Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
31 October 2017
Under Agreement with the Justice Department and Environmental Protection Agency, Exxonmobil to Reduce Harmful Air Pollution at Eight U.S. Chemical PlantsRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) announced a settlement today with Exxon Mobil Corp. and ExxonMobil Oil Corp., (ExxonMobil) that will eliminate thousands of tons of harmful air pollution from eight of Exxon’s petrochemical manufacturing facilities in Texas and Louisiana. The settlement resolves allegations that ExxonMobil violated the Clean Air Act by failing to properly operate and monitor industrial flares at their petrochemical facilities, which resulted in excess emissions of harmful air pollution.
ExxonMobil will spend approximately $300 million to install and operate air pollution control and monitoring technology to reduce harmful air pollution from 26 industrial flares at five ExxonMobil facilities in Texas—located near Baytown, Beaumont, and Mont Belvieu—and three of the company’s facilities in Baton Rouge, Louisiana.Once fully implemented, the pollution controls required by the settlement are estimated to reduce harmful air emissions of volatile organic compounds (VOCs) by more than 7,000 tons per year. The settlement is also expected to reduce toxic air pollutants, including benzene, by more than 1,500 tons per year.
The Louisiana Department of Environmental Quality is also a signatory of today’s settlement, which resolves alleged violations of Louisiana law at ExxonMobil’s three plants in Baton Rouge, Louisiana.
“This settlement will improve air quality in Texas and Louisiana by eliminating thousands of tons of harmful air pollution each year,” said Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the Department of Justice. “The agreement, which requires Exxon to reduce emissions from its facilities in Texas and Louisiana, demonstrates the Justice Department’s continuing efforts, alongside EPA and our state partners, to protect the American public from these harmful pollutants by bringing sources of air pollution into compliance with the Clean Air Act.”
“This settlement means cleaner air for communities across Texas and Louisiana, and reinforces EPA’s commitment to enforce the law and hold those who violate it accountable,” said EPA Administrator Scott Pruitt. “As this agreement shows, EPA is dedicated to partnering with states to address critical environmental issues and improving compliance in the regulated community to prevent future violations of the law.”
“LDEQ is always happy to cooperate with our federal partners in investigating environmental violations,” said Dr. Chuck Carr Brown, Secretary of the LDEQ. “This settlement will benefit the entire state of Louisiana, and the Beneficial Environmental Projects included in the settlement will enhance LDEQ’s surveillance and enforcement capabilities.”
These pollutants can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Flares are devices used to combust waste gases that would otherwise be released into the atmosphere during certain industrial operations. Well-operated flares should have high “combustions efficiency,” meaning they combust nearly all harmful waste gas constituents, like VOCs and hazardous air pollutants, and turning them into water and carbon dioxide. The agreement is designed to improve Exxon’s flaring practices. First, it requires Exxon to minimize the amount of waste gas that is sent to the flares. Second, Exxon must improve the combustion efficiency of its flares.
In order to minimize the waste gas sent to the flares, Exxon will create waste minimization plans for each facility. At four of the facilities, Exxon will operate flare gas recovery systems which minimize the amount of waste gas sent to the flares by recovering and recycling the gases before they are sent for combustion in a flare. The flare gas recovery systems will allow ExxonMobil to reuse these gases as a fuel at its facilities or a product for sale. In order to improve combustion efficiency, ExxonMobil must also install and operate instruments and monitoring systems to ensure that gases that are sent to flares are efficiently combusted. ExxonMobil will perform air quality monitoring that is designed to detect the presence of benzene at the fence lines of four of the covered plants, and pay a civil penalty of $2.5 million.
Today’s settlement also requires ExxonMobil to spend $1 million on a supplemental environmental project to plant trees in the City of Baytown. The trees will provide a natural buffer to reduce airborne pollutants from the chemical plants to nearby communities.
The LDEQ will receive $470,000 of the $2.5 million total civil penalty, and ExxonMobil will perform two state “beneficial environmental projects,” including purchasing a $1.5 million mobile air quality monitoring vehicle for LDEQ’s use.
The consent decree, lodged in the Southern District Court of Texas, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
More information about the settlement: https://www.epa.gov/enforcement/exxon-mobil-corporationexxonmobil-oil-corporation-clean-air-act-settlement.
Two West Virginia women admit to their roles in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – A Buckhannon, West Virginia women and a Wallace, West Virginia woman have admitted to their participation in a meth distribution operation, United States Attorney William J. Powell announced.
Melissa Ann Masuga, 33, of Buckhannon, West Virginia, pled guilty to one count of “Distribution of Methamphetamine.” Masuga admitted to conspiring with others to distribute methamphetamine in Upshur County and elsewhere from March 2016 to September 2017.
Clarrisa Michelle Adkins, 24, Wallace, West Virginia, pled guilty to “Unlawful Possession of a Firearm.” Adkins admitted to illegally possessing a .40-caliber pistol and a 9mm pistol in Upshur County in April 2017.
Masuga faces up to 20 years incarceration and a fine of up to $1,000,000. Adkins faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department are investigating.
U.S. Magistrate Judge Michael John Aloi presided.
Two Sentenced for Trafficking MethRead the Press Release
LAREDO, Texas – Two U.S. citizens have been convicted of conspiracy and possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez.
Homero Figueroa-Nava, 37, who resided in Benemerito De Las Americas, Chiapas, Mexico, pleaded guilty April 17, 2017, while Jason Paul Nino, 37, of Waco, entered his plea May 22, 2017. Both men pleaded guilty to conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and possession with intent to distribute approximately 22 kilograms of methamphetamine.
Today, Judge Marina Marmolejo ordered Jason Paul Nino to serve a total of 300 months in federal prison followed by five years of supervised release. Figueroa-Nava will serve a 70-month term of imprisonment and three years of supervised release.
At the time of their pleas, the court heard that a Drug Enforcement Administration (DEA) undercover agent had received approximately 22 kilograms of methamphetamine in Laredo with instructions to take it to Dallas. He was to contact Figueroa-Nava once he arrived at the location. Figueroa-Nava admitted he received the methamphetamine in Dallas and agreed to deliver it to Nino.
Nino admitted he had received the methamphetamine and that it was payment for a previous debt.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The DEA conducted the investigation. Assistant U.S. Attorney Robert Wells Jr. is prosecuting the case.
Two KC Men Charged in Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., men have been charged in federal court for their roles in a conspiracy to commit 10 armed robberies at local businesses.
Jerry D. Patterson, 21, and Michael A. Harris, 19, both of Kansas City, were charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Monday, Oct. 30, 2017. That complaint was unsealed and made public today upon the arrests and initial court appearances of Patterson and Harris.
The federal criminal complaint charges Patterson and Harris together in one count of conspiracy to commit robbery, one count of robbery and one count of brandishing a firearm in furtherance of a crime of violence.
According to an affidavit filed in support of the criminal complaint, Patterson and Harris were involved in a conspiracy to commit 10 armed robberies at area businesses over a four-week period in September and October 2017.
On Oct. 15, 2017, Patterson and Harris allegedly stole $3,500 at gunpoint from Walgreens Pharmacy, 1536 E. 23rd St., Independence, Mo. They drove Patterson’s red 2007 Pontiac G6 sedan, the affidavit says; after officers discovered the vehicle, Patterson and Harrison abandoned it and fled on foot. Investigators searched the vehicle and found a Glock .40-caliber handgun, an extended .40-caliber magazine, money taken from the robbery, and a number of items used in several of the armed robberies. Agents also found a Kahr Arms .40-caliber handgun (seen in several surveillance videos) in a nearby wooded area.
The affidavit also lists a series of armed robberies allegedly committed during the conspiracy. In all of the robberies, says the affidavit, at least one of the defendants displayed a handgun in a threatening manner. The suspects consistently behaved in a violent and aggressive fashion, the affidavit says, pressing a handgun against the stomach or back of business employees and putting an employee on his knees in one of the robberies.
• On Oct. 14, 2017, Patterson and Harris allegedly stole $4,275 at gunpoint from Walgreens Pharmacy, 9300 Gregory Blvd., Raytown, Mo.; • On Oct. 14, 2017, Patterson and Harris allegedly stole $3,000 at gunpoint from CVS Pharmacy, 6244 S. Brookside Blvd., Kansas City, Mo.; • On Oct. 10, 2017, Patterson and Harris allegedly robbed Dollar General, 5105 Blue Ridge Blvd., Raytown, Mo., at gunpoint; • On Oct. 9, 2017, Patterson and Harris allegedly stole $3,705 at gunpoint from Walgreens Pharmacy, 2261 S. Sterling Ave., Independence, Mo.; • On Oct. 8, 2017, Patterson and Harris allegedly stole $575 at gunpoint from Domino’s Pizza, 3709 S. Noland Road, Independence, Mo. They also allegedly stole $410 from employees.
• On Oct. 2, 2017, Patterson and Harris allegedly stole $2,500 from CVS Pharmacy, 5310 Blue Ridge Blvd., Raytown, Mo.; • On Sept. 26, 2017, Patterson and Harris allegedly stole $380 from Family Dollar, 12521 E. 40 Hwy., Independence, Mo.; • On Sept. 26, 2017, Patterson and Harris allegedly stole $150 and some store items at gunpoint from 7 Eleven, 11107 Grandview Rd., Kansas City, Mo.; • On Sept. 10, 2017, Patterson and Harris allegedly stole $3,500 from Walgreens, 1100 E. 63rd. St., Kansas City, Mo.
Larson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the Raytown, Mo., Police Department.
Three Hawaii Residents Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
RENO, Nev. – Three individuals were sentenced Monday for their roles in a multi-state conspiracy to distribute methamphetamine, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Devon Kealiiaukai Kauwe, 35, of Waianae, Hawaii; Joseph Novit Fua, aka “Joey Boy,” 29, and Rhonda Pualani Wong-Fernandez, 30, both of Honolulu, were sentenced to 130 months, 135 months, and 41 months in prison, respectively, by U.S. District Judge Larry R. Hicks. Kauwe and Fua each pleaded guilty to one count of conspiracy to possess with intent to distribute and one count of distribution of at least 50 grams of methamphetamine and Wong-Fernandez pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine.
According to their individual plea agreements, from April 2014 to May 2014, Kauwe, Fua, and Wong-Fernandez conspired to possess and distribute at least 50 grams of methamphetamine. To further the conspiracy, Kauwe agreed to sell seven pounds of methamphetamine for $102,000 to a buyer who was an undercover agent. Kauwe contacted Fua to help him obtain the drugs. Fua and co-conspirators arranged for and acquired a total of 17 pounds, seven pounds were for Kauwe and 10 pounds were for Fua, of methamphetamine. Fua and Wong-Fernandez obtained the 17 pounds of methamphetamine from co-conspirators in the Los Angeles area. Kauwe and co-conspirator Jeromy Perez received seven pounds of methamphetamine from Fua and Wong-Fernandez. Kauwe and Perez drove with the drugs from California to Reno. Fua and Wong-Fernandez drove with ten pounds to Denver where Fua used a co-conspirator to get the concealed methamphetamine around airport security. In Reno, Perez delivered the methamphetamine to co-defendant Shane Kelly McPherson, who then delivered the drugs to the undercover agent in a casino parking lot. On May 5, 2014, during the drug transaction, law enforcement arrested McPherson, Perez, and Kauwe.
The investigation was conducted by the DEA and Assistant U.S. Attorney James E. Keller prosecuted the case.
###
Three Florida Residents Plead Guilty to Operating an Illegal Steroid and Counterfeit Prescription Drug LabRead the Press Release
Montgomery, Alabama – Three people have pled guilty for their involvement in a steroid and counterfeit prescription drug lab in Northwest Florida, announced Louis V. Franklin, Sr., United States Attorney for the Middle District of Alabama.
Ryan Anthony Sikora (24), John Joseph Bush, II (26), and Ariel Anna Murphy (29), all of Chipley, Florida, have pled guilty to conspiracy charges for importing, manufacturing, and distributing anabolic steroids as well as counterfeit prescription drugs. On Thursday, October 26, 2017, the last of the three defendants, John Bush, pled guilty before a Federal Judge in Montgomery, Alabama.
According to court documents, United States Postal Inspectors determined that large amounts of steroid and counterfeit prescription drug ingredients were being shipped from China to various locations in South Alabama and Northwest Florida.
During the investigation, law enforcement found the defendants’ illegal drug lab near Chipley, Florida. In the lab, investigators uncovered a hefty amount of steroids, including over 42,000 pills, over 3,000 liquid vials, and more than a kilogram of raw powders used to make the steroids. Law enforcement also discovered over 35,000 counterfeit prescription pills labeled as Viagra, Cialis, Accutane, and Clomid. Each of these four drugs are regulated by the U.S. Food and Drug Administration (FDA), and are exclusively produced by major pharmaceutical companies. They also require a prescription to be legally dispensed. The defendants mass-produced the pills at the lab using two large-scale pill presses.
The defendants marketed the counterfeit drugs online using the brand name “Future Pharma” and they would typically process the orders through encrypted email, and then use the United States Postal Service to send the contraband products across the United States.
Sikora’s sentencing is scheduled for January 18, 2018. The other two defendants are expected to be sentenced at the same time. Each defendant faces a maximum term of 15 years in federal prison, as well as significant fines and restitution.
U.S. Attorney Franklin would like to thank the following agencies for their assistance with this case: The United States Postal Inspection Service, the FDA Office of Criminal Investigations, the Alabama Law Enforcement Agency (ALEA), the Florida Department of Law Enforcement (FDLE), the Washington County (Florida) Sheriff’s Office, and the Chipley, Florida Police Department. This case is being prosecuted by Assistant United States Attorney Bradley Bodiford.
The Justice Department, Environmental Protection Agency and State of Colorado Reach Agreement with PDC Energy, Inc. to Resolve Litigation and Reduce Air PollutionRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the State of Colorado today announced a settlement with Denver-based PDC Energy, Inc. resolving Clean Air Act violations alleged in a civil complaint. The complaint filed June 26, 2017 alleged that PDC violated requirements to reduce volatile organic compounds (VOC) emissions from its oil and gas exploration and production activities in the Denver area.
This case arose from a series of Colorado inspections that found significant VOC emissions from PDC’s condensate storage tanks. Under the settlement, PDC will spend an estimated $18 million on system upgrades, improved operations and maintenance practices, monitoring, and inspections to reduce emissions. PDC will also be required to implement environmental mitigation projects at certain sites to further reduce VOC and nitrogen oxide (NOx) emissions at a cost of $1.7 million. The settlement includes a $2.5 million civil penalty, which will be split evenly between the United States and the State of Colorado. The state’s share of the penalty may be offset by up to $1 million by performing one or more state-only supplemental environmental projects.
EPA estimates that modifications to the vapor control systems, along with operational and maintenance improvements and increased monitoring, will reduce VOC emissions by more than 1,600 tons per year. PDC already has begun this work, which must be completed on a phased schedule with a deadline of June 30, 2019 for the last phase
“As a result of state and federal efforts, PDC has agreed to take comprehensive action to address excess VOC emissions from its oil and gas operations,” said Associate Attorney General Rachel L. Brand of the Department of Justice. “We are proud that we were able to work side by side with EPA and Colorado to bring these facilities into compliance with the law.”
“This agreement will result in cleaner air in the Denver area and shows that EPA is committed to enforcing the law in order to ensure public health is protected,” said EPA Administrator Scott Pruitt. “This case exemplifies the strong partnerships with states that are integral to delivering results for American communities and finding solutions that build compliance with the law and prevent future violations.”
The settlement covers approximately 650 PDC tank batteries and resolves claims that PDC failed to adequately design, size, operate and maintain vapor control systems on its controlled condensate storage tanks, resulting in VOC emissions. VOC are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. The tank batteries that are subject to today’s settlement are all located in an ozone non-attainment area, meaning that the area does not meet the national air quality standard that EPA set for this pollutant.
As part of the settlement, PDC has agreed to evaluate the design and capacity of its vapor control systems, modify those vapor control systems as necessary to ensure that that they are adequately designed and sized to collect and convey emissions to a control device, implement an enhanced inspection and maintenance program, and undertake periodic infrared camera inspections to identify any emissions and take prompt corrective action to address those emissions. Where monitoring and recordkeeping indicates recurring issues resulting in emissions, PDC will take proactive measures to identify the cause of these issues and prevent their recurrence.
In addition, PDC will implement two environmental mitigation projects to further reduce emissions of ozone precursors from certain PDC well pads in the nonattainment area by an estimated combined 425 tons per year. These efforts are in addition to measures PDC has already taken to reduce emissions from its well pads, such as implementing techniques at all locations equipped with automation capability to sell oil from storage tanks without the need to open thief hatches for sampling or gauging.
The consent decree, lodged in the District Court of Colorado, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
More on this settlement: https://www.epa.gov/enforcement/pdc-energy-inc-clean-air-act-settlement.
Texas Man Pleads Guilty to Violating Federal Drug Trafficking and Firearms Laws in New MexicoRead the Press Release
ALBUQUERQUE – Michael Dwain Samples, 25, of Monahans, Tex., pled guilty today in federal court in Las Cruces, N.M., to violating federal drug trafficking and firearms laws under a plea agreement with the U.S. Attorney’s Office.
Samples’ co-defendant, Nicolas Robert Muniz, 26, also of Monahans, Tex., was charged by criminal complaint on June 5, 2017, after law enforcement officers seized approximately 504 grams of methamphetamine, 50 grams of marijuana, and firearms and ammunition from Muniz’s vehicle following a routine traffic stop. During the traffic stop, Muniz allegedly acted suspicious and nervous causing the officers to deploy a drug detection canine on the vehicle, and the canine allegedly alerted the officers to the presence of controlled substances in the vehicle.
Samples and Muniz were subsequently charged in a six-count indictment on Sept. 13, 2017. Samples and Muniz were charged with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute. Muniz was charged individually with being a felon in possession of a firearm and ammunition and possession of a firearm in relation to a drug trafficking crime. Samples was charged individually with being a felon in possession of a firearm and ammunition and possession of a firearm in relation to a drug trafficking crime. According to the indictment, the offenses took place on May 16, 2017, in Lea County, N.M. Samples was prohibited from possessing firearms or ammunition because he was previously convicted of possession of a controlled substance. Muniz was prohibited from possessing firearms or ammunition because he was previously convicted of theft of property.
During today’s proceedings, Samples pled guilty to conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute and being a felon in possession of a firearm and ammunition. In entering the guilty plea, Samples admitted that on May 16, 2017, he traveled with another individual from Monahans, Tex., to Carlsbad, N.M., to purchase approximately 469 grams of methamphetamine with the intention of distributing the methamphetamine to other people in exchange for money. Samples further admitted that on May 16, 2017, he was in possession of a firearm and ammunition despite his status as a convicted felon.
At sentencing, Samples faces a statutory minimum penalty of ten years and a maximum of life in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
Muniz has entered a plea of not guilty to the charges in the indictment, and is currently scheduled for trial in Jan. 2018. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Texas Man Convicted of Kidnapping Child to MexicoRead the Press Release
BROWNSVILLE, Texas – A 36-year-old man has admitted he kidnapped his minor child from Brownsville and took her to Mexico City, Mexico, announced Acting U.S. Attorney Abe Martinez.
Ismail Khaleel Al Gebory, of San Antonio, had taken the child during a weekend visitation and fled to Mexico.
The mother had sole custody of the child, but Al Gebory had regular visitation. He would travel from his residence in San Antonio to Brownsville on Friday evenings and would return the child to the mother on Sundays. However, on Friday, Feb. 17, 2017, Al Gebory picked up the child but did not return her that weekend in violation of the divorce decree between him and the child’s mother. After picking up the child, he drove to Mexico City, Mexico, and stayed at a hotel with the minor child.
The mother contacted authorities and told them Al Gebory had relatives in Iraq. While in Mexico, Al Gebory visited the Iraqi Embassy and attempted to obtain travel documents for the minor child. On Feb. 23, 2017, Mexican Customs detained Al Gebory before entering the Iraqi Embassy. The next day, the FBI took him into custody.
At the time of the arrest, the child was with him, but has since been returned to the mother.
U.S. District Judge Andrew Hanen accepted the plea today and set sentencing for Feb. 6, 2018. At that time, Al Gebory faces up to three years in federal prison. He was permitted to remain on bond pending that hearing.
The FBI, Department of State and the Brownsville Police Department conducted the investigation with the assistance of Mexican Customs. Assistant U.S. Attorney Jose A. Esquivel Jr. and Ana C. Cano are prosecuting the case.
Springfield Landlord Found Liable of Housing DiscriminationRead the Press Release
BOSTON – A Springfield landlord was found liable by a federal jury on Friday, Oct. 24, 2017, of discriminating against a family in violation of the Fair Housing Act (“Act”).
John DeRaffele, of New Rochelle, N.Y., was found liable following a five-day jury trial of discrimination based on familial status under the Fair Housing Act. The Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. DeRaffele violated the Act by including an addendum to leases that prospective renters could not rent apartments if they had minor children, were pregnant, or became pregnant. Furthermore, in 2015, DeRaffele refused to rent an apartment to a Springfield family because they had a child under six years of age and because the wife was pregnant. When the couple filed a complaint with state authorities, DeRaffele retaliated by suing the couple in federal court alleging $1 million in damages.
The jury found that DeRaffele interfered with the family’s fair housing rights by discriminating based on familial status and engaged in a pattern or practice of discrimination against prospective tenants based on their familial status. The jury awarded $8,500 in damages to the family, and imposed a $35,000 civil penalty for the pattern and practice discrimination.
Acting U.S. Attorney William D. Weinreb and Susan Forward, Regional Director of the U.S. Department of Housing and Urban Development, Fair Housing and Equal Opportunity, New England Office made the announcement. Assistant U.S. Attorney Jennifer A. Serafyn, Chief of Weinreb’s Civil Rights Unit, and Special Assistant U.S. Attorney Gregory J. Dorchak, also of the Civil Rights Unit, handled the case.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
South Korean Maker of Contact Lenses, Company CEO Charged with Smuggling Products into U.S. by Failing to Declare Full ValueRead the Press Release
LOS ANGELES – Geo Medical Co., Ltd., a contact lens manufacturer based in the Republic of Korea that claims to be the “leading brand of circle lenses,” has been charged in federal court with illegally bringing contact lenses into the United States by dramatically undervaluing shipments in documents submitted to customs officials.
An indictment returned on Friday by a federal grand jury charges the company and its chief executive officer with five counts of illegal entry of falsely classified goods. The indictment against Geo Medical and Hwasung Pak, the company’s president and CEO, alleges they sent to the United States shipments of contact lenses with values ranging from $6,200 to $71,815, but declared all five shipments to be worth less than $200. This undervaluing allegedly allowed them to avoid import duties, as well as inspection and seizure by the FDA.
In 2013, Geo Medical was placed on an FDA “Red List” that restricted imports of its products after samples of its contact lenses were found to be contaminated with microorganisms. The import alert authorized the FDA to automatically detain any Geo Medical contact lenses coming into the United States.
In two other cases filed on October 27, two corporations that operate retail outlets in Los Angeles and Orange counties were charged with selling “misbranded” contact lenses without the necessary prescriptions. The criminal informations filed by prosecutors charge I-Takashima, Inc. and TS Group, Inc., which operate cosmetics and gift stores under the Takashima name in Irvine and Rowland Heights, respectively. The decorative contact lenses allegedly illegally sold by Takashima were marketed as Halloween and beauty accessories under the brand name Deja-vu and were manufactured by Geo Medical.
Contact lenses – whether corrective, cosmetic or decorative – are prescription medical devices subject to United States Food and Drug Administration regulations. Due to the risk of injury, blindness and possible eye infection, all contact lenses require prescriptions from medical professionals who can provide guidance on the proper care and maintenance of the contact lenses.
The FDA regularly issues warnings concerning the use of decorative contact lenses, which have become popular during the Halloween season. The American Academy of Ophthalmology also cautions against the use of decorative contact lenses and los lentes de contacto de color.
Indictments and criminal informations contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Geo Medical and Pak are charged with five felony offenses, each of which carries a statutory maximum penalty of two years in federal prison for the CEO and fines of up to $500,000 for the corporation.
I-Takashima and TS Group are each charged with one misdemeanor count of selling misbranded devices. This charge carries a maximum fine of $200,000 for the corporations.
I-Takashima has been summoned to appear for an arraignment in United States District Court in Santa Ana on November 27. TS Group, Geo Medical and Pak have been summoned to appear for arraignments in federal court in Los Angeles on November 30.
The ongoing investigation into the illegal importation and sale of contact lenses is being conducted by the FDA’s Office of Criminal Investigations
The three cases announced today are being prosecuted by Assistant United States Attorney Diana M. Kwok of the General Crimes Section.
Sixth Member of “Manche Boy Mafia” Gang Sentenced to Federal Prison for Credit Card Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Demeko Wells (22, Tampa) to four years and nine months in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. He pleaded guilty on July 19, 2017.
According to court documents and statements made in court, from at least January 2015 through November 2016, Wells and others affiliated with the “Manche Boy Mafia” or “MBM” organization conspired to commit credit card fraud and identity theft in the Tampa Bay area. Investigators learned that these individuals had purchased stolen credit and debit card account numbers online from various websites, some of which used bitcoins as their currency. The conspirators purchased or stole reloadable gift cards and used a machine to emboss the stolen account numbers and their own names onto the front of these altered gift cards, thereby generating counterfeit credit cards. The conspirators then used these counterfeit cards at various retailers around the Tampa Bay area to purchase gift cards and electronics, which they either kept or sold for cash.
Investigators determined that these individuals had engaged in hundreds of successful transactions with counterfeit credit cards, and had possessed and used thousands of stolen account numbers from individuals across the United States. In total, Wells was held responsible for more than $350,000 in intended or attempted purchases with counterfeit credit cards and stolen account information.
Wells’s co-defendant, Maurice Lewis, pleaded guilty to conspiracy and aggravated identity theft and was sentenced on October 17, 2017, to 61 months in prison.
In a related case, fellow MBM members, Brandon Lewis and Terrance Cobb, were each sentenced to 5 years and 1 month in federal prison; Dontae Williams was sentenced to 5 years and 10 months in federal prison; and Davon Smith was sentenced to 5 years and 5 months in federal prison - all for engaging in a conspiracy to commit credit card fraud, credit card fraud, and identity theft.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Shelby County Duo Agree to Plead to Conspiracy to Operate Pawn Shop Fencing RingRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office today charged two Shelby County residents with conspiring to operate a large-scale pawnshop fencing ring, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
In separate informations filed in U.S. District Court, prosecutors charged STEVE RANDALL SCOTT, 59, of Shelby County and Puerto Rico, and SARAH VICKERS, also known as Sarah Elizabeth Cahill and Sarah Vickers Morrow, 39, of Shelby County, with one count of conspiring to transport stolen goods across state lines. Scott and Vickers have agreed to plead guilty and signed plea agreements. They must appear before a judge to formally enter guilty pleas.
“These defendants encouraged thieves to bring stolen retail merchandise to their pawn shops to fuel an illicit online business where they sold as much as $1.5 million in stolen goods,” Town said. “Thanks to the outstanding work of the Secret Service, our partners at the Jefferson County District Attorneys’ Office and local law enforcement, we have been able to shut down a widespread fencing operation in our district,” he said. “This exemplifies the successes in partnerships.”
“This case highlights the excellent work the Secret Service Financial Crimes Task Force is conducting,” Williams said. “This task force is a strong force-multiplier of Birmingham metro area law enforcement that fights financial crimes affecting our community.”
According to Scott’s and Vickers’ plea agreements, Scott, personally and through his relatives and corporations, owned and operated multiple check-cashing, check advance, title loan, and traditional pawn businesses in the Birmingham metro area operating under the names Cashmax, Check Exchange, Cash 101, Cash Plus and Scott’s Jewelry and Pawn. Scott employed Vickers to operate the Cashmax, Check Exchange, Cash 101 and Cash Plus locations.
In 2015, Scott, Vickers and others agreed to start taking in items from shoplifters. Vickers and other employees of Scott encouraged shoplifters to bring them new, in-box items from national retailers including Walmart, Target, CVS, Walgreens and Home Depot. The stolen items included power tools, graphing calculators, Fitbit activity trackers, vacuum cleaners, designer purses and electric toothbrushes. Vickers and other Scott employees accepted the stolen goods, paid the shoplifters a portion of their value, resold the items for a profit on Amazon and eBay, and mailed them to locations across the United States, according to the plea agreements.
On Oct. 14, 2016, the Secret Service Financial Crimes Task Force, working in conjunction with the U.S. Attorney’s Office and the Jefferson County District Attorney’s Office, raided 12 of the Scott locations and arrested 16 people including Scott and Vickers. The task force recovered two tractor-trailers’ worth of stolen goods. The more than 5,000 items had a value of at least $500,000. Scott and Vickers acknowledge in their plea agreements that they sold at least another $500,000 in stolen items via eBay and Amazon. The total loss to area retailers from their scheme is between $550,000 and $1.5 million.
Scott already has forfeited much of the proceeds of the scheme and is no longer operating the businesses. Scott and Vickers will face up to five years in prison and fines up to $250,000.
The Secret Service Financial Crimes Task Force is composed of investigators from the Secret Service, the Vestavia Hills, Mountain Brook, Birmingham, Homewood and Alabaster police departments, and prosecutors from the Jefferson County District Attorney’s Office and the U.S. Attorney’s Office. eBay also assisted in the investigation. Assistant U.S. Attorneys Erica Williamson Barnes, Robin Beardsley Mark and Nicole Grosnoff are prosecuting the case.
###
Roswell Woman Sentenced to 63 Months for Federal Drug Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Renee Rodriguez, 33, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 63 months in prison for her conviction on methamphetamine trafficking and firearms charges. Rodriguez will be on supervised release for three years after completing her prison sentence.
Rodriguez and co-defendant Joseph Vallejos, 25, also of Roswell, were charged in a criminal complaint filed in Sept. 2015, with conspiracy, distribution of methamphetamine, and firearms offenses in Chaves County, N.M. According to the criminal complaint, Rodriguez and Vallejos sold an aggregate of 157.7 grams of methamphetamine to undercover law enforcement officers during nine separate transactions between July 2015 and Sept. 2015. The complaint further charged Rodriguez with brandishing a handgun during a methamphetamine transaction on July 8, 2015.
Rodriguez and Vallejos subsequently were charged in a nine-count indictment that was filed on Dec. 17, 2015. The indictment charged Rodriguez and Vallejos with conspiring to distribute methamphetamine from July 1, 2015 through July 30, 2015. It also charged Rodriguez with distributing methamphetamine on three occasions in July 2015, and Vallejos and Rodriguez with distributing methamphetamine on four occasions in July 2015. Rodriguez also was charged with brandishing a firearm during a drug trafficking crime on July 8, 2015. According to the indictment, Vallejos and Rodriguez committed the nine crimes in Chaves County.
On Aug. 12, 2016, Rodriguez pled guilty to two of the distribution of methamphetamine charges and to brandishing a firearm during a drug trafficking crime. In entering the guilty plea, Rodriguez admitted that on July 8, 2015, she distributed approximately 15 grams of methamphetamine to an undercover law enforcement officer, and during that transaction she used and carried a firearm. Rodriguez further admitted that she distributed approximately 11.9 grams of methamphetamine to an undercover law enforcement officer on July 30, 2015.
On Aug. 3, 2016, Vallejos pled guilty to a conspiracy charge and four methamphetamine distribution charges. At sentencing, Vallejos faces a statutory minimum of five years and a maximum of 40 years in federal prison followed by not less than four years of supervised release. Vallejos also will be ordered to pay $750.00 in restitution to the United States, which represents the proceeds he derived from the drug trafficking offenses to which he pleaded guilty. Vallejos remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Roswell office of the FBI and the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Randolph County Man Sentenced for Methamphetamine OffenseRead the Press Release
On October 31, 2017, Robert J. Smith, Jr., 48, Sparta, was sentenced to federal prison for a methamphetamine offense, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Smith, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute methamphetamine, was sentenced to 188 months of imprisonment, three years of supervised release, and was fined $400.00. The superseding indictment alleged that the methamphetamine offense occurred between 2014 and September 2016, in Perry, Randolph, St. Clair, and Franklin Counties. Evidence at the plea and sentencing hearings established that Smith was involved with numerous other persons in the distribution of ice in southern Illinois. Ice is methamphetamine which has a purity level of at least 80%. At sentencing, the district court found that Smith was responsible for the distribution of approximately 7.9 kilograms of ice.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Steeleville Police Department, Illinois State Police, Sparta Police Department and Southern Illinois Drug Task Force. The Randolph County States Attorney’s Office also assisted in the investigation.
Prosser Man Sentenced to 27 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Stephen Jeffrey Castilleja, age 28, of Prosser, Washington, was sentenced today for four counts of Production of Child Pornography. Senior United States District Judge Edward F. Shea sentenced Castilleja to a twenty-seven year term of imprisonment, to be followed by a lifetime of court supervision after he is released from federal prison. Castilleja will also be required to register as a sex offender.
According to information disclosed during court proceedings, in January of 2016, a Kennewick Police Department detective affiliated with the Southeast Regional Internet Crimes Against Children Task Force (SER-ICAC) was conducting an online undercover investigation relating to the distribution of child pornography. During the course of this investigation, an IP address affiliated with Castilleja and his residence in Prosser was identified as distributing known images of child pornography. Law enforcement agents obtained a federal search warrant for Castilleja’s residence.
Law enforcement officers with the SER-ICAC, HSI, and the Benton County Sheriff’s Office executed the search warrant at Castilleja’s residence. Castilleja was located in close proximity to the residence and was subsequently interviewed. During the course of the interview, Castilleja admitted that he possessed “inappropriate videos” on his computer, and advised he thought he may lose a lot of his life, including his teaching job and volunteer position, over the videos. Castilleja further informed officers that he viewed child pornography for ten to fifteen minutes a day at his worst, and could not bring himself to delete his collection of child pornography. Castilleja also admitted that he had produced child pornography images of two minor children when they were five or six years old, and directed officers to specific electronic devices in the residence that contained child pornography.
The electronic devices seized from Castilleja’s residence were forensically examined. Officers located known child pornography images, as well as child pornography images Castilleja had produced of children close to him. The children depicted were children Castilleja had access to by virtue of his job as a first grade teacher, his intimate relationships, and his familial relationships. The child pornography images and videos that Castilleja produced spanned almost a decade, and included images and videos that portrayed Castilleja engaged in sexual abuse of two of the minor victims. Another video depicted a victim in the school where Castilleja taught as a first grade teacher.
At sentencing, Judge Shea read portions of the impact statements submitted by the victims in the case. He emphasized the immense and immediate harm Castilleja’s actions had on the victims and their families, as well as the long-term ramifications of Castilleja’s crimes. Judge Shea also recognized Castilleja’s abuse of the various positions of trust he held in the community, stating, “In this case there was the ultimate betrayal of trust…the face of a predator is not always what we think it will be. In this case it was a face that seem[ed] harmless…” Judge Shea further stated, “You had a compulsion, an obsession, and structured your life in a position to take advantage of little people…when they were most vulnerable.”
Joseph H. Harrington said, “Today’s sentence should serve as a warning to those criminals who produce child pornography -- they will be actively pursued by federal and state law enforcement officers. This egregious case is an example of the superb work that can be accomplished when state and federal law enforcement officers work together. The United States Attorney’s Office will continue to prosecute aggressively child pornography crimes that occur in the Eastern District of Washington.”
“We entrust teachers to serve as role models for our children and safeguard their welfare. As this sentence makes clear, when that trust is violated, there will be serious consequences,” said Brad Bench, special agent in charge for Homeland Security Investigations (HSI) Seattle. “This case should also serve as a stern warning to those who mistakenly believe cyberspace affords them anonymity and they can use the Internet to sexually exploit children with impunity.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The Southeast Regional Internet Crimes Against Children Task Force, Homeland Security Investigations, Kennewick Police Department and Benton County Sheriff’s Office conducted the investigation of this matter. The case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington, and Andrew Howell, Deputy Prosecuting Attorney for Benton County.
Pocatello Man Pleads Guilty to Sexual Exploitation of MinorRead the Press Release
POCATELLO – Alfredo Padilla, 59, of Pocatello, Idaho, pleaded guilty yesterday to sexual exploitation of a minor child, U.S. Attorney Bart M. Davis announced. Padilla was indicted by a federal grand jury in Pocatello on May 23, 2017.
According to the plea agreement, Padilla coerced an 11-year old girl to take pictures of her exposed breasts, then forced her to pose for additional pornographic pictures. A forensic search of Padilla’s phone revealed 43 images relevant to the case, and images of Padilla were interspersed with images of the young girl. When interviewed by police, Padilla admitted to taking the pictures. In court, Padilla admitted to taking pornographic photographs of the child and to using, persuading, or coercing the child to take part in sexually explicit conduct for the purposes of producing the photographs.
A charge of sexual exploitation of a minor child is punishable by a prison sentence of 15 to 30 years, a fine of up to $250,000, a term of supervised release of five years, up to life, and special assessment totaling $5,100.
The case was investigated by the Pocatello Police Department and U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Pendleton County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – A Franklin, West Virginia man admitted to a firearms violation, United States Attorney William J. Powell announced.
Randy David May, age 37, pled guilty to “Felon in Possession of a Firearm.” May, having been convicted of three prior felonies, admitted to possessing a 12-gauge shotgun on August 28, 2016 in Pendleton County.
May faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Peach Springs Man Sentenced to Prison for AssaultRead the Press Release
PHOENIX – On Oct. 30, 2017, Edward Susanyatame, 39, of Peach Springs, Ariz., and a member of the Hualapai Indian Tribe, was sentenced by U.S. District Judge David G. Campbell to 54 months’ imprisonment, followed by a term of three years of supervised release. Susanyatame had previously pleaded guilty to assault with a dangerous weapon.
On May 2, 2015, Susanyatame assaulted two victims with a deadly weapon, causing them to sustain serious bodily injury. The victims are also members of the Hualapai Indian Tribe, and the assault occurred within the Hualapai Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Hualapai Nation Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-2016-8061-PCT-DGC
RELEASE NUMBER: 2017-108_Susanyatame
# # #
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.
Okaloosa County Sex Offender Sentenced to 40 Years in Prison for Child Exploitation OffensesRead the Press Release
PENSACOLA, FLORIDA – Richard D. Waterson II, 47, a registered sex offender living in Crestview, was sentenced yesterday to 480 months in prison after pleading guilty on January 26, 2017, to attempted enticement of a minor, receipt of child pornography, and for committing a felony involving a minor, while a registered sex offender. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In May and June 2016, Waterson and an undercover officer conversed online regarding sexual contact with the undercover officer’s fictitious 13-year-old daughter “Amber.” Waterson was arrested when he approached the hotel where he had agreed to engage in sexual activity with “Amber.” After his arrest, multiple computers were seized from Waterson. A forensic examination located more than 600 child pornography images and videos, downloaded from the internet, on his electronic devices.
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Okaloosa County Sheriff’s Office, the Crestview Police Department, the Florida Department of Law Enforcement, the Brevard County Sheriff’s Office, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
U.S. Attorney Canova said: “Especially today, on Halloween, as many of us enjoy trick-or-treating with our children, it is comforting to know that diligent prosecutors and law enforcement professionals are working tirelessly year round to pursue these child predators and keep our communities safe places to live. This 40-year prison sentence sends a strong message to those who seek to exploit innocent children.”
“This child predator will spend the next four decades behind bars,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI special agents undoubtedly stopped this criminal from victimizing more children.”
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
North Texas Pill Mill Owner Sentenced for His Role in a Drug Distribution ConspiracyRead the Press Release
DALLAS — Stanley James, Jr., 57, of Dallas and Houston, was sentenced today by U.S. District Judge Jane J. Boyle to 60 months in federal prison, following his guilty plea in May 2016 to a drug distribution conspiracy stemming from his operation of several “pill mills” in north Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
James pleaded guilty to one count of conspiracy to distribute a controlled substance (hydrocodone). He has been in custody since the time of his arrest in October 2015.
Co-defendant John Christopher Ware, a/k/a “Little Chris,” 45, formerly of Dallas but now residing in Houston, also pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on March 8, 2018.
“These pill mills are a significant driver in the opioid crisis in this country and in north Texas,” said U.S. Attorney Parker. “They must be shut down and those running them must be held responsible.”
According to plea documents in the case, James and co-conspirators distributed more than 2,000,000 hydrocodone pills through medical clinics in Dallas, Texas and elsewhere. James owned and managed these clinics, and operated them illegitimately, knowing that the prescriptions for these pills had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice. The hydrocodone quantities encompass the prescriptions issued by the doctors, physician's assistants, nurse practitioners, and nurses who worked at the clinics that James owned, managed, and directed.
A pill mill is a facility that appears to be a medical clinic but in reality distributes large quantities of controlled substances, such as hydrocodone, to the public without regard for medical necessity or therapeutic benefit to the patient. Despite employment of licensed medical practitioners, a pill mill does not operate as a legitimate medical clinic because the controlled-substance prescriptions that are issued are done so with the knowledge that they are not for a legitimate medical purpose in the usual course of professional practice.
According to plea documents in the case, James and Ware owned and operated Great Southwest Medical Clinic on Great Southwest Parkway in Dallas; Arlington Oaks Adult Medical Clinic on Billings Street in Arlington, Texas; and Redbird Family Medical Clinic on Camp Wisdom Road in Dallas. James and Ware owned and operated these three medical clinics under an umbrella company, J.C. Rapha Medical Management Group, LLC.
James operated in the following manner at each of the above-identified clinics: The driver, sometimes also known as a “script ring leader,” or another co-conspirator such as someone associated with the clinic, coached the recruit on what to say inside the clinic to obtain a prescription for hydrocodone. The driver or script ring leader paid for the recruit’s visit to the clinic, either by giving the recruit money to pay the clinic or by paying the clinic directly. The clinics only accepted cash from patients seeking pain medications, including hydrocodone, and charged approximately $150 per visit for established patients.
James took steps to minimize the possibility of detection by law enforcement at the pill mills, including limiting patients to recruits accompanied by known and trusted drivers. James attempted to maximize profit by providing the prescriptions sought by the script ring leaders, including 10mg hydrocodone. To accomplish this, medical practitioners were hired who were willing to write the sought-after prescriptions even though the prescriptions were not being issued for a legitimate medical purpose in the usual course of professional practice.
The Drug Enforcement Administration investigated this case. Assistant U.S. Attorneys Myria Boehm, Mary Walters and Deputy Criminal Chief Assistant U.S. Attorney Nicholas Bunch prosecuted.
# # #
New York City Man Sentenced to over Two Years for Drug ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Duval Grant, a/k/a “Val”, 25, of Bangor, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 28 months in prison and three years of supervised release for conspiring to distribute and distributing heroin, cocaine base, commonly known as crack, and oxycodone.
According to court records, between January 2013 and September 2015, Grant conspired with others to distribute heroin, crack, and oxycodone in the Bangor area and elsewhere. After the drugs were obtained from out-of-state sources and transported back to Maine, Grant and others sold them to customers in the Bangor area. Grant was found to be responsible for distributing over 200 grams of heroin during the four-month period that he participated in the conspiracy.
Chief Judge Torresen varied the defendant’s sentence downward because, among other things, he faces deportation proceedings at the conclusion of his sentence.
The case was related to the prior prosecution of Mario Lee, a/k/a “Moe,” who was sentenced to 218 months imprisonment for his role in the conspiracy. The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Town Man Sentenced for Assaulting Infant ChildRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on October 30, 2017, Kenneth Lee Hall, 23, New Town, North Dakota, pled guilty before Chief United States District Judge Daniel L. Hovland to a charge of Assault Resulting in Serious Bodily Injury. Judge Hovland sentenced Hall to serve 7 years and 6 months in prison, to be followed by 3 years of supervised release.
On December 7, 2016, while under the influence of drugs, Hall picked up and shook an eleven-month-old child multiple times. As a result of Hall’s actions, the child sustained bilateral subdural hematomas, cerebral edema, and bilateral retinal hemorrhaging; all signs of abusive head trauma (previously known as "shaken baby syndrome"). Hall initially lied to law enforcement about the cause of the child’s injuries, but a short time later ultimately admitted to shaking the child multiple times.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Three Affiliated Tribes Police Department.
Assistant United States Attorney Jonathan O’Konek prosecuted the case.
Navajo Man from Shiprock Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Aaron Curley, 55, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 24 months in prison for his conviction on an assault charge. Curley will be on supervised release for three years after completing his prison sentence.
Curley was arrested in Nov. 2016, on a criminal complaint charging him with assaulting a Navajo woman by stabbing her in the leg and sternum area with a knife. Curley was indicted on Dec. 20, 2016, and charged with assault with a dangerous weapon, a knife, with intent to do bodily injury and assault resulting in serious bodily injury. According to the indictment, the offenses took place on Nov. 20, 2016, on the Navajo Indian Reservation in San Juan County, N.M.
On July 10, 2017, Curley pled guilty to Count 1 of the indictment charging him with assault with a dangerous weapon. In entering the guilty plea, Curley admitted that on Nov. 20, 2016, he assaulted the victim by stabbing her in the left leg and caused the victim to sustain cuts to her left arm and hand as she was defending herself.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback prosecuted this case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
National Prescription Drug Take Back Day Collection AmountsRead the Press Release
Acting United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI) together with Drug Enforcement Administration (DEA) Resident Agent in Charge Edward Talbot, would like to thank everyone who participated in the 14th National Prescription Drug Take Back Day which was held this past Saturday, October 28, 2017. Guam collected 452 lbs. of prescription medication and the CNMI collected 44 lbs.
The biannual event was held in Guam, Saipan, Tinian and Rota and was also held at thousands of collection sites around the country. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Contact DEA Special Agent Dave Stubbs at 671-472-7384 regarding any questions about prescription drug abuse and/or any concerns regarding drug related activity on Guam or in the NMI.
For more information, go to www.dea.gov, www.getsmartaboutdrugs.com, or www.justthinktwice.com.
At the Guam site in the Agana Shopping Center – pictured here are Monty McDowell, Chamber of Guam representative, Kirk Williamson, Special Agent with the DEA, and Sgt. Corina Andre with the Guam Army National Guard
Montgomery County Man Charged with Producing Child Pornography, Online Enticement of A Minor, and Transferring Obscene Material to A MinorRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Omar Santiago-Muniz, age 27, of Pottstown, Pennsylvania, was indicted on October 24, 2017, by a federal grand jury on charges of production of child pornography, online enticement of a minor, and providing obscene material to a minor. The case was unsealed today following the arrest of Santiago-Muniz.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Santiago-Muniz committed the offenses between June 2017 and July 21, 2017, in Schuylkill County and elsewhere. The indictment also alleges that Santiago-Muniz used a cell phone and the internet to commit the crimes.
The charges stem from an investigation by Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and the Schuylkill County District Attorney’s Office. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 years’ imprisonment for the production of child pornography charge, and a mandatory minimum sentence of 10 years’ imprisonment for the online enticement charge. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Mission Man Sentenced for Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on October 30, 2017, by U.S. District Judge Roberto A. Lange.
Richard Peneaux, age 23, was sentenced to 24 months in prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Peneaux was indicted by a federal grand jury on April 12, 2017. He pled guilty on August 14, 2017.
The conviction stemmed from an incident that occurred on the evening of March 23, 2017, in South Antelope, South Dakota. On that evening, a Rosebud Sioux Tribe police officer responded to a report of a man walking in the hallways at the Sinte Gleska University campus with no shirt on and carrying two baseball bats. The officer arrived and subsequently made contact with Peneaux, who was attempting to crawl through an apartment window. The officer identified himself and ordered Peneaux to drop the bat he was holding. Peneaux began walking toward the officer with the bat raised, as if to swing it. He approached within 2-3 yards of the officer, at which point the officer pepper-sprayed Peneaux. Peneaux fled the area, but was subsequently apprehended.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Peneaux was immediately turned over to the custody of the U.S. Marshals Service.
Middle Tennessee Tax Return Preparer Pleads Guilty to Filing False ReturnsRead the Press Release
Elassia D. Munson, 43, of La Vergne, Tennessee, pleaded guilty yesterday in U.S. District Court to preparing false tax returns for her clients and filing her own false tax returns, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
According to court documents, from 2010 through 2015, Munson, a tax preparer, prepared and filed materially false tax returns for her clients by claiming false education credits, false charitable deductions, and bogus medical and dental expenses. Munson filed these tax returns with the IRS, generating large tax refunds. Munson diverted a substantial part of the refunds to her E-Trade financial account.
Additionally, Munson failed to report the diversions and her tax preparation fees on her own personal income tax return for years 2011 through 2014. As part of the plea agreement, Munson agreed to pay back approximately $97,000 to the IRS that is attributable to her tax fraud scheme.
Munson will be sentenced on February 26, 2018, and faces a maximum sentence of three years in prison on each count, as well as a period of supervised release and other monetary penalties.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Ryan R. Raybould of the Middle District of Tennessee is prosecuting the case on behalf of the United States.
Meridian Residents Charged with Harboring and Employing Illegal ImmigrantsRead the Press Release
Jackson, Miss – Cheng Lin, 35, Guo Guang Lin, 60, and Yan Fei Tang, 33, all of Meridian, have been charged in a four-count criminal indictment with harboring and shielding illegal aliens, hiring illegal aliens, continuing employment of illegal aliens, and wire fraud, announced U.S. Attorney Mike Hurst. Lin and Lin are Legal Permanent Residents and Tang is an illegal alien from China living in Meridian.
According to the indictment, Lin, Lin, and Tang engaged in a pattern and practice of employing illegal aliens at China Buffet II in Meridian, Mississippi. They transported the illegal aliens to and from work daily, provided housing, deducted rental payments from the cash wages of the illegal aliens, and submitted false tax documents, all in an effort to shield the illegal aliens from detection by authorities.
"Those who come into our country illegally and those who harbor and employ them will be vigorously prosecuted by this office. We will not allow those who violate the law to steal jobs and expend resources intended for American citizens and those here legally," said U.S. Attorney Hurst.
The U.S. Attorney’s Office is also seeking forfeiture of proceeds and property used to facilitate the offenses, including $594,240 in currency, a house in Meridian, and a Ford van.
Lin, Lin, and Tang appeared for arraignment today before U.S. Magistrate Judge F. Keith Ball. A trial is scheduled for January 8, 2018, before U.S. District Judge David C. Bramlette, III.
If convicted on all charges, the defendants each face a penalty of up to 80 years in prison and fines in excess of $500,000.
The case was investigated by Homeland Security Investigations and the Department of Labor, Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys Glenda Haynes and Dave Fulcher.
The public is reminded that a criminal indictment is a formal charge against a defendant. It is merely an accusation and each defendant is presumed innocent unless and until proven guilty in a court of law.
Marion County woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia woman was sentenced today to 57 months incarceration for a firearms conviction, United States Attorney William J. Powell announced.
Heather N. Windsor, age 22, pled guilty to one count of “False Statement During the Purchase of a Firearm” in June 2017. Windsor admitted to making a false statement during the purchase of a 5.56 mm caliber pistol in July 2016 in Monongalia County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Manhattan U.S. Attorney Announces Federal Charges Against Mamadou Ndao and Diabel Samb for String of Gunpoint Robberies of Cellphone Stores in Westchester County and Orange County, New YorkRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Anthony A. Scarpino Jr., the Westchester County District Attorney, and Christopher T. McNerney, Chief of the Greenburgh Police Department (“GPD”), announced the arrest of MAMADOU NDAO and DIABEL SAMB on charges of conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and a firearms offense.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Ndao and Samb endangered the lives of customers and store employees in a series of armed robberies. Thanks to our law enforcement partners, the defendants are now in custody and will face justice in federal court.”
FBI Assistant Director William F. Sweeney Jr. said: “Hard-working people go to work every day to earn a living, and abide by the laws of our country. The subjects in this case allegedly chose to skip being hard-working and law abiding, and demanded money from stores at gunpoint, putting both customers and employees in harm’s way. The FBI Westchester County Safe Streets Task Force pursues criminals each and every day who choose what they may believe is an easier way of life, but now face years in federal prison.”
Westchester County District Attorney Anthony A. Scarpino Jr. said: “Due to the efforts of our dedicated partners in law enforcement, these perpetrators have been delivered into the Criminal Justice System where they belong. We remain committed to reducing all types of crime, particularly those involving criminals who would resort to terrorizing retail store employees by robbing them at gunpoint. These arrests are a testament to our resolve and continued successful relationship with our partners in law enforcement at all levels.”
Greenburgh Police Chief Christopher T. McNerney said: “This successful investigation is the direct result of an outstanding cooperative effort by all of the agencies involved. The arrests of these violent individuals and pending federal prosecution sends a message to the residents of Westchester and beyond that we are committed to using all resources available to fight crime and prosecute offenders to the fullest extent of the law.”
According to the allegations contained in the Complaint[1] charging NDAO and SAMB:
On October 24, 2017, NDAO and SAMB committed a gunpoint robbery of a Verizon store located in Scarsdale, New York. SAMB entered the store carrying a firearm. He displayed the gun to two store employees and directed them to open a safe in the back room of the store. NDAO subsequently entered the store carrying a suitcase, which SAMB and NDAO filled with cellphones and other electronic devices. Following the robbery, SAMB and NDAO fled in a vehicle that had been parked outside the store. Law enforcement intercepted SAMB and NDAO in Mount Vernon, New York, where they were ultimately apprehended by the Greenburgh Police Department. Law enforcement recovered clothing worn by SAMB and NDAO during at least two of these robberies in the vehicle the defendants had used to flee the scene. Numerous stolen cellphones and other electronic devices were recovered from the suitcase NDAO had carried into the Scarsdale Verizon store.
* * *
NDAO, 24, of New York, New York, and SAMB, 32, of New York, New York, are each charged with one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit Hobbs Act robbery, which carries a maximum sentence of 20 years in prison; and one count of using a firearm during and in relation to a crime of violence, which carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
NDAO and SAMB were arrested by the GPD on October 24, 2017, and are expected to be presented tomorrow in White Plains federal court before United States Magistrate Judge Paul E. Davison.
Mr. Kim praised the outstanding investigative work of the Westchester County Department of Public Safety and the Real Time Crime Center, the Mount Pleasant Police Department, the Yonkers Police Department, the Tarrytown Police Department, the Town of Newburgh Police Department, the Pelham Police Department, the Greenburgh Police Department, and the FBI’s Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, the U.S. Probation Office, the Westchester County Department of Public Safety, the Westchester County District Attorney’s Office, the New York City Police Department, the City of Yonkers Police Department, the City of Yonkers Police Department, the Peekskill Police Department, and the Mount Vernon Police Department. Mr. Kim thanked the Westchester County District Attorney’s Office for its significant contributions to the investigation and for its assistance in the arrest and apprehension of the defendants.
The case is being prosecuted by the Office’s White Plains Division. Assistant United States Attorneys Christopher J. Clore and Gillian Grossman are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Manhattan Man Pleads Guilty to Participating in Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JOSEPH MELI pled guilty today in Manhattan federal court to securities fraud. Between 2015 and January 2017, MELI conducted a scheme to defraud more than approximately 130 investors who invested a total of more than approximately $95 million through false representations that MELI would use investor funds to purchase tickets to various live events for resale at a profit on the secondary market. MELI pled guilty earlier today before U.S. Magistrate Judge Barbara Moses.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted in court today, Joseph Meli created his own theatrical production – a fictitious business that purported to have access to blocks of tickets to Broadway shows and other events. In fact, Meli was deceiving investors into giving him money that he pocketed to fund his own extravagant lifestyle. Now he awaits sentencing for running a Ponzi scheme.”
According to allegations in the superseding Indictment filed in Manhattan federal court, previous court filings, and statements made in public court proceedings:
From at least in or about 2015 through in or about January 2017, MELI conducted a scheme to defraud more than approximately 130 investors who invested a total of more than approximately $95 million through false representations that MELI would use investor funds to purchase tickets to various live events for resale at a profit on the secondary market. In fact, MELI utilized a substantial portion of the investor funds he obtained for MELI’s personal expenses – including payments for a $3 million house in East Hampton, New York, a 2017 Porsche convertible, and expensive watches and jewelry – and to make payments, in a Ponzi-like manner, to previous investors in MELI’s ticket fraud scheme and in unrelated hedge fund.
In furtherance of the fraudulent scheme, MELI falsely represented to investors that he had entered into written agreements with production companies for popular Broadway shows and with management companies for popular singers and music bands (together, the “Production and Management Companies”) to purchase large blocks of tickets to the shows and performances. In truth and in fact, MELI had not entered into such agreements and did not have any contractual rights to purchase such tickets from the Production and Management Companies.
In furtherance of the scheme, moreover, MELI provided investors with falsified documents purporting to reflect agreements between MELI’s company, Advance Entertainment, LLC (“Advance”), and the Production and Management Companies, in which the Production and Management Companies agreed to sell Advance large blocks of tickets to the shows or performances. In truth and in fact, the Production and Management Companies had not entered into agreements to sell tickets to MELI or Advance. These fake agreements listed, as authorized representatives entering into the agreements on behalf of the Production and Management Companies, the names of individuals within those organizations, and furthermore contained fraudulent signatures of these individuals.
* * *
MELI, 43, of New York, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000. In addition, pursuant to a plea agreement with the Government, MELI agreed to forfeit proceeds of the offense and to pay restitution to the victims of the offense. MELI is scheduled to be sentenced by Judge Kimba M. Wood on January 31, 2018.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Elisha J. Kobre and Brendan F. Quigley are in charge of the prosecution.
Local Law Enforcement Officers Honored for Commitment to Drug Abuse PreventionRead the Press Release
Two law enforcement officers from Iowa are being honored this week by the United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the Drug Enforcement Administration (DEA) for their commitment to reducing drug abuse. The recipients of the 2017 Enrique S. Camarena Award are Deputy Inspector William (Kevin) Marshall of the United States Postal Inspection Service and Officer Christopher Wuebker of the Decorah Police Department.
The award is named after Enrique “Kiki” Camarena, who was an 11-year veteran agent of the DEA before being kidnapped, brutally tortured and then murdered in Mexico in 1985 while working undercover gathering information and evidence about drug lords. This award is presented each year to local law enforcement officers who best exemplify the qualities and principles for which Agent Camarena gave his life—specifically, making their communities a safer place to live through outstanding drug prevention and enforcement efforts.
This year’s award recipients have gone above and beyond the call of duty in pursuit of a drug-free community:
- United States Postal Inspector William (Kevin) Marshall has worked tirelessly to reduce drug abuse in the State of Iowa, and is a worthy recipient of this distinguished award. In just the past year, Inspector Marshall has assisted in over 120 drug‑related operations with nearly 40 different law enforcement agencies, resulting in the seizure and removal of nearly 80 pounds of methamphetamine, 90 pounds of marijuana, 4 pounds of cocaine, and over 4 pounds of heroin. In addition, Inspector Marshall was instrumental in developing a demonstrative exhibit labeled “What You Don’t See,” which teaches parents how to recognize signs of teenage drug abuse. Inspector Marshall is a mentor to young people, speaks about the dangers of drug abuse to students, and has continually demonstrated his passion for reducing drug abuse within the State of Iowa.
- Decorah Police Officer Christopher Wuebker’s commitment to reducing drug abuse through both enforcement and prevention makes him a worthy recipient of the Enrique Camarena Award. Through his service as a Decorah Police Officer and as a member of the Northeast Iowa Drug Task Force, Officer Wuebker played a critical role in over 100 drug-related prosecutions in northeast Iowa in the past few years. Recognizing the danger and difficulties facing children in homes where drug abuse is present, Officer Wuebker goes out of his way to connect children with resources they need to improve their situation. Officer Wuebker increases public awareness of drug abuse by speaking at schools and community organizations. His extraordinary passion for reducing drug abuse has made a difference in the lives of many young people, and has contributed to a safer community.
Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa, stated, “With opioid and prescription drug abuse at an all-time high, the work these officers do in drug abuse prevention is vital to the safety of our communities. Each recipient richly deserves the honor of receiving the Enrique S. Camarena award. Officer Wuebker demonstrated an admirable dedication not only to investigating and prosecuting drug crimes, but to educating the public of the risks of substance abuse. Officer Wuebker has spoken to college students, high school students, and parents to increase their awareness of the dangers these substances pose to our community.”
Southern District United States Attorney Marc Krickbaum added, “Postal Inspector Marshall’s work prevented hundreds of pounds of drugs from reaching the streets, including keeping more than four pounds of extremely dangerous heroin and opioids from intended recipients. Through tireless efforts, Inspector Marshall assisted in intercepting more than $3,000,000 worth of dangerous drugs in the last year alone.”
Darin T. Thimmesch, the Assistant Special Agent in Charge for the DEA commented on this year’s award, stating, “The DEA is committed to working with our law enforcement partners at all levels to reduce the availability and abuse of illicit drugs in the communities we serve. We are honored to be a part of this distinguished award presentation in memory of fallen DEA Special Agent Enrique S. Camarena. Special Agent Camarena gave his life fighting against the powerful drug cartels in Mexico while trying to protect the country he served from evils of drug distribution and abuse. This award exemplifies the outstanding investigative efforts of these law enforcement officers in disrupting the illegal activities of the drug trafficking organizations operating in and around the communities of northern Iowa, as well as preventing the further distribution of these highly addictive, deadly drugs.”
The Enrique S. Camarena Award is presented each year during Red Ribbon Week. Red Ribbon Week, observed this year from October 23-31, is an alcohol, tobacco, and drug prevention awareness campaign observed annually in the United States and was established in Agent Camarena’s memory.
Follow us on Twitter @USAO_NDIA.
Leader of Violent Drug Crew Sentenced to 30 Years for 2016 MurderRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that RASHOD LEWIS was sentenced by U.S. District Judge Kimba M. Wood to 360 months in prison in connection with his use of a firearm in the murder of Nelson Dubon on January 21, 2016. LEWIS previously pled guilty before U.S. Magistrate Judge Gabriel W. Gorenstein to one count of discharging a firearm in furtherance of narcotics trafficking. LEWIS murdered Dubon in the course of a robbery on Webster Avenue in the South Bronx, which Lewis and other members of the violent street crew “YNR” committed as part of that crew’s drug business.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Rashod Lewis, a leader of a violent drug trafficking and robbery crew, shot and killed Nelson Dubon after Dubon tried to assist other victims of Lewis’ robbery. Yesterday Lewis received the lengthy prison term his vicious crime deserves.”
According to the charging documents filed in the case, as well as statements made during the sentencing proceeding and earlier court appearances:
Since at least 2012, a group of young men and women living in the vicinity of 188th Street and Webster Avenue, and referring to itself as “YNR,” engaged in a conspiracy to distribute crack cocaine and heroin. LEWIS was a leader of YNR and personally participated in multiple drug-related armed robberies. Those incidents included an armed robbery of a narcotics dealer and others located inside a billiards club on January 21, 2016, during which Lewis and his codefendant Kenneth Rudge shot and killed Nelson Dubon. On that date, Lewis and four other members of YNR entered an after-hours club located near Park Avenue and 187th Street. There, the crew threatened and assaulted a narcotics dealer before turning on the patrons of the club. Lewis and others brandished handguns, while another YNR member beat patrons with a pool cue. Dubon, who attempted to assist other victims of the robbery, was shot first by Lewis and then by Rudge, and later succumbed to his wounds.
Rudge is scheduled to be sentenced by Judge Wood on January 25, 2018.
In furtherance of this violent drug crew’s activities, LEWIS stored multiple firearms, including a Mac-11 subcompact machine gun, in an apartment on Webster Avenue. LEWIS also supplied and directed numerous underlings, including minors, in the sale of heroin and crack cocaine on Webster Avenue.
In addition to the prison term, LEWIS, 26, of the Bronx, New York, was sentenced to five years of supervised release.
* * *
Mr. Kim praised the outstanding work of the NYPD and ATF for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Andrew C. Adams and Sarah Krissoff are in charge of the case.
Last of Five Bakersfield Men Sentenced in Conspiracy to Distribute MethamphetamineRead the Press Release
FRESNO, Calif. — Carlos Gerrardo Blanco, 27, of Bakersfield, was sentenced yesterday by United States Chief District Judge Lawrence J. O'Neill to ten years in prison for conspiring to distribute methamphetamine, United States Attorney Phillip A. Talbert announced.
According to court documents, between November 2014 through December 2015, Blanco distributed and conspired with others to distribute methamphetamine to various drug dealers and users in Kern County and Las Cruces, New Mexico. During this time period, Blanco and the other defendants charged in this case admitted that they distributed over 1.5 kilograms of methamphetamine.
Based on wiretap evidence obtained in this case, investigators identified Salvador Morales, 28, and Jose Alejandro Jacobo, 25, both of Bakersfield, as the principal suppliers of methamphetamine to Blanco. Blanco was identified as the leader of a Bakersfield distribution organization that included Justin Alan Rivera, 22, Henry Polin Morales III, 22, and Josefina Blanco (Blanco’s wife), 25, all of Bakersfield. On May 6, 2015, Blanco purchased approximately five pounds of crystal methamphetamine in the Los Angeles area that he intended to sell with the help of Morales III, Josefina Blanco, and Rivera. DEA agents seized the drugs before they could be transported via bus to Las Cruces, New Mexico.
On September 26, 2016, Salvador Morales was sentenced to over six years in prison; on March 13, 2017, Jacobo was sentenced to over seven years in prison; on August 14, 2017, Rivera was sentenced to five years in prison, and on September 25, 2017, Henry Morales III was sentenced to over seven years in prison. Josefina Blanco is scheduled to be sentenced on November 13, 2017, by Chief Judge Lawrence J. O'Neill.
This case was the product of an investigation by the Drug Enforcement Administration and Task Force Officers from the Kern County Probation Office. Assistant United States Attorney Brian K. Delaney prosecuted the case.
Laredo Man Receives 20 Years for Drug TraffickingRead the Press Release
LAREDO, Texas – A 43-year-old man from Laredo has been ordered to prison following his conviction of conspiracy to possess with the intent to distribute and import both cocaine and marijuana, announced Acting U.S. Attorney Abe Martinez. Arturo Valladolid Jr. pleaded guilty Oct. 18, 2016.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Valladolid to serve a 240-month term of imprisonment to be immediately followed by a 10-year term of supervised release after his custodial sentence.
Between October 2015 and June 2016, Valladolid was involved in several drug trafficking events. On Oct. 28, 2015, authorities seized more than five kilograms of cocaine in a tractor-trailer which had been seen leaving a warehouse Valladolid utilized. Another tractor-trailer was seen leaving a warehouse associated with Valladolid on March 16, 2016. That trailer was found to contain more than 100 kilograms of marijuana.
On June 7, 2016, Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) executed a search warrant on Valladolid’s residence in the Alexander’s Commonwealth subdivision of Laredo. At that time, they discovered more than 100 kilograms of marijuana in his attic.
Valladolid ultimately admitted that he was being paid to store the marijuana.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with assistance from the Texas Department of Public Safety. Assistant U.S. Attorney Christopher dos Santos is prosecuting the case.
LaPlante Man Charged with Aggravated Sexual AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a LaPlante, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Ryun Bowker, age 26, was indicted on October 24, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 30, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 17, 2016, Bowker knowingly engaged in, and attempted to engage in, a sexual act by the use of force with a female victim.
The charge is merely an accusation and Bowker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Police Department. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Bowker was released on bond pending trial. A trial date has not been set.
KC Man Charged with Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with the armed robbery of U.S. Bank.
Terrance R. Haynes, 56, of Kansas City, was charged with one count of armed bank robbery in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint alleges that Haynes stole approximately $1,629 from U.S. Bank, 1 W. Armour Blvd., Kansas City, Mo., on Monday, Oct. 30, 2017.
According to an affidavit filed in support of the criminal complaint, Haynes approached a teller at about 3:10 p.m. and handed her a demand note that was written on the back of a U.S. Bank deposit slip. The note read, “Give me the money now.” Haynes lifted his shirt, the affidavit says, and the teller noticed he had a black handgun tucked in his waistband. She opened her teller drawer and handed him money. Haynes allegedly stated, “I want the 100’s and 50’s, hurry up.” The teller started to move slowly, the affidavit says, and Haynes stated, “I’m going to shoot you.” The teller gave him 100’s and 50’s. Haynes allegedly took the money and left the bank.
About 20 minutes later, Kansas City police officers identified Haynes, who was driving a 2007 Ford Taurus. The vehicle was pulled over and Haynes was taken into custody without incident.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Jacksonville Man Sentenced to More Than 11 Years in Federal Prison for Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Joseph Rodriguez Fraguada (25, Jacksonville) to 11 years and 8 months in federal prison for receiving child pornography. He pleaded guilty on August 25, 2017.
According to court documents, the investigation began when various members of the North Florida Internet Crimes Against Children (ICAC) task force separately identified a host computer sharing child pornography from Clay County. Further, detectives in Snohomish County, Washington identified the user of the same host computer actively engaging in online chat communications with a 10-year-old child, during which the user requested the girl to take and send visual images of herself engaging in sexually explicit conduct to him. Law enforcement identified the computer user to be Fraguada.
Agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, working in conjunction with the Clay County Sheriff’s Office, executed a search warrant at Fraguada’s residence on April 27, 2017. They located a laptop computer under Fraguada’s bed that was actively running the file-sharing program through which he had been sharing child pornography. Fraguada also had a thumb drive containing a collection of child pornography.
“HSI special agents, with our Clay County Sheriff's Office law enforcement partners, have stopped this predator,” said HSI Tampa Special Agent in Charge James C. Spero. “Protecting the most vulnerable in our society will remain a priority for HSI.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Clay County Sheriff’s Office, and the Snohomish County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case 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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illegal Aliens Plead Guilty to Dealing Meth in NorfolkRead the Press Release
NORFOLK, Va. – Two illegal aliens, one of whom was previously convicted of an aggravated felony in Arizona and has been deported at least three times, pleaded guilty today to dealing methamphetamine in Norfolk.
According to court documents, Jaime Sanchez-Huerta, aka “Carlos Slim,” 23, of Mexico, pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and possession of a firearm by an illegal alien. Alejandro Rodriguez-Vargas, 34, of Mexico, pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and illegal reentry by a deported alien.
According to court documents, on April 25, Norfolk Police arrested Sanchez-Huerta on his way to a drug deal in Norfolk. Sanchez-Huerta, an illegal alien, was in possession of a loaded .45 caliber pistol. Norfolk Police searched Sanchez-Huerta’s vehicle and hotel room and discovered $4,000 in cash, 4.5 grams of methamphetamine, marijuana, digital scales, and a box of .45 caliber ammunition. On April 26, Norfolk Police searched a second hotel room tied to Sanchez-Huerta and discovered Rodriguez-Vargas, another illegal, and 137 grams of “Ice.” Rodriguez-Vargas has been deported at least three times before and he was previously convicted of re-entry by a deported alien subsequent to a conviction for an aggravated felony in Arizona in 2013.
Both men face mandatory minimum sentences of 10 years in prison and maximum sentences of life in prison when sentenced on Feb. 16, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Larry D. Boone, Chief of Norfolk Police, made the announcement after U.S. District Judge Mark S. Davis accepted the plea. Assistant U.S. Attorney Darryl J. Mitchell is prosecuting the case.
ICE’s Enforcement and Removal Operations and the Virginia Beach Police Department provided significant assistance with this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-129.
Hyannis Woman Charged with Smuggling CocaineRead the Press Release
BOSTON – A Hyannis woman was arraigned today in federal court in Springfield for her role in a scheme to traffic cocaine into the United States.
Cristina M. Delle Femine, 27, was indicted on Sept. 28, 2017, on one count of conspiracy to import cocaine and one count of conspiracy to possess with intent to distribute cocaine. Delle Femine was arrested in Maine on Oct. 23, 2017, and appeared in federal court in Springfield today.
According to the indictment Delle Femine conspired in May 2017 to import cocaine from Jamaica into the United States and conspired to possess cocaine with the intent to distribute.
The charges of conspiracy to import and conspiracy to possess with intent to distribute each provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Weinreb’s Springfield Branch Office is prosecuting the case.
Highland Heights man sentenced to 12 years in prison for selling furanyl fentanyl that killed Cleveland teenRead the Press Release
A Highland Heights man was sentenced to 12 years in prison for selling furanyl fentanyl that resulted in the fatal overdose of a Cleveland teen, said U.S. Attorney Justin Herdman and Cleveland Police Chief Calvin Williams.
Alec J. Steinberger, 22, was also ordered to pay $10,548 to the family of the deceased to pay for his funeral expenses.
Steinberger previously pleaded guilty to distribution of a controlled substance the resulted in death, possession of a controlled substance with intent to distribute, attempted possession of a controlled substance with intent to distribute and use of a communication facility in furtherance of a drug offense.
“This case is another example of one of our neighbors dying from opioids coming to Northeast Ohio from China,” Herdman said. “We will continue to seek long prison sentences for those who sell drugs in our community.”
“Investigators of the Heroin Death Investigation Team are trained to investigate heroin overdose cases and link the victims back to the dealers,” Williams said. “It is through the combined efforts of law enforcement, at the local, state and federal levels, and prosecutors of the U.S. Attorney’s Office that these indictments are secured and convictions are won. It is the hope that these examples will deter others from continuing this deadly cycle.”
Beginning on Jan. 30, 2016, Steinberger received Alprazolam (also known as Xanax) and furanyl fentanyl for distribution. Furanyl fentanyl is a potent synthetic opioid. These drugs came to Steinberger through the mail, according to court documents.
On Feb. 23, 2016, Steinberger texted an associated: “I just got a pack bro.” He then informed several people that he had drugs for sale, including Laith Hudson.
Steinberger texted Hudson repeatedly the next day. Messages included: “bro I did it last night any my pupils got so small they disappeared and then I was nodding for 18 hrs,” “Bro this is uncut from the road” and “this is uncut from china,” according to court documents.
Steinberger then repeatedly texted Hudson if he knew anyone that could cut or dilute the drugs and repackage it for sale. Steinberger texted: “We gonna chill tmr” “and go to the hood and give samples” and “try and find out how to cut and re rock,” according to court documents.
Shortly after midnight on Feb. 25, Steinberger texted Hudson.: “Find me customers and tell them you’re the plug and I’ll get it to you and then sell it and cut u in a tiny bit and throw u a free (Klonopin) and dope,” according to court documents.
On Feb. 25, Hudson fatally overdosed on furanyl fentanyl he bought from Steinberger, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Matthew J. Cronin following an investigation by the U.S. Postal Inspection Service and Cleveland Division of Police.
Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national pleaded guilty today in federal court in Boston to a federal immigration charge.
Selvin Danilo Herrera-Arana, 33, pleaded guilty to one count of unlawful reentry of a deported alien before U.S. District Court Judge Leo T. Sorokin. Sentencing is scheduled for Jan. 25, 2018.
In July 2017, Herrera-Arana was arrested in Lynn and determined to be illegally present in the United States, having previously been deported on three different occasions: April 7, 2009, Sept. 4, 2012, and Sept. 9, 2014.
Herrera-Arana faces a sentence of no greater than 10 years in prison, up to three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
General Foreman at Port Elizabeth Convicted of Salary FraudRead the Press Release
NEWARK, N.J. – A member of the International Longshoremen’s Association (ILA) and general foreman for a Port Elizabeth terminal operator was convicted at trial today for fraudulently collecting a nearly $500,000 annual salary, much of which was for work he never performed, Acting U.S. Attorney William E. Fitzpatrick announced.
Paul Moe Sr., 66, of Atlantic Highlands, New Jersey, was convicted on all 14 counts of an indictment charging him with one count of wire fraud conspiracy and 13 substantive counts of wire fraud. He was convicted following a 10-day trial before U.S. District Court Judge Katharine S. Hayden in Newark federal court. The jury deliberated for two hours before returning its verdict.
According to statements made in court and the evidence at trial:
From September 2015 through March 2017, Moe fraudulently collected a compensation package that paid him almost $500,000 annually while showing up at his job site for as little as eight hours per week. In order for Moe to collect his $9,300 weekly paycheck, other conspirators submitted false timesheets each day on his behalf and even credited him for up to 16 hours of overtime a day. The 13 substantive wire fraud counts consist of one-week increments in which Moe – having either failed to appear at the job site or while being out of state or out of the country – was paid as if he had been on the job for a minimum of 40 hours a week.
Each count is punishable by up to twenty years in prison and a $250,000 fine. Sentencing will be scheduled at a later date.Acting U.S. Attorney Fitzpatrick credited special agents and investigators with the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York; the Office of Employee Benefits Security Administration (EBSA), under the direction of Regional Director Jonathan Kay; and the Office of Labor Management Standards, under the supervision of District Director Andriana Vamvakas, with the investigation.
The government was represented by Senior Litigation Counsel V. Grady O’Malley, Assistant U.S. Attorney Anthony Moscato, Chief of the National Security Unit, and Special Assistant U.S. Attorney Tracey Agnew.
Defense counsel: Gerald McMahon Esq., New York
Former Soccer Official Costas Takkas Sentenced to 15 Months in Prison for Laundering Millions of Dollars in BribesRead the Press Release
Earlier today, in federal court in Brooklyn, former Cayman Islands soccer official Costas Takkas was sentenced to 15 months of incarceration by United States District Judge Pamela K. Chen following his money laundering conspiracy guilty plea on May 24, 2017. Takkas was convicted of this offense in connection with his agreement to launder $3 million in bribes to be paid by sports marketing companies to Jeffrey Webb, the former president of CONCACAF, $2 million of which reached Webb through Takkas. Takkas was also ordered to pay $3 million in restitution to the Caribbean Football Union, known as CFU, as part of his sentence.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and R. Damon Rowe, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI) announced the sentence.
“The defendant Costas Takkas has now been held to account for using the U.S. financial system to launder millions of dollars in bribes as part of the corruption of international soccer,” stated Acting United States Attorney Rohde. “This Office, together with our law enforcement partners at the FBI and IRS-CI, will continue to bring to justice those who seek to use the U.S. financial system to hide criminal conduct and its proceeds.” Ms. Rohde also thanked the United States Department of Justice Office of International Affairs, Organized Crime and Gang Section and Money Laundering and Asset Recovery Section for their assistance in the case, and expressed her appreciation to the governments of the Cayman Islands, Switzerland, and St. Vincent and the Grenadines for their cooperation.
“The soccer officials involved in all aspects of FIFA take an oath to adhere to a code of ethics, and they accept a responsibility to make sure monies go to the groups they represent, not to line their own pockets,” stated FBI Assistant Director-in-Charge Sweeney. “The game of soccer will continue to be played in small neighborhood parks and in lavish stadiums around the world, but the FBI’s wide-ranging and vast investigation won’t end until everyone involved in every aspect of corruption and bribery are brought to justice.”
“Over a three-year period, Takkas undermined the process of fair and open competition when he conspired to secretly funnel bribe money to Webb through a series of transactions involving international wire transfers and U.S. financial institutions,” stated IRS-CI Special Agent-in-Charge Rowe. “IRS Criminal Investigation is committed to aggressively investigating individuals who use offshore entities, foreign bank accounts, and wire transfer systems based in the U.S. to facilitate the laundering of illicit funds. Working with our partners at the Department of Justice, we will continue to unmask money laundering intermediaries who enable corrupt practices to flourish.”
Background[1]
The sport of soccer is governed worldwide by the Féderation Internationale de Football Association (FIFA), FIFA’s constituent continental confederations (including CONCACAF, the confederation covering North America, Central America and the Caribbean), and FIFA’s constituent national member associations (which are also known as federations). Some confederations, such as CONCACAF, include regional football subgroups within them, including the Caribbean Football Union (CFU), which is composed of federations from the Caribbean region. Since 2004, soccer officials have been bound by FIFA’s code of ethics, which, among other things, imposes a fiduciary duty on soccer officials in favor of the soccer organizations they represent.
The CFU member federations owned the media and marketing rights to soccer matches played in their home territories during the qualifying stages for the men’s World Cup tournament. Rather than sell portions of these rights separately as individual federations, the CFU federations agreed to bundle portions of their rights together for sale. The CFU, like many other soccer governing bodies, typically sold these rights to sports marketing companies that served as middlemen, which in turn sold different portions of the rights to different broadcasters and media companies around the world.
The CFU Rights Bribery and Laundering Scheme
The defendant was a longtime associate of Jeffrey Webb, who in 2012 was the president of the Cayman Islands Football Association (CIFA, which was a member of the CFU), a high-ranking official of the CFU, and the president of CONCACAF. Around that time, an executive of Traffic USA, a sports marketing company based in Miami, began negotiations with Webb to purchase the bundled media and marketing rights to the CFU federations’ World Cup qualifier matches for the 2018 and 2022 cycles. The defendant communicated on Webb’s behalf to the Traffic executive that Webb wanted a $3 million bribe in exchange for awarding these rights to Traffic. The Traffic executive agreed, and a few months later, after Webb had appointed the Traffic executive to serve as secretary general of CONCACAF, Traffic and the CFU entered into a contract for the sale of these rights. Meanwhile, the defendant began to work with the Traffic executive to determine how Traffic could pay Webb this bribe while disguising the true nature of the payments.
The defendant had meetings with other Traffic executives both in Miami and in Brazil, where Traffic’s parent company was located, to make arrangements for Traffic to secretly make these bribe payments to Webb. Following these meetings, in November 2012, Traffic wired $1.2 million from a bank account in Florida to a middleman’s bank account in Hong Kong, from which $1 million of these funds were wired to an account in the Cayman Islands owned by Kosson Ventures, Limited, a company the defendant controlled. In December 2012, Traffic wired an additional $500,000 to the Caymanian bank account of CPL Limited, another company the defendant controlled. In the course of receiving these funds, the defendant made false statements about them, and the accounts receiving them, to Caymanian bank employees. The defendant also created bogus consulting contracts purportedly to justify the payments.
After receiving these funds in the Caymanian accounts, the defendant conveyed them to Webb and the Traffic executive, or spent the funds for their benefit. For example, after wiring some of the funds to a Citibank account he held in Florida in his own name, Takkas used funds in that account to pay for real estate in Georgia that Webb was purchasing, and for a swimming pool at Webb’s house in Georgia. During the course of the scheme, the defendant lied to a Citibank employee about the payment for the swimming pool, saying that the swimming pool was a wedding gift for Webb. Takkas also used these funds to pay for luxury leather goods and watches for Webb and the Traffic executive, and a kitchen remodeling and expensive painting for the Traffic executive.
Also in 2012, Traffic entered an agreement with another Miami-based sports marketing company named Media World, whereby the two companies pooled the media and marketing rights they had obtained for World Cup qualifier matches in the CONCACAF region, and shared responsibility for associated costs. As part of that agreement, Media World agreed to be responsible for half of the $3 million bribe that Traffic had agreed to pay Webb for the CFU media rights. The defendant met with a Media World executive in Miami on several occasions to discuss how Media World could pay this bribe in a hidden manner. Eventually, the defendant and Media World arranged for $500,000 to be sent from a Panamanian front company to various accounts in the United States, the Cayman Islands, and St. Vincent and the Grenadines, again using bogus consulting contracts to mask the true nature of the bribe payments. The defendant spent some of these funds to benefit Webb before the scheme was stopped, first by concerns about the government’s investigation and then by the disclosure of the scheme in May 2015 by the initial indictment in this case.
The government’s case is being handled by the Office’s FIFA Task Force. Assistant United States Attorneys Paul Tuchmann, Samuel P. Nitze, M. Kristin Mace, Keith D. Edelman, Kaitlin T. Farrell, and Brian D. Morris are in charge of the prosecution.
The Defendant:
COSTAS TAKKAS
Age: 60
Citizenship: United Kingdom
E.D.N.Y. Docket No. 15-CR-252 (PKC)
[1] The information described below is set forth in various court filings and statements made during court appearances in this case and related cases.
Former Merrill Lynch financial advisor charged in federal court with securities fraudRead the Press Release
Alleged to have stolen millions from clients
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler today announced federal criminal charges against a Carmel, Indiana, financial advisor for defrauding clients by charging excessive commissions. Thomas. J. Buck, 63, was charged in federal court with one count of securities fraud following an in-depth investigation by the FBI. Buck has agreed to plead guilty to the charge.
“Financial investors have a right to feel secure when entrusting oftentimes the bulk of their life’s savings to a financial advisor that the advisor will do no harm,” said Minkler. “The government worked steadfast together with its investigative FBI agents and analysts, Merrill Lynch (the defendant’s former employer), and individual investors to understand the full scope of defendant Thomas Buck’s fraud scheme. This criminal charge represents a significant undertaking representative of the type of work the citizens of this district expect, demand, and deserve.”
For over 30 years, Buck was a registered financial advisor with global investment firm Merrill Lynch, Pierce, Fenner & Smith, now a division of Bank America (Merrill Lynch), Buck counseled thousands of clients on their investments and money management.
The criminal charges unsealed today allege that, in recent years, Buck defrauded some clients by charging excessive commissions and intentionally failing to advise them of cheaper pricing options for his services. Specifically, it is alleged that Buck took discretion on certain client accounts, placing trades without client authorization, which resulted in clients paying commissions on these trades. But Buck allegedly told clients they were paying less in commissions than they actually were. Then, it is alleged that Buck intentionally failed to inform certain clients that a fee-based payment structure was available which could result in financial savings to the client, although Buck repeatedly informed Merrill Lynch compliance personnel that he had made the clients aware of the potentially cheaper pricing structure.
As a result of Buck’s fraud, it is alleged that Buck’s criminal activity caused clients to suffer a total loss of $2 million.
“These are not victimless crimes. These are crimes that can wipe out a family’s life savings and leave their financial future in ruins,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “That’s why the partnerships the FBI has with agencies such as the Securities and Exchange Commission are important to ensuring a stop is put to unauthorized and illegal activities.”
According to Assistant United States Attorneys Cynthia J. Ridgeway and Nick Linder, who are prosecuting this case for the government, Buck has agreed to plead guilty to the securities fraud change and could face up to 25 years’ imprisonment if convicted.
Contemporaneous to the unsealing of the criminal charge and Buck’s agreement related thereto, Buck has also agreed to settle with the Securities and Exchange Commission and pay approximately $5 million as part of that civil settlement.
Buck will have an initial appearance today, at 2pm in Room 243, U.S. Federal Courthouse.
Individual investors who believe they are victims of the specific fraud scheme described in this case are directed to the government’s public website at https://www.justice.gov/usao-sdin for more information pursuant to the Crime Victims’ Rights Act, 18 U.S.C. § 3771.
Criminal charges are merely allegations and are not evidence of guilt. The defendant is considered innocent until proven guilty in federal court.
###
Former Carbon County Emergency Services Director Sentenced to Six Months in Prison after Conviction for Using County Credit Card for Personal UseRead the Press Release
SALT LAKE CITY – Jason Thomas Llewelyn, age 46, of Helper, Utah, who pleaded guilty to one count of misprision of a felony in July, will serve six months in prison. U.S. District Judge David Nuffer imposed the sentence Monday in Salt Lake City.
Llewelyn, who was working as the Carbon County Emergency Services Director at the time of the criminal conduct, admitted in court documents that he used a county credit card to purchase items for his personal use. He had a county credit card to make purchases for various agencies within Carbon County. Llewelyn is also a former Carbon County Deputy Sheriff.
Judge Nuffer also ordered Llewelyn to pay $64,723.03 in restitution to Carbon County. He will also serve 12 months of supervised release after he completes his prison sentence.
“Civil servants are held to high standards of professionalism and integrity, and when they hold to those standards they deserve the public’s trust. When a civil servant violates that trust with criminal intent, the resulting offense is very serious regardless of the dollar amounts involved. A six-month sentence in federal prison fairly reflects the seriousness of the offense in this matter,” U.S. Attorney John W. Huber said today.
In July of 2015, law enforcement officers discovered that Llewelyn had used his county credit card to purchase several parts for boat repairs. Following an initial investigation, a search warrant was executed at his houseboat where officers located items.
The Carbon County Sheriff’s Office and the FBI participated in the investigation of the case.
As a part of a plea agreement reached with federal prosecutors, Llewelyn admitted he took an affirmative step to conceal the crime by making it appear the purchases were for the county when he knew the purchases were for his own personal use. He also admitted knowing Carbon County did not authorize the purchases.
A federal grand jury returned an indictment charging Llewelyn with theft concerning programs receiving federal funds in November 2015. The indictment alleged Llewelyn used county funds to purchase hundreds of items for his houseboat and other personal interests. He pleaded guilty to a Felony Information charging him with misprision of a felony as a part of his plea agreement.
Former Assistant City Prosecutor Pleads Guilty to Conspiracy to Distribute MarijuanaRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Donald Bauermeister, 44, entered a plea of guilty to conspiring to distribute marijuana. The plea was entered before the Honorable Laurie Smith Camp, Chief Judge in Omaha. A presentence investigation was ordered and sentencing is scheduled for January 29, 2018.
Bauermeister entered into a plea agreement agreeing to a factual basis for his plea. The plea agreement states that Bauermeister was an Assistant City Prosecutor in Council Bluffs, Iowa. A 13-pound shipment of marijuana was seized in Summit County, Utah. The driver advised he was paid by Bauermeister to pick up the marijuana in Oregon and transport it to Omaha. A search of the co-conspirator’s phone revealed a series of texts from Bauermeister. The texts provided specific instructions on how to meet up with the source and travel updates.
When confronted by the Federal Bureau of Investigation, Bauermeister resigned his position. He also surrendered his license to practice law.
This case was investigated by the Federal Bureau of Investigation.
Florida Man Pleads Guilty to Credit Card Chargeback ConspiracyRead the Press Release
RICHMOND, Va. – A Florida man pleaded guilty today to participating in a fraudulent credit card chargeback scheme that primarily targeted internet services businesses.
According to court documents, Gustavo Carvajal, 28, of Coral Springs, worked from June 2014 to May 2015 for a business named Smith Associates, which operated out of a strip mall location in Margate, Florida. Smith Associates targeted individuals who had attempted to set up their own online business, and incurred thousands in credit card bills in the process. Smith Associates advertised itself as a law firm that would conduct arbitration on behalf of these potential clients to win refunds of the money they had spent in attempting to create an online business. Smith Associates did not employ any lawyers, however, and never conducted any arbitration on behalf of its clients. Instead, Smith Associates simply filed chargebacks on their clients’ credit card expenses, and pursued those chargeback claims by creating and submitting fraudulent documents to their clients’ credit card banks. Smith Associates did not advise its clients it would be committing fraud on their behalf, and to avoid any chance their clients might learn of the fraud scheme, Smith Associates also created phone numbers that spoofed their clients’ actual numbers, using those spoofed numbers to contact the banks and impersonate the client. Smith Associates took a 40 percent cut of the refunds that it fraudulently obtained, and over the course of the conspiracy, defrauded more than 10 internet services businesses of nearly $9.5 million.
Carvajal pleaded guilty to conspiracy to commit mail fraud and faces a maximum penalty of five years in prison when sentenced on Jan. 25, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. Magistrate Judge David J. Novak accepted the plea. Assistant U.S. Attorneys Thomas A. Garnett and Katherine Lee Martin are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-144.
Five Defendants Convicted of Operating Heroin Trafficking Ring Protected by Corrupt Former Baltimore City Police Department DetectiveRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – A federal jury has convicted Antonio Shropshire, a/k/a Brill, B, and Tony, age 34, of Baltimore, Omari Thomas, a/k/a Lil’ Bril, Lil B, and Chewy, age 25, of Middle River, Antoine Washington, a/k/a Twan, age 27, of Baltimore, Alexander Campbell, a/k/a Munch, age 29, of Baltimore, and Glen Kyle Wells, a/k/a Lou, and Kyle, age 31, of Baltimore, on conspiracy to distribute and possession with intent to distribute heroin and cocaine relating to a drug trafficking organization in North Baltimore. Washington was additionally convicted of distribution of heroin resulting in death.
The verdict was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration; Sheriff Jeffrey R. Gahler of the Harford County Sheriff’s Office; Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to evidence at presented at trial, from 2010 until the dates of their arrests, Shropshire and his co-conspirators distributed multiple kilograms of heroin to customers throughout the Baltimore area. Members of the conspiracy, known to law enforcement as the Shropshire Drug Trafficking Organization (DTO), distributed narcotics in Northern Baltimore, primarily near the Alameda Shopping Center. The Shropshire DTO distribution of heroin caused overdoses, including fatal overdoses. For example, on December 27, 2011, J.L. died as a result of the use of narcotics that were distributed by the DTO.
Shropshire used residences within Baltimore, Maryland to process, cut, repackage and prepare heroin for distribution to customers, routinely carried firearms in furtherance of the conspiracy and conducted counter-surveillance of law enforcement in an attempt to prevent law enforcement from detecting the illegal activities carried out by the Shropshire DTO.
In order to shield himself from law enforcement, Shropshire utilized various street dealers to distribute his heroin. One of those street dealers was Defendant Thomas, who Shropshire instructed about the quality and price of heroin that Thomas should sell for Shropshire. Shropshire also arranged for the sale of heroin with customers, but had street dealers distribute the heroin to the customers so Shropshire could avoid law enforcement surveillance.
Fourteen heroin customers of the defendants testified at trial, many of whom became addicted to heroin after having been prescribed or taken prescription opioids, including a customer who suffered from multiple sclerosis, a customer who had injured herself in a high school gymnastics accident and a customer who was prescribed opioid painkillers after surgery. Together, these customers purchased more than 17 kilograms of heroin from the defendants over the course of the seven-year conspiracy.
Co-defendant Momodu Bondeva Kenton Gondo, a former member of the Baltimore Police Gun Trace Task Force (GTTF), provided sensitive law enforcement information to Shropshire and his co-conspirators in order to help the DTO. According to his plea agreement, Gondo admitted to providing protection, information and tips to Shropshire about how to avoid being arrested. For example, on March 31, 2016, Gondo alerted Shropshire that the Drug Enforcement Administration had installed a GPS tracking device on his vehicle. Shropshire, under Gondo’s instruction, then removed the GPS device and placed it on another vehicle.
During the course of the conspiracy, Defendant Washington proposed robbing and killing a rival drug dealer to Defendant Wells. Defendant Wells agreed and recruited Gondo, who in turn recruited another former GTTF member, Jemell Rayam, who has pleaded guilty to racketeering in a separate case to place a GPS tracking device on the rival drug dealer’s car and rob him when he was away from his apartment. On the day of the home invasion, Wells and Rayam broke into the apartment, and Rayam, upon discovering that the drug dealer’s girlfriend was asleep in bed, threatened to kill her if she did not tell him where her boyfriend kept his money. Wells and Rayam ultimately stole 800 grams of heroin, which Wells sold, sharing the proceeds with Washington, Gondo and Rayam, $12,000, which they shared, a gun, which former GTTF members Gondo and Rayam gave to Wells, a known drug dealer, and a Rolex watch and other jewelry.
Shropshire, Washington, and Campbell each face a mandatory minimum of 10 years and up to life in prison for conspiracy to distribute at least one kilogram of heroin. Gondo, Wells and Thomas each face a mandatory five years and up to 40 years in prison for conspiracy to distribute at least 100 grams of heroin. Washington faces a mandatory minimum sentence of 20 years in prison for distribution of heroin resulting in death. Shropshire, Gondo, and Campbell also face a maximum penalty of 20 years in prison for possession with intent to distribute heroin and cocaine.
Sentencing is set for Shropshire on February 16, 2018, at 11 a.m., Washington on February 9, 2018, at 2 p.m., Campbell on February 16, 2018, at 9:30 a.m., Thomas, on February 15, 2018, at 9:15 am, and Wells on February 22, 2018, at 9:15 a.m. in U.S. District Court in Baltimore. All defendants were detained pending sentencing.
Acting United States Attorney Stephen M. Schenning commended the DEA, Harford County Sherriff’s Office and the Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted this Organized Crime Drug Enforcement Task Force case.