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Wednesday 20 September 2017
Hartford Man Who Distributed Fentanyl Involved in Overdose Death of East Haddam Teen Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HECTOR RAUL CINTRON, also known as “G” and “Big G,” 23, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by three years of supervised release, for distributing fentanyl involved in an overdose of an East Haddam resident last year. Judge Bryant also ordered CINTRON to pay restitution to the victim’s family to cover the victim’s funeral expenses.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the morning of March 19, 2016, Connecticut State Police and emergency medical personnel responded to a residence in East Haddam on the report of an “untimely death.” The victim, an 18-year-old male, was pronounced dead at the scene. At the scene, State Police seized the victim’s cell phone and multiple glassine bags containing powder residue. The investigation revealed that Kerry Scanlan, of Avon, arranged to purchase heroin from CINTRON in Hartford. On March 18, 2016, the victim drove to Avon, picked up Scanlan and then drove to Hartford to purchase heroin from CINTRON.
On April 4, 2016, the Office of the Chief Medical Examiner issued a report listing the victim’s cause of death as “acute fentanyl intoxication.”
On two occasions in November 2016, CINTRON sold approximately 200 bags of heroin to an individual working with law enforcement.
CINTRON was arrested on December 15, 2016. On June 6, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
CINTRON, who is released on a $50,000 bond, was ordered to report to prison on November 1.
Scanlan pleaded guilty to a related charge and awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force East, and East Haddam Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Hartford Man Sentenced to 5 Years in Prison for Distributing Heroin Involved in Enfield Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AARON GYAMBIBI, also known as “E,” 27, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by five years of supervised release, for distributing heroin involved in an overdose death in Enfield last year.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on May 7, 2016, a 31-year-old male died of suspected drug overdose at an Enfield residence. Enfield Police seized a quantity of heroin and narcotics paraphernalia from the scene.
The Office of the Chief Medical Examiner for the State of Connecticut subsequently determined that the victim died from acute heroin and fentanyl toxicities.
The investigation, which included analysis of the victim’s cellphone, revealed that the heroin ingested by the victim shortly before his death was purchased from GYAMBIBI.
GYAMBIBI has been detained since his arrest on November 16, 2016. On March 23, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This matter was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the Enfield Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Gray Man Sentenced to 15 Months for Illegal Firearm PossessionRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Matthew Feehan, 30, of Gray, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby, to 15 months in prison for being a felon in possession of a firearm.
According to court records, in September and October 2015, the defendant possessed a Sig Sauer 9mm semi-automatic pistol. Feehan was prohibited from possessing the firearm because of a prior felony conviction for theft.
The case was investigated by the Maine State Police; the Central Maine Violent Crime Task Force; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Gila River Man Sentenced to over 21 Years in Prison for MurderRead the Press Release
PHOENIX – On Sept. 19, 2017, Gabriel Michael Alvarez, 25, of Sacaton, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge G. Murray Snow to 262 months in prison. Alvarez had previously pleaded guilty to second-degree murder. Also sentenced was Roger Matthew James, of Chandler Heights, Ariz., 27, also a member of the Gila River Indian Community, to 15 years in prison for discharge of a firearm during a crime of violence, after previously pleading guilty.
The investigation in this case was conducted by the Gila River Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00041-PHX-GMS
RELEASE NUMBER: 2017-090_Alvarez etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Gang Member Sentenced to 33 Years in Prison for Shooting Oakland Police OfficerRead the Press Release
OAKLAND – Damion McDaniel was sentenced today to 33 years in prison for shooting an Oakland police officer on January 21, 2013, just 28 hours after he and three other gang members from the Seminary neighborhood in East Oakland shot a rival gang member in a street-corner ambush. The sentenced was announced by United States Attorney Brian J. Stretch and FBI Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Phyllis J. Hamilton, U.S. District Judge.
McDaniel, 27 of Oakland, pleaded guilty on April 27, 2017 to Racketeering Conspiracy (18 U.S.C. § 1962(d)); Attempted Murder in Aid of Racketeering (18 U.S.C. § 1959(a)(5)); Assault with a Dangerous Weapon in Aid of Racketeering Resulting in Serious Bodily Injury (18 U.S.C. § 1959(a)(3)); and Discharging a Firearm in Furtherance of a Crime of Violence (18 U.S.C. § 924(c)).
“Mr. McDaniel posed a significant threat to the public,” said U.S. Attorney Stretch. “Today’s sentence assures the public that this violent criminal will be off the streets for the next three decades. This office will continue to pursue violent and dangerous criminals to the fullest extent of the law. I want to thank all of our federal and state law enforcement partners whose cooperation and efforts helped bring Mr. McDaniel to justice.”
McDaniel admitted that he and three other gang members from East Oakland’s Seminary neighborhood, known as “Sem City,” conspired to murder a rival gang member found in their neighborhood. The four men converged on the victim who was standing at a bus stop. After a volley of gunfire, one of the gang members ran up to the victim lying on the ground and shot him in the head from close range. The man did not die. The next day, after receiving a tip that the get-away car was located in an apartment complex in East Oakland, an Oakland Police Officer went to investigate and was attacked by McDaniel and two other gang members. The officer resisted their attack, but was restrained and struck in the head as the assailants threatened to kill him. McDaniel shot the officer in the arm when the officer refused to give up his service pistol. The officer sustained injuries to the head and forearm.
A federal grand jury indicted McDaniel on December 19, 2013. He was charged with organized crime violations, including racketeering, attempted murder, assault with a deadly weapon, and use of a firearm to further a crime of violence.
Two other gang members from the “Sem City” neighborhood who were also indicted in the federal case, Deante Kincaid (aka “Tay Tay”) and Joseph Pennymon (aka “Junkie”), pleaded guilty to their roles in the offenses last month.
In addition to the prison term, Judge Hamilton also sentenced the defendant to a 5-year period of supervised release to follow the prison term. The defendant has been in custody since 2013 and will begin serving the sentence immediately.
Assistant U.S. Attorneys Joseph Alioto and Scott Joiner are prosecuting the case, with the assistance of Kevin Costello. The prosecution is the result of an investigation led by the Federal Bureau of Investigation, and, at its earlier stages, the Oakland Police Department.
Fourth Defendant Admits Defrauding Clifton-Based Trucking Company of More Than $900,000Read the Press Release
NEWARK, N.J. – A Clifton, New Jersey, woman today admitted her role in a scheme to defraud a New Jersey-based trucking company of over $900,000, Acting U.S. Attorney William E. Fitzpatrick announced.
Lisa Popewiny, 55, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to Count One of an indictment charging her with wire fraud. Brothers Miguel Vidal, Angel D. Vidal, and Angel Gabriel Vidal previously pleaded guilty to wire fraud charges for their roles in the scheme.
According to documents filed in the case and statements made in Court:
Popewiny was the payroll clerk at Clifford B. Finkle Jr. Inc., a Clifton company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, and the Vidals, including Miguel Vidal – a former truck driver for the Company – engaged in a scheme to defraud the company of $920,380.
Popewiny falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees, including the Vidal brothers. All of the Vidal brothers have admitted to allowing the use of their personal identifying information to generate the fraudulent paychecks. The three men then converted the fraudulent paychecks, many of which were deposited into their bank accounts and then funneled out of the accounts in cash. Miguel Vidal admitted to recruiting other individuals to provide their personal information so that Popewiny could falsely add them to the payroll. Popewiny input false hours for at least 12 different individuals. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, several paychecks remained unclaimed that turned out to be fraudulently issued.
The charge to which Popewiny pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 12, 2018.
Acting U.S. Attorney William E. Fitzpatrick credited criminal investigators in the U.S. Attorney’s Office and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Cari Fais, of the Special Prosecution Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey
Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately by a federal grand jury for illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Wilman Pereira-Bonilla, age 36, of El Salvador, was previously deported from the United States on two prior occasions in April 2011 and November 2011. He is alleged to have illegally re-entered the United States sometime after November 2011, and was found in the United States in Adams County, Pennsylvania, after eluding examination or inspection by immigration officers. In July 2004, he was convicted in the Commonwealth of Virginia of grand larceny, an offense which subjects him to enhanced penalties in the current case.
Because of Pereira-Bonilla’s previous conviction, under federal law he faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
Esvin Recinos-Ruano, age 26, of Guatemala, was previously deported from the United States to Guatemala in February 2016. He is alleged to have illegally re-entered the United States sometime after February 2016, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers.
Manuel Lucero-Samayoa, age 40, of Guatemala, was previously deported from the United States to Guatemala on four prior occasions in November 1998, June 2001, June 2011, and January 2013. He is alleged to have illegally re-entered the United States sometime after January 2013, and was found in the United States in Centre County, Pennsylvania after eluding examination or inspection by immigration officers.
David Ramirez-Ferrer, age 39, of Mexico, was previously deported from the United States to Mexico in May 2011. He is alleged to have illegally re-entered the United States sometime after May 2011, and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Recinos-Ruano, Lucero-Samayoa, and Ramirez-Ferrer face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
The cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Scout Leader Sentenced to 7 Years in Prison for Online Distribution of Child Pornography and Attempted Deletion of EvidenceRead the Press Release
SACRAMENTO, Calif. — Dennis Boyle, 53, of Davis, was sentenced today by U.S. District Judge Kimberly J. Mueller to seven years in prison for distributing child pornography and obstruction of justice, U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement agents identified a user on a messenger service who was offering videos of child pornography in an online chat room. The investigation led to Boyle’s residence, which was then in Orangevale. Boyle was a financial auditor for the State of California and a charter organization representative for the Boy Scouts.
Between August and October of 2015, Boyle distributed and received depictions of minors engaged in sexually explicit conduct. Boyle obstructed justice when he attempted to persuade a friend to delete electronic evidence stored on a laptop computer and on remote servers. The friend reported the solicitation to authorities, and assisted in the investigation by recording a meeting with Boyle who admitted to viewing, downloading, and distributing child pornography, and, further, admitted to online chats with girls aged 14 to 18.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew D. Segal 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Owner of Durable Medical Equipment Supplier to Pay $220,000 to Resolve Civil False Claims AllegationsRead the Press Release
PHILADELPHIA – Victor Saul, of Egg Harbor Township, New Jersey and a former owner of R&V Medical Supplies LLC (R&V), has agreed to pay $220,000 to resolve civil claims under the False Claims Act. The government’s claims concern allegations of fraud in connection with the sale of durable medical equipment. The civil resolution was announced today by Acting United States Attorney Louis D. Lappen.
Victor Saul owned R&V together with his brother, Robert Saul, and Robert’s wife, Sheila Saul. R&V was a supplier of durable medical equipment that provided wheelchairs, braces, scooters, heating pads and other products to the elderly and the infirm. The government alleges that R&V engaged in an extensive scheme to defraud the Medicare program from approximately 2005 through 2008. The United States alleges that through R&V, Victor Saul caused to be submitted – by acting in reckless disregard of R&V’s scheme – false claims for reimbursement for durable medical equipment to Medicare. Specifically, the United States contends that R&V, through its principals:
- directed individuals who worked at doctors’ offices to write prescriptions, to prepare medical authorizations and/or physician orders that were not ordered or authorized by a physician;
- either forged doctors’ signatures or directed other individuals to forge doctors’ signatures on these documents;
- provided equipment to patients that was not ordered by submitting false claims for payment for patients with falsified physician orders or medical authorizations;
- billed for medical equipment and supplies that were never provided to any patient;
- paid remuneration in the form of kickbacks to employees of medical providers and social service agencies in exchange for confidential information, including names, social security numbers, insurance information and other personal information that was used to submit these false claims.
Victor Saul’s brother, Robert Saul, was charged criminally and was sentenced in 2011 to 66 months in prison for Medicare fraud and other related offenses. In addition to the prison term, Robert Saul was ordered to pay $845,000 in restitution, a fine of $10,000, and a special assessment of $10,500. R&V was also charged criminally and was sentenced to five years of probation, a fine of $8,000, and a special assessment of $42,000.
As part of the agreement to resolve the government’s claims under the False Claims Act, Victor Saul did not admit to any liability or wrongdoing.
The allegations arose from an investigation led by the Federal Bureau of Investigation and Department of Health and Human Services Office of Inspector General. The case was handled by Assistant United States Attorney David A. Degnan.
Former Finance Manager at Trophy Nissan Pleads Guilty in Connection with Owning and Running Brothels in Dallas, TexasRead the Press Release
DALLAS — Jeffrey Wittman, 52, and his company JBJ Services, LLC (“JBJ”), appeared in federal court yesterday morning before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to charges related to the ownership and operation of at least two businesses that were fronts for illegal brothels in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Wittman and JBJ pleaded guilty to one count of conspiracy to violate the Travel Act. Wittman faces a maximum penalty of not more than 5 years in federal prison and a $250,000 fine. Wittman has agreed to forfeit the building that was used to run one of the brothels and has agreed to pay a money judgment of not less than $200,000. JBJ faces a maximum penalty of a fine not to exceed $500,000 and has agreed to pay a money judgment of not less than $200,000. Wittman has been in custody since the time of his arrest in March 2017. A sentencing hearing has been set for January 10, 2018.
Chongok Ellsworth, 62, is scheduled to plead guilty to the conspiracy. Wittman’s wife, Chin Young Song, 50, and Puna Kim, 54, are awaiting trial.
According to documents filed in the case, during the time period from at least January 2014 through February 2017, Wittman, along with others, owned and/or operated brothels in the North Texas area. Specifically, Wittman and his coconspirators managed, promoted, and facilitated brothels called “Sakura” and “The Palace.” Wittman, who until his arrest in this case was working as a finance manager at Trophy Nissan, created JBJ with Song, to facilitate the operation of these businesses. Wittman and JBJ entered into several contracts that facilitated the prostitution business enterprise and maintained a bank account from which the illegal businesses operated. Wittman and his codefendants used the Internet, ATM machines, and phones to facilitate the brothels’ operations. Several online advertisements for Sakura and The Palace were posted during the course of the conspiracy, many of which contained photos of scantily clad women and advertised phone numbers of each of the businesses. In addition, both The Palace and Sakura leased space for ATMs to operate inside both businesses to further facilitate the brothels.
The Federal Bureau of Investigation, with the assistance of the Dallas Police Department, investigated the case. Assistant U.S. Attorneys Jamie L. Hoxie and Joseph A. Magliolo are in charge of the prosecution.
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Former Canadian Mountie Sentenced to Money Laundering Charges Stemming from a Conspiracy to Smuggle Ivory TusksRead the Press Release
A retired officer of the Royal Canadian Mounted Police was sentenced today by U.S. District Court Judge John A. Woodcock for the District of Maine to 62 months in prison for 10 money laundering offenses, announced the Justice Department. Gregory R. Logan, 59, of St. John, New Brunswick, was extradited to the United States from Canada on March 11, 2016. He was indicted in the District of Maine in November 2012 and charged with conspiracy, smuggling and money laundering, and pled guilty to 10 money laundering offenses on September 28, 2016.
“This defendant illegally imported hundreds of narwhal tusks into the United States, with a value in the millions of dollars. Unlawful wildlife trade like this undermines efforts by federal, state, and foreign governments to protect and restore populations of species like the narwhal, a majestic creature of the sea with long and spiraled protruding ivory tusks,” said Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division. “Our Division successfully worked with the U.S. Fish and Wildlife Service, NOAA Fisheries, and the Canadian Government to successfully conclude this case.”
“This investigation highlights the best of law enforcement working together. Our special agents, with counterparts from the National Oceanic and Atmospheric Administration and Environment and Climate Change Canada, investigated a complex scheme where illegal narwhal tusks were trafficked across the U.S.-Canada border,” said acting Chief of Law Enforcement Ed Grace for the U.S. Fish and Wildlife Service. “Wildlife smuggling is a transnational crime that knows no borders and requires an international response. We will continue to work closely with our international, federal, and state partners to investigate and arrest individuals who smuggle and sell protected wildlife for their own financial gain.”
"Today's sentencing brings to a close a long investigation and prosecutorial process that underscores our global commitment to end wildlife trafficking," said Chris Oliver, Assistant Administrator for NOAA Fisheries. "We are grateful for the international cooperation that has lead to this conclusion."
“This case is the result of a successful joint investigation involving partners across Canada and the United States working to stop the illegal commercialization and exploitation of Canadian wildlife, in this case the smuggling of narwhal tusks,” said Glen Ehler, Regional Director, Wildlife Enforcement Directorate, Enforcement Branch, Environment and Climate Change Canada. “Today’s sentence and the previous conviction in Canada send a strong message that this type of offence will not be tolerated.”
Logan was involved in a scheme to smuggle narwhal tusks from Canada to the United States for sale to American customers and transfer the proceeds of those sales back to Canada. Logan was arrested in Canada, based on a request from the United States, in December 2013. Logan pleaded guilty to a related wildlife smuggling crime in Canada and the terms of his extradition limited the case against him in the United States to the money laundering offenses. Also charged in the original indictment was Andrew J. Zarauskas of Union, New Jersey. Zarauskas was convicted after a jury trial in Bangor and sentenced to 33 months in prison.
Narwhals are medium-sized toothed whales that are native to the Arctic. They are known for their distinctive ivory tusk, which can grow to more than eight feet in length. Given the threats to their population, narwhals are protected domestically by the Marine Mammal Protection Act and internationally by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) – an international treaty to which more than 170 countries, including the United States and Canada, are parties. It is illegal to import narwhals, or their parts, into the United States for commercial purposes. Further, any importation must be accompanied by a permit and must be declared to U.S. Customs and Border Protection and the U.S. Fish and Wildlife Service.
According to the indictment, Logan smuggled more than 250 narwhal tusks into the United States between 2000 and 2010. As part of the plea agreement, Logan agreed that the market value of the narwhal tusks in this case was between $1.5 million and $3 million. Knowing that the tusks were illegal to bring into the United States and sell, Logan transported them across the border in false compartments in his vehicle and trailer. Logan utilized a shipping store in Ellsworth, Maine, to send the tusks to customers throughout the United States, including Zarauskas and others. Logan knew that his customers would re-sell the tusks for a profit and in an attempt to increase that re-sale price, Logan would occasionally provide fraudulent documentation claiming that the tusks had originally belonged to a private collector in Maine who had acquired them legally.
In addition to shipping the tusks from Maine, Logan maintained a post office box the Ellsworth shipping store as well as an account at a bank in Bangor. Logan instructed his customers to send payment in the form of checks to the post office box, or wire money directly to his Maine bank account. Logan then transported the money to Canada by having the shipping store forward his mail to him in Canada, and by using an ATM card to withdraw money from his Maine bank account at Canadian ATM machines. At times, Logan also directed his customers to send funds directly to him in Canada.
The case was investigated by special agents of the National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Fish & Wildlife Service, Office of Law Enforcement; and Wildlife Officers from Environment and Climate Change Canada. The case was prosecuted by Trial Attorneys James B. Nelson and Lauren D. Steele.
Former CEO of Sunnyvale-Based Company Charged with Insider Trading in His Company’s SecuritiesRead the Press Release
SAN JOSE – Peter C. Chang was arrested today following the filing of a federal complaint charging him with securities fraud and fraud in connection with a tender offer, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the complaint unsealed upon his arrest this morning, Chang, 59, of Los Altos, Calif., was the President, Chief Executive Officer (CEO), and Chair of the Board of Directors of Alliance Fiber Optic Products, Inc. (AFOP), a manufacturer of fiber optic components based in Sunnyvale, Calif. and publicly traded on the NASDAQ. According to the complaint, Chang engaged in an insider trading scheme in which he traded AFOP stock based on material nonpublic information he obtained from AFOP through his position at the company. In particular, according to the complaint, Chang acquired confidential information about AFOP’s financial performance and potential strategic transactions before these were publicly announced, including information that AFOP was in negotiations to be acquired by another company.
According to the complaint, corporate policies and agreements limited Chang’s ability to trade AFOP securities and required him to keep certain corporate information confidential. Nevertheless, the complaint alleges, Chang controlled and accessed two brokerage accounts in the names of his wife and his brother, and Chang bought and sold AFOP stock in these nominee accounts. Through this trading, the complaint alleges, Chang avoided losses and made profits using information he gathered in his positions with AFOP.
For example, the complaint alleges Chang learned AFOP’s revenues in the third quarter of 2015 would be lower than expected due to a decline in customer orders. The complaint alleges Chang sold more than 152,000 shares of AFOP stock in the nominee accounts in advance of the earnings announcement on October 28, 2015. In this way, the complaint alleges, Chang avoided more than half a million dollars of losses. Similarly, according to the complaint, Chang avoided another $379,000 in losses by selling 129,000 shares of AFOP stock in February of 2016, prior to the February 19, 2016 announcement of the previous quarter’s earnings.
Finally, the complaint alleges that from March 4, 2016 to March 21, 2016, Chang purchased AFOP stock in the nominee accounts. At the time of these purchases, according to the complaint, Corning was negotiating a tender offer for the shares of AFOP. After the acquisition was publicly announced on April 7, 2016, the complaint alleges that Chang sold the shares held in these nominee accounts for profits of more than $800,000.
In connection with the allegations described in the complaint, Chang is charged with one count of securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. §§ 240.10b-5 and 240.10b5-2, and one count of fraud in connection with a tender offer, in violation of 15 U.S.C. §§ 78n(e) and 78ff and 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d).
A criminal complaint merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Chang faces a maximum statutory penalty for securities fraud and fraud in connection with a tender offer of 20 years in prison and a fine of $5 million, per count. Additional fines, periods of supervised release, and restitution also may be ordered; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendant is scheduled to appear before the Honorable Howard R. Lloyd, U.S. Magistrate Judge, at 1:30 p.m. this afternoon in San Jose for an initial appearance.
In a separate civil action, the United States Securities and Exchange Commission filed civil charges against Chang, alleging he engaged in insider trading and failed to report stock transactions.
Assistant U.S. Attorney Lloyd Farnham is prosecuting the case with the assistance of Patricia Mahoney and Claudia Hyslop. The prosecution is the result of an investigation by the FBI, with the assistance of the San Francisco Regional Office of the Securities and Exchange Commission.
Former BB&T Senior Vice-President and Regional Branch Operations Manager SentencedRead the Press Release
Abingdon, VIRGINIA – A former senior vice-president with BB&T, who stole cash from bank vaults to which she had access through her employment with the bank, was sentenced yesterday on federal embezzlement charges for which she previously pleaded guilty, Acting United States Attorney Rick A. Mountcastle announced.
Melissa D. Huffman, 47, of Roanoke, Va., previously pleaded guilty to one count of embezzlement from a FDIC-insured bank. Yesterday, United States District Court Judge James P. Jones sentenced Huffman to imprisonment for a term of 14 month. As part of her plea agreement, Huffman made full restitution to the bank in the amount of $31,850.
Between 2014 and December 2016, Huffman worked as a senior vice-president and regional branch operations manager for BB&T. As part of her official duties, Huffman had access to the vaults of BB&T’s banks throughout the Western District of Virginia. On several occasions, Huffman stole cash from the vaults she visited and caused the shortages to be attributed to subordinate employees at the banks. The branches from which she stole cash included Boonsboro, Fort Hill, Martinsville, Tanglewood, Tazewell, and Warrenton.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Final Defendant Sentenced in Meth Trafficking ConspiracyRead the Press Release
McALLEN, Texas – A 27-year-old Mexican national who was illegally residing in Houston has been ordered to federal prison following his conviction for possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Oscar Diaz-Pineda pleaded guilty May 3, 2017.
Today, Judge Alvarez ordered Diaz-Pineda to serve a 360-month sentence. His co-defendants - Mexican national Johnathan Ricardo Alvarez, 24, and El Salvadorian national Melvin Noel Vasquez, 33, who resided in Mission and Houston, respectively – were sentenced previously. Ricardo Alvarez received a 200-month sentence, while Vasquez was ordered to serve 147 months imprisonment.
At the previous hearing, the court heard that the methamphetamine was imported from Mexico in a liquid form and converted into crystalized methamphetamine at an apartment in Harris County for further distribution. Diaz-Pineda was determined to be the renter of the apartment under an alias name. In handing down the sentence, Judge Alvarez noted that Diaz maintained a ‘conversion lab’ at an apartment in Houston were liquid methamphetamine imported from Mexico was crystalized for further distribution within the area.
At the time of his plea, Ricardo Alvarez admitted to brokering a drug transaction with an undercover agent via telephone on Dec. 7, 2016. Two days later, Vasquez and Diaz-Pineda met with the undercover agent in Houston to deliver five kilograms of methamphetamine on behalf of Ricardo Alvarez. Agents arrested Vasquez and Diaz-Pineda that same day and seized the narcotics. Ricardo Alvarez was subsequently arrested on April 16, 2017, in South Texas.
All three have been and will remain in custody and are expected to face deportation proceedings following their sentences.
The Drug Enforcement Administration conducted the investigation along with task force officers from the Harris County Sheriff’s Office, police departments in Humble and Missouri City and the Texas Department of Public Safety. Assistant U.S. Attorney Juan F. Alanis is prosecuting the case.
Federal jury finds Charleston man guilty of methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A federal jury sitting in Charleston returned a guilty verdict yesterday in the trial of a Charleston man for possession with intent to distribute 50 grams or more of methamphetamine, announced United States Attorney Carol Casto. Brian D. Terry, 32, was convicted following a one-day jury trial.
Witnesses for the United States testified that on April 20, 2016, Terry was the passenger in a vehicle that was stopped for speeding by officers with the Metropolitan Drug Enforcement Network Team. The traffic stop took place in the St. Albans area, on MacCorkle Avenue close to Oliver Street. During the traffic stop, Terry consented to a search, and officers discovered approximately 195 grams of crystal methamphetamine in his groin area. A chemist with U.S. Customs and Border Protection testified at trial that the methamphetamine found on Terry was approximately 99% pure.
Officers arrested Terry and read him his Miranda rights. Subsequently, during the transport of Terry to South Central Regional Jail, he shared details of his drug trafficking activity with an officer, including the quantity of methamphetamine he sold and the price he charged. Both the traffic stop and the transport to the jail were recorded.
Terry faces at least 10 years and up to life in federal prison when he is sentenced on December 14, 2017.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorneys Joshua Hanks and Clint Carte are in charge of the prosecution and tried the case before a federal jury. United States District Judge Joseph R. Goodwin presided over the trial.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Federal inmate sentenced to prison time for escaping from Atlanta’s prison camp to celebrate his birthdayRead the Press Release
ATLANTA – Federal inmate Fernando A. Settles has been sentenced to an additional one year, three months in prison for escaping from the United States Penitentiary’s minimum-security camp in Atlanta, Georgia.
“Escapes from prison pose significant safety risks to the public,” said U. S. Attorney John A. Horn. “Settles escaped from Atlanta’s prison camp to celebrate his birthday. He decided that instant gratification was more important than serving his time and being released at the end of his sentence. Now he will have an extra year to reflect on that choice.”
According to U.S. Attorney Horn, the charges and other information presented in court: the U.S. Penitentiary in Atlanta, Georgia (“USP Atlanta”) is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also has a detention center for pre-trial inmates and a satellite prison camp for minimum-security male inmates. The FBI and the Atlanta Police Department (“APD”) have been engaged in an investigation to combat instances where USP Atlanta inmates temporarily escape from the prison camp to obtain contraband to smuggle back into the prison or to visit nearby restaurants, hotels, and residences.
In August 2009, Settles was sentenced to 20 years in prison after being convicted of conspiratorial and substantive drug trafficking offenses. From approximately September 2016 to May 2017, Settles was an inmate at the prison camp of USP Atlanta, with a scheduled release date of July 29, 2025.
On May 8, 2017, the FBI and APD conducted surveillance along the fence line of USP Atlanta. At approximately 3:20 that morning, Settles escaped from the prison camp at USP Atlanta. Shortly thereafter, the FBI arrested Settles in a wooded area outside of USP Atlanta’s outer prison fence. At the time of his arrest, Settled had a cellular telephone and two empty duffel bags in his possession.
On May 12, 2017, Fernando A. Settles, 36, of Augusta, Georgia, was charged via criminal information with escaping from federal custody. Settles was sentenced to a one year, three month term of imprisonment (to be served after he completes his current 20-year prison sentence).
The FBI and APD investigated this case.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy Lee prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Indictment Returned in Armed Conway Bank Robbery Resulting in DeathRead the Press Release
Columbia, South Carolina-------United States Attorney Beth Drake stated today a Federal Grand Jury in Columbia, South Carolina, returned a multiple-count indictment in connection with an armed robbery in Conway.
Brandon Michael Council, age 32, of Wilson, North Carolina was charged in a three-count indictment with armed bank robbery resulting in death (a violation of 18 U. S. C. §§ 2113(a) and 2113(d)); use of a firearm in furtherance of a crime of violence resulting in death of a person in such a manner to constitute murder (a violation of 18 U. S. C. §§ 924(c) and 924(j)); and felon in possession of a firearm (a violation of 21 U. S. C. § 922(g)). Council could receive life without the possibility of parole or death on Counts 1 and 2.
The indictment alleges that on August 21, 2017, Defendant Brandon Michael Council planned to enter CresCom Bank to rob the bank and kill its employees. Shortly after entering the bank, Defendant Brandon Michael Council drew a revolver and shot bank teller Donna Major multiple times. Defendant Brandon Michael Council then ran into a nearby office where he shot bank manager Kathryn Skeen as she sheltered under her desk. Defendant Brandon Michael Council then proceeded to take more than $15,000 in cash from the bank before fleeing.
Council will be arraigned on the indictment by a United States Magistrate Judge at the McMillan Federal Courthouse in Florence, South Carolina, in the coming weeks.
The case was investigated by the Federal Bureau of Investigation, Conway Police Department, Horry County Police Department, Myrtle Beach Police Department, Horry County Sheriff’s Office, Wilson North Carolina Police Department, Greenville North Carolina Police Department, the South Carolina Law Enforcement Division, the Bureau of Alcohol, Tobacco, Firearms, Explosives, and the United States Marshal’s Office. Assistant United States Attorneys JD Rowell and Jay N. Richardson of the Columbia office are prosecuting the case.
The United States Attorney stated that all charges in Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury Returns Superseding Indictment in Case Against James Matthew Bradley, Jr. – Government Will Not Seek Death PenaltyRead the Press Release
In San Antonio this afternoon, a federal grand jury returned a superseding indictment adding another defendant and additional charges in the case against 60–year-old James Matthew Bradley, Jr., for an alleged smuggling operation that resulted in the deaths of ten undocumented aliens in July announced United States Attorney Richard L. Durbin, Jr., and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
United States Attorney Durbin also announced a filing this afternoon serving notice to the Court that the Government will not seek the death penalty against Bradley.
The seven-count superseding indictment charges Bradley and 47–year-old Pedro Silva Segura, an undocumented alien residing in Laredo, TX, with one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in death; one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in serious bodily injury and placing lives in jeopardy; and, two counts of transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy. The superseding indictment also charges Bradley alone with the following (3) counts: transportation of undocumented aliens resulting in death; transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy; and, possession of a firearm by a convicted felon.
As for Bradley, he faces up to life imprisonment upon conviction for the conspiracy and transportation-resulting-in-death charges. As for Silva, the maximum penalty upon conviction of the conspiracy and transportation-resulting-in-death charges is life imprisonment, or the death penalty. Upon conviction of the conspiracy and transportation-resulting-in-serious-bodily-injury charges, the defendants face up to 20 years in federal prison. Upon conviction of the felon-in-possession charge, Bradley faces up to ten years in federal prison.
According to court documents, San Antonio Police Department (SAPD) officers responded to a call at the Wal-Mart store located at 8538 Interstate 35 in San Antonio shortly after midnight on Sunday, July 23. An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab. At the scene, law enforcement officers discovered 39 undocumented aliens. According to court records, the undocumented aliens estimated the trailer contained between 70 and 180 to 200 people during transport. They also described differing fees for being transported. Authorities also recovered a .38 caliber pistol from inside the cab of the tractor-trailer. Bradley, who was arrested at the scene, has remained in federal custody.
The superseding indictment alleges that Silva participated in the conspiracy by transporting undocumented aliens and attempting to conceal, harbor and shield them from detection.
Bradley remains in federal custody. Silva, who was arrested in Laredo on an unrelated charge, is in custody and awaiting transfer to San Antonio for his yet-to-be scheduled initial appearance in federal court.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is leading this investigation together with ICE Enforcement and Removal Operations (ERO), the San Antonio Police Department and the San Antonio Fire Department, with assistance from the Bexar County Sheriff’s Office and the U. S. Customs and Border Protection’s Border Patrol. Assistant United States Attorneys Christina Playton and Matthew Lathrop, along with Special Assistant United States Attorney Michael Hoyle from the Bexar County District Attorney’s Office, are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Edwardsville Man Sentenced to 62 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 18, 2017, United States District Court Judge A. Richard Caputo sentenced Willie Garcia, age 48, of Edwardsville, Pennsylvania, to 62 months’ imprisonment for possessing with intent to distribute marijuana, and for possessing a firearm in furtherance of his drug trafficking activities.
According to United States Attorney Bruce D. Brandler, Garcia was arrested with more than 400 grams of marijuana, approximately $22,000 and a loaded firearm (9mm keltc semi-automatic pistol) after a search warrant was executed on or about May 2, 2015, at his home by the Edwardsville Police Department.
Garcia was indicted by a grand jury on May 10, 2016, and pleaded guilty pursuant to a plea agreement. He has been in custody since his arrest.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Edwardsville Police Department. Assistant United States Attorney Evan Gotlob prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Edmond Sports Marketing Agent Pleads Guilty to Tax Fraud Through Non-ProfitRead the Press Release
Oklahoma City, Oklahoma – WILLIAM G. HORN, of Edmond, Oklahoma, pled guilty today to making false statements on federal tax returns for The Tommie Harris Foundation, a non-profit corporation, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to charges filed on September 6, 2017, Horn was a sports marketing agent who operated charitable organizations associated with NFL and NBA athletes. He registered one of these, The Tommie Harris Foundation, with the Oklahoma Secretary of State in late 2006 and used his home as the Foundation’s principal office. Horn sought and received tax-exempt status from the IRS under Section 501(c)(3) of the Internal Revenue Code. He personally solicited donations for the Foundation, which held an annual celebrity golf event to raise money for those in need. He also managed the Foundation’s finances and filed its Forms 990, which are federal tax returns for tax-exempt organizations. According to the charges, Horn signed and filed Forms 990 for the Foundation for tax years 2007 through 2012. During those years, the Foundation is alleged to have reported total donations received of $1,840,495 and total distributions to other organizations of $705,699. The majority of the difference of $1,134,796 was reported as “functional expenses.”
Horn was charged with making false statements on Forms 990 for the 2011 and 2012 tax years. He reported falsely on both returns that he received no compensation from the Foundation. According to the charges, he actually diverted approximately $136,620.06 to personal bank accounts in 2011 and made approximately $39,205.42 in purchases for personal use on a Foundation credit card. In 2012, according to the charges, he diverted approximately $129,451.04 to himself and made approximately $41,126.37 in purchases for personal use on a Foundation credit card. He also allegedly made false statements on these returns about having distributed tens of thousands of dollars to other charities—Straight From the Heart Foundation, Mercy Church West Coast, and Opportunity Knox—when in fact he controlled those charities and spent the money on himself.
At a plea hearing today before United States District Judge David L. Russell, Horn admitted he made false statements on the 2011 and 2012 federal tax returns for The Tommie Harris Foundation, as alleged. In a plea agreement, he has agreed to pay restitution to The Boys & Girls Clubs of America in an amount not to exceed $721,947.81, which accounts for his diversion of funds from the Foundation’s charitable giving.
Horn faces a maximum sentence for the 2011 false statement of five years in prison, three years of supervised release, and a fine of $250,000. For the 2012 false statement, he faces a maximum sentence of three years in prison, one year of supervised release, and a fine of $250,000. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by IRS-Criminal Investigations and the FBI and is being prosecuted by Assistant U.S. Attorney Charles W. Brown.
Dunmore Woman Sentenced for Providing Firearms to FelonRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced Angela Lucke, age 37, of Dunmore, Pennsylvania, to five years’ probation for unlawfully providing firearms to a convicted felon.
According to United States Attorney Bruce D. Brandler, Lucke pleaded guilty on March 8, 2017, to a one count indictment charging her with giving firearms to convicted drug dealer Ariel Varsanyi of New York. Lucke had previously pleaded guilty and was sentenced to one year probation in Lackawanna County Court of Common Pleas for filing a false police report, claiming that the firearms were stolen. Lucke admitted that she purchased the guns for Varsanyi because he was barred as a felon from buying guns himself. As part of her sentence, Lucke must perform 50 hours of community service and refrain from any contact with Varsanyi, who is incarcerated in New York.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dunmore Borough Police Department. The case was prosecuted by Assistant United States Attorney Sean A. Camoni.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Defendants Charged with Intent to Distribute 720 Kilos of Cocaine in First of its Kind Case in Southern OhioRead the Press Release
COLUMBUS, Ohio – Four defendants are being transported to Columbus, Ohio today for federal prosecution in the Southern District of Ohio after being charged with conspiracy to possess with intent to distribute approximately 720 kilograms of cocaine. The more than 1,584 pounds of cocaine has an approximate street value of $25 million in total.
The defendants were apprehended in August near the Galapagos Islands, making this the first case in which the Southern District of Ohio is seeking to prosecute defendants captured in international waters.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Commandant of the U.S. Coast Guard, Adm. Paul Zukunft, made the announcement.
According to the affidavit filed in support of the criminal complaint in this case, Ecuadorian nationals Hernan Emilio Caldas-Estupinan, Oscar Alipio Chila-Mendez, Carlos Alfredo Escobar-Estupinan and Mexican national Jesus Antonio Ramos-Chirino were detected in a dual engine speed boat on August 18 northwest of the Galapagos Islands in the Pacific Ocean.
The United States Coast Guard cutter James was dispatched to interdict the vessel in international waters and conduct a Right of Visit boarding. The watercraft had no flag flown, no registration documents, no registration number, homeport or name on the hull of the vessel, no identification of a sailing master and no claim of nationality for the vessel.
As part of its interdiction efforts, the James launched a helicopter and two patrol craft to approach the boat. When the defendants detected the helicopter and patrol craft, they began to jettison numerous packages from the vessel while attempting to flee from the helicopter.
The Coast Guard helicopter fired warning shots in an attempt to halt the flight, and when those warning shots went unheeded, the helicopter employed disabling fire. Once the vessel had been disabled, one of the patrol craft launched from the James took control of the vessel.
Coast Guard personnel collected the 25 packages that had been thrown from the boat and discovered that they contained approximately 720 kilograms of cocaine.
The cocaine seized in this case will be included in 50,690 pounds of cocaine and heroin worth more than $679 million from narcotics cases in six federal districts nationwide that is being offloaded by the Coast Guard today in San Diego, Calif. United States Attorney General Jeff Sessions will announce the series of drug removals with the Coast Guard at noon today.
U.S. Attorney Glassman commended the investigation of this case by the DEA and United States Coast Guard, as well as Assistant United States Attorneys David DeVillers and Jonathan Grey, who are prosecuting the case.
A criminal complaint merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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De Pere Businessman Indicted for $9 Million Green Energy FraudRead the Press Release
United States Attorney Gregory J. Haanstad, of the Eastern District of Wisconsin announced that the grand jury indicted Ronald Van Den Heuvel (age: 62) of De Pere, on wire fraud and money laundering charges today. The indictment alleges that Van Den Heuvel fraudulently obtained over $9 million in loans and investments for his eco-friendly “Green Box” business plan but diverted much of the funds to his own purposes.
From 2011 through 2015, Ronald Van Den Heuvel was a businessman in the Green Bay area promoting his Green Box process. The indictment alleges that Van Den Heuvel claimed that the Green Box process could turn post-consumer waste from sources like fast food restaurants completely into usable consumer products and energy. Van Den Heuvel obtained over $9 million in loans and investments, having falsely pledged to use the funds for Green Box operations. Van Den Heuvel spent much of the funds to pay old debts and personal expenses, including a new Cadillac Escalade, pricey Green Bay Packers tickets, and court-ordered support payments to his ex-wife.
As alleged in the indictment, Van Den Heuvel defrauded a range of victims, including individual acquaintances, the Wisconsin Economic Development Corporation (WEDC), a Canadian private investment firm, and Chinese investors in the EB-5 immigrant investor program. In October 2011, the WEDC provided Green Box NA Green Bay, LLC, one of Van Den Heuvel’s companies, with a loan of $1,116,000. The funds were to be used solely to purchase certain equipment to allow for the creation of 116 jobs in a Green Box operation in De Pere, Wisconsin. Instead, Van Den Heuvel diverted large amounts of WEDC funding to his own ends and then submitted false certifications claiming to have spent the funds properly. In addition, in January 2012, the WEDC awarded Green Box NA Green Bay, LLC with a $95,500 grant to reimburse the company for the costs of training new workers. To draw the grant funds, Van Den Heuvel submitted fraudulent time records for training that never happened.
Separately, the United States Securities and Exchange Commission (SEC) announced today that it filed a civil lawsuit against Van Den Heuvel and Green Box Detroit, LLC, in the United States District Court for the Eastern District of Wisconsin. The SEC alleges that Van Den Heuvel violated securities laws by defrauding the Canadian investment firm and EB-5 investors. The case is United States Securities and Exchange Commission v. Ronald Van Den Heuvel and Green Box NA Detroit, LLC, Case No. 17-CV-1261.
Counts One to Ten of the indictment charge Van Den Heuvel with executing the scheme to defraud by use of interstate wire communications, in violation of Title 18, United States Code § 1343. On each of these counts, the maximum penalty is imprisonment for not more than twenty years, a fine of not more than $250,000, or both, plus a mandatory $100 special assessment and a period of supervised release not to exceed three years.
Counts Eleven through Fourteen charge Van Den Heuvel with unlawful financial transactions involving the ill-gotten gains, in violation of Title 18, United States Code § 1957. On each of these counts, a convicted defendant would face imprisonment for not more than 5 years, a fine of not more than $250,000, or both, plus the mandatory $100 special assessment and a term of supervised release not to exceed three years.
The criminal case leading to the indictment is being investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation. The case will be prosecuted by Assistant United States Attorneys Mel S. Johnson, Matthew D. Krueger, and Rebecca L. Taibleson.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Cullman Man Sentenced to 90 Years for Producing Child Pornography Involving Multiple VictimsRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Cullman man to 90 years in prison followed by 10 years of supervised release for producing child pornography involving seven minor victims, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town.
U.S. District Judge Virginia Emerson Hopkins sentenced GREGORY JEROME LEE, 54, on four counts of production of child pornography. He pleaded guilty to the charges in January. Lee’s 90-year sentence will run consecutively to a 25-year sentence he received on a separate state prosecution for molesting two other victims.
According to court documents, beginning in September 1996 and continuing for more than a decade until August 2007, Lee and his co-conspirators belonged to a group of sophisticated offenders who gathered in secret password-protected chat rooms to discuss their sexual interest in minors and the real-life sexual abuse of children being perpetrated by several group members. Lee and others also used these chat rooms to advertise, distribute, receive and possess child pornography. Court documents state that from September 1996 through December 2004, Lee sexually abused at least seven different minors and that he frequently produced images and videos depicting his sexual exploitation of these children, which he shared with his co-conspirators.
Assistant U.S. Attorney Daniel Fortune and Trial Attorney Ralph Paradiso of the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Christiansburg Man Convicted of Tax, Bankruptcy Fraud ChargesRead the Press Release
Roanoke, VIRGINIA – A Christiansburg man, who filed multiple false tax returns between 2008 and 2009 in an attempt to receive fraudulent tax refunds from the Internal Revenue Service, was convicted this week on multiple tax fraud and bankruptcy fraud charges, Acting United States Attorney Rick A. Mountcastle announced.
Regan Dwayne Reedy, 55, a.k.a. “Wegani Diwaini Klandag Anisahoni,” was found guilty by a federal jury this week on one count of conspiracy to commit tax fraud, two counts of making a false declaration in a bankruptcy proceeding, two counts of concealment of property in a bankruptcy proceeding and three counts of false testimony in a bankruptcy proceeding.
According to evidence presented at trial by Assistant United States Attorney Joseph W. H. Mott, Reedy filed a number of fraudulent tax returns for individuals, claiming refunds. The returns were part of a “1099-OID scheme”, in which the returns claimed excessive federal withholding that resulted in excessive claims for refunds. Most of the fraudulent returns were detected before refunds were issued, however, one refund in the amount of $156,191 was issued.
Twice in 2012 and again in 2014, Reedy and his wife filed Chapter 7 bankruptcy. In those filings, Reedy omitted assets from their bankruptcy schedules and concealed assets from the bankruptcy trustee. At a creditors’ meeting, he falsely testified as to his sources of support and assets.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigations, the Federal Bureau of Investigation, and the U. S. Trustees’ Office. Assistant United States Attorney Joseph W. H. Mott prosecuted the case for the United States.
Chapin Woman Pleads Guilty to Bank FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Yvonne Sanchez, age 40, of Chapin, pled guilty in federal court in Columbia to Bank Fraud, a violation of Title 18, United States Code, § 1344. Senior United States District Judge Cameron McGowan Currie, of Columbia, accepted the guilty plea and will sentence her on January 24, 2018.
From July 2014 through June 2016, Sanchez was the bookkeeper for EveryWord, Inc., a court reporting business in the Columbia area. Sanchez opened fake accounts in the name of EveryWord at All South Federal Credit Union. As part of her duties, Sanchez was supposed to be depositing checks made payable to EveryWord into the legitimate business account at First Community. Instead, she diverted the checks into her own accounts for her personal use. Overall, Sanchez defrauded EveryWord of $121,461.76.
Ms. Drake stated the maximum statutory penalty faced by Sanchez is imprisonment for thirty years and a fine of $1,000,000.
The United States Department of Homeland Security investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Brinnon Resident Sentenced to Prison for Trafficking Protected Narwhal TusksRead the Press Release
A 64-year-old resident of Brinnon, Jefferson County, Washington was sentenced last week in U.S. District Court in Tacoma to six months in prison, one year of supervised release and a $25,000 fine for trafficking ivory from protected species, announced U.S. Attorney Annette L. Hayes. DAVID L. BOONE, who operates Boone Trading Company, participated in an operation that illegally smuggled narwhal tusks taken from the threatened Arctic whales into the United States from Canada. BOONE also trafficked in sperm whale teeth and walrus tusks. The purchase and sale of these items is prohibited under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international treaty that regulates trade in species whose survival is threatened by trade, and the Marine Mammal Protection Act. U.S. District Judge Ronald B. Leighton imposed the sentence.
“We have an obligation to the international community to prosecute those who seek to profit from illegal trafficking in protected species such as the magnificent narwhal,” said U.S. Attorney Annette L. Hayes. “I join those who had a part in this investigation in reminding anyone who chooses to put selfish profit above protection of the earth’s threatened species – we will devote the resources necessary to finding and holding accountable anyone responsible for this kind of despicable crime.”
“We commend the Department of Justice and all other agencies that played a role in aiding this investigation and prosecution,” said Edward Grace, Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service. “The illegal wildlife trade is a $20 billion industry that is rapidly driving elephants and many other animals to extinction. The Service will continue to use every tool at its disposal to fight the trafficking scourge and bring to justice the individuals who are depriving our planet of these magnificent creatures for their own profit.”
According to records filed in the case, between 2006 and 2008, BOONE purchased narwhal tusks from a Canadian and a resident of Tennessee. Narwhals are Arctic whales often called the ‘Unicorn of the Sea’ because of their prominent tusk. While native Inuit of northern Canada are allowed to hunt narwhal, it is illegal to import tusks into the United States. BOONE purchased tusks knowing they had been smuggled across the border from Canada. He then sold the tusks on the black market at a huge profit.
Additionally, in October 2011 BOONE sold sperm whale teeth to an undercover law enforcement officer, and in February 2012 bought and sold a walrus skull and tusks. The transactions were illegal under the Marine Mammal Protection Act.
The Canadian exporter of the narwhal tusks plead guilty to multiple counts of money laundering and was sentenced today in U.S. District Court for the District of Maine to more than 5 years in prison. In addition to BOONE, three other United States citizens were prosecuted and convicted for their participation in the narwhal tusk smuggling scheme - one in the District of Maine, and one each in the Districts of Massachusetts and Alaska.
The court directed that the $25,000 criminal fine be paid to the Lacey Act Reward Fund. Monies deposited into this Fund are used to reward persons who furnish information leading to successful enforcement actions against those who traffic in illegally taken fish and wildlife.
The case was investigated by the U.S. Fish and Wildlife Service’s Office of Law Enforcement. The case was prosecuted by Assistant United States Attorney James Oesterle.
Bridgeport Man Charged with Distributing Heroin to Seymour Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that RICHARD ESTABA, also known as “Raw,” 23, of Bridgeport, was arrested today on a federal criminal complaint charging him with heroin distribution offenses. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As alleged in court documents and statements made in court, on July 9, 2017, Seymour Police and emergency medical personnel responded to a residence in Seymour on a report of a suspected drug overdose. In the bathroom of the residence, responders encountered a 29-year-old male who was not breathing and did not have a pulse. The male was pronounced deceased. Investigators seized the victim’s cellphone, multiple folds of suspected heroin marked with two different brand stamps, and other drugs. Subsequent cell phone analysis and witness interviews determined that ESTABA supplied the heroin consumed by the victim shortly before he was found dead.
It is further alleged that, in August 2017, investigators conducted a controlled purchase of 10 wax folds of heroin from ESTABA. The folds were marked with a brand stamps that was found on some of the wax folds at the victim’s residence.
The Connecticut Office of the Chief Medical Examiner has determined that the victim’s death was caused by acute intoxication due to the combined effects of cocaine, etizolam, fentanyl, flubromazolam and heroin.
When he was arrested this morning, it is alleged that ESTABA possessed approximately 400 folds of heroin and $1,300 in cash.
ESTABA appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $100,000 bond.
The complaint charges ESTABA with possession with intent to distribute, and distribution of, heroin, and conspiracy to distribute heroin. Both offenses carry a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Seymour and Shelton Police Departments. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Berkeley County man sentenced for oxycodone distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Ernest Marshall, 34, of Charles Town, West Virginia, was sentenced in federal court today to eight months incarceration for distributing oxycodone, Acting United States Attorney Betsy Steinfeld Jividen announced.
Marshall admitted to distributing oxycodone in Jefferson County, West Virginia in June 2016. He pled guilty to one count of “Possession with Intent to Distribute Oxycodone” in November 2016.
Assistant U.S. Attorney Paul T. Camilletti and Assistant U.S. Attorney Lara Omps-Botteicher, prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Attorney General Sessions to Travel to Boston, Massachusetts to Give Remarks to Federal Law EnforcementRead the Press Release
WASHINGTON – Attorney General Sessions will travel to Boston, Massachusetts, on THURSDAY, SEPTEMBER 21, 2017 to give remarks to federal law enforcement about transnational criminal organizations.
WHO:
Attorney General Jeff Sessions
WHAT:
Attorney General Sessions will give remarks to federal law enforcement about transnational criminal organizations.
WHEN:
Thursday, September 21, 2017
3:00 p.m. EDT
WHERE:
U.S. Attorney’s Office
1 Courthouse Way, Suite 9200
Boston, MA 02210
OPEN PRESS
(Preset at 2:00 p.m. // Final Access 2:15 p.m.)
NOTE: All media must RSVP and present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. The RSVP and any inquiries regarding logistics should be directed to Devin O’Malley in the Office of Public Affairs at (202) 514-2007 or [email protected]. Please include the email address of the person(s) attending the event, so that we may reach them directly if details change.Atlanta Concert Promoter Sentenced to 10 ½ Years in Prison for MDMA ConspiracyRead the Press Release
BIRMINGHAM – A federal judge today sentenced an Atlanta man and co-owner of a promotions company to 10½ years in prison for a conspiracy to distribute thousands of MDMA pills, a drug commonly known as “ecstasy” or “molly,” through musical “raves,” concerts and music festivals he presented across the Southeast.
U.S. Attorney Jay E. Town, Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr., U.S. Postal Inspection Service Inspector in Charge Adrian Gonzales, Alabama Law Enforcement Agency Secretary of Law Enforcement Hal Taylor, Alabama Attorney General Steve Marshall, and Helena Police Chief Pete Folmar announced the plea.
U.S. District Court Judge Madeline Haikala sentenced WOODIE LOUIS OCHLE, 40, on one count of conspiracy to distribute 3,4 Methylenedioxymethamphetamine, or MDMA, in Jefferson and Shelby counties between February 2015 and April 2016, and on one count of possessing with intent to distribute the drug on April 13, 2016, in Jefferson County. Ochle pled guilty to the charges in April this year. He is in custody.
“Woodie Ochle unlawfully enriched himself through an illicit drug network he devised at the expense of young people,” Town said. “Ochle is among our worst offenders because his exploitation of a combination of youth and willfulness, underscored by his criminal greed, created both addicts and victims. We have bed space reserved in our Bureau of Prisons for Mr. Ochle and those like him.”
“The Postal Service is in the business of delivering the mail and has no interest in being involved in the distribution of illegal drugs,” Gonzales said. “Postal Inspectors work tirelessly to rid the mail of illicit drugs, preserve the integrity of the mail and, most importantly, provide a safe environment for postal employees and Postal Service customers – the American public. I commend the hard work and countless hours put forth by all of the law enforcement agencies involved in this investigation."
"HSI will continue to work with our state and federal partners to ensure illicit drugs are taken off our streets," Parmer said. "This sentencing should serve as a warning to other criminals that we will work tirelessly to investigate, arrest and prosecute you."
Ochle led an organization that distributed MDMA across the Southeastern United States, including Alabama and Georgia, according to court testimony. Through his Atlanta business, Freakstep Promotions, Ochle set up concerts or dance events and then distributed MDMA to people who attended the “raves.”
In 2016, Homeland Security Investigations and the U.S. Postal Inspection Service began investigating the large-scale smuggling and distribution of various controlled substances, including molly and ecstasy, from Europe into the U.S. through the U.S. Mail, according to evidence at Ochle’s and a co-defendant’s sentencing hearing.
U.S. Customs and Border Protection seized two inbound packages at John F. Kennedy International Airport in New York on April 7, 2016, that were destined for Bessemer and Chelsea, according to court testimony.
Each package contained 1,000 “Red Supreme” ecstasy pills, one addressed to Kenneth Howard in Chelsea and one to Jennifer Petitjean in Bessemer. HSI agents contacted ALEA and U.S. Postal inspectors and arranged controlled deliveries of the packages, according to testimony. Those deliveries led to subsequent controlled deliveries of the drugs to Howard’s cousin, Kevin Pederson, and to Ochle, who was identified as the leader of the drug-trafficking organization, according to testimony.
Investigators made a later controlled delivery to Shawn Perkins in Birmingham, for whom Petitjean said she was receiving package deliveries.
The confiscated drugs, which included the packaged pills, plus more ecstasy pills, xanax pills, the drug “molly,” LSD, cocaine and marijuana seized from Pederson’s vehicle, his Birmingham apartment, and from the U.S. Mail, were destined for Spring Weekend in Panama City Beach, Fla., for distribution, according to testimony. Spring Weekend is a beach music festival that caters to a college crowd. During the course of the investigation, law enforcement seized approximately 30 pounds of illegal drugs, including about 20,000 pressed ecstasy pills, and four pounds of crystal “molly”.
Pedersen, 28, Perkins, 22, Petitjean, 31, and Howard, 38, all have pled guilty to the conspiracy to distribute MDMA. All await sentencing, except for Howard who received eight weekends in custody.
U.S. Immigration and Customs Enforcement-HSI, U.S. Postal Inspection Service, ALEA, Alabama Attorney General’s Office and Helena Police investigated the case, which Assistant U.S. Attorney Brad Felton prosecuted.
Arizona Man Sentenced on Drug and Money Laundering ChargesRead 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 Jordan Ali, 37, of Arizona, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and 100 kilograms or more of marijuana, as well as a separate charge of money laundering conspiracy, was sentenced to 108 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between 2004 and February 1, 2012, the defendant conspired with others to distribute large quantities of cocaine and marijuana in the Buffalo area. In April 2009, Ali and co-defendant Shane Grafman began assisting one another in their drug distribution businesses. Together they obtained the narcotics in the State of Arizona and then utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates and United States Postal Service parcels. Grafman also utilized private jets to travel from Arizona to Buffalo to pick up his drug proceeds.
During the investigation, law enforcement officers seized approximately $1,000,000 in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Grafman.
The defendant distributed between five and 10 kilograms of cocaine and more than 100 kilograms of marijuana during the course of his crimes.
A total of six defendants have been charged and convicted in this case.
The sentencing is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; Federal Bureau of Investigation; under the direction of Special Agent-in-Charge Adam S. Cohen; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.
Alabama Man Sentenced to 90 Years for Producing Child Pornography Involving Multiple VictimsRead the Press Release
An Alabama man was sentenced today to 90 years in prison and 10 years of supervised release for production of child pornography involving seven minor victims, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town of the Northern District of Alabama.
Gregory Jerome Lee, 54, formerly of Cullman County, Alabama, pleaded guilty in January 2017 to four counts of production of child pornography. U.S. District Judge Virginia Emerson Hopkins presided over the sentencing in Birmingham, Alabama.
According to court documents, beginning in September 1996 and continuing for over a decade, until August of 2007, Lee and his co-conspirators belonged to a group of sophisticated offenders who gathered in secret, password-protected, chat rooms to discuss their sexual interest in minors and the real-life sexual abuse of children being perpetrated by several group members. Lee and others also used these chat rooms to advertise, distribute, receive, and possess child pornography. Court documents state that from September of 1996 through December of 2004, Lee sexually abused at least seven different minors and that he frequently produced images and videos depicting his sexual exploitation of these children which he shared with his co-conspirators.
Trial Attorney Ralph Paradiso of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division and Assistant U.S. Attorney Daniel Fortune of the Northern District of Alabama prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Tuesday 19 September 2017
“Protecting Our Tribal Communities: Responding to Drugs, Violent Crime, and Public Corruption” Meeting to be held in Porcupine on September 28Read the Press Release
United States Attorney Randolph J. Seiler announced that a half-day meeting addressing drugs, violent crime, and public corruption in Indian country will be held in Porcupine, South Dakota, on Thursday September 28, 2017. The event is hosted by the U.S. Attorney’s Office, Oglala Sioux Tribe, Bureau of Indian Affairs, and the Federal Bureau of Investigation.
The event will feature presentations by the U.S. Attorney’s Office and the Department of Interior on addressing public corruption in Indian country, FBI and BIA officials speaking about methamphetamine and the pervasiveness of the problem, and a segment on re-entry programs and services.
The event will be held at the Elderly Building in Porcupine, located at 123 Porcupine. The conference will run from 3:30 pm – 5:30 pm. The public is welcome and a free evening meal will be served.
Please see the attached flyer for a complete list of speakers and topics.
Winnebago Man Sentenced to 30 Months for Failing to Register as a Sex OffenderRead the Press Release
Acting U.S. Attorney Robert C. Stuart announced Tuesday that Duane L. Levering, 32, of Winnebago was sentenced in federal court in Omaha, Nebraska, for failing to register as a sex offender. The Honorable John M. Gerrard, United States District Court Judge, sentenced Levering to 30 months’ imprisonment. After his release from prison, Levering will serve a five-year term of supervised release.
Levering was convicted in the United States District Court for the District of Nebraska in 2005 for the aggravated sexual abuse of a minor. He served an 87-month sentence. In 2013, he was convicted for failing to register as a sex offender and served an 18-month term of imprisonment.
In January, 2017, Levering registered as a sex offender in Sioux City, Iowa. The address he registered was non-existent. He was found to be living in Winnebago, Nebraska, and was not registered with the Winnebago Tribe or the State of Nebraska as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by U.S. Marshals Service.
Weapons Smuggler Sent to PrisonRead the Press Release
McALLEN, Texas – A 52-year-old Mexican citizen has been ordered to federal prison for attempting to smuggle firearm parts kits, components, receivers and magazines to Mexico, announced Acting U.S. Attorney Abe Martinez. Alejandro Cavazos, 52, pleaded guilty Feb. 3, 2017.
Today, U.S. District Judge Randy Crane sentenced Cavazos to 48 months in federal prison. Not a U.S. citizen, Cavazos is expected to face deportation proceedings following his release from prison. At the hearing, the court heard that Cavazos had taken possession of approximately 248 parcels of firearm parts from different Internet-based vendors since June 2014.
The investigation began in May 2016 when authorities identified Cavazos as having purchased more than $100,000 worth of firearms parts and accessories from Internet-based dealers. The purchases included AR-15 parts kits and unfinished AR-15 lower receivers.
The investigation revealed Cavazos would coordinate the delivery of the firearm parts to a local reshipment company where Cavazos would then retrieve the merchandise and smuggle it into Mexico. In October 2016, federal agents observed Cavazos retrieve 13 parcels from a local reshipment company and place the items in his vehicle. The parcels, destined for Mexico, were subsequently seized and found to contain 100 AR-type charging handles, 30 AR-15 lower receivers, 25 AR-15 7.62 x 39 mm magazines, 18 AR-15 assembly kits and 200 detachable AR-15 carry handles.
Cavazos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives and conducted the investigation. Assistant U.S. Attorney Rolando Cantu prosecuted the case.
United States Files Denaturalization Complaints in Florida, Connecticut and New Jersey Against Three Individuals Who Fraudulently Naturalized After Having Been Ordered Deported Under Different IdentitiesRead the Press Release
The United States today filed civil denaturalization complaints in federal court in the Middle District of Florida, District of Connecticut and District of New Jersey, against three individuals who allegedly obtained their naturalized U.S. citizenship by fraud, the U.S. Department of Justice and U.S. Citizenship and Immigration Services (USCIS) announced. Two Pakistan-born and one India-born individuals’ alleged frauds involved concealing their prior orders of exclusion and deportation under different identities than the identity under which they naturalized.
“The Justice Department is committed to preserving the integrity of our nation’s immigration system, and in particular, the asylum and naturalization processes,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The civil complaints charge that defendants in these cases exploited our immigration system and unlawfully secured the ultimate immigration benefit of naturalization. The filing of these cases sends a clear message to immigration fraudsters – if you break our immigration laws, we will prosecute you and denaturalize you.”
The three cases, United States of America v. Parvez Manzoor Khan (M.D. Fla.); United States of America v. Rashid Mahmood (D. Conn.); and United States of America v. Baljinder Singh (D.N.J.) were referred to the Department of Justice by USCIS and identified as part of Operation Janus. A Department of Homeland Security initiative, Operation Janus identified about 315,000 cases where some fingerprint data was missing from the centralized digital fingerprint repository. Among those cases, some may have sought to circumvent criminal record and other background checks in the naturalization process. These cases are the result of an ongoing collaboration between the two departments to investigate and seek denaturalization proceedings against those who obtained citizenship unlawfully.
“Naturalization is one of the most sacred honors bestowed by our nation,” said Acting USCIS Director James W. McCament. “USCIS takes great care and responsibility in determining to refer a case for denaturalization proceedings. We do so to send the strong message that individuals who seek to defraud the United States by obtaining naturalization unlawfully will be targeted to have their U.S. citizenship stripped. I am grateful for the USCIS team who devoted countless hours to the painstaking work of uncovering fraud in each of these cases.”
A description of the three cases and the allegations of the United States are:
Parvez Manzoor Khan
Parvez Manzoor Khan aka Mohammad Akhtar and Jaweed Khan, 60, a native of Pakistan, arrived at Los Angeles International Airport on Dec. 7, 1991, bearing a Pakistani passport in the name of Mohammad Akhtar. Immigration officials determined that the photo in the passport had been altered. Khan then applied for asylum, claiming his true name was Jaweed Khan. Khan failed to appear in immigration court and was ordered excluded and deported on Feb. 26, 1992. He subsequently failed to surrender for deportation. After having married a U.S. citizen, Khan, using the alias Parvez Manzoor Khan, was granted permanent resident status in 2001. He naturalized on July 3, 2006. Khan has been residing in Branford, Florida.
This case was investigated by USCIS and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case is being prosecuted by Counsel for National Security Aaron Petty of OIL-DCS’s National Security and Affirmative Litigation Unit (NS/A Unit), with support from USCIS Office of the Chief Counsel, Southeast Law Division.
Rashid Mahmood
Rashid Mahmood aka Rashid Mehmood, 44, a native of Pakistan, arrived at John F. Kennedy International Airport in New York on July 9, 1992, and presented a fraudulent U.S. temporary resident card. He claimed his name was Rashid Mehmood. He was placed in exclusion proceedings, but failed to appear for his immigration court hearing and was ordered excluded and deported on Oct. 13, 1992. Three years later, on Oct. 10, 1995, he filed for adjustment of status under the surname Mahmood based on his marriage to a U.S. citizen, who filed a visa petition on his behalf. He naturalized under the name Rashid Mahmood on June 3, 2005. He also lied on his naturalization form failing to disclose that he claimed he was a member of the Pakistan People’s Party when he applied for entry into the United States in 1992. Mahmood has been residing in New Britain/Hartford, Connecticut.
This case was investigated by USCIS and OIL-DCS. The case is being prosecuted by Counsel for National Security Joseph F. Carilli, Jr. of NS/A Unit and Assistant U.S. Attorney Carolyn Ikari for the District of Connecticut, with support from Associate Counsel Cortney V. Price of USCIS Office of the Chief Counsel, Central Law Division.
Baljinder Singh
Baljinder Singh aka Davinder Singh, 43, a native of India, arrived at San Francisco International Airport on Sept. 25, 1991, without any travel documents or proof of identity. He claimed his name was Davinder Singh. He was placed in exclusion proceedings, but failed to appear for his immigration court hearing and was ordered excluded and deported on Jan. 7, 1992. Four weeks later, on Feb. 6, 1992, he filed an asylum application under the name Baljinder Singh. He claimed to be an Indian who entered the United States without inspection. Singh abandoned that application after he married a U.S. citizen, who filed a visa petition on his behalf. Singh naturalized under the name Baljinder Singh on July 28, 2006. Singh has been residing in Carteret, New Jersey.
This case was investigated by USCIS and OIL-DCS. The case is being prosecuted by Counsel for National Security Aaron Petty of NS/A Unit, with support from Deputy Chief Patrice Rodman of USCIS Office of the Chief Counsel, Northeast Law Division.
The civil complaints contain charges against defendants that include illegal procurement of naturalization by not being lawfully admitted for permanent residence (fraud or willful misrepresentation), illegal procurement of naturalization due to lack of good moral character (false testimony) and procurement of U.S. citizenship (concealment of a material fact or willful misrepresentation; false testimony).
The claims made in the complaints are allegations only, and there have been no determinations of liability.
Two Federal Inmates Charged with Assault on Another InmateRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two inmates at the United States Penitentiary, Canaan, Waymart, Pennsylvania, were indicted by a federal grand jury for assaulting another inmate with a homemade weapon.
According to United States Attorney Bruce D. Brandler, the indictment charges Michael Caraballo, age 34, and Victor Lopez, age 28, with assault with a dangerous weapon and aiding and abetting. The charges stem from an incident in February 2017, in which Caraballo and Lopez allegedly assaulted another inmate with a sharpened piece of metal commonly known as a “shank.” The indictment also charges Caraballo with possessing contraband in prison.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Twenty-One Defendants Charged in Federal Court with Conspiracy to Deliver Cocaine, Heroin and MethamphetamineRead the Press Release
United States Attorney Gregory Haanstad announced today that twenty-one (21) defendants have been charged in federal court with conspiracy related to the distribution of cocaine, heroin and methamphetamine. The nineteen (19) individuals below have been arrested and are in custody:
Luis F. Gomez, age 39
Pablo Hidalgo-Sanchez, age 28
Fernando Reyes, age 39
Mario Esquivel-Sotelo, age 24
Oscar Garnica-Manriquez, age 32
Juan Avina, age 32
Jonathan Martinez-Acosta, age 36
Helder Rodriguez, age 39
Sergio Camacho-Gonzalez, age 20
Ricardo Cervantes-Vargas, age 34
Carlos Flores-Gomez, age 24
Ricardo Rodriguez, age 32
Kristian Yanez, age 24
Luis Torres, age 24
Bryan Banks, age 41
Dante Williams, age 44
Tommie Cole, age 36
Alejandro Casteneda, age 28
Maria Gomez-Gonzalez, age 31
All of the defendants currently reside in the greater Milwaukee area. This case is a part of a long-term federal drug and money laundering investigation based out of Milwaukee. The federal investigation has led to the seizure of multiple kilograms of cocaine and methamphetamine and the seizure of over $800,000 in United States currency.
The defendants are charged with drug offenses including: distribution of and possession with intent to distribute controlled substances and conspiracy. If proven that the offenses involved more than a kilogram of heroin, and / or five kilograms or more of cocaine each defendant will face up to life in prison, with a mandatory minimum sentence of ten years in prison.
Today, law enforcement officers arrested nineteen (19) of these defendants. In addition to today’s arrests, law enforcement officers executed 13 federal search warrants in Milwaukee targeting members of this organization. Approximately 200 federal, state and local officers participated in these arrests and searches. Law enforcement recovered approximately 1½ kilos of heroin, two (2) kilos of cocaine, 50 pounds of marijuana, 12 firearms and one assault rifle, $500,000 in United States currency, six vehicles, a money counter, kilo press and drug paraphernalia.
In making today’s announcement about the federal charges, searches, and arrests, United States Attorney Haanstad stated: “The large-scale distribution of cocaine, heroin, methamphetamine, and other controlled substances presents a clear, significant danger to public safety and public health. The pernicious effects of large-scale organizations like this one are not only felt locally, but also extend beyond state and international borders. These charges and this prosecution are the result of an aggressive, coordinated approach to dismantling drug-trafficking organizations, and the United States Attorney’s Office is committed to continuing to work with our law enforcement partners to attack these public safety and public health threats.” United States Attorney Haanstad specifically commended the local, state, and federal law enforcement officers and units involved in the investigation for their hard work and inter-agency cooperation.
“When we look for the source of the misery and loss of life caused by heroin, fentanyl and other drugs, we need look no further than these and other drug traffickers who profit by exploiting the vulnerable. The dismantlement of multiple large-scale drug trafficking organizations, in partnership with state and local law enforcement and the U.S. Attorney’s Office, has big impact and makes the Greater Milwaukee Area safer and healthier,” remarked Robert Bell, Agent in Charge of Drug Enforcement Administration operations in Wisconsin.
The investigating agencies include the Drug Enforcement Administration, Milwaukee Police Department, Wisconsin Department of Justice - Division of Criminal Investigation, North Central High Intensity Drug Trafficking Area, Department of Homeland Security - Homeland Security Investigation / Enforcement Removal Operations, Bureau of Alcohol, Tobacco, and Firearms, Federal Bureau of Investigation, United States Marshals Service, , Wisconsin State Patrol, Waukesha County Sheriff’s Department, Waukesha County Metro Drug Enforcement Unit, Wauwatosa Police Department, Greenfield Police Department, West Allis Police Department, South Milwaukee Police Department and the Oak Creek Police Department.
This case is being prosecuted by Assistant United States Attorney Mario Gonzales.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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Three Head to Federal Prison for Trafficking Drugs Through International Bridge and CheckpointRead the Press Release
LAREDO, Texas – Two men and one woman have been ordered to prison in separate, but similar crimes involving the smuggling of drugs, announced Acting U.S. Attorney Abe Martinez.
Isabel Gonzalez, 41, and Pedro Salas III, 33, each pleaded guilty in June 2017 to conspiracies to import liquid methamphetamine and marijuana, respectfully, while Miguel Angel Bautista-Anguiano, 25, entered his plea in May 2017 to conspiracy to import and importation of cocaine.
Today, U.S. District Judge Diana Saldana sentenced Gonzales to 46 months in federal prison. Judge Saldana also sentenced Salas today, to a 24-month-term of imprisonment. Bautista-Anguiano was sentenced in U.S. District Judge Marina Garcia Marmolejo’s court and received a sentence of 60 months. Salas and Gonzalez were further ordered to serve three years of supervised release. Not a U.S. citizen, Bautista-Anguiano is expected to face deportation proceedings following his release.
In her case, Gonzalez, of Houston, took part in a conspiracy to smuggle 32 kilograms of liquid methamphetamine through the Gateway to the Americas Port of Entry International Bridge II in Laredo. She was driving a 1999 Ford Explorer with the drugs hidden in a compartment inside the gas tank.
In a separate case that occurred at the same bridge, Miguel Angel Bautista-Anguiano, of Nuevo Laredo, Tamaulipas, Mexico, was driving a 1999 Mercury Cougar on Jan. 20, 2017, when he participated in a conspiracy to smuggle 11 kilograms of cocaine. The cocaine was found in the rear quarter panels of the vehicle.
The third case was initiated on March 10, 2017, when Salas, of Laredo, smuggled 103.6 kilograms of marijuana through the IH-35 checkpoint near Laredo. He was driving a 2010 Ford F-150. Authorities soon found the marijuana inside a tool box in the bed of the truck.
All three defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security investigations and Customs and Border Protection conducted both investigations at the International Bridge, while the Drug Enforcement Administration and Border Patrol worked the case at the checkpoint. Assistant U.S. Attorney José Angel Flores Jr. prosecuted all three cases.
Syracuse Woman Charged with Wire Fraud and Theft of Government FundsRead the Press Release
SYRACUSE, NEW YORK – Linda Sue Parnell, age 62, of Syracuse, New York, was arraigned yesterday on an indictment charging her with four counts of wire fraud and one count of theft of government money, announced Acting United States Attorney Grant C. Jaquith.
The indictment alleges that Parnell, who was formerly employed as a nurse by the Veterans Administration, submitted false claims for reimbursement from the U.S. Department of Labor, Office of Workers’ Compensation Programs for more than five years. According to the indictment, Parnell fraudulently submitted claims that she traveled to the YMCA of Greater Syracuse for physical rehabilitation, when, in fact, she did not, which caused her to receive more than $72,000 to which she was not entitled. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Parnell faces up to 20 years in prison on each count of wire fraud, and up to 10 years in prison on the count of theft of government money. She also could be subject to a fine of up to $250,000 and a term of supervised release of up to 3 years on each of the five criminal charges. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Parnell was arraigned yesterday in Syracuse, New York, before United States Magistrate Judge Thérèse Wiley Dancks, and released pending a trial before United States District Court Judge David N. Hurd.
This case is being investigated by the Department of Veterans Affairs Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
Statement on Today's State Arrest of Kenneth GleasonRead the Press Release
BATON ROUGE, LA - Acting U.S. Attorney Corey Amundson made the following statement concerning today's arrest of Kenneth Gleason on two charges of first-degree murder by the Baton Rouge Police Department: "My office, together with the ATF and the FBI, will continue to support the outstanding state and local law enforcement efforts in this important matter. My thoughts and prayers are with the families and friends of the victims."
NOTE: The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Statement by Attorney General Sessions on the Confirmation of Solicitor General Noel FranciscoRead the Press Release
Attorney General Jeff Sessions issued the following statement on the Senate’s confirmation of Noel Francisco to be United States Solicitor General:
“I applaud the Senate for finally confirming Noel Francisco to be the United States Solicitor General.
“Noel is a brilliant and principled lawyer with an excellent record of appellate work. His reputation for skillful analysis and clear, forceful advocacy is indisputable, and he has been a consistent advocate for the rule of law and a steadfast defender of the Constitution.
“I am confident that Noel will continue to be a tireless champion for justice and look forward to him being a central figure in our commitment to the classical understanding of law and jurisprudence.”
Southern District of Florida, Along with Three Other U.S. Attorney Offices in Districts Affected by Hurricane Irma, Establishes Task Force to Combat Disaster Fraud and Urge the Public to Be Vigilant in Reporting Suspected FraudRead the Press Release
Miami, FL - The National Center for Disaster Fraud (NCDF) and the U.S. Attorney's Office for the Southern District of Florida, along with U.S. Attorney Offices in the District of Puerto Rico, Middle District of Florida, and Northern District of Florida announced the formation of task forces comprised of local, state and federal agencies in our respective areas to combat Hurricane Irma related illegal activity. The NCDF and U.S. Attorneys in these districts urge residents and businesses to immediately report suspected fraudulent activity relating to recovery and cleanup operations, fake charities claiming to be providing relief for victims, individuals submitting false claims for disaster relief and any other disaster fraud related activity.
The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. In the wake of Hurricanes Harvey and Irma, the NCDF has already received more than 400 complaints. Examples of illegal activity being reported to the NCDF and law enforcement include:
Impersonation of federal law enforcement officials;
Identity theft;
Fraudulent submission of claims to insurance companies and the federal government;
Fraudulent activity related to solicitations for donations and charitable giving;
Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
Price gouging;
Theft, looting, and other violent crime
“Unfortunately, criminals can exploit disasters, such as Hurricanes Harvey and Irma, for their own gain by sending fraudulent communications through email or social media and by creating phony websites designed to solicit contributions,” said Acting Executive Director Corey R. Amundson of the National Center for Disaster Fraud. “Once the NCDF receives a complaint, it routes the complaints to the appropriate federal, state, or local law enforcement agency in the appropriate jurisdiction. In the process, we are able to de-conflict and identify trends, national schemes, and offenders operating in multi-jurisdictions. The Justice Department will aggressively pursue those who commit disaster fraud.”
“As our South Florida community recovers from Hurricane Irma, the U.S. Attorney’s Office for the Southern District of Florida and our law enforcement partners stand ready to investigate and prosecute in federal court anyone who seeks to re-victimize, defraud or exploit the individuals and businesses in need,” said Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. “Our united enforcement front will work hard to combat criminal activity, including fraud schemes associated with the hurricane’s devastation. Our mission is to ensure that federal, state and local programs, as well as reputable public and charitable assistance initiatives reach those struck by the impact of our recent natural disaster and are not fraudulently diverted to the criminals’ pockets.”
“We will aggressively investigate and prosecute anyone who seeks to defraud or exploit the federal assistance programs established to help individuals, families, or businesses that have lost so much as a result of Hurricane Irma,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “Our Office will continue to protect the rights of our honest citizens affected by this disaster and ensure that they receive the necessary public and charitable assistance they deserve. If you suspect any fraud, we urge you to call the NCDF Hotline. Our efforts to combat fraud associated with Hurricane Irma will supplement the outstanding and ongoing efforts by the State of Florida and Florida Attorney General Pam Bondi.”
“Our efforts are directed at enforcing a zero tolerance policy,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “In the midst of the distress and losses caused by Hurricane Irma and the attending need for recovery and rebuilding, there can be no place for fraud and abuse.”
“We do not tolerate fraud,” said U.S. Attorney Christopher P. Canova for the Northern District of Florida. “Individuals, families, and businesses have suffered, and will continue to suffer, tremendous losses. Emergency funds are needed to help them get back on their feet. Dozens of agencies, investigators, and prosecutors are ready to respond to credible allegations of fraud and abuse. If you are aware of fraud, we urge you to call the National Disaster Fraud Hotline.”
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] (link sends e-mail).
Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Learn more about the NCDF at www.justice.gov/disaster-fraud. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Rochester Doctor Pleads Guilty to Illegally Distributing Controlled SubstancesRead 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 that Dr. Clifford Jacobson, M.D., 67, of Rochester, NY, pleaded guilty to illegally distributing a controlled substance, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Dr. Jacobson was a practicing psychiatrist. From 2014 to 2017, he sold prescriptions for Schedule IV controlled substances, including clonazepam, to undercover agents and patients who had no medical necessity for the drug but who sought to use it recreationally. The defendant charged his patients $120 for each illegal prescription.
The plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, acting under the direction of James J. Hunt, New York Field Division, and investigators of the Medicaid Fraud Control Unit, acting under the direction of New York State Attorney General Eric Schneiderman.
Sentencing is scheduled for January 23, 2018, at 9:15 a.m. before Judge Siragusa.
Rochester Doctor Pleads Guilty to Illegally Distributing Controlled SubstancesRead 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 that Dr. Clifford Jacobson, M.D., 67, of Rochester, NY, pleaded guilty to illegally distributing a controlled substance, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Dr. Jacobson was a practicing psychiatrist. From 2014 to 2017, he sold prescriptions for Schedule IV controlled substances, including clonazepam (commonly known by its brand name Xanax), to undercover agents and patients who had no medical necessity for the drug but who sought to use it recreationally. The defendant charged his patients $120 for each illegal prescription.
The plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, acting under the direction of James J. Hunt, New York Field Division, and investigators of the Medicaid Fraud Control Unit, acting under the direction of New York State Attorney General Eric Schneiderman.
Sentencing is scheduled for January 23, 2018, at 9:15 a.m. before Judge Siragusa.
Reading Man Linked to International Drug Conspiracy Sentenced to 13 Years in PrisonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Juan Mendez-Lazaro, age 37, of Reading, Pennsylvania, was sentenced on September 15, 2017, to serve 13 years in prison by U.S. District Court Judge Robert D. Mariani, for his role in a drug conspiracy that was responsible for distributing large quantities of heroin, cocaine, methamphetamine and other drugs during a four-year time period in Monroe, Carbon, Montgomery, and Berks Counties in Pennsylvania.
According to United States Attorney Bruce D. Brandler, the drug ring had sources of supply in Mexico and associates in Chicago who transported the drugs to sub-distributors in Pennsylvania.
Mendez-Lazaro previously admitted to distributing more than one kilogram of heroin (which is equivalent to 40,000 retail bags of heroin), more than five kilograms of cocaine, and more than 50 grams of methamphetamine during 2012 through 2014.
Mendez-Lazaro was indicted by a federal grand jury in March 2014, as a result of an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives. He was one of 12 people, including four Chicago-based associates, charged in the case. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Judge Mariani also ordered the defendant to serve five years on supervised release following his prison sentence.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Providence Man Pleads Guilty to Distributing HeroinRead the Press Release
BOSTON – A Providence, R.I., man pleaded guilty yesterday in federal court in Boston to federal drug charges.
Dennys Villalona, a/k/a Xavier Martinez-Gonzalez, 32, pleaded guilty to one count of possession with intent to distribute and distribution of heroin and one count of possession with intent to distribute and distribution of more than 100 grams of heroin. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 11, 2018.
In November 2016, a cooperating source introduced an undercover officer to Villalona for the purpose of supplying heroin to the undercover officer. On Nov. 17, 2016, Villalona and the undercover officer met in a restaurant parking lot in Foxboro where Villalona agreed to sell the undercover officer one kilogram of heroin for $55,000. He also stated that, if the undercover officer kept coming back and business was good, the price would drop to $50,000 or even less per kilogram. Two days later, Villalona and the undercover officer met again, and Villalona supplied the undercover officer with a nearly 10-gram sample of heroin. On Nov. 22, 2016, Villalona and the undercover officer met at a restaurant in Wrentham, where Villalona delivered a package containing 992 grams of heroin to the undercover officer. All three meetings were recorded.
The charge of possession with intent to distribute and distribution of heroin provides for a sentence of no greater than 30 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $2 million. The charge of possession with intent to distribute and distribution of more than 100 grams of heroin provides for a mandatory minimum sentence of 10 years and up to a lifetime in prison, a minimum of eight years and up to a lifetime of supervised release, and a fine of $8 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Assistant U.S. Attorney Linda Ricci, Deputy Chief of Weinreb’s Narcotics and Money Laundering Unit, is prosecuting the case.
Physician Assistant at Orange County Clinic Convicted of Federal Drug Charges for Illegally Issuing Prescriptions without Medical NeedRead the Press Release
SANTA ANA, California – A federal jury has convicted a physician assistant who worked at a Fountain Valley medical clinic on federal drug trafficking charges for writing prescriptions for dangerous and addictive narcotics without a medical purpose.
Kaitlyn Phuong Nguyen, 32, of San Jose, California, was found guilty yesterday of 10 counts related to the illegal distribution of oxycodone, methadone and alprazolam. The trial jury heard evidence that four “patients” died of drug overdoses after obtaining prescriptions from Nguyen.
On the eve of Nguyen’s trial last week, the doctor who oversaw the clinic was sentenced to 70 months in prison after pleading guilty to two counts of illegal distribution of a controlled substance by a practitioner.
When he pleaded guilty earlier this year, Dr. Victor Boon Huat Siew admitted illegally prescribing oxycodone, methadone and alprazolam from his clinic from the beginning of 2009 through early 2015.
Siew, 66, of Laguna Beach, was sentenced by United States District Judge James V. Selna, who presided over Nguyen’s trial.
According to court documents and evidence presented during Nguyen’s trial, Siew and Nguyen issued prescriptions without a medical purpose in exchange for cash and insurance payments. “Many of the patients…had ‘red flags’ in their patient files, indicating that they were abusing their pain medication and should not have been given prescriptions,” according to a brief filed in relation to Nguyen’s trial.
Nguyen, who worked at the clinic in 2012, performed only cursory examinations on most “patients” prior to prescribing them narcotics. “Despite having a license to write prescriptions herself, defendant [Nguyen] usually used a prescription pad pre-signed by Siew (which was not a lawful practice) to prescribe addictive substances such as oxycodone, methadone and alprazolam,” according to the trial brief.
The most common drugs prescribed by Siew and his employees were oxycodone (best known under the brand name OxyContin), methadone (a synthetic opioid often used as a treatment for addiction to opioids such as heroin), and alprazolam (sold primarily under the brand name Xanax).
The jury found Nguyen guilty of conspiring to distribute controlled substances and nine counts of distribution of controlled substances. As a result of yesterday’s convictions, Nguyen will face a statutory maximum penalty of 140 years in federal prison when she is sentenced by Judge Selna on January 22.
A third defendant in the case – physician assistant Thanh Nha T. Pham, 31, of Fountain Valley, pleaded guilty to conspiracy to distribute controlled substances and is scheduled to be sentenced by Judge Selna on January 29.
This case is the result of an investigation by the Drug Enforcement Administration, the Fountain Valley Police Department and the California Department of Justice.
The case is being prosecuted by Assistant United States Attorneys Ann Luotto Wolf and Rosalind Wang of the Santa Ana Branch Office.
Philadelphia Man Charged with Social Security FraudRead the Press Release
John Robinson, 53, of Philadelphia, Pennsylvania, was charged by Indictment with three counts of wire fraud, one count of theft of government funds, and one count of Social Security fraud, announced Acting United States Attorney Louis D. Lappen. According to the Indictment[1], the defendant received retirement benefits intended for another person after that person’s death in October 1999. The defendant’s alleged actions resulted in a loss to the government of approximately $148,526.
If convicted, the defendant faces a term of imprisonment, a 3‑year period of supervised release, restitution to the government of $148,526, a $1,250,000 fine, and a $500 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
[1] An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.