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30 October 2017
Groton Man Sentenced to 6 Years in Federal Prison for Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE DAVILA, also known as “Fallo,” 33, of Groton, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 72 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, an investigation by the Groton Town Police Department and the Regional Community Enhancement Task Force revealed that DAVILA was selling heroin from a camper located on a property on South Road in Groton. On May 23, 2016, investigators conducted a court-authorized search of the camper and seized more than 100 grams of heroin, items used to process and package heroin for street sale, a .380 cailber pistol with an obliterated serial number, and 80 rounds of ammunition. DAVILA was arrested on that date.
On March 1, 2017, DAVILA pleaded guilty to one count of possession with intent to distribute heroin. He has been detained since his arrest.
DAVILA’s criminal history includes at least four prior convictions, including convictions for threatening, sale of illegal drugs, and risk of injury to a child.
This case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Fort Pierce Resident Sentenced in Federal Health Care Fraud SchemeRead the Press Release
Miguel De Paula Arias, 53, of Fort Pierce, was sentenced to 161 months in prison on charges of health care fraud, false statements related to healthcare and aggravated identity theft.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), Jimmy Patronis, Florida Chief Financial Officer, and Sarah J. Mooney, Chief, West Palm Beach Police Department, made the announcement.
According to the indictment, Arias stole the identities of six retired and semi-retired senior citizen physicians and their Medicare accounts used to submit claims for services provided to patients. Arias, utilized fake passports, driver’s licenses and other identity documents, to establish bank accounts, mailing addresses and phone answering services in the names of the victim physicians to give the appearance that the physicians were in practice and providing medical care to senior citizens in different locations around the country. Between June 2011 and December 2016, using stolen personal identification information of real senior citizens from around the county, Arias submitted fraudulent and fictitious claims for purportedly providing medical services to Medicare using the victim doctors’ identities. Arias had the money paid by Medicare, resulting from this scheme, deposited into the bank accounts he controlled in the victim doctors’ names. The doctors, as a result of Arias’ crimes, received bills from the Internal Revenue Service for unpaid taxes and from Medicare for repayment of the apparently fraudulent claims. As a result of the fraudulent and fictitious claims submitted by Arias, he was paid more than $1.6 million.
The court imposed a total sentence of 161 months in prison, followed by three years of supervised release, restitution to Medicare in the amount of $1,665,348.03. Arias has been in custody since December 21, 2016. At the conclusion of the hearing, Arias was remanded to the custody of the Bureau of Prisons to serve his sentence.
Mr. Greenberg commended the investigative efforts of the HHS-OIG, FBI, DOL-EBSA, Florida Division of Investigative and Forensic Services, and the West Palm Beach Police Department. This case is being prosecuted by Assistant U.S. Attorneys Ellen L. Cohen and Stephanie Evans.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Qdoba Employee Pleads Gulity to ArsonRead the Press Release
LEXINGTON, Ky. – A Lexington, Ky., man has entered a guilty plea to a federal arson charge, which involved a fire at a local business where he had previously been employed.
Bennie C. Davis, 21, entered his guilty plea today, before Senior U.S. District Judge Joseph M. Hood.
In his guilty plea, Davis admitted that, on April 25, 2017, he entered the Qdoba Restaurant located on East Tiverton Way, in Lexington, after the store had closed and then set fire to the building. Davis had been recently discharged from a management position with Qdoba, a position he had held for several years.
Acting U.S. Attorney Carlton S. Shier, IV; Stuart Lowery, Special Agent in Charge, ATF; and Kristin Chilton, Chief of the Lexington Fire Department, jointly announced the guilty plea.
The ATF and the Lexington Fire Department conducted the investigation. Assistant U.S. Attorney Roger West prosecuted the case on behalf of the federal government.
Davis will be sentenced on February 29, 2018 and faces a minimum sentence of five years. He must serve at least 85 percent of his prison sentence.
Former Old Dominion University Employee Charged with Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A former employee of Old Dominion University’s computer science department pleaded guilty today to receiving images of child sexual abuse.
According to court documents, Christopher J. West, 33, of Virginia Beach, distributed child pornography to an FBI agent working in an undercover capacity in 2016. After an investigation linked the IP address of the downloads to West, the FBI executed a search of West’s apartment in Virginia Beach on April 20. During an interview West admitted he used a file sharing program to download child pornography videos from the internet. Forensic analysis on the electronics seized from West’s residence determined that he had multiple videos of child pornography on his electronic devices.
West pleaded guilty to receipt of child pornography and faces a mandatory minimum of five years and a maximum penalty of 20 years in prison when sentenced on Feb. 21, 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, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea. Assistant U.S. Attorney Megan M. Cowles is prosecuting the case.
This case is 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 and click on the tab “resources” for more information about Internet safety education.
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. 4:17-cr-88.
Former O.C. Man Sentenced to over 8 Years in Prison for Bilking Insurance Companies by Billing for Tests that Were Never PerformedRead the Press Release
LOS ANGELES – A former resident of Aliso Viejo who submitted fraudulent bills to insurance companies that sought well over $8 million for tests and services that were never performed was sentenced today to 97 months in federal prison.
Michael Mirando, 40, who currently resides in Portland, Oregon, was sentenced by United States District Judge Percy Anderson, who also ordered Mirando to pay just over $3 million in restitution. At the conclusion of today’s hearing, Judge Anderson – who called the defendant “totally unrepentant” – remanded Mirando into custody.
Following a one-week trial, Mirando was found guilty in May of 15 counts of health care fraud. The federal jury deliberated for less than 30 minutes before issuing its verdicts.
The evidence presented during the trial showed that Mirando – who was an owner of Holter Labs, LLC, which provided cardiac monitoring services using an ambulatory electrocardiography device known as a Holter recorder – defrauded dozens of private insurance companies by submitting millions of dollars in claims for services that were never performed. Mirando handled most of Holter Lab’s business activities, including purchasing the Holter recorders, advertising, managing the company’s finances, and submitting the medical claims to the patients’ insurance companies. Holter Labs was based in Laguna Niguel until Mirando moved the company to Portland in 2012.
Holter Labs provided the Holter recorder to physicians, who prescribed the devices to monitor patients’ heart rates for one to two days. Mirando then billed the patients’ insurance companies for the prescribed 24- or 48-hour tests, but he also submitted bills for services never ordered – such as 30-day tests – and for services the device could not perform – such as brain scans and oxygen studies.
From 2005 through 2016, Mirando submitted tens of thousands of claims to health insurance companies, some of which were for services legitimately performed. But Mirando also submitted bills “for services that doctors never ordered, patients never received, and that the Holter devices never performed and, in many cases, were incapable of performing,” according to documents filed by prosecutors.
The bills submitted to 26 health insurance companies sought approximately $10.3 million, which included approximately $8.4 million for tests that his company’s heart rate monitors never performed and were unable to perform. The victim health insurance companies paid about $3 million on these fraudulent claims.
Mirando was “the scheme’s primary beneficiary,” prosecutors wrote in their sentencing memorandum. “He controlled Holter Labs’ finances, diverted most of the fraudulent proceeds from his business partner, and paid to himself the majority of the proceeds from fraudulent scheme. And [Mirando] continued submitting his fraudulent claims even after being indicted and arrested.”
After Mirando admitted that he purchased his house in Portland with proceeds generated by the fraud scheme, Judge Anderson recently signed a preliminary order of forfeiture for that residence.
The case against Mirando was investigated by the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Michael G. Freedman and Katherine A. Rykken of the General Crimes Section.
Former Erie Resident Pleads Guilty to Drug and Gun ChargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal drug and firearms laws, Acting United States Attorney Soo C. Song announced today.
Ramon Martinez-Silva, 38, pleaded guilty to one count at Criminal No. 14-26 Erie and one count at Criminal No. 15-20 Erie before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that in the case at Criminal No. 14-26 Erie, from on or about May 16, 2013, to on or about August 26, 2013, Martinez-Silva and a co-defendant conspired to distribute and possess with intent to distribute cocaine. Martinez-Silva sold cocaine on four occasions in Erie, Pennsylvania. In addition, at Criminal No. 15-20 Erie, Martinez-Silva possessed a firearm while being a convicted felon. According to information provided to the court, Martinez-Silva obtained a Marlin 9mm semi-automatic rifle from an individual at a residence in Erie and was then caught by law enforcement officers after selling that gun. Martinez-Silva was prohibited from firearm possession because of two prior felony convictions.
Judge Cercone scheduled sentencing for April 19, 2018 at 3:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both for the drug charge and 10 years in prison, a fine of $250,000, or both for the gun charge. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting these cases on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Erie Police Department, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation conducted the investigation that led to the prosecution of Martinez-Silva.
Former D.C. Teacher Pleads Guilty to Sexually Abusing StudentRead the Press Release
WASHINGTON – Alan Wade Coleman, 47, of Gainesville, Florida, pled guilty today to a charge of first-degree child sexual abuse for sexually abusing of one of his students during the 2004-2005 academic year, when Coleman was a teacher at the KIPP D.C. Key Academy middle school in Southeast Washington, announced U.S. Attorney Jessie K. Liu.
Coleman pled guilty in the Superior Court of the District of Columbia as part of a larger plea agreement in which he already pled guilty in Montgomery County, Md., where Coleman then lived and where most of the sexual activity with the student occurred.
The Honorable Hiram E. Puig-Lugo scheduled sentencing for Jan. 26, 2018. Coleman is scheduled to be sentenced in Montgomery County on Dec. 14, 2017. Once released from prison, Coleman will be required to register as a sex offender for 10 years as a result of his plea in the District of Columbia, and for life as a result of his plea in Montgomery County. He will also be on supervised release for up to 10 years as part of his sentence in the District of Columbia.
According to the government’s evidence, during the 2004-2005 academic year, Coleman engaged in sexual acts with the female student, most of which occurred at his apartment in Takoma Park, Md.; at the time she was 14 and 15 years old. On those occasions, Coleman would drive the girl to Maryland from a location either at, or near, the KIPP School. However, on several occasions during that academic year, Coleman drove her to a location in the District, where he parked and engaged in sexual acts with her in his vehicle. Coleman remained in a relationship with the girl until she was 19.
In announcing the plea, U.S. Attorney Liu praised the work of officers from the Metropolitan Police Department’s Youth Investigation Division. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams and Victim/Witness Advocate Juanita Harris. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Former Chief Financial Officer of Manhattan-Based Real Estate Management Company Sentenced to 63 Months in Prison for FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that LOUIS LITVIN, the former chief financial officer of United Realty Management (“URM”), was sentenced today by U.S. District Judge Naomi Reice Buchwald to 63 months in prison for his role in a fraudulent scheme to steal more than $1 million from URM.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Louis Litvin, the former chief financial officer of the real estate management company URM, abused his position and substantial control he had over URM’s books, to help orchestrate a million-dollar fraud against the very company he was supposed to be serving. Today, this corporate executive was held accountable for his criminal greed.”
According to the Complaint, Information, and statements made on the record at sentencing:
From 1996 to 2011, LITVIN was the CFO for URM, and also a part-owner of URM. Unbeknownst to his co-owners, LITVIN conspired with co-defendants Melissa Chan (a former URM bookkeeper) and Chitakra Ramudit (a former Capital One branch manager who handled URM’s banking relationship) to steal more than $1 million from URM through fraudulent wire transfers, cashier’s checks, and unauthorized transfers and deposits.
LITVIN also took steps to cover up the fraud. For example, after he was fired from URM, he filed for bankruptcy. In connection with the bankruptcy proceeding, he lied in his sworn deposition, and he coached Chan to lie in her deposition, by providing her with a cover story to explain money she received from him. The cover-up of the fraud continued for years after LITVIN was fired in October 2011, until it finally came to light when URM retained forensic auditors to review the accounts that LITVIN oversaw.
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In addition to his term of incarceration, LITVIN, 64, of West Palm Beach, Florida, was sentenced to five years of supervised release, and forfeiture and restitution in amounts to be determined.
LITVIN’s co-defendant Melissa Chan pled guilty to conspiracy to commit bank fraud on October 24, 2017, and is scheduled to be sentenced by Judge Buchwald on March 14, 2018. LTIVIN’s co-defendant Chitakra Ramudit is charged in Information S2 17 Cr. 445 (NRB) with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit money laundering. The allegations in the Information as to Ramudit are merely accusations, and she is presumed innocent unless and until proven guilty.
Mr. Kim praised the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Eli J. Mark and Jacob Warren are in charge of the prosecution.
Former Chairman and CEO of Federal Credit Union and Computer Programmer for Unlawful Bitcoin Exchange Sentenced in Manhattan Federal CourtRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that TREVON GROSS and YURI LEBEDEV were sentenced by U.S. District Judge Alison J. Nathan to prison in connection with a bribery scheme to take over control of a federal credit union and a related fraud scheme to operate Coin.mx, an illegal Bitcoin exchange. On March 17, 2017, GROSS and LEBEDEV were convicted following a jury trial on all counts with which they were charged in the controlling indictment. On October 20, Judge Nathan sentenced LEBEDEV to 16 months in prison. Earlier today, Judge Nathan sentenced GROSS to 60 months in prison.
Acting U.S. Attorney Joon H. Kim said: “Yuri Lebedev and others at Coin.mx, an unlawful Bitcoin exchange, tricked banks into processing millions of dollars in transactions by hiding the nature of their business. When the banks caught on to their scheme, Lebedev and others bribed Trevon Gross in order to gain control of a credit union to process those transactions, undermining the credit union’s safety and solvency in the process. Despite elaborate efforts by the defendants to hide their schemes, their brazen crimes were exposed at trial. Gross and Lebedev’s criminal schemes have now landed them in federal prison.”
According to the Superseding Indictment on which GROSS and LEBEDEV were convicted, evidence admitted at trial, and statements made during the sentencing proceedings:
The Unlawful Bitcoin Exchange
Between 2013 and July 2015, LEBEDEV helped operate Coin.mx, an unlawful internet-based Bitcoin exchange, along with Anthony Murgio, the founder of Coin.mx. LEBEDEV, Murgio, and their co-conspirators engaged in substantial efforts to evade detection of their unlawful Bitcoin exchange by operating through a phony front company called “Collectables Club.” Coin.mx used the “Collectables Club” to open financial accounts in order to trick financial institutions into believing the unlawful Bitcoin exchange was simply a members-only association of individuals who discussed, bought, and sold collectible items and memorabilia. LEBEDEV and his co-conspirators deceived financial institutions by deliberately misidentifying and miscoding Coin.mx customers’ credit and debit card transactions, in violation of bank and credit card company rules and regulations. Through the illegal Coin.mx scheme, LEBEDEV and his co-conspirators caused more than $10 million in Bitcoin-related transactions to be processed illegally through financial institutions.
The Credit Union Bribery Scheme
In 2014, in an effort further to evade scrutiny from financial institutions about the nature of the business engaged in by Coin.mx, LEBEDEV, Murgio, and their co-conspirators gained control of HOPE Federal Credit Union (“HOPE FCU”), a low-income designated federal credit union in Lakewood, New Jersey, for which GROSS served as Chairman and CEO. After making more than $150,000 in illegal bribes at GROSS’s direction to bank accounts in the name of a church where GROSS served as the pastor, LEBEDEV, Murgio, and their co-conspirators took control of HOPE FCU. With GROSS’s assistance, Murgio installed LEBEDEV and various co-conspirators on HOPE FCU’s Board of Directors and transferred Coin.mx’s banking operations to HOPE FCU. GROSS also ceded operational control of the credit union to the board members installed by Murgio, including LEBEDEV. Thereafter, GROSS, LEBEDEV, and others worked to run tens of millions of dollars of ACH (Automated Clearing House) transactions through the credit union without adequate capital or anti-money laundering controls, thus putting HOPE FCU’s financial condition at substantial risk.
GROSS, LEBEDEV, Murgio, and their co-conspirators also obstructed an examination of HOPE FCU by the National Credit Union Administration (“NCUA”) and made false statements to the NCUA in order to perpetuate LEBEDEV and Murgio’s control of the credit union. These included deliberately failing to disclose the bribe payments; misrepresenting the location of Coin.mx-affiliated businesses, including the “Collectables Club,” so as to claim that they were eligible to be members of the credit union and to serve as Board members; and manipulating the accounting at HOPE FCU so as to hide its true financial condition and the fact that it was processing tens of millions of dollars of ACH transactions without adequate controls. HOPE FCU was operated as a captive bank by MURGIO and his co-conspirators until the end of 2014. In October 2015, the NCUA placed HOPE FCU into conservatorship and subsequently liquidation.
On March 17, 2017, GROSS and LEBEDEV were convicted after a four-week jury trial of conspiring to make corrupt payments to an officer of a financial institution, to receive corrupt payments by an officer of a financial institution, to obstruct an NCUA examination of a financial institution, and to make false statements to the NCUA. GROSS was also convicted of the receipt of corrupt payments by an officer of a financial institution. LEBEDEV was also convicted of making corrupt payments to an officer of a financial institution, wire fraud, bank fraud, and conspiring to commit wire fraud and bank fraud. In imposing today’s sentence, Judge Nathan found that GROSS committed perjury when he testified under oath at trial.
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In addition to the prison sentences, GROSS, 47, of Jackson, New Jersey, and LEBEDEV, 39, of St. Johns, Florida, were each sentenced to three years of supervised release and ordered to pay fines of $12,000 and $10,000, respectively. In addition, GROSS and LEBEDEV were ordered to forfeit the proceeds of their crimes and to pay restitution, jointly and severally with Murgio, to the NCUA.
All four of LEBEDEV and GROSS’s co-defendants have been convicted and have been sentenced or are awaiting sentence by Judge Nathan.
Anthony R. Murgio pled guilty on January 9, 2017, to conspiring to operate an unlicensed money transmitting business, conspiring to commit wire fraud and bank fraud, and conspiring to obstruct an examination of HOPE FCU by the NCUA in furtherance of the illegal Coin.mx scheme. On June 27, 2017, Murgio was sentenced to 66 months in prison, three years of supervised release, and a $12,000 fine.
Michael J. Murgio pled guilty on October 27, 2016, to conspiring to obstruct an NCUA examination of a financial institution, and was sentenced on January 27, 2017, to one year of probation and a $12,000 fine.
Jose M. Freundt pled guilty on October 13, 2016, to operating an unlicensed money transmitting business, conspiring to operate an unlicensed money transmitting business, making corrupt payments to an officer of a financial institution, conspiring to make corrupt payments to an officer of a financial institution, wire fraud, and conspiring to commit wire fraud. Freundt is scheduled to be sentenced on December 18, 2017.
Ricardo Hill pled guilty on January 17, 2017, to operating an unlicensed money transmitting business; conspiring to operate an unlicensed money transmitting business; making corrupt payments to an officer of a financial institution; conspiring to make corrupt payments to an officer of a financial institution, to receive corrupt payments by an officer of a financial institution, to obstruct an NCUA examination of a financial institution, and to make false statements to the NCUA; wire fraud; bank fraud; and conspiring to commit wire fraud and bank fraud. Hill is scheduled to be sentenced on December 18, 2017.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the United States Secret Service. He also thanked the NCUA for its assistance with the investigation and prosecution.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi, Daniel S. Noble, and Won S. Shin are in charge of the prosecution.
Former Attorney Sentenced to 15 Months in Prison for Wire FraudRead the Press Release
SAN FRANCISCO – Scott Loren Steever was sentenced to 15 months in prison and ordered to pay $283,689.16 in restitution for his role in a conspiracy to commit wire fraud and to commit money laundering, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down on October 25, 2017, by the Honorable Edward M. Chen, U.S. District Judge, following Steever’s plea of guilty to the charges.
According to the plea agreement, Steever, 60, of Rohnert Park, Calif., admitted that during the course of the offense, he was a licensed attorney and was working in a law firm with his co-defendant, Robert Anderson. In 2009, the law firm became financially distressed and experienced persistent cash flow problems. Between November 2009 and August 2012, Steever and his co-defendant took funds from a client’s trust account, used those funds to pay the firm’s expenses, including payment of Steever’s and his law partner’s draws, and later misrepresented that those funds were still held in a trust account for the client’s benefit, even though all of the funds had been spent. As a result of the scheme, the client suffered a net loss of $210,189.16.
A federal grand jury indicted Steever on December 18, 2014, charging him with one count of conspiracy to engage in wire fraud, in violation of 18 U.S.C. § 1349; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h); six counts of wire fraud, in violation of 18 U.S.C. §§ 1347 and 2; and one count of money laundering, in violation of 18 U.S.C. § § 1957 and 2. On November 18, 2016, Steever pleaded guilty to the two conspiracy counts and the remaining charges were dismissed.
In addition to the prison term, Judge Chen also sentenced the defendant to a 3-year period of supervised release. Further, for losses caused by his offenses and other misuse of client funds entrusted to his former law firm, Steever agreed to pay, and Judge Chen ordered Steever to pay, restitution to the client in the amount of $210,189.16, and restitution to two other victims in the amounts of $45,000 and $28,500—for a total of $283,689.16 in restitution. Steever will begin serving his prison term on January 8, 2018.
On March 9, 2016, Robert Anderson pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering. Judge Chen has scheduled Anderson’s sentencing for December 13, 2017.
Assistant U.S. Attorney Chinhayi Cadet is prosecuting the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by the FBI.
Firearms Crime ReportRead the Press Release
Clarence Bradford, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute controlled substances; and possession of a firearm in furtherance of a drug trafficking crime.
Darryl Easley, 47, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute marijuana; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Charles Jones, 44, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Willie McFarland, 42, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Harold Perkins, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and one felony count of felon in possession of ammunition.
Frederick Townley, 51, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Calvin W. Davis, 55, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Anthony Kirksey, 30, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Ivery Williams, 48, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Donta Vines, 32, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Eric L. Clark, 54, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Raymond Pargo, 38, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Victor Wilson, 41, Hazelwood, pled guilty to one felony count of felon in possession of a firearm.
Richard E. Scott, Jr., 35, pled guilty to one felony count of conspiracy to distribute and possess with intent to distribute in excess of 5 kilos of cocaine; one felony count of conspiracy to distribute and possess with intent to distribute in excess of 100 grams of heroin; and one felony count of felon in possession of a firearm.
Brandon A. Campbell, 27, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Shon Sanders, 43, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Cary Washington, 47, St. Ann, was sentenced to 41 months in prison for felon in possession of a firearm.
Taron Scott, 28, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.
Roland Robinson, 22, Florissant, was sentenced to 41 months in prison for felon in possession of a firearm.
Dominique Darden, 30, St. Louis, was sentenced to 15 months in prison for felon in possession of a firearm.
Pierre Underwood, 29, was sentenced to 65 months in prison for possession of a stolen firearm.
Donvie S. Eddington, 29, St. Louis, was sentenced to 30 months in prison for felon in possession of a firearm.
Cleave Abbott, 45, St. Louis, was sentenced to 76 months in prison for felon in possession of a firearm, possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
Cary W. Washington, 47, St. Louis was sentenced to 41 months in prison for felon in possession of a firearm.
George Gholston, 25, Florissant, was sentenced to 24 months in prison for felon in possession of a firearm.
Joseph A. Tolcou, 27, Union, was sentenced to 30 months in prison for felon in possession of a firearm.
Erie Man Pleads Guilty in Food Stamp Fraud SchemeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to defraud the United States, Acting United States Attorney Soo C. Song announced today.
Dhia Almaleki, 47, of Erie, Pennsylvania, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Dhia Almaleki and three co-defendants were engaged in exchanging food stamps for cash on a regular basis at The Lotto World, also known as Samir’s and Lotto World Convenience, a convenience store located at 832 State Street in Erie. The four defendants also allowed customers to pay off store credit with food stamps. Alquraishi was also using customers’ food stamp cards to buy items at various stores in the area.
Judge Cercone scheduled sentencing for April 19, 2018. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Almaleki on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General, the Department of Homeland Security Investigations, and the Erie Police Department conducted the investigation that led to the prosecution of Almaleki.
District Man Sentenced to 60 Years in Prison for Killings of Two Roommates in Northwest WashingtonRead the Press Release
WASHINGTON – Jeffrey Neal, 25, of Washington, D.C., was sentenced today to 60 years in prison on charges stemming from the slayings of his two roommates, whose bodies were found at their residence in Northwest Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Neal was found guilty in July 2017 of two counts of first-degree murder while armed, with aggravating circumstances, and related offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Chief Judge Robert E. Morin. Following his prison term, Neal will be placed on five years of supervised release.
According to the government’s evidence, on June 12, 2014, at approximately 11:35 a.m., officers with the Metropolitan Police Department (MPD) were dispatched to a house in the 1800 block of Eighth Street NW for a report of an unconscious person. The body of Leon Young, 22, was discovered in the attic, naked except for a black plastic bag tied around his head. Neal was arrested the following day and charged with Mr. Young’s murder.
On June 16, 2014, police returned to the house and discovered the body of Delano Wingfield, 23, in a shallow grave in the backyard. He was naked except for a pair of socks.
An investigation determined that both men were beaten multiple times in the head with a hammer. During the investigation, police learned that Mr. Young and Mr. Wingfield were childhood friends with the defendant. When the police interviewed Neal, he confessed to killing Mr. Young. He claimed he killed Mr. Young in self-defense, after Mr. Young allegedly confessed to killing Mr. Wingfield. Neal claimed he hit Mr. Young twice in the head with a hammer in self-defense. However, the autopsy of Mr. Young revealed that Mr. Young had been hammered in the head at least 26 times. Some of those blows were after the black plastic bag had been placed on Mr. Young’s head. Further, according to the government’s evidence, DNA evidence of Mr. Wingfield’s blood was found in various locations in Neal’s bedroom. Also, Neal told detectives that he left a pair of socks on Mr. Young’s body. However, Mr. Young was not discovered with socks. It was Mr. Wingfield’s body that had on a pair of socks.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences; the FBI’s Cellular Analysis Survey Team; the FBI’s DNA Casework Unit; the District of Columbia Office of the Chief Medical Examiner; Bode Cellmark Forensics, and the New Smyrna Beach Police Department of New Smyrna Beach, Fla.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Sharon Donovan, Deputy Chief of the Homicide Section; Chrisellen Kolb, Deputy Chief of the Appellate Division; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Litigation Technology Specialist Leif Hickling; Paralegal Specialist Kelly Blakeney; former Paralegal Specialists Fern Rhedrick, Amoret Vanterpool, and Vanessa Trent-Valentine; Marcia Rinker, David Foster, LaJune Thames, and Katina Adams-Washington, all of the Victim/Witness Assistance Unit; Criminal Investigators John Marsh, Durand Odom, and Zachary McMenamin; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie, Contract Specialist Sallie Rynas; Interns Hayley Poindexter and Simone Unwalla, and former intern Benjamin Symons.
Finally, they commended the work of Assistant U.S. Attorneys Shana L. Fulton and Veronica Sanchez, who investigated and prosecuted the case.
Decatur Man Pleads Guilty to Hobbs Act Robbery, Conspiracy, and Firearms ChargesRead the Press Release
SPRINGFIELD, Ill. – Sentencing has been scheduled on Mar. 5, 2018, for Matthew J. Higgins-Vogt, 25, of Decatur, Ill., who today pled guilty to his role in the April 2015, armed robbery of the Circle K convenience store and murder of 19-year-old Paige Mars, also of Decatur.
In court today, Higgins-Vogt admitted that on April 3, 2015, he and Kelton Snyder robbed the Circle K convenience store at 1685 S. Baltimore in Decatur, and took money, including the contents of the cash register, and alcohol, while Snyder brandished a 12-gauge shotgun. In furtherance of the conspiracy to commit the armed robbery of the convenience store, Higgins-Vogt admitted that he shot and killed Paige Mars on April 5, 2015, because he and Snyder did not want Mars to alert law enforcement about the robbery. Mars drove the two men to the convenience store, waited in the car while they committed the robbery, and then drove them away.
The case is being prosecuted in federal court by Assistant U.S. Attorney Jason Bohm. The Decatur Police Department and FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Macon County Sheriff’s Office.
Higgins-Vogt has been in the custody of the U.S. Marshals Service since his initial appearance in federal court on Feb. 17, 2017. Higgins-Vogt was previously in the custody of the Macon County Sheriff’s Office since his arrest on state charges on April 8, 2015.
At sentencing, the penalty for brandishing a firearm during a crime of violence is a mandatory seven years to life to be served consecutive to any sentence imposed for the crime of violence. The statutory sentence for Hobbs Act robbery and conspiracy to commit Hobbs Act robbery, is up to 20 years in prison. For felon in possession of a firearm, the penalty is up to 10 years in prison.
A jury convicted co-conspirator Kelton Snyder in April 2016. On Oct. 24, 2016, Snyder was sentenced to life in federal prison.
Connecticut Man Pleads Guilty to Participating in Multimillion-Dollar Ponzi SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that STEVEN SIMMONS pled guilty in Manhattan federal court today to conspiring to commit securities fraud and wire fraud. Between 2013 and January 2017, SIMMONS solicited more than $6 million in investments for a hedge fund (the “Hedge Fund”). SIMMONS, however, misappropriated some of these funds for his own use and knew that the Hedge Fund used the remainder of the funds to pay back prior investors, as part of a Ponzi-like scheme. SIMMONS pled guilty earlier today before U.S. Magistrate Judge Barbara Moses.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Steven Simmons engaged in one of the oldest frauds in the book: using investor funds to pay back earlier investors, all while skimming funds off the top for his own personal use. When investors demanded the returns promised to them, they learned that the entire investment was just a scam. Now Simmons, who admitted his guilt in court today, will answer for his crimes.”
According to allegations in the superseding Indictment filed in Manhattan federal court, previous court filings, and statements made in public court proceedings:
Between 2013 and January 2017, SIMMONS solicited investments by falsely representing to investors that their funds would be used by the Hedge Fund for legitimate, specified investment purposes, that they would receive specific rates of return, and that their investments would not be placed at risk or commingled with other funds. In fact, SIMMONS failed to invest the investor monies as promised, but, instead, diverted investor funds for his own use and also, together with others, used the money in a Ponzi-like fashion to fund the repayment of earlier investors in the Hedge Fund whose redemption requests could not be forestalled.
Among other false and misleading statements, SIMMONS told one investor (“Victim Entity-1”) that its funds would be placed by the Hedge Fund with a highly successful group of portfolio managers and provided performance information for these portfolio managers. In truth and in fact, SIMMONS solicited those investment funds from Victim Entity-1 for the purpose of repaying an earlier investor in the Hedge Fund which had demanded the return of its investment. Most of Victim Entity-1’s funds were, within minutes of their receipt by the Hedge Fund, wired to the earlier investor. The following day, $50,000 was wired by the Hedge Fund to an account controlled by SIMMONS. In a later consensually recorded conversation with a cooperating witness (the “CW”), SIMMONS expressed concern that Victim Entity-1 would contact the portfolio managers with whom it believed its funds were invested and learn that “there’s no . . . money.” As part of the fraudulent scheme, Simmons also created and provided investors with false monthly statements.
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SIMMONS, 48, of Wilton, Connecticut, pled guilty to one count of conspiracy to commit securities fraud and wire fraud. The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. In addition, pursuant to a plea agreement with the Government, SIMMONS agreed to forfeit $6,900,000.
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. SIMMONS will be sentenced at a date set by the Court.
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.
Conneaut Lake Man Sentenced to 7 Years in Prison for Possessing and Distributing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Conneaut Lake, Pennsylvania, has been sentenced in federal court to 84 months in jail, 10 years supervised release, and ordered to make restitution in the amount of $1,000 on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on John P. Hoffman, 49, of Conneaut Lake, Pennsylvania.
According to information presented to the court, Hoffman possessed and distributed computer images depicting minors engaging in sexually explicit conduct.
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.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Hoffman.
Columbia Men Plead to Federal Heroin ConspiracyRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated that Michael Glover, a/k/a “Glove,” a/k/a “G,” a/k/a “HG,” age 47, and Jihad Salahadeen Pollard, age 43, both formerly of Columbia, South Carolina, pled guilty today in federal court. Glover and Pollard each plead guilty to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Glover also plead guilty to a money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). Senior United States District Judge Joseph F. Anderson, Jr., of Columbia, accepted the pleas and will impose sentence after he has reviewed the presentence investigation reports, which will be prepared by the U.S. Probation Office.
Glover and Pollard were two of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. The investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that the suppliers were initially getting the heroin in packages from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later obtained heroin in New York and transported it back to Columbia where it was distributed. The New York heroin suppliers were charged and convicted in the Eastern District of New York for their role in the heroin conspiracy.
Glover and Pollard were fugitives until their arrests this past summer in Texas, where they were residing under false identities. Six of their co-defendants were arrested in 2014 and plead guilty to their role in the drug conspiracy here in South Carolina and were sentenced in 2015 as follows: Eric Shawn Bradley, a/k/a “E,” age 50, of Columbia, was sentenced to 210 months imprisonment with 8 years of supervised release; Kenneth Crawford, age 44, of Washington, D.C., and formerly of Columbia, was sentenced to 120 months imprisonment with 8 years of supervised release; Charles Bradley, age 35, of Columbia was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Glover, age 43, of Columbia was sentenced to 120 months imprisonment with 8 years of supervised release to follow; Larry Bookman, age 64, of Columbia was sentenced to 70 months imprisonment with 6 years of supervised release; and Jessany Lyons, age 27, of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release. Two other co-defendants charged in the indictment remain fugitives and are innocent until and unless proven guilty.
Drake stated that on the drug conspiracy charge, Glover faces a statutory mandatory minimum of 10 years imprisonment with a maximum of life, a fine of $8,000,000, a special assessment of $100, and a term of supervised release of at least 8 years in addition to any term of imprisonment. Glover faces an enhanced sentence based upon his two prior felony drug convictions. Glover has North Carolina convictions for possession with intent to distribute marijuana (1993) and possession with intent to sale/deliver of cocaine (1994). On the money laundering conspiracy charge, Glover faces a maximum term of imprisonment of 20 years, a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater, a term of supervised release of not more than 3 years, and a special assessment of $100. On the drug conspiracy charge, Pollard faces a statutory mandatory minimum of 5 years imprisonment with a maximum of 40 years, a fine of $5,000,000, a special assessment of $100, and a term of supervised release of at least 4 years in addition to any term of imprisonment
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which is comprised of agents and officers from the DEA, ICE - Homeland Security Investigations, United States Secret Service, Federal Bureau of Investigation, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Department, and the Fifth Circuit Solicitor’s Office. Assistant United States Attorney Stacey D. Haynes of the Columbia United States Attorney’s Office prosecuted the case.
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Church Employee Charged with ArsonRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a church maintenance worker was charged in federal court today with arson after setting a fire at Concord Cultural Center and spray-painting racist graffiti on the front of the adjoining church, Concord Fortress of Hope, in an effort to cover up his burglary.
Nathaniel D. Nelson, 48, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Nelson remains in federal custody pending a detention hearing.
Nelson was a member of the church who was employed as a maintenance worker at the church and cultural center, located at 11040 W. Longview Parkway, Kansas City, Mo. Firefighters were called by a church employee and responded to the cultural center on Sunday morning, Oct. 29, 2017. A fire had occurred in an office inside the building but a sprinkler had activated and extinguished the fire prior to the arrival of firefighters. Investigators concluded that an office chair and other ordinary combustible material had been intentionally ignited using an open flame.
Investigators also discovered racist graffiti spray-painted on the front of the church. A racial slur, the letters “KKK” and a symbol similar to a swastika were visible from the main entrance into the parking lot as members of the congregation arrived for church for Sunday morning services.
The digital video recorder for the video surveillance system that monitored the foyer area and the cultural center’s interior and exterior cameras was unplugged and no longer recording when examined by investigators. Investigators determined that the DVR system lost power sometime after 1 a.m. Sunday, Oct. 29, 2017, and had been intentionally unplugged.
According to an affidavit filed in support of the federal criminal complaint, a review of the DVR system revealed that Nelson was in the foyer area shortly before the DVR system was deactivated. A second DVR, which was still powered on, recorded the video surveillance footage for the interior and exterior cameras located inside and outside of the church, which were separate from the cameras located in the cultural center and foyer. The second DVR, the affidavit says, captured video footage of Nelson spray painting the front of the church. KCPD Deputy Chief Karl Oakman, a member of the church, identified Nelson from the video surveillance footage.
Investigators then interviewed Nelson. According to the affidavit, Nelson told investigators that he went to his office in the cultural center to smoke crack cocaine sometime after 8 p.m. Saturday, Oct. 28, 2017. At some point after getting high, Nelson said he went into the church office area and attempted to force his way into the finance office to steal money. (The finance office was the only room in the church and cultural center he did not have keyed access.) Nelson wasn’t able to break into the finance room so he proceeded into two adjacent offices using his key and took $140 from one office and $94 from another office. Nelson told investigators that he then left the church to purchase more crack cocaine.
Nelson stated that after he purchased four crack rocks for approximately $125, he returned to the church to get high a second time. After Nelson smoked the crack cocaine in his office, he said, he retrieved a pair of bolt cutters, a wrench and a drill bit and attempted to break into the vending machines located in the gymnasium of the cultural center. Nelson said he was only able to steal $2 from the vending machines.
Nelson told investigators that at some point after breaking into the vending machines he left the church to purchase additional crack cocaine from the same source. Nelson told investigators that after he purchased approximately four additional crack rocks he again returned back to the church to get high. Nelson said he only paid $75 for the additional crack cocaine with the promise that he would provide his source $200 in food stamps at a later time.
During the interview, the affidavit says, Nelson admitted to investigators that he intentionally unplugged one DVR system but did not know that video was being recorded on a separate system inside the church, which captured him spray-painting the outside of the building.
According to the affidavit, Nelson told investigators that he intentionally set a fire inside the office area of the cultural center using clothing and paper towels that he had laid on or next to an office chair. Nelson also told investigators he spray-painted the front of the church with inflammatory graffiti and intentionally set the fire to create a diversion and throw investigators off.
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 Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Chinese Man Sentenced for Illegally Shipping SnakesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Chaoyi Le, 28, of Shanghai, China, who was convicted of Lacey Act False Labeling, was sentenced to time served and fined $5,000 by Chief U.S. District Judge Frank P. Geraci, Jr. The defendant was also ordered to pay restitution totaling $3,518.75 to the U.S. Fish and Wildlife Service.
Assistant U.S. Attorneys Aaron J. Mango, Craig R. Gestring, and Melissa M. Marangola, who handled the case, stated that on April 22, 2014, the defendant sent seven ball pythons from Amherst, NY, to Shanghai, China through the U.S. Mail using the fictitious name “Ben Fan.” Le submitted a form falsely declaring that the package contained “Belts, Candy and Chocolate” with a value of $80. At the time the package was shipped, the ball pythons had an approximate value of $3,300.
The package was recovered by the United States Fish and Wildlife Service (USFWS), and inspected on May 3, 2014. In addition to the seven live ball pythons, the package also contained cloth bags typically used to hold snakes, hand warmers which are typically used in shipping reptiles, and insulation material. Written on one of the cloth bags were trade names for ball pythons: “Enchi Ghost,” “Pastel Enchi Ghost,” and “Butter Enchi,” all common trade names for ball pythons color morphs. After discovering the pythons, the USFWS contracted with a wildlife expert to care temporarily for the pythons.
Le was stopped by Canadian border officials attempting to enter Canada on April 22, 2014, at which time three live albino western hog-nosed snakes were found hidden in his socks. The total value of the hog-nosed snakes was approximately $500.
“As a result of this prosecution, those who engage in the black market trafficking of wildlife and exotic animals should consider themselves warned that they will not be permitted to slither out of responsibility for their wrongdoing,” said Acting U.S. Attorney James P. Kennedy, Jr. “Working with our law enforcement partners both at home and abroad, we will vigorously enforce those laws which seek to protect all forms of wildlife from those who threaten them through their illicit trafficking activities."
“As this investigation shows, wildlife trafficking has no boundaries,” said Ed Grace, Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service. “International wildlife trafficking requires law enforcement across the globe to work together to catch and prosecute those who profit at the expense of imperiled wildlife. I would like to congratulate our special agents, and Canadian counterparts, who exposed a complicated transnational reptile smuggling scheme and brought this man to justice.”
The sentencing is the result of an investigation by the U.S. Fish and Wildlife Service, under the direction of Honora Gordon, Special Agent-in-Charge, Northeast Region; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and Investigators with Environment and Climate Change Canada, Wildlife Enforcement Division.
Chemed Corp. and Vitas Hospice Services Agree to Pay $75 Million to Resolve False Claims Act Allegations Relating to Billing for Ineligible Patients and Inflated Levels of CareRead the Press Release
Chemed Corporation and various wholly-owned subsidiaries, including Vitas Hospice Services LLC and Vitas Healthcare Corporation, have agreed to pay $75 million to resolve a government lawsuit alleging that defendants violated the False Claims Act (FCA) by submitting false claims for hospice services to Medicare. Chemed, which is based in Cincinnati, Ohio, acquired Vitas in 2004. Vitas is the largest for-profit hospice chain in the United States.
“Today’s resolution represents the largest amount ever recovered under the False Claims Act from a provider of hospice services,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Medicare’s hospice benefit provides critical services to some of the most vulnerable Medicare patients, and the Department will continue to ensure that this valuable benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations that between 2002 and 2013 Vitas knowingly submitted or caused to be submitted false claims to Medicare for services to hospice patients who were not terminally ill. Medicare’s hospice benefit is available for patients who elect palliative treatment (medical care focused on the patient’s relief from pain and stress) for a terminal illness and have a life expectancy of six months or less if their disease runs its normal course. Patients who elect the hospice benefit forgo the right to curative care (medical care focused on treating the patient’s illness). The government’s complaint alleged that Vitas billed for patients who were not terminally ill and thus did not qualify for the hospice benefit. The government alleged that the defendants rewarded employees with bonuses for the number of patients receiving hospice services, without regard to whether they were actually terminally ill and whether they would have benefited from continuing curative care.
The settlement also resolves allegations that between 2002 and 2013, Vitas knowingly submitted or caused to be submitted false claims to Medicare for continuous home care services that were not necessary, not actually provided, or not performed in accordance with Medicare requirements. Under the Medicare hospice benefit, providers may be reimbursed for four different levels of care, including continuous home care services. Continuous home care services are only for patients who are experiencing acute medical symptoms causing a brief period of crisis. The reimbursement rate for continuous home care services is the highest daily rate that Medicare pays, and hospices are paid hundreds of dollars more on a daily basis for each patient they certify as having received continuous home care services rather than routine hospice services. According to the complaint, the defendants set goals for the number of continuous home care days billed to Medicare and used aggressive marketing tactics and pressured staff to increase the volume of continuous home care claims, without regard to whether the patients actually required this level of crisis care.
“This litigation and settlement demonstrate the commitment of the U.S. Attorney’s Office to investigate and pursue hospice providers engaging in practices that abuse the Medicare hospice benefit,” said Acting U.S. Attorney Thomas M. Larson of the Western District of Missouri. “The integrity of the Medicare program must not be compromised by a hospice provider’s financial self-interest.”
Vitas also entered into a five-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) to settle the agency’s administrative claims.
Steve Hanson, Special Agent in Charge, for the U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “Healthcare providers who knowingly overbill our programs simply to increase their profits need to be put on notice that such conduct will not be tolerated, and we will pursue any and all remedies at our disposal to protect the tax payer and the Medicare and Medicaid programs.”
In addition to resolving the lawsuit filed by the United States, the settlement resolves three lawsuits filed under the whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene in such a lawsuit, as it did in the three whistleblower cases filed against the defendants. These cases were subsequently transferred to the Western District of Missouri and consolidated with the government’s pending action. The amount to be recovered by the private whistleblowers has not yet been determined.
The settlement was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Western District of Missouri, with assistance from the U.S. Attorneys’ Offices for the Central District of California and the Northern District of Texas and the Department of Health and Human Services Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
The civil lawsuits are: United States v. Vitas Hospice Services, LLC, et al., Civil Action No. 13-00449 (W.D. Mo.); United States ex rel. Laura Spottiswood v. Chemed Corporation, et al., Civil Action No. 13-505 (W.D. Mo.), transferred from the United States District Court for the Northern District of Illinois; United States ex rel. Barbara Urick v. VITAS HME Solutions, Inc., et al., Civil Action No. 13-536 (W.D. Mo.), transferred from the United States District Court for the Western District of Texas; and United States ex rel. Charles Gonzales v. VITAS Healthcare Corporation, et al., Civil Action No. 13-00344 (W.D. Mo.), transferred from the United States District Court for the Central District of California.
Chemed Corp. and Vitas Hospice Services Agree to Pay $75 Million to Resolve False Claims Act Allegations Relating to Billing for Ineligible Patients and Inflated Levels of CareRead the Press Release
Chemed Corporation and various wholly-owned subsidiaries, including Vitas Hospice Services LLC and Vitas Healthcare Corporation, have agreed to pay $75 million to resolve a government lawsuit alleging that defendants violated the False Claims Act (FCA) by submitting false claims for hospice services to Medicare. Chemed, which is based in Cincinnati, Ohio, acquired Vitas in 2004. Vitas is the largest for-profit hospice chain in the United States.
“Today’s resolution represents the largest amount ever recovered under the False Claims Act from a provider of hospice services,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Medicare’s hospice benefit provides critical services to some of the most vulnerable Medicare patients, and the Department will continue to ensure that this valuable benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations that between 2002 and 2013 Vitas knowingly submitted or caused to be submitted false claims to Medicare for services to hospice patients who were not terminally ill. Medicare’s hospice benefit is available for patients who elect palliative treatment (medical care focused on the patient’s relief from pain and stress) for a terminal illness and have a life expectancy of six months or less if their disease runs its normal course. Patients who elect the hospice benefit forgo the right to curative care (medical care focused on treating the patient’s illness). The government’s complaint alleged that Vitas billed for patients who were not terminally ill and thus did not qualify for the hospice benefit. The government alleged that the defendants rewarded employees with bonuses for the number of patients receiving hospice services, without regard to whether they were actually terminally ill and whether they would have benefited from continuing curative care.
The settlement also resolves allegations that between 2002 and 2013, Vitas knowingly submitted or caused to be submitted false claims to Medicare for continuous home care services that were not necessary, not actually provided, or not performed in accordance with Medicare requirements. Under the Medicare hospice benefit, providers may be reimbursed for four different levels of care, including continuous home care services. Continuous home care services are only for patients who are experiencing acute medical symptoms causing a brief period of crisis. The reimbursement rate for continuous home care services is the highest daily rate that Medicare pays, and hospices are paid hundreds of dollars more on a daily basis for each patient they certify as having received continuous home care services rather than routine hospice services. According to the complaint, the defendants set goals for the number of continuous home care days billed to Medicare and used aggressive marketing tactics and pressured staff to increase the volume of continuous home care claims, without regard to whether the patients actually required this level of crisis care.
“This litigation and settlement demonstrate the commitment of the U.S. Attorney’s Office to investigate and pursue hospice providers engaging in practices that abuse the Medicare hospice benefit,” said Acting U.S. Attorney Thomas M. Larson of the Western District of Missouri. “The integrity of the Medicare program must not be compromised by a hospice provider’s financial self-interest.”
Vitas also entered into a five-year Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) to settle the agency’s administrative claims.
Steve Hanson, Special Agent in Charge, for the U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “Healthcare providers who knowingly overbill our programs simply to increase their profits need to be put on notice that such conduct will not be tolerated, and we will pursue any and all remedies at our disposal to protect the tax payer and the Medicare and Medicaid programs.”
In addition to resolving the lawsuit filed by the United States, the settlement resolves three lawsuits filed under the whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene in such a lawsuit, as it did in the three whistleblower cases filed against the defendants. These cases were subsequently transferred to the Western District of Missouri and consolidated with the government’s pending action. The amount to be recovered by the private whistleblowers has not yet been determined.
The settlement was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Western District of Missouri, with assistance from the U.S. Attorneys’ Offices for the Central District of California and the Northern District of Texas and the Department of Health and Human Services Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
The civil lawsuits are: United States v. Vitas Hospice Services, LLC, et al., Civil Action No. 13-00449 (W.D. Mo.); United States ex rel. Laura Spottiswood v. Chemed Corporation, et al., Civil Action No. 13-505 (W.D. Mo.), transferred from the United States District Court for the Northern District of Illinois; United States ex rel. Barbara Urick v. VITAS HME Solutions, Inc., et al., Civil Action No. 13-536 (W.D. Mo.), transferred from the United States District Court for the Western District of Texas; and United States ex rel. Charles Gonzales v. VITAS Healthcare Corporation, et al., Civil Action No. 13-00344 (W.D. Mo.), transferred from the United States District Court for the Central District of California.
Cape Cod Woman Pleads Guilty to Role in Heroin SchemeRead the Press Release
BOSTON – A Hyannis woman pleaded guilty today in federal court in Boston to her role in a widespread Cape Cod heroin scheme run by the Nauti-Block Gang.
Bethanne Hutchings, 51, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin - aiding and abetting and one count of maintaining a place for drug purposes. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Jan. 30, 2018.
On April 5, 2016, following a nearly eight-month investigation, 13 members of the Cape Cod-based Nauti-Block gang, led by Denzel Chisholm, were arrested on federal drug trafficking and firearms charges. Two subsequent superseding indictments brought the total number of defendants charged in the case to 19.
Hutchings is the 19th and final defendant to be convicted of, or plead guilty to, the various drug distribution and conspiracy charges related to the investigation. 17 defendants pleaded guilty while two – Molly London and Denzel Chisholm – were convicted by a federal jury. Hutchings, like London, allowed members of the conspiracy, including Christopher Wilkins and Chisholm, to store large quantities of heroin at her home for further distribution.
In September 2017, Chisholm, Wilkins, and London were sentenced to 28.5 years in prison, nine years in prison, and 20 months in prison, respectively.
The charge of aiding and abetting the conspiracy to possess heroin with the intent to distribute provides 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 up to $1 million. The charge of maintaining a premises for drug purposes provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $500,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Criminal Division are prosecuting the case.
Cambridge, Massachusetts, Man Pleads Guilty in Manhattan Federal Court to Insider TradingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that FEI YAN, who works as a post-doctoral associate at a major research university in Cambridge, Massachusetts, pled guilty in Manhattan federal court to insider trading. In December 2016, YAN made approximately $110,000 in connection with trading in options to buy the stock of Stillwater Mining Company, based on misappropriated material nonpublic information. YAN pled guilty earlier today before U.S. District Judge Katherine B. Forrest.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted in Manhattan federal court today, Fei Yan made options trades based on inside information to net over $100,000 in illegal profits. Yan got the information from his spouse, whose position at an international law firm gave her access to confidential mergers and acquisitions secrets. Now Yan awaits sentencing before a federal judge for his crimes.”
According to the Indictment filed in Manhattan federal court, previous court filings, and statements made in public court proceedings:
YAN’s spouse (“Spouse-1”) worked at the New York office of an international law firm (the “Law Firm”). In the summer of 2016, the Law Firm was retained by a mining company (the “Mining Company”) to represent it in negotiations to acquire Stillwater Mining Company (“Stillwater Mining”), a publicly traded company whose shares are traded on the New York Stock Exchange under the symbol “SWC.” On or about August 25, 2016, in connection with Spouse-1’s work at the Law Firm, Spouse-1 learned of the negotiations between the Mining Company and Stillwater Mining and continued to work on the transaction through December 9, 2016, when it was publicly announced for the first time that the Mining Company would be acquiring Stillwater Mining. While working on the transaction during the fall of 2016, Spouse-1 had access to material, non-public information regarding the potential acquisition.
The Law Firm required its employees, including Spouse-1, to abide by a confidentiality policy, which prohibited disclosure of “information received from and about . . . clients . . . [and] other parties involved in transactions with clients.” YAN and Spouse-1 had a history, pattern, and practice of sharing confidences.
In early and mid-November 2016, Spouse-1 billed dozens of hours working on the potential merger between the Mining Company and Stillwater Mining, and YAN and Spouse-1 were in frequent phone contact. During this period, YAN conducted Internet searches for “yahoo swc” and “stillwater merger,” even though the Mining Company’s potential acquisition of Stillwater Mining had not yet been publicly announced.
On November 22, 2016, Spouse-1 participated in a call at the Law Firm regarding the potential acquisition. That same day, YAN, using a brokerage account he had previously set up in his mother’s name, bought 71 options to buy Stillwater Mining stock. The next day, there were two phone calls between a phone used by YAN and a phone used by Spouse-1. After these calls, YAN bought an additional 200 options to buy Stillwater Mining stock.
Negotiations between the Mining Company, represented by the Law Firm, and Stillwater Mining continued to progress, and Spouse-1 continued to work on the transaction. On December 1, 2016, after a 78-minute phone call with Sposue-1 the night before, YAN purchased an additional 100 Stillwater Mining options.
The following day, YAN conducted multiple Internet searches and research related to mergers and acquisitions, including searches for “process of acquisition” and “company acquisition process.” Several minutes after conducting these searches, YAN called Spouse-1.
YAN and Spouse-1 also spoke on the phone multiple times on the night of December 5 and the early morning hours of December 6. Later on the morning of December 6, YAN bought an additional 341 options to buy Stillwater Mining stock. Later that day, YAN conducted internet research related to insider trading. For example, YAN searched for “how sec detect unusual trade” and accessed at least three articles on financial websites related to insider trading. YAN also searched for the name of an individual who was charged in this District in May 2016 with insider trading.
The next day, shortly after speaking with Spouse-1 on the phone for approximately 30 minutes, YAN conducted an Internet search for “insider trading with international account” and, shortly thereafter, viewed articles entitled “U.S. Insider Trading Enforcement Goes Global” and “Want to Commit Insider Trading? Here’s How Not to Do It.” The following day, YAN bought an additional 54 options to buy Stillwater Mining stock.
Early on the morning of December 9, 2016, it was publicly announced that the Mining Company would acquire Stillwater Mining for $18 per share. Beginning at approximately 9:33 a.m. Eastern time, minutes after the open of regular market trading. YAN sold the Stillwater Mining options he had previously purchased, resulting in a profit of approximately $109,420. Also that day, YAN conducted Internet searches for “insider trading cases,” and “insider trading options.”
* * *
YAN pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. In addition, pursuant to a plea agreement with the Government, YAN agreed to forfeit $119,428.50, representing the amount of proceeds obtained as a result of trading in Stillwater Mining and related relevant conduct.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
YAN is scheduled to be sentenced by Judge Forrest on March 2, 2018, at 3:00 p.m.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation (“FBI”) and thanked the SEC, which has filed civil charges in a separate action. Mr. Kim also thanked the FBI’s Boston Office and the U.S. Attorney’s Office for the District of Massachusetts for their assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Brendan F. Quigley is in charge of the prosecution.
California Man Sentenced for Developing Malware and Infecting ComputersRead the Press Release
PITTSBURGH - A resident of Santa Clara, California, has been sentenced in federal court to 24 months’ probation on his conviction of accessing a protected computer without authorization and initiating spam messages, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Sean Tiernan, age 29, of Santa Clara California.
According to information presented to the court, Tiernan, from his computer located in California, was involved in the development of malware, or a malicious computer program, which was programmed to infect computers at a rapid rate by spreading through the computer users’ use of social networking websites. Once a computer was infected with the malware, the malware was programmed by Tiernan to automatically communicate and receive direction from servers over the Internet which were controlled by Tiernan, without knowledge of the infected computers’ owners. The servers which the infected computers called back to were, in and of themselves, previously ‘hacked’, and were also being used without the knowledge of their legitimate owners. The combination of these hacked servers and malware-infected computers formed what is known as a "botnet”. This botnet was controlled by Tiernan and was used to transform the infected victims’ computers into proxy computers from which a high volume of spam (commercial electronic mail) messages could be sent over the Internet to other computers. Since on or about at least August 1, 2011, Tiernan would sell access to his botnet to those who sought to send out these commercial electronic email messages for their own personal commercial gain. At the time of the search of Tiernan's residence and computer via a search warrant on or about October 1, 2012, over 77,000 bots, or infected computers, were active in Tiernan's botnet. Each of these computers, along with the hacked servers used to control them, necessarily were “protected” computers because they were accessed over the Internet in order to be compromised without the owners’ consent. Several of these infected computers in Tiernan's botnet were located in the Western District of Pennsylvania.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Tiernan.
Attorney General Jeff Sessions Delivers Statement on the Apprehension of Mustafa Al-Imam for His Role in 2012 Attack in Benghazi, LibyaRead the Press Release
Attorney General Jeff Sessions released the following statement regarding the arrest of Mustafa al-Imam for his role in the September 2012 attack on U.S. facilities in Benghazi, Libya:
“The murder of four Americans in Benghazi on September 11, 2012 was a barbaric crime that shocked the American people. We will never forget those we lost – Tyrone Woods, Sean Smith, Glen Doherty, and Ambassador Christopher Stevens – four brave Americans who gave their lives in service to our nation. We owe it to them and their families to bring their murderers to justice. Today the Department of Justice announces a major step forward in our ongoing investigation as Mustafa al-Imam is now in custody and will face justice in federal court for his role in the attack. I am grateful to the FBI, our partners in the intelligence community, and the Department of Defense who made this apprehension possible. The United States will continue to investigate and identify all those who were involved in the attack – and we will hold them accountable for their crimes.”
Arlington Man Sentenced for Soliciting Minor Child through Social MediaRead the Press Release
Memphis, TN – An Arlington man has been sentenced to federal prison for soliciting a minor child through social media. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, between June and September 2016, Matthew Marr used the internet to meet and seduce a fourteen-year old girl. Marr first met the child through a social media app. Although she told him that she was only fourteen, Marr quickly convinced her that he would be her boyfriend. Marr convinced the girl to take photographs of her genitals and send the pictures to him using another social media site. Ultimately, Marr met the girl in person and engaged in sexual intercourse.
This case was brought as part of Project Safe Childhood (PSC), 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
On October 30, 2017, U.S. District Judge John T. Fowlkes Jr., sentenced Marr to 188 months imprisonment and 10 years supervised release following his incarceration.
For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.
The Bartlett Police Department and FBI Memphis Child Exploitation Task Force investigated the case. Assistant U.S. Attorney Deb Ireland prosecuted the case on the government’s behalf.
Arizona Couple Sentenced for Drug Reshipping SchemeRead the Press Release
PITTSBURGH – Two residents of Arizona have been sentenced in federal court on their conviction of mail fraud, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Sylvia Navarro Cruz, 44 and Miguel Cruz, 45, of Queen Creek, Arizona. Sylvia Cruz received a sentence of six months incarceration and three years supervised release, of which the first six months she will be on home detention with electronic monitoring. Manuel Cruz received a sentence of time served.
According to information presented to the court, on June 23, 2014, Sylvia Cruz and Miguel Cruz received and reshipped Schedule II and IV controlled substances and erectile dysfunction drugs, which were exported from India, to U.S. consumers who had ordered them through a Costa Rican website.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Food and Drug Administration, Office of Criminal Investigations, the U.S. Postal Inspection Service, Homeland Security Investigations, the Pennsylvania State Police and the Internal Revenue Service - Criminal Investigation for the investigation leading to the successful prosecution of Sylvia and Manuel Cruz.
Alabama Man Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Ralonte Terrell Swain, 25, of Jasper, Ala., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Swain entered the guilty plea under a plea agreement that recommends a sentence of a five-year term of imprisonment.
The DEA arrested Swain in June 2017, after seizing approximately 244.20 grams (.54 pounds) of crystal methamphetamine from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The criminal complaint setting forth the charge against Swain indicated that the crystal methamphetamine was contained in a clear plastic, oblong shaped bundle concealed inside of a travel neck-type pillow.
Swain subsequently was indicted on June 28, 2017, and was charged with possession of methamphetamine with intent to distribute on June 5, 2017, in Bernalillo County, N.M.
During today’s change of plea hearing, Swain pled guilty to the indictment and admitted that on June 5, 2017, he possessed approximately 244.40 grams of methamphetamine that was concealed inside of a travel neck pillow while traveling through Albuquerque. Swain further admitted that he intended to deliver the methamphetamine to another individual for further distribution when he reached his intended destination. Swain remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Acting Manhattan U.S. Attorney and FBI Assistant Director Announce Insider Trading Charges Against Managing Director of Private Equity FundRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Danny Kennedy, the Acting Assistant Director-in-Charge of the Los Angeles Field Office of the Federal Bureau of Investigation (“FBI”), announced the indictment today of BENJAMIN CHOW, a/k/a “Ben Chow Zhou Bin,” a/k/a “Benjamin Bin Chow,” a/k/a “Bin Zhou,” for conspiracy to commit securities fraud and securities fraud in connection with a $5 million insider trading scheme relating to the securities of Lattice Semiconductor Corporation (“Lattice”). The case is assigned to U.S. District Judge Gregory H. Woods.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Benjamin Chow tipped his friend about a potential acquisition of Lattice Semiconductor Corporation by private equity firms he managed, including one based in China. Chow’s illegal tips resulted in multimillion-dollar profits for his friend and business associate. This type of alleged illegal tipping is not only illegal, but erodes public confidence in our markets. Protecting the integrity of our financial markets remains a top priority of this Office.”
FBI Assistant Director-in-Charge Danny Kennedy said: “Mr. Chow misused his position of trust to undermine the integrity of the market. The FBI and our partners are committed to fairness in the marketplace by holding accountable those who threaten legitimate exchanges by trading on proprietary knowledge.”
According to the allegations in the Indictment filed in Manhattan federal court:[1]
From approximately March to November 2016, CHOW provided a friend and business associate (“CC-1”) with material nonpublic information relating to a potential merger between Lattice and private equity firms managed by CHOW, one based in Beijing, China (“Firm-1”) and one based in Palo Alto, California (“Firm-2”). CC-1 in turn used such information to make millions of dollars in profitable securities trades through accounts opened in the names of family members and associates of CC-1.
Specifically, as Managing Director of Firm-1 and later Managing Partner of Firm-2, CHOW obtained material nonpublic information regarding potential merger agreements between Lattice and Firm-1, and later, Firm-2. Information concerning the potential merger agreements was subject, among other things, to nondisclosure agreements executed between Lattice and Firm-1, and subsequently between Lattice and Firm-2.
In violation of these agreements, and in breach of his duties, CHOW provided CC-1 with material nonpublic information regarding the potential mergers between Lattice and Firm-1 and Lattice and Firm-2, through in-person meetings, voice messages, and text exchanges. On multiple occasions, CC-1 made profitable trades in Lattice shortly after receiving the material nonpublic information from CHOW, yielding a total of at least approximately $5 million in profits for CC-1.
* * *
CHOW, 46, of Los Angeles, California, is charged with one count of conspiring to commit securities fraud, which carries a maximum prison sentence of five years in prison, and 13 counts of securities fraud, which carry maximum sentences of between 20 and 25 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the exceptional 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 United States Attorneys Amanda Kramer and Elisha Kobre are in charge of the prosecution.
The allegations contained in the Indictment and Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment – and the description of the Indictment set forth herein – constitute only allegations, and every fact described should be treated as an allegation.
27 October 2017
Valparaiso Man Sentenced to 78 Months for Possession of Child PornographyRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Martin Knight, age 38, of Valparaiso, Indiana was sentenced to 78 months imprisonment and 5 years of supervised release for one count of possessing child pornography by District Court Judge Philip Simon.
According to documents in this case, between 2000 to 2012, Knight collected and possessed over 17,000 images and 300 videos depicting children engaging in sexually explicit conduct. Knight entered a plea of guilty on August 1, 2017.
This case is the result of the investigative efforts of the Federal Bureau of Investigation and Indiana State Police. This case was prosecuted by Assistant United States Attorney Abizer Zanzi.
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Uzbek Citizen Sentenced to 15 Years for Conspiring to Provide Material Support to TerroristsRead the Press Release
Abdurasul Hasanovich Juraboev, 27, a citizen of Uzbekistan and resident of Brooklyn, New York, was sentenced to 15 years in prison for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Dana Boente, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement, after sentencing by U.S. District Judge William F. Kuntz, II.
“The defendant had a clear desire to wage violence on behalf of ISIS, and was determined to do so, whether on U.S. soil or abroad,” said Acting Assistant Attorney General Boente. “Thanks to the efforts of law enforcement, the defendant was stopped at JFK International Airport before his plans came to fruition, and with this sentence he will be held accountable. Stemming the flow of foreign fighters and defending our nation against the threat of terrorism remains the highest priority of the National Security Division.”
“Today’s sentence holds Juraboev to account for his plans to join ISIS and engage in violent jihad overseas or carry out a terrorist attack in the United States if he was unable to travel to Syria,” stated Acting U.S. Attorney Rohde. “This Office will continue to work tirelessly in collaboration with the FBI’s Joint Terrorism Task Force in New York to protect our city from terrorist attacks and prevent extremists from travelling abroad to join foreign terrorist organizations.”
“As a Brooklyn resident, Abdurasul Hasanovich Juraboev posted comments on an ISIS website in August 2014 about his desire to be a martyr and his willingness to kill President Obama,” stated Assistant Director in Charge Sweeney. “Over the next few months, Juraboev and his co-conspirators continued to ramp up their allegiance to the terrorist group by discussing travel to Syria and proposals to wage violent jihad here in the United States. Juraboev ultimately purchased a plane ticket to travel to Syria, an act in furtherance of his terrorist plans and intentions. Those plans were thwarted and ended with today’s sentence, resulting in serious prison time.”
“The defendant in this case lived in Brooklyn while making plans to travel to Syria to support a designed terrorist organization,” stated Commissioner O’Neill. “If that was not successful, the defendant schemed of bombing Coney Island or killing the President of the United States. My thanks to the detectives, agents, prosecutors and federal judge whose work resulted in today’s sentence.”
According to previous court filings, in August 2014, Juraboev posted a threat on an Uzbek-language website to kill President Obama in an act of martyrdom on behalf of ISIS. In subsequent interviews by federal agents, Juraboev stated his belief in ISIS’s terrorist agenda, including the establishment by force of an Islamic caliphate in Iraq and Syria. Juraboev stated that he wanted to travel to Syria to fight on behalf of ISIS but lacked the means to travel. He added that, if he were unable to travel, he would engage in an act of martyrdom on U.S. soil if ordered to do so by ISIS, such as killing the President or planting a bomb on Coney Island.
During the next several months, Juraboev and a co-conspirator discussed plans to travel to Syria to fight on behalf of ISIS, culminating in Juraboev’s purchase on Dec. 27, 2014, of a ticket to travel from John F. Kennedy International Airport in Queens, New York, to Istanbul, Turkey, on March 29, 2015.
The U.S. government intends to seek the defendant’s removal to Uzbekistan upon completion of his sentence of imprisonment.
Assistant U.S. Attorneys Alexander Solomon, Douglas M. Pravda, Peter W. Baldwin and David K. Kessler of the Eastern District of New York, and Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section are prosecuting this case.
Upshur County man indicted on child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Buckhannon, West Virginia, man had an initial appearance this morning in federal court on a child pornography charge, United States Attorney William J. Powell announced.
James Andrew Smith, age 57, was indicted by a federal grand jury sitting in Wheeling on October 3, 2017 on one count of “Possession of Child Pornography.” Smith, having previously been convicted of possession of child pornography, is accused of having computer disks and other materials containing child pornography in his possession. The crime is alleged to have occurred in November 2015 in Upshur County.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The West Virginia State Police are investigating.
U.S. Magistrate Judge Michael John Aloi presided.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney, DEA in Kentucky, and Law Enforcement Announce Prescription Drug Take Back Day to Safely Remove Medications from Local HomesRead the Press Release
More than 70 locations this Saturday where Kentuckiana residents can safely and anonymously dispose of potentially dangerous prescription medications
LOUISVILLE, Ky. – Kentuckiana residents have an opportunity this Saturday to safely and anonymously rid their homes of unused, unwanted, unneeded, or expired prescription medications, announced United States Attorney Russell M. Coleman and Drug Enforcement Administration (DEA) Associate Special Agent in Charge, D. Christopher Evans. The National Prescription Take Back Day, is Saturday, October 28, 2017, at more than 70 locations across Kentucky and Southern Indiana. During this one-day event, federal and local law enforcement will once again partner to increase awareness of prescription drug abuse and provide an opportunity to reduce the availability of prescription pain medications in local homes.
U.S. Attorney Coleman and Mr. Evans were joined today, by Rick Sanders, Kentucky State Police Commissioner; Steve Conrad, Louisville Metro Chief of Police; and Col. John Aubrey, Jefferson County Sheriff, at a news conference to encourage families to clean out medicine cabinets and safely rid their homes of unwanted and expired prescription medications.
“This initiative addresses a vital public health concern,” stated U.S. Attorney Russell Coleman. “Leftover painkillers that gather dust in home medicine cabinets run the risk of diversion, misuse, abuse and theft. Properly disposing of these potentially addictive medications is one important step toward reducing our nation’s opioid epidemic and the related overdose deaths.”
DEA Special Agent in Charge Timothy J. Plancon said: “The most common way that prescription drug abusers obtain their drugs, is from their own family or from their friends. We can all do our part to potentially reduce substance abuse, by being proactive and participating in prescription drug take back programs. Removing unwanted or expired medications from our home is a small step we can all take to keep our families and community healthier and safer.”
KSP Commissioner Rick Sanders said his agency will participate by providing 16 Take Back drop off locations across the state. “The continued support of citizens who choose to properly dispose of unwanted prescription pills speaks volumes to the effectiveness of this program,” stated Commissioner Sanders. “By properly disposing of these unused prescription drugs from our medicine chests, we help to prevent theft, misuse and abuse. We also reduce the likelihood of tragedy and accidental poisoning of young children in our homes.”
“Taking back unused prescription medications means thousands of incidents of drug abuse are prevented in our community,” stated Louisville Metro Police Chief Steve Conrad.
USA Coleman and Mr. Evans also stated that the Take Back is a great opportunity to begin a dialogue with children to educate them on the dangers of obtaining pharmaceuticals for illicit use. Studies show that two-thirds of all teenagers who abuse prescription narcotics first obtain the drugs from family and friends; often from their home medicine cabinet.
Further, Mr. Coleman underscored yesterday’s announcement by United States President Donald Trump, declaring opioid abuse a national public health emergency. The Take Back is one way families and communities can take an effective step toward combatting this epidemic.
Prior DEA Prescription Take Backs have been extremely successful with Kentuckiana residents dramatically reducing the risk of pain pill and other medication abuses by ridding their homes of thousands of pounds of unused prescription medications.
Last April the public turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons of unused pills.
The Prescription Drug Take Back is part of a nationwide effort sponsored by the DEA. Containers where unwanted and expired prescription medications may be safely disposed will be at locations across Kentucky, and Southern Indiana, on Saturday, from 10 a.m. to 2:00 p.m. (DEA cannot accept liquids, needles or sharps.) The service is free and anonymous, no questions asked.
A complete list of locations may be found at www.DEATakeBack.com or by calling
(800) 882-9539. The KSP drop off locations are available on the KSP website at www.kentuckystatepolice.org
Jefferson County Sheriff John Aubrey reminded all citizens that a drop box is located on the 6th floor of the Sheriff’s Office at 531 Court Place. It is available for use Monday thru Friday from 8:00 AM to 4:00 PM.
Many Americans are unsure of how to properly dispose of their unused medications and often flush them down the toilet or throw them away. This poses safety and health hazards. More information on how to properly dispose of unused medicines can be found on the Food & Drug Administration website:
http://www.fda.gov/Drugs/ResourcesForYou/Consumers/BuyingUsingMedicineSafely/EnsuringSafeUseofMedicine/SafeDisposalofMedicines/ucm186187.htm
U.S. Attorney's Office Settles ADA Case with North Canaan School DistrictRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached an Americans with Disabilities Act (ADA) settlement with the North Canaan School District to ensure equal access for children with disabilities at the North Canaan Elementary School playground.
The settlement agreement resolves an ADA complaint filed by the parent of a child with disabilities alleging that the playground at the North Canaan Elementary School was not accessible for children with physical disabilities. The school is in the process of making the changes required by the settlement agreement, which include significant modifications and improvements to designated areas of the school playground.
Under federal law, public entities are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Department of Justice is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages and civil penalties.
U.S. Attorney Daly noted that the North Canaan School District has worked quickly and cooperatively to address the ADA issues without litigation.
“The Americans with Disabilities Act ensures that children are able to access and enjoy school playgrounds,” stated U.S. Attorney Daly. “Our Office is committed to enforcing the ADA, which requires our schools to allow equal access to every child. We appreciate the cooperation of the North Canaan School District and their willingness to make the necessary changes to the play areas for children with disabilities.”
Any member of the public who wishes to file a complaint alleging that a child does not have equal access to a public playground or other places of public accommodation in Connecticut may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Ndidi N. Moses, with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
U.S. Attorney for Oregon Encourages Community Members to Participate in Prescription Drug Take Back DayRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, invites all community members to participate in the Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on Saturday, October 28, 2017.
“DEA’s Drug Take Back Day offers a completely anonymous way to dispose of expired, unused and unwanted prescription medications,” said U.S. Attorney Williams. “We encourage all community members to do their part to combat the opioid abuse epidemic. Unused prescription pain medications stored in your home pose a significant risk of drug addiction for family members and youth. These medications,” continued Williams “are every bit as dangerous as illegal narcotics purchased on the street. Join us in this effort to help stem the tide of abuse in our communities.”
“Disposing of leftover painkillers or other addictive medicines in the house is one of the best ways to prevent a member of your family from becoming a victim of the opioid epidemic,” said DEA Acting Administrator Robert W. Patterson. “More people start down the path of addiction through the misuse of opioid prescription drugs than any other substance. The abuse of these prescription drugs has fueled the nation’s opioid epidemic, which has led to the largest rate of overdose deaths this country has ever seen.”
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
On the April 2017 Take Back Day, a record 12,120 pounds of medications were collected by DEA in Oregon and removed from circulation.
The public can locate nearby collection sites at www.DEATakeBack.com or by calling 800-882-9539. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.
U.S. Attorney Daly Announces Departure from OfficeRead the Press Release
After serving for over four years as United States Attorney for the District of Connecticut, Deirdre M. Daly today announced her resignation, effective midnight tonight.
“It has been a great honor and privilege to serve as Connecticut’s United States Attorney,” Daly said. “I am extremely proud of the tremendous accomplishments of the women and men of this office. I applaud their tireless work holding our most violent offenders accountable and standing up to those who abuse their power and influence, whether in government or on Wall Street. They have advocated for the most vulnerable, victims of child exploitation, human trafficking, drug overdose deaths, civil rights violations and investor fraud. Together, we have strengthened the relationship between law enforcement and minority communities, focused on the well-being of our police, supported formerly incarcerated individuals and collaborated with schools to combat the opioid epidemic. I am confident this important work will continue to thrive.”
Attorney General Jeff Sessions signed an order appointing John H. Durham the Interim U.S. Attorney for the District of Connecticut. Mr. Durham was sworn in today by Chief U.S. District Judge Janet C. Hall in New Haven.
“The people of Connecticut will be in excellent hands with U.S. Attorney John Durham, and the 112 career employees in the office who dedicate themselves to always doing what is fair and right,” Daly said.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of 66 Assistant U.S. Attorneys and 46 staff members at offices in Bridgeport, New Haven and Hartford.
U.S. Attorney Announces Office Collects over $7.1 millionRead the Press Release
BOISE – United States Attorney Bart M. Davis announced today that his office’s Financial Litigation Unit collected more than $4.95 million in criminal restitution, fines, and assessments and in civil debts for the fiscal year that ended September 30, 2017. Of the total collected, $1,038,424 were criminal restitution, fines, and/or assessments, and $3,917,825 were civil debts. In addition, the Asset Forfeiture Unit collected approximately $2,147,676 in proceeds and instruments of crime in criminal and civil forfeiture actions.
“The more than $7.1 million our staff collected for criminal restitution, fines, assessments, civil debts, and asset forfeiture exceeds the U.S. Attorney's Office’s annual operational budget,” said Davis. “Our collection and asset forfeiture staffs of attorneys, paralegals, analysts, and fiscal agents ensure that those who have caused loss to victims pay those victims back and ensure that those who have profited from committing crimes in the District of Idaho are deprived of the proceeds and tools of their crimes. These same folks also ensure that those who owe the federal government money as a result of litigation in this District or as a result of longtime debt, make appropriate payments. This year, all of these dedicated individuals have done outstanding work and served this office, the taxpayers, and this community well,” Davis concluded.
Victims of crime receive funds collected in criminal restitution cases. In fiscal year 2017, the U.S. Attorney’s Office, through the Financial Litigation Unit, collected over $898,000 in criminal restitution that was distributed to victims of crime. Other criminal collections such as fines go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors.
During the fiscal year, some notable criminal restitution collections include Asset Forfeiture’s restoration of $30,000 paid back to a veteran’s family after the veteran was defrauded of Veterans Affairs and Social Security Benefits. In addition, the Treasury Offset Program helped collect $94,000 in one payment toward a restitution debt. Lastly, various criminal defendants paid all or much of their restitution debts at or before sentencing.
Notable recoveries of the proceeds of crime through asset forfeiture include forfeitures of currency, vehicles, and real property seized as proceeds and facilitating property of drug trafficking and fraud. These included real properties in Ketchum, Caldwell, California, and Washington. In some cases, the United States shared, or will share, with local investigating agencies money and vehicles seized.
As for civil debts and penalties, the Financial Litigation Unit collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud. It also collects civil debts for defaulted loans. Of the $4.95 million in civil debt collected, $1.1 million was as a result of fraudulent procurement of government contracts and another $2.25 million was related to wild fire suppression costs recovery.
U. S. Penitentiary Lieutenant arraigned on excessive force and obstruction of justice chargesRead the Press Release
ATLANTA – Lieutenant Gregory McLeod, a senior correctional officer at the U.S. Penitentiary in Atlanta, Georgia, has been arraigned following an investigation of an allegation that McLeod used excessive force against an inmate in 2016. McLeod was indicted by a federal grand jury on October 24, 2017, and has been charged with unnecessarily assaulting the inmate, writing two false official accounts about the encounter, and lying to federal investigators about his conduct.
“We recognize that detention officers have a difficult job as they maintain order and protect inmates in our nation’s prisons,” said U.S. Attorney Byung J. “BJay” Pak. “This officer, however, allegedly abused his power, committed a violent and unnecessary assault on an inmate, and then filed a false report to cover up the incident.”
“The FBI continues to play a vital role in ensuring that all credible allegations of civil rights violations involving law enforcement officers are appropriately investigated and prosecuted under one of the several criminal statutes that address civil rights abuses and other criminal conduct by law enforcement and corrections officers. That was certainly the case with U.S. Bureau of Prisons Lt. McLeod, wherein allegations of excessive force were received, resulting in a federal investigation, grand jury indictment, and today’s arraignment in federal court. The FBI would like to remind the public, however, that the vast majority of law enforcement officers and corrections officers provide admirable services while often under stressful and time constrained situationss,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Pak, the indictment, and other information presented in court: McLeod, who worked as a supervisor at the prison, allegedly strip-searched an inmate in his office in front of three other correctional officers. After the inmate complained that the strip-search was taking too long, McLeod repeatedly punched the inmate in his face, injuring him. Following the assault, McLeod wrote an incident report and a separate memorandum about the encounter in which he falsely claimed that the inmate swung a closed fist at McLeod and attempted to assault other officers before the officers could apply hand and leg restraints. The indictment charges that McLeod used excessive force and thereby violated the inmate’s constitutional rights. The indictment also accuses McLeod of intentionally impeding and obstructing the investigation of the incident by writing false reports and lying to two federal agents.
Gregory McLeod, 44, of East Point, Georgia, was arraigned on these charges during a hearing in federal court before U.S. Magistrate Judge Catherine M. Salinas.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the DOJ Office of Inspector General and the Federal Bureau of Investigation.
Assistant U.S. Attorney Brent Alan Gray and DOJ Civil Rights Division Trial Attorney Mary J. Hahn are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Two pharmacists sentenced to 19 and 20 years in prison and ordered to pay $5 million in restitution to the State of Georgia to combat the opioid epidemicRead the Press Release
ATLANTA - Rosemary Ofume and Donatus Iriele have each been ordered to pay $2.5 million in community restitution. The community restitution funds are to be paid to the Georgia state agencies responsible for substance abuse treatment and victims assistance. The defendants, who are husband and wife, formerly owned the Medicine Center Pharmacy in Atlanta, Georgia. They were sentenced on July 20, 2017, to 19 and 20 years in prison, respectively, for illegally dispensing controlled narcotics to customers of the AMARC “pill mill” pain clinic.
“The defendants used their pharmacy to supply pills to patients of a known ‘pill mill’ and then laundered millions of dollars to conceal their crimes,” said U.S. Attorney Byung J. “BJay” Pak. “These pharmacists fed opiate addictions among so many as a means to sustain their lifestyles. Now, they will begin to serve lengthy prison sentences and pay back the state of Georgia to account for some of the harm they caused to the community. This money will go to help the individuals whose lives have been scarred by addiction.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “It is a sad commentary when trusted individuals in the medical community hide behind the veil of legitimacy to commit criminal acts. These pharmacists can no longer fill the opiate cravings of pill-seeking addicts with impunity. Owners and operators of pill mills spin a broad web of deception, reeling in casts of thousands who are addicted to pharmaceutical drugs. This investigation was a success because of the spirited level of law enforcement cooperation.”
“These convictions have removed a huge tumor from the cancer that illicit drug distribution has become during our lifetime. The hard work invested in this case by all parties, from the U.S. Attorney’s office, to the boots on the ground front-line drug agents, and everyone in-between, proves what dedication, persistence and cooperation can accomplish. It’s proof positive that just because you have a license to practice pharmacy, you aren’t entitled to put illicitly prescribed drugs on the street and contribute to the skyrocketing opioid addiction and overdose death rates. All health care professionals are put on notice to remember: you are to do no harm. And if you intentionally ignore this charge, you are going to be treated the same as a street-corner drug dealer in this war on opioid abuse,” said Dennis M. Troughton Sr., Director, Georgia Drugs & Narcotics Agency.
According to U.S. Attorney Pak, the charges and other information presented in court: In May 2009, agents of the DEA, working with agents for the IRS, began investigating the AMARC pain clinic, located on Lakewood Avenue in Atlanta and nearby Medicine Center Pharmacy, after receiving information that the clinic and pharmacy were illegitimately prescribing and dispensing pain pills to drug addicts and drug dealers.
The investigation revealed that Godfrey Ilonzo financed and operated at least eight clinics in the metro Atlanta area under the “AMARC” name, including the Lakewood pain clinic and one in Tyrone, Georgia. Bona Ilonzo (Godfrey Ilonzo’s wife) served as the office manager at the Lakewood AMARC pain clinic. At various times, Dr. Nevorn Askari and Dr. William Richardson served as the primary doctors for the AMARC pain clinics. Rosemary Ofume and Donatus Iriele operated the Medicine Center Pharmacy across the street from one of the pain clinics. Both Godfrey and Bona Ilonzo, as well as Drs. Askari and Richardson, pleaded guilty to charges related to their conduct at the clinic. Ofume and Iriele were later convicted at trial of drug trafficking and money laundering charges related to the pharmacy.
Ofume and Iriele worked together with the Ilonzos and Drs. Askari and Richardson to facilitate the dispensing of oxycodone pills and other opiates to addicts and distributors. After customers received prescriptions from Askari and Richardson for medically inappropriate and potentially lethal combinations of opiates and other controlled substances, clinic staff told customers to fill their prescriptions across the street at “Rosemary’s pharmacy” (Medicine Center Pharmacy operated by Ofume and Iriele). Many of those customers traveled to the AMARC clinics and Ofume/Iriele’s pharmacy from counties throughout Georgia and from other states (including Alabama and Ohio).
Customers waited for hours at the Lakewood AMARC pain clinic and paid cash to receive prescriptions for oxycodone/hydrocodone, Xanax, and Soma (the “holy trinity” for resale on the street) before purchasing the pills at high prices from Ofume and Iriele’s pharmacy. Employees at the AMARC clinics and Ofume and Iriele’s pharmacy received discounts and special treatment, including free office visits and reduced prices for pills dispensed at the pharmacy. Ofume lied to pharmaceutical distributors to procure astronomical quantities of oxycodone and other prescription pain pills that were then dispensed to customers having obvious signs of addiction or drug diversion. Between 2009 and 2012, Medicine Center Pharmacy purchased 1,360,410 opioid pills. Significantly, in 2009, the pharmacy purchased eleven times more oxycodone than the average pharmacy in the state of Georgia.
During the course of the conspiracy, Ofume and Iriele generated more than $5.1 million dollars from unlawful prescriptions issued by doctors affiliated with the AMARC clinics (constituting more than 90% of the pharmacy’s revenue). Iriele used pharmacy proceeds to purchase three luxury vehicles for his and Ofume’s personal use. Iriele and Ofume also laundered pharmacy proceeds by purchasing vehicles in the United States for individuals in Nigeria while concealing that those customers were depositing equivalent amounts of local Nigerian currency into Iriele’s personal Nigerian bank account.
In 2007, the Georgia Board of Pharmacy had revoked Iriele’s pharmacy license (and temporarily suspended Ofume’s pharmacy license) after finding that Ofume and Iriele had failed to account for more than 600,000 controlled substances pills at their pharmacies and had dispensed controlled substances pursuant to more than 1,400 forged prescriptions.
Donatus Iriele, 63, of Atlanta, Georgia, was sentenced on July 20, 2017, by U.S. District Judge Steve C. Jones to 20 years in prison, followed by three years of supervised release. Rosemary Ofume, 59, also of Atlanta, was sentenced by Judge Jones on the same day, to 19 years in prison, followed by three years of supervised release. Ofume and Iriele were convicted on March 24, 2017, after a three-week jury trial on federal drug and money laundering charges in connection with their operation of Medicine Center Pharmacy, in Atlanta.
Based on the convictions, Ofume and Iriele were ordered to forfeit to the United States $16,767 in cash seized from the pharmacy, $133,892.74 in funds seized from the pharmacy’s bank account, a 2009 BMW X5, a 2008 Mercedes Benz ML550, and a 2007 BMW X5. The Georgia Board of Pharmacy suspended Ofume’s pharmacy license (and the license of Medicine Center Pharmacy) as a result of the convictions.
Judge Jones ordered a community restitution award requiring Ofume and Iriele to pay a total of $5 million under Title 18, United States Code, Section 3663(c), to be distributed to the Georgia Department of Behavioral Health and Developmental Disabilities, and the Criminal Justice Coordinating Council for victims’ assistance, in restitution for the public harm caused by Ofume and Iriele’s conduct. Such a restitution order is the first of its kind in the nation against pharmacists, which also recognizes the public harm diverted opiates have caused the citizens of the state of Georgia.
This case was investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Laurel Boatright, Cassandra Schansman, and Michael Brown prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tujunga Man Sentenced to Three Years in Prison for Identity Theft and Bank FraudRead the Press Release
SACRAMENTO, Calif. — Karapet Damaryan, 66, of Tujunga, CA, was sentenced today by United States District Judge Garland E. Burrell, Jr. to three years in prison for aggravated identity theft and bank fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, in May 2013, Damaryan assumed the identity of an innocent victim in order to take over the victim’s bank account. Posing as the victim, Damaryan fraudulently wired $141,395 out of the account to a gold coin and bullion store, where he and his co-defendant Garik Voskanyan attempted to use the stolen funds to purchase nearly 100 one-ounce gold coins. The fraud was detected when the victim checked his bank account on the day the fraudulent wire was attempted. Damaryan and Voskanyan were arrested outside the gold store when they arrived to pick up the coins.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorneys Matthew G. Morris and Amy Schuller Hitchcock prosecuted the case.
Co-defendant Voskanyan pleaded guilty to one count of bank fraud and was sentenced on September 15, 2017, to 15 months in prison for his role in the offense.
Three Sentenced for Roles in Conspiracy Involving Fraudulent Bank CardsRead the Press Release
DALLAS — Today, U.S. District Judge Sidney A. Fitzwater sentenced three defendants for their roles in a conspiracy involving fraudulent purchases in North Texas using counterfeit bank cards, announced U.S. Attorney John Parker of the Northern District of Texas.
Elvis Johanny Ortiz Reyes, 34, from Nicaragua, was sentenced to 35 months in federal prison and ordered to pay $408,596.46 in restitution, joint and severally with his codefendants. He pleaded guilty in June 2017 to one count of conspiracy to commit access device fraud.
Yaser Moreno, aka “Adrian Perez,” 27, from Cuba, was sentenced to 57 months in federal prison and ordered to pay $408,596.46 in restitution, joint and severally with his codefendants. He pleaded guilty in April 2017 to one count of conspiracy to commit access device fraud.
Norge Mayea, 45, also from Cuba, was sentenced to 36 months in federal prison and ordered to pay $44,497.70 in restitution, joint and severally with his codefendants. He pleaded guilty in July 2017 to one count of conspiracy to commit access device fraud.
A federal grand jury returned a 20-count indictment in August 2016 charging Reyes, Moreno and Mayea, along with Jesus Aldana Gutierrez, Roberto Carlos Puebla Saavedra, Ivania Ortiz, aka “Ivania Reyes” and “Lisset Oz,” and Yokasta Garcia, aka “Kathy Garcia,” for their roles in the scheme.
According to documents filed in the case, from at least August 2014 through July 2016, the defendants obtained lists of credit and debit card numbers belonging to other individuals online. They used the card information to create counterfeit bank cards using devices to encode the cards with the fraudulently obtained account information. The defendants went to various retail stores and purchased prepaid gift cards and shopping cards with the counterfeit cards. The defendants then took those purchased prepaid gift cards and shopping cards to other stores and purchased items, including other gift cards, to further launder the illegally obtained money.
The scheme was discovered after an investigator from JPMorgan Chase observed a large volume of fraudulent transactions being made with unauthorized JPMorgan Chase debit card numbers at Walmart stores in the Dallas-Fort Worth metroplex area. JPMorgan Chase’s investigator worked with Walmart investigators to collect surveillance footage and conduct surveillance of the defendants engaging in the fraudulent transactions.
The case was investigated by the U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorneys Jamie L. Hoxie and Shane Read prosecuted.
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Three Longview, TX, Prison Gang Members Sentenced for Kidnapping, MurderRead the Press Release
MUSKOGEE, OKLAHOMA – United States Attorney Brian J. Kuester announced today that three members of a violent Texas prison gang have been sentenced for their roles in the kidnapping and homicide of one of their fellow gang members. Brian Thomas Green, 45, Kalvin Kyle McCown, 44, and Travis Lee Hill, 28, all of the Longview, Texas, area, have been sentenced to long, non-parolable, prison sentences for the part that each played in the kidnapping and killing of Kenneth Earl Ayres. Green was sentenced on October 26, 2017, to 25 years in prison and 5 years of supervised release. McCown was sentenced on Otober 25, 2017, to 20 years in prison and 5 years of supervised release. Hill was sentenced on September 20, 2017, to 15 years in prison and 5 years of supervised release. Each was ordered to pay a $100.00 assessment to the Court.
The victim and the defendants were members or affiliates of the Aryan Brotherhood of Texas, a gang known for vicious attacks on their own members when they violate the organization’s “Constitution.” In July 2011, Ayres violated the gang’s rules by stealing guns from a shed at McCown’s residence in Longview, Texas. Green, and a now deceased “prospect” who was earning his way into the gang, persuaded Ayres to come with them to McCown’s residence where Ayres was beaten and shot in the hand by Green, McCown, Hill and others. Using McCown’s pickup, Green and Hill transported Ayres to the McCurtain County community of Harris in southeast Oklahoma where he was shot and killed. Ayres' remains were discovered in September 2011 by farmers cutting hay. The skeletal remains were ultimately identified by the Oklahoma Office of the Chief Medical Examiner using a DNA profile generated in the lab at the University of North Texas. The DNA was matched to a sample of Ayres' DNA collected by the Texas Department of Criminal Justice during a term Ayres had served in a Texas prison.
The prosecution of the case was based upon a multi-year investigation that followed the discovery of Ayres’ remains. The U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) led the investigation with the close support of the Carrollton Texas Police Department, the Longview Texas Police Department, and the Oklahoma State Bureau of Investigation. Other agencies participating in the investigation included: Texas Department of Public Safety, McCurtain County Sheriff’s Office, Panola County Texas Sheriff’s Office, United States Bureau of Prisons, and the Texas Rangers.
U.S. Attorney Kuester said, “A homicide that is not solved within weeks of its occurrence becomes increasingly complex and more difficult to investigate and prosecute. Despite the difficulties that arose in this case due to the lapse of time, HSI Agents and the state and local law enforcement agencies that assisted them were thorough and professional. Assistant U.S. Attorneys Rob Wallace and Kristen Harrington diligently worked on this case to achieve justice for the victim and his family. I commend each one who played a role in this investigation and prosecution.”
"Gang-related crimes are especially egregious, and ABT is one of the more violent gangs, as this case clearly demonstrates," said Katrina W. Berger, special agent in charge of HSI Dallas. "Homeland Security Investigations has an active anti-gang program, and our special agents routinely work closely with our law enforcement partners to investigate gang-related crimes."
The Federal Grand Jury in Muskogee began hearing evidence in the case in September of 2014, and returned Indictments for Racketeering and Kidnapping charges against Green, McCown and Hill in January of 2016. McCown and Hill entered guilty pleas to the Kidnapping charge on January 6, 2017. Green entered a guilty plea to a charge of Use and Carry of a Firearm During and in Relation to a Crime of Violence on May 10, 2017.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendants will remain in custody pending transportation to the designated federal facility at which the non-parolable sentence will be served.
Assistant United States Attorney Rob Wallace and Assistant United States Attorney Kristin Harrington represented the United States.
Three Defendants Sentenced for Unrelated Child Pornography CrimesRead the Press Release
DENVER – Three defendants were sentenced this week for unrelated child pornography crimes, Acting U.S. Attorney Bob Troyer announced. The three cases were investigated by the FBI and the National Center for Missing and Exploited Children (NCMEC).
In the U.S. v. Paul Lee, the defendant, age 54, of Parker, Colorado, was sentenced to serve 10 years in federal prison after pleading guilty to Access With Intent to View child pornography. This is the first time in Colorado that this statute was used. Lee’s case was heard by U.S. District Court Judge Christine M. Arguello. The defendant purchased a Chromebook in the summer of 2016 so he could access child pornography. During this time, Lee was on probation in Adams County for Attempted Sexual Exploitation of a Child. According to his plea agreement, he searched the internet for child pornography involving boys 12 to 15, downloading videos on average of three times per week.
In the U.S. v. Sharee Equdzi-Acquah, the defendant, age 48, of Westminster, Colorado, was sentenced to serve 10 years in federal prison by U.S. District Court Judge Philip A. Brimmer after pleading guilty to possession of child pornography. The defendant traded child pornography with multiple other like-minded people using an application on her cellular telephones. The defendant shared dozens of images of child pornography online. She also engaged in graphic chats with others about having sex with children. The defendant chatted with a man about having a child they could molest together. The defendant used cloud storage, foreign emails, and foreign cloud storage – in both New Zealand and in Russia.
In the U.S. v. Damian Smith, the defendant, age 44, of Denver, Colorado, was sentenced to serve 97 months in federal prison by U.S. District Court Judge Christine M. Arguello after pleading guilty to possession of child pornography. An FBI agent working in an undercover capacity online was able to successfully connect to the defendant’s computer and download hundreds of child pornography files that he made available for sharing. Smith had been looking at and downloading child pornography for over 10 years. He logged in daily, indiscriminately downloading all ages of child pornography, from toddler porn to granny porn. His laptop had over 160,000 images and 1,032 videos. A hard drive also belonging to Smith had over 15,000 images of child pornography.
“The U.S. Attorney’s Office continues to work with our partners, including the FBI, to protect our children from online predators,” said Acting U.S. Attorney Bob Troyer. “The three defendants sentenced this week show our continued commitment to this important mission.”
“This week’s sentences handed down represent the FBI’s dedication to pursuing those intent on harming children,” said FBI Denver Special Agent in Charge Calvin Shivers. “The identification and apprehension of child predators roaming our communities is a priority for the FBI. These cases should serve as a deterrent to those who utilize the Internet to promote the victimization of children.”
The defendants in these cases were prosecuted by Assistant U.S. Attorney Valeria Spencer, assigned to the Cybercrime and National Security Section of Criminal Division of the U.S. Attorney’s Office, District of Colorado. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tax Preparer Pleads Guilty to Filing False ReturnsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., tax preparer pleaded guilty in federal court today to filing false tax returns.
Quashanda King, 36, of Kansas City, pleaded guilty before U.S. District Judge Howard F. Sachs to assisting in the preparation and filing of a false and fraudulent tax return.
King was a long-time employee of Instant Tax Service as a tax preparer, and managed its office at 11134 Blue Ridge Blvd., Kansas City, Mo. The typical client who had their return prepared at Instant Tax Service was a very low wage earner, typically with under $3,000 in W-2 wages. The clients were unsophisticated in tax or financial matters. When they walked into one of the two offices, they were assigned a preparer, who input their W-2 wages, dependents, and other identifying information into the appropriate field of their electronically filed returns.
King admitted that preparers would insert a completely fabricated Schedule C activity showing the client carried out a business at a modest profit, often inflating the gross receipts of activities such as “doing hair” or “babysitting” in order to maximize the refundable credits available to the client. The evidence suggests that in most of these cases the clients were not really earning any income from braiding hair or from babysitting.
King admitted that she assisted in the filing of seven fraudulent tax returns, resulting in a loss to the government of $26,187.
Under federal statutes, King is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Suffolk County Attorney Indicted for Mail Fraud, Wire Fraud and Money LaunderingRead the Press Release
A 19-count indictment was unsealed today in federal court in Central Islip, New York, charging Vincent J. Trimarco, Jr., with conspiracies to commit mail fraud and wire fraud and money laundering, as well as related substantive counts. Trimarco was arrested this morning and will be arraigned this afternoon before United States Magistrate Judge A. Kathleen Tomlinson.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
As detailed in the indictment, Trimarco was an attorney licensed to practice in New York State and, at times, a part-owner of the now closed Emporium, a nightclub and music venue in Patchogue, New York. From October 2011 through August 2017, Trimarco and a Co-Conspirator orchestrated a scheme to defraud a minor, who was the Co-Conspirator’s grandchild, of more than $2 million in settlement proceeds stemming from a wrongful death action. Using the settlement proceeds, Trimarco and the Co-Conspirator purchased luxury vehicles, including a Ferrari F430 Spider for $200,000 and a Jaguar XKR convertible for $57,000, as well as numerous pieces of property in Suffolk County, and invested approximately $800,000 in the Emporium. Despite orders from the Suffolk County Surrogate’s Court in April 2012 and August 2012 restraining the disbursement of the settlement proceeds and, ultimately, directing the return of the settlement proceeds, Trimarco and the Co-Conspirator sold the assets obtained with the settlement funds and failed to return the proceeds to the rightful heir. In addition, from October 2011 to the present, Trimarco orchestrated a scheme to defraud both the Co-Conspirator and the minor of these funds. Trimarco obtained ownership interest in the vehicles, property and nightclub despite the fact that these items had been purchased with the settlement funds and Trimarco contributed little to no funds of his own.
“As alleged, by defrauding a co-conspirator’s grandchild of an inheritance from a wrongful death suit, the defendant violated the law as well as the trust placed in him as an attorney,” stated Acting United States Attorney Rohde. “Protecting the public from those who, for personal gain, would abuse that trust and betray the laws they have sworn to uphold is a priority of this office.”
“When you peel back the layers of this alleged crime, it all boils down to this: Trimarco, a licensed attorney, is believed to have defrauded a minor of millions of dollars awarded in a wrongful death settlement,” stated FBI Assistant Director-in-Charge Sweeney. “As if that wasn’t bad enough, he and a co-conspirator, whom he also defrauded, allegedly used this money to invest in a nightclub and purchase big-ticket items and pieces of property. When the scam was first uncovered, a court order was issued mandating they return the funds to their rightful owner, which they failed to do. Today, this high-speed lifestyle had been brought to an abrupt halt as Trimarco faces the consequences of his alleged actions.”
If convicted, Trimarco faces a maximum term of imprisonment for 20 years for each mail fraud, wire fraud and money laundering charge, 10 years for each money laundering unlawful monetary transactions charge, and five years for each conspiracy charge.
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile, Raymond A. Tierney and Charles P. Kelly are in charge of the prosecution with the assistance of Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
VINCENT J. TRIMARCO, JR.
Age: 48
Smithtown, NY
E.D.N.Y. Docket No. 17-CR-583 (JMA)
St. Francis Man Charged for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Israel Left Hand Bull, age 33, was indicted on October 17, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 25, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Left Hand Bull was convicted of Abusive Sexual Contact in January 2012. As a result of this conviction, he is required to register as a sex offender. It is alleged that between August 20, 2017, and September 20, 2017, Left Hand Bull, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under federal law, failed to properly register as a sex offender.
The charge is merely an accusation and Left Hand Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Left Hand Bull was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
South Sudanese National Charged with Resisting Federal OfficerRead the Press Release
BOSTON – Charles Samuel Ali, 31, was charged yesterday in federal court in Boston with one count of resisting and assaulting a federal officer.
According to the indictment, on Feb. 16, 2011, an Immigration Judge in New York ordered Ali removed from the United States to be returned to the Republic of South Sudan. On Sept. 11, 2017, Deportation Officers arrived at the facility where Ali was being held to transport Ali to Logan International Airport and then accompany him to the Republic of South Sudan. During the process, Ali became disruptive, questioning the removal documents authenticity and would not cooperate with the officers’ efforts. As the officers attempted to escort Ali to the airport, he assaulted the officers resulting in one of the officers sustaining a broken ankle. The officers then decided to abort the removal, and Ali was returned to custody.
Ali faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sioux Falls Man Charged with Interstate Communications with Threat to InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Interstate Communications with Threat to Injury.
Graham Garnos, age 40, was indicted on March 4, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 26, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 22, 2015, Garnos knowingly transmitted in interstate commerce, a telephone communication to someone, which contained a threat to injure the victim.
The charge is merely an accusation and Garnos is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Division of Criminal Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Garnos was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sidney Man Pleads Guilty to Three Counts of Sexual Exploitation of a 17-Month Old ChildRead the Press Release
BINGHAMTON, NEW YORK – Justin Crandall, age 28, of Sidney, New York, pled guilty today in federal court in Binghamton, New York, to three counts of sexual exploitation of a child, announced Acting United States Attorney Grant C. Jaquith and Vadim Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). In pleading guilty, Justin Crandall admitted to having made videos and images of his sexual exploitation of a 17-month old child from December of 2016 through February of 2017. Sentencing is scheduled for February 23, 2018 in Binghamton, New York.
In entering his guilty plea today, Justin Crandall admitted that in 2016 and 2017 he resided in Sidney, New York (Delaware County) and provided daycare on a weekly basis at his residence for a 17-month old child. During this time period, and while the victim was in the custody, control and direct care of Justin Crandall, he used the child to engage in sexually explicit acts, while he made videos and images of this conduct. The FBI and New York State Police executed search warrants at the defendant’s residence and located the sexually explicit videos and images on a cellular telephone.
Justin Crandall was questioned by the New York State Police and, after being advised of and having waived his Miranda rights, voluntarily confessed in a video and audio-recorded interview.
Justin Crandall faces a minimum sentence of 15 years and up to 30 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life on each of his three counts of conviction. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This joint investigation was conducted by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Agents and Investigators of the New York State Police, Bureau of Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Second Superseding Indictment Returned in Armored Car RobberiesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DELTOINE SCOTT, age 24, JEROME KIEFFER, age 24, and JEROME’s father, ARMSTEAD KIEFFER, age 53, all of New Orleans, were charged yesterday in a nine-count Second Superseding Indictment. The Second Superseding Indictment includes charges of conspiracy to commit bank robbery, armed bank robbery, use of a firearm in furtherance of a crime of violence, attempted armed bank robbery resulting in death, murder, making a false statement to a federal law enforcement officer, perjury before the federal grand jury, and felon in possession of a firearm. The Second Superseding Indictment adds defendant ARMSTEAD KIEFFER to the 2017 Loomis armored car robbery that resulted in the death of James McBride and adds charges for a 2015 Brinks armored car robbery against SCOTT and JEROME KIEFFER.
According to the Second Superseding Indictment, SCOTT, JEROME KIEFFER, and ARMSTEAD KIEFFER conspired together to commit two armored car robberies, a 2015 robbery at the Chase Bank on N. Broad and a 2017 attempted robbery at the Campus Federal Credit Union on Tulane. SCOTT and JEROME KIEFFER are charged with two counts related to 2015 robbery and all three defendants are charged with two counts related to the 2017 attempted robbery. The Second Superseding Indictment alleges that the defendants used force, violence, and intimidation and were armed with firearms during both robberies and that SCOTT, JEROME KIEFFER, and ARMSTEAD KIEFFER caused James McBride’s death during the 2017 attempted robbery.
If convicted of attempted bank robbery resulting in death, SCOTT, JEROME KIEFFER, and ARMSTEAD KIEFFER face a mandatory life sentence or death. The Second Superseding Indictment also charges all three defendants with using a firearm during and in relation to the 2017 attempted robbery, which carries a penalty of up to life in prison or death. On the charges related to the 2015 robbery, SCOTT and JEROME KIEFFER face up to twenty-five years in prison, plus a mandatory consecutive sentence of at least seven years up to life. The conspiracy charge carries a maximum penalty of five years. The Second Superseding Indictment also alleges that SCOTT, about a week after the robbery, lied to federal agents about having lost his phone and about his whereabouts on the day of the robbery. If convicted, SCOTT faces up to five years in prison on each of the false statement counts. ARMSTEAD KIEFFER is also charged with perjury before the federal grand jury and being a felon in possession of firearms, which carry a potential term of imprisonment of up to five years and up to ten years, respectively.
Acting U.S. Attorney Evans reiterated that the Second Superseding Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the FBI New Orleans Violent Crime Task Force and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys David Haller and Michael McMahon are in charge of the prosecution.