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26 October 2017
Rochester Man Sentenced to 25 Years on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Allan Watson, 36, of Rochester, NY, who was convicted of possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 25 years in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to forfeit two firearms and rounds of ammunition seized at the time of his arrest.Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that shortly after midnight on July 14, 2016, Rochester Police Department officers responded to a motor vehicle crash near the intersection of Hollenbeck Street and Belfour Drive in Rochester. During the crash investigation, officers directed Watson out of an SUV and, after a brief struggle with police, he was taken into custody. At that time, defendant had a loaded 9mm pistol, crack cocaine, and heroin packaged for street sale, as well as over $3,899 in cash.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, and the United States Marshal Service, under the direction of Charles Salina.
Report to IRS Whistleblower Program Leads to Guilty Plea from L.A. Man who Failed to Report to IRS over $3 Million in Overseas IncomeRead the Press Release
LOS ANGELES – A West Los Angeles resident who earned more than $3 million over a three-year period while working in Dubai has pleaded guilty to a federal tax evasion charge for failing to report this income to the Internal Revenue Service.
Fallah Alfallah, 49, who resides in the City of Los Angeles adjacent to Beverly Hills, pleaded guilty to the felony offense yesterday afternoon before United States District Judge Dolly M. Gee.
According to a plea agreement filed in this case, Alfallah is a naturalized United States citizen who lived in Dubai during the years 2008 through 2010 while working as an investment advisor for the Bahrain-based Unicorn Investment Bank. Alfallah admitted that his salary and bonuses totaled $1,512,557 in 2008, $830,691 in 2009, and $658,794 in 2010.
Although he earned more than $3 million during those three years and despite being advised by his tax preparer that he had a legal obligation to report his overseas income to the IRS, Alfallah did not file income tax returns with the IRS. By pleading guilty, Alfallah admitted that he intended to avoid paying taxes on this income and took affirmative steps to evade the tax due for those three years.
As a result of Alfallah’s conduct, the government sustained losses of $933,492.
Alfallah pleaded guilty to one count of tax evasion related to his unpaid taxes for 2009.
The investigation into Alfallah was conducted by IRS Criminal Investigation, which received a tip through the IRS Whistleblower Program, which offers compensation to individuals who “blow the whistle” on people who fail to pay the taxes that they owe.
Alfallah is scheduled to be sentenced by Judge Gee on February 7, 2018. The statutory maximum sentence he can receive is five years in federal prison. Alfallah has agreed to pay restitution of $933,492 to the IRS.
This case is being prosecuted by Assistant United States Attorneys Charles Parker and Robert F. Conte of the Tax Division.
Relocation of Premerger and Division Statistics Unit, Antitrust DivisionRead the Press Release
The Antitrust Division’s Premerger and Division Statistics Unit is relocating to the Liberty Square Building, 450 Fifth Street, N.W., on Monday, November 27, 2017. The Premerger and Division Statistics Unit accepts and processes Hart-Scott-Rodino Premerger & Report Forms for the Antitrust Division.
As of Monday, November 27, 2017, the mailing address for the Premerger and Division Statistics Unit is:
Department of Justice
Antitrust Division
Premerger and Division Statistics Unit
450 Fifth Street, N.W.
Suite 1100
Washington, DC 20530-0001Hand deliveries will be processed through security stationed at the loading dock entrance on Sixth Street, between D Street and E Street.
Hart-Scott-Rodino Premerger Notification & Report Forms and other materials will continue to be accepted at the Main Justice Building, 950 Pennsylvania Avenue, N.W., until 5:00 p.m. Friday, November 24.
All telephone numbers and email addresses for the Premerger and Division Statistics Unit will remain the same. For further information, please call (202) 514-2558.
Registered Sex Offender Charged with Attempted Coercion of A MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Shane Kainoa Kelly, 45, of Tracy, charging him with attempted online coercion of a minor to engage in sexual activity and the commission of an offense involving a minor while required to register as a sex offender, United States Attorney Phillip A. Talbert announced.
According to court documents, Kelly responded to a personal advertisement on Backpage.com and began conversing with an individual he believed to be 15 years old via text. Kelly discussed sexual activity with the individual, sent her multiple photographs and arranged to meet her when her mother was purportedly not at home. Unbeknownst to Kelly, the individual with whom he conversed was actually a law enforcement agent.
This case was the product of an investigation by U.S. Immigration Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Manteca Police Department Investigations Division, and San Joaquin County Sheriff’s Office. Assistant United States Attorney Amy Schuller Hitchcock is prosecuting the case.
If convicted, Kelly faces a mandatory statutory minimum of 20 years in prison and a maximum of life in prison, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety.
Rapid City Man Resentenced for Failing to Pay TaxesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Collect and Pay Over Tax was resentenced on October 25, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court. The Defendant was charged on January 30, 2017, and pleaded guilty on February 12, 2017.
Kenneth E. Orrock, age 48, was sentenced to five years probation. He was further ordered to pay a $100 special assessment to the Federal Crimes Victims Fund, and $280,257.72 in restitution to the Internal Revenue Service, with restitution to be paid in monthly payments of $1,000.
The Court originally sentenced Orrock on August 30, 2017, to 12 months of imprisonment, with the sentence to be served on weekends, followed by three years of supervised release. On October 3, 2017, the Court vacated the original sentence, concluding that the sentence to weekend imprisonment was not authorized under federal law and was, therefore, illegal.
During the years 2011 through 2015, Orrock was the sole member of Black Hills Asset Protection Group, LLC, a limited liability company located in Rapid City that offers security-related services in western South Dakota under the trade name “Black Hills Patrol.”
During the same period, Orrock withheld taxes from his employees’ wages, including federal income tax, social security, and Medicare taxes for employees of Black Hills Patrol, and willfully failed to pay over those taxes to the United States. Orrock also willfully failed to pay the employer’s portion of taxes on wages paid to employees during the same period. Rather than paying over the taxes, Orrock used a portion of the withholdings for his own personal use.
Orrock, who was a licensed attorney until recently, served as the Bennett County State’s Attorney until January 2017.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
RBS Securities Inc. Agrees to Pay $35 Million Penalty Related to Securities Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that global securities firm RBS Securities Inc. and the U.S. Attorney’s Office have entered into a non-prosecution agreement relating to RBS’s fraudulent trading through its now-defunct U.S. Asset-Backed Securities, Mortgage-Backed Securities and Commercial Mortgage-Backed Securities Trading group. As part of this agreement, RBS will pay a monetary penalty of $35 million and pay more than $9 million of restitution to victim customers, which include firms affiliated with recipients of federal bailout funds through the Troubled Asset Relief Program.
The government’s investigation revealed that RBS – principally from its trading floor in Stamford, Connecticut – perpetrated a scheme from 2008 to 2013 to defraud its customers in trades of residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLOs). The purpose and effect of RBS’s fraud was to increase its profits on RMBS and CLO trades at the expense of victim customers. RBS conducted this scheme by, through and with its employees, who acted with the knowledge, encouragement and participation of RBS supervisors or its compliance-related personnel.
RBS conducted its scheme in various ways. First, RBS misrepresented material facts to deceive and cheat its customers in trades. For instance, in certain transactions, RBS lied to the buyer about the seller’s asking price (or vice versa), keeping the difference between the price paid by the buyer and the price paid to the seller for RBS. In other transactions, RBS misrepresented to the buyer that bonds held in RBS’s inventory were being offered for sale by a fictitious third-party seller, which allowed RBS to charge the buyer an extra, unearned commission. Second, RBS instructed its RMBS and CLO traders in, and caused them to use, fraudulent trading practices. Third, RBS lied to victims who detected or suspected that they had been the victims of fraud. Fourth, RBS ignored or refused to act on complaints by its own employees who were not part of the scheme. Fifth, RBS used its purportedly independent proprietary trading operation, known as its “prop desk,” as an arm of its RMBS and CLO trading desk in order to deceive rival broker-dealers in trades, including by allowing its RMBS and CLO traders to direct the prop desk’s negotiations in the sale of bonds. Finally, RBS concealed its fraudulent conduct from its customers, and from its own employees who were not participants in the scheme, in order to prevent or delay discovery.
“For years, RBS fostered a culture of securities fraud,” said U.S. Attorney Daly. “Those in a position of authority taught and encouraged fraudulent trading practices. Worse, those supervisors and compliance personnel then took steps to prevent victims and honest RBS employees from discovering and exposing the scheme. After our joint investigation into fixed income trading began, RBS saw the error of its ways. RBS was able to avoid criminal charges in this case only because of its voluntary self-reporting and extraordinary cooperative efforts. By entering into this agreement, RBS has admitted the seriousness of its past criminal conduct and made a clean break. This is another step in our continuing joint effort to make clear to broker-dealers that lying to customers to increase profits is a crime, and that only by rooting out and reporting such misconduct on their own trading floors can they avoid significant criminal liability. We thank SIGTARP and Connecticut FBI for their excellent work on this important case.”
“This investigation uncovered that RBS officials committed a long-running scheme to increase profits by defrauding customers, including TARP banks,” said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program. “I applaud RBS's prompt decision to cooperate fully with SIGTARP’s investigation that, in addition to this settlement, helped lead to the convictions of an RBS trader and an RBS supervisor. RBS’s cooperation in SIGTARP’s investigation and subsequent actions to right this wrong are the correct response when federal law enforcement shows up. U.S. Attorney Deirdre Daly has my deep gratitude as she and her team have stood steadfast with SIGTARP as a leader in fighting RMBS crime related to TARP.”
“It is incredibly troubling that RBS supervisors participated in and encouraged lower level employees to commit securities fraud, then took steps to prevent honest employees from reporting their concerns,” said FBI Special Agent in Charge Ferrick. “Had RBS not decided to self-report and cooperate, it would have faced much harsher consequences for its egregious criminal conduct. The U.S. Attorney’s Office, SIGTARP and the FBI have forged a formidable partnership in our investigation into fraud in the RMBS and related markets.”
Under the terms of the non-prosecution agreement, which was entered into on October 25, 2017, RBS agreed to pay a penalty of $35 million and make restitution to victims of at least $9,091,317.14. This resolution takes into account RBS’s voluntary self-reporting, extensive and continuing commitment to cooperate, acceptance of responsibility for its and its employees’ conduct, and remediation efforts. The U.S. Attorney’s Office did not require RBS to retain an independent consultant to assess and improve RBS’s compliance and ethics program because RBS’s U.S. Asset-Backed Securities, Mortgage-Backed Securities and Commercial Mortgage-Backed Securities Trading group substantially ceased operations in March 2015 and RBS has already taken steps to reasonably prevent and detect further fraud.
The agreement announced today addresses only the corporate criminal liability of RBS Securities Inc., not potential criminal charges for any individual. The criminal investigation of individuals associated with RBS’s trading activities remains open.
On March 11, 2015, Matthew Katke, a registered broker-dealer and managing director at RBS, pleaded guilty to conspiracy to commit securities fraud and began cooperating with the government. On December 21, 2015, Adam Siegel, the Co-Head of U.S. Asset-Backed Securities, Mortgage-Backed Securities and Commercial Mortgage-Backed Securities Trading at RBS, pleaded guilty to the same charge and also began cooperating.
This matter is being investigated by the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Heather Cherry.
This case received support from the Financial Fraud Enforcement Task Force, a federal and state law enforcement effort focused on investigating and prosecuting significant financial crimes and on recovering proceeds for victims of financial crimes.
rbs_securities_npa.pdfPocatello Pair Plead Guilty to Federal Drug Trafficking ChargesRead the Press Release
POCATELLO – Lataya Anderson and Matthew Toombs, of Pocatello, pleaded guilty this week to possession of a methamphetamine with intent to distribute, U.S. Attorney Bart M. Davis announced. Anderson and Toombs were indicted by a federal grand jury in Pocatello on May 24, 2017.
According to court records, in March of this year, Anderson and Toombs sold just over 14 grams of methamphetamine to a confidential informant working with police investigators.
On April 27, 2017, Anderson and Toombs were arrested in Pocatello by the Idaho State Police Anderson had a vial containing approximately 3 grams of methamphetamine in her pocket. In Anderson and Toombs’ vehicle, police found 23 grams of methamphetamine, a digital scale with residue, a Phoenix Arms .22 caliber handgun, a drug ledger, approximately 2.8 grams of marijuana, small clean plastic baggies and a glass drug pipe.
The charge for possession of a methamphetamine with intent to distribute is punishable by up to 20 years in prison, a maximum fine of $1,000,000 and at least three years of supervised release.
Sentencing is set for January 18, 2018, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated through the combined efforts of the Bannock County Prosecutor’s Office, the Idaho State Police and the Eastern Idaho Partnership. The Eastern Idaho Partnership is a collaborative effort among local communities, law enforcement, the State of Idaho, and the U.S. Attorney for the District of Idaho. The Partners combine efforts to fund and support a Special Assistant United States Attorney, or “SAUSA.” The SAUSA, Bryan Wheat, works with local prosecutors and law enforcement to prosecute serious local crimes in federal court. The Partnership focuses its efforts on regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus that affect the southeast Idaho region.
Pittsburgh-Area Doctor Charged with Unlawfully Distributing OpioidsRead the Press Release
A suburban Pittsburgh physician has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and unlawfully distributing controlled substances, Acting United States Attorney Soo C. Song announced today. The indictment of Andrzej Kazimierz Zielke, 62, is the first since Attorney General Jeff Sessions announced the formation of the Opioid and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “An unprecedented crisis like this one demands an unprecedented response—and that’s why President Trump has made this a top priority for this administration," Sessions said. "This summer, I designated a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst--including Western Pennsylvania. These cases take on the supply of drugs and stop fraudsters from exploiting people suffering from addiction. Today, as President Trump unveils his plan to fight the opioid epidemic, we have filed the first charges by these prosecutors. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic.”
“Western Pennsylvania is experiencing some of the highest rates of overdose deaths in the nation,” added Acting U.S. Attorney Song. “In response, we in law enforcement aggressively target drug traffickers – both those who distribute on the street, and those who traffic under the guise of physicians writing excessive prescriptions.”
“Opioid-related health care fraud is a serious problem facing the Western Pennsylvania area today,” said FBI Special Agent in Charge Robert Johnson. “Doctors who betray their trust and authority for their own financial gain by prescribing Schedule II narcotics for purposes other than medical reasons are contributing to our nation’s opioid crisis. This indictment is indicative of the FBI’s intent to employ substantial resources to combat this national epidemic. The FBI Pittsburgh Division will continue to work with our law enforcement partners in a unified effort to address the local effects of this national trend.”
According to the 14-count indictment that was returned on October 24, Zielke is a medical doctor who owned and operated Medical Frontiers, which advertised as a holistic pain management practice, located in Gibsonia, Pennsylvania. The indictment alleges that on 13 occasions Zielke prescribed Schedule II narcotics - Oxycodone, hydrocodone, morphine sulfate and methadone – outside the usual course of professional practice and not for legitimate medical purpose. The indictment also alleges that Zielke conspired with others to distribute Schedule II narcotics. On October 5, Zielke was arrested on a criminal complaint. The complaint alleges that Dr. Zielke engaged in a pattern of illegally prescribing opioid painkillers to patients with no legitimate medical purpose and without examination, evaluation or testing.
According to the criminal complaint: Agents began investigating his practice based on information they received that Dr. Zielke was writing a large number of oxycodone prescriptions for people residing in the McKeesport, Pennsylvania area, and that some of these pills were being obtained by a narcotics dealer.
According to accounts of former employees and patients, Dr. Zielke charged approximately $250 cash for office visits and many of his patients traveled long distances to see him.
On October 11, 2017, the Pennsylvania State Board of Medicine issued a Temporary Suspension of Dr. Zielke’s license to practice medicine and surgery.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1 million, or both, for each count of the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of Attorney General, the U.S. Department of Health and Human Services, Office of Inspector General, United States Postal Inspection Service, the Internal Revenue Service – Criminal Investigations, the Food and Drug Administration, and the Pennsylvania Department of State, Bureau of Enforcement and Investigation, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Pittsburgh-Area Doctor Charged with Unlawfully Distributing OpioidsRead the Press Release
PITTSBURGH – A suburban Pittsburgh physician has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and unlawfully distributing controlled substances, Acting United States Attorney Soo C. Song announced today. The indictment of Andrzej Kazimierz Zielke, 62, is the first since Attorney General Jeff Sessions announced the formation of the Opioid and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “An unprecedented crisis like this one demands an unprecedented response—and that’s why President Trump has made this a top priority for this administration," Sessions said. "This summer, I designated a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst--including Western Pennsylvania. These cases take on the supply of drugs and stop fraudsters from exploiting people suffering from addiction. Today, as President Trump unveils his plan to fight the opioid epidemic, we have filed the first charges by these prosecutors. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic.”
“Western Pennsylvania is experiencing some of the highest rates of overdose deaths in the nation,” added Acting U.S. Attorney Song. “In response, we in law enforcement aggressively target drug traffickers – both those who distribute on the street, and those who traffic under the guise of physicians writing excessive prescriptions.”
“Opioid-related health care fraud is a serious problem facing the Western Pennsylvania area today,” said FBI Special Agent in Charge Robert Johnson. “Doctors who betray their trust and authority for their own financial gain by prescribing Schedule II narcotics for purposes other than medical reasons are contributing to our nation’s opioid crisis. This indictment is indicative of the FBI’s intent to employ substantial resources to combat this national epidemic. The FBI Pittsburgh Division will continue to work with our law enforcement partners in a unified effort to address the local effects of this national trend.”
According to the 14-count indictment that was returned on October 24, Zielke is a medical doctor who owned and operated Medical Frontiers, which advertised as a holistic pain management practice, located in Gibsonia, Pennsylvania. The indictment alleges that on 13 occasions Zielke prescribed Schedule II narcotics - Oxycodone, hydrocodone, morphine sulfate and methadone – outside the usual course of professional practice and not for legitimate medical purpose. The indictment also alleges that Zielke conspired with others to distribute Schedule II narcotics. On October 5, Zielke was arrested on a criminal complaint. The complaint alleges that Dr. Zielke engaged in a pattern of illegally prescribing opioid painkillers to patients with no legitimate medical purpose and without examination, evaluation or testing.
According to the criminal complaint: Agents began investigating his practice based on information they received that Dr. Zielke was writing a large number of oxycodone prescriptions for people residing in the McKeesport, Pennsylvania area, and that some of these pills were being obtained by a narcotics dealer.
According to accounts of former employees and patients, Dr. Zielke charged approximately $250 cash for office visits and many of his patients traveled long distances to see him.
On October 11, 2017, the Pennsylvania State Board of Medicine issued a Temporary Suspension of Dr. Zielke’s license to practice medicine and surgery.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1 million, or both, for each count of the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of Attorney General, the U.S. Department of Health and Human Services, Office of Inspector General, United States Postal Inspection Service, the Internal Revenue Service – Criminal Investigations, the Food and Drug Administration, and the Pennsylvania Department of State, Bureau of Enforcement and Investigation, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Opening Statement by U.S. Attorney R. Trent Shores before the Senate Committee on Indian AffairsRead the Press Release
Chairman Hoeven, Vice-Chairman Udall, and Members of the Committee: Thank you for the opportunity to testify before you today about three important bills pertaining to critical justice issues in Indian Country: S. 1870, Securing Urgent Resources Vital to Indian Victim Empowerment Act 2017; S. 1953, Reauthorization of the Tribal and Law Order Act of 2010; and S. 1942, “Savanna’s Act.” It is truly an honor to be here, not only as a United States Attorney representing the Justice Department, but also as an Oklahoman and as a member of the Choctaw Nation of Oklahoma. I began my legal career at the Department’s Office of Tribal Justice, meeting with tribal leaders from across the Country and even helping to draft testimony for officials who testified before this Committee.
Fifteen years later, I am an experienced career prosecutor who has seen firsthand the very real challenges that these bills seek to address. As I reviewed the content of these bills, I am confident that we can—and will—work together to improve public safety in Native communities. It is our duty to do so as we seek to uphold our federal trust responsibility.
The three bills address some of the biggest threats to public safety in Native communities. Violent crime and substance abuse occurs at higher rates in Indian country than anywhere else in the United States. That is unacceptable. There are not enough resources to cover all of the needs of law enforcement and victim service providers working in and around Indian country. Too many correctional facilities in Indian country are overcrowded or substandard such that they cannot maintain sight and sound separation between adult and juvenile detainees. Furthermore, the need for treatment services is widespread and urgent. Like many areas of our Country, Indian communities have been plagued by the scourge of the opioid epidemic. We must improve our services and programs for Native juveniles involved in the justice system, and we need better law enforcement tools and techniques to respond to cases of missing and murdered Native peoples, especially Native women.
As the United States Attorney in the Northern District of Oklahoma, and throughout my years of experience working on tribal justice issues, I have seen and heard from tribal leaders, law enforcement, social service providers, and victims about the challenges that exist on-the-ground in Native communities. There are 39 federally recognized tribes in Oklahoma, and 14 of those are in my District. We have large tribes like the Cherokee Nation and Muscogee (Creek) Nation and smaller tribes such as the Pawnee, Miami, or Delaware Tribes. We prosecute a diverse array of violent crimes and encounter too many victims who do not have the resources they so desperately need.
As a federal prosecutor, I have stood next to a hospital bed while a victim of domestic violence recounted the horrific details of how her lip was busted, her head concussed, her tooth knocked out, her arm broken, and her eye blackened. I listened to her cry as she explained that her boyfriend had flown into a fit of rage. I remember learning that the boyfriend had a history of domestic violence and that multiple women had sought protective orders against him. And I remember the disappointment when the victim notified us that she did not want to testify for fear of repercussions. While we were still able to successfully prosecute the boyfriend in this case, far too often tribal, state, and federal prosecutions of domestic violence offenders are unsuccessful because of witness and evidentiary problems. In this and similar moments, it was crucial that I had with me federal and tribal law enforcement agents and a victim-witness specialist to ensure that we met the needs of the prosecution and the victim. Multi-jurisdictional and multi-disciplinary teams are important in these types of cases, just as they also are in sexual assault and child sexual assault prosecutions.
In 2008, I sat on the floor of a doublewide trailer in rural Oklahoma with a BIA investigator and Cherokee Nation Marshal as we tried to build rapport with a twelve-year-old girl who had been repeatedly raped by her father for a period of years. The victim had been so victimized that she communicated by adopting the characteristics of horses, that is, she whinnied, snorted, and stamped her feet. You see, the horses in the field behind her house were the only thing in her life that had not hurt her. They were her friends. After months of intense work with our prosecution team and counselors, that same little girl—and two of her friends who had also been raped by her father—bravely testified in front of a jury and in front of her father. He was found guilty and is now spending life in a federal penitentiary.
Members of the Committee, there are many more cases like these—domestic violence, sexual assaults, child abuse—that require resources to be successfully investigated and prosecuted, and to help give a voice to victims. These bills seek to provide some of those critical resources and I thank you.
Thanks to the ongoing efforts of this Committee, federal agencies, and the Tribes, we are making progress in improving public safety in Native communities. Since the passage of the Tribal Law and Order Act of 2010 we are making progress in ensuring that Tribes are able to access law enforcement databases, which is critical to meeting public safety needs. We have expanded funding and training opportunities, established more productive protocols based on our government-to-government relationship with the Tribes, and have sought to be more clearly accountable for our efforts.
In the Northern District of Oklahoma, I am blessed to have a great relationship with the fourteen federally recognized tribes. My Tribal Liaison, Shannon Bears Cozzoni, regularly travels to Indian Country where, together with other federal prosecutors, she provides a variety of training to tribal law enforcement officials to help them obtain Special Law Enforcement Commissions to enforce federal law in Indian Country. As a former tribal liaison myself, I can assure you this position is crucial for United States Attorney’s Offices and there are no more dedicated advocates for justice in Indian Country. The funding of training programs for tribal law enforcement through District-focused initiatives and the National Advocacy Center serves to improve the investigative skills of law enforcement, social service providers, and prosecutors working in Indian Country. Similarly, the creation of the Native American Issues Coordinator at the Executive Office for United States Attorneys and the formal establishment of the Office of Tribal Justice has given United States Attorneys with Indian Country in their Districts an ever-present voice in the halls of the Justice Department in DC even when we are not physically present. The Tribal Law and Order Act of 2010 has been good for Indian Country and good for those of us working to ensure justice in Indian country.
Each bill proposes new methods and refined approaches to addressing major threats to public safety. Savanna’s Act addresses a tragic set of cases: missing and murdered individuals, often women, in Indian country. The Department of Justice supports the goals of this bill and the effort to take on this dark and tragic issue. We have identified some technical issues in the course of our review. For example, Section 1 of the bill references the Automated Integrated Fingerprint Identification System, which has been replaced with the Next Generation Identification System. We welcome the opportunity to work with your staffs to assist in making some technical adjustments.
The SURVIVE Act addresses a long-time issue in Indian country: a lack of resources to support the level of victim services warranted by the levels of violent crime in Indian country. The importance of providing effective services to victims of crime cannot be overstated. From any angle—humanitarian, law enforcement, community relations—it is both right and necessary. A number of the Department of Justice comments on an earlier version of this Act were incorporated into the current bill, which we recognize and appreciate. We note that the Act includes a consultation requirement. In fact, the Department, through the Office for Victims of Crime, has already begun making plans for formal consultations and listening sessions with tribes, with the first listening session having occurred in Milwaukee on October 18, 2017. Our review of this bill is ongoing, and welcome discussion with your staffs as we make progress towards a formal Administration response.
The Tribal Law and Order Act of 2010 was a significant and extremely positive piece of legislation. As a result of that legislation, the Department of Justice is making significant progress on improving public safety in Indian country. This Committee has received previous testimony from this Department on the many ways that the 2010 Tribal Law and Order Act altered and improved the way that we work in Indian country and with our federal partners and we agree with the Committee’s efforts to do more. Our review of this bill is also ongoing, so while we do not yet have a formal position to offer we do applaud efforts to compel greater improvements in law enforcement, data sharing, and justice for Native American and Alaska Native children. We are particularly heartened that you intend to extend the Bureau of Prisons pilot project and included support for our Tribal Access Program, which will help us expand that opportunity to more Tribes.
In our review, we noted a recurring effort to improve data collection and information sharing. The Department is unequivocally in favor of efforts to improve collection of and access to data whenever we can do so without harming victim confidentiality or jeopardizing an investigation. We are working internally to find immediate opportunities for improvement. And we will continue to work with our partner agencies, with Tribes, and with your staffs on data collection and information sharing issues.
The Department is actively engaged in efforts to address the specific challenges described in the bills and is committed to working with Congress, other federal agencies, and Tribes to more effectively address them. We seek, whenever possible, to expand Tribes’ opportunities for funding, training, and technical assistance. Our partnerships with Tribes and with other agencies active in Indian country are an integral part of our daily work, which we continually review to ensure that our work is productive and focused on the needs of the Tribes.
While we have further to go, we are far ahead of many nations in recognizing and protecting the rights of native peoples. Around the world, indigenous peoples are marginalized, exploited, or threatened with death—denied basic human rights, women abused, indigenous cultures destroyed, languages lost. With your continued leadership, the United States can lead by example to promote and protect the inherent rights of indigenous people. Recently, missing and murdered indigenous women was a topic of discussion during a June meeting of the Attorneys General for the U.S., Canada, Mexico, United Kingdom, New Zealand and Australia. In that meeting, Attorney General Sessions voiced support for the creation of a working group that would allow us to expand our partnerships in addressing this grievous issue.
As indicated earlier, the Department of Justice fully supports the goals of these three bills. The bills under discussion today are clearly intended to spur further progress, specifically in support of law enforcement, in providing effective services to victims of crime, and in shedding light on the tragic number of missing and murdered individuals in Indian country. The Department’s review of the bills is ongoing; some offices have already reached out to discuss some of the technical aspects of the bills, and we welcome the opportunity to continue working with your staffs to refine language.
We have made great progress, but we know we have a ways to go before we reach our shared goal of achieving lasting public safety in Indian country. We appreciate the efforts by this Committee to ensure that legislation affecting Native communities puts Federal, State, and Tribal agencies in the best possible position to overcome barriers to public safety. Thank you again for the opportunity to appear before you today. Thank you also for the opportunity to share with you some perspective from the United States Attorney’s Office in the Northern District of Oklahoma. I am happy to answer any questions you may have.October 28th Is National Prescription Drug Take Back DayRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that October 28th is National Prescription Drug Take Back Day and the Drug Enforcement Administration (DEA) has partnered with state, local and tribal law enforcement agencies to give the public an opportunity to prevent pill abuse and theft by safely disposing prescription drug medications at designated locations. The one-day event will be held from 10:00 a.m. to 2:00 p.m. at designated collections sites across the district, and it is an effort to rid homes of potentially dangerous, expired, unused and unwanted prescription drugs.
“Prescription drug abuse has reached epidemic proportions in our country, including in this district. Prescription drugs are the second most commonly used category of drugs, behind marijuana and ahead of cocaine, heroin, and methamphetamine combined. They are highly addictive and can devastate families that may suffer from the deadly overdose of a loved one. Prescription Drug Take Back Day offers an opportunity to remove potentially harmful medications from our homes and to dispose of them in a safe and environmentally responsible manner,” said U.S. Attorney Rose.
Last April, the DEA collected over 26,420 pounds of unwanted prescription drugs in North Carolina. On a national level, Americans turned in 450 tons (900,000 pounds) of prescription drugs. Overall, in its 13 previous Take Back events, DEA and its partners have collected over 8.1 million pounds – more than 4,050 tons – of pills. The disposal service is free and anonymous. The DEA cannot accept liquids, needles, or sharps, only pills or patches.
Rates of prescription drug abuse in the United States 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. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers. This initiative addresses the public safety and public health issues that surround medications stored in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
In addition, Americans are advised that their usual method of disposing unwanted medicines – flushing them down the toilet or throwing them in the trash – pose potential safety and health hazards. Take Back events ensure environmentally responsible disposal of unwanted prescription medications.
For more information or to locate a collection site near you, go to the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov//#collection-locator where you can search by zip code, city, or state, or by calling 800-882-9539.
The U.S. Attorney’s Office and DEA encourage parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting the DEA’s interactive websites at https://www.justthinktwice.gov, https://www.getsmartaboutdrugs.gov and http://www.dea.org.
Notice of Press ConferenceRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, will hold a press conference following the conclusion of Magistrate Court on Friday, October 27. The conference will announce the indictment of Jason Paul Schaefer, and discuss the involvement of the Joint Terrorism Task Force in the successful investigation of the case. Other speakers will include Oregon FBI Special Agent in Charge Loren Cannon and Washington County Sheriff Pat Garrett.
Date
Friday, October 27, 2017
Time
Set up beginning at 2:00PM. Conference will begin between 2:30-2:45PM.
Location
United States Attorney’s Office
Main Conference Room – Sixth Floor Mark O. Hatfield United States Courthouse 1000 SW Third Ave., Suite 600
Portland, OR 97204
Access
All credentialed media are invited to attend and required to display valid photo identification to gain entry into the courthouse and the United States Attorney’s Office.
Please limit attendance to a maximum of three individuals from any one media outlet.
Photo/Video
Credentialed media are invited to use camera and audio equipment during the press conference. Use of camera and audio equipment is otherwise prohibited in the federal courthouse.
Contact
Scott Asphaug
First Assistant United States Attorney
United States Attorney’s Office – District of Oregon [email protected] | (503) 727-1008
Norwalk Man Pleads Guilty to Tax Fraud OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that EDDIE CHAN, 57, of Norwalk, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of making a false statement on a federal income tax return.
According to court documents and statements made in court, CHAN was employed as a bookkeeper for a private art firm located in New York City. Between 2013 and 2015, CHAN withdrew funds from the firm’s business accounts without authorization from his employer, and used the money for personal expenses. CHAN failed to declare a total of $271,166 in misappropriated funds on his federal income tax returns for 2013 and 2014, resulting in a loss of $78,214 to the Internal Revenue Service.
Judge Meyer scheduled sentencing for January 18, 2018, at which time CHAN faces a maximum term of imprisonment of three years and a fine of up to $100,000. He also has agreed to cooperate with the IRS to pay all outstanding taxes, interest and penalties.
CHAN was released on bond pending sentencing.
This case is being investigated by the Internal Revenue Service – Criminal Investigation Division and in being prosecuted by Assistant U.S. Attorney David J. Sheldon.
New York Man Charged with Attempted Sex TraffickingRead the Press Release
Malik Palin, a/k/a “Gambino,” 26, of New York, New York, was charged today by Indictment with attempted sex trafficking of a minor, announced Acting United States Attorney Louis D. Lappen.
If convicted, the defendant faces a mandatory minimum sentence of 10 years in prison, a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michelle Morgan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
New Haven Man Arrested on Drug Distribution Charges Stemming from OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CURTIS DRAUGHN, also known as “Kirk,” 62, of New Haven, was arrested yesterday on a criminal complaint charging him with distributing controlled substances.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
DRAUGHN appeared today before U.S. Magistrate Judge Joan G. Margolis in New Haven and was released on a $100,000 bond.
As alleged in court documents, on December 22, 2016, New Haven Police and emergency medical personnel responded to a 911 call indicating that a man who had suffered an apparent overdose was found unconscious and slumped over the steering wheel in a parked car on Read Street. First responders transported the victim to the hospital where he was placed on life support. At the scene, officers seized several glassine baggies containing powder, several discarded empty baggies, other narcotics and drug paraphernalia. A subsequent test of the powder in the baggies revealed the presence of fentanyl.
The victim, who was 33, was taken off life support and died on December 26, 2016.
It is alleged that the victim purchased heroin from DRAUGHN shortly before he died.
Between May and August 2017, investigators made three controlled purchases of heroin from DRAUGHN.
The complaint charges DRAUGHN with possession with intent to distribute, and distribution of, controlled substances, and conspiracy to distribute controlled substances. Both offenses carry a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the New Haven Police Department. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Milford Man Pleads GuiltyTo Drug Trafficking ChargesRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Harry Bolton, 63, of Milford, New Hampshire, pleaded guilty in federal court today to 11 counts of cocaine distribution.
According to court filings and statements in court, Bolton sold cocaine to a cooperating individual on 11 separate occasions. The transactions occurred at locations in Bedford, Goffstown, Milford, Weare, and Wilton, New Hampshire. Bolton is the president of Milford & Company Motorcycle Club.
A sentencing hearing has been scheduled for February 1, 2018.
“The U.S. Attorney’s Office is working each day with our law enforcement partners to combat drug trafficking in New Hampshire,” said Acting U.S. Attorney Farley. “Those who choose to sell drugs in the Granite State will be held accountable for their conduct.”
“This case is another great example of our continued efforts to disrupt and dismantle the criminal behavior of outlaw motorcycle gangs, which can promote illicit drug trafficking and bring violence into our neighborhoods,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “I'm proud of the hard work and long hours the members of the FBI's Safe Streets Gang Task Force put into this case. We are committed to working as a law enforcement team and maximizing our resources in order to protect the citizens of the Granite State."
The case was investigated by the FBI New Hampshire Safe Streets Gang Task Force, which is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the Police Departments of Hudson, Manchester, and Nashua. This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Middlesex County, New Jersey, Man Arrested for Using Phony Payments, False Identity Theft Claims to Obtain FundsRead the Press Release
NEWARK, N.J. – An Old Bridge, New Jersey, man was arrested today for allegedly using phony payments and false identity theft claims to deceive credit card companies and banks into giving him funds and credit, Acting U.S. Attorney William E. Fitzpatrick announced.
Sandy John Masselli, 55, is charged by complaint with two counts of bank fraud and two counts of wire fraud. FBI agents arrested Masselli at his residence this morning. Masselli is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint:
From June 2014 through July 2017, Masselli engaged in three separate but related schemes to fraudulently obtain credit and funds from various credit card companies and two brokerage firms.
In one scheme, Masselli opened accounts with certain credit card companies, made purchases with these accounts until he had almost reached or exceeded the credit limit, and then sent payments from bank accounts that he knew did not have sufficient funds to cover the purchases. Before the fraudulent payments were rejected for insufficient funds, the credit card companies temporarily credited Masselli’s accounts based on those payments, providing him access to additional credit and allowing him to continue to make purchases. Masselli failed to pay these balances and the credit card companies sustained substantial losses.
In another scheme, Masselli opened credit accounts with two credit card companies, made thousands of dollars in purchases, and then falsely represented to these credit card companies that the accounts had been opened fraudulently and used without his authorization, causing these companies to close the accounts and sustain losses.
As part of a third scheme, Masselli attempted to deposit more than $600,000 in checks from a closed account into a new brokerage account, which he then tried to use for various personal expenses. Those transfers were unsuccessful because the checks he deposited were ultimately returned as unpaid.
The bank fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mexican National Sentenced to Five Years for Federal Drug Trafficking and Illegal Re-Entry ConvictionRead the Press Release
ALBUQUERQUE – Rogelio Delgado, 25, a Mexican national illegally residing in Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in prison for his conviction on methamphetamine trafficking and illegally re-entry charges. Delgado will be deported after completing his prison sentence.
Delgado was arrested on Nov. 17, 2016, on a criminal complaint charging him with possession of a firearm by an illegal alien and possession of methamphetamine with intent to distribute on Nov. 16, 2016, in Chaves County, N.M. According to the complaint, law enforcement officers seized 4.05 pounds of methamphetamine, drug paraphernalia, a handgun and ammunition during the execution of a search warrant at Delgado’s residence.
On April 14, 2017, Delgado pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and re-entry of a removed alien. In entering the guilty plea, Delgado admitted that on Nov. 16, 2016, law enforcement officers found approximately 1.8 kilograms of methamphetamine in his residence while executing a search warrant, and acknowledged that it was his intention to sell the drugs to others. Delgado also admitted that he was a citizen of Mexico without any legal right to be present in the United States and previously had been removed from the United States on June 13, 2013.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chaves County Metro Narcotics Task Force. Assistant U.S. Attorney John Balla prosecuted the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that LUIS CHAVEZ-LOPEZ, age 31, a native of Mexico, pled guilty yesterday to a one-count Indictment for illegal reentry of a removed alien.
According to court documents, CHAVEZ-LOPEZ was previously removed from the United States on February 5, 2015. He was found in the Eastern District of Louisiana on May 3, 2017, without permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter the country. CHAVEZ-LOPEZ re-entered the United States after being convicted of Possession with Intent to Distribute Marijuana in Jefferson Parish. CHAVEZ-LOPEZ’s conviction occurred on June 1, 2009.
CHAVEZ-LOPEZ faces a maximum term of imprisonment of twenty years in prison, a fine of $250,000, three years of supervised release, and a $100 special assessment fee. U.S. District Judge Susie Morgan set sentencing for January 24, 2018.
Acting U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
Massive Sentence Imposed for Pasadena Bank RobberyRead the Press Release
HOUSTON – A Houston man will be serving more than 40 years in prison for the attempted robbery and robbery of the Shared Resources Credit Union and for using and carrying a firearm during commission of the crimes, announced Acting U.S. Attorney Abe Martinez. A federal jury deliberated for less than five hours before convicting Raynard Gray, 34, and Sonny Pervis, 28, March 23, 2017, on all counts as charged following a three-day-trial.
Today, U.S. District Judge Sim Lake handed Pervis a total sentence of 485 months in federal prison – 125 months for the robberies in addition to five years for the first firearms charge and another 25 years for the second which must be served consecutively to each other and to the bank robbery sentences. Following completion of his more than 40-year prison term, he will serve five years of supervised release. The sentence was enhanced due to the reckless endangerment during flight. The judge found that following the robbery, Pervis aided and abetted the high speed chase and fired his weapon at a civilian in a nearby neighborhood.
Gray’s hearing was continued to a later date.
A total of seven men met and planned the robbery of the credit union. At trial, the jury heard Gray was the leader of this robbery crew and acted as a lookout during the robberies, while Pervis was one of the men who entered the credit union and brandished and discharged a firearm.
They arrived at the bank first on Saturday, July 26, 2014, with the intention of committing the robbery. The jury heard that employees inside the bank observed the men with the firearms as they approached. However, the doors to the lobby were locked so the crew left, but returned two days later to complete the crime.
The men fled the scene after stealing the money on July 28. A civilian followed them in order to give police the vehicle information of the robbers, during which time Howard Glaze, 24, of Houston, and Pervis discharged their firearms in a neighborhood in his direction. The group then led officers on a high-speed chase from Pasadena to north Houston, where they abandoned their vehicle and fled on foot. Glaze was soon apprehended. The investigation later led to the discovery and arrest of the others.
During trial, the jury saw surveillance videos, photos and police dash camera footage of the high speed chase and heard testimony from 12 witnesses. They also heard from a sergeant with the Pasadena Police Department who collected cash, bank straps and clothing of the robbers from the abandoned vehicle. The officer was also able to lift a fingerprint off a trash bag found in that vehicle, which belonged to Pervis.
The defense did not dispute that the robberies occurred, but contended that Pervis and Gray were not involved. The jury was not convinced and convicted them on all charges.
Pervis and Gray and Braziel will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The remaining five co-defendants - Keith McGee, 27, Glaze, Kwhun Johnson, 25, Leroy Richardson, 37, and Chris Braziel, 30, all of Houston, had pleaded prior to trial. McGee was ordered to serve a sentence of 140 months, while Richardson, Johnson and Glaze received respective sentences of 130, 60 and 130 months imprisonment. Braziel is set for sentencing Feb. 15, 2018.
The FBI and police departments in Pasadena and Houston conducted the investigation. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case.
Maryland Man Sentenced for Medicaid Fraud, Tax EvasionRead the Press Release
RICHMOND, Va. – A Maryland man was sentenced today to 37 months in prison for conspiring to defraud Medicaid and evading both his personal income taxes and his company’s employment taxes.
Lamar Taylor, 39, of Bowie, pleaded guilty to conspiracy to commit health care fraud, and tax evasion, on August 4. According to court documents, Taylor was the owner and operator of Alexandria-based Global Interventions, LLC, a business that marketed itself as a provider of therapeutic treatment services for at-risk children. Taylor obtained contracts with Alexandria City Public Schools and Hopewell City Public Schools, becoming an approved Medicaid-contracted service provider for mentoring services to at-risk youth. Between April 2014 and September 2016, Taylor billed Alexandria City Public Schools and Hopewell City Public Schools for hundreds of therapeutic day treatment sessions with at-risk youth that did not take place, receiving approximately $595,000 in fraudulently obtained Medicaid funds. Taylor also evaded paying over his personal income taxes and Global’s employment taxes from 2012 to 2015, resulting in a tax evasion liability of approximately $398,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Thomas A. Garnett and David V. Harbach II prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-101.
Manhattan Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Manuel Clemente, age 62, of Manhattan, New York, pled guilty today to conspiring to distribute cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his plea, Clemente admitted that he worked with others to distribute cocaine in New York City and Schenectady, New York. Clemente also admitted that when he was arrested on May 30, 2017 in Manhattan, he was providing approximately $12,000 to a conspirator in exchange for approximately 190 grams of cocaine.
Clemente’s prosecution is part of a takedown of a Capital Region drug trafficking ring that led to charges against 12 other defendants, all of which remain pending.
Clemente faces up to 20 years in prison, a maximum $1 million fine, and a term of post-imprisonment supervised release of at least 3 years and up to life when he is sentenced by United States District Judge Mae A. D’Agostino on February 22, 2018 . 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 case is being investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, Schenectady County District Attorney’s Office, the U.S. Drug Enforcement Administration, Albany County Sheriff’s Office, New York State Police, and the New York Department of Corrections and Community Supervision. This case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Manchester Man Pleads Guilty to Drug Trafficking and Firearms ChargesRead the Press Release
CONCORD, N.H. - Kaisle J. Raikes, 25, of Manchester, pleaded guilty in federal court to drug trafficking and firearms charges, Acting United States Attorney John J. Farley of the District of New Hampshire announced today.
According to court documents and statements made in court, beginning on or about May 16, 2017 through May 31, 2017, on three separate occasions, Raikes sold methamphetamine to a confidential informant working with the Manchester Police Department. Raikes had firearms displayed during two of the drug transactions. At the time of his arrest, Raikes had drugs on his person as well as a loaded firearm in his sock. The Manchester Police Department subsequently executed a search warrant at Raikes’ apartment and seized two loaded firearms, ammunition, and quantities of methamphetamine, cocaine, and Suboxone.
Raikes pleaded guilty to three counts of distribution of a controlled substance, one count of possession with intent to distribute a controlled substance, one count of being a felon in possession of a firearm, and one count of possession of a firearm in furtherance of a drug trafficking crime,
Raikes is scheduled to be sentenced on February 1, 2018.
“The U.S. Attorney’s Office is committed to working with our law enforcement partners to stop drug trafficking and violent crime,” said Acting U.S. Attorney Farley. “Guns and drugs are a potentially lethal combination that can threaten the safety of our communities. This case is an example of our ongoing effort to target those who commit gun-related crimes.”
This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man Sentenced to 6 1/2 Years in Prison for Illegal Marijuana Grow Operations at Two Las Vegas HousesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced Wednesday to 78 months in prison for maintaining two Las Vegas houses that he converted into illegal indoor marijuana grow operations, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Jian Guo Han, 66, was convicted by a jury in July of one count of conspiracy to manufacture marijuana and one count of manufacturing marijuana. United States District Judge James C. Mahan presided over the jury trial and sentencing hearing.
According to documents filed with the court, during an investigation into a concerned citizen’s report, law enforcement observed unlawful modifications to a house that were indicative of an indoor marijuana grow operation. During the execution of a search warrant, police discovered over 500 marijuana plants and evidence which led law enforcement to a second house. This house was also converted into an indoor marijuana grow operation and had three rooms dedicated to growing marijuana. A total of 342 marijuana plants and 210 marijuana clones, or cuttings from a mature cannabis plant, were found at the second house.
The investigation was conducted by the Las Vegas Metropolitan Police Department.
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Man Admits Smuggling Chocolate-Covered Heroin into Newark Liberty International AirportRead the Press Release
TRENTON, N.J. – A Guatemalan citizen today admitted transporting three kilograms of heroin that had been coated in chocolate in a failed attempt to bring the drugs undetected through Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced.
Jacobo Leonel Orellana-Estrada, 21, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of possession with intent to distribute more than one kilogram of heroin.
According to the documents filed in this case and statements made in court:
On June 11, 2017, Orellana-Estrada arrived at Newark Liberty International Airport as a passenger aboard a commercial airline flight from Guatemala City, Guatemala. U.S. Customs and Border Protection (CBP) officers stopped Orellana-Estrada at customs inspection and searched his luggage. In one of his bags, they discovered what appeared to be six small single-layer cakes that were actually packages of heroin coated in a thin layer of chocolate and wrapped in paper.
The count of possession with intent to distribute more than one kilogram of heroin carries a maximum potential penalty of life in prison. Sentencing is scheduled for Jan. 29, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of CBP, under the direction of Acting Director of Field Operations Leon Hayward, New York Field Office, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Newark Field Office, under the direction of Acting Special Agent in Charge Debra Parker, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Narcotics/OCDETF unit of the U.S. Attorney’s Office in Newark.
Defense counsel: .Kevin Carlucci, Esq., Assistant Federal Public Defender
Maine Fisherman Sentenced for Illegally Trafficking American EelsRead the Press Release
Richard D. Austin was sentenced to 24 months’ imprisonment yesterday for trafficking juvenile American eels (also called “elvers” or “glass eels”) in violation of the Lacey Act, following a hearing in federal district court in Norfolk, Virginia. The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and United States Attorney for the Eastern District of Virginia, Dana J. Boente.
In April 2017, Austin, who has several previous wildlife-related convictions, pleaded guilty to violating the Lacey Act by selling elvers in interstate commerce that he had harvested illegally in Virginia and Massachusetts. Court documents indicate that Austin trafficked at least 147 pounds of elvers, which is approximately 300,000 individual eels, and worth more than $162,000. Austin sold these eels to exporters, who then exported them from the United States to international markets.
“Illegal harvesting and trafficking of wildlife represents a dire threat to our critical ecosystems,” said U.S. Attorney Boente. “This case reaffirms our commitment to protecting Virginia’s natural resources for future generations.”
"Today's sentencing sends a strong message to those who choose to exploit and illegally traffic our native wildlife," said U.S. Fish and Wildlife Service Acting Chief of Law Enforcement, Ed Grace. "We appreciate the dedication of the Department of Justice, and our partners involved in this case, and will continue to work with federal, state, and local conservation law enforcement officials to combat the illegal wildlife trade."
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in these populations. As a result, harvesters have turned to the American eel to fill the void. American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver and grow to adulthood in fresh water. Elvers are exported for aquaculture in East Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to East Asia for more than $2,000 per pound.
Because of the threat of overfishing, Atlantic Coast states have cooperatively prohibited elver harvesting in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities. Other Atlantic coast states, including Virginia, have commercial fisheries for adult or “yellow” eels.
This case was the result of “Operation Broken Glass,” a multi-jurisdiction U.S. Fish and Wildlife Service investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for 18 individuals whose combined conduct resulted in the illegal trafficking of more than $5 million worth of elvers.
“In this operation, we are actively partnering with state and federal law enforcement agencies in order to protect our nation's marine resources from further exploitation.” said Acting Assistant Attorney General Wood.
Operation Broken Glass was conducted by the U.S. Fish and Wildlife Service and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller, and Assistant United States Attorney Joseph Kosky.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to racketeering conspiracy involving murder, attempted murder, and armed robbery. Defendant admitted responsibility for murdering an innocent bystander, attempted murder of rival gang member and armed robbery.
Hector Ramires, a/k/a “Cuervo,” 24, a Honduran national formerly of Chelsea, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Jan. 19, 2018. According to the terms of the plea agreement, the parties will jointly recommend a sentence of 27 years in prison.
Ramires was a member of MS-13’s Enfermos Criminales Salvatrucha (ECS) clique, which operated in Chelsea and other parts of Massachusetts. On Oct. 18, 2014, Ramires and Bryan Galicia Barillas a/k/a “Chucky,” a fellow member of MS-13’s ECS clique, were walking the streets of Chelsea when they encountered a group of rival gang members. Ramires, who was armed, shot at one of the gang rivals and missed, killing a woman who was an innocent bystander who was looking out a nearby window of a room she shared with her three children. Barillas was also charged and previously pleaded guilty to, among other things, providing Ramires with the gun.
Ramires also accepted responsibility for his role in a March 28, 2014, attempted murder of a rival gang member in Chelsea, and an April 9, 2014, armed robbery in Chelsea.
After a three-year investigation, Ramires was one of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in Massachusetts.
Ramires is the 22nd defendant to plead guilty in this case and will subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; Somerville Police Chief David Fallon; and Herndon (Va.) Police Chief Maggie A. DeBoard made the announcement.
The details contained in the charging documents are allegations. All remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Los Angeles Man Found Guilty of Federal Narcotics Conspiracy Involving the Opioid AcetylfentanylRead the Press Release
LOS ANGELES – A resident of downtown Los Angeles was found guilty this afternoon of federal drug trafficking charges for participating in a conspiracy that imported acetylfentanyl, a drug very similar to fentanyl, which is a powerful and highly addictive opioid. Acetylfentanyl, which is five times more potent that heroin, is not approved for any use in the United States.
Christopher Bowen, 31, was found guilty by a federal jury of conspiracy to manufacture, possess with intent to distribute, and distribute four narcotics, specifically: acetylfentanyl; a-pyrrolidinovalerophenone, a so-called designer drug also known as “PVP” that is sometimes used in “bath salts”; ecstasy (MDMA); and alprazolam, which is sold under the brand name Xanax.
Bowen was also found guilty of possession of acetylfentanyl with intent to distribute.
The evidence presented during a two-day trial in United States District Court showed that Bowen and other members of the drug organization imported acetylfentanyl from China, which they then used to produce homemade pills designed to look like pharmaceutical products. Bowen and his co-conspirators then distributed the pills in bulk across the nation.
The drug organization also obtained pill presses from China that were used illegally to make tablets in labs in a storage unit in Long Beach and a house in Baldwin Park. During the investigation, DEA agents seized more than 9 kilograms of acetylfentanyl from the organization.
Bowen is scheduled to be sentenced by United States District Judge S. James Otero on January 22, 2018. At the time of sentencing, Bowen will face a statutory maximum penalty of 20 years in federal prison for each of the two counts.
The jury that convicted Bowen also acquitted him of possession with intent to distribute acetylfentanyl that was found in his apartment.
The leader of the organization – Gary Resnik, 32, of Long Beach – pleaded guilty in August and is scheduled to be sentenced by Judge Otero on February 26, 2018.
This case was investigated by the special agents with the Drug Enforcement Administration.
This case is being prosecuted by Assistant United States Attorneys Michael G. Freedman and David Ryan of the General Crimes Section.
Lloyd Aguon Sentenced to Prison in Firearm CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant LLOYD JOHN AGUON, age 41, from Umatac, Guam, was sentenced on October 25, 2017 in District Court to a 18-month term of imprisonment with credit for time served, to be followed by 3 years of supervised release, and 50 hours of community service, for being a Felon in Possession of Firearms and Ammunition. The Court also ordered Defendant LLOYD JOHN AGUON to pay a mandatory $100 assessment fee.
On April 19, 2017, Defendant LLOYD JOHN AGUON entered a guilty plea to Count 1 of an Indictment, charging him with being a Felon In Possession of Firearms and Ammunition, in violation of Title 18, United States Code § 922(g)(1). Defendant had been previously convicted in the Superior Court of Guam for Family Violence (As a Third Degree Felony and Terrorizing (As a Third Degree Felony). It is unlawful for individuals previously convicted of a crime punishable by imprisonment for a term exceeding one year to possess any firearm or ammunition, which has been transported in interstate or foreign commerce. Upon assisting a team of Guam Marshals and Guam Probation with a local arrest warrant for Defendant LLOYD JOHN AGUON in September 2015, the Federal Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) investigation discovered two 12 Gauge Shotguns and 14 rounds of ammunition. ATF’s further investigation revealed that one of the firearms, a 12 Gauge Remington Shot Gun, had been previously reported stolen to the Guam Police Department.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.
Leader of Major Heroin and Cocaine Drug Rings Pleads Guilty to ConspiracyRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that Aaron Clark, 36, of Little Rock, has pleaded guilty to his involvement in a major conspiracy to distribute heroin.
Clark, also known as “Black,” entered his guilty plea today before United States District Court Judge James M. Moody, Jr., who will sentence Clark at a later date.
A federal grand jury indicted Clark on May 5, 2017, in a 33-defendant, 67-count indictment involving heroin and cocaine conspiracies, both headed by Clark. The indictment resulted in the arrests of dozens of accused drug and gun dealers in central Arkansas.
In late 2015, the FBI and North Little Rock Police Department began investigating the drug-trafficking activities of certain North Little Rock gangs, including the “Self Made Gangsters” (SMG) street gang. Investigators soon learned the gangs’ main source of supply of drugs came from individuals in Little Rock.
Between July and October 2016, NLRPD conducted four controlled purchases of heroin from Clark. Using wiretaps and other sources, agents then confirmed that Clark was purchasing kilogram quantities of heroin and cocaine from a supplier in Texas. On Tuesday, Clark admitted to selling this heroin in ounce and gram quantities as well as larger multi-ounce and kilogram quantities.
In November 2016 agents executed a search warrant at Clark’s west Little Rock residence. Agents seized more than $100,000 cash and jewelry, 178 grams of heroin, a marijuana grow operation, and six firearms. In May 2017, another search warrant at Clark’s new residence revealed over $55,000 cash, marijuana, drug paraphernalia, and 1.7 kilograms of methamphetamine labeled “ice” and stored in an oven.
Throughout the investigation, agents seized more than two kilograms of cocaine, one kilogram of heroin, more than five pounds of methamphetamine, one pound of crack cocaine, and eight ounces of fentanyl. Officers seized these drugs during more than 25 controlled purchases, as well as during the execution of multiple search warrants. In addition, agents seized 25 guns and approximately $241,000 of drug proceeds.
The maximum punishment Clark faces for conspiracy to distribute heroin is not less than 10 years’ imprisonment, not more than life, a fine not to exceed $10,000,000, and not less than five years of supervised release.
The primary investigation was conducted by FBI’s Met Rock Task Force, in coordination with the Little Rock and North Little Rock Police Departments. Assistant United States Attorney Benecia Moore is the lead prosecutor on the indictment.
# # #Lackawanna County Man Sentenced to 12 Years in Prison for Receiving and Distributing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael J. Costello, age 42, of Archbald, Pennsylvania, was sentenced on October 25, 2017, by U.S. District Court Judge Malachy E. Mannion to 12 years in prison for receiving and distributing child pornography in 2014.
According to United States Attorney Bruce D. Brandler, Costello previously admitted to using a computer to obtain and trade images of child pornography during January through August 2014. Costello’s computer contained more than 1,100 images and more than 300 videos of child pornography.
Judge Mannion also ordered Costello to serve 10 years on supervised release following his prison sentence, and to pay restitution of $1,100. Costello must also undergo sex offender treatment and comply with sex offender notification and registration requirements.
The charge against Costello resulted from an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorneys Francis P. Sempa and Evan J. Gotlob prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Keshena Woman Indicted for Motor Vehicle Theft on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, U.S. Attorney for the Eastern District of Wisconsin, announced that on October 24, 2017, a federal grand jury returned a one-count indictment against a woman who allegedly stole a vehicle from a residence on the Menominee Indian Reservation. The indictment named Danielle R. Kaquatosh (age: 34), of Keshena, which is on the Menominee Indian Reservation in Wisconsin. The indictment charges Kaquatosh with Theft in violation of Title 18 United States Code §§ 661 and 1152. Kaquatosh faces a maximum sentence of up to 5 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. The charge also carries a $100 special assessment.
According to the indictment, on or about September 23, 2017, the defendant took a motor vehicle from a location in the Menominee Indian Reservation. The vehicle and defendant were later located in New York City.
The case was investigated by the Menominee Tribal Police Department, Menominee County Sheriff’s Office, New York Police Department, New York County District Attorney’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Illegal Immigrant Pleads Guilty to Possessing Child PornographyRead the Press Release
Gulfport, Miss. – Gustavo Millan-Arizmendi, 29, a citizen of Mexico, pled guilty on Wednesday, October 25, 2017, before U.S. District Court Judge Sul Ozerden, to possession of child pornography, announced U.S. Attorney Mike Hurst.
On May 29, 2017, Millan-Arizmendi was pulled over by U.S. Customs and Border Patrol on Interstate 10 and was found to be in the United States illegally. After his arrest, agents discovered that Millan-Arizmendi was in possession of child pornography.
"Child pornography is a great menace to our society, harming our youth and robbing them of their childhood. It’s even more troubling when it is being furthered by individuals illegally in our country. Those who perpetuate these types of heinous crimes will be prosecuted to the fullest extent of the law," said U.S. Attorney Mike Hurst.
Millan-Arizmendi will be sentenced on February 9, 2018, at 9:30 a.m. before U.S. District Judge Sul Ozerden, and faces a maximum sentence of 20 years in prison and a $250,000 fine.
This case was investigated by U.S. Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Andrea Jones.
Illegal Alien Sentenced to More than a Year in Prison after Returning to the United States Following DeportationRead the Press Release
A Mexican man who had previously been deported following federal convictions for unlawful use of identification documents and misuse of a Social Security number was sentenced October 25, 2017, to 15 months in federal prison.
Adan Vazquez-Santos, age 34, a citizen of Mexico who had been living in Hamilton County, Iowa, received the prison term after an August 3, 2017, guilty plea to one count of illegal reentry of a removed alien after a felony conviction.
At the guilty plea, Vazquez-Santos admitted he illegally reentered the United States without permission after having been deported from the United States in February 2015. Prior to his deportation, Vazquez-Santos was convicted in January 2015 in the United States District Court for the Northern District of Iowa on one count of unlawful use of identification documents and one count of misuse of a Social Security number, both felony offenses. Vazquez-Santos had also been convicted of operating a motor vehicle while intoxicated in both Hamilton County, Iowa, in 2009, and in Webster County, Iowa, in 2012. Vazquez-Santos most recently came to the attention of immigration officials in April 2017 following his arrest in Hamilton County, Iowa, for willful injury and domestic abuse assault.
Vazquez-Santos was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Vazquez-Santos was sentenced to 15 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. This sentence is to be served consecutively to a 14-month sentence imposed in June 2017 for violating the terms of his supervised release on the 2015 federal convictions for unlawful use of identification documents and misuse of a Social Security number.
Vazquez-Santos is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3029.
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Identity Theft Ring Indicted for Credit Card FraudRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging six people with conspiring to commit bank and wire fraud, conspiring to traffic in contraband cigarettes, aggravated identity theft, and access device fraud.
According to allegations in the indictment, Travon Williams, 33, of Portsmouth, Rodriguez Norman, 29, of Temple Hills, Maryland, Nathaneal Williams, 25, of Manassas, and Marvin Mitchell, 33, Gentle Grant Tyson, III, 32, and Ebony Coe, 29, all of Virginia Beach, purchased stolen financial information including credit and debit card numbers from black market websites. The conspirators encoded that stolen information, including information belonging to real people, onto forged credit cards that they used to purchase things of value, including cartons of cigarettes. They then resold over 10,000 of those cigarettes to black market resellers for $47 per carton.
According to the indictment, laptops recovered from the conspirators included files of thousands of credit card numbers, including 2,000 numbers recovered from Travon Williams’ laptop and over 10,000 numbers recovered from Nathaneal Williams’ laptop.
Each defendant has been charged with conspiracy to commit bank and wire fraud, conspiracy to traffic in contraband cigarettes, and at least one count of aggravated identity theft. Additionally, defendants Travon Williams, Nathaneal Williams, and Marvin Mitchell have been charged with access device fraud. The conspiracy to commit bank and wire fraud carries a maximum penalty of 30 years in prison, and the aggravated identity theft charges carry a mandatory term of two years in prison, if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Maya D. Song, Whitney Dougherty Russell and Katherine E. Rumbaugh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-254.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Houston Business Owner Pleads Guilty to $840,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the owner of a Houston, Texas business pleaded guilty in federal court to his role in an $840,000 scheme to defraud J.E. Dunn Construction Company.
Brian A. Newkirk, 49, of Houston, pleaded guilty before U.S. District Judge Stephen R. Bough to one count of wire fraud.
Co-defendant John L. Kirwin, 46, of Lee’s Summit, Mo., was employed by J.E. Dunn Construction Company as an internal recruiter from August 2013 through April 13, 2016. His duties included finding qualified candidates for job vacancies. Kirwin worked with outside employment recruitment agencies to locate and employ J.E. Dunn personnel for construction projects across the country. If the recruit was actually hired, J.E. Dunn paid a fee to the outside employment recruitment agencies.
Kirwin hired three firms, including Search Group International (owned by Newkirk) and two firms owned by co-defendant Debi K. Jordan, 53, of Tulsa, Okla. – Recruitegist and Sourcegist – to locate suitable employees for J.E. Dunn. Kirwin was salaried and did not receive commission for recruiting new employees; his employment contract prohibited him from receiving any benefits from outside vendors.
Beginning shortly after his employment in 2013, Kirwin operated a scheme in which he received kickbacks from Newkirk and Jordan by submitting fraudulent invoices to J.E. Dunn. The invoices from Newkirk and Jordan included highly inflated amounts or they referenced employees never hired by J.E. Dunn. When J.E. Dunn paid the recruitment companies, they divided the proceeds from the fraudulent invoices with Kirwin.
Kirwin has pleaded guilty to one count of wire fraud and one count of mail fraud. Jordan has pleaded guilty to one count of mail fraud.
The government believes the loss amount to J.E. Dunn was approximately $840,000. Under the terms of today’s plea agreement, Newkirk must forfeit to the government any proceeds he received from the fraud scheme. The government believes the money judgment should be for $182,165.
Under federal statutes, Newkirk is subject to a sentence of up to 20 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 the U.S. Postal Inspection Service, Office of Inspector General.
Houma Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DARREKA BOYKINS, age 41, of Houma, pled guilty yesterday to an Indictment charging him with violating the Federal Controlled Substances Act.
According to the court records, BOYKINS conspired to possess with the intent to distribute and to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a quantity of a mixture or substance containing a detectable amount of cocaine, and a quantity of a mixture or substance containing a detectable amount of methamphetamine. BOYKINS admitted to being captured on a Title III wire intercept.
BOYKINS faces a mandatory minimum term of imprisonment of at least 10 years because of a prior drug offense, up to a maximum of life, a fine of up to $8,000,000, and eight years of supervised release following any term of imprisonment. U.S. District Judge Sarah S. Vance set sentencing on February 7, 2018.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA) in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Heroin Trafficker Sentenced to Three Years in PrisonRead the Press Release
SAN FRANCISCO – Mariano Ramos-Lopez was sentenced today to 36 months in prison for possessing with the intent to distribute nearly a kilogram of heroin, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable William H. Orrick, U.S. District Judge.
According to his plea agreement, Ramos-Lopez, 37, of Porterville, Calif., admitted that in December of 2016, he offered to sell one kilogram of heroin to an individual and then traveled from Porterville to Foster City to make the sale. Ramos-Lopez acknowledged he arrived at a hotel parking lot in Foster City in possession of 946.07 grams of heroin. Ramos-Lopez was arrested after retrieving the drugs from a hidden compartment of his pickup truck.
On January 31, 2017, a federal grand jury indicted Ramos-Lopez charging him with one count of possession intent to distribute heroin, in violation of 21 U.S.C. § 841(a)(1). On July 10, 2017, Ramos-Lopez pleaded guilty to the charge.
In addition to the prison term, Judge Orrick ordered Ramos-Lopez to serve a five-year period of supervised release. Ramos-Lopez is in custody and will begin serving the sentence immediately.
Assistant U.S. Attorney Nikhil Bhagat is prosecuting the case with assistance from Ana Guerra. The prosecution is the result of an investigation by the DEA, the San Mateo County Narcotics Task Force, and the Coast Guard Investigative Service.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national charged with an immigration crime pleaded guilty and was sentenced today in federal court in Boston.
Gilberto Chavez-Mendez, 24, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Richard G. Stearns sentenced Chavez-Mendez to time served. Chavez-Mendez will be subject to deportation.
Chavez-Mendez was previously deported on May 23, 2012. On Aug. 28, 2017, law enforcement encountered Chavez-Mendez in Lynn and determined him to be illegally present in the United States.
Chavez-Mendez faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national was indicted today in Worcester on a federal immigration charge.
Enri Nemias Vega, 31, was indicted on one count of unlawful reentry of a deported alien. Vega was previously deported in 2012. On May 20, 2017, Vega was encountered by law enforcement in Sutton and determined to be illegally present in the United States.
Vega faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of up to $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office 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.
Gary Man Entered A Guilty Plea of Conspiracy to RacketeeringRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that William Salazar, age 41, of Gary, Indiana entered a guilty plea of conspiracy to participate in racketeering activity before Judge Phillip Simon.
According to documents in this case, Salazar entered a guilty plea for conspiracy to participate in racketeering activity for his role and participation in the Latin Kings street gang. Salazar has been in custody since his arrest on August 4, 2016.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office also has provided assistance. The Latin King case is being prosecuted by Assistant U.S. Attorneys David J. Nozick, Dean Lanter and Abizer Zanzi of the Northern District of Indiana.
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Fulton Man Charged with Illegally Manufacturing a Firearm Silencer Following Court HearingRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man was charged in federal court today with illegally manufacturing a firearm suppressor, or “silencer,” following his arrest for harassing a state worker involved with him losing custody of his children.
Nathaniel Craig Carroll, 37, of Fulton, was charged in the U.S. District Court in Jefferson City, Mo., with illegally manufacturing a firearm suppressor. Carroll, who will have an initial court appearance at 1:30 p.m. today, remains in federal custody pending a detention hearing on Tuesday, Oct. 31, 2017.
According to an affidavit filed in support of today’s federal criminal complaint, Carroll manufactured a suppressor (or “silencer”) following his recent arrest for harassing a state children’s division employee who is involved in a case where Carroll’s children were taken from the home.
On Tuesday, Oct. 24, 2017, a judge in Callaway County determined that the case was going to move toward the permanent removal of the children from Carroll’s custody, which upset him a great deal. Immediately after the court hearing, the affidavit says, Carroll was seen at the Westlake Ace Hardware store. A Calloway County sheriff’s deputy was concerned that Carroll was intent on hurting himself because of what had happened at the hearing earlier, and therefore followed up with employees at the hardware store to determine what Carroll was purchasing.
According to the affidavit, Carroll purchased several items that could be used to manufacture a suppressor. Carroll allegedly made a statement to the store clerk about needing items to build a suppressor. Carroll does not have a federal license to manufacture a suppressor.
Law enforcement officers executed a search warrant at Carroll’s residence at approximately 9 p.m. on Wednesday, Oct. 25, 2017. They found the suppressor on a shelf in the garage next to a baggie of suspected marijuana. Another suspected suppressor was found in a gun safe in the residence along with a rifle that was threaded to fit the suppressor that was next to it in the safe. This suspected suppressor appears to have been made from oil filters covered in an adhesive tape, a common method used for homemade “silencers.” Items were also found in the garage that were consistent with parts used to build suppressors.
In addition to the suppressors, officers found 13 firearms inside the residence as well as over 1,000 rounds of assorted ammunition.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Callaway County, Mo., Sheriff’s Department, the MUSTANG Drug Task Force and the Missouri State Highway Patrol.
Fugitive Captured by U.S. Marshals Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A fugitive captured by the U.S. Marshals at a Suffolk hotel on January 6 was sentenced today to eight years in prison.
According to the statement of facts filed with the plea agreement, the U.S. Marshals captured convicted felon David Webb, 40, of Georgia, at a hotel in Suffolk after being on the run for multiple outstanding arrest warrants issued in Dekalb and Chatham County, Georgia. During his time as a fugitive, Webb evaded or eluded police on at least three occasions, including one instance when he fled from police by jumping out of the back window of a hotel and hiding in an alligator-infested swamp.
According to court documents, prior to his capture, Webb was able to evade law enforcement through his use of 15 various aliases and 20 false identity documents. When U.S. Marshals arrested the defendant, he was in possession of more than a dozen driver’s licenses bearing his image but associated with different names. These identification documents included driver’s licenses purportedly issued by the states of Texas, Nebraska, Illinois, Connecticut, Tennessee, Kentucky, Georgia, and the District of Columbia. Webb was also in possession of five social security cards bearing names other than his own, a U.S. Department of Veterans Affairs identification card, and a U.S. Military Common Access Card bearing Webb’s picture and claiming the rank of Sergeant in the Army. At the time of his arrest, U.S. Marshals also recovered methamphetamine, $7,300 in cash, a digital scale, drug packaging materials, ammunition, and three firearms, one of which had an obliterated serial number.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Arron J. Graves, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Robert Mathieson, U.S. Marshal for the Eastern District of Virginia, and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Kevin Comstock prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching Case No. 2:17-cr-15.
Four Defendants Sentenced to A Total of 64 Years' Imprisonment for Sex Trafficking Two 14-Year-Old Girls in Battle CreekRead the Press Release
GRAND RAPIDS, MICHIGAN — James Smith, 28, of Battle Creek, Michigan, received a 20 year sentence in federal prison for sex trafficking a minor, Acting U.S. Attorney Andrew Birge announced today. Smith is the fourth defendant sentenced in this case, which arose out of the sex trafficking of two local 14-year-old girls in Battle Creek in June of 2016. The four defendants received a total sentence of 64 years’ imprisonment, which, in addition to Smith’s sentence, breaks down as follows:
- 20 Years – William Edwards, 24, recruited both 14-year old victims into sex trafficking;
- 20 Years – Dakota Walters, 25, coached and helped Edwards with sex trafficking the minors;
- 4 Years – Michael Noble, 22, knowingly drove one of the victims to several places for commercial sex.
In June of 2016, Edwards recruited the first 14-year-old victim by preying on her after she ran away from home and needed money. Edwards told her he knew how to help her make money and took her to Walters’ house, where the two men created an online advertisement for sex with the minor. They told her to act 18, despite knowing she was only 14. They also gave her cocaine, telling her it would help her stay up longer to make more money. He took half of all the money she made. When one client did not pay the minor, Edwards grabbed her neck and threw her against a wall. That girl eventually fled from Edwards.
After the first minor left, Edwards turned to another 14-year-old runaway, whom he eventually handed off to Smith. Smith forced the girl to engage in commercial sex for about a week. Like Edwards, Smith provided the girl with cocaine and recruited Noble, who provided Smith and the minor with cocaine in exchange for driving her to meet johns. Smith carried a gun, forced the girl to have sex with him, and took away her phone so she could not contact her family for approximately one week while trapped in a Battle Creek motel with Smith, Noble, and an 18-year-old female. The minor finally escaped when she located her phone while the others slept, texted her aunt, and ran.
"The Western District of Michigan has seen this pattern again and again, where grown men—and sometimes women—use drugs, money, and various promises to lure vulnerable teens into commercial sex for the adults’ own financial gain," said Andrew Birge, Acting U.S. Attorney. "The manipulation and exploitation trap the victims, who are often in desperate need of adult attention, financial security, and basic necessities."
"Today’s sentencing effectively ends a heinous sex trafficking scheme that exploited two underage girls," said Steve Francis, HSI Detroit special agent in charge. "Using our victim-centered approach, HSI can now focus on ensuring the survivors of these depraved acts continue to get the help they need to rebuild their lives."
This case was the result of a collaborative investigative effort between Homeland Security Investigations and the Battle Creek Police Department. Assistant U.S. Attorneys Tessa K. Hessmiller and Davin Reust prosecuted the cases. For more information about Project Safe Childhood and the investigation and prosecution of sex trafficking in the Western District of Michigan, visit https://www.justice.gov/usao-wdmi/project-safe-childhood.
END
Founder and Owner of Pharmaceutical Company Insys Arrested and Charged with RacketeeringRead the Press Release
The founder and majority owner of Insys Therapeutics Inc., was arrested today and charged with leading a nationwide conspiracy to profit by using bribes and fraud to cause the illegal distribution of a Fentanyl spray intended for cancer patients experiencing breakthrough pain.
"More than 20,000 Americans died of synthetic opioid overdoses last year, and millions are addicted to opioids. And yet some medical professionals would rather take advantage of the addicts than try to help them," said Attorney General Jeff Sessions. "This Justice Department will not tolerate this. We will hold accountable anyone – from street dealers to corporate executives -- who illegally contributes to this nationwide epidemic. And under the leadership of President Trump, we are fully committed to defeating this threat to the American people.”
John N. Kapoor, 74, of Phoenix, Ariz., a current member of the Board of Directors of Insys, was arrested this morning in Arizona and charged with RICO conspiracy, as well as other felonies, including conspiracy to commit mail and wire fraud and conspiracy to violate the Anti-Kickback Law. Kapoor, the former Executive Chairman of the Board and CEO of Insys, will appear in federal court in Phoenix today. He will appear in U.S. District Court in Boston at a later date.
The superseding indictment, unsealed today in Boston, also includes additional allegations against several former Insys executives and managers who were initially indicted in December 2016.
The superseding indictment charges that Kapoor; Michael L. Babich, 40, of Scottsdale, Ariz., former CEO and President of the company; Alec Burlakoff, 42, of Charlotte, N.C., former Vice President of Sales; Richard M. Simon, 46, of Seal Beach, Calif., former National Director of Sales; former Regional Sales Directors Sunrise Lee, 36, of Bryant City, Mich., and Joseph A. Rowan, 43, of Panama City, Fla.; and former Vice President of Managed Markets, Michael J. Gurry, 53, of Scottsdale, Ariz., conspired to bribe practitioners in various states, many of whom operated pain clinics, in order to get them to prescribe a fentanyl-based pain medication. The medication, called “Subsys,” is a powerful narcotic intended to treat cancer patients suffering intense breakthrough pain. In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer.
The indictment also alleges that Kapoor and the six former executives conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients. They achieved this goal by setting up the “reimbursement unit,” which was dedicated to obtaining prior authorization directly from insurers and pharmacy benefit managers.
“In the midst of a nationwide opioid epidemic that has reached crisis proportions, Mr. Kapoor and his company stand accused of bribing doctors to overprescribe a potent opioid and committing fraud on insurance companies solely for profit,” said Acting United States Attorney William D. Weinreb. “Today's arrest and charges reflect our ongoing efforts to attack the opioid crisis from all angles. We must hold the industry and its leadership accountable - just as we would the cartels or a street-level drug dealer.”
“As alleged, these executives created a corporate culture at Insys that utilized deception and bribery as an acceptable business practice, deceiving patients, and conspiring with doctors and insurers,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The allegations of selling a highly addictive opioid cancer pain drug to patients who did not have cancer, make them no better than street-level drug dealers. Today's charges mark an important step in holding pharmaceutical executives responsible for their part in the opioid crisis. The FBI will vigorously investigate corrupt organizations with business practices that promote fraud with a total disregard for patient safety.”
“These Insys executives allegedly fueled the opioid epidemic by paying doctors to needlessly prescribe an extremely dangerous and addictive form of fentanyl,” said Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Corporate executives intent on illegally driving up profits need to be aware they are now squarely in the sights of law enforcement.”
“As alleged, Insys executives improperly influenced health care providers to prescribe a powerful opioid for patients who did not need it, and without complying with FDA requirements, thus putting patients at risk and contributing to the current opioid crisis,” said Mark A. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to work with our law enforcement partners to pursue and bring to justice those who threaten the public health.”
“Pharmaceutical companies whose products include controlled medications that can lead to addiction and overdose have a special obligation to operate in a trustworthy, transparent manner, because their customers’ health and safety and, indeed, very lives depend on it,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA pledges to work with our law enforcement and regulatory partners nationwide to ensure that rules and regulations under the Controlled Substances Act are followed.”
“Today’s arrest is the result of a joint effort to identify, investigate and prosecute individuals who engage in fraudulent activity and endanger patient health,” stated Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS will continue to work with the U.S. Attorney’s Office, District of Massachusetts, and our law enforcement partners, to protect U.S. military members, retirees and their dependents and the integrity of TRICARE, the Defense Department’s healthcare system.”
“As alleged, John Kapoor and other top executives committed fraud, placing profit before patient safety, to sell a highly potent and addictive opioid. EBSA will take every opportunity to work collaboratively with our law enforcement partners in these important investigations to protect participants in private sector health plans and contribute in fighting the opioid epidemic,” said Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“Once again, the United States Postal Inspection Service is fully committed to protecting our nation’s mail system from criminal misuse,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service. “We are proud to work alongside our law enforcement partners to dismantle high level prescription drug practices which directly contribute to the opioid abuse epidemic. This investigation highlights our commitment to defending our mail system from illegal misuse and ensuring public trust in the mail.”
“The U.S. Department of Veterans Affairs, Office of Inspector General will continue to aggressively investigate those that attempt to fraudulently impact programs designed to benefit our veterans and their families,” said Donna L. Neves, Special Agent in Charge of the VA OIG Northeast Field Office.
The charges of conspiracy to commit RICO and conspiracy to commit mail and wire fraud each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. The charges of conspiracy to violate the Anti-Kickback Law provide for a sentence of no greater than five years in prison, three years of supervised release and a $25,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by a team that included the FBI; HHS-OIG; FDA Office of Criminal Investigations; the Defense Criminal Investigative Service; the Drug Enforcement Administration; the Department of Labor, Employee Benefits Security Administration; the Office of Personnel Management; the U.S. Postal Inspection Service; the U.S. Postal Service Office of Inspector General; and the Department of Veterans Affairs. The U.S. Attorney’s Office would like to acknowledge the cooperation and assistance of the U.S. Attorney’s Offices around the country engaged in parallel investigations, including the District of Connecticut, Eastern District of Michigan, Southern District of Alabama, Southern District of New York, District of Rhode Island, and the District of New Hampshire. The efforts of the Central District of California and the Justice Department’s Civil Fraud Section of the Department of Justice are also greatly appreciated.
Assistant U.S. Attorneys K. Nathaniel Yeager, Chief of Weinreb’s Health Care Fraud Unit, and Susan M. Poswistilo, of Weinreb’s Civil Division, are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.Founder and Owner of Pharmaceutical Company Insys Arrested and Charged with RacketeeringRead the Press Release
BOSTON – The founder and majority owner of Insys Therapeutics Inc., was arrested today and charged with leading a nationwide conspiracy to profit by using bribes and fraud to cause the illegal distribution of a Fentanyl spray intended for cancer patients experiencing breakthrough pain.
John N. Kapoor, 74, of Phoenix, Ariz., a current member of the Board of Directors of Insys, was arrested this morning in Arizona and charged with RICO conspiracy, as well as other felonies, including conspiracy to commit mail and wire fraud and conspiracy to violate the Anti-Kickback Law. Kapoor, the former Executive Chairman of the Board and CEO of Insys, will appear in federal court in Phoenix today. He will appear in U.S. District Court in Boston at a later date.
The superseding indictment, unsealed today in Boston, also includes additional allegations against several former Insys executives and managers who were initially indicted in December 2016.
The superseding indictment charges that Kapoor; Michael L. Babich, 40, of Scottsdale, Ariz., former CEO and President of the company; Alec Burlakoff, 42, of Charlotte, N.C., former Vice President of Sales; Richard M. Simon, 46, of Seal Beach, Calif., former National Director of Sales; former Regional Sales Directors Sunrise Lee, 36, of Bryant City, Mich., and Joseph A. Rowan, 43, of Panama City, Fla.; and former Vice President of Managed Markets, Michael J. Gurry, 53, of Scottsdale, Ariz., conspired to bribe practitioners in various states, many of whom operated pain clinics, in order to get them to prescribe a fentanyl-based pain medication. The medication, called “Subsys,” is a powerful narcotic intended to treat cancer patients suffering intense breakthrough pain. In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer.
The indictment also alleges that Kapoor and the six former executives conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients. They achieved this goal by setting up the “reimbursement unit,” which was dedicated to obtaining prior authorization directly from insurers and pharmacy benefit managers.
“In the midst of a nationwide opioid epidemic that has reached crisis proportions, Mr. Kapoor and his company stand accused of bribing doctors to overprescribe a potent opioid and committing fraud on insurance companies solely for profit,” said Acting United States Attorney William D. Weinreb. “Today's arrest and charges reflect our ongoing efforts to attack the opioid crisis from all angles. We must hold the industry and its leadership accountable - just as we would the cartels or a street-level drug dealer.”
“As alleged, these executives created a corporate culture at Insys that utilized deception and bribery as an acceptable business practice, deceiving patients, and conspiring with doctors and insurers,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The allegations of selling a highly addictive opioid cancer pain drug to patients who did not have cancer, make them no better than street-level drug dealers. Today's charges mark an important step in holding pharmaceutical executives responsible for their part in the opioid crisis. The FBI will vigorously investigate corrupt organizations with business practices that promote fraud with a total disregard for patient safety.”
“These Insys executives allegedly fueled the opioid epidemic by paying doctors to needlessly prescribe an extremely dangerous and addictive form of fentanyl,” said Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Corporate executives intent on illegally driving up profits need to be aware they are now squarely in the sights of law enforcement.”
“As alleged, Insys executives improperly influenced health care providers to prescribe a powerful opioid for patients who did not need it, and without complying with FDA requirements, thus putting patients at risk and contributing to the current opioid crisis,” said Mark A. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to work with our law enforcement partners to pursue and bring to justice those who threaten the public health.”
“Pharmaceutical companies whose products include controlled medications that can lead to addiction and overdose have a special obligation to operate in a trustworthy, transparent manner, because their customers’ health and safety and, indeed, very lives depend on it,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA pledges to work with our law enforcement and regulatory partners nationwide to ensure that rules and regulations under the Controlled Substances Act are followed.”
“Today’s arrest is the result of a joint effort to identify, investigate and prosecute individuals who engage in fraudulent activity and endanger patient health,” stated Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS will continue to work with the U.S. Attorney’s Office, District of Massachusetts, and our law enforcement partners, to protect U.S. military members, retirees and their dependents and the integrity of TRICARE, the Defense Department’s healthcare system.”
“As alleged, John Kapoor and other top executives committed fraud, placing profit before patient safety, to sell a highly potent and addictive opioid. EBSA will take every opportunity to work collaboratively with our law enforcement partners in these important investigations to protect participants in private sector health plans and contribute in fighting the opioid epidemic,” said Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“Once again, the United States Postal Inspection Service is fully committed to protecting our nation’s mail system from criminal misuse,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service. “We are proud to work alongside our law enforcement partners to dismantle high level prescription drug practices which directly contribute to the opioid abuse epidemic. This investigation highlights our commitment to defending our mail system from illegal misuse and ensuring public trust in the mail.”
"We are gratified to have contributed to this investigation and applaud the exceptional work of this investigative team for both protecting patient safety and program costs," said Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office. "Along with our law enforcement partners, the USPSOIG will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service."
“The U.S. Department of Veterans Affairs, Office of Inspector General will continue to aggressively investigate those that attempt to fraudulently impact programs designed to benefit our veterans and their families,” said Donna L. Neves, Special Agent in Charge of the VA OIG Northeast Field Office.
The charges of conspiracy to commit RICO and conspiracy to commit mail and wire fraud each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. The charges of conspiracy to violate the Anti-Kickback Law provide for a sentence of no greater than five years in prison, three years of supervised release and a $25,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by a team that included the FBI; HHS-OIG; FDA Office of Criminal Investigations; the Defense Criminal Investigative Service; the Drug Enforcement Administration; the Department of Labor, Employee Benefits Security Administration; the Office of Personnel Management; the U.S. Postal Inspection Service; the U.S. Postal Service Office of Inspector General; and the Department of Veterans Affairs. The U.S. Attorney’s Office would like to acknowledge the cooperation and assistance of the U.S. Attorney’s Offices around the country engaged in parallel investigations, including the District of Connecticut, Eastern District of Michigan, Southern District of Alabama, Southern District of New York, District of Rhode Island, and the District of New Hampshire. The efforts of the Central District of California and the Justice Department’s Civil Fraud Section of the Department of Justice are also greatly appreciated.
Assistant U.S. Attorneys K. Nathaniel Yeager, Chief of Weinreb’s Health Care Fraud Unit, and Susan M. Poswistilo, of Weinreb’s Civil Division, are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Desoto Parish District Attorney’s Office employee indicted for stealing feesRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a federal grand jury indicted a Converse woman for seven counts of mail fraud.
Melanie Barber, 35, of Converse, La., was employed by the Desoto Parish District Attorney’s office from April 2002 until February 2014. From at least 2004 to 2014, she negotiated money orders made payable to and intended for the Desoto Parish District Attorney’s Office. The money orders were collected by worthless checks and diversion fees but negotiated by Barber at several local banks and retailers for her personal use.
Barber faces up to 20 years in prison, three years of supervised release and a $250,000 fine per count. She also faces forfeiture.
The FBI and the Mansfield Police Department conducted the investigation. Assistant U.S. Attorney Mike O’Mara is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Connecticut Resident Pleads Guilty to Defrauding Lenders of More Than $3 MillionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MOHSEN YOUSSEF, 27, formerly of Vernon, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to fraud offenses relating to a scheme to secure more than $3 million in funding for his purported pita manufacturing business.
According to court documents and statements made in court, beginning in approximately October 2011, YOUSSEF defrauded various banks, a corporate leasing and vendor finance company, and the Connecticut Department of Economic and Community Development, in a scheme to secure funding for equipment purchases for his company, Amoun Pita and Distribution LLC (“Amoun Pita”), and other companies he controlled. According to its business plan, Amoun Pita was a bakery that manufactured pocket pita bread from a production facility in South Windsor, Connecticut.
As part of the scheme, YOUSSEF provided false information when applying for loans, lines of credit, lease financing and state grants, purportedly to finance the acquisition of new pita manufacturing equipment, other machinery and inventory related to his businesses. The false information included documentation that inflated the assets and income of YOUSSEF and his companies, as well as fraudulently created invoices purporting to document equipment purchases that, in fact, never occurred. In order to induce victims to rely on the invoices he provided, YOUSSEF created marketing materials and websites for non-existent vendors.
YOUSSEF caused more than $3 million in losses through this scheme.
YOUSSEF pleaded guilty to one count of bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of mail fraud, which carries a maximum term of imprisonment of 20 years.
YOUSEEF has agreed to pay the victim lenders restitution in the amount of $3,209,603.17.
Judge Arterton scheduled sentencing for January 18, 2018.
YOUSSEF, who has dual U.S and Egyptian citizenship, moved to Canada in 2014. On Oct 22, 2015, a grand jury returned a 14-count indictment charging YOUSSEF with various fraud offenses. He was arrested in Canada on March 1, 2017, and has been detained since his arrest.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the Quebec Provincial Police RELEX Unit, Montreal Police Service and Royal Canadian Mounted Police. The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Avi M. Perry.
Former CFO Indicted in Multi-Million Dollar Embezzlement and Laundering SchemeRead the Press Release
BOSTON – The former chief financial officer of two Boston-area companies was indicted yesterday with embezzling over $3 million from his former employers.
Edward J. Abell III, 44, of Gloucester, was indicted on five counts of wire fraud and three counts of money laundering. In October 2017, Abell was charged in a criminal complaint with wire fraud and money laundering.
According to court documents, Abell served as Vice President of Finance and later Chief Financial Officer of a global integrated marketing agency based in Boston. In that capacity, Abell oversaw all aspects of the company’s finances and controlled all corporate bank accounts. It is alleged that between 2006 and his departure in 2016, Abell embezzled over $3.7 million from his employer by writing company checks to Pinehurst Tax Associates – a firm Abell owned. However, Pinehurst allegedly did not provide any services to Abell’s employer. Rather, it is alleged that Abell used Pinehurst as a shell company through which he channeled embezzled funds to personal bank accounts.
In order to avoid detection, Abell allegedly created fake profiles for Pinehurst within his employer’s internal vendor database and attributed all the fraudulent payments to Pinehurst as “Professional Services” in the financial accounting system. Abell also allegedly filed false personal tax returns with the IRS, which failed to report the millions he obtained through Pinehurst.
According to court documents, in late 2016, after he was terminated from the marketing and public relations firm, Abell was hired as CFO of a Boston-based consulting and investment banking firm, where he continued his scheme and embezzled over $140,000.
It is further alleged that Abell laundered the proceeds of his crimes by moving the funds through different personal accounts and by purchasing property and other luxury assets. Previously, the United States obtained seizure warrants for several of Abell’s assets allegedly acquired with fraudulent proceeds. As part of the operation, federal agents seized a 2015 Porsche Macan S, a 2015 Ford F-350 Super Duty, and an E*TRADE brokerage account all owned by Abell or held in his name.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The maximum sentence of one of the money laundering charges is 20 years in prison, three years supervised release, and a fine of $500,000, or twice the value of the property involved in the transaction. The remaining money laundering charges provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the value of the criminally derived property. 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; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Field Division; and Joel P. Garland Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
Five Charged in Shooting Death of A Bowling Green Resident During Robbery of La Placita MarketRead the Press Release
Defendants tied to a string of at least twelve violent robberies occurring at small stores across Kentucky, Tennessee, and North Carolina
BOWLING GREEN, Ky. – United States Attorney Russell M. Coleman today announced the arrest of five co-defendants charged in the shooting death of a Bowling Green resident, while robbing the La Placita market, located in Warren County, Kentucky. The Bowling Green homicide is tied to a string of at least twelve violent robberies occurring at small, privately owned stores across Kentucky, Tennessee, and North Carolina.
All were charged in a Criminal Complaint, unsealed yesterday, October 25, 2017, following the initial appearance of defendants Lillian Duron and Estrellita Soto, before United States Magistrate Judge H. Brent Brennenstuhl in Bowling Green. Defendant Johnny Alexander Relles-Martinez made his initial appearance on Tuesday, October 24, 2017 from the Leavenworth, Kansas, Detention Center. Defendants Jorge Santos Caballero-Melgar and Jose Adan Mejia Varela are currently in the custody of the Commonwealth of Virginia and are scheduled for their initial appearance on the federal charges on November 29, 2017 in Bowling Green.
“This outcome was due to plain old good police work, by Bowling Green’s Finest, in concert with the Federal Bureau of Investigation, and a host of other police agencies in other states” stated U.S. Attorney Russell Coleman. “We are all safer when local and federal law enforcement work together to tackle violent crimes like this dangerous string of multi-state robberies.”
According to the Criminal Complaint, on March 17, 2017, at 2:58 pm, two armed men, Martinez and Varela entered La Placita, locked the door behind them, and demanded money from La Placita’s employees. La Placita is a locally owned Hispanic market, check cashing business, and InterCambio Express wire transfer service, located at 710 Morgantown Road in Bowling Green.
During the robbery, Jose Cruz arrived at the store to pick-up his minor children, who were locked inside. When Varela unlocked the door to walk toward a waiting car, Cruz entered the store, realized that a second gunman, Martinez, was robbing the store and began fighting him. Valera returned to the store and attempted to pistol whip Mr. Cruz. Video footage, 911 audio, and witnesses, including Mr. Cruz’s minor children, who were present during the shooting, confirm the second gunman, Martinez, shot Cruz during the fight. First responders transported Mr. Cruz to a local hospital where he subsequently died.
According to the Affidavit supporting the Criminal Complaint, defendant Melgar served as the lookout during the robbery. Defendant Duron is accused of making a wire transfer at La Placita just over an hour before the robbery. Surveillance video showed Duron and Soto inside and in the parking lot of La Placita just prior to the hold up and shooting. Further, according to the Affidavit, Soto told Melgar where the money was kept, inside the store, and alerted Melgar when customers had left and only two female clerks were left inside. The five defendants are believed to be connected to a string of at least twelve violent robberies between January 13, 2017 and September 2, 2017, across Kentucky Tennessee, and North Carolina.
The charge of interference with commerce by threats or violence, a Hobbs Act charge, carries a maximum penalty of twenty years in prison. The charge of use of a firearm during a crime of violence, causing death, carries a maximum punishment of death or a term of life in prison.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Bowling Green Police Department and the FBI with assistance from the Warren County Commonwealth’s Attorney’s Office; Northampton County, VA Sheriff’s Office; Metro Nashville, TN Police Department; Rocky Mount, NC Police Department; Clayton, NC Police Department; Cary, NC Police Department; Henderson, NC Police Department; Snow Hill, NC Police Department; Chatham County, NC Sheriff’s Department; Department of Homeland Security; and United States Marshals.
la_placita_5_criminal_complaint_10-18-17.pdf***
The charge of a person by a Federal Criminal Complaint is an accusation only and that person is presumed innocent until and unless proven guilty