong said: “We should just go out and kill these sons of bitches. Honestly, I have half a mind to walk down there and mess them up right now.” In his second call that day, Armstrong telephoned a BLM official in Fairbanks, and stated: “Don't think for a second that if we don’t get this resolved that I won't pick up arms. I will pick up arms, and I will kill you guys. That's not a threat.”
When at his residence in Wiseman, Alaska, Armstrong could be heard firing his weapons, including a .50 caliber rifle and semi-automatic firearms. A search of Armstrong’s residence and property revealed a variety of firearms including rifles, shotguns, revolvers, rifle scopes, thousands of rounds of ammunition, ammunition magazines, firearm parts, gunpowder, shell casings, primers, bayonets and a large gun safe containing two .50 caliber rifles, additional firearms and ammunition.
The Federal Bureau of Investigation (FBI) and Bureau of Land Management (BLM) conducted the investigation leading to the successful prosecution of this case.
Akron man indicted on explosives and firearms chargesRead the Press Release
An Akron man was indicted for possession of a sawed-off shotgun, transportation of explosive materials, and possession of a destructive device, law enforcement officials said.
Elijah B. Blankenship, 27, possessed a sawed-off 12-gauge Iver Johnson shotgun on Feb. 17, according to the indictment.
On Aug. 16, he possessed a pipe bomb. He knowingly transported explosive materials on the same date, according to the indictment.
In the early evening of August 16, 2017, Akron Police officers began speaking with Elijah Blankenship in the area of Druid Walk in Akron. Through the discussion with Blankenship it was determined that Blankenship possessed a folding knife in his waistband. An Ohio State Highway Patrol K-9 Officer and his partner approached the scene and alerted to Blankenship's vehicle. Two packages of unknown powder substances, gunpowder and a pipe bomb were discovered during the probable cause search of the vehicle. Blankenship was placed in custody by law enforcement, according to court documents.
All items were collected for laboratory analysis and evidence. The disassembly of the suspected pipe bomb and pyrotechnic aerial shell revealed PVC components containing metal screws, nuts, and bolts as well as an unknown powder. A test burn was conducted of the unknown powder. The powder burned in a manner consistent with an energetic pyrotechnic powder, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorney Teresa L. Riley following an investigation the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Akron Police Department, the Summit County Sheriff’s Office Bomb Squad and the Ohio State Highway Patrol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Acting Manhattan U.S. Attorney Announces Conviction of Frank Mercedes on Murder ChargesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that FRANK MERCEDES was found guilty yesterday of murder in connection with a drug conspiracy, murder-for-hire, murder-for-hire conspiracy, and use of a firearm resulting in death, for his role in the murder of Richard Diaz, 28, in Manhattan in 1999. MERCEDES was convicted after a one-week jury trial before U.S. District Judge Richard J. Sullivan.
Acting U.S. Attorney Joon H. Kim said: “Thanks to the work of dedicated agents, detectives, and prosecutors who relentlessly pursued justice, the cold-case murder of an innocent 28-year-old man has been solved after more than 18 years. We hope the verdict brings some measure of peace to Richard Diaz’s family.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
FRANK MERCEDES, a/k/a “Jabao,” ran a significant drug enterprise in Upper Manhattan in the late 1990s. In the summer of 1999, MERCEDES hired three men, including Jose Luis Gracesqui, a/k/a “Muffler,” to kill one of his drug customers (the “Intended Victim”) after the Intended Victim and a number of his associates stole heroin from MERCEDES.
On the night of July 19, 1999, Gracesqui and a member of his crew saw the Intended Victim in a car with Richard Diaz and began following them through Manhattan. When the car with the Intended Victim stopped at a red light, Gracesqui got out of the car that he had been in, approached the car with the Intended Victim, and began shooting. The shots hit both the Intended Victim and the driver of the car, Richard Diaz. Diaz was able to drive a short distance to the Henry Hudson Parkway, until he lost consciousness and died. The Intended Victim sustained injuries but survived. Shortly thereafter, MERCEDES met with Gracesqui and the other members of the hit team to pay them tens of thousands of dollars in exchange for committing the murder.
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MERCEDES, 51, from the Dominican Republic, faces a mandatory minimum sentence of life in prison. MERCEDES is scheduled to be sentenced on April 4, 2018, before Judge Sullivan.
Gracesqui was previously convicted in January 2016 of charges relating to his role in the murder of Richard Diaz, and is currently serving a life sentence.
Mr. Kim praised the investigative work of the U.S. Drug Enforcement Administration (DEA) New York Drug Enforcement Task Force, which is comprised of agents, detectives and investigators from the DEA, the New York City Police Department and the New York State Police. Mr. Kim also thanked the NYPD.
This case is being prosecuted by the Office’s Violent and Organized Crimes Unit. Assistant United States Attorneys Rebekah Donaleski, Jessica K. Fender, and Laurie A. Korenbaum are in charge of the prosecution.
21 November 2017
Williamsville Couple Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shaheen Hassanali, 45, pleaded guilty to filing a false tax return, and her husband, Riyaz Hassanali, 57, both of Williamsville, NY, pleaded guilty to receiving and delivering misbranded drugs. The pleas took place before U.S. District Judge Richard J. Arcara. The charge against Shaheen Hassanali carries a maximum penalty of three years in prison and a $250,000 fine. Riyaz Hassanali faces a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that for the tax years 2006-2009, Shaheen Hassanali filed false joint income tax returns for herself and her husband. The defendant substantially under-reported the income earned from her husband’s medical practice.
In addition, between 2009 and 2011, Riyaz Hassanali ordered, and administered to patients, a misbranded, and non-FDA approved, foreign market product, similar to the prescription drug Dysport, a prescription drug commonly used in cosmetic procedures.
The pleas are the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office, and the U.S. Food and Drug Administration, Office of Criminal Investigations, under the direction of Jeffrey Ebersole, Special Agent-in- New York Field Office.
Sentencing is scheduled for March 6, 2018, at 12:30 p.m. before Judge Arcara.
West Virginia Man Charged with Producing Child Pornography and Online Enticement of A MinorRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Johnnie Gresham, age 39, of Charleston, West Virginia, was indicted by a federal grand jury today on charges of production of child pornography and online sexual enticement of a minor.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Gresham committed the offenses between April 2017 and June 2017, in Susquehanna County and elsewhere. The indictment alleges that Gresham used a cell phone and the internet to commit the crimes.
The charges stem from an investigation by Homeland Security Investigations and the Pennsylvania Attorney General’s Office. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 years’ imprisonment for the production of child pornography charge, and a mandatory minimum sentence of 10 years’ imprisonment for the online enticement charge. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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U.S. Attorney's Office Announces Hiring Grants for Community Policing OfficersRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced that hiring grants for community policing officers were awarded to two local law enforcement agencies in the Western District of North Carolina.
The U.S. Department of Justice’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program awarded $480,963 to the Haywood County Sheriff’s office to fund the hiring of four officers, and $375,000 to the Statesville Police Department to fund the hiring of three officers.
In making the announcement U.S. Attorney Rose said, “One of the Justice Department’s top priorities is to create safer neighborhoods by removing criminals from the streets and reducing violent and gun crime. The two hiring grants will provide our local law enforcement partners with the resources they need to strengthen their ability to fight violent crime and to protect the well-being of citizens in their communities.”
The Haywood County Sheriff’s Office and the Statesville Police Department were among the 179 law enforcement agencies across the nation awarded a combined 98,495,397 through the COPS Hiring Program.
The COPS Office is the component of the U.S. Department of Justice responsible for advancing the practice of community policing by providing grant funding directly to state, local and tribal law enforcement agencies to support hiring additional law enforcement officers for three years to address specific crime problems. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
For a complete list of award recipients, please visit: https://cops.usdoj.gov/pdf/2017AwardDocs/chp/Award_List.pdf
Two Sentenced to Prison for Embezzling from St. Paul’s Fire DepartmentRead the Press Release
Charleston, South Carolina --- United States Attorney Beth Drake announced today that Doc McNeil Matthews, 48, of Hollywood, South Carolina, and Mary Jo Thomas-Delaney, 68, of Summerville, South Carolina, were sentenced to prison for their roles in a scheme to embezzle funds from the St. Paul’s Fire District. Matthews was sentenced to 33 months imprisonment and Thomas-Delaney was sentenced to 14 months imprisonment. Both sentences included three years of supervised release, to follow the respective terms of imprisonment. United States District Court Judge Richard Gergel imposed the sentences.
Matthews and Thomas-Delaney were convicted following a jury trial in July, 2017. Evidence at trial proved that from December, 2010, through August, 2012, Matthews and Thomas-Delaney, along with others, embezzled approximately $215,000.00 from the St. Paul’s Fire District. The group utilized a FEMA grant that had been awarded to the Fire District. Thomas-Delaney was responsible for administering the grant, while Matthews was the St. Paul’s Fire Chief at the time. The grant contained funds for grant administration, which was inflated without any authority, then the inflated amounts were shared amongst the defendants, resulting in a total loss of $183,375.00.
The conviction is the result of an investigation conducted by the Federal Bureau of Investigations. The case was prosecuted by the U.S. Attorney’s Office in Charleston.
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Two Former Downstate Prison Correction Officers Convicted of Beating an Inmate and Falsifying RecordsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William Grady, the Dutchess County District Attorney, announced today that KATHY SCOTT and GEORGE SANTIAGO JR., both former New York State Correction Officers, were convicted yesterday of the November 12, 2013, beating of Kevin Moore, a sentenced inmate at the Downstate Correctional Facility in Fishkill New York, and of falsifying records after the fact to cover up the beating. SCOTT and SANTIAGO assaulted Moore in violation of his rights under the U.S. Constitution by repeatedly punching and kicking him in the head and body as he lay prone on the floor – injuries that caused Moore to be hospitalized for two weeks with facial bone fractures, five broken ribs, and a collapsed lung. SCOTT and SANTIAGO were also charged with, and convicted of, conspiring to violate Moore’s civil rights, as well as falsifying and conspiring to falsify Department of Correction records concerning the assault. After a nine-day jury trial before U.S. District Judge Kenneth M. Karas, SCOTT and SANTIAGO were convicted of all charges and immediately taken into custody.
Manhattan U.S. Attorney Joon H. Kim said: “Yesterday, a unanimous jury in White Plains found two New York State correction officers guilty of federal crimes in brutally beating 54-year-old inmate Kevin Moore and then orchestrating a massive cover-up involving scores of lies and even a phony injury. This verdict should send a loud, clear message to the New York State prison system that the protections of the U.S. Constitution do not stop at the prison wall. Although most correction officers are good and honest public servants doing an enormously challenging and important job, there are those who become criminals themselves. Officers who beat inmates, supervising officers who facilitate abuse, and those who lie about it to investigators will face the consequences. And that could be a federal conviction and time in prison as an inmate themselves.”
Dutchess County District Attorney William Grady said: "The United States Attorney’s Office, in agreeing to take the lead in this case, allowed us to avoid the serious legal restrictions that would have been encountered if we had pursued this investigation at the state level. The resulting joint investigation coupled with this jury verdict has allowed our two offices to ensure that there would be full accountability in this horrific case and send the message that every available option was and will continue to be pursued to ensure that justice is achieved."
According to the evidence introduced at trial:
On November 12, 2013, Kevin Moore, then 54, was brought to the 1D Housing Unit at Downstate Correctional Facility to be housed overnight. Moore objected to his cell assignment and a verbal dispute ensued between Moore and a group of correction officers. After Moore yelled, in sum and substance, “I’m a monster,” multiple officers, including SANTIAGO, forced Moore to the floor, held him down, and proceeded to assault Moore as he lay there, repeatedly punching and kicking Moore in the head and body. At no time did Moore ever try to attack, touch, or even make a threatening gesture toward any of the officers. While Moore lay defenseless on the floor, SANTIAGO cocked back his leg and kicked Moore in the face. SANTIAGO also continued to strike Moore after Moore was handcuffed. During the beating, SANTIAGO laughed and taunted Moore, yelling, “Who’s the monster now?”
SCOTT, who was then a sergeant and the supervising officer on the scene, was present for the entire beating and was required to stop the excessive force of her subordinates. Instead of taking action to stop the unlawful violence, SCOTT encouraged it, ordering an officer to hold Moore down on the floor while other officers continued to kick and punch him. During the beating, Moore repeatedly cried out in pain and begged SCOTT and the other officers to stop hurting him.
Immediately after the beating, SANTIAGO and other officers, led by SCOTT, engaged in an elaborate cover-up of the crime they had committed. They made up a false cover story that Moore had attacked one of the officers and that another officer had to strike Moore once in the head. To make this lie believable, the officers claimed that Moore had injured the officer’s back by pushing the officer backward onto a table. Because nothing of the sort had occurred, they created a phony injury. Specifically, SANTIAGO hit one of the other officers repeatedly on the back with a baton and SCOTT photographed the fake injury. SCOTT then prepared a false Use of Force Report of the incident, incorporating the photos and false statements from herself and other officers, including SANTIAGO, and submitted the report to her superiors. SCOTT and SANTIAGO also repeatedly pressured other officers to lie to investigators about what had occurred.
Moore was severely injured, suffering multiple facial fractures, five broken ribs, and a collapsed lung, among other injuries. According to the medical evidence, Moore received at least four forceful blows to the face and torso, including one crushing strike to the right eye that was consistent with a kick from a boot.
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SCOTT, 43, of Saugerties, New York, and SANTIAGO, 35, of Fremont Center, New York, were each convicted of one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison; one count of conspiracy to deprive civil rights, which carries a maximum sentence of 10 years in prison; one count of falsifying documents, which carries a maximum sentence of 20 years in prison; and one count of conspiring to falsify documents, which carries a maximum sentence of five years in prison. SCOTT AND SANTIAGO are scheduled to be sentenced by Judge Karas on April 10, 2018.
Three other former Downstate correction officers pled guilty to the same four offenses. Andrew Lowery pled guilty on July 27, 2016; Donald Cosman pled guilty on August 31, 2016; and Carson Morris, pled guilty on November 1, 2017.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and the Criminal Investigators at the United States Attorney’s Office. Mr. Kim, also thanked the New York State Department of Correction Office of Special Investigation, and the Dutchess County District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Civil Rights Unit and the White Plains Division. Assistant U.S. Attorneys Andrew Dember and Pierre Armand are in charge of the prosecution.
Texas Man Pleads Guilty to Drug ConspiracyRead the Press Release
BOSTON – A Texas man involved in a Lawrence-based fentanyl, heroin, and cocaine trafficking scheme pleaded guilty today in federal court in Boston.
Joel Jahamal Rougeau, 41, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute fentanyl, heroin, and cocaine. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 7, 2018. In July 2015, Rougeau and three co-defendants, Jerri Martinez-Tejeda, 31, of Lawrence; Yoelly Carmenatty, 27, of Lawrence; and Lily Solis, 28, of Texas, were charged in a criminal complaint.
In March 2014, an investigation into a drug trafficking organization operating in Massachusetts, California and elsewhere led law enforcement to Martinez-Tejeda. In late May or early June 2015, Martinez-Tejeda hired Rougeau and Solis to pick up nine kilograms of narcotics in California and transport them to the Northeast. On June 4, 2015, law enforcement in Oklahoma intercepted Rougeau and Solis transporting nine kilograms of fentanyl to Martinez-Tejeda and his partner, Carmenatty, in Lawrence for distribution.
In June 2016, Solis was sentenced to 33 months in prison; in October 2016, Martinez-Tejeda was sentenced to 292 months in prison; and in January 2017, Carmenatty was sentenced to six years in prison.
The charge provides for a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Thomas E. Kanwit of Weinreb’s Criminal Division is prosecuting the case.
Scranton Men Charged with Armed Robberies of Two Gas StationsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Durrell Davenport, age 26, and Amod Phillips, age 27, both of Scranton, Pennsylvania, were indicted by a federal grand jury for interference with commerce by robbery and aiding and abetting, conspiracy to commit interference with commerce by robbery, and brandishing a firearm in furtherance of a crime of violence.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on June 8, 2017, Davenport and Phillips brandished firearms and robbed the EFuel Gas Station and Food Mart in Scranton. Approximately $266 and several packs of cigarettes were taken in the robbery. The indictment also charges Davenport with the armed robbery of the Sunoco Gas Station and Convenience Store, in Scranton, on June 20, 2017. Davenport stole $386 and several packs of cigarettes.
The case was investigated by the Scranton Police Department and the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the robbery charges under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The charge of brandishing a firearm carries a mandatory minimum sentence of seven years, consecutive to any other sentence. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sayfullo Saipov Indicted on Terrorism and Murder in Aid of Racketeering Charges in Connection with Lower Manhattan Truck AttackRead the Press Release
Jeff Sessions, the Attorney General of the United States, Joon H. Kim, Acting United States Attorney for the Southern District of New York, Dana J. Boente, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that a grand jury in the Southern District of New York has returned a 22-count indictment (the “Indictment”) against SAYFULLO HABIBULLAEVIC SAIPOV in connection with SAIPOV’s alleged terrorist attack in lower Manhattan on October 31, 2017, which killed eight people and injured 12 more. The Indictment charges SAIPOV with eight counts of murder in aid of racketeering, 12 counts of attempted murder in aid of racketeering, one count of providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), and one count of violence and destruction of a motor vehicle. The case has been assigned to U.S. District Judge Vernon S. Broderick.
SAIPOV was initially arrested on a Complaint and presented before the Honorable Barbara Moses on November 1, 2017. He was ordered detained and has been in federal custody since his arrest.
Attorney General Jeff Sessions said: “As alleged in this indictment, Sayfullo Saipov murdered eight innocent people and injured many more in a calculated act of terrorism in the heart of one of our great cities. People have a right to safety walking down a sidewalk or riding a bike, and we will not change our resolve to confront these threats both at home and abroad. I am especially proud today of the law enforcement officers who acted quickly and courageously to respond and to protect people from further harm. We continue to offer our assistance, our support and our prayers to the victims of this attack and to all the people of New York City.”
Acting U.S. Attorney Joon H. Kim said: “Consumed by hate and a twisted ideology, Sayfullo Saipov allegedly barreled down a pedestrian walkway and bicycle path on a sunny afternoon on the West Side of Manhattan, killing eight innocent people and injuring at least a dozen others. As the scores of videos and images on his cellphone showed, Saipov’s depraved use of a rental truck as a weapon of terror was allegedly in support of the terrorist organization ISIS. As of today, Saipov stands indicted of material support of terrorism, as well as eight counts of murder and 12 counts of attempted murder in aid of racketeering. Like many terrorists before him, Saipov will now face justice in an American court. And like New York City’s response to his alleged attack, we expect that justice in this case will be swift, firm, and resolute.”
FBI Assistant Director William F. Sweeney Jr. said: “When Sayfullo Saipov carried out his brutal attack last month, his intentions were to inflict significant damage, death and injury to innocent victims and terrorize this city. We announce today’s indictment with the understanding that nothing can ever reverse the unfortunate events of that day, or alleviate the pain and sorrow of the victims’ families. Today’s indictment should be a signal though that the rule of law will always prevail and we are dedicated to holding this perpetrator and anyone else who threatens to disrupt our most basic freedoms accountable for their criminal actions.”
As alleged in the Indictment and the Complaint:[1]
Islamic State of Iraq and Al-Sham
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts.
ISIS, including its leadership, membership, and associates, constitutes an “enterprise,” as that term is defined in Title 18, United States Code, Section 1959(b)(2) – that is, a group of individuals associated in fact, although not a legal entity, which is engaged in, and the activities of which affect, interstate and foreign commerce. ISIS members and associates make and have made public statements and issued public declarations, which, among other things: (i) proclaimed and acknowledged acts of violence had been committed by ISIS; (ii) threatened future acts of violence if ISIS’s demands were not met; and (iii) were intended to promote and foster the prestige and standing of ISIS. ISIS has specifically distributed propaganda designed to encourage ISIS followers to commit acts of violence using vehicles as weapons.
The October 31, 2017, Truck Attack
On October 31, 2017, at approximately 3:00 p.m., SAIPOV drove a rented flatbed truck (the “Truck”) from New Jersey over the George Washington Bridge into New York City. After SAIPOV entered New York City, he proceeded in the Truck to the West Side Highway and began traveling southbound. Once SAIPOV was in the vicinity of Houston Street in Manhattan, he drove the Truck onto the bike lane and pedestrian walkway of the West Side Highway. SAIPOV then drove down the walkway for several blocks, striking numerous civilians. SAIPOV eventually collided with a school bus, which was carrying occupants in the vicinity of West Street and Chambers Street, at which point the Truck came to a halt.
After SAIPOV collided with the school bus, he exited the driver’s door of the Truck with two objects in his hands that appeared to be firearms. Moments after SAIPOV got out of the Truck, he yelled, in substance and in part, “Allahu Akbar,” which is an Arabic phrase that translates to “God is Great.”
SAIPOV was shot by a law enforcement officer and taken into custody. Law enforcement officers subsequently recovered in the vicinity of the Truck, among other things, a paintball gun, a pellet gun, a stun gun, and three knives. Law enforcement officers also recovered, approximately ten feet from the driver’s door of the Truck, a document that contained, among other things, the Arabic text for “No God but God and Muhammad is his Prophet” and “Islamic Supplication. It will endure.” “It will endure” is commonly used to refer to ISIS. Cellphones recovered from the Truck contained, among other things, videos and images of ISIS propaganda, and internet searches for truck rentals and for Halloween in New York City.
After SAIPOV was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, SAIPOV stated, among other things, the following:
- SAIPOV was inspired to carry out the Truck attack by ISIS videos he had watched on his cellular phone.
- Approximately one year ago, SAIPOV began planning an attack in the United States. Approximately two months ago, he decided to use a truck to inflict maximum damage against civilians. On or about October 22, 2017, SAIPOV rented a truck so he could practice making turns in advance of his attack.
- SAIPOV planned to use the Truck to strike pedestrians in the vicinity of the West Side Highway and then proceed to the Brooklyn Bridge to continue to strike pedestrians. SAIPOV wanted to kill as many people as he could. SAIPOV chose October 31, Halloween, for the attack because he believed there would be more civilians on the street for the holiday.
- SAIPOV wanted to display ISIS flags in the front and back of the Truck during the attack, but decided against it because he did not want to draw attention to himself. SAIPOV requested to display ISIS’s flag in his hospital room and stated that he felt good about what he had done.
Eight individuals died from the injuries they sustained as a result of the Truck driving on the walkway and at least 12 additional individuals were injured.
* * *
SAIPOV, 29, of Paterson, New Jersey, was initially arrested by the NYPD on October 31, 2017. A chart containing the charges and maximum penalties against SAIPOV is 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 defendant will be determined by a judge.
Mr. Kim, Attorney General Sessions, and Mr. Boente praised the outstanding investigative efforts of the FBI, the NYPD, and the Department of Homeland Security, Homeland Security Investigations (“HSI”). SAIPOV’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI, and other agencies – and the U.S. Department of Justice’s National Security Division. Mr. Kim also thanked the U.S. Department of Justice’s Organized Crime and Gang Section, Office of Enforcement Operations, and Capital Case Section for their exceptional assistance.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Andrew D. Beaty, Amanda Houle, and Matthew Laroche are in charge of the prosecution, with assistance from Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
COUNT
CHARGES
MAXIMUM PENALTIES ON EACH COUNT
1-8
Murder in Aid of Racketeering
Life in prison or death
9-20
Attempted Murder in Aid of Racketeering
10 years in prison
21
Providing and Attempting to Provide Material Support to a Designated Foreign Terrorist Organization
Life in prison
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the Complaint, and the descriptions of the Indictment and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
- SAIPOV was inspired to carry out the Truck attack by ISIS videos he had watched on his cellular phone.
Sayfullo Saipov Charged with Terrorism and Murder in Aid of Racketeering in Connection with Lower Manhattan Truck AttackRead the Press Release
Today, a grand jury returned a twenty-two count Indictment against Sayfullo Habibullaevic Saipovm, 29, of Paterson, New Jersey, in connection with Saipov’s alleged terrorist attack in lower Manhattan on Oct. 31, which killed eight people and injured twelve more.
Attorney General Jeff Sessions, Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr., of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement.
The Indictment charges Saipov with eight counts of murder in aid of racketeering, twelve counts of attempted murder in aid of racketeering, one count of providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and one count of violence and destruction of a motor vehicle resulting in death. This case has been assigned to U.S. District Judge Vernon S. Broderick.
Saipov was initially arrested on a Complaint and presented before the Honorable Barbara Moses on Nov. 1. He was ordered detained and has been in federal custody since his arrest.
“As alleged in this indictment, Sayfullo Saipov murdered eight innocent people and injured many more in a calculated act of terrorism in the heart of one of our great cities,” said Attorney General Sessions. “People have a right to safety walking down a sidewalk or riding a bike, and we will not change our resolve to confront these threats both at home and abroad. I am especially proud today of the law enforcement officers who acted quickly and courageously to respond and to protect people from further harm. We continue to offer our assistance, our support and our prayers to the victims of this attack and to all the people of New York City.”
“Consumed by hate and a twisted ideology, Sayfullo Saipov allegedly barreled down a pedestrian walkway and bicycle path on a sunny afternoon on the West Side of Manhattan, killing eight innocent people and injuring at least a dozen others,” said Acting U.S. Attorney Kim. “As the scores of videos and images on his cellphone showed, Saipov’s depraved use of a rental truck as a weapon of terror was allegedly in support of the terrorist organization ISIS. As of today, Saipov stands indicted of material support of terrorism, as well as eight counts of murder and 12 counts of attempted murder in aid of racketeering. Like many terrorists before him, Saipov will now face justice in an American court. And like New York City’s response to his alleged attack, we expect that justice in this case will be swift, firm, and resolute.”
“When Sayfullo Saipov carried out his brutal attack last month, his intentions were to inflict significant damage, death and injury to innocent victims and terrorize this city,” said Assistant Director in Charge Sweeney. “We announce today’s indictment with the understanding that nothing can ever reverse the unfortunate events of that day, or alleviate the pain and sorrow of the victims’ families. Today’s indictment should be a signal though that the rule of law will always prevail and we are dedicated to holding this perpetrator and anyone else who threatens to disrupt our most basic freedoms accountable for their criminal actions.”
As alleged in the Indictment and the Complaint:
Islamic State of Iraq and Al-Sham
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued its objective through, among other things, indiscriminate killing and deliberate targeting of civilians, mass executions and extrajudicial killings, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria and other locations in Africa and the Middle East and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts around the world.
ISIS, including its leadership, membership and associates, constitutes an “enterprise,” as that term is defined in Title 18, United States Code, Section 1959(b)(2) — that is, a group of individuals associated in fact, although not a legal entity, which is engaged in, and the activities of which affect, interstate and foreign commerce. ISIS members and associates make and have made public statements and issued public declarations, which, among other things: (i) proclaimed and acknowledged acts of violence had been committed by ISIS; (ii) threatened future acts of violence if ISIS’s demands were not met; and (iii) were intended to promote and foster the prestige and standing of ISIS.
ISIS has specifically distributed propaganda designed to encourage ISIS followers to commit acts of violence using vehicles as weapons. For example, the July 2016 issue of Dabiq, ISIS’s then-official magazine, praised the “brother” who answered “the Islamic State’s calls to target nations participating in the Crusader coalition fighting the Caliphate” by “killing more than 80 people and injuring more than 300 others” with a truck in an attack that occurred in Nice, France on or about July 14, 2016. In September 2016, ISIS changed the name of its official magazine from Dabiq to Rumiyah. In November 2016, ISIS released Rumiyah, Issue 3, which has an article titled “Just Terror Tactics,” which again focused on a vehicle attack as a primary attack weapon with a secondary attack using a knife or gun to maximize death and terror.
The Oct. 31, Truck Attack
On Oct. 31, at approximately 3:00 p.m., Saipov drove a rented flatbed truck (the “Truck”) from New Jersey over the George Washington Bridge into New York City. After Saipov entered New York City, he proceeded in the Truck to the West Side Highway and began traveling southbound. Once Saipov was in the vicinity of Houston Street in Manhattan, he drove the Truck onto the bike lane and pedestrian walkway of the West Side Highway. Saipov then drove down the walkway for several blocks, striking numerous civilians. Saipov eventually collided with a school bus, which was carrying occupants in the vicinity of West Street and Chambers Street, at which point the Truck came to a halt.
After Saipov collided with the school bus, he exited the driver’s door of the Truck with two objects in his hands that appeared to be firearms. Moments after Saipov got out of the Truck, he yelled, in substance and in part, “Allahu Akbar,” which is an Arabic phrase that translates to “God is Great.”
Saipov was shot by a law enforcement officer and taken into custody. Law enforcement officers subsequently recovered in the vicinity of the Truck, among other things, a paintball gun, a pellet gun, a stun gun and three knives. Law enforcement officers also recovered, approximately ten feet from the driver’s door of the Truck, a document that contained, among other things, the Arabic text for “No God but God and Muhammad is his Prophet” and “Islamic Supplication. It will endure.” “It will endure” is commonly used to refer to ISIS. Cellphones recovered from the Truck contained, among other things, videos and images of ISIS propaganda and internet searches for truck rentals and for Halloween in New York City.
After Saipov was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, Saipov stated, among other things, the following:
- Saipov was inspired to carry out the Truck attack by ISIS videos he had watched on his cellular phone.
- Approximately one year ago, Saipov began planning an attack in the United States. Approximately two months ago, he decided to use a truck to inflict maximum damage against civilians. On or about Oct. 22, Saipov rented a truck so he could practice making turns in advance of his attack.
- Saipov planned to use the Truck to strike pedestrians in the vicinity of the West Side Highway and then proceed to the Brooklyn Bridge to continue to strike pedestrians. Saipov wanted to kill as many people as he could. Saipov chose Oct. 31, Halloween, for the attack because he believed there would be more civilians on the street for the holiday.
- Saipov wanted to display ISIS flags in the front and back of the Truck during the attack, but decided against it because he did not want to draw attention to himself. Saipov requested to display ISIS’s flag in his hospital room and stated that he felt good about what he had done.
Eight individuals died from the injuries they sustained as a result of the Truck driving on the walkway and at least twelve additional individuals were injured.
* * *
Saipov was initially arrested by the NYPD on Oct. 31. The defendant is charged with:
- Counts 1-8: Murder in Aid of Racketeering with a maximum sentence of life imprisonment or death on each count.
- Counts 9-20: Attempted Murder in Aid of Racketeering with a maximum sentence of 10 years’ imprisonment on each count.
- Count 21: Providing and Attempting to Provide Material Support to a Designated Foreign Terrorist Organization Resulting in Death with a maximum sentence of life imprisonment.
- Count 22: Violence and Destruction of Motor Vehicles Resulting in Death with a maximum sentence of life imprisonment or death.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Attorney General Sessions, Mr. Boente, and Mr. Kim praised the outstanding investigative efforts of the FBI, the NYPD and the Department of Homeland Security Homeland Security Investigations (HSI). Saipov’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force — which consists of law enforcement officers of the FBI, NYPD, HSI and other agencies — and the U.S. Department of Justice’s National Security Division. Attorney General Sessions, Mr. Boente, and Mr. Kim also thanked the U.S. Department of Justice’s Organized Crime and Gang Section, Office of Enforcement Operations and Capital Case Section for their exceptional assistance.
The case is being prosecuted by Assistant U.S. Attorneys Andrew D. Beaty, Amanda Houle and Matthew Laroche of the Southern District of New York, and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Rochester Man Pleads Guilty to Conspiracy to Sell OxycodoneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Ingham, 29, of Rochester, NY, pleaded guilty to conspiring to distribute a controlled substance before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 20 years in prison and a $1,000,000.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that co-defendant Ronald Lockwood was prescribed large quantities of oxycodone by his heath care provider. Beginning in October 2016 and continuing until his arrest in February 2017, Ingham conspired to purchase those pills from Lockwood to sell to others in the Rochester area.
Ronald Lockwood has been convicted and is awaiting sentencing. Charges are pending against another co-defendant Daniel Volonino, Jr. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Ingham’s plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and investigators with the Medicaid Fraud Control Unit of the New York State Attorney General, under the direction of Eric Schneiderman.
Sentencing is scheduled for January 16, 2018, at 10:30 a.m. before Judge Larimer.
Robert M. Duncan, Jr. Sworn in as United States AttorneyRead the Press Release
LEXINGTON, KY. – Robert M. Duncan, Jr. has taken the oath of office to become the United States Attorney for the Eastern District of Kentucky. He was nominated by President Donald Trump on August 3, 2017, and confirmed by the United States Senate on November 9, 2017. Duncan took the oath of office from Chief Judge Karen K. Caldwell of the United States District Court for the Eastern District of Kentucky.
“I am humbled and honored to have been appointed by President Trump and confirmed by the United States Senate to serve as the United States Attorney for the Eastern District of Kentucky,” Duncan stated. “It is my great privilege to serve with the dedicated and talented members of the United States Attorney’s Office, men and women who are committed to the principles of justice, fairness, and the rule of law. As a native Kentuckian and career prosecutor, I understand the unique challenges facing our District, including the devastation of lives caused by drug trafficking and the tragic consequences of violent crime. I am committed to working with our partners and colleagues in law enforcement to help make our communities safer through the vigorous and fair enforcement and prosecution of the laws of the United States.”
As United States Attorney, Robert M. Duncan, Jr. is the top-ranking federal law enforcement official in the Eastern District of Kentucky, which encompasses the 67 easternmost counties in the Commonwealth, has a population of approximately 2.2 million, and includes the cities of Lexington, Covington, Frankfort, Ashland, Pikeville, Somerset, and London. Duncan will serve as the twenty-third presidentially appointed United States Attorney for the Eastern District of Kentucky, which was created in 1901.
Duncan will oversee a staff of 83 employees, including 39 attorneys, 36 non-attorney support personnel, and 8 contract employees. The office is responsible for prosecuting federal crimes in the District, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Prior to his appointment, Duncan had served for more than a decade as an Assistant United States Attorney in the Eastern District of Kentucky. Beginning in 2011 and continuing until his appointment as United States Attorney, Duncan focused on the prosecution of Organized Crime Drug Enforcement Task Force cases, working with federal, state, and local law enforcement personnel to disrupt and dismantle complex drug trafficking and money laundering organizations operating in the District and elsewhere. From 2007 to 2013, Duncan served as coordinator of the office’s Project Safe Neighborhoods Program, a Department of Justice initiative to reduce gun and gang crime through education, community outreach, and prosecution.
During his career as a federal prosecutor, Duncan handled a wide array of criminal and appellate matters, including cases involving violent crimes, immigration offenses, public corruption, white-collar offenses, environmental crimes, and child exploitation offenses. Duncan also served as the Professional Responsibility Officer for the office, providing advice about legal ethics. Duncan joined the United States Attorney’s Office in January 2005.
Prior to becoming a federal prosecutor, Duncan served as a law clerk to Senior United States District Court Judge Henry R. Wilhoit, Jr., in Ashland, Kentucky.
Duncan is a member of the Kentucky Bar Association and admitted to practice law in Kentucky. He is also admitted to practice before the Supreme Court of the United States, the United States Court of Appeals for the Sixth Circuit, and the United States District Court for the Eastern District of Kentucky. Duncan has served as President of the Kentucky Chapter of the Federal Bar Association and on several civic, educational, and philanthropic boards.
Robert M. Duncan, Jr., grew up in Inez, in Martin County, Kentucky, along the Commonwealth’s border with West Virginia. Duncan graduated from Sheldon Clark High School in Inez in 1996. He graduated from Centre College in Danville, Kentucky, in 2000 with his B.A. in English and minor in History. Duncan received his J.D. in May 2003 from the University Of Kentucky College of Law in Lexington, Kentucky.
Duncan, his wife, Valerie, and their children live in Lexington.
Richmond County Man Sentenced on Federal Methamphetamine ChargesRead the Press Release
GREENSBORO, N.C. – Christopher Lee Huckabee, 36, and formerly of 311 Hickory Street, Rockingham, was sentenced today for conspiracy to manufacture methamphetamine, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina. Huckabee had pleaded guilty to the charge on July 10, 2017, before the Honorable William L. Osteen, Jr., United States District Judge.
Huckabee was sentenced to 230 months in the Federal Bureau of Prisons, to be followed by a ten-year term of supervised release. Huckabee was also ordered to pay restitution of $270.23 to the North Carolina State Bureau of Investigation for clean-up costs related to a meth lab located at his home on February 4, 2017. A $100 special assessment was also ordered.
Huckabee still has state charges pending in Richmond County wherein he is charged with the felony offenses of throwing acid or an alkili and assault inflicting serious bodily injury, alleged to have occurred on or about January 18, 2017. Trial on these charges is currently scheduled for January 8, 2018, in Richmond County Superior Court. Huckabee is presumed innocent of the charges pending in state court unless and until proven guilty in a court of law.
This case was jointly investigated by the Richmond County Sheriff’s Office and the North Carolina State Bureau of Investigation.
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Registered Sex Offender Sentenced to 540 Months for Child Pornography OffensesRead the Press Release
DALLAS — Jason Lee Randall, 33, of Mesquite, Texas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 540 months in federal prison, following his guilty plea in January 2017 to multiple child pornography offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Randall pleaded guilty to production of child pornography, transportation of child pornography, possession of prepubescent child pornography and penalties for registered sex offenders. Randall has been in custody since the time of his arrest in September 2016.
According to the indictment, factual resume, and information from his sentencing hearing, Randall, a registered sex offender previously convicted of several possession-of-child-pornography charges, used an online alias of “Emily Randall” to communicate with other children on the internet. Randall, using various online accounts, pretended to be a 12-year-old girl and convinced other girls he met online to engage in sexually explicit conduct and create child pornography of themselves. Randall would then send this child pornography to other children to convince them to engage in sexually explicit conduct and create more child pornography. On at least one occasion, Randall video-chatted with a child and engaged in a sex act visible to the child. Randall victimized at least twenty girls around the world, the majority of which were between the ages of 9 and 13 years old. Randall also possessed thousands of images and videos of prepubescent child pornography, including videos involving infants being sexually abused.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Mesquite Police Department in Texas, and the Burrillville Police Department in Rhode Island. Assistant U.S. Attorney Jamie L. Hoxie was in charge of the prosecution.
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Psychologist George E. Compton Jr. of Sturgis Sentenced for Health Care FraudRead the Press Release
Compton Billed Insurers for Numerous Counseling Sessions that he did not Provide
GRAND RAPIDS, MICHIGAN —George E. Compton, Jr., 63, of Sturgis, Michigan, was sentenced to 28 months in prison, U.S. Attorney Andrew Birge announced today. Compton previously pled guilty to executing a health care fraud scheme from January 1, 2013, until June 30, 2016, when he repeatedly billed numerous health care insurance companies for psychological counseling sessions that he never provided. When imposing the sentence, U.S. District Court Judge Gordon Quist commented that Compton had "ample opportunity to come clean" and that his conduct "contributed to a loss of confidence in the health care industry as a whole because of what occurred right here in our own neighborhood." The court also ordered Compton to pay restitution to the health care insurance companies that he defrauded.
"Unfortunately, this case represents yet another example of how some health care professionals allow their own greed to lead them down the path of defrauding health care benefit programs and ultimately harming consumers," said U.S. Attorney Birge. "My office will continue to vigorously prosecute those who commit health care fraud against private or public health insurance plans."
Compton, who operated a psychology practice in Coldwater, Michigan, established legitimate relationships with numerous patients to provide periodic counseling sessions. However, after establishing these relationships, Compton regularly billed his patients’ health care benefit programs for counseling sessions that grossly exceeded the number of actual counseling sessions that he provided, including billing one patient’s insurance 100 times when her children only actually received eight counseling sessions. When his patients or the health care benefit programs occasionally detected his excess billings, Compton claimed that the billings were the result of an honest mistake or the automated billing functions of his billing software and he reimbursed the health care benefit program for the over-payment. Additionally, when audited by one of the health care benefit programs, Compton created fake patient counseling notes in an attempt to make it appear as if he actually provided counseling sessions on dates that he knew he had previously submitted false billings. During the 41 months that the fraud occurred, Compton received over $800,000.00 in fraudulent insurance payments and spent over $410,000.00 on various credit cards for items including sound equipment for his business ACE Mobile Recording, vacations, concert tickets, and other personal items.
"The march before the federal bench of health care providers to answer for fraudulent billing practices continues with the sentencing of George Compton today," said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "So long as there are those like Mr. Compton who place greed over their oath, and siphon away critical resources from our health care system contributing to the rising cost of health care for all Americans, the FBI and our partners will continue our work to identify offenders and bring them to justice."
The case was investigated by the Kalamazoo office of the FBI and prosecuted by Assistant U.S. Attorney Ronald M. Stella.
END
Press Conference AdvisoryRead the Press Release
There will be a press conference today at 12:30 p.m. to announce charges against Behzad Mesri, an Iranian national, for allegedly hacking into the computer servers of Home Box Office, Inc. (HBO), stealing proprietary data, including information about then-unreleased episodes of the popular television series, “Game of Thrones,” and then allegedly seeking to extort HBO.
WHO:
Joon H. Kim, Acting United States Attorney for the Southern District of New York
William F. Sweeney, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation
WHEN:
Tuesday, November 21, 2017 at12:30 p.m.
WHERE:
U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
LIVESTREAM:
Facebook @USAOSDNY
CONTACT:
James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
Pittsburgh Drug Dealer Sentenced to 10 Years in Prison for Distributing Heroin, Fentanyl and Crack CocaineRead the Press Release
PITTSBURGH – Romel Wilson was sentenced to 120 months in federal prison for trafficking heroin, fentanyl, and cocaine base in April 2015, Acting United States Attorney Soo C. Song announced today.
Wilson, age 34, formerly of Pittsburgh, Pennsylvania, was sentenced yesterday by United States District Court Judge Donetta W. Ambrose. Judge Ambrose ordered that Wilson serve six years of supervised release after he is released from prison. Wilson was previously convicted four times in four separate cases in Pennsylvania state court of trafficking heroin and crack cocaine. Information was provided to the Court in conjunction with Wilson’s federal sentencing that he continued to distribute a mixture of heroin and fentanyl in April 2015 despite the fact that he was aware that the mixture had recently caused at least one of his customers, as he put it, to go “out.”
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation leading to the conviction in this case.
Perry County Man Pleads Guilty to Filing False Federal Income Tax ReturnRead the Press Release
Jackson, TN – D. Michael Dunavant, United States Attorney for the Western District of Tennessee and Tracey D. Montano, Special Agent in Charge, IRS-Criminal Investigation announced today that Joel Anthony Bunch, of Clifton, Tennessee has pleaded guilty to one count of Filing a False Federal Income Tax Return.
On February 21, 2017, Bunch was charged with Filing False Federal Income Tax Returns in an 8-count indictment handed down by a federal grand jury in Jackson.
According to the indictment, Bunch filed false U.S. Corporation Income Tax Returns for the tax years 2010, 2011, 2012, and 2013, by underreporting the corporation’s gross receipts. Bunch also filed false U.S. Individual Income Tax Returns for tax years 2010, 2011, 2012, and 2013, by underreporting gross receipts on his Schedule C, Profit or Loss from Business.
During today’s plea hearing, Bunch pled guilty to Count 8 of the indictment charging him with filing a false U.S. Individual Income Tax Return for tax year 2013. At that time, Bunch owned Bunch Forest Products, located in Clifton, Tennessee, and was the sole person responsible for the business record keeping. Bunch caused his paid tax return preparer to underreport his gross receipts for 2013, by depositing business income into his personal bank account, cashing income checks, and knowingly providing incomplete and inaccurate information to his paid preparer. As a result, Bunch’s 2013 gross receipts were underreported by $27,317, resulting in an additional tax due and owing of $8,361.
The Internal Revenue Service – Criminal Division investigated this case. Assistant U.S. Attorney Matthew J. Wilson is prosecuting the case on the government’s behalf.
Parkersburg man pleads guilty to federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Nathaniel Pittman, 27, entered his guilty plea to a single-count indictment charging him with possession with intent to distribute heroin and cocaine.
On July 7, 2016, members of the Wood County Sheriff’s Office conducted a traffic stop of Pittman’s vehicle and discovered heroin and cocaine. Pittman admitted that he possessed the drugs found in his vehicle, and that he intended to sell the drugs. Lab testing confirmed that the drugs law enforcement recovered were over 80 grams of heroin and over 90 grams of cocaine.
Pittman faces up to 20 years in federal prison when he is sentenced on February 13, 2018.
The investigation was conducted by the Wood County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney John Frail is handling the prosecution. United States District Judge Joseph R. Goodwin presided over the plea hearing.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Papillion Man Sentenced for Bank LarcenyRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Jacob A. McClure, age 23, of Papillion, Nebraska, was sentenced yesterday by the Honorable John M. Gerrard to three year’s probation, 160 hours of community service, eight consecutive weekends in jail and ordered to pay restitution of $4,679.00 to Rochester Armored Car, Inc. McClure had previously pled guilty to one count of bank larceny.
In December of 2016, McClure was employed with Rochester Armored Car, Inc. One of his duties was to fill ATM machines. On December 1, 2016, he filled the SAC Federal Credit Union ATM located at the Offutt Air Force Base Off-Post Shoppette, 25 Hruska Drive, Bellevue, Nebraska, with $50,000. When a customer tried using the ATM on December 5, the ATM wasn’t working. When another Rochester employee went to look at the ATM, it was found that the boxes that store the money were in the wrong place. An audit was performed and it was discovered McClure had taken $47,030.00. When confronted, McClure turned over $37,000.00 that had not yet been spent. McClure had previously made partial restitution and the $4,679.00 in restitution that was ordered by the court was the remaining balance. Rochester had previously reimbursed SAC Federal Credit Union for the missing money.
The case was investigated by the Federal Bureau of Investigation.