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Tuesday 26 September 2017
Battle Creek Man Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Matthew John Andaluz, 44, of Battle Creek, Michigan was sentenced to 30 years in federal prison for producing child pornography, Acting U.S. Attorney Andrew Birge announced today. In addition to the prison term, Chief U.S. District Judge Robert J. Jonker imposed a 10-year term of supervised release that will commence once Andaluz is released from imprisonment. Andaluz will also be required to register as a sexual offender.
Andaluz pled guilty on June 7, 2017, and admitted that he had taken pornographic photographs of a ten-year-old child at his home in Calhoun County. He then circulated the images to others on the Internet. Copies of these images have been found in numerous other state and federal investigations throughout the United States. Federal agents traced these images back to Andaluz’s home late last year. Andaluz sexually abused the child repeatedly over a three-year period, created pictures of the abuse, and then distributed the pictures to others. The victim spoke at sentencing. She described the utter devastation that Andaluz caused to her life. She felt that she lost everything: her childhood, loved ones, and her home. She expressed her extraordinary pain, uncertainty, and anguish. The victim feared that she might never graduate from high school or ever be happy.
In its sentencing memorandum, the U.S. Attorney’s Office argued in favor of the thirty-year sentence. "Children are amongst the most vulnerable of victims, and [the victim in this case] was particularly vulnerable to the defendant . . . . The child will bear the emotional and psychological scars from the defendant’s abuse and exploitation her entire life. A 30-year sentence is needed to reflect the gravity and seriousness of the defendant’s crimes, to promote respect for the law, and to justly punish the defendant."
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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Barnstable Man Sentenced for Illegally Possessing a FirearmRead the Press Release
BOSTON – A Barnstable man was sentenced today in federal court in Boston for illegally possessing a firearm.
Matthew Monroe, 27, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to two years in prison and three years of supervised release. In October 2016, Monroe pleaded guilty to one count of being a felon in possession of a firearm.
On March 11, 2016, Monroe sold an IMI Uzi Model A, semi-automatic rifle to a cooperating witness for $800 at a hotel in Hyannis. The transaction was recorded by law enforcement. Monroe was convicted of breaking and entering in 2013, and was therefore prohibited from possessing a firearm in 2016.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Criminal Division prosecuted the case.
Allentown Man Charged in Aiding the Preparation of False Tax ReturnsRead the Press Release
Jose Frias, 57, of Allentown, PA was charged today by Indictment with conspiracy to defraud the United States and with aiding in the preparation of false tax returns, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 32 years’ incarceration, $2,500,000 fine, 3 years of supervised release, and a special assessment of $1,000, plus restitution and forfeiture.
The case was investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Nancy Rue.
17 1/2 Year Sentence Imposed on Leader of Mexico-Based Heroin RingRead the Press Release
Jorge Andres Lopez Montiel a/k/a Arturo Jiminez-Lopez a/k/a “Jimmy”, 27, of Nashville, Tenn. and Nayarit, Mexico, a Mexican citizen who had been previously deported from the United States, was sentenced to 17 ½ years in prison for leading a heroin-trafficking conspiracy from Mexico, announced Donald Q. Cochran, United States Attorney for the Middle District of Tennessee.
“This prison sentence reflects the commitment of our prosecutors and our law enforcement partners in bringing major drug traffickers to justice,” said U.S. Attorney Cochran. “The U.S. Attorney’s Office and our law enforcement partners will aggressively investigate and prosecute those whose illegal drug trafficking continues to fuel the opioid epidemic facing this nation.”
Montiel pleaded guilty in May 2017 to possessing heroin with intent to distribute and conspiring to distribute heroin and methamphetamine. According to court documents, Montiel was arrested in September 2009 and was in possession of approximately one-half pound of heroin, a firearm and approximately $20,000 in cash. He was indicted by a federal grand jury in October 2009 but was deported to Mexico before he could be taken into federal custody on these charges. After Montiel was deported to Mexico, he continued to distribute heroin and later methamphetamine, through a network of distributors acting at his direction, who transferred the proceeds of the drug sales to Mexico, often through wire transfers.
Beginning in mid-2013, the Specialized Investigations Division of the Metropolitan Nashville Police Department used undercover officers and confidential informants to repeatedly order heroin from Montiel through calls to Mexico. Montiel sent various co-conspirators to deliver the heroin and the transactions often occurred in restrooms at retail stores. As a result of this investigations, 22 persons were arrested on local charges, and approximately 14 pounds of heroin and one and one-half pounds of methamphetamine was seized.
On March 31, 2015, a confidential informant obtained about one pound of high-purity methamphetamine through contact with Montiel. MNPD officers then obtained a search warrant to search the residence where that transaction occurred. Officers executed the search warrant on April 1, 2015, and were met by gunfire as they entered the residence. Matthew McKervey, 26, of Nashville, was charged with firearm and drug offenses and is currently awaiting trial.
Montiel was arrested on May 30, 2016, as he illegally re-entered the United States from Mexico, and eventually pleaded guilty to the drug trafficking offenses in this case.
In addition to Montiel, four others were charged with federal offenses; Matthew McKervey, 28; Brian Goforth, 44; Daniel Alcala, 29; and David Becerra-Ruiz, 42, all of Nashville. Goforth’s case is pending and Becerra-Ruiz was recently sentenced to 10 years in prison. Matthew McKervey and Daniel Alcala are pending trial on federal charges and are presumed innocent until proven guilty in a court of law.
This case was investigated by the Metropolitan Nashville Police Department – Specialized Investigations Division and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Monday 25 September 2017
York Man Sentenced to 57 Months’ Imprisonment for Armed Bank RobberyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ryan Warnick, age 37, of York, Pennsylvania, was sentenced on September 19, 2017, to 57 months’ imprisonment by United States District Court Judge William J. Caldwell for his part in the armed robbery of PNC Bank.
According to United States Attorney Bruce D. Brandler, Warnick assisted his accomplice, Derek Bowman, age, 33, of York, in the armed robbery of PNC Bank, East Market Street, York, on January 9, 2016. Warnick drove Bowman to the PNC Bank where Bowman entered the bank with a sawed-off shotgun, pointed the shotgun at a bank employee, and demanded money from her drawer. Bowman stole approximately $3,000, and fled the scene in Warnick’s vehicle. Bowman was arrested by Pennsylvania State Police the next day and was found to be in possession of money and heroin. The shotgun was later recovered by Springettsbury Township Police in Warnick’s possession.
Judge Caldwell sentenced Bowman to 141 months’ imprisonment on February 15, 2017.
This matter was investigated by the Springettsbury Township Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Chelsea Schinnour prosecuted 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.
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Washington Man Charged with Illegally Possessing Firearm and AmmunitionRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of unlawfully possessing a firearm and ammunition, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on September 19, named James Roosevelt Leach, 45, of Washington, Pennsylvania.
According to the indictment presented to the court, on or about December 14, 2016, Leach, a felon previously convicted of rape, robbery and aggravated assault in Washington County, Pennsylvania, unlawfully possessed a firearm and ammunition. Federal law prohibits an individual with a felony conviction from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort between federal, state and local law enforcement agencies, prosecutors, and communities to prevent, deter and prosecute gun crime. Troopers from the Pennsylvania State Police conducted the investigation that led to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Utah Chiropractor Sentenced to Prison for Tax Evasion and Obstructing the IRSRead the Press Release
An Orem, Utah former chiropractor, who also owned a health care products business, was sentenced to 33 months in prison for tax evasion and corruptly endeavoring to obstruct the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
Louis Hansen, 65, was convicted following a jury trial in July. According to documents submitted to the court and evidence presented at trial, Hansen attempted to evade the payment of his federal income taxes for the years 2005, 2006, 2007 and 2010. For the years 2005, 2006 and 2010, Hansen filed a tax return reporting that he owed taxes, but did not fully pay the amounts due. For 2007, Hansen’s return was audited and additional taxes assessed. In March 2012, Hansen sent a check to the Internal Revenue Service (IRS) in the amount of $342,699 that was drawn on a closed bank account held in the name of another individual, and claimed that the check paid off his tax debt. Hansen then sent a signed letter to the revenue officer assigned to collect his unpaid taxes, claiming that he had paid the taxes owed. A few months later, Hansen sent 10 additional checks all in the amount of $425,000, to at least six IRS locations, all drawn on another closed account in the name of a different individual, claiming to pay the back taxes due.
In addition to the term of prison imposed, U.S. District Court Judge Clark Waddoups sentenced Hansen to serve three years of supervised release and to pay restitution to the IRS in the amount of $342,699.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Kevin L. Sundwall and Assistant Chief Andrew Kameros of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Undocumented Alien Residing in Houston Sentenced to 50 Years in Federal Prison in Liquid Meth CaseRead the Press Release
In Del Rio today, United States District Judge Alia Moses sentenced 33–year-old Adrian Pineda-Orozco, an undocumented alien residing in Houston, to 50 years in federal prison for his role in scheme to smuggle over 43 kilograms of liquid methamphetamine into the United States announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
On January 20, 2017, jurors convicted Pineda-Orozco of one count of conspiracy to possess with intent to distribute methamphetamine and one count of conspiracy to import methamphetamine. Prior to trial, Pineda-Orozco’s co-defendants, 21-year-old Marcelo Guzman and 22–year-old Cyndy Palma, both of Houston, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine.
Testimony during trial revealed that the defendant orchestrated a statewide methamphetamine importation and distribution scheme, with prior deliveries to Houston and Dallas. On December 18, 2015, Customs and Border Protection officers at the Eagle Pass Port of Entry discovered 15 plastic bottles containing liquid methamphetamine inside a vehicle being driven by Guzman and Palma. Guzman told officers that he was supposed to deliver the methamphetamine to an individual in Houston. HSI agents executed a controlled delivery of the methamphetamine. Upon arriving at the meeting location, authorities discovered Pineda-Orozco waiting for them. After the agents identified themselves, Pineda-Orozco got back into his vehicle and fled the scene narrowly missing an HSI agent in the process. Pineda-Orozco led authorities on a high-speed chase through residential neighborhoods. The pursuit continued until spike strips disabled his vehicle. No one was injured as a result of the pursuit. Pineda-Orozco was arrested.
Pineda-Orozco has remained in custody since his arrest. Guzman and Palma also remain in federal custody. On July 10, 2017, Judge Moses sentenced Guzman to 144 months in federal prison following by five years of supervised release. On June 5, 2017, Judge Moses sentenced Palma to 168 months in federal prison followed by five years of supervised release and ordered that Palma pay a $1,500 fine.
“The heavy sentenced imposed on Orozco sends a clear message that there are serious consequences for trafficking in narcotics,” said Special Agent in Charge Shane Folden, HSI San Antonio. “HSI will continue to work closely with its law enforcement partners to bring narcotic traffickers to justice.”
The investigation was conducted by HSI together with U.S. Customs and Border Protection, Drug Enforcement Administration, and the Houston Police Department. Assistant United States Attorneys Paul Harle and Amy Hail prosecuted this case on behalf of the government.
U.S. Attorney Charges Pharmacy Tech for Tampering with OpioidsRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office today charged the former lead technician at a central Alabama pharmacy with tampering with vials of opioid painkillers used in the compounding of intravenous fluid bags intended for hospice and homecare patients. U.S. Attorney Jay E. Town, Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton and Food and Drug Administration, Office of Criminal Investigations, Special Agent in Charge Justin D. Green announced the charge.
Prosecutors filed a one-count information charging JOHNATHON WILLIAM CLICK with tampering with consumer products in reckless disregard for the risk that another person would be placed in danger of death or bodily injury, and under circumstances manifesting extreme indifference to that risk. Between December 2014 and September 2016, Click, 30, of Bessemer, removed morphine sulfate and hydromorphone hydrochloride from vials intended for use in mixing IV bags. Click replaced the drugs with another liquid, knowing the diluted vials would be dispensed to patients, according to the charge.
In conjunction with the information, prosecutors also filed a plea agreement with Click in U.S. District Court. According to the plea agreement, Click worked at Birmingham-based ContinuumRx of Central Alabama. CRX primarily distributes IV bags containing morphine and hydromorphone for palliative care. Click, as the lead pharmacy technician, prepared the vast majority of CRX’s IV bags until the company ended his employment in September 2016.
“This defendant was willing to subject terminal cancer patients to intolerable pain in order to feed his own addiction,” Town said. “This is one more aspect of the epidemic problem America has with abuse of prescription opioids. It also is a testament to law enforcement’s commitment to fight the illegal diversion of these drugs. In this case, people who desperately needed the prescribed drugs for their intended purpose of controlling intense and prolonged pain instead suffered at the hands of a man who knew the misery he could cause.
“It is disappointing when assumed professionals, like pharmacy technicians, are engaged in the diversion of controlled substances,” Hamilton said. “Anyone who can deliberately deny medication to legitimate patients and violate their duties as a professional will be held accountable for allowing these good medicines to get into the wrong hands. The charge and plea agreement in this case are the result of DEA’s continued commitment to work with our law enforcement partners and hold accountable those who participate in illegally diverting controlled substances in our communities,” Hamilton said.
“FDA is fully committed to the vigorous criminal investigation and prosecution of any individual who threatens the safety and security of the U.S. drug supply,” Green said. “The plea agreement in this case sends a clear signal that this kind of illicit tampering activity will not be tolerated.”
According to the plea agreement, Click diverted quantities of morphine and hydromorphone from CRX’s locked inventory by surreptitiously removing vials, withdrawing drugs from the vials and replacing the withdrawn amount with saline or sterile water. He subsequently would return the adulterated and diluted vials to the inventory, undetected, and later used those vials to compound IV bags that were distributed and administered to homecare and hospice patients. CRX’s primary customers are Alacare Home Health & Hospice, New Beacon Hospice, Lakeview Homecare & Hospice, Comfort Care Hospice and Kindred Hospice.
Former patients or family members of patients treated at any of those homecare or hospice providers between December 2014 and September 2016 may receive updates on the case by visiting the U.S. Attorney’s Office website at http://www.justice.gov/usao-ndal/us-v-johnathon-william-click or calling the toll-free number: 1-866-480-8230.
The maximum penalty for tampering with consumer products is 10 years in prison and a $250,000 fine. Click must appear before a federal judge to formally enter a guilty plea.
DEA, FDA and the Alabama Board of Pharmacy investigated the case, which Assistant U.S. Attorney Mohammad Khatib is prosecuting.
Two Pharmaceutical Employees Admit Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Two Burlington County, New Jersey, men today admitted defrauding New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
Judd Holt, 42, a pharmaceutical sales representative from Marlton, New Jersey, and George Gavras, 36, a pharmaceutical sales representative from Moorestown, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Holt and Gavras served as recruiters in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the informations as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
The conspirators recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Holt and Gavras’ conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to other members of the conspiracy.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, Holt and Gavras would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They would select the compounded medications that paid the most without regard to their medical necessity.
Holt and Gavras would then get the prescriptions signed by doctors and other qualified health professionals who never saw the patients or evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the informations, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
As part of the plea agreements, Holt must forfeit $95,574.49 in criminal proceeds he received for his role in the scheme and pay restitution of at least $769,762.53. Gavras agreed to forfeit $204,002.02 and pay restitution of at least $679,368.53.
Each defendant faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Jan. 5, 2018.
Six other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, and John Gaffney – pleaded guilty in August and September 2017 and await sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to the guilty pleas. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel:
Holt: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey
Gavras: Robert N. Agre Esq., Haddonfield, New JerseyTwo Men Charged with Stealing 36 Firearms from Anchorage Gun DealerRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that two men have been charged with stealing 36 firearms from an Anchorage gun dealer, EDC Alaska, during a Sept. 7, 2017, burglary on Northern Lights Blvd. that was captured on multiple surveillance systems.
Seth Kaufman, 31, and Christopher Kratsas-Derr, 27, are charged with theft of firearms from a licensed dealer. Kaufman is also charged with possessing some of the stolen firearms a few days later, on Sept. 11, 2017.
A complaint filed in the case alleges that police received a report of a burglary of EDC Alaska at 6:51 AM on Sept. 7, 2017. Thirty-six firearms had been stolen by two individuals who backed up a black pickup in front of the business, made entry, and left with three dozen guns. Surveillance video showed that one of the burglars was wearing grey/black shoes with white trim, while the other wore grey sweatpants and brown ankle boots with white trim.
EDC Alaska’s owners recalled a suspicious customer from days before. After reviewing the video of that interaction, police were able to identify the suspicious customer as Kaufman.
According to the complaint affidavit, police subsequently received a tip indicating that Kaufman and “Chris” committed the burglary, and that they had subsequently offered the guns for sale while staying at Microtel. Review of prior arrest information revealed that Kaufman and Christopher Kratsas-Derr were arrested together for a different theft crime on June 2, 2017, yet neither was in custody during the Sept. 11, 2017, burglary of EDC Alaska.
The complaints against Kaufman and Kratsas-Derr also note that on Sept. 11, 2017, APD officers made contact with Kaufman at Motel 6 in Anchorage. Kaufman was apprehended after fleeing out the second story window of room 209. Near that same window, law enforcement agents found four of the firearms stolen from EDC Alaska, along with grey/black shoes with white bottom trim.
Law enforcement officers also reviewed surveillance footage from Microtel, which showed an individual wearing grey sweatpants and brown ankle boots with white trim. That individual was subsequently identified as Christopher Kratsas-Derr.
Both Kaufman and Kratsas-Derr have been arrested and were initially charged with multiple crimes by the State of Alaska. Kratsas-Derr’s arraignment on the federal indictment is set for 9:30 AM on Tuesday, Sept. 26, 2017, while Kaufman’s is set for 11:30 AM the same day.
The law provides for a maximum sentence of 10 years in prison and a fine of up to $250,000 for the charges listed in the complaint. Additionally, defendants can also be required to pay restitution to the victims in this case. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation that led to the charges in this case.
ATF advises that most of the firearms stolen from EDC Alaska have not been recovered. Anyone with information regarding the whereabouts of the remaining firearms are encouraged to call 1-888-ATF-TIPS.
Charges contained in a complaint or indictment are merely allegations. Every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Topeka Man Sentenced in RobberyRead the Press Release
WICHITA, KAN. - A Topeka man who took part in a robbery while wearing a monitoring device was sentenced Monday to 36 months in federal prison, U.S. Attorney Tom Beall said.
Christopher Allen Bush, 26, Topeka, Kan., pleaded guilty to one count of aiding and abetting a commercial robbery. In his plea, Bush admitted he picked up co-defendant Marsoleno Devon Ryland after Ryland robbed Casey’s General Store at 600 S.E. Rice Road.
At the time of the robbery, Bush was wearing a monitoring device because he was on post-release supervision in a criminal case in state district court. Data from the GPS device verified that Bush picked up Ryland just south of Casey’s General Store and drove him to the 2300 block S.E. Bellview, where police located the two men shortly after the robbery.
Co-defendant Ryland is set for sentencing Oct. 23.
Beall commended the FBI, the Topeka Police Department and Assistant U.S. Attorney Jared Maag for their work on the case.
Third Bandido Pleads Guilty to Federal Charge in Connection with the Murder of Hells Angel Anthony Benesh in 2006Read the Press Release
In San Antonio today, 40-year-old Bandidos Outlaw Motorcycle Organization (OMO) San Antonio Centro Chapter Sergeant at Arms Jesse James Benavidez pleaded guilty to a federal charge in connection with the murder of Hells Angel Anthony Benesh in 2006 announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Austin Police Chief Brian Manley; and, San Antonio Police Chief William McManus.
Appearing before United States Magistrate Judge Elizabeth S. Chestney, Benavidez pleaded guilty to one count of Aiding and Abetting Using and Discharging a Firearm During and In Relation to a Crime of Violence, specifically Murder in Aid of Racketeering.
Court records allege that Benesh was attempting to start a Texas Chapter of the Hell’s Angels OMO in Austin, Texas in 2006. Members of the Bandidos OMO warned Benesh to cease his activities and recruitment, which Benesh ignored. Benavidez and others then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise. On Friday, September 22, 2017, Bandidos National Sergeant at Arms Johnny Romo and Bandidos Centro Chapter Member Robert Romo pleaded guilty to related federal charges for their roles in the incident.
Benavidez, who remains in federal custody, faces up to life in federal prison. Sentencing is scheduled for May 28, 2018, before Senior U.S. District Judge David A. Ezra in San Antonio. Johnny Romo and Robert Romo also remain in federal custody. Their sentencings are scheduled for May 14, 2018, and May 21, 2018, respectively, before Judge Ezra.
The FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office are conducting this ongoing investigation.
Texas man admits to firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA - A Houston, Texas man has admitted to an illegal firearm charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Corey Letroit Joseph Riggs, age 40, pled guilty today to one count of “Unlawful Possession of a Firearm.” Riggs, who was previously convicted of felonies in the Circuit Court of Harris County, Texas, was in possession of .40 caliber Glock pistol. The crime occurred April 2017 in Ohio County.
He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Supplier of Marijuana Cultivation Operation in the Sequoia National Forest Pleads GuiltyRead the Press Release
FRESNO, Calif. — Sair Maldonado-Soto (Maldonado), 22, of Perris, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute, and manufacturing marijuana in connection with two separate large-scale marijuana cultivation operations in Kern County in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
Maldonado also agreed to pay restitution to the U.S. Forest Service for the damage to public land and natural resources caused by the marijuana cultivation activities.
According to court documents, Maldonado and co-defendant Coral Herrera, 21, also of Perris, were linked to grow sites in the Lucas Creek drainage and an area known as the Box 6 site after a four-month investigation. The investigation revealed that they were supplying material, equipment, and personnel to the grow sites, which consisted of 10,396 marijuana plants. The marijuana cultivation operations caused extensive damage to the land and natural resources. Harmful pesticides and fertilizers, miles of plastic irrigation lines, and large amounts of trash were found at both sites. Native trees and vegetation were also removed to make room for the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Southern Tri‑County High Intensity Drug Trafficking Area (HIDTA) Task Force, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, Kern County Sheriff’s Office, Riverside County Sheriff’s Department, Fontana Police Department, and Victorville Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Maldonado is scheduled for sentencing on December 18, 2017. He faces a statutory mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison, along with a possible maximum $5 million fine. Herrera previously entered a guilty plea and is scheduled for sentencing on December 4. Codefendant Toledo-Villa previously entered a guilty plea and was sentenced to five years in prison. Codefendant Cardenas-Suastegui has requested a jury trial, which is set for November 7. The charges are only allegations; Cardenas-Suastegui is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stonnie Sullivan Permanently Barred from Buying and Selling LivestockRead the Press Release
Paid $31,200 in civil penalties
Agreed to indefinite prohibition from engaging in business for which registration and bonding is required under the Packers and Stockyards Act
Agreed to pay debt to Tennessee livestock market
WASHINGTON - On Aug. 31, 2017, the United States Attorney’s Office for the Western District of Kentucky, acting on behalf of USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA), settled a civil contempt case against Stonnie Sullivan, of Glasgow, Ky.
Agreed Order to Pay Civil Penalty
On Apr. 11, 2017, Sullivan agreed to pay $16,200 in civil penalties to the United States for violations of the Packers and Stockyards (P&S) Act and non-compliance with the terms of a Jan. 2012 Consent Decree. He also committed to pay outstanding penalties imposed by the 2012 Consent Decree. The U.S. District Court, Western District of Kentucky (the Court) entered the agreed order to pay civil penalty on Apr. 24, 2017. Sullivan subsequently paid all the penalties, totaling $31,200. He also filed an application for registration and a $75,000 bond. However, he needed a $90,000 bond to fully comply.
Agreed Order of Permanent Injunction
On May 30, 2017, a judge for the Court verbally ordered Defendant Sullivan not to buy livestock without first filing adequate bond. Sullivan continued buying livestock in apparent defiance of the order. The judge scheduled a criminal contempt trial.
On Aug. 18, 2017, in lieu of trial, Defendant Sullivan admitted that he disobeyed the Court’s verbal order. The parties entered an agreed order of permanent injunction with the Court on the same day. It bars Sullivan, and any others acting in concert or participation with him for such purpose, indefinitely, from engaging in business in any capacity requiring registration and bonding under the P&S Act and regulations. Any future violations of the P&S Act or this agreed order by Sullivan and others acting in concert or participation with him, may result in further penalties.
On Aug. 27, 2017, Defendant Sullivan’s $75,000 bond terminated due to claim activity. Sullivan has not filed replacement bond coverage with GIPSA.
Order on Motion for Civil Contempt
On Aug. 31, 2017, the Court declined to penalize Defendant Sullivan for the criminal contempt charge. Due to the agreed permanent injunction, the Court also denied the United States civil contempt motion as moot. However, the United States may refile its motion if Sullivan does not comply with the permanent injunction.
Agreed Order to Pay Debt
The parties entered another agreed order with the Court on Aug. 31, 2017. In it, Defendant Sullivan agreed to compensate a Tennessee market $8,808.37, within one year. This amount represents the deficiency between the market’s expected recovery against Sullivan’s $75,000.00 bond and his total debt of $83,808.37.
Randall Jones, Acting Administrator of GIPSA, said, “This settlement benefits the industry in two ways. It ensures that Defendant Sullivan pays his obligation and it also deters Sullivan and others from violating the P&S Act and putting livestock sellers at risk.”
This case was prosecuted by Assistant US Attorneys Corinne E. Keel and Jessica R. C. Malloy, in consultation with Attorney Elizabeth M. Kruman, USDA’s Office of the General Counsel (OGC). GIPSA’s Eastern Regional Office conducted the investigation, which OGC referred to the U.S. Attorney’s Office for civil enforcement.
The P&S Act is a fair trade practice and payment protection law. It promotes fair and competitive marketing environments for the livestock, meat, and poultry industries.
Southern District of Ohio to be Awarded $2.9 Million in Grant Funding Focused on Fighting Opioid ScourgeRead the Press Release
WASHINGTON – The Department of Justice announced Friday $58.8 million will be designated to strengthen drug court programs and address the opioid epidemic nationwide. United States Attorney Benjamin C. Glassman announced this includes $2.9 million in grant awards for the Southern District of Ohio.
Specifically, the Supreme Court of Ohio will be awarded $1 million for Data-driven Responses to Prescription Drug Misuse and approximately $700,000 for the Family Drug Court Statewide System Reform Implementation Program.
Approximately $400,000 in Comprehensive Opioid Abuse Program funding each will be awarded to Franklin County and Hamilton County.
The Ohio State Board of Pharmacy will receive approximately $400,000 for the Harold Rogers Prescription Drug Monitoring Program Implementation and Enhancement Projects.
“The opioid-abuse crisis – both across the country and especially in this district – is one of the most significant public-safety and public-health issues of our lifetime,” U.S. Attorney Glassman said. “The Department of Justice recognizes that enforcement alone cannot solve the problem. Prevention and treatment are equally important in making our communities safer, and that is what this funding focuses on.”
In total nationwide, about $24 million in federal grants will be awarded to 50 cities, counties and public health departments to provide financial and technical assistance to state, local and tribal governments to create comprehensive diversion and alternatives to incarceration programs for those impacted by the opioid epidemic.
These funds, awarded under the Office of Justice Programs’ Bureau of Justice Assistance’s Comprehensive Opioid Abuse Program, also included funds from the Harold Rogers Prescription Drug Monitoring Program. This program helps regulatory, law enforcement, and public health agencies address prescription drug and opioid misuse; reduce crime; and save lives.
An additional $3.1 million will be awarded by the National Institute of Justice for research and evaluation on drugs and crime. The research priorities are heroin and other opioids and synthetic drugs.
The Department is also awarding more than $22.2 million to 53 jurisdictions to support the implementation and enhancement of adult drug courts and Veterans Treatment Courts, which serve as “one-stop-shops” to link veterans with services, benefits and program providers.
Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJWE.
The Department is also awarding more than $9.5 million under several Office of Juvenile Justice and Delinquency Prevention grant programs, including the Juvenile Drug Treatment Court Grant Program and the Family Drug Court Statewide System Reform Implementation Program. These programs helps jurisdictions build effective family drug treatment courts.
Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJDf.# # #
South Sudanese National Charged with Assaulting a Deportation Officer During RemovalRead the Press Release
BOSTON - A South Sudanese national was charged today in federal court in Boston with assaulting a deportation officer at the Suffolk County House of Corrections as he was being processed for removal.
Charles Ali, 31, was arrested this morning and charged with assault on a federal officer. Ali appeared before U.S. Magistrate Judge M. Page Kelley, who ordered Ali detained and scheduled a probable cause and detention hearing for Sept. 27, 2017, at 2:00 pm.
According to court documents, on Feb. 16, 2011, Ali was ordered removed from the United States back to the Republic of South Sudan. On Sept. 11, 2017, federal deportation officers arrived at the Suffolk County House of Corrections and informed Ali that he was scheduled for removal that morning and that the officers would be traveling with him. Ali questioned the officers’ authority to remove him and refused to sign removal documents and provide the officers his fingerprints. An altercation ensued, resulting in one of the officers sustaining a broken ankle. A decision was then made to abort the removal proceedings and return Ali to federal immigration custody.
Ali faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Christopher Cronen, Field Office Director of U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, Boston Field Office, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Soldier of Violent Bloods Street Gang Sentenced to 22 Years in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A soldier of the Sex Money Murder set of the Bloods street gang was sentenced today to 264 months in prison for his role in a racketeering conspiracy that involved attempted murder and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Laquan Reed, 28, a/k/a “Drama,” of Montclair, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count Two of a 14-count superseding indictment charging him with racketeering conspiracy. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups, called “sets,” that operate in specific geographic locations. Sex Money Murder is the set that operates primarily in Essex County, New Jersey. Reed, a ranking member in Sex Money Murder, admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives. He admitted that he conspired with set members to murder a rival gang member on Aug. 3, 2011, identified in the indictment as “Victim 6.” Reed admitted he and others engaged in a shootout in an effort to kill the rival gang member in and around Newark. Reed also admitted conspiring to distribute more than one kilogram of heroin in and around Newark.
In addition to the prison term, Judge Wigenton sentenced Reed to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Robert D. Laurino; the Essex County Sheriff’s Office, under the direction of Sheriff Armando V. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to today’s sentencing. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge John B. Devito, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Mary Toscano, Chief, Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division, and Dara Govan of the Criminal Division in Newark.
Defense counsel: James Patton Esq., Livingston, New Jersey
Roswell Woman Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jennifer Rene Barela, 48, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by five years of supervised release for her conviction on a methamphetamine trafficking charge. The sentence was announced by Acting U.S. Attorney James D. Tierney, Acting Special Agent in Charge Steve Borak of the El Paso Division of the DEA and Chief Patrol Agent Jeffrey D. Self of the U.S. Border Patrol El Paso Sector
Acting U.S. Attorney Tierney said that Barela, whose criminal history includes prior felony convictions for methamphetamine trafficking, burglary, forgery and fraud, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Barela was arrested in Dec. 2016, and was charged by criminal complaint with possessing heroin and methamphetamine with intent to distribute the drugs in Otero County, N.M. Barela was arrested on Dec. 6, 2016, after U.S. Border Patrol agents at the U.S. Border Patrol checkpoint south of Alamogordo, N.M., seized approximately 191.08 grams of black tar heroin, a kilogram of methamphetamine, and drug paraphernalia from the vehicle in which Barela was traveling and from Barela herself.
On July 14, 2017, Barela pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. In entering the guilty plea, Barela admitted that on Dec. 6, 2016, Border Patrol agents ordered her out of her vehicle at the U.S. Border Patrol checkpoint on New Mexico Highway 54, and discovered that Barela had approximately one kilogram of methamphetamine concealed on her person. She further admitted that she intended to deliver the methamphetamine to other individuals in exchange for money.
This case was investigated by the Las Cruces office of the DEA and the U.S. Border Patrol. Assistant U.S. Attorney Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Rosebud Man Indicted on Assault ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer and Assault with a Dangerous Weapon.
Robert Lee Burnette, age 24, was indicted on August 16, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 18, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about July 14, 2017, Burnette threatened two individuals with a knife, and assaulted, resisted, opposed, impeded, intimidated, and interfered with a law enforcement officer employed by the Rosebud Sioux Tribe while the officer was engaged in the performance of his official duties.
The charges are merely an accusation and Burnette is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Burnette was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rosebud Man Charged with Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender.
Calvin Gillette, age 26, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 19, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Gillette is accused of assaulting his domestic partner on January 31, 2017, when at the time of the assault, Gillette had a final conviction on at least two separate prior occasions in Rosebud Sioux Tribal Court proceedings for offenses that would have been, if subject to federal jurisdiction, an assault against a domestic partner.
The charge is merely an accusation and Gillette is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel Nelson is prosecuting the case.
Gillette was released on bond pending trial. A trial date has not been set.
Pharmacy Manager Pleads Guilty to Illegal Prescription Drug Diversion and Money LaunderingRead the Press Release
A pharmacy manager from Burnsville, North Carolina, pleaded guilty for her role in the fraudulent diversion of prescription drugs and money laundering, the Department of Justice announced today.
Karen Ann Turner, 37, pleaded guilty in the Western District of North Carolina to one count of conspiracy to commit wire fraud and one count of money laundering. Turner was charged in connection with a fraudulent scheme that operated out of pharmacies in Burnsville, North Carolina, and Travelers Rest, South Carolina. As a part of that scheme, Turner bought prescription drugs at lower prices by falsely stating that the drugs would be used to fill patient prescriptions through the pharmacies that she operated. Instead of using the drugs for patient prescriptions, Turner sold them at higher prices to unauthorized drug wholesalers. Some of the prescription drugs that Turner bought and sold were in short supply. Turner laundered the profits of her fraud scheme by transferring them through bank accounts that she controlled. Sentencing will be scheduled at a later date.
“The Department of Justice is committed to prosecuting those who fraudulently divert prescription drugs from their authorized and controlled distribution system,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “These fraud schemes increase the risk that patients will receive ineffective or unsafe drugs, and can expose hospitals to exorbitant prices for drugs that are in short supply.”
“We rely on pharmacies to safeguard the integrity of our prescription drug system and to protect public safety. Turner’s financially motivated scheme is particularly troubling because it removed prescription drugs from lawful distribution channels, potentially putting consumers’ health at risk,” said U.S. Attorney Jill Westmoreland Rose for the Western District of North Carolina.
As part of her guilty plea, Turner admitted that she operated two pharmacies to fraudulently obtain prescription drugs at low prices that were only available to pharmacies that agreed to use the drugs to fill patient prescriptions. Instead of using the drugs to fill prescriptions as she said she would, Turner sold the drugs to drug wholesalers for more than she paid, taking the drugs out of their controlled distribution system.
“When prescription drugs are diverted from the legal supply chain, there is no longer any assurance that the products are safe and effective for their intended uses,” said Special Agent in Charge Justin D. Green of the Food and Drug Administration’s (FDA) Office of Criminal Investigations’ Miami Field Office. “Today’s announcement should serve as a reminder of the FDA’s continued focus on criminals that put profits ahead of the U.S. public health by distributing prescription drugs outside the legitimate supply chain.”
This case is being prosecuted through the coordinated efforts of the U.S. Attorney’s Office for the Western District of North Carolina and the Civil Division’s Consumer Protection Branch, with assistance from FDA’s Office of Chief Counsel. The criminal investigation was conducted by FDA’s Office of Criminal Investigations.
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 Western District of North Carolina, visit its website at https://www.justice.gov/usao-wdnc.
Pharmacy Manager Pleads Guilty to Illegal Prescription Drug Diversion and Money LaunderingRead the Press Release
WASHINGTON - A pharmacy manager from Burnsville, North Carolina, pleaded guilty for her role in the fraudulent diversion of prescription drugs and money laundering, the Department of Justice announced today.
Karen Ann Turner, 37, pleaded guilty in the Western District of North Carolina to one count of conspiracy to commit wire fraud and one count of money laundering. Turner was charged in connection with a fraudulent scheme that operated out of pharmacies in Burnsville, North Carolina, and Travelers Rest, South Carolina. As a part of that scheme, Turner bought prescription drugs at lower prices by falsely stating that the drugs would be used to fill patient prescriptions through the pharmacies that she operated. Instead of using the drugs for patient prescriptions, Turner sold them at higher prices to unauthorized drug wholesalers. Some of the prescription drugs that Turner bought and sold were in short supply. Turner laundered the profits of her fraud scheme by transferring them through bank accounts that she controlled. Sentencing will be scheduled at a later date.
“The Department of Justice is committed to prosecuting those who fraudulently divert prescription drugs from their authorized and controlled distribution system,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “These fraud schemes increase the risk that patients will receive ineffective or unsafe drugs, and can expose hospitals to exorbitant prices for drugs that are in short supply.”
“We rely on pharmacies to safeguard the integrity of our prescription drug system and to protect public safety. Turner’s financially motivated scheme is particularly troubling because it removed prescription drugs from lawful distribution channels, potentially putting consumers’ health at risk,” said U.S. Attorney Jill Westmoreland Rose for the Western District of North Carolina.
As part of her guilty plea, Turner admitted that she operated two pharmacies to fraudulently obtain prescription drugs at low prices that were only available to pharmacies that agreed to use the drugs to fill patient prescriptions. Instead of using the drugs to fill prescriptions as she said she would, Turner sold the drugs to drug wholesalers for more than she paid, taking the drugs out of their controlled distribution system.
“When prescription drugs are diverted from the legal supply chain, there is no longer any assurance that the products are safe and effective for their intended uses,” said Special Agent in Charge Justin D. Green of the Food and Drug Administration’s (FDA) Office of Criminal Investigations’ Miami Field Office. “Today’s announcement should serve as a reminder of the FDA’s continued focus on criminals that put profits ahead of the U.S. public health by distributing prescription drugs outside the legitimate supply chain.”
This case is being prosecuted through the coordinated efforts of the U.S. Attorney’s Office for the Western District of North Carolina and the Civil Division’s Consumer Protection Branch, with assistance from FDA’s Office of Chief Counsel. The criminal investigation was conducted by FDA’s Office of Criminal Investigations.
Owner of One of the Nation’s Largest Commercial Fishing Businesses Sentenced for Falsifying Records & Smuggling Proceeds AbroadRead the Press Release
BOSTON – The owner of one of the largest commercial fishing businesses in the United States was sentenced today in U.S. District Court in Boston for falsifying records to the federal government to evade federal fishing quotas and smuggling a portion of his business’ proceeds to Portugal to avoid U.S. taxation.
Carlos Rafael, 65, of Dartmouth, was sentenced by U.S. District Court Judge William G. Young to 46 months in prison and three years of supervised release, during which time he is banned from working in the fishing industry. The Court also ordered Rafael to pay a fine of $200,000 and restitution to the U.S. Treasury of $108,929. Rafael may also be subject to forfeiture of a portion of his fishing fleet, but the Court held that issue for further consideration.
In March 2017, Rafael pleaded guilty to one count of conspiring to commit offenses against the United States, 23 counts of false labeling and fish identification, two counts of falsifying federal records, one count of bulk cash smuggling, and one count of tax evasion. He was initially arrested and charged in February 2016.
Rafael, the owner of Carlos Seafood Inc., based in New Bedford, Mass., owned 32 fishing vessels through independent corporate shells and 44 permits, which amounted to one of the largest commercial fishing businesses in the United States.
“Mr. Rafael profited at the expense of other hard-working commercial fishermen by falsifying records so he could keep fishing while they were sidelined,” said Acting United States Attorney William D. Weinreb. “The Court accurately described Mr. Rafael’s actions as systematic corruption. He will now face the consequences of violating federal laws designed to sustain the New England fishery.”
“The significant sentence imposed by the Court today reflects the profound impact of Mr. Rafael’s long-running criminal scheme,” said Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston. “As a fishing industry leader, Mr. Rafael’s false catch reports and tax evasion scheme gave him an unfair advantage, to the detriment of honest fishermen and our precious ocean resources. IRS-CI is proud of this remarkable investigative team, and the important role our undercover agents played in bringing “the Codfather” to justice.”
“As the Nation’s federal maritime law enforcement agency, the Coast Guard has a critical role in enforcing federal fisheries regulations to protect our precious marine resources, promote sustainable fish stocks, and ensure a level playing field for all the honest fishermen,” said Rear Admiral Steven D. Poulin, Commander, First Coast Guard District. “I am proud of the Coast Guard's partnership with the NOAA Office of Law Enforcement, the IRS Criminal Investigation Division, and the U.S. Attorney’s Office to help bring Mr. Rafael’s illegal operations to a halt.”
“Mr. Rafael’s criminal sentence is the result of excellent collaboration among federal partners, and reflects NOAA’s deep commitment to investigate fisheries violations and bring wrongdoers to justice,” said Chris Oliver, Assistant Administrator for NOAA Fisheries.
The charges arose out of an undercover investigation in which federal agents posed as organized crime figures interested in buying Carlos Seafood. From 2012 to January 2016, Rafael routinely lied to the National Oceanic and Atmospheric Administration (NOAA) about the quantity and species of fish his boats caught in order to evade federal quotas designed to guarantee the sustainability of certain fish species.
During that period, Rafael misreported to NOAA approximately 782,812 pounds of fish, telling NOAA that the fish was haddock, or some other abundant species subject to high quotas, when in fact the fish was cod, sole, or other species subject to strict quotas. After submitting false records to federal regulators, Rafael sold much of the fish to a wholesale business in New York City in exchange for duffle bags of cash. During meetings with the undercover agents, Rafael said that in his most recent dealings with the New York buyer he received $668,000 in cash. Rafael smuggled at least some of that cash out of the United States to his native Portugal, hiding it there to evade federal taxation on that revenue.
Acting U.S. Attorney Weinreb; IRS-CI SAC Garland; Rear Admiral Poulin; and Assistant Administrator Oliver made the announcement today. Assistant U.S. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit prosecuted the case.
New Jersey Man Sentenced to Prison for Wire FraudRead the Press Release
ALBANY, NEW YORK – Michael Pampalone, age 34, of Elizabeth, New Jersey, was sentenced today to 24 months in prison for stealing $132,450 from a client.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
Pampalone pled guilty to wire fraud in April 2017. He admitted that in 2013, he stole money that he had promised to hold in escrow for an East Greenbush, New York, man seeking a mortgage. After the client sent him two wires totaling $132,450, Pampalone withdrew the money and used it for personal expenses. In the following months, Pampalone told the client an elaborate, false story about the location of his money.
United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release to begin after Pampalone’s release from prison. Pampalone was also ordered to pay restitution to the victim in the amount of $132,450.
This case was investigated by the USPIS and New York State Police, and was prosecuted by Assistant United States Attorney Wayne A. Myers.
New Hampshire Company Sentenced for Trafficking Counterfeit Patriots Playoff T-ShirtsRead the Press Release
BOSTON – A New Hampshire company was sentenced today in federal court in Boston for trafficking counterfeit New England Patriots AFC Championship and Super Bowl t-shirts during the 2015 NFL playoffs.
At the sentencing hearing, CK Productions Inc., based in Pelham, N.H., was ordered by U.S. Senior District Court Judge Mark L. Wolf to pay restitution in the amount of $29,405 to the NFL and a fine of $30,000. In April 2017, CK productions pleaded guilty to trafficking in counterfeit goods.
From January through February 2015, CK Productions printed and sold approximately 1,724 counterfeit t-shirts, with a total retail value of approximately $29,405. The playoff t-shirts bore the trademarked words “Patriots” and “Super Bowl” and pictured the Patriots logo.
NEW ENGLAND PATRIOTS LLCActing United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Adam Bookbinder, Chief of Weinreb’s Cyber Crime Unit, prosecuted the case.
Missouri Man Pleads Guilty to Bank Robbery in Osage CityRead the Press Release
WICHITA, KAN. – A Missouri man pleaded guilty Monday to robbing a bank in Osage City, Kan., U.S. Attorney Tom Beall said.
Hunter Lee Prewitt, 28, Mountain Grove, Mo., pleaded guilty to one count of bank robbery. He admitted he robbed the Landmark National Bank at 106 South 6th Street in Osage City. Prewitt gave a teller a note saying: “This a robbery. Give me all one hundreds, fifties and twenties.” He left the bank with cash and drove away in a white pickup truck.
Starting with a description of the truck, investigators obtained video surveillance photos and followed Prewitt’s movements including a stop at a gas station in Osage City before the robbery and a pawn shop in Lyndon, Kan. The Missouri Highway Patrol used that information to identify a 2003 Ford F-150 pickup registered to Prewitt. A crime intelligence analyst with the Kansas Bureau of Investigation conducted a search of law enforcement tag readers and he found more information on Prewitt and the truck. Prewitt was arrested outside Springfield, Mo.
Sentencing is set for Dec. 18. Bank robbery carries a penalty of up to 20 years in a federal prison and a fine up to $250,000.
Beall commended the FBI, the Kansas Bureau of Investigation, the Osage County Sheriff’s Office, the Missouri State Highway Patrol, the Heart of America Computer Forensics Laboratory and Assistant U.S. Attorney Jared Maag for their work on the case.
Mexican Citizen Sentenced to Time Served for Alien SmugglingRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Silvino Orduna-Cabrera, 40, a Mexican citizen, was sentenced in U.S. District Court by Judge D. Brock Hornby to time served (63 days) for alien smuggling. The defendant pleaded guilty on August 31, 2017. He is subject to deportation.
According to court documents, on July 17, 2017, the defendant dropped off two Mexican citizens who had previously been removed from the United States on the Canadian side of the border with the United States near Norton, Vermont. The defendant then drove into the United States at the Norton Port of Entry. The two Mexican citizens walked across the border illegally and were picked up by the defendant who drove them to Maine. The investigation began the next day when a roadside worker found a passport belonging to one of the Mexican citizens near Norton. The worker gave the passport to a Border Patrol agent assigned to the Beecher Falls, Vermont station which placed an alert regarding a possible smuggling event that led to the Mexican citizens’ arrests in Maine.
U.S. Border Patrol Swanton Sector Chief Patrol Agent John Pfeifer stated that: “this case is an excellent example of the regular information sharing between the components of the Department of Homeland Security to prevent criminal aliens from entering into and remaining in the United States. The Swanton Sector also appreciates the local citizens and workers that alert agents to potential criminal activity.”
The investigation was conducted by the U.S. Border Patrol and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Mexican Citizen Sentenced for Possessing Fraudulent Green CardRead the Press Release
ALBANY, NEW YORK – Victorico Catarino Ramirez, age 23, and a citizen of Mexico, was sentenced today to time served (98 days in jail) for possessing a fraudulent alien registration receipt card, commonly referred to as a “green card.”
The announcement was made by Acting United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Catarino Ramirez admitted that he was never issued a valid green card, that he had purchased the counterfeit green card from an individual in Saratoga Springs, and that he used it to obtain work with various employers in Saratoga Springs. The card bore Catarino Ramirez’s photograph but displayed the immigration number of another person.
Following the sentencing, Catarino Ramirez was remanded to the custody of the Department of Homeland Security, for removal proceedings
This case was investigated by HSI and the United States Postal Inspection Service, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Methamphetamine Distributor Sentenced to 20 Years in Federal PrisonRead the Press Release
DALLAS — This morning, U.S. District Judge David C. Godbey sentenced Raul Garibay, 25, of Grand Prairie, Texas, to 240 months in federal prison, following his guilty plea in March 2017 to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
Co-defendants Alfonso Mercado-Cruz, 32, Gerardo Galvan, 28, and Fernando Mora-Martinez, 43, also pleaded guilty to their role in the conspiracy. Judge Godbey sentenced Mora-Martinez to 66 months in prison and Galvan to 70 months in prison. Mercado-Cruz is scheduled to be sentenced on October 2, 2017.
According to plea documents filed in Garibay’s case, from January l, 2016 through May 19, 2016, Garibay, along with Galvan, Mercado-Cruz and Mora-Martinez conspired to possess with intent to distribute 50 grams or more of methamphetamine. The defendants used a trailer house, equipped with only a stove, in Grand Prairie, Texas, to cook and prepare methamphetamine for distribution.
A search of the trailer house revealed approximately 4 kilograms of methamphetamine in liquid, powder, and crystal form in various stages of processing.
The Drug Enforcement Administration, Lewisville Police Department, Grand Prairie Police Department, and the Dallas Police Department investigated the case.
Assistant U.S. Attorney George Leal is in charge of the prosecution.
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Malden Woman Pleads Guilty to Theft of Government BenefitsRead the Press Release
BOSTON – A Malden woman pleaded guilty today to collecting over $176,000 in government benefits by providing false information about her family.
Julie Mijal, 40, pleaded guilty to three counts of theft of public money and three counts of making false statements. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Dec. 13, 2017.
Mijal has lived in Malden with her children and their father since at least 2003. During that time, Mijal and her children’s father owned a house together and used the same address on their driver’s licenses, tax returns and other records.
During the same years, however, Mijal collected needs-based Supplemental Security Income (SSI) benefits on behalf of her child by telling the Social Security Administration that her child only lived with her and a sibling, and not with the child’s father. Social Security uses the household’s total income to determine whether someone is eligible for SSI benefits. As a result, Social Security did not count the father’s income when determining whether Mijal’s child was eligible for benefits. Mijal collected $87,053 in SSI benefits that she would not have received if she had reported that her children’s father was also part of the household. In a similar manner, Mijal collected $47,745 in Supplemental Nutrition Assistance Program benefits and $41,435 in MassHealth benefits by failing to disclose that her children’s father lived with them.
The charge of theft of public money provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of making a false statement provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Weinreb’s Major Crimes Unit is prosecuting the case.
Las Vegas Man Sentenced to Two Years in Prison for His Role in Multi-Million Dollar Advance Fee Business Loan Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 24 months in prison for his participation in a $3.2 million advance fee scheme to fraudulently obtain money from victims seeking business loans, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Ronald Gene Morgan, 62, pleaded guilty in February to one count of wire fraud. In addition to the term of imprisonment, U.S. District Judge James C. Mahan sentenced Morgan to three years of supervised release. Morgan agreed to pay $3,000,382 in restitution to victims of the fraud scheme.
According to the plea agreement, from March 2009 to April 2011, Morgan and others operated Argent Asset Management and Argent Securities, an Illinois-incorporated company and a Florida-incorporated company, respectively. Morgan admitted that he falsely promised victims in Las Vegas and elsewhere that he would provide business loans by using Argent assets to acquire bank-issued bonds at a discount and re-sell the bonds at face value to an investor, thereby producing hundreds of millions of dollars.
As part of the scheme, Morgan lulled the victims by creating and sending false communications and documents depicting escrow account balances containing millions of dollars held on behalf of the clients. He knew that no such funds were held in escrow. He required victims to pay substantial fees in advance of obtaining the loans and told the victims that their funds would be held in escrow, would be refunded if the loans were not obtained, and would be used to obtain the loans. He knew that Argent Securities had no assets. Morgan used the fees paid by victims for his own personal use, to recruit other victims, and to repay portions of other victims fees in order to conceal the fraud scheme.
The case was investigated by the FBI; and prosecuted by Assistant U.S. Attorneys Kathryn Newman and Nicholas D. Dickinson.
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Kern County Man Sentenced for Marijuana Cultivation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Russell Lee Riggs, 69, of Weldon, was sentenced today to five years in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana grown in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
The sentence was imposed following his guilty plea in June. According to court documents, Riggs delivered supplies and material to a marijuana cultivation site containing over 3,000 marijuana plants in the Fay Creek drainage in the Sequoia National Forest. He also received and removed processed marijuana from the site. Springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout the site, including in a flowing stream. Law enforcement officers also seized marijuana cultivation equipment and supplies, over $7,000 in cash, 16 firearms and over 2,000 rounds of ammunition at the site and during follow-up searches of Riggs’s residence and that of co-defendant Juan Penaloza-Ramirez, 46, a native and citizen of Mexico.
In sentencing Riggs, U.S. District Judge Dale A. Drozd also ordered Riggs to pay $1,719.31 to the U.S. Forest Service for the damage to public land and natural resources caused by the cultivation activities. He also ordered the forfeiture of the seized firearms and ammunition.
Penaloza-Ramirez pleaded guilty and was sentenced in June to serve seven years and three months in prison.
This case was the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration (DEA), Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives, Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, California Department of Fish and Wildlife, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), and Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Keams Canyon Man Sentenced to Prison for Assaulting Federal OfficerRead the Press Release
PHOENIX – Today, Elan Nash, 30, of Keams Canyon, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 29 months’ imprisonment, in addition to 8 months’ imprisonment previously served on a related case in the Hopi Tribal Court. Nash had previously pleaded guilty to assault resulting in serious bodily injury.
On June 30, 2016, an officer with the Bureau of Indian Affairs – Office of Justice Services (Hopi Agency) observed Nash to be intoxicated and, after speaking with him, attempted to place Nash under arrest for public intoxication. Nash resisted arrest and assaulted the officer. In doing so, he seriously injured the officer’s hand. Nash is a member of the Hopi tribe and the assault occurred within the Hopi Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8002-PCT-SPL
RELEASE NUMBER: 2017-092_Nash
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Jury Convicts Tax Preparer for Filing False ReturnsRead the Press Release
BIRMINGHAM – A federal jury on Friday convicted an Atlanta-area woman on 13 tax-related counts following a weeklong trial in U.S. District Court, announced U.S. Attorney Jay E. Town and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey.
The jury convicted PATRICE ANDERSON, 37, of Fayetteville, Ga., for using her Birmingham-area tax preparation business, Queen’s Fast Tax, to file tax returns on behalf of others in 2010 and 2011 that she knew contained false information. The jury found Anderson guilty of 12 counts of aiding or assisting others to prepare and file false income tax returns and one count of filing her own false income tax return for 2010.
According to evidence during the five-day trial before U.S. District Court Judge R. David Proctor, Anderson filed tax returns that claimed refundable credits her clients were not entitled to so that they would receive inflated tax refunds from the government. In return, Anderson would charge the clients abnormally high fees to file their taxes. Anderson charged her clients up to $3,000 per fraudulent tax return, according to testimony.
Anderson testified during the trial that she included only information given to her by clients on the returns she prepared. The government presented evidence, however, that even Anderson’s own 2010, 2011 and 2012 tax returns contained some of the same false items that were characteristic of the fraudulent tax returns she filed for her clients.
Anderson will face up to three years in prison.
IRS, Criminal Investigation, investigated the case, which Assistant U.S. Attorney Xavier Carter prosecuted.
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Juneau Man Convicted for Receipt of Child PornographyRead the Press Release
Juneau, Alaska – Acting U.S. Attorney Bryan Schroder announced today that on Friday, Sept. 22, 2017, a federal jury of six women and six men convicted a Juneau man of receipt of child pornography.
Jim Wayne Thornhill, 40, of Juneau, was found guilty after a three-day trial before Chief U.S. District Judge Timothy M. Burgess. Sentencing has been scheduled for Nov. 30, 2017, in Juneau. Thornhill faces a maximum penalty of no less than 15 years and up to 40 years in prison, a fine of $250,000, a five-year to life term of supervised release, and a $100 special assessment. Thornhill is a convicted sex offender, who was convicted by the State of Alaska for sexual abuse of a minor in the second degree in 2007, where he had repeatedly sexually abused a child from the age of six to 11.
According to the evidence presented at trial, the Federal Bureau of Investigation (FBI) received a report of harm forwarded from the National Center for Missing and Exploited Children (NCMEC) and the Internet Crimes Against Children (ICAC) to the Juneau Police Department. The FBI subsequently identified Thornhill as a person of interest.
On Oct. 7, 2015, Thornhill was contacted by the FBI and was interviewed, where he denied having a cell phone. The FBI learned that Thornhill’s employer located a cell phone and handwritten lists with search terms and internet addresses that were associated with child pornography. The FBI subsequently interviewed Thornhill again on Oct. 13, 2015, where he admitted to writing the handwritten lists of search terms, ownership of the cell phone, and accessing the Internet with the cell phone between September and November 2014. He claimed he was looking for adult and child pornography that were “just naked kids.” Based on this information, the FBI obtained a search warrant for Thornhill’s cell phone which revealed at least 100 images of child pornography that were downloaded between the dates of Nov. 3, 2014, through Dec. 25, 2014. Many of the images were of young pre-pubescent children engaged in sexually explicit conduct, including images that depicted an adult male sexually assaulting a toddler.
The FBI investigated this case, with assistance from the Juneau Police Department. Assistant U.S. Attorney Jack Schmidt, located in the Juneau Branch Office, prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood, U.S. Marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jessie K. Liu Takes Office as United States AttorneyRead the Press Release
WASHINGTON – Jessie K. Liu has taken office as United States Attorney for the District of Columbia. She succeeds Channing D. Phillips, who had been serving in the position since Oct. 19, 2015.
President Trump nominated Ms. Liu on June 12, 2017 to serve as U.S. Attorney, and the Senate confirmed the nomination on Sept. 14, 2017. She was sworn in by Deputy Attorney General Rod J. Rosenstein. She formally took office at 12:01 a.m. on Sunday, Sept. 24.
Ms. Liu, 44, had been Deputy General Counsel for the United States Department of the Treasury. She previously was a partner at the law firms of Morrison & Foerster LLP and Jenner & Block LLP, where her practice focused on litigation, investigations, and compliance.
In addition to her work in private practice, U.S. Attorney Liu has extensive experience with the Department of Justice. From 2002 until 2006, she was an Assistant U.S. Attorney in the U.S. Attorney’s Office for the District of Columbia, handling criminal and appellate cases. She then moved to the Department of Justice, where she served in a series of positions until 2009, including Deputy Chief of Staff for the National Security Division, Counsel to the Deputy Attorney General, and Deputy Assistant Attorney General in the Civil Rights Division.
“I am honored to return to the United States Attorney’s Office and looking forward to working with the people here, our many law enforcement partners, and the community,” said U.S. Attorney Liu.
U.S. Attorney Liu graduated with honors from Harvard University in 1995 and obtained her juris doctorate from Yale Law School in 1998.
Because of its size and varied responsibilities, the U.S. Attorney’s Office for the District of Columbia is unique among the 94 U.S. Attorney’s Offices across the nation. It is the largest of the U.S. Attorney’s Offices, with more than 300 attorneys and a similar number of support employees. The Office is responsible for the prosecution of all federal crimes, including terrorism, public corruption, firearms, and other offenses, as well as the prosecution of all serious local crime committed by adults in the District of Columbia. The Office also represents the United States and its departments and agencies in civil proceedings filed in federal court in the District of Columbia.
As she took on her new responsibilities, U.S. Attorney Liu thanked Mr. Phillips for his many years of public service with the U.S. Attorney’s Office and the Department of Justice.
Huntsville Defense Contractor Sentenced for Defrauding DTRA, NASARead the Press Release
HUNTSVILLE – A federal judge last week sentenced a Huntsville defense contractor on criminal charges of falsely obtaining Small Business Innovation Research contracts with the Department of Defense and the National Aeronautics and Space Administration, announced U.S. Attorney Jay E. Town, NASA Inspector General Paul Martin and Defense Criminal Investigative Service Special Agent in Charge John Khin.
U.S. District Court Judge Abdul K. Kallon ordered the contractor, Scientic Inc., to repay the full amount of the contracts with the Defense Threat Reduction Agency and NASA, which totaled $250,000, and fined the company $30,000. Judge Kallon also placed Scientic on three years’ probation.
“Bringing those to justice who defraud the United States is among my office’s highest priorities,” Town said. “We are already aggressively expanding our investigative oversight into this illicit behavior.”
“The NASA Office of Inspector General will continue to aggressively investigate those who defraud NASA programs and waste taxpayers' money,” Martin said. “The NASA OIG congratulates the investigative and prosecution team for their hard work and professionalism.”
“In concert with our partner agencies, DCIS aggressively investigates fraud and corruption that undermines the integrity of Department of Defense programs and contracts,” Khin said. “We must do all we can to preserve precious American taxpayer dollars while ensuring our national security.”
Scientic pled guilty in June to making a false statement in order to obtain research contracts with the DTRA and NASA. As part of its plea, Scientic agreed to the fine and restitution.
NASA OIG and DCIS investigated the case, which Assistant U.S. Attorney David Estes prosecuted.
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Gulfport Resident Pleads Guilty to Possession of Child PornographyRead the Press Release
Gulfport, Miss. – Brett Michael Sekinger, age 26, of Waveland, Mississippi, pled guilty on September 21, 2017, to possession of child pornography, announced Acting U.S. Attorney Harold Brittain and FBI Special Agent in Charge Christopher Freeze.
On February 5, 2016, at a residence in Ocean Springs, Mississippi, Sekinger knowingly possessed computers and other electronic components containing visual depictions, in digital still and video format, of minors engaging in sexually explicit conduct.
Sekinger will be sentenced on December 14, 2017, by Chief U.S. District Judge Louis Guirola. He faces a maximum sentence of 20 years in prison, a $250,000 fine, and not less than 5 years to life of supervised release.
This case was investigated by the FBI Jackson Division’s Child Exploitation Task Force, which is composed of agents from the FBI and the Mississippi Attorney General’s Office, officers from the Prentiss County Sheriff’s Office, and prosecutors from the United States Attorney’s Offices in Jackson and Oxford. Assistant U.S. Attorney Andrea Jones is prosecuting the case.
Grand Jury Indicts Washington County Man for Distributing FentanylRead the Press Release
PITTSBURGH - A resident of the City of Washington, Washington County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of distributing and possessing with intent to distribute a quantity of fentanyl, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on August 24, 2017, and unsealed today following his arrest, named Romone Barnes, 31, of Washington, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Barnes distributed and possessed with intent to distribute a quantity of fentanyl on or about June 26, 2017. Barnes is detained pending trial.
The law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
Task Force Officers with the Federal Bureau of Investigation, Pennsylvania State Police, and Washington County District Attorney’s Office Drug Task Force conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fort Thompson Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault with Intent to Commit Murder, Assault with a Dangerous Weapon, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Austin Paul Abernathy, age 26, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 18, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 27, 2017, Abernathy unlawfully assaulted his intimate partner with a knife, with the intent to commit murder. Said assault resulted in substantial bodily injury to the victim.
The charges are merely accusations and Abernathy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Abernathy was released on bond pending trial. A trial date has not been set.
Former Felon Sentenced to 10 Years in Prison for Possession of A FirearmRead the Press Release
RENO, Nev. – A former felon who was found guilty by a jury in June was sentenced today to 10 years in prison for illegal possession of a firearm, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada. United States District Judge Larry R. Hicks presided over the sentencing hearing.
After a three-day jury trial, Ricky Carter Jr., 39, of Reno, was found guilty of one count of felon in possession of a firearm. In November 2016, he illegally possessed a 9mm semiautomatic pistol after prior felony convictions in Washoe County.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Regional Gang Unit. The case was prosecuted by Assistant U.S. Attorney Megan Rachow.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Final Defendant Sentenced in Pierce Commercial Mortgage Fraud InvestigationRead the Press Release
The final defendant in a long running investigation of mortgage fraud at Pierce Commercial Bank was sentenced today in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes. Between 2005 and 2008, BEN LESKE, 40, of Puyallup, worked as a loan officer for PC Bank Home Loans, a division of Pierce Commercial Bank. LESKE pleaded guilty in May 2017, to making false statements on loan applications. Today U.S. District Judge Benjamin H. Settle sentenced LESKE to 30 days of home detention, 100 hours of community service, two years of supervised release and more than $131,000 in restitution.
“Those whose crimes deepened the damage from the 2008 financial crisis deserve to be punished just like any other criminal, said U.S. Attorney Annette L. Hayes. “This defendant and 14 other well-paid bank employees from loan officers to bank vice presidents forged documents and made false statements to close loans they knew were not sound. The result was the collapse of Pierce Commercial Bank and the expenditure of nearly $7 million of taxpayer funds to address the financial mess these defendants left behind.”
According to records in the case, between 2004 and 2008, the architect of the fraud, Shawn L. Portmann, and other members of the conspiracy submitted false documents within various loan documents and applications. They falsified information about the borrowers’ qualifications as well as their intention to reside in the homes being financed. A review of a sample of conventional and HUD loans showed that members of the conspiracy closed over 300 loans with false and fraudulent documents and information. More than half of this sample of loans have defaulted or otherwise caused loss, causing an estimated loss of more than $10 million to Pierce Commercial Bank, secondary investors and HUD/FHA. Court records detail multiple false statements included in loan documents regarding an applicant’s employment, income, and intention to reside in the property. Pierce Commercial Bank was closed by regulators in November 2010. Pierce Commercial Bank received $6.8 million from Troubled Asset Relief Program (TARP) in January 2009. This money was never repaid.
“With the sentencing of mortgage banker Ben Leske, 15 bank employees have now faced justice for a conspiracy that directly contributed to Pierce Commercial Bank’s failure and the loss of $6.8 million in TARP bailout funds,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. “Ringleader Shawn L. Portmann, who was sentenced to 10 years in federal prison for his crimes, created a culture at PC Bank Home Loans, Pierce Commercial Bank’s mortgage lending office, where all loans applications were expected to approved, regardless of the applier’s ability to repay. Under this ‘close every loan’ culture, he and his co-conspirators submitted false and fraudulent documents showing borrowers who appeared qualified for mortgages when in fact they were not. As a result, PC Bank Home Loans greatly expanded the residential mortgage lending operations of Pierce Commercial Bank prior to the financial crisis from no more than $3.9 million a month to nearly $500 million a year. I thank the U.S. Attorney’s Office for their commitment to fighting fraud related to TARP.”
Shawn L. Portmann and nine other defendants were prosecuted and sentenced between 2011 and 2013, with sentences ranging from probation to the ten-year prison sentence for Portmann. Five additional conspirators were charged in 2017. In addition to LESKE, four others sentenced in the 2017 case include: Sam Tuttle, 54, of Tacoma, a Vice-President of PC Bank Home Loans was sentenced to three years of supervised release; Angela Crozier, 44, of Olympia, a loan processor was sentenced to one year of supervised release; Ed Rounds, 53 of Puyallup, a loan officer was sentenced to two years of supervised release and Craig Meyer, 55, of Dickenson, Texas, a Vice President and loan officer was sentenced to one year of supervised release.
The case was investigated by the FBI, the HUD Office of Inspector General (HUD-OIG), Internal Revenue Service Office of Criminal Investigation (IRS-CI), the Washington State Department of Financial Institutions, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) and the United States Postal Inspection Service.
The case was prosecuted by Assistant United States Attorney Brian Werner and Special Assistant United States Attorney Hugo Torres. Mr. Torres is a King County Senior Deputy Prosecuting Attorney specially designated to prosecute mortgage fraud in federal court.
Federal Jury Finds Minneapolis Man Guilty of Tax FraudRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the conviction of HASSAN OSMAN, 52, on charges of conspiracy, tax fraud and failing to appear on the day of trial. OSMAN was charged by superseding indictment on May 3, 2016. Following a four-day trial before U.S. District Judge David S. Doty, the jury convicted OSMAN on one count of conspiracy, 13 counts of aiding and assisting in the preparation of a false tax return, and one count of unlawful flight from prosecution.
“Hassan Osman participated in a tax fraud conspiracy that involved nearly 100 fraudulent tax returns claiming more than $1 million in fraudulent tax refunds,” said Assistant U.S. Attorney Joe Thompson. “Osman’s attempt to avoid responsibility for his actions by fleeing the country was unsuccessful. Thanks to the IRS and US Marshals, Osman was arrested in Canada and extradited back to the United States to face trial. He now faces the prospect of spending additional time in prison based on his flight from prosecution.”
“Hassan Osman’s attempt to evade the law was thwarted and he was found guilty of conspiracy to aid and assist in the preparation and filing of false tax returns by a jury of his peers,” said IRS Criminal Investigation, Acting Special Agent in Charge Hubbard Burgess, St. Paul Field Office. “Other persons thinking about participating in a scheme like this should understand that the consequences may include prison, being branded a convicted felon for the rest of their lives and paying restitution to the government.”
As proven at trial, between January 2008 and April 2011, OSMAN and his co-conspirators devised and carried out a tax fraud scheme by filing false federal income tax returns claiming fraudulent refunds. OSMAN and his co-conspirators prepared fraudulent tax returns using fake W-2s created in the name of several front companies. Most of the returns were filed electronically, either from coffee shops or from a business in south Minneapolis owned by OSMAN. The resulting refunds were split among OSMAN and his co-conspirators. Often times, the fraudulent refunds were deposited onto prepaid debit cards and sent to addresses controlled by OSMAN or his co-conspirators. During the course of the conspiracy, OSMAN and his co-conspirators filed more than 90 income tax returns claiming approximately $1,012,877 in fraudulent tax refunds.
As proven at trial, OSMAN was arrested on April 17, 2015 and was later released on bond pending trial. On July 28, 2015, when OSMAN failed to appear for a court ordered pretrial conference, a warrant was issued for his arrest. On April 14, 2016, OSMAN was arrested in Toronto, Canada and later extradited back to the United States to face trial.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Michelle E. Jones.
Defendant Information:
HASSAN OSMAN, 52
Minneapolis, Minn.
Convicted:
- Conspiracy, 1 count
- Aiding and assisting in the preparation of a false tax return, 13 counts
- Failure to appear, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Court Permanently Shuts Down Detroit Tax Preparation BusinessRead the Press Release
On Sept. 25, a federal court in Detroit, Michigan has permanently barred Tax Pioneer Co. and its owner Dieasha Davis from operating a tax return preparation business and preparing federal tax returns for others, the Justice Department announced today. Tax Pioneer Co. and Davis agreed to the civil injunction order entered against them.
According to the suit filed in January 2017, Davis, a former manager and tax return preparer for a Liberty Tax Service franchisee, prepared fraudulent tax returns both during her time at Liberty Tax Service and, since 2013, at Tax Pioneer. Davis and Tax Pioneer prepared tax returns with false or inflated income and expenses, bogus dependents, improper filing statuses, and false itemized deductions, all with the purpose of fraudulently maximizing customer refunds and refundable credits, according to the complaint. The government also alleges that Davis advised at least one customer audited by the Internal Revenue Service (IRS) to submit false records to the IRS in an effort to convince auditors that bogus expenses claimed on the customer’s tax returns were, in fact, legitimate.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Agent, Colombian Narcotics Kingpin and Colombian National Indicted for Conspiracy, Corruption and ObstructionRead the Press Release
A Homeland Security Investigations (HSI) Special Agent and two Colombian nationals were charged today by a federal grand jury in the Southern District of Florida with conspiracy, corruption and obstruction of justice charges stemming from their participation in a bribery scheme that resulted in the dismissal of an indictment filed against one of the Colombian nationals in exchange for cash and other things of value, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Michael T. Moreland of the Office of Professional Responsibility (OPR), Immigration and Customs Enforcement’s (ICE) Southeast Region; and Special Agent in Charge Jay Donly of the Office of Inspector General (OIG), HSI.
According to the indictment, Special Agent Christopher V. Ciccione, II, 52, Phoenixville, Pennsylvania, was the case agent for Operation Cornerstone, a large-scale Organized Crime and Drug Enforcement Task Force case that resulted in indictments of Colombia-based cocaine traffickers from the Cali Cartel, including Jose Piedrahita Ceballos, a Colombian national. The indictment alleges that Piedrahita gave benefits to Ciccione in exchange for official acts that resulted in the dismissal of the indictment against Piedrahita. Juan Carlos Velasco, also a Colombian national, served as the intermediary between Ciccione and Piedrahita. Ciccione ultimately succeeded in getting the Cornerstone indictment dismissed against Piedrahita in exchange for approximately $20,000 in cash, dinner, drinks and prostitution.
The indictment further alleges that while maintaining contact with Piedrahita, Ciccione misled the U.S. Attorney’s Office and HSI management and altered DHS records to represent to decision makers that Piedrahita was “unidentified” and that his case should be dismissed because “all investigative efforts” were “exhausted.” In addition, Ciccone falsified the concurrence of several other federal agents and even attempted to parole Piedrahita into the U.S.
The U.S. Department of the Treasury's Office of Foreign Assets Control designated Piedrahita as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act on May 3, 2016.
ICE-OPR, Department of Homeland Security’s OIG and the FBI investigated the case. The Department of Justice’s Office of International Affairs and Office of the Judicial Attaché in Colombia, and the Drug Enforcement Administration provided valuable assistance to the investigation. Trial Attorneys Luke Cass and Jennifer A. Clarke of the Criminal Division’s Public Integrity Section are prosecuting the case.
Fairfax Attorney Charged with Embezzling $1.4 Million from Virginia Senator, Canadian Business, and Autism OrganizationRead the Press Release
ALEXANDRIA, Va. – A Fairfax attorney has been indicted by a federal grand jury for his alleged role in three fraud schemes totaling over $1.4 million in losses, including embezzling over $653,000 from Virginia State Senator Richard Saslaw’s campaign fund.
According to the indictment that was unsealed today at his initial appearance in federal court, David H. Miller, 68, of Fairfax, participated in three fraud schemes from 2011 through 2014. In the first scheme, Miller, an attorney, along with his wife, Linda Wallis, created two fake law firms, the first known as Federal Legal Associates, and the second known as The Straile Group. Miller and Wallis used the two fake law firms to fraudulently bill Miller’s employer, SkyLink Air and Logistic Support, Inc. (SkyLink), a Canadian based aviation company that maintained an office in Dulles. Miller and Wallis allegedly caused approximately $368,400 in losses to SkyLink.
The second scheme alleged in the indictment details the embezzlement of approximately $653,000 from the campaign account of Senator Saslaw. From June 2013 to September 2014, Wallis served as the treasurer of the Saslaw for State Senate campaign. During that time, Wallis issued approximately 73 fraudulent checks from the Saslaw for State Senate campaign bank account, which totaled approximately $653,000. All of the checks were issued without the knowledge or permission of Senator Saslaw or his campaign staff, and were ultimately deposited into accounts that were controlled by Miller or Wallis. Miller and Wallis used the funds embezzled from Senator Saslaw’s campaign account for personal expenses, including to pay their home mortgage and to retain a personal lawyer.
The third scheme detailed in the indictment alleges misuse of funds from a charitable organization, which Miller co-founded and for which Wallis served as the Executive Director. The organization, known as The Community College Consortium on Autism and Intellectual Disabilities (CCCAID), claimed to provide assistance to community colleges to develop programs for individuals with intellectual disabilities. Between April 2010 and April 2013, community colleges located around the country and an individual donated approximately $783,000 to CCCAID. The funds contributed to CCCAID were supposed to be used to further the mission of the organization and not to enrich Miller or Wallis. Despite these restrictions, from April 2010 to August 2014, Wallis authorized approximately $482,000 in transfers from CCCAID’s account to other bank accounts controlled by Miller and Wallis. A significant percentage of the $482,000 embezzled from CCCAID was used to pay Miller and Wallis’s personal expenses, such as mortgage payments, upgrades to an oceanfront property owned by Miller in Bethany Beach, Delaware, and travel on private aircraft from Manassas, Virginia to Montego Bay, Jamaica for a family vacation.
Miller’s co-conspirator and wife, Linda Diane Wallis, previously pleaded guilty. Wallis was sentenced to 56 months in prison on March 18, 2016.
Miller has been charged with conspiracy to commit mail and wire fraud, conspiracy to launder monetary instruments, mail fraud, wire fraud, and aggravated identity theft, and faces a maximum penalty of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Uzo Asonye and Samantha Bateman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-213.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
FBI Releases 2016 Report on Crime in the United StatesRead the Press Release
The Federal Bureau of Investigation today released the 2016 edition of its Crime in the United States (CIUS) report, a part of the FBI’s Uniform Crime Reports (UCR). The report, which covers January-December 2016, reaffirms that the worrying violent crime increase that began in 2015 after many years of decline was not an isolated incident. The violent crime rate increased by 3.4 percent nationwide in 2016, the largest single-year increase in 25 years. The nationwide homicide rate increased by 7.9 percent, for a total increase of more than 20 percent in the nationwide homicide rate since 2014.
“For the sake of all Americans, we must confront and turn back the rising tide of violent crime. And we must do it together,” Attorney General Jeff Sessions said. “The Department of Justice is committed to working with our state, local, and tribal partners across the country to deter violent crime, dismantle criminal organizations and gangs, stop the scourge of drug trafficking, and send a strong message to criminals that we will not surrender our communities to lawlessness and violence.”
The report released today also adjusts and corrects numbers for 2015, showing that the violent crime rate actually increased by 3.3 percent (as opposed to 3.1 percent, as previously reported) in 2015. The violent crime rate increases in 2015 and 2016 each represented the largest single-year increases in the violent crime rate since 1991. These increases were nationwide, with the average violent crime rate increasing in cities over 250,000 in population, in cities under 10,000 in population, in suburban areas, and in every size in-between. In addition to the 7.9 percent homicide rate increase in 2016, the corrected numbers show the homicide rate increased by 11.4 percent in 2015, for a total increase of more than 20 percent from 2014-2016. Rapes, robberies, and aggravated assaults also each continued to increase nationwide in 2016.
For the full report click here.Eagle Butte Man Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Distribution of a Controlled Substance was sentenced on September 18, 2017, by U.S. District Judge Roberto A. Lange.
Corey Ryan DeHorse, age 24, was sentenced to 8 months in custody, followed by 3 years of supervised release, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
DeHorse was indicted by a federal grand jury on November 9, 2016. He pled guilty on June 27, 2017.
DeHorse admitted that on August 5, 2016, he knowingly and intentionally distributed a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, to another individual for $100.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
DeHorse was immediately turned over to the custody of the U.S. Marshals Service.