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7 November 2017
Former IRS Employee Sentenced to 27 Months for Conviction on Aggravated Identity Theft and False Statement ChargesRead the Press Release
ALBUQUERQUE – Joan D. Mobley, 55, of Socorro, N.M., was sentenced today in federal court in Santa Fe, N.M., to 27 months in prison followed by three years of supervised release for her conviction on a false statement charge and two aggravated identity theft charges. Mobley also was ordered to pay restitution to the IRS in the amount of $39,738.32 and a $4,000.00 fine. Acting U.S. Attorney James D. Tierney and Cordale Lamb of Denver Field Division of the Treasury Inspector General for Tax Administration (TIGTA) announced the sentence.
Mobley is a former employee of the Internal Revenue Service (IRS). She began working for the IRS in 1986 and was a revenue agent at the IRS office in Albuquerque at the time she committed the crimes to which she pleaded guilty. As a revenue agent, Mobley was responsible for performing audits of small businesses and self-employed taxpayers.
On Jan. 3, 2014, a federal grand jury filed a 28-count indictment charging Mobley with 14 counts of making false statements and 14 counts of aggravated identity theft. According to the indictment, between Jan. 2011 and Dec. 2011, Mobley falsely stated and represented to the IRS that certain taxpayers either had consented to extending the time for assessing employment taxes or agreed to the collection and assessment of additional taxes. The indictment also alleged that Mobley used the identification of those taxpayers in making those false statements without obtaining consent.
On March 13, 2017, Mobley pled guilty to one false statements charge and two aggravated identity theft charges. In her plea agreement, Mobley acknowledged that while she was employed as a revenue agent for the IRS and was responsible for conducting audits of small businesses, she was assigned to audit a business located in California. Mobley acknowledged that, instead of completing the audit as required, she falsified official records to indicate that she had completed the audit. Mobley also acknowledged signing the name of the business’s president on the records even though she did not have permission to do so.
Mobley falsified these records knowing that they constituted false statements under federal laws and concerned matters that were within the jurisdiction of the IRS. One of the records falsified by Mobley was dated Jan. 10, 2011, and stated that a representative of the aforementioned California-based business had agreed to an extension of time to assess employment taxes. Another record, dated April 7, 2011, falsely stated that the business had agreed to the assessment and collection of additional taxes. Mobley falsified these records knowing that no representative of the business had agreed either to the extension or to the assessment and collection of additional taxes. She acknowledged falsifying the records while in New Mexico.
This case was investigated by the Denver Field Division of TIGTA and was prosecuted by Assistant U.S. Sean J. Sullivan.
Former BOP Employee Sentenced for Engaging in Sexual Acts with an InmateRead the Press Release
FORT WORTH, Texas — Matthew McGaugh, 49, of Hensley, Arkansas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 12 months in federal prison following his guilty plea in July 2017 to an indictment charging one count of sexual abuse of a ward, announced U.S. Attorney John Parker of the Northern District of Texas.
McGaugh, who is on bond, was ordered to surrender to the Bureau of Prisons on December 19, 2017.
According to documents filed in the case, on November 1, 2016, McGaugh, who was a Bureau of Prisons (BOP) Case Manager, engaged in multiple sexual acts with an inmate assigned to the BOP, Carswell Federal Medical Center in Fort Worth, Texas. At the time these sexual acts occurred, the inmate was under the supervisory authority of McGaugh.
The Department of Justice Office of the Inspector General investigated the case. Deputy Criminal Chief Assistant United States Attorney Alex Lewis prosecuted.
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Florida Man Admits Role in Conspiracy to Distribute More Than 45 Kilograms of Narcotics in New JerseyRead the Press Release
TRENTON, N.J. – A Miami man today admitted his role in a conspiracy to distribute over 45 kilograms of narcotics, including heroin, fentanyl, cocaine, and morphine, Acting U.S. Attorney William E. Fitzpatrick announced.
Sauro D. Estevez Figueredo, 49, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Count One of an indictment charging him with conspiracy to possess with intent to distribute more than one kilogram of heroin, five kilograms or more of cocaine, 400 grams or more of fentanyl, and morphine.
Figueredo was originally arrested with Edwin Alamo Jr., 22, Emmanuel Gonzalez, 33, both of Bronx, New York, Alberto Mora, 53, of Morriston, Florida, and Porfirio Peralta-Nunez, 38, of Jersey City, New Jersey, in February 2016. All five defendants have since pleaded guilty to their roles in the drug distribution conspiracy.
According to the documents filed in this case and statements made in court:
On Feb. 5, 2016, law enforcement observed a tractor trailer, driven by Figueredo and Mora, parked at an intersection near a store in Clifton, New Jersey. That afternoon, Gonzalez and Alamo drove to the tractor trailer and left with a suitcase given to them by Mora. Later, Peralta-Nunez arrived at the tractor trailer with two empty bags and left shortly afterwards with the bags filled.
Figueredo admitted that he collected narcotics and transported them via tractor trailer to New Jersey. He also admitted that Mora handed out a suitcase with 22 kilograms of heroin and afterwards, another conspirator took two bags containing fentanyl, morphine and heroin from the tractor trailer. He further admitted that there were two additional bags on the tractor trailer – one that contained 10 kilograms of fentanyl and one that contained 10 kilograms of cocaine – that would have been provided to other conspirators if not for law enforcement’s intervention.
The drug distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine. Figueredo’s sentencing is scheduled for Feb. 15, 2017.
The government is represented by Assistant U.S. Attorneys Meredith Williams and Elaine Lou of the Criminal Division in Newark.
Acting U.S. Attorney Fitzpatrick credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s guilty plea.
Defense Counsel: Michael D’Alessio Esq., West Orange, New Jersey
Five Individuals Charged in Foreign Bribery Scheme Involving Rolls-Royce Plc and Its U.S. SubsidiaryRead the Press Release
Charges were unsealed today against two former executives of Rolls-Royce plc and its subsidiaries (Rolls-Royce), a former Rolls-Royce employee, a former intermediary for Rolls-Royce in Kazakhstan and an executive of an international engineering consulting firm – all for their alleged participation in a scheme to pay bribes to foreign government officials for the benefit of a U.S.-based Rolls-Royce subsidiary, including to secure a contract to supply equipment and services to power a gas pipeline from Central Asia to China.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Inspector in Charge Regina Faulkerson of the U.S. Postal Inspection Service’s Criminal Investigations Group, Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office made the announcement.
Petros Contoguris, 70, a citizen of Greece residing in Turkey, was charged by an indictment filed in the Southern District of Ohio on Oct. 12, and unsealed today, with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to launder money, seven counts of violating the FCPA and 10 counts of money laundering. Contoguris is believed to be outside of the United States. James Finley, 66, a citizen of the United Kingdom residing in Taiwan, pleaded guilty on July 28, before Chief Judge Edmund A. Sargus Jr. of the Southern District of Ohio, to one count of conspiracy to violate the FCPA and one count of violating the FCPA. Aloysius Johannes Jozef Zuurhout, 53, of the Netherlands; Andreas Kohler, 53, of Austria; and Keith Barnett, 48, of Houston, Texas, each pleaded guilty to one count of conspiracy to violate the FCPA before Chief Judge Sargus on June 13; June 6; and Dec. 20, 2016, respectively.
“The charges announced today against executives, employees, and third parties affiliated with Rolls-Royce, is another example of the Criminal Division’s commitment to holding individuals – and not just corporations – accountable for violating the FCPA,” said Acting Assistant Attorney General Blanco. “Thanks to the coordinated efforts by our prosecutors and agents – working closely with their counterparts in Brazil and at the United Kingdom’s Serious Fraud Office, among others – these defendants, many of whom reside overseas, will face justice in this case, which represents another important step towards leveling the playing field for all ethical and honest businesses.”
“The charges unsealed today reflect the determination and ability of the United States to investigate and prosecute individuals who engage in foreign corrupt business practices, regardless of how sophisticated or far-flung the scheme may be,” said U.S. Attorney Glassman. “We can and will follow the evidence wherever it leads – from Columbus to Kazakhstan and beyond.”
“This type of sophisticated fraud scheme can cause immeasurable economic losses to competitive markets around the world,” said Inspector in Charge Faulkerson. “Anyone who engages in deceptive practices should know they will not go undetected and will be held accountable. The U.S. Postal Inspection Service has an extensive history of successfully investigating complex fraud and corruption cases. The collaborative investigative work conducted by Postal Inspectors and our domestic and international law enforcement partners illustrates our efforts to protect the United States and the international marketplace.”
“Today’s indictment and guilty pleas reveal that those associated with this corruption did knowingly conspire to break the law for their own personal gain,” said Assistant Director Richardson. “No one is above the law, so let today’s announcement be a warning to those who may try to perpetrate a similar scheme that the FBI will aggressively pursue those who attempt to bribe foreign officials for an unfair advantage in the global marketplace.”
“Today’s charges demonstrate the immense capabilities of the FBI’s Washington Field Office international corruption program and the global impact of the anti-corruption program,” said Assistant Director in Charge Vale. “The FBI is committed to holding accountable those who disrupt the level playing field to which companies in the United States and around the world are entitled.”
According to the indictment and informations unsealed today, Contoguris, the founder and chief executive officer of Gravitas & CIE. International Ltd. (Gravitas); Finley, a former senior executive in energy at Rolls-Royce; Barnett, a former regional director in energy at Rolls-Royce; Zuurhout, a former energy sales employee at Rolls-Royce; and Kohler, a managing director at an international engineering and consulting firm, and others, allegedly conspired to pay bribes to foreign officials in exchange for directing business to Rolls-Royce Energy Systems Inc. (RRESI). RRESI was a U.S.-based indirect subsidiary of Rolls-Royce plc, the United Kingdom-based manufacturer and distributor of power systems for the aerospace, defense, marine and energy sectors.
The indictment alleges that Contoguris, working with employees of an international engineering consulting firm (Technical Advisor), including Kohler, devised a scheme with Rolls-Royce executives and employees, including Zuurhout, Barnett and Finley, whereby Rolls-Royce would pay kickbacks to the Technical Advisor employees, and bribes to at least one foreign official, and disguise these payments as commissions to Contoguris’s company, Gravitas, in exchange for helping Rolls-Royce win contracts with Asia Gas Pipeline LLP (AGP).
According to the indictment, AGP was created to build and connect a gas pipeline between Central Asia and China, and the Technical Advisor purported to provide independent engineering consulting advice and other services to AGP. The indictment further alleges that after AGP awarded Rolls-Royce a contract in November 2009, worth approximately $145 million, Rolls-Royce made commission payments to Gravitas, and Contoguris then passed a portion of those commission payments onto the Technical Advisor employees knowing that they would share that money with a foreign official consistent with their corrupt agreement.
In pleading guilty, Finley, Barnett and Zuurhout admitted that they each participated in a conspiracy, going as far back as approximately 1999 and continuing into 2013, to engage commercial advisors who would use their commission payments from Rolls-Royce to bribe foreign officials in a number of countries to help Rolls-Royce secure an improper advantage and obtain and retain business with foreign governments and instrumentalities across the globe.
The charges announced today follow the announcement on Jan. 17, of a deferred prosecution agreement with Rolls-Royce plc and a more than $800 million total penalty as part of a global resolution to investigations by the Department of Justice and U.K. and Brazilian authorities related to the corrupt conduct. The agreement acknowledged Rolls-Royce’s cooperation in this case, including with the Department’s investigation into individuals, and significant remedial measures.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service and the FBI’s International Corruption Squad in Washington, D.C., investigated the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Trial Attorneys Kevin R. Gingras and Vanessa Snyder and Assistant Chief Ephraim Wernick of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Michael J. Marous and Jessica Kim of the Southern District of Ohio are prosecuting the case.
The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The United Kingdom’s Serious Fraud Office provided significant cooperation and assistance in this matter, as did law enforcement colleagues in Brazil, which both coordinated with the Department to reach simultaneous resolutions with Rolls-Royce. The Department also thanks its law enforcement colleagues in Austria, Germany, the Netherlands, Singapore and Turkey.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Federal jury convicts Lake Charles veterinarian, pharmacy in race horse doping conspiracyRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a federal jury found a Lake Charles veterinarian and a Nebraska pharmacy guilty of conspiring to sell an unapproved opioid drug 40 times more powerful than morphine for the purpose of improving the performance of race horses.
Kyle James Hebert, 42, of Lake Charles, La., and Kohll’s Pharmacy & Healthcare Inc. of Omaha, Neb., were found guilty of one count of conspiracy. Hebert was also found guilty of two counts of receipt of adulterated or misbranded drug with the intent to defraud and mislead; and one count of misbranding a drug while held for sale with the intent to defraud and mislead. Kohll’s Pharmacy was also found guilty of two counts of introduction of adulterated or misbranded drug in interstate commerce with intent to defraud and mislead. United States District Judge Donald E. Walter presided over the trial. The defendants’ trial started October 30 and ended on Monday, November 7, 2017 with the jury returning the guilty verdict after deliberating for three and a half hours.
Evidence admitted at trial revealed that from November 11, 2010 to December 2012 Hebert, Kohll’s Pharmacy & Healthcare Inc. of Omaha, Neb., which operated as Essential Pharmacy Compounding, and others conspired to distribute a synthetic form of the drug Dermorphin, which was then given to racehorses to improve their racing performance. Essential Pharmacy Compounding repackaged a synthetic form of the drug that it obtained from a California chemical company, labeled it as D-Peptide, and sold it to Hebert and other veterinarians. Hebert then put the drug into syringes and gave the loaded syringes to the racetrack trainers tasked with the horses’ care. Evidence at trial revealed that Demorphin is a strong painkiller that masks horses’ pain and any pre-existing injuries. Depending on dosage, it can also act as a stimulant when injected in horses. The Food and Drug Administration has not approved the drug for use in humans or animals.
“This office is committed to vigorous prosecution of unlawful practices by pharmacies and/or distributors of harmful drugs that put humans or animals at risk,” Van Hook stated. “We are pleased with this verdict.”
“FDA is responsible for protecting not only human consumers, but also animals, including race horses, from unscrupulous distributors of illegal drugs,” said Justin D. Green, FDA Office of Criminal Investigations’ Miami Field Office. “We will continue to pursue and bring to justice those who attempt to evade the law.”
Hebert faces five years in prison for the conspiracy count and three years in prison for each of the other counts. Kohll’s Pharmacy faces a substantial fine and other penalties based on its felony conviction. The court will set a sentencing date in the future.
The U.S. Food and Drug Administration, Homeland Security Investigations and Louisiana State Police conducted the investigation. Assistant U.S. Attorneys Joseph T. Mickel and David C. Joseph are prosecuting the case.
Federal Grand Jury Returns 166 Count Superseding Indictment Against Local Doctor Whose Medical Practice Is Charged with Unlawfully Prescribing Controlled Substantces Resulting in the Death of Six PatientsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 166-count superseding indictment charging Dr. Eugene Gosy, 56, of Clarence, NY, with the following crimes: • One count of unlawfully conspiring to distribute and dispense, and to cause to be distributed and dispensed controlled substances, other than for a legitimate medical purpose and not in the usual course of professional practice, resulting in the death of six (6) of his patients;• Three counts of unlawfully distributing and dispensing controlled substances, including fentanyl, oxycodone, and tapentadol, each resulting in the death of a patient;
• 144 counts of unlawfully distributing and dispensing controlled substances, other than for a legitimate medical purpose and not in the usual course of professional practice;
• Two counts of conspiracy to commit healthcare fraud; and
• 16 counts of healthcare fraud.
The counts alleging unlawful controlled substance distributions resulting in death carry a mandatory minimum term of 20 years and a maximum of life imprisonment, a $1,000,000 fine or both. The remaining drug distribution counts carry maximum penalties, which, depending on the substance involved, range from one to 20 years imprisonment. While the maximum penalties for the healthcare fraud charges, vary between 10 years to life imprisonment.
The indictment alleges that in carrying out the conspiracy, Dr. Gosy and his employees at the Gosy Center, which included nurse practitioners and physician assistants working under Dr. Gosy’s direction and control, issued more prescriptions for controlled substances annually than any other prescriber or prescribing entity in New York State, including hospitals. Specifically, the indictment alleges that Dr. Gosy and his employees carried out their conspiracy by: • prescribing controlled substances without conducting a physical examination and/or after conducting only a limited and inadequate physical examination;• prescribing controlled substances in ways that were likely to cause, and did cause, dependence and addiction, and that contributed to existing addictions;
• issuing prescriptions for controlled substances in dosages and/or in combinations dangerous to the health and safety of the patient;
• issuing prescriptions for controlled substances despite indications that patients were abusing and misusing the prescribed controlled substances;
• prescribing controlled substances without monitoring or using objective treatment information;
• recommending a course of treatment, including the prescription of controlled substances, which caused patients to become so addicted to opioid drugs that some eventually utilized heroin and other street drugs, in order to satisfy their addiction;
• issuing prescriptions for controlled substances to patients despite knowing that such patients had overdosed, or had otherwise been hospitalized for conditions relating to misuse of controlled substances;
• continuing to prescribe controlled substances in the same manner, and failing to adapt practices to prevent additional deaths and overdoses, despite having notice that treatment they were following had resulted in obvious drug-seeking behavior and addiction; numerous patient overdoses; and patient deaths;
• signing death certificates, in the absence of an autopsy or medical examination, for deceased patients to whom Gosy and/or his employees had prescribed controlled substances despite aberrant behaviors;
• recommending a course of treatment, including the prescribing of controlled substances, which caused the death of at least six individuals, and contributed to the deaths of others;
• utilizing a telephonic patient prescription renewal process, whereby patients could obtain prescriptions for Schedule II, III and IV controlled substances that were prepared by persons who were not medically trained and issued by mid-level providers who had inadequate knowledge about the prescription and the patient, and without adequate review of the prescription and the patient’s chart;
• Dr. Gosy pre-signing blank prescriptions and permitting other persons to fill out the remaining information for the prescription, when he would leave the Buffalo area for extended periods;
• Dr. Gosy failing properly to review and sign his own patient file notes, and arranging for other, non-medical, personnel to sign said patient file notes, to make it appear as if he had reviewed them;
• Dr. Gosy failing properly to review patient file notes/reports prepared by mid-level providers working under his supervision and working in collaboration with him, and arranging for other, non-medical, personnel to sign said patient file notes, to make it appear as if he had reviewed them;
• failing adequately to review records provided to the office from other providers, and failing to obtain a complete patient history and information about present illness and conditions;
• prescribing controlled substances to individuals while failing to refer the patient to and/or ensure compliance with drug addiction treatment despite aberrant behaviors, and requests from patients and/or their family members for help with addiction;
• prescribing methadone to individuals exhibiting aberrant behaviors, outside of a methadone clinic setting, and without employing additional safety precautions or referring the patient to addiction treatment;
• Dr. Gosy, beginning in 2008, circumventing state and federal regulations by prescribing buprenorphine for the treatment of narcotics addiction, improperly using his regular DEA number, and sometimes labeling the prescriptions as for “pain management,” even when the drug was being prescribed primarily for the purpose of treating narcotics addiction;
• Dr. Gosy issuing prescriptions to patients for buprenorphine, a Schedule III controlled substance, for the treatment of narcotics addiction, without having completed the required medical training course in order to be a “qualifying physician” to treat narcotics addiction;
• Dr. Gosy failing to complete training requirements, including Continuing Medical Education courses, Worker’s Compensation training, and Infectious Disease Control training, and instead requiring members of his office staff to take the online courses purporting to be the defendant; and
• Dr. Gosy engaging in prescribing patterns whereby high-risk patients that had run out of their prescribed opioids were given buprenorphine until Dr. Gosy could again prescribe other opioids.
According to the indictment, other practices adopted and used in defendant Gosy’s office included the following: • Mid-level providers (Physician Assistants and Nurse Practitioners) were encouraged to maximize volume of patients seen. Providers who saw certain volumes of patients received monetary bonuses, and/or gifts. Providers who saw less patients were threatened with pay cuts. Providers also earned credit towards bonuses for performing certain, more lucrative procedures on patients.
• Beginning in 2012, a “script line” was established which allowed patients seeking prescriptions, who were not scheduled for an office visit, to call and request a prescription. The “script line” was attended to by individuals with no medical training or certification. They were responsible for drafting the requested prescriptions with the proper drug and dosage, checking the patient’s file for “alerts,” and the New York State iStop program, a Prescription Monitoring Program. Each week a mid-level provider was designated to sign all, or almost all, prescriptions requested through the “script line.” This typically amounted to hundreds of prescriptions per day, many of which were for patients whom the practitioner had never seen and/or with whom the practitioner had little or no familiarity.
• A system was in place for ordering urine drug tests whereby, once the test was ordered, an employee other than the treating practitioner would typically fill out the request form for the laboratory. As a result, the drug screens often tested for the presence or absence of drugs other than those actually prescribed to the patient. However, as part of the usual course of medical practice, urine drug tests should have been ordered and reviewed in consultation with the patient’s medical file, including history and list of current prescribed medications. This is because urine drug testing provided valuable objective information to assist in diagnostic and therapeutic decision making, provided confirmation of compliance with the treatment plan, and provided indication of overutilization of prescribed drugs, diversion/non-use of prescribed drugs, the use of prescription drugs not prescribed to a particular patient, and/or the use of alcohol or illicit street drugs.• As with the “script line,” toxicology results, including urine drug screens, were reviewed by a mid-level provider, many of whom had never seen the patient and/or with whom the practitioner had little or no familiarity. As a result, tests were often labeled as “consistent,” and not given appropriate attention, even when the tests showed the presence of a non-prescribed drug, or the lack of a prescribed drug.
• Patient records often contained incorrect or insufficient information to justify a diagnosis and warrant treatment. Mid-level providers frequently dictated their office notes, failed to review their notes after transcription, and “batch signed” large quantities of notes without review. In addition, Dr. Gosy rarely, if ever, signed his own notes, and arranged for others to affix his signature to office notes and patient files, in order to facilitate more expeditious billing.
“Today’s superseding indictment represents the first time that a physician in the Western District of New York has been alleged to be criminally responsible for unlawfully prescribing drugs which resulted in the death of a patient,” noted Acting U.S. Attorney Kennedy. “Sadly, the superseding indictment alleges that more than one patient succumbed to the inadequate and unlawful treatment they received at the hands of Dr. Gosy and those who worked for him. While today’s indictment does not represent a panacea, it does provide a powerful antidote directed at one of the root causes of the opioid epidemic.”
DEA Special Agent-in-Charge James Hunt stated, “At the height of diverted prescription drug abuse, Dr. Gosy’s clinic prescribed more controlled substances than several major New York Hospitals, and is now being charged with causing the death of six individuals. Today’s charges cannot bring back the lives of those who died, but is a message to traffickers and rogue doctors that their actions have irrevocable consequences. The DEA’s highest priority is arresting and dismantling the largest opioid traffickers, Dr. Gosy being one of them.”
"The grand jury's superseding indictment exposes Gosy's lack of concern for the true health of his patients," said FBI Special Agent-in-Charge Adam S. Cohen. "Gosy did not work to heal all of those who struggled with pain, rather he betrayed his patients’ trust by putting his own personal gain ahead of their health and well-being. The FBI is committed to working with our partners on the front lines of the fight against heath care fraud and opioid addiction."
“Prescription drug fraud is a crime fueled by greed that damages this country, community by community. We rely on doctors to be part of the prescription drug abuse solution – not part of the problem,” said Special Agent-in-Charge Scott J. Lampert of the HHS Inspector General’s New York Office. "Today’s indictment shows our determination to work closely with our law enforcement partners to hold irresponsible doctors accountable for their actions."
The superseding indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in- Charge, New York Field Division; the Federal Bureau of Investigation’s Western New York Health Care Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent-in-Charge Scott Lampert; the Army National Guard - New York National Guard Counterdrug Task Force, under the direction of Lt. Col. Nicholas Dean; the New York State Department of Financial Services, under the direction of Maria T. Vullo, Acting Superintendent; the New York State Office of the Workers’ Compensation Fraud Inspector General, under the direction of Inspector General Cathy Leahy Scott; and the New York State Bureau of Narcotics Enforcement.
The case was presented to the grand jury by Assistant United States Attorneys Maura K. O’Donnell and Patricia Astorga, who together are prosecuting the case for the United States.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Eden Woman Sentenced for Carjacking and Firearms OffenseRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced KYARA NICOLE JONES, 21, of Eden, North Carolina, to 108 months of imprisonment followed by 5 years of supervised release and ordered to pay $4,477.07 in restitution.
On January 12, 2017, JONES pled guilty to carjacking and using, carrying, and brandishing a firearm during and in relation to a crime of violence and possessing and brandishing a firearm in furtherance of a crime of violence. According to the Indictment and information in the public records, on July 31, 2015, JONES and her codefendant David Earl Gill, Jr., forced entry into a residence in Louisburg, North Carolina. Gill was armed with a sawed off shotgun and JONES was armed with a golf club. During the carjacking, JONES violently struck the victim in the face multiple times with the golf club causing permanent injury. JONES and Gill forced the homeowner into a closet, barricaded the door with furniture, and took the homeowner’s vehicle. Gill was previously sentenced to 216 months for his role in this offense on September 12, 2017.
JONES and Gill continued their crime spree in the stolen vehicle throughout multiple states. On August 5, 2015, law enforcement officers in McIntosh, Georgia arrested JONES and Gill when they located them driving the stolen vehicle from Louisburg, North Carolina.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Franklin County Sheriff’s Office, Rockingham County Sheriff’s Office, the McIntosh, Georgia, Sheriff’s Office, and the Henry County, Georgia, Police Department. Assistant U.S. Attorney Jane Jackson prosecuted the case for the Eastern District of North Carolina.
Easton, PA Man Charged with False Statements to Federal Firearms LicenseesRead the Press Release
Nico Trevorsaya Braden, 28, of Easton, PA, was charged today by indictment with three counts of making false statements to federal firearms licensees announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about various dated between April 16, 2016 and May 5, 2016, Jonathan William Vazquez purchased seven firearms from three different federal firearms licensees, and in doing so, knowingly made false statements pertaining to information that the law requires the licensees keep.
If convicted of the charges, defendant faces a maximum sentence of 15 years’ imprisonment. He also faces a maximum period of supervised release of 3 years, a $750,000 fine, a $300 special assessment, restitution, and forfeiture of the firearms involved.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and is being prosecuted by Assistant United States Attorney Sarah T. Damiani.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Drug Enforcement Administration collects record number of unused pills as part of its 14th Prescription Drug Take-Back DayRead the Press Release
WASHINGTON – Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds – 456 tons – of potentially dangerous expired, unused and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
In Alabama, DEA collected more than 7,000 pounds – 3.5 tons – of unused and unwanted prescription drugs for disposal at its more than 52 collection sites across the state.
Now in its eighth year, this event continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action came just days after President Donald J. Trump announced the mobilization of his entire administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“In the midst of the worst drug crisis in American history, drug abuse prevention has never been more important,” said Attorney General Jeff Sessions. “And at the Department of Justice, it’s what we do every day. By taking dangerous drugs off of our streets, we keep addiction from spreading. One of the most important ways we do that is through the DEA’s semi-annual Prescription Drug Take Back Days. The latest Take Back day was the most successful yet, safely disposing of a record amounts of drugs. I have no doubt that will save lives. At a time like this, this event is having more of an impact than ever. I want to thank all of our local law enforcement partners who helped at all 5,300 collection sites to make this possible – and everyone who participated. They're helping us end this crisis one pill at a time.”
“Properly disposing of pills left in home medicine cabinets means fewer pills making it into the hands of young people experimenting with drugs, possibly leading to more drug abuse and possible addiction,” said Northern District of Alabama U.S. Attorney Jay E. Town. “The success of DEA’s fall Take-Back indicates people are learning how dangerous the abuse of prescription pills, particularly opioid painkillers, can be and are taking the right step to reduce the amount of pills that make it onto the streets,” he said.
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting DEA Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
“I am pleasantly surprised with the results of our efforts during the National Prescription Drug Take-Back Day,” said DEA Assistant Special Agent in Charge Bret Hamilton in Alabama. “The fall event has historically been slightly less effective than the spring event but not this year. Hopefully this means the word is getting out about the dangers of narcotics being left readily available, tempting our loved-ones with possible life-altering addiction,” he said. “We can never be too safe with highly addictive opioids. Get them out of your house.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines – flushing them down the toilet or throwing them in the trash – posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is April 28, 2018.
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Drug Enforcement Administration Collects Record Number of Unused Pills as Part of its 14th Prescription Drug Take Back DayRead the Press Release
Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
Now in its 8th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“In the midst of the worst drug crisis in American history, drug abuse prevention has never been more important,” said Attorney General Jeff Sessions. “And at the Department of Justice, it’s what we do every day. By taking dangerous drugs off of our streets, we keep addiction from spreading. One of the most important ways we do that is through the DEA’s semi-annual Prescription Drug Take Back Days. The latest Take Back day was the most successful yet, safely disposing of a record amounts of drugs. I have no doubt that will save lives. At a time like this, this event is having more of an impact than ever. I want to thank all of our local law enforcement partners who helped at all 5,300 collection sites to make this possible—and everyone who participated. They're helping us end this crisis one pill at a time.”
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
DEA’s next Prescription Drug Take Back Day is April 28, 2018.Drug Enforcement Administration Collects Record Number of Unused Pills During Its 14th Prescription Drug Take Back DayRead the Press Release
Memphis, TN –U.S. Attorney D. Michael Dunavant, joined the Drug Enforcement Administration (DEA) on October 28, 2017 for its 14th National Prescription Drug Take Back Day. The biannual event was held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including at Kroger, 7615 Highway 70 Bartlett, TN. That one-day event made it convenient for the public to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs. Authorities collected 226 lbs. of prescription drugs at the Kroger location.
Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its partners a record-setting 912,305 pounds – 456 tons – of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event.
"Our office was pleased to partner with DEA for this important cause. The President recently announced mobilizing his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency. With the opioid epidemic at an all-time high, we must take advantage of every opportunity to rid our communities of drugs that destroy the lives of our fellow citizens," said D. Michael Dunavant, U.S. Attorney, Western District of Tennessee.
Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
DEA’s next Prescription Drug Take Back Day is April 28, 2018.
For more information or to locate a collection site near you, go to the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov where you can search by zip code, city or state.
Drug Enforcement Administration Collects Record Number of Unused Pills as Part of Its 14th Prescription Drug Take Back DayRead the Press Release
The public returns record number of potentially dangerous prescription drugs
WASHINGTON – Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
DEA’s St. Louis Division, which covers Missouri, Southern Illinois, Kansas, Iowa, Nebraska and South Dakota, collected 76,294 pounds—38 tons of potentially dangerous expired, unused and unwanted prescription drugs for disposal at its more than 500 collection sites. Iowa’s 112 sites received a total of 11,526 pounds of drugs.
Now in its eighth year, this event continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is April 28, 2018.
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Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Drug Enforcement Administration and Northern District of Oklahoma United States Attorneys’ Office Report Record Number of Unused Pills as Part of Its 14th Prescription Drug Take Back DayRead the Press Release
TULSA, Okla.— DEA’s Tulsa Office, which covers the Northern District of Oklahoma, collected 904 lbs. pounds of potentially dangerous expired, unused and unwanted prescription drugs for disposal at its ten collection sites. This represents an increase of over 300% from collections received on April 30, 2016.
United States Attorney R. Trent Shores stated "Prosecution is one way - but not the only way - to battle the opioid epidemic. Prevention and education are also key. I am pleased to see that Oklahomans took advantage of this opportunity to safely dispose of expired and unused prescription drugs sitting in their homes. I am thankful to the DEA and our local law enforcement partners for making drug take back day a success."
Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
Now in its 8th year, this event continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
“More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the highest rate of overdose deaths this country has ever seen,” said Acting Administrator Robert W. Patterson. “This is a crisis that must be addressed from multiple angles. Educating the public and removing these medications from households across the Unites States prevents misuse where it often starts.”
This year, DEA worked with its tribal law enforcement partners to set up 115 collection sites on tribal lands, five of which were in the Northern District of Oklahoma. Opioid addiction impacts Native American communities just as it does all parts of American society. By partnering with FBI, BIA, and tribal law enforcement, the DEA was able to greatly expand tribal participation in the Take Back program. DEA remains committed to supporting public safety in American Indian and Alaska Native communities.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is April 28, 2018.
District Man Sentenced to 10-Year Prison Term on Narcotics and Firearms Charges Relating to His Operation of an Open-Air Drug MarketRead the Press Release
WASHINGTON – Marques Henderson, 37, of Washington, D.C., was sentenced today to ten years in prison on narcotics and firearm offenses stemming from his operation of an open-air drug market in Southeast Washington, announced U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Henderson pled guilty in May 2017, in the U.S. District Court for the District of Columbia, to one count of unlawful distribution of cocaine base and using, carrying, and possessing a firearm in furtherance of a drug trafficking offense. He was sentenced by the Honorable Tanya S. Chutkan. Upon completion of his prison term, Henderson will be placed on five years of supervised release.
The government’s evidence established that Henderson, known on the street as “DA BEAST,” was the subject of investigations by both the FBI and MPD and that he sold PCP and crack cocaine in the 300 block of Ridge Road SE with his base of operations at 359 Ridge Road. In the course of the investigation, law enforcement seized five firearms, numerous rounds of ammunition, distribution quantities of PCP and crack cocaine, and numerous types of drug paraphernalia.
As part of his plea agreement, Henderson acknowledged selling PCP and crack cocaine to an MPD undercover officer on four separate occasions and having both PCP and crack cocaine on his person with a loaded firearm when arrested on June 20, 2016, by the FBI.
At the time of his arrest, Henderson was on supervised release for three separate felony cases in the Superior Court of the District of Columbia. He now faces formal revocation of his supervise released and additional incarceration, separate from the above-referenced sentence, from the U.S. Parole Commission.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of the FBI/MPD Safe Streets Task Force in shutting down Henderson’s drug trafficking operation. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Christopher Macchiaroli and Anthony Scarpelli of the Violent Crime and Narcotics Trafficking Section and Paralegal Specialist Candace Battle.
District Man Pleads Guilty to Two Sexual Assaults, Admits Attacking Woman and 11-Year-Old GirlRead the Press Release
WASHINGTON - Joseph Ramsey, 21, of Washington, D.C., pled guilty today to charges stemming from two sexual assaults, including an armed attack on a 25-year-old woman in September 2012 and another assault on an 11-year-old girl in March 2015, announced U.S. Attorney Jessie K. Liu.
Ramsey pled guilty in the Superior Court of the District of Columbia to charges of first-degree sexual abuse while armed and first-degree child sexual abuse. The plea, which is contingent on the Court’s approval, calls for an agreed-upon prison term of 25 years. Once released from prison, Ramsey will be required to register as a sex offender for the remainder of his life. He also could be placed on supervised release for the rest of his life. The Honorable Judith Bartnoff scheduled sentencing for Jan. 26, 2018.
According to the government’s evidence, the first attack took place on Sept. 6, 2012, at approximately 11:15 p.m. The victim, 25, was walking home from the Deanwood Metro station. Ramsey approached her as she turned onto 45th Place NE and as she walked into an alley leading to the rear of her home. He pulled out a black handgun as he ran towards her. Ramsey then forced her onto her knees and sexually assaulted her at gunpoint. The victim reported the assault immediately and was transported to Washington Hospital Center for a Sexual Assault Nurse Examination (SANE), which included collection of forensic evidence.
In the second assault, in the early evening of March 1, 2015 an 11-year-old girl encountered Ramsey in the 3300 block of Stanton Road SE. She and the defendant went into a nearby apartment building, and he sexually assaulted the child on the basement landing. She immediately reported the assault and was transported to Children’s National Medical Center for an examination, which included collection of forensic evidence.
Forensic analysis of the evidence collected following the two assaults revealed that the same unknown male DNA profile was found on the biological material in both cases. Detectives with the Metropolitan Police Department’s Sexual Assault Unit and Youth Investigation Division developed the defendant as a suspect in these assaults and obtained a warrant to collect a DNA sample from him. Forensic analysis revealed that Ramsey’s DNA profile matched the unknown male DNA profile found in the sex kits collected following both assaults. Ramsey was charged in this case in February 2016 and has been in custody ever since.
In announcing the plea, U.S. Attorney Liu praised the work of officers from the Metropolitan Police Department’s Sexual Assault Unit and Youth Investigation Division. She expressed appreciation to Deputy U.S. Marshals William Straw and Justin Bankert, of the U.S. Marshals Service, as well as to Bode Cellmark Forensics. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Litigation Technology Specialist Leif Hickling; Contract Specialist Sallie Rynas; David Foster, LaJune Thames, and Katina Adams-Washington, all of the Victim/Witness Assistance Unit; Paralegal Specialists D’Yvonne Key, Angelina Slagle, Tiffany Jones, Michelle Wicker, and Jason Manuel, and Victim/Witness Advocate Veronica Vaughan.
Finally, U.S. Attorney Liu commended Assistant U.S. Attorneys Julianne Johnston, Sumit Mallick, and Jason Park, who investigated and prosecuted this case.
Deportee Sentenced to Prison for Illegal ReentryRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Victor Bermudez-Ruiz (38), a Mexican national, to the statutory maximum penalty of two years in federal prison for illegally reentering the United States after deportation. He pleaded guilty on June 22, 2017.
According to court documents, since 2008, Bermudez-Ruiz illegally entered the United States at least seven times, after being deported. He has been convicted twice for illegal entry in other districts.
This case was investigated by U.S. Customs and Border Protection’s Border Patrol. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.
Delaware County Man Sentenced to 10 Years for Running Tax Fraud SchemeRead the Press Release
Acting United States Attorney Louis D. Lappen today announced that yesterday, November 6, 2017, United States District Court Judge Harvey Bartle, III, sentenced Mohamed Mansaray, 41, of Springfield, Pennsylvania, to 120 months’ imprisonment for conspiring to defraud the Internal Revenue Service, aiding and abetting the preparation of false federal income tax returns, wire fraud, and aggravated identity theft. Mansaray, a former social worker, was the owner of Medman’s Financial Services, a tax preparation service with offices in Philadelphia. Medman’s filed numerous false federal income tax returns which generated fraudulent tax refunds, some as large as $9,000. The defendant and his co–conspirators, other tax preparers at Medman’s, obtained stolen personal identity information of foster children and used that information as fraudulent dependents on numerous income tax returns prepared for Philadelphia clients. The stolen identities were purchased from Gebah Kamara, a former Catholic Social Services employee, who was sentenced to a 30-month prison term last week by Judge Bartle. Kamara was paid approximately $200 to $300 for each child’s identity that was included on an income tax return accepted by the IRS for processing. Mansaray charged clients a fee of as much as $800 for fraudulently including a false dependent on an income tax return. Over 300 foster children’s identities were stolen and misused during the scheme.
Mansaray was first charged with conspiring to defraud the Internal Revenue Service and aiding and abetting the preparation of false federal income tax returns in May 2013. Mansaray pled guilty to those charges in July 2014. Additional investigation showed that after he pled guilty Mansaray continued to prepare fraudulent income tax returns for clients. Mansaray’s bail was revoked and he was imprisoned in May 2016, after he was charged again in April 2016 with numerous additional counts of aiding and abetting the preparation of false federal income tax returns, wire fraud, and aggravated identity theft. Mansaray pled guilty to those charges in March 2017.
Mansaray was ordered to pay $5,277.041 restitution for the loss to the Internal Revenue Service on the false income tax returns he prepared. This case was investigated by the Internal Revenue Service, Criminal Investigation Division, the City of Philadelphia Office of the Inspector General, and the Social Security Administration OIG- Office of Investigations, and was prosecuted by Assistant United States Attorney Paul L. Gray and former Assistant United States Attorney Karen M. Klotz.
Dangerous Sex Trafficker of Young Women Sentenced to 33 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – On Monday, November 6th, U.S. District Judge Marco Hernandez sentenced Taquarius Kaream Ford, 38, of Portland, Oregon, to 33 years in federal prison followed by a lifetime of supervised release. On December 21, 2016, after a jury trial, Ford was found guilty of multiple counts, including Conspiracy to Commit Sex Trafficking by Force, Fraud, or Coercion and Sex Trafficking by Force, Fraud, or Coercion.
Between 2008 and 2013, defendant Taquarius Ford (a/k/a "Cameron Ford") traveled around the United States and recruited 40 young women with promises of "modeling" careers, when in fact, his plan involved exploiting them in the commercial sex industry. Defendant met these young women in suburban shopping malls, usually in small towns. He lured them in by posing as a successful modeling executive from Beverly Hills who had connections to famous celebrities. He shared photographs of himself standing next to famous people and he urged his recruits to show their family and friends his business card and his "Victory P.R." website.
Ford convinced his recruits to travel to Los Angeles, where he wined and dined them in Hollywood, took them to red carpet events, and introduced them to television stars. Next, Ford made promises of professional photo shoots to kick-start their modeling careers, but first, there was a catch. Ford explained to his recruits that if they wanted to become models, they must first start at the bottom and work their way up; they needed to engage in some "escorting" work for him in order to continue on the path towards a successful modeling career. Ford used various techniques to maintain control over these recruited women and to cause them to engage in commercial sex acts, including relying on his female co-defendant to reassure them, making promises of fame and fortune, isolating them, using violence, rape and sexual assault. Even after the women escaped from him, defendant continued to terrorize them and their family members with threats and blackmail.
"This investigation started with an alert hotel employee calling the Port of Portland Police concerned about prostitution activity. As a result of that call, a young courageous victim was rescued. Through the efforts of the brave young women who came forward to testify and the diligent pursuit of justice by the law enforcement investigators, the community will now be protected from this predator" said US Attorney Billy J. Williams. "This case is a cautionary tale for young women and families about the manipulative techniques used to ensnare young unsuspecting victims into sex trafficking. I would like to say this is an isolated incident, but tragically it is becoming all too common and the information we learned through this investigation should be widely shared as a warning".
"Taquarius Ford promised those victims a future filled with bright lights and big money, but that dream quickly turned to the stuff of nightmares: rapes, beatings and threats against loved ones," said Renn Cannon, Special Agent in Charge of the FBI in Oregon. "Those victims deserve justice, and the FBI's Child Exploitation Task Force ensured they got it. I want to thank the Port of Portland as well as the Tigard Police Department and all of our task force partners on the CETF for ensuring that Ford will spend many years behind bars."
This case was investigated by the Port of Portland who first brought the case to the FBI’s attention, and a Tigard Police detective who serves as a task force officer on the FBI's Child Exploitation Task Force (CETF) who led this investigation. Portland FBI's CETF consists of agents and Task Force Officers from Beaverton PD, Portland Police Bureau, Tigard PD, Hillsboro PD, and Clackamas County Sheriff's Office. The FBI's Child Exploitation Task Force is committed to locating and arresting those who prey on children, as well as recovering underage victims of sex trafficking and child pornography. Assistant U.S. Attorney Leah K. Bolstad and Special Assistant U.S. Attorney J.R. Ujifusa prosecuted the case in federal court.
Dallas Woman Sentenced for Her Role in a “Foreclosure Rescue Scheme” That Exploited Vulnerable Homeowners Facing ForeclosureRead the Press Release
DALLAS — Christina Renee Caveny, 37, of Dallas, was sentenced today before U.S. District Judge David C. Godbey to 15 months in federal prison and ordered to pay $270,134.84 in restitution, following her guilty plea in June 2017 to one count of conspiracy to commit mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
A federal grand jury in Dallas returned an indictment in December 2016 charging Caveny and three others with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013. Mark Demetri Stein, 36, of Carrollton, Texas, is awaiting trial. Richard Bruce Stevens, 51, of San Antonio, Texas, pleaded guilty and is scheduled to be sentenced on December 4, 2017. Bruce Kevin Hawkins, 52, of Desoto, Texas, also pleaded guilty and was sentenced to 41 months in federal prison and ordered to pay $219,109 in restitution.
According to plea documents in Caveny’s case, Stein operated Real Estate Solutions, Stevens used Texas Real Estate Services, and Hawkins formed ERealty Mortgage Group, LLC, as foreclosure rescue companies. The conspirators used third parties to contact homeowners and offer them an opportunity to get out of their present home loans and receive a new home loan with a reduced interest payment and reduced monthly payment. Caveny and other conspirators falsely represented to homeowners that they had “investors” standing by who were ready to quickly purchase the homeowner’s present loan from the lender holding the current mortgage. They also falsely represented that they would use investors to purchase the homeowner’s loan from the original lender at a greatly reduced price through a “short sale” process.
Furthermore, Caveny and other conspirators falsely represented to the homeowners that the homeowners had the legal authority to transfer their homeowner’s deed to the defendants.
As part of the scheme, the conspirators fraudulently required homeowners to start making all future loan payments to them based on fraudulent so-called “loans,” and they also told homeowners to ignore late payment notices sent by lenders. As part of the scheme, the conspirators conducted a fraudulent “closing” for each homeowner where they caused the homeowner to pay them a large down payment on the new “loan,” and they also had the homeowner sign fraudulent documents, such as a promissory note, deed of trust, special warranty deed, and/or a so-called “land trust.”
Further, according to plea documents, the conspirators falsely represented to homeowners that the conspirators could “sell” their property back to the homeowner with a new loan, when the conspirators well knew they did not legally own the property. The conspirators also told homeowners to ignore notices of nonpayment from their present lender as they continued to unlawfully collect monthly so called “mortgage payments” from homeowners. In fact, conspirators instructed several homeowners to file for bankruptcy but to not follow up with the bankruptcy process as an additional means to delay foreclosure and conceal the conspirators’ criminal conduct. Conspirators concealed that all down payment and monthly mortgage payments fraudulently collected from homeowners was spent for their own personal benefit.
The defendants recruited at least 70 distressed and vulnerable homeowners who were facing the imminent threat of foreclosure on their homes and fraudulently collected a total of at least $242,000 from them.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. With the charges in this indictment, 26 defendants have been charged as part of that initiative. Nineteen have been convicted, one resulted in a mistrial, and six are pending trial.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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Chairman of Purported Hedge Fund Sentenced for Conspiring to Commit Securities and Wire FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that NICHOLAS MITSAKOS was sentenced today to 30 months in prison on charges of conspiring to commit securities fraud and wire fraud in connection with his operation of a purported hedge fund called Matrix Capital. MITSAKOS pled guilty on May 25, 2017, and was sentenced by the Honorable Denny Chin, a judge on the United States Court of Appeals for the Second Circuit who was sitting by designation in the Southern District of New York.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he previously admitted in pleading guilty, Nicholas Mitsakos spun a fake tale to investors about his miraculous track record of trading in the securities markets. Mitsakos lured investors by claiming returns of over 66 percent for one year, never disclosing that his portfolio was an entirely ‘hypothetical’ one and that in fact, he had never entered into any real trades.”
According to the Complaint, Indictment, and statements made during court proceedings:
In or about October 2013, MITSAKOS created a purported hedge fund called Matrix Capital (“Matrix”), which claimed to be a long-short fund with a long track record of success. In order to raise money for his fund, MITSAKOS sent marketing materials to numerous potential investors claiming that Matrix had achieved outsized returns that exceeded major indices like the S&P 500. One newsletter sent to potential investors, for example, claimed that Matrix had achieved returns of approximately 25% in 2012, 66% in 2013, 20% in 2014, and 49% between January and October of 2015. MITSAKOS also led potential investors to believe that these returns were based on actual securities trades by Matrix, and that Matrix had tens of millions in assets under management (“AUM”).
MITSAKOS’s representations regarding Matrix’s performance and AUM were false. In fact, Matrix had no track record in actually purchasing and selling securities, and, indeed, had no meaningful assets at all until receiving funds from a victim in September 2015. Instead, the purported performance results provided to potential investors were premised on how a hypothetical portfolio would have performed had Matrix actually acquired certain securities. No such trading actually took place and Matrix never actually owned any of the securities in the hypothetical portfolio that MITSAKOS maintained. Even in regard to Matrix’s hypothetical investment portfolio, MITSAKOS retroactively manipulated the investments in that portfolio from time to time in order to improve dramatically its hypothetical performance.
Based in part on these and other misrepresentations, Matrix received approximately $2 million from an investor in September 2015. However, MITSAKOS used only a portion of that amount – about $1.2 million – to actually buy and sell securities. Of the remaining amount, MITSAKOS spent hundreds of thousands of dollars on business expenses and personal expenses like car payments, credit cards, and his own rent. MITSAKOS’s trading of the $1.2 million that he did invest, moreover, resulted in significant losses.
* * *
In addition to the prison sentence, MITSAKOS, 57, was sentenced to two years of supervised release. The Court further ordered MITSAKOS to forfeit a sum of $861,163.62 and to pay restitution to victims of his offense.
Mr. Kim praised the exceptional work of the Office’s criminal investigators, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Robert Allen and Brendan Quigley are in charge of the prosecution.
Cedar Rapids Man Sentenced to Eight Years’ Imprisonment for Unlawfully Possessing AmmunitionRead the Press Release
A man who fired a handgun three times in a residential neighborhood was sentenced today to eight years in federal prison.
James Mitchell, age 37, of Cedar Rapids, Iowa, received the prison term after a guilty plea to possession of ammunition as a felon.
Information presented at the sentencing hearing showed that on October 7, 2016, Mitchell was drinking and using drugs at a party in Cedar Rapids. The following afternoon, Mitchell’s girlfriend showed up outside of the residence where Mitchell was partying. Mitchell confronted his girlfriend in the street, before slamming her onto the ground, causing a friend of Mitchell’s to pull him away from the girlfriend. Mitchell then brandished a handgun and fired it three times into the air. Several neighbors heard the altercation and called the police. Mitchell fled the scene and discarded his handgun in an alley.
Mitchell was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. He was sentenced to 96 months’ imprisonment and a special assessment of $100 was imposed. Mitchell must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Mitchell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-19-LRR.
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Catonsville Man Pleads Guilty to Conspiracy in “Swatting” IncidentRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Zachary Lee, age 25, of Catonsville, Maryland, pleaded guilty today Conspiracy to Provide False Information and False Information and Hoax relating to a scheme to cause an emergency services response, a practice known as “swatting.”
The plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Gary L. Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.
According to Lee’s plea agreement, between February 17 and February 18, 2015, Lee, who resided in Ellicott City at the time, and co-conspirator Robert Walker-McDaid, age 19, of Coventry, England, United Kingdom, conspired to convey false information about a hostage situation that would cause armed law enforcement officers to be dispatched to the home of an acquaintance of Lee (the victim).
Specifically, on February 17, 2015, Lee messaged McDaid via an internet telephone service and stated, “I have someone I need sw@tted.” At McDaid’s request, Lee provided McDaid with the address of the victim and McDaid responded to Lee, “il do it when im up.” On February 18, 2015, a call from McDaid’s internet telephone account was made to the Maryland Coordination and Analysis Center’s (MCAC) Terrorism Hotline. Lee, McDaid, and another individual were participants in that call. The caller pretended to be the victim and stated that he had a loaded gun, several bags of plastic explosives, and three hostages. The caller demanded $15,000 in cash be delivered in a red bag to the victim’s address. The caller stated that he would start executing the hostages in 15 minutes if his demands were not met. Shortly after police arrived at the address, Lee allegedly posted on his Facebook account, “Love my team.”
At the time the call was made, authorities were not aware that the emergency call was false. A Howard County Police Department (HCPD) Tactical team went to the address provided by the callers, and ultimately shot the victim with rubber bullets in the chest and face. The victim suffered significant injuries to his face and chest, including bruised lungs, a fractured rib, and numerous broken bones to the left side of his face. He was transported to the hospital where he underwent approximately three facial reconstructive surgeries.
This “swatting” caused over 40 officers to respond to T.D.’s home and remain there for over 2.5 hours and cost the Howard County Police Department over $10,000. Investigators subsequently discovered that the victim was not in possession of loaded firearms or explosives, did not make the emergency call, and there were no hostages at the residence.
If the Court accepts the parties’ plea agreement, Lee will be sentenced to 2 years in prison.
Walker-McDaid has been arrested in the United Kingdom and is currently in extradition proceedings. United States District Judge Marvin J. Garbis has scheduled sentencing for January 18, 2018 at 11 a.m. Lee remains detained.
Acting United States Attorney Stephen M. Schenning commended the FBI, Howard County Police Department, and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Lauren E. Perry and Zachary A. Myers, who are prosecuting the case.
California Man Who Engaged in Robbery Spree and Fled Across the Country Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID E. BYERS, 35, of Solana Beach, California, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to a federal robbery charge stemming from an east coast robbery spree and subsequent cross country pursuit.
According to court documents and statements made in court, on April 19, 2017, BYERS, wearing a bandana over his face and displaying what appeared to be the handle from a handgun, robbed a Gulf gas station in Nesconset, N.Y., of $300. On April 20, he robbed a Chase Bank branch in Stony Brook, N.Y., of $2,107. On April 24, BYERS, wearing a bandana over his face and displaying what appeared to be a handgun, robbed a Citgo gas station in Greenwich, Conn., of $223. On April 25, again wearing a bandana over his face, he robbed a Chase Bank branch in Greenwich of $8,722. On April 26, BYERS returned to the Chase Bank branch in Greenwich and robbed it of $3,391.
On April 28, Greenwich Police saw BYERS driving a vehicle and attempted to apprehend him, but he drove away at a high rate of speed, subsequently abandoned the vehicle on I-95 and evaded police on foot. He then stole another vehicle in Port Chester, N.Y., placed a stolen license plate on the vehicle, and proceeded to drive to California.
Pennsylvania State Police attempted to apprehend BYERS in Pennsylvania by deploying a tire deflation device, but BYERS was able to abandon the vehicle and fled on foot. He then stole a pickup truck that had keys in it. At a rest stop, he stole Maryland license plates, put them on the truck and continued driving west.
On May 1, BYERS engaged the Arizona State Police in a high-speed chase before abandoning the vehicle and fleeing on foot.
BYERS was arrested in San Diego on May 2.
Judge Shea scheduled sentencing for January 30, 2018, at which time BYERS faces a maximum term of imprisonment of 20 years. BYERS has been detained since his arrest.
This matter has been investigated by the Federal Bureau of Investigation, Greenwich Police Department, Suffolk County (N.Y.) Police Department, Pennsylvania State Police, Arizona State Police and San Diego County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
California Man Sentenced to Almost 22 Years’ Imprisonment for Coercion of A Minor to Engage in Sexual ActivityRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stephen Chang, age 29, of Los Angeles, California, was sentenced today by United States District Court Judge Yvette Kane to 262 months’ imprisonment for travel with intent to engage in criminal sexual conduct (3 counts) and coercion of sexual activity from a minor (2 counts).
According to United States Attorney Bruce D. Brandler, Chang began communicating with a minor female when she was only 13 years old. The communications began in August 2014, and continued until the day of his arrest at the Harrisburg International Airport on March 5, 2016. During these conversations, Chang enticed the juvenile to produce and send sexual exploitative images. Chang also traveled from Los Angeles, California to Elizabethtown, Pennsylvania on December 12, 2014, October 1, 2015, and March 4, 2016, to engage in sexual conduct with the minor. On January 29, 2016, police were notified by the National Center for Missing and Exploited Children in a CyberTipline report about Facebook communications between the minor residing in Elizabethtown, Pennsylvania and an adult male in California, later identified as Stephen Chang. Law enforcement also learned that Chang engaged in sexual conduct with a second victim in Bakersfield, California.
This case was investigated by the Federal Bureau of Investigation, the Lancaster County District Attorney’s Office, the Elizabethtown Police Department, the Northwest Regional Police Department, the Dauphin County District Attorney’s Office and the Harrisburg International Airport Police and demonstrates an excellent collaborative investigative effort to remove dangerous sexual predators from the street and protect the communities’ children. Assistant United States Attorney Daryl F. Bloom prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Brooklyn Man Sentenced to 15 Years’ Imprisonment for Carjacking SpreeRead the Press Release
Earlier today at the federal courthouse in Brooklyn, John Howard was sentenced to 181 months’ imprisonment, to be followed by three years of supervised release, by United States District Judge Ann M. Donnelly for his participation in three violent carjackings. Howard and his co-defendant, Donald Warren, previously pleaded guilty to carjacking and related firearms charges. Warren was sentenced to 18 years’ imprisonment on September 14, 2017.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, New York Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“John Howard attacked innocent members of communities in Queens and Nassau Counties as they went about their daily lives, terrorizing them with the threat and use of lethal force,” stated Acting United States Attorney Rohde. “With this sentence, Howard is being held accountable for his numerous violent crimes.” Ms. Rohde also thanked the Nassau County Police Department, the Nassau County District Attorney’s Office and the Queens County District Attorney’s Office for their assistance during the investigation.
Carjacking, December 18, 2015
According to court filings and facts presented during the plea proceeding, on December 18, 2015, Howard approached a woman who was sitting in a parked Volkswagen Jetta in Valley Stream, New York. As the woman leaned over to retrieve her purse from the passenger side, Howard pressed a hard object against her back and said, “You know what this is. If you want to see your family and not be on the news, give me your money.” Howard stole the woman’s car and drove away in it.
Carjacking, December 28, 2015
Howard and Warren confronted the driver of a Mercedes Benz in front of a Best Western hotel in Jamaica, New York. Warren threatened the driver with a handgun and demanded his wallet. Warren and Howard beat the man over the head, stole his wallet, and drove away in the Mercedes.
Carjacking and Shooting, January 21, 2016
Howard participated in another carjacking with Warren in which they stole a car parked outside a Hampton Inn hotel in South Ozone Park, New York. A young woman was waiting for her mother in the passenger seat of a Hyundai parked in front of the hotel when Warren, armed with a loaded handgun, entered the vehicle and drove it around the hotel parking lot. When the young woman’s mother left the hotel a few minutes later, Warren exited the vehicle and demanded the mother’s purse. Warren shot the woman in the chest when she resisted. Howard and Warren then fled the scene.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar and Moira Kim Penza are in charge of the prosecution.
The Defendant:
JOHN HOWARD
Age: 50
Residence: Brooklyn, New YorkDONALD WARREN
Age: 55
Residence: Queens, New YorkE.D.N.Y. Docket No. 16-CR-102 (AMD)
Bradenton Man Sentenced to 11 Years for Firearm and Drug-Trafficking OffensesRead the Press Release
Tampa, Florida– Senior U.S. District Judge Susan C. Bucklew today sentenced Anthony Sanchez (25, Bradenton) to 11 years in federal prison for possessing carfentanil, a Schedule II controlled substance, with the intent to distribute it, and for possessing a firearm in furtherance of a drug-trafficking crime. He pleaded guilty on August 4, 2017.
According to court documents, Sanchez sold a stolen Sig-Sauer .9mm caliber pistol and ammunition to an undercover agent at the Desoto Square Mall, in Bradenton. He also sold the agent 10.85 grams of carfentanil, while possessing a loaded .22 caliber revolver.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Barbour County man sentenced for methamphetamine distribution and possession of an illegal weaponRead the Press Release
ELKINS, WEST VIRGINIA – Dylan Lee Hamrick, 24, of Belington, West Virginia, was sentenced today to 108 months incarceration for distributing methamphetamine and possessing an altered firearm, United States Attorney William J. Powell announced.
Hamrick was found in possession of methamphetamine and a shotgun with a shortened barrel in November 2015 in Randolph County. He pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possession of a Firearm with a Shortened Barrel” in April 2016.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The Mountain Region Drug and Violent Crime Task Force, and the Elkins Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Baltimore BGF Member Pleads Guilty to 2013 Murder of WitnessRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Wesley Jamal Brown, a/k/a “Wes,” age 25, of Baltimore, Maryland, pleaded guilty today to conspiring to participate in a racketeering enterprise known as the Black Guerilla Family’s Greenmount Avenue Regime. As part of his plea agreement, Brown admitted that on May 2, 2013, he murdered a witness to prevent him from testifying against a fellow BGF member in a pending state case.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel Board of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Field Office; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement and court documents, Brown was a member of the BGF Greenmount Regime, formerly known as the Young Guerilla Family, or YGF. Between 2005 and September 2017, Brown agreed with other BGF members to engage in crimes to further the interest of the gang, including drug distribution, murder, robbery, witness tampering, and witness retaliation. Brown admitted that he personally engaged in drug trafficking and murder in furtherance of BGF.
Specifically, Brown admitted that on or about April 26, 2013, he possessed with intent to distribute cocaine and heroin. Brown further admitted that on or about June 20, 2013, he possessed 51 grams of heroin and a quantity of cocaine that he planned to sell.
Brown further admitted that on or about May 2, 2013, in the 600 block of Cokesbury Avenue, he shot and killed Moses Malone with a .22 caliber handgun. In the weeks before his death, Malone had been the victim of a robbery and shooting committed by a member of the BGF Greenmount Regime. On April 19, 2013, Malone identified the BGF member who robbed and shot him during an interview with Baltimore Police officers. Brown admitted that he shot and killed Malone to prevent him from testifying against his fellow BGF member in the pending state case.
According to his plea agreement, Brown further admitted that in the days following Malone’s murder, he requested assistance from another BGF member in disposing of the .22 caliber handgun that he had used to kill Malone. Brown told the other BGF member that the handgun was “dirty” because he had used it to shoot a witness (i.e., Malone) who had implicated a member of the BGF Greenmount Regime in a crime.
Brown admitted that on or about May 12, 2013, he exchanged text messages with a BGF associate, in which he agreed to sell the .22 caliber handgun that he had used to kill Malone for $250.
United States District Judge Bredar has scheduled Brown’s sentencing for February 5, 2018. Brown remains detained pending sentencing.
Acting United States Attorney Schenning commended ATF Baltimore, FBI Baltimore, the Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Peter J. Martinez and Christina A. Hoffman, who are prosecuting the case.
Attorney General Sessions Welcomes Steven Engel as Assistant Attorney General for the Office of Legal CounselRead the Press Release
Attorney General Jeff Sessions welcomed the confirmation of Steven Engel as the Assistant Attorney General of the Department of Justice’s Office of Legal Counsel.
“I applaud the Senate for the confirmation of Steven Engel,” said Attorney General Sessions. “I am confident his extensive legal work and his previous experience in the Office of Legal Counsel have prepared him very well to lead the office that provides legal advice to the President, to the Department, and to every other Executive Branch agency.”
The Assistant Attorney General in charge of the Office of Legal Counsel provides legal advice to the President and all Executive Branch agencies. The Office drafts legal opinions of the Attorney General and provides its own written opinions and oral advice in response to requests from the Counsel to the President, the various agencies of the Executive Branch, and other offices within the Department. Such requests typically deal with legal issues of particular complexity and importance, or those about which two or more agencies are in disagreement. The Office is also responsible for reviewing pending legislation for constitutionality.
All executive orders and substantive proclamations proposed to be issued by the President are reviewed by the Office of Legal Counsel for form and legality, as are various other matters that require the President’s or the Attorney General’s formal approval.
Prior to his confirmation, Engel was a partner at the law firm Dechert LLP, where he appeared in courts across the country, handling a wide range of civil litigation matters, including in the areas of administrative law, commercial litigation, and securities law. An experienced appellate litigator, Engel clerked on the U.S. Court of Appeals for the Ninth Circuit for Judge Alex Kozinski and on the U.S. Supreme Court for Associate Justice Anthony M. Kennedy. In addition, Engel regularly argued in the U.S. Courts of Appeals and the New York appellate courts, and handled appeals before the U.S. Supreme Court, seven U.S. Courts of Appeal, and numerous state appellate courts. Engel was also a member of the pro bono panel for the U.S. Court of Appeals for the Second Circuit.
Before joining Dechert, Engel served as Deputy Assistant Attorney General for the Department’s Office of Legal Counsel, where he provided legal advice to senior policymakers on issues facing the Executive Branch.
Engel graduated summa cum laude from Harvard College and received a master’s degree in history from Cambridge University, where he was a Knox Fellow. He received his law degree from the Yale Law School, where he was the Essays Editor for the Yale Law Journal.
Atlanta Man Pleads Guilty in Federal Court for Using Identification of Mexican Nationals to Attempt Tax FraudRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake stated today that Cristobal Guevara Castelan, age 31, of Atlanta, Georgia, pled guilty in federal court in Anderson. Castelan pled guilty to committing fraud in connection with the use of identification information in violation of Title 18, United States Code, Section 1028. United States District Judge Timothy Cain, of Anderson, accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Castelan coordinated with another individual to use the identities and identification of Mexican nationals to apply for Internal Revenue Service Individual Taxpayer Identification Numbers (ITINs). ITINs are legal identification numbers used to file tax returns by non-resident or resident alien individuals who are present in the country and who are performing work for employers that are withholding various federal monies from the individual’s wages. The ITINs permit the non-resident or resident alien, who does not possess a social security number, to file a legal tax return and to receive, where appropriate, refunds due. Castelan, however, was appropriating the identities of individuals, from Mexico, who had not actually performed any work in the United States, to apply illegally for ITINs and then, subsequently, for fraudulent returns. Through the investigative efforts of the IRS, Castelan’s scheme was disrupted before any improper refunds were actually paid out by the federal government.
Ms. Drake stated that the maximum penalty the defendant can receive is a fine of $250,000 and/or imprisonment of up to 15 years, plus a special assessment of $100.
The case was investigated by Special Agent Edwin Rogers of the Internal Revenue Service. Assistant United States Attorney D. Josev Brewer of the Greenville office handled the case.
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Allentown Physican Sentenced to Prison for Failure to File Federal Income Tax ReturnsRead the Press Release
PHILADELPHIA – Harry W. “Buck” Buchanan, 63, of Allentown, PA, was sentenced yesterday for willfully failing to file tax returns, announced Acting United States Attorney Louis D. Lappen. Buchanan, who operated Harry Buchanan IV MD PC, failed to file federal tax returns in 2009 and 2010, even though his income substantially exceeded the minimum amount establishing the requirement to file. He was sentenced to a term of 6 months confinement, with a year of supervised release to follow.
Buchanan is an ophthalmologist practicing in the Allentown area. In April of 2017, he pled guilty to two counts of willful failure to file tax returns, admitting that he had failed to file tax returns or pay taxes for the years 2009 and 2010, despite knowing of his obligations. In his plea agreement, he acknowledged that he owed federal income taxes, for those two years that totaled $194,643.
This case was investigated by the IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney Bea Witzleben.
Akron man charged with illegally transporting explosive devicesRead the Press Release
The Federal Bureau of Investigation, the United States Attorney’s Office, Northern District of Ohio, Alcohol, Tobacco, Firearms and Explosives, the Akron Police Department, and the Ohio State Highway Patrol, announce Elijah Blankenship has been federally charged with transporting explosive materials, a violation of Title 18, Section 842(a)(3). Blankenship will have an initial appearance in U.S. Magistrate Judge Kathleen Burke’s courtroom today at 10am.
In the early evening of August 16, 2017, Akron Police officers began speaking with Elijah Blankenship in the area of Druid Walk in Akron. Through the discussion with Blankenship it was determined that Blankenship possessed a folding knife in his waistband. An Ohio State Highway Patrol K-9 Officer and his partner approached the scene and alerted to Blankenship's vehicle. Two packages of unknown powder substances, gunpowder and a pipe bomb were discovered during the probable cause search of the vehicle. Blankenship was placed in custody by law enforcement.
All items were collected for laboratory analysis and evidence. The disassembly of the suspected pipe bomb and pyrotechnic aerial shell revealed PVC components containing metal screws, nuts, and bolts as well as an unknown powder. A test burn was conducted of the unknown powder. The powder burned in a manner consistent with an energetic pyrotechnic powder.
Today, November 7, 2017, Elijah Blankenship was charged in federal court with possession of an explosive device without a license.
Stephen Anthony, Special Agent in Charge, Federal Bureau of Investigation said: “Officers on scene are commended for their swift and thorough response to the dangerous situation they encountered. The FBI will continue to work collaboratively with local, state and federal agencies in order to ensure our community and our citizens are kept safe.”
“Law enforcement did an outstanding job identifying this defendant and finding the explosive he possessed,” U.S. Attorney Justin E. Herdman said. “Collaborative efforts such as this are crucial to keeping our nation and community safe.”
“Our officers did a great job being vigilant and proactive in stopping Elijah Blankenship. We are and will continue to work with our federal partners to bring this case to justice,” said Chief Kenneth Ball, Akron Police Department.
“ATF maintains a wealth of expertise in the areas of firearms and explosives,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “This case would not have been possible without the continued professionalism of our partners in the Akron Police Department and the Summit County Bomb Squad. We are committed to working with them and all of our law enforcement partners and to use our expertise to remove the most violent criminals from our streets.”
A complaint is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. The investigation is ongoing, therefore information, other than the unsealed complaint, cannot be provided.
6 November 2017
Yankton Man Sentenced on Bank Robbery ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Yankton, South Dakota, man convicted of Bank Robbery was sentenced on November 6, 2017, by U.S. District Judge Karen E. Schreier.
David William Giese, age 27, was sentenced to 4 years in custody, followed by 4 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund, as well as $6,900 in restitution.
Giese was indicted for bank robbery by a federal grand jury on February 15, 2017. He pled guilty on August 15, 2017.
On July 26, 2016, Giese robbed the Wells Fargo Bank in Yankton. At approximately 4:55 pm, Giese entered the bank wearing an old man mask and carrying a cardboard box. He approached the teller and stated, “Give me all your money. There’s a bomb in the box.” Giese also handed the teller a handwritten note that stated he had a bomb and demanded money. After the teller provided cash from the drawer, Giese left the sealed cardboard box on the counter and told all of the bank employees not to call the police for 30 minutes otherwise the bomb would detonate. Giese exited the bank building and left the scene in his vehicle.
This case was investigated by the Yankton Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Giese was immediately turned over to the custody of the U.S. Marshals Service.
West Des Moines Man Sentenced to More than Three Years in Federal Prison after Providing False Document to the United States Attorney during a Civil False Claims Act InvestigationRead the Press Release
A durable medical equipment store owner who provided false documents to the United States Attorney’s Office during a civil False Claims Act investigation was sentenced on Friday to more than three years in federal prison. James O’Connor, from West Des Moines, Iowa, received the prison term after a June 19, 2017, guilty plea to one count of Making and Using False Documents, in violation of 18 U.S.C. § 1001(a)(3).
In a plea agreement, O’Connor, who operated O’Connor Medical Supply, Inc., in Clive, Iowa, agreed that he provided a false document to the United States Attorney’s Office in response to a Civil Investigative Demand the office issued in conjunction with a civil False Claims Act investigation. Specifically, O’Connor admitted to providing a false Letter of Medical Necessity intended to conceal the fact that he previously submitted a claim to Medicare for a more complex and more expensive orthotic device than what he actually provided to a Medicare beneficiary. O’Connor further admitted that he caused nearly $350,000 in loss to the government.
O’Connor also entered into a settlement agreement to resolve the United States’ civil False Claims Act investigation. As part of that investigation, the United States alleged that O’Connor submitted claims to Medicare and Medicaid for four more expensive models of durable medical equipment than what he actually provided to beneficiaries: ankle foot orthoses, walking boots, knee braces, and wrist finger orthoses. O’Connor agreed to pay $898,523.08 to resolve these allegations. O’Connor paid Medicare full reimbursement in the amount of $177,321.58 and Medicaid full reimbursement in the amount of $172,631.70. Separately, O’Connor agreed to exclude himself as a provider of services in all federal health care programs.
Because a private citizen, known as a relator, filed a qui tam, or whistleblower, lawsuit raising the civil allegations, O’Connor paid the relator’s law firm an additional $51,476.92 in fees. The relator also received $224,630.77 (25%) of the nearly $900,000 recovery pursuant to the qui tam provisions of the False Claims Act. Those provisions permit private individuals with knowledge of wrongdoing to bring suit on behalf of the government for false claims and share in any recovery.
O’Connor was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. O’Connor was sentenced to 37 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $349,953.28 in restitution to the Medicare and Medicaid programs. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Judge Reade found the crime involved at least 3,375 upcoded claims for durable medical equipment between 2011 and 2015. Judge Reade found O’Connor’s criminal conduct was sophisticated, and he in fact passed a 2013 audit. Judge Reade observed “cheating the government is serious,” and found the crime was one of “greed,” “deception,” and “lying.” In denying O’Connor’s request for a sentence of one-day Judge Reade noted it was a substantial aggravating factor in the case that O’Connor had cut, copied, and forged signatures of doctors.
United States Attorney Peter E. Deegan stated, “The result in this case makes clear that health care fraud does not pay. Our Office continues to encourage citizens to report fraud in government health care programs, including Medicare and Medicaid. This conviction and sentence demonstrate that citizen complaints are taken seriously, and absolute honesty is required during our Office’s investigation of those complaints of fraud.”
“This sentencing is an indication to others who engage in these types of illicit activities that they will be caught and they will face justice,” FBI Omaha Field Office Special Agent in Charge Randall Thysse said. “We are proud of the diligent efforts of our team that worked on this case and the close partnership and collaboration we have with the U.S. Attorney’s Office in the Northern District of Iowa and all who assisted with this successful outcome.”
Steve Hanson, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “We will continue to work with our law enforcement partners to identify, and bring to justice, healthcare providers who submit false claims for reimbursement to HHS programs.”
O’Connor was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The criminal case was prosecuted by Assistant United States Attorney Timothy Vavricek, and the civil matter was handled by Assistant United States Attorney Jacob Schunk. The case was investigated by the United States Department of Health and Human Services, the Federal Bureau of Investigation, and the State of Iowa’s Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The criminal case file number is 17-CR-39. The civil case file number is 15-CV-3170-LTS.
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Uniontown Man Sentenced to Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH - A resident of Uniontown, Pennsylvania, has been sentenced in federal court to 28 months’ incarceration, followed by three years’ supervised release, on his conviction of conspiracy to distribute cocaine, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Kent Ramsey, age 44.
According to information presented to the court, Ramsey conspired with others to distribute and possess with intent to distribute at least 500 grams of cocaine.
Acting United States Attorney Song commended the Federal Bureau of Investigation, which led the multi-agency investigation of this case. The investigation also included the Drug Enforcement Administration, the Fayette County Drug Task Force, the Pennsylvania Attorney General’s Office, the Pennsylvania State Police, and the United States Postal Inspection Service. Assistant United States Attorneys Heidi M. Grogan and Troy Rivetti prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Attorney's Office Resolves ADA Investigation of Polling Sites in Isabella County, MI to Ensure Voting Access for People with DisabilitiesRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Michigan today announced that it has reached a resolution under the Americans with Disabilities Act with 11 municipalities in Isabella County, MI to ensure access for individuals with disabilities at polling places. The case was commenced under the U.S. Justice Department’s compliance review authority.
Under the terms of the resolution, 11 cities and townships within Isabella County agreed to make temporary and permanent changes to all of their polling places to make them accessible on Election Day before the next 2018 election. The participating municipalities are:
Broomfield Township,
Chippewa Township,
Coldwater Township,
Deerfield Township,
Gilmore Township,
Isabella Township,
Nottawa Township,
Sherman Township,
Union Township,
City of Clare, and
City of Mt. Pleasant.
“A vibrant democracy requires that all voices are heard. People with disabilities should not be discouraged from voting by physical obstacles at their polling place. We are pleased that so many Townships and Cities in Isabella County are making changes to their polling places to make it easier for people with disabilities to exercise their right to vote,” said Daniel L. Lemisch, Acting U.S. Attorney for the Eastern District of Michigan.
Title II of the ADA prohibits public entities, such as cities and townships, from discriminating against people with disabilities in their programs, services and activities. With respect to polling places, public entities are required to select and use polling places that are accessible. More information about this resolution and the ADA is available at the Justice Department’s toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY), via the ADA website at http://www.ada.gov, or the U.S. Attorney’s Office’s civil rights hotline at (313) 226-9151, or email at [email protected].
U.S. Army Contracting Officer Representative Sentenced to 18 Months in Federal Prison for Accepting Bribes from South Korean CompaniesRead the Press Release
LOS ANGELES – A U.S. Army contracting officer representative who admitted taking hundreds of thousands of dollars in bribes from South Korean contractors in return for approving fraudulent invoices was sentenced today to 18 months in federal prison.
Marcus D. Flowers, 51, of Enterprise, Alabama, was sentenced by United States District Judge Percy Anderson. In addition to the prison term, Judge Anderson ordered Flowers to pay $351,043 in restitution to the United States Army.
Flowers pleaded guilty in June to one count of conspiracy to commit bribery.
Flowers, who worked as a contracting officer representative for the United States Army, was responsible for approving invoices related to the installation of closed circuit televisions at U.S. military installations in the Republic of Korea after verifying the completion of work by contractors. According to court documents, Flowers accepted $351,043 in cash over the course of four years in return for approving payments despite the fact that some contractors never installed the CCTVs, or they installed inferior CCTV models than those required by the contracts.
“This case presents an extreme example of pervasive corruption,” prosecutors wrote in a sentencing memorandum filed with the court. “For at least four years, [Flowers] essentially engaged in a business of betraying his country and dispensing government money in return for cash. The scope was massive, cheating taxpayers out of millions of dollars and reaping [Flowers] the benefit of hundreds of thousands of dollars.”
As part of his plea, Flowers has agreed to forfeit to the government any remaining proceeds of the bribery scheme, which includes real estate purchased in the Philippines.
Prior to surrendering to U.S. authorities late last spring, Flowers was convicted of offenses related to the bribery scheme in a South Korean court and he served approximately 10 months in prison there.
Flowers was permitted to begin serving his prison term on June 25, 2018 so that he may receive medical treatment for a serious health condition.
The federal case that led to Flowers’ arrest and subsequent plea resulted from a joint investigation conducted by the U.S. Army Criminal Investigation Command, the Federal Bureau of Investigation, and the Defense Criminal Investigative Service, which received assistance from South Korean authorities.
The case is being prosecuted by Assistant United States Attorney Daniel O’Brien of the Public Corruption and Civil Rights Section. Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section is assisting in the case.
Two defendants sentenced to federal prison for gun crimesRead the Press Release
CHARLESTON, W.Va. – Two defendants were sentenced to federal prison today on gun charges, announced United States Attorney Carol Casto. Edward William Blake, Jr., 52, of Belle in Kanawha County, was sentenced to a year and nine months in federal prison, having previously pleaded guilty to possessing a firearm after being convicted of a misdemeanor crime of domestic violence. In a separate prosecution, Carlos Lamont Gray, 26, of Detroit, was sentenced to a year and a half in federal prison after previously pleading guilty to being a felon in possession of a firearm.
Blake admitted that on April 18, 2016, officers responded to a domestic violence call at his residence in Belle. The encounter resulted in Blake’s arrest and in his wife being taken to the hospital. When officers returned later that evening with his wife, she informed them that Blake had a gun in the home that he had hidden prior to their arrival earlier in the day. The wife took the officers into the master bedroom and opened a drawer in a small nightstand beside the bed where officers located a Bryco Arms 9mm pistol. Blake was prohibited from possessing any firearm under federal law because of two prior misdemeanor domestic battery convictions in Nicholas County Magistrate Court.
In a separate prosecution, Gray admitted that on February 20, 2017, he and another individual traded a Ruger .223 caliber rifle for a Smith & Wesson .40 caliber handgun at Bridgeport Equipment in Charleston. Gray also admitted that on March 9, 2017, he was pulled over on Nancy Street in Charleston and officers found the loaded Smith & Wesson handgun on his person. Gray was prohibited from possessing any firearm under federal law because of felony convictions in 2012 in Wayne County, Michigan, for receiving or concealing a stolen vehicle and fleeing a police officer.
The Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of Blake. Assistant United States Attorney Monica D. Coleman is in charge of Blake’s prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
The investigation of Gray was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of Gray’s prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Two Cartel Members Sentenced to Life Prison Terms in Slaying of ICE Special Agent Jaime Zapata and Attempted Murder of ICE Special Agent Victor AvilaRead the Press Release
WASHINGTON – Two Mexican nationals were sentenced today to two terms of life in prison for the murder of a federal officer, attempted murder of a federal officer, and related offenses in the killing of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Special Agent Jaime Zapata and the attempted murder of ICE HSI Special Agent Victor Avila on Feb. 15, 2011, in Mexico.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director of the FBI's Criminal Investigative Division Stephen E. Richardson and Acting Director Thomas D. Homan of ICE made the announcement.
The defendants, Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, aka “Zafado,” 36, of San Luis Potosi, Mexico, and Jesus Ivan Quezada Piña, aka “Loco,” 29, of Matamoros, Mexico, are among seven Mexican nationals who were extradited to the United States on federal charges in this case. They were found guilty by a jury on July 27, in the U.S. District Court for the District of Columbia, and sentenced by the Honorable Royce C. Lamberth.
“HSI Special Agents Jaime Zapata and Victor Avila were in Mexico to protect and serve our country when they were ambushed by these ruthless criminals, who will now spend the rest of their lives in a prison cell,” said Acting Assistant Attorney General Blanco. “This case serves as a reminder, that if you harm a U.S. agent, the U.S. government will pursue you to the ends of the earth to ensure that you are brought to justice.”
“Special Agents Zapata and Avila dedicated themselves to federal law enforcement,” said U.S. Attorney Liu. “While working on behalf of our country, they were ruthlessly gunned down in a carjacking attempt by members of hit squads for the Los Zetas drug cartel. We have never forgotten what happened to these two American heroes in that ambush on a Mexican highway more than six years ago. The sentencings this week reflect our determination to protect U.S. officials abroad and bring to justice those who do them harm.”
“This week’s sentencings for those responsible for the murder of ICE Special Agent Jaime Zapata and the attempted murder of Special Agent Victor Avila are the closure and justice we have been working toward since we began our investigation” said Assistant FBI Director Richardson. “Any attack against a federal agent serving his or her country is deeply personal for us and investigating those attacks remain a top priority for the FBI. I want to thank all of our law enforcement partners and our colleagues at the U.S. Attorney’s Office for the District of Columbia for their tireless work to bring this case to a successful conclusion and secure these sentences.”
“The sentences handed down today should serve as a powerful message to drug cartels and other transnational criminal organizations that there is no escape from justice, and that we will not rest until they have been held accountable for their crimes to the fullest extent of the law,” said ICE Acting Director Homan. “We remain grateful to the government of Mexico, the Department of Justice, and all our partners involved in sending these murderers to prison. The men and women of ICE will not forget the example of bravery and sacrifice set by Special Agent Zapata as we work to eradicate these criminal networks across the globe.”
Garcia Sota and Quezada Piña were found guilty of four federal offenses: murder of an officer or employee of the United States; attempted murder of an officer or employee of the United States; attempted murder of an internationally protected person; and using, carrying and brandishing and discharging a firearm during and in relation to a crime of violence causing death. The verdicts followed a trial that began July 10, in the U.S. District Court for the District of Columbia, during which the government presented testimony from 22 witnesses, including Special Agent Avila.
According to the government’s evidence at trial, Garcia Sota and Quezada Piña were members of two Los Zetas hit squads, or “estacas,” and were on a mission on the day of the shootings to steal vehicles for use in the cartel’s operations. On the afternoon of Feb. 15, 2011, Garcia Sota and Quezada Piña were among a group of cartel members who targeted an armored Chevrolet Suburban bearing diplomatic plates and driven by the special agents on a busy highway south of San Luis Potosi. Special Agent Zapata and Special Agent Avila were on official business, heading southbound to Mexico City, when the attack took place. During the ambush, the cartel members fired at and into the agents’ vehicle with handguns and semiautomatic assault weapons, including AK-47 and AR-15 type assault rifles. Special Agent Zapata, 32, was fatally shot, and Special Agent Avila, then 38, was wounded. Investigators later found approximately 90 shell casings at the scene, according to the trial evidence.
Five other defendants previously pleaded guilty to federal charges in this case and are to be sentenced tomorrow. Ruben Dario Venegas Rivera, aka “Catracho,” 29; Jose Ismael Nava Villagran, aka “Cacho,” 35; Julian Zapata Espinoza, aka “Piolin,” 36; and Alfredo Gaston Mendoza Hernandez, aka “Camaron,” 34, pleaded guilty to federal murder and attempted murder charges between August 2011 and October 2016. The fifth defendant, Francisco Carbajal Flores, aka “Dalmata,” 42, pleaded guilty in January 2012 to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE HSI agents. All of the defendants are Mexican nationals, with the exception of Venegas Rivera, who is from Honduras.
This case was investigated by the FBI, with substantial assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Drug Enforcement Administration; U.S. Customs and Border Protection; U.S. Department of State’s Diplomatic Security Service; and U.S. Marshals Service. The Government of Mexico provided substantial assistance throughout the investigative and prosecution phases of the case.
The case was prosecuted by Assistant U.S. Attorneys Michael C. DiLorenzo and Fernando Campoamor-Sanchez of the National Security Section of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys David Karpel and Karen Seifert of the Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section. Former Assistant Deputy Chief Andrea Goldbarg of the Narcotic and Dangerous Drug Section and Assistant U.S. Attorney Jocelyn Ballantine of the U.S. Attorney’s Office also served as members of the prosecution team at earlier stages of the litigation. The Criminal Division’s Office of International Affairs has provided substantial assistance.
Assistance also was provided by Victim/Witness Advocate Yvonne Bryant, Victim/Witness Services Coordinator Tonya Jones, Paralegal Specialist Mac Caille Petursson, and Intern Jake Yelin of the U.S. Attorney’s Office and Paralegal Specialist Alejandra Arias of the Narcotic and Dangerous Drug Section.
Two Cartel Members Sentenced to Life Prison Terms in Slaying of ICE Special Agent Jaime Zapata and Attempted Murder of ICE Special Agent Victor AvilaRead the Press Release
Two Mexican nationals were sentenced today to two terms of life in prison for the murder of a federal officer, attempted murder of a federal officer, and related offenses in the killing of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Special Agent Jaime Zapata and the attempted murder of ICE HSI Special Agent Victor Avila on Feb. 15, 2011, in Mexico.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director of the FBI's Criminal Investigative Division Stephen E. Richardson and Acting Director Thomas D. Homan of ICE made the announcement.
The defendants, Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, aka “Zafado,” 36, of San Luis Potosi, Mexico, and Jesus Ivan Quezada Piña, aka “Loco,” 29, of Matamoros, Mexico, are among seven Mexican nationals who were extradited to the United States on federal charges in this case. They were found guilty by a jury on July 27, in the U.S. District Court for the District of Columbia, and sentenced by the Honorable Royce C. Lamberth.
“HSI Special Agents Jaime Zapata and Victor Avila were in Mexico to protect and serve our country when they were ambushed by these ruthless criminals, who will now spend the rest of their lives in a prison cell,” said Acting Assistant Attorney General Blanco. “This case serves as a reminder, that if you harm a U.S. agent, the U.S. government will pursue you to the ends of the earth to ensure that you are brought to justice.”
“Special Agents Zapata and Avila dedicated themselves to federal law enforcement,” said U.S. Attorney Liu. “While working on behalf of our country, they were ruthlessly gunned down in a carjacking attempt by members of hit squads for the Los Zetas drug cartel. We have never forgotten what happened to these two American heroes in that ambush on a Mexican highway more than six years ago. The sentencings this week reflect our determination to protect U.S. officials abroad and bring to justice those who do them harm.”
“This week’s sentencings for those responsible for the murder of ICE Special Agent Jaime Zapata and the attempted murder of Special Agent Victor Avila are the closure and justice we have been working toward since we began our investigation” said Assistant FBI Director Richardson. “Any attack against a federal agent serving his or her country is deeply personal for us and investigating those attacks remain a top priority for the FBI. I want to thank all of our law enforcement partners and our colleagues at the U.S. Attorney’s Office for the District of Columbia for their tireless work to bring this case to a successful conclusion and secure these sentences.”
“The sentences handed down today should serve as a powerful message to drug cartels and other transnational criminal organizations that there is no escape from justice, and that we will not rest until they have been held accountable for their crimes to the fullest extent of the law,” said ICE Acting Director Homan. “We remain grateful to the government of Mexico, the Department of Justice, and all our partners involved in sending these murderers to prison. The men and women of ICE will not forget the example of bravery and sacrifice set by Special Agent Zapata as we work to eradicate these criminal networks across the globe.”
Garcia Sota and Quezada Piña were found guilty of four federal offenses: murder of an officer or employee of the United States; attempted murder of an officer or employee of the United States; attempted murder of an internationally protected person; and using, carrying and brandishing and discharging a firearm during and in relation to a crime of violence causing death. The verdicts followed a trial that began July 10, in the U.S. District Court for the District of Columbia, during which the government presented testimony from 22 witnesses, including Special Agent Avila.
According to the government’s evidence at trial, Garcia Sota and Quezada Piña were members of two Los Zetas hit squads, or “estacas,” and were on a mission on the day of the shootings to steal vehicles for use in the cartel’s operations. On the afternoon of Feb. 15, 2011, Garcia Sota and Quezada Piña were among a group of cartel members who targeted an armored Chevrolet Suburban bearing diplomatic plates and driven by the special agents on a busy highway south of San Luis Potosi. Special Agent Zapata and Special Agent Avila were on official business, heading southbound to Mexico City, when the attack took place. During the ambush, the cartel members fired at and into the agents’ vehicle with handguns and semiautomatic assault weapons, including AK-47 and AR-15 type assault rifles. Special Agent Zapata, 32, was fatally shot, and Special Agent Avila, then 38, was wounded. Investigators later found approximately 90 shell casings at the scene, according to the trial evidence.
Five other defendants previously pleaded guilty to federal charges in this case and are to be sentenced tomorrow. Ruben Dario Venegas Rivera, aka “Catracho,” 29; Jose Ismael Nava Villagran, aka “Cacho,” 35; Julian Zapata Espinoza, aka “Piolin,” 36; and Alfredo Gaston Mendoza Hernandez, aka “Camaron,” 34, pleaded guilty to federal murder and attempted murder charges between August 2011 and October 2016. The fifth defendant, Francisco Carbajal Flores, aka “Dalmata,” 42, pleaded guilty in January 2012 to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE HSI agents. All of the defendants are Mexican nationals, with the exception of Venegas Rivera, who is from Honduras.
This case was investigated by the FBI, with substantial assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; U.S. Customs and Border Protection; U.S. Department of State’s Diplomatic Security Service; and U.S. Marshals Service. The Government of Mexico provided substantial assistance throughout the investigative and prosecution phases of the case.
The case was prosecuted by Assistant U.S. Attorneys Michael C. DiLorenzo and Fernando Campoamor-Sanchez of the National Security Section of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys David Karpel and Karen Seifert of the Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section. Former Assistant Deputy Chief Andrea Goldbarg of the Narcotic and Dangerous Drug Section and Assistant U.S. Attorney Jocelyn Ballantine of the U.S. Attorney’s Office also served as members of the prosecution team at earlier stages of the litigation. The Criminal Division’s Office of International Affairs has provided substantial assistance.
Assistance also was provided by Victim/Witness Advocate Yvonne Bryant, Victim/Witness Services Coordinator Tonya Jones, Paralegal Specialist Mac Caille Petursson, and Intern Jake Yelin of the U.S. Attorney’s Office and Paralegal Specialist Alejandra Arias of the Narcotic and Dangerous Drug Section.
Two Associates of La Cosa Nostra Plead Guilty to Extortion-Related ChargesRead the Press Release
Two associates of the Genovese La Cosa Nostra (LCN) crime family pleaded guilty today to extortion-related charges.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney William D. Weinreb for the District of Massachusetts; Special Agent in Charge Harold H. Shaw of the of the FBI Boston Division and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police made the announcement today.
Ralph Santaniello, 50, and Giovanni Calabrese, 54, both of Longmeadow, Massachusetts, each pleaded guilty to two counts of Interference with Commerce by Threats or Violence and two counts of Using Extortionate Means to Collect an Extension of Credit. Santaniello and Calabrese are scheduled to be sentenced on Jan. 29, 2018 and Jan. 30, 2018, respectively, before U.S. District Court Judge Timothy S. Hillman. Santaniello and Calabrese were arrested and charged in August 2016 along with three other associates, Gerald Daniele, Francesco Depergola, and Richard Valentini.
According to the indictment, in conducting their illegal activities, Santaniello and Calabrese used violence and, exploiting what the victims believed to be their relationship with the Genovese La Cosa Nostra Crime Family, implied threats of physical violence and death to instill fear in their victims.
In 2013, Santaniello, Calabrese, Depergola, and Valentini allegedly attempted to extort money from a Springfield businessman. Santaniello assaulted the businessman and threatened to cut off his head and bury his body if he did not pay. Over a period of four months, the businessman paid $20,000 to Santaniello, Calabrese, Depergola, and Valentini to protect himself and his business.
In 2015, a Springfield resident took a gambling loan in the amount of $3,700 from an indicted co-conspirator. During a six-month period, the man was threatened that if he did not make payments, the total amount of the loan increased to $5,000 without notice or justification. Santaniello and Calabrese assisted the co-conspirator in the collection of the loan.
Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Kevin O’Regan, Chief of Weinreb’s Springfield Branch Office are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Associates of La Cosa Nostra Plead Guilty to Extortion-Related ChargesRead the Press Release
BOSTON – Two associates of the Genovese La Cosa Nostra (LCN) crime family pleaded guilty today in federal court in Worcester to extortion-related charges.
Ralph Santaniello, 50, and Giovanni Calabrese, 54, each pleaded guilty to one count of conspiracy to interfere with commerce by threats or violence; one count of interference with commerce by threats or violence – aiding and abetting; one count of conspiracy to use extortionate means to collect extensions of credit; and one count of using extortionate means to collect extensions of credit – aiding and abetting. U.S. District Court Judge Timothy S. Hillman scheduled their sentencings for Jan. 29, 2018, and Jan 30, 2018, respectively. Santaniello and Calabrese were arrested and charged in August 2016 along with three other associates, Gerald Daniele, Francesco Depergola and Richard Valentini.
Santaniello and Calabrese, along with their alleged co-defendants, were associates of the New York-based Genovese LCN crime family and engaged in various criminal activities in Springfield, Mass., including loansharking and extortion from legitimate and illegitimate businesses, such as illegal gambling businesses and the collection of unlawful debts. The defendants allegedly used violence, exploited their relationship with LCN, and implied threats of murder and physical violence to instill fear in their victims.
In 2013, Santaniello, Calabrese, Depergola and Valentini allegedly attempted to extort money from a Springfield businessman. Santaniello assaulted the businessman and threatened to cut off his head and bury his body if he did not comply. Over a period of four months, the businessman paid $20,000 to Santaniello, Calabrese, Depergola and Valentini to protect himself and his business.
In addition, during a six-month period in 2015, it is alleged that Daniele extended two extortionate and usurious loans to an individual, and then, along with Santaniello and Calabrese, threatened the individual if he did not make payments on the loans.
Each charge provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Hampden County District Attorney Anthony Gulluni; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police made the announcement today. Kevin O’Regan, Chief of Weinreb’s Springfield Branch Office, and Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Men Sentenced in Connection with Online Sales of Stolen Razor BladesRead the Press Release
BOSTON – Three Boston-area residents, including a former Gillette employee, were sentenced today in federal court in Boston in connection with the online sales of stolen Gillette razor blades.
Joseph Evangelista, 63, of Lowell; Robert A. Liberatore, 52, of Wakefield; and Mark S. Girardin, 44, of Randolph, were sentenced by U.S. District Court Judge Allison D. Burroughs to three years of probation. Liberatore must spend the first six months of his probation on home confinement and Evangelista must abide by a curfew for six months, both subject to electronic monitoring. Girardin must spend the first six months of his probation in a community confinement center and the second six months on home confinement, also subject to electronic monitoring. In addition, Liberatore and Girardin were each ordered to pay restitution in the amount of $116,028 to the IRS, and Evangelista was ordered to pay restitution of $56,023 to Gillette. In August 2017, Evangelista pleaded guilty to one count of causing the interstate transportation of stolen property, and Liberatore and Girardin each pleaded guilty to two counts of filing false tax returns.
Evangelista, a former employee of Gillette, stole razor blades from the Gillette manufacturing plant in South Boston and delivered the stolen goods to Liberatore and Girardin, who operated an online business called Cambridge Dedicated Services, through which they sold various items on eBay, including Gillette razor blades. Liberatore and Girardin failed to report income generated through Cambridge Dedicated Services on their annual federal tax returns.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Christine Wichers of Weinreb’s Criminal Division prosecuted the case.
Somerset Men Sentenced for Methamphetamine Trafficking and Firearms PossessionRead the Press Release
LEXINGTON, Ky. – Jason Whitis, 41, Robbie Neal Whitis, 34, and Joshua Kelley Pyles, 33, each of Somerset, Ky., were sentenced today, by Senior United States District Judge Joseph M. Hood, for conspiring to distribute 50 grams or more of methamphetamine. Robbie Whitis and Pyles were also sentenced for possessing a firearm in furtherance of the methamphetamine conspiracy. Jason Whitis was sentenced to 200 months in prison; Robbie Whitis was sentenced to 75 months; and Pyles was sentenced to 120 months.
Jason Whitis and Robbie Whitis previously pleaded guilty, on August 7, 2017, and admitted that they conspired with each other and Pyles to distribute approximately 220 grams of methamphetamine. The methamphetamine was intended for distribution in the Somerset area. The methamphetamine was discovered during a traffic stop of a vehicle occupied by all three defendants, in Fayette County, on April 26, 2017. During the traffic stop, Robbie Whitis and Pyles were each found in possession of a firearm. Robbie Whitis then admitted that he possessed the firearm for protection, in furtherance of the drug crime. Pyles was found guilty after a jury trial, in August of this year.
Under federal law, all three men must serve 85 percent of their prison sentences. Following their release, they will then be under the supervision of the United States Probation Office.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, DEA Special Agent in Charge; and Richard Sanders, Commissioner, Kentucky State Police, jointly made the announcement.
The investigation was conducted by the DEA and the Kentucky State Police. The United States was represented by Assistant United States Attorneys Robert M. Duncan, Jr., and Lauren Tanner Bradley.
Seattle Area Man Convicted of Multiple Counts of Sex Trafficking by Force, Fraud, or Coercion, Sex Trafficking of a Minor, and Production of Child PornographyRead the Press Release
WASHINGTON – A 51 year-old Seattle-area man was convicted of 17 federal felonies today in the U.S. District Court in Seattle for his scheme to recruit young women and girls and force them to engage in prostitution, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Annette L. Hayes of the Western District of Washington, and Special Agent in Charge Jay S. Tabb, Jr. of the FBI’s Seattle Field Office.
David D. Delay was convicted following a ten-day jury trial. The jury deliberated approximately 90 minutes before returning guilty verdicts on the following counts: conspiracy to engage in sex trafficking through force, fraud, and coercion; three counts of sex trafficking adults through force, fraud, and coercion; two counts of attempted sex trafficking of a juvenile through force, fraud, and coercion; one count of attempted sex trafficking through force, fraud, and coercion; conspiracy to transport females for prostitution and six counts of transporting individual victims for prostitution; two counts of production of child pornography; and one count of obstruction of and interference with a sex trafficking investigation.
According to evidence presented in court, including the testimony of seven victims, the defendant targeted vulnerable teenagers and young women in their early 20s on the internet, enticing them to travel to Seattle with false promises of fame and fortune and a starring role in a purported HBO documentary that he claimed to be producing and filming. In order to convince the victims that his assertions were true, Delay sent them falsified bank account screenshots supposedly depicting the profits of his other films, a photograph of himself outside of an HBO office, and seemingly official, binding contracts that he asked them to sign. An HBO representative testified that the company did not have any business dealings with Delay.
Once the victims arrived in Seattle, the defendant coerced them to engage in prostitution for his profit. He manipulated them emotionally and psychologically, isolated them, established their complete dependency on him, and in some instances threatened legal action, falsely claiming that the victims had violated the terms of their contracts and were subject to civil lawsuits. In furtherance of his sex trafficking scheme, the defendant also enticed two minor victims to produce graphic pornographic photographs and videos for him, and in one instance threatened to release sexually explicit video images of a victim unless she complied with his demands.
“This defendant preyed on vulnerable teenagers and young women, exploiting them for his own profit and sexual gratification, with no regard for their humanity,” said Acting Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Department of Justice will vigorously pursue sex traffickers and hold them accountable for their horrific crimes.”
“I commend the victims who courageously took the witness stand and described some of the darkest moments in their lives,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “It was their testimony coupled with the other evidence in this case that demonstrated for all to see that the defendant’s outrageous actions were nothing less than criminal.”
Defendant Delay’s sentencing has been scheduled for Feb. 2, 2018 at 9:00 a.m. He faces a maximum sentence of life imprisonment.
Co-defendant Marysa Comer, 22, of Matthews, North Carolina, previously pleaded guilty on Nov. 16, 2015, to one count of sex trafficking conspiracy for her role in defendant Delay’s scheme. She faces up to life in prison at her sentencing, which is scheduled for Dec. 1, 2017.
The case was investigated by the FBI’s Seattle Field Office and the Redmond Police Department, along with assistance from the FBI’s Chicago Field Office, the King County Sheriff’s Office, the Beaverton, Oregon Police Department, and the Bureau of Prisons. The case was prosecuted by Assistant U.S. Attorney Kate Crisham and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Seattle Area Man Convicted of 17 Federal Felonies for Scheme to Exploit Young Women and Juveniles in ProstitutionRead the Press Release
A 51 year-old Seattle-area man was convicted today in U.S. District Court in Seattle of 17 federal felonies for his scheme to recruit young women and girls, and force them to engage in prostitution, announced U.S. Attorney Annette L. Hayes, Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, and Special Agent in Charge Jay S. Tabb, Jr. of the FBI’s Seattle Field Office.
DAVID D. DELAY was convicted following a ten-day jury trial. The jury deliberated approximately 90 minutes before returning guilty verdicts on the following counts: conspiracy to engage in sex trafficking through force, fraud, and coercion; three counts of sex trafficking adults through force, fraud, and coercion; two counts of attempted sex trafficking of a juvenile through force, fraud, and coercion; one count of attempted sex trafficking through force, fraud, and coercion; conspiracy to transport females for prostitution and six counts of transporting individual victims for prostitution; two counts of production of child pornography; and one count of obstruction of and interference with a sex trafficking investigation.
According to evidence presented in court, including the testimony of seven victims, the defendant targeted vulnerable teenagers and young women in their early 20s on the internet, enticing them to travel to Seattle with false promises of fame and fortune, and a starring role in a purported HBO documentary that he claimed to be producing and filming. In order to convince the victims that his assertions were true, DELAY sent them falsified bank account screenshots supposedly depicting the profits of his other films, a photograph of himself outside of an HBO office, and seemingly official, binding contracts that he asked them to sign. An HBO representative testified that the company did not have any business dealings with DELAY.
Once the victims arrived in Seattle, the defendant coerced them to engage in prostitution for his profit. He manipulated them emotionally and psychologically, isolated them, established their complete dependency on him, and in some instances threatened legal action, falsely claiming that the victims had violated the terms of their contracts and were subject to civil lawsuits. In furtherance of his sex trafficking scheme, the defendant also enticed two minor victims to produce graphic pornographic photographs and videos for him, and in one instance threatened to release sexually explicit video images of a victim unless she complied with his demands.
“I commend the victims who courageously took the witness stand and described some of the darkest moments in their lives,” said U.S. Attorney Annette L. Hayes. “It was their testimony coupled with the other evidence in this case that demonstrated for all to see that the defendant’s outrageous actions were nothing less than criminal.”
“This defendant preyed on vulnerable teenagers and young women, exploiting them for his own profit and sexual gratification, with no regard for their humanity,” said Acting Assistant Attorney General John Gore. “The Department of Justice will vigorously pursue sex traffickers and hold them accountable for their horrific crimes.”
Defendant DELAY’s sentencing has been scheduled for February 2, 2018, at 9:00 a.m. He faces a maximum sentence of life imprisonment.
Co-defendant Marysa Comer, 22, of Matthew, North Carolina, previously pleaded guilty on November 16, 2015, to one count of sex trafficking conspiracy for her role in defendant DELAY’s scheme. She faces up to life in prison at her sentencing, which is scheduled for December 1, 2017.
The case was investigated by the FBI’s Seattle Field Office and the Redmond Police Department, along with assistance from the FBI’s Chicago Field Office, the King County Sheriff’s Office, the King County Prosecuting Attorney's Office, the Beaverton, Oregon Police Department, and the Bureau of Prisons. The case was prosecuted by Assistant U.S. Attorney Kate Crisham and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Romanian Sentenced for Role in Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Nicolae Sarbu, of Romania, who was convicted of conspiracy to commit bank fraud and aggravated identity theft, was sentenced to 25 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution to the Bank of America in the amount of $183,120.54. In addition, co-defendant Marinela Unguru-Ducila, also of Romania, was sentenced to time served upon her prior plea of guilty.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between August 2015 and November 2015, Sarbu conspired with Marinela Unguru-Ducila and others to execute a scheme to defraud Bank of America. The defendants used skimming devices and cameras on 10 occasions at automated teller machines (ATM’s) in the Buffalo and Rochester areas and in Pennsylvania and New Jersey. Bank account information and personal identification numbers (PIN’s) were recorded without the true account holder’s knowledge or authorization and then used to make unauthorized withdrawals of cash from various ATM’s in the Western District of New York, Pennsylvania, and New Jersey. A skimmer is a device used unlawfully to record bank account information from a customer’s debit card when the card is inserted into an ATM. Defendant Sarbu also encoded the bank account information obtained by the skimmers onto magnetic strips on blank plastic cards and gift cards. Unguru-Ducila was present with Sarbu when he installed skimmers at multiple banks in North Tonawanda, NY and West Seneca, NY and failed to notify authorities about this felony crime.
The sentencing is the result of an investigation by immigration and Customs Enforcement, Homeland security investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
Rochester Man Pleads Guilty to Selling Counterfeit CoinsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today Timothy Meacham, 32, of Rochester, NY, pleaded guilty to selling counterfeit coins before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 15 years prison and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that in May 2017, Meacham posted an ad on Craigslist advertising the sale of two genuine United States gold collector coins. The defendant used a false name and concealed his phone number in the ad in order to hide his true identity. The victim, a Pennsylvania man, contacted Meacham and traveled to Rochester on May 15, 2017, at which time he purchased the counterfeit coins for $5,000.00 cash. As part of the fraud, the defendant falsely represented that the coins were authentic and had been passed to Meacham from his deceased grandfather. The defendant also falsely represented that he needed to sell the coins in order to pay for funeral expenses related to the unexpected death of a family member. Upon his return to Pennsylvania, the victim discovered that the coins were counterfeit and contacted the United States Secret Service in Rochester which began an investigation leading to the arrest of Meacham.
The plea is the result of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Sentencing is scheduled for February 5, 2018, before Judge Wolford.
Pittsburgh Man Sentenced to 8 Years in Prison for Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH – Kevin Scott was sentenced to 97 months in federal prison for conspiring to distribute heroin and possessing a firearm in furtherance of that drug trafficking crime, Acting United States Attorney Soo C. Song announced today.
Scott, age 22, formerly of Pittsburgh, Pennsylvania, was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that Scott serve four years of supervised release after he is released from prison.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Phelps County Woman Sentenced for Defrauding Assisted Living CenterRead the Press Release
St. Louis, MO – Denise Rea Barner was sentenced to a term of imprisonment of 15 months in the Federal Bureau of Prisons for fraudulently using her employer’s debit card for personal gain. Barner was further ordered to pay restitution to the victim in the amount of $125,576.80.
According to court documents, from July 1991 to February 25, 2016, Barner was an employee of the Robert L. Kyle Center Home for Semi-Independent Living Inc. She was named as a “Director” of the Kyle Center in about November of 2004 and her duties included general accounting.
Beginning in about November 2007 and ending in February 2016, Barner falsely and fraudulently used the Kyle Center debit cards to make unauthorized personal purchases and ATM withdrawals. The Kyle Center sustained a loss of between $95,000.00 and $150,000.00.
Barner, 54, Rolla, Missouri, pled guilty in July to one felony count of access device fraud and appeared today for sentencing before United States District Judge Rodney W. Sippel.
Access device fraud carries a maximum penalty of 10 years and/or a fine of up to $250,000.00 or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Rolla Police Department. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney’s Office.