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Wednesday 6 September 2017
KC Man Sentenced to 19 Years for Illegal Firearm, Crack Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute crack cocaine and for illegally possessing a firearm.
Jason L. Clark, 38, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 19 years and seven months in federal prison without parole. Clark was sentenced as an armed career criminal due to his prior felony convictions.
On March 21, 2017, Clark pleaded guilty to participating in a conspiracy to distribute crack cocaine and to being a felon in possession of a firearm.
Co-defendant Carlos A. Hill, 42, of Kansas City, Mo., pleaded guilty on March 15, 2017, to his role in the drug-trafficking conspiracy, to being a felon in possession of a firearm and to distributing crack cocaine. Hill is scheduled to be sentenced on Oct. 11, 2017.
Clark admitted that he and Hill were present at their residence when a confidential informant purchased a stolen Inter Ordnance 7.62 x 39mm rifle on May 25, 2016. When the informant arrived to purchase the rifle, Hill pointed towards the bed of a red El Camino that was parked in front of the residence. The informant picked up a black plastic trash bag with the rifle inside it from the bed of the vehicle. When the informant started to pay Hill $600 for the rifle, Hill directed the informant to pay Clark for the purchase of the firearm. Clark then got into the El Camino and drove away.
On June 14, 2016, the confidential informant again met with Hill at his residence. Hill was packaging crack cocaine into distribution quantities and had approximately 18 ounces of crack cocaine already packaged. The informant saw Clark and others in the kitchen of the residence converting powder cocaine into crack cocaine. The informant saw approximately half a kilogram of cocaine inside the residence.
Clark was arrested on June 21, 2016, following a traffic stop after leaving Hill’s residence. Officers found an FNH 9mm pistol under the center console of the vehicle as well as several plastic baggies of cocaine, marijuana and alprazolam.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Clark has three prior felony convictions for distribution of a controlled substance, two prior felony convictions for possession of a controlled substance, and prior felony convictions for trafficking and for aiding and abetting the distribution of crack cocaine.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Settles Lawsuit with Edmonds, Washington, Landlords for Discriminating Against Families with ChildrenRead the Press Release
The U.S. Department of Justice announced today that it has reached a settlement with the owners and manager of three Edmonds, Washington, apartment buildings to resolve a lawsuit filed earlier this year alleging that those landlords refused to rent their apartments to families with children, in violation of the Fair Housing Act.
“The Fair Housing Act prohibits apartment owners and managers from denying housing to families because they have children,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “We will continue to vigorously enforce the Fair Housing Act’s prohibition of discrimination against families with children.”
“Equal access to housing is essential for all Americans, including families with young children,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “Particularly in our tight housing market, landlords must follow the law and make units available without discrimination based on race, color, religion, sex, national origin, disability or familial status.”
“No family should be denied a place to live simply because they have a child,” said Anna Maria Farias, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to work with the Justice Department to ensure that property owners comply with their obligations under the nation’s fair housing laws.”
The three apartment buildings that are the subject of the settlement are located at 201 5th Ave. N., 621 5th Ave. S., and 401 Pine Street in Edmonds, Washington. They are owned and managed by defendants Debbie A. Appleby, Apple One, LLC, Apple Two, LLC, and Apple Three, LLC, of Stanwood, Washington. Under the settlement, the defendants will:
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Pay a total monetary settlement of $95,000, comprised of:
$35,000 in damages to a family that they turned away because the family had a small child;
$35,000 that will be used to compensate other families that were harmed by defendants’ practices; and
$25,000 as a civil penalty to the United States;
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Adopt non-discriminatory policies and practices that ensure compliance with Fair Housing Act; and
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Submit to record keeping and monitoring requirements for the three-year period of the settlement agreement.
Today’s settlement resolves a complaint filed by the department in March 2017 which alleged that in March 2014 defendant Appleby told a woman seeking an apartment for herself, her husband and their one-year-old child that the apartment buildings were “adult only.” The complaint also alleged that defendants advertised their apartments as being in “adult buildings.” The family filed a complaint with the U.S. Department of Housing and Urban Development (“HUD”), which conducted an investigation, issued a charge of discrimination against the defendants, and referred the case to the Justice Department
Any individuals who believe they were discriminated against by the defendants because they have children should contact the Civil Rights Division at 1-800-896-7743, Option 96.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the
Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt and https://www.justice.gov/usao-wdwa/civil-rights. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at www.hud.gov.
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Justice Department Settles Lawsuit with Edmonds, Washington Landlords for Discriminating Against Families with ChildrenRead the Press Release
WASHINGTON - The U.S. Department of Justice announced today that it has reached a settlement with the owners and manager of three Edmonds, Washington apartment buildings to resolve a lawsuit filed earlier this year alleging that those landlords refused to rent their apartments to families with children, in violation of the Fair Housing Act.
“The Fair Housing Act prohibits apartment owners and managers from denying housing to families because they have children,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “We will continue to vigorously enforce the Fair Housing Act’s prohibition of discrimination against families with children.”
“Equal access to housing is essential for all Americans, including families with young children,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “Particularly in our tight housing market, landlords must follow the law and make units available without discrimination based on race, color, religion, sex, national origin, disability or familial status.”
“No family should be denied a place to live simply because they have a child,” said Anna Maria Farias, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to work with the Justice Department to ensure that property owners comply with their obligations under the nation’s fair housing laws.”
The three apartment buildings that are the subject of the settlement are located at 201 5th Ave. N., 621 5th Ave. S., and 401 Pine Street in Edmonds, Washington. They are owned and managed by defendants Debbie A. Appleby, Apple One, LLC, Apple Two, LLC, and Apple Three, LLC, of Stanwood, Washington. Under the settlement, the defendants will:
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Pay a total monetary settlement of $95,000, comprised of:
$35,000 in damages to a family that they turned away because the family had a small child;
$35,000 that will be used to compensate other families that were harmed by defendants’ practices; and
$25,000 as a civil penalty to the United States;
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Adopt non-discriminatory policies and practices that ensure compliance with Fair Housing Act; and
-
Submit to record keeping and monitoring requirements for the three-year period of the settlement agreement.
Today’s settlement resolves a complaint filed by the department in March 2017 which alleged that in March 2014 defendant Appleby told a woman seeking an apartment for herself, her husband and their one-year-old child that the apartment buildings were “adult only.” The complaint also alleged that defendants advertised their apartments as being in “adult buildings.” The family filed a complaint with the U.S. Department of Housing and Urban Development (“HUD”), which conducted an investigation, issued a charge of discrimination against the defendants, and referred the case to the Justice Department
Any individuals who believe they were discriminated against by the defendants because they have children should contact the Civil Rights Division at 1-800-896-7743, Option 96.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt and https://www.justice.gov/usao-wdwa/civil-rights. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at www.hud.gov.
The case is being jointly handled by Trial Attorney Kathryn Legomsky for the Civil Rights Division for the U.S. Department of Justice, and Assistant United States Attorney and Civil Rights Program Coordinator J. Michael Diaz, for the United States Attorney’s Office for the Western District of Washington.
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Indictment Unsealed Charging Former State Senator with Child Pornography and Child Sex Trafficking OffensesRead the Press Release
Oklahoma City, Oklahoma – An indictment was unsealed today charging RALPH ALLAN LEE SHORTEY, 35, of Oklahoma City, with federal crimes involving child pornography and child sex trafficking, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On September 5, 2017, a federal grand jury returned a four-count indictment against Shortey. Counts 1 and 2 charge him with using a facility of interstate commerce on October 10 and 15, 2013, to transport child pornography. In particular, these child pornography counts allege Shortey used his smartphone to send a video involving a prepubescent girl and videos involving young boys from his AOL email address to a Hotmail address and a Yahoo! address. Count 3 alleges Shortey produced child pornography by persuading a minor identified as John Doe to send him at least one image of Doe’s penis. This count alleges Shortey began communicating with Doe on Kik, a social media application, in February 2016 and that the production of child pornography took place between February 14, 2016, and March 8, 2017.
Count 4 charges Shortey with child sex trafficking for soliciting a minor to engage in a commercial sex act on March 8 and 9, 2017. According to the indictment, Doe advised Shortey via Kik on March 8 that he needed money for spring break. Shortey is alleged to have replied: "I don’t really have any legitimate things I need help with right now. Would you be interested in ‘sexual’ stuff?" The indictment states that after Doe responded "yes," the Kik conversation included explicit references to sexual conduct. The indictment further alleges that just after midnight on March 9, Shortey drove Doe from Doe’s house to a Super 8 Motel in Moore, Oklahoma, where Shortey rented a room with his credit card. Based on information provided by Doe’s father, officers of the Moore Police Department knocked on the motel room door at approximately 1:00 a.m. and allegedly discovered Doe with Shortey, whose backpack contained an open box of condoms.
If convicted, Shortey faces mandatory minimum sentences on each count. Counts 1 and 2 carry no less than 5 and up to 20 years in prison. Count 3 carries no less than 15 and up to 30 years in prison. And Count 4 carries no less than 10 years and up to life in prison. Shortey would also face supervised release after incarceration of at least 5 years and up to life, in addition to fines of up to $250,000 per count, mandatory restitution, $100 special assessments on Counts 1 and 2, and $5,000 special assessments on Counts 3 and 4.
Count 4 relates to facts charged in a three-count information filed in Cleveland County District Court on March 16, 2017, in case number CF-2017-430. In light of the federal indictment, that information will be dismissed. "I believe this case is best handled in one venue and have every confidence the U.S. Attorney’s Office will prosecute this matter expeditiously," said Cleveland County District Attorney Greg Mashburn. "It was an honor to work with the various law enforcement agencies involved in this investigation."
The public is reminded these charges are merely accusations and that Shortey is presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and the Moore Police Department, with assistance from the Cleveland County District Attorney’s Office and the Oklahoma State Bureau of Investigation. Assistant U.S. Attorneys K. McKenzie Anderson and Brandon Hale are prosecuting the case.
Indictment Charges Worcester Man with Sex TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a grand jury sitting in Hartford returned an indictment today charging MOHAMED ABDI, also known as “Vic,” 25, of Worcester, Massachusetts, with conspiracy to commit sex trafficking and sex trafficking by force, fraud or coercion.
As alleged in the indictment, between late December 2016 and January 5, 2017, ABDI recruited, harbored, transported and maintained a female victim to engage in commercial acts, benefitted financially, and used force, fraud or coercion.
ABDI has been detained since his arrest on related state charges on January 5, 2017.
If convicted, ABDI faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of life on the sex trafficking charge, and a maximum term of imprisonment of life on the conspiracy charge.
U.S. Attorney Daly stressed that an indictment 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 Connecticut Human Trafficking Task Force, Federal Bureau of Investigation and Connecticut State Police, with the assistance of the Wethersfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Independence Man Sentenced to 10 Years for Illegal Firearm After Shooting at Mother, ChildrenRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for illegally possessing a firearm after he fired at a woman and her children.
Senecca T. Spencer, 41, of Independence, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole. Today’s sentence is the maximum penalty provided under the statute.
On Feb. 2, 2017, Spencer pleaded guilty to being a felon in possession of a firearm. Spencer admitted he was in possession of a Jimenez Arms 9mm pistol and ammunition on May 25, 2016.
Independence police officers were called to an Independence residence on a report of a domestic violence disturbance on May 25, 2016. Spencer had pointed and discharged the firearm in the direction of a woman and her two minor children.
Spencer had already left by the time officers arrived at the residence, but he was located later that same evening and stopped in his vehicle near the intersection of 43rd Street and Phelps. As he was being placed under arrest, a police officer found a 9mm cartridge in Spencer’s front left pocket. The loaded 9mm pistol was discovered in the center console area of the vehicle.
Spencer also admitted that he made threatening telephone calls to the victim while he was incarcerated in federal custody. During these telephone calls, Spencer threatened her with violence, harm and death. Spencer also admitted he contacted the victim’s daughter by telephone. Spencer’s telephone calls were intended to coerce, intimidate, and compel her to become an uncooperative witness/victim in hopes of minimizing his potential prison sentence.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Spencer has four prior felony conviction for assault with a dangerous weapon and seven prior felony convictions for assault and battery, and prior felony convictions for assault and battery on a police officer, armed robbery and possession with intent to distribute/manufacture a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Harrison County Resident Sentenced for Possession of Child PornographyRead the Press Release
Council Bluffs, IA- On September 5, 2017, James Lee Palmer, a 56 year-old resident of Missouri Valley, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger, to 120 months in prison for possession of child pornography announced United States Attorney Kevin E. VanderSchel. Palmer’s term of imprisonment is to be followed by ten years of supervised release.
On April 20, 2017, Palmer entered a guilty plea to a federal indictment charging Palmer with possession of child pornography on or about May 11, 2016. The charge was the result of an investigation into the posting of an image depicting child pornography upon a cloud based storage service. Law enforcement followed up with a search warrant of Palmer’s residence and located computers that contained over 300 of images of child pornography.
The investigation was conducted by the Iowa Division of Criminal Investigation’s Internet Crimes Against Children Task Force, the Missouri Valley, Iowa Police Department, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Georgia Man Sentenced for Drug DistributionRead the Press Release
BOSTON – A Georgia man was sentenced today in federal court in Boston for trafficking oxycodone.
Tony Berry, a/k/a Mazibrawl, 37, of College Park, Ga., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 70 months in prison and three years of supervised release. In April 2017, Berry pleaded guilty to conspiracy to possess with intent to distribute oxycodone.
Berry, a former Massachusetts resident, was involved in the importation and distribution of close to 5,000 oxycodone pills in Massachusetts, along with other co-conspirators, including his brother Willie Berry. Tony Berry, one of 48 defendants tied to the Columbia Point Dawgs (CPD), was indicted in June 2015 for drug trafficking.
According to documents filed in court, the CPD, also known on the street as “the Point,” was Boston’s largest and most influential city-wide gang. The criminal organization started in the 1980s in the former Columbia Point Housing Development (now Harbor Point) and, over the years, gang members established drug trafficking crews throughout Boston. It is alleged that the CPD was responsible for the distribution of multiple kilo quantities of heroin, cocaine, crack cocaine, and oxycodone throughout Boston and Maine.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Suffolk County District Attorney Daniel F. Conley; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Boston Police Commissioner William Evans; and Commissioner Thomas Turco of the Massachusetts Department of Correction, made the announcement.
Georgia Man Sentenced for Defrauding StaplesRead the Press Release
BOSTON –A Georgia man was sentenced today in federal court in Boston for his involvement in a scheme to defraud Framingham-based Staples, Inc. of more than $1.4 million.
John Douglas, 46, of Alpharetta, Ga., was sentenced by U.S. District Court Judge Indira Talwani to 30 months in prison, two year of supervised release, and ordered to pay $691,327 in restitution and $553,061 in forfeiture. On Jan. 24, 2017, Douglas pleaded guilty to conspiracy to commit wire fraud and mail fraud.
Douglas and alleged co-conspirator Layne Michael Gosnell engaged in a complex scheme to defraud Staples of more than $1.4 million worth of customer loyalty rewards and product rebates by creating more than 1,100 Staples rewards accounts. They did this by using fictitious names, addresses, contact information, and a computer script to query a Staples website and seek unclaimed customer loyalty rewards for purchases that they did not make. The computer script made thousands of queries a day, amassing more than $889,000 worth of rewards in small increments, often less than one dollar at a time. The conspirators then used the rewards like cash at Staples retail locations to buy merchandise that they often sold on eBay.
In addition, Douglas and, allegedly, Gosnell used a similar method to claim more than $527,000 in cash rebates from Staples for products that they did not purchase.
Staples, who has cooperated with the government, discovered the fraud and referred the matter for investigation.
On Aug. 4, 2017, Gosnell was charged in federal court in Boston with conspiracy to commit wire fraud and mail fraud, and is awaiting trial. The details contained in the charging documents are allegations and Gosnell is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney David J. D’Addio of Weinreb’s Cybercrime Unit prosecuted the case.
French Citizen Sentenced to About Four Months for Being in the United States after RemovalRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Philippe Maurice, 50, a citizen of France, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to time served (113 days) and one year of supervised release for entering the United States after having been removed and deported. He pleaded guilty on June 19, 2017.
Court documents reveal that on May 17, 2017, U.S. Border Patrol agents found the defendant riding a bike on a dirt logging road in Portage, Maine. The defendant claimed he was a U.S. citizen. When an agent asked the defendant for proof of citizenship, he produced a French driver’s license. The defendant then acknowledged that he was a French citizen, that friends had dropped him off in Canada near the border, and that he had entered the United States illegally by riding a bike through the closed St. Pamphile Port of Entry. Immigration records showed that the defendant had been removed from the United States in 2015.
The case was investigated by the U.S. Border Patrol.
Founder of $50 Million Mail Fraud Scheme Arrested in FloridaRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Eric Epstein, age 57, of Pompano Beach, Florida (previously of Owings Mills, Maryland) was arrested today on charges of mail fraud and conspiracy to defraud the Internal Revenue Service. Epstein was indicted on August 24, 2017 and charged with committing mail fraud to obtain more than $50 million in money and property from various businesses through the fraudulent sale of light bulbs and cleaning supplies.
The arrest was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service, Criminal Division; and Inspector in Charge Robert B. Wemyss of the United States Postal Inspection Service, Washington Division.
According to the indictment, in or about 2003, Epstein co-founded a telemarketing business, Midway Industries, based in Maryland that sold lightbulbs and cleaning supplies to businesses, schools, churches, non-profit organizations, and government offices. Epstein obtained money from thousands of victim businesses by convincing them to pay for light bulbs and cleaning supplies that they never ordered, and deceived the businesses about the amounts Midway would bill for products.
Epstein sold a majority financial interest in Midway in 2012 for $15 million, however he retained an ownership stake, received a regular paycheck, and continued to advise and supervise Midway employees. From 2003 through 2014, Midway employees would cold call businesses stating that the business had an existing business relationship with Midway, make false representations, send unwanted orders, and inflate the price of products. The inflated prices were regularly 900% greater than the prices Midway paid for the supplies. At times, invoices were more than 8000% higher than the true amount due.
Employees at Midway worked on commission, the amount of which was often determined by Epstein. Epstein offered financial incentives to employees based on customer payments, and employees were rewarded with gift cards in order to induce them to place initial orders.
Epstein caused victims’ checks payable to Midway corporate entities to be cashed at money remitters, while Epstein personally kept and used the money. Epstein and others at Midway used Midway credit cards for lavish personal expenditures, such as luxury furniture and vehicles.
If convicted, Epstein faces a maximum sentence of 20 years in prison for mail fraud conspiracy and 5 years in prison for conspiracy to defraud the Internal Revenue Service. Epstein is scheduled to have an initial appearance in U.S. District Court in Baltimore on September 15, 2017.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning thanked the FBI, IRS and USPS for their work on the investigation. Mr. Schenning commended Assistant U.S. Attorneys Sean R. Delaney and Harry M. Gruber who are prosecuting the case.
Former Union Officer Pleads Guilty to Embezzling over $280,000 in Union FundsRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Ryan Jones, 34, of Bath, Maine pleaded guilty today to embezzling $280,865 from a union during a period when he served as an officer of that union.
According to court records, from 2009 until January 2017, the defendant was the Secretary-Treasurer of the International Association of Machinists and Aerospace Workers, Local Lodge S6, a labor union. The defendant’s tenure ended when he failed to win re-election. In January, the newly elected union officials discovered discrepancies with union finances. The ensuing federal investigation revealed that the defendant made almost 200 unauthorized withdrawals from the union’s bank account, he fabricated monthly bank statements to conceal his withdrawals, he provided the fabricated bank statements to union auditors to deceive them, and he embezzled about $280,865 between May 2012 and November 2016.
The defendant faces up to 5 years in prison, three years of supervised release, and a $10,000 fine. He will also be ordered to pay full restitution to the union.
The investigation was conducted by the Bath Police Department; the U.S. Department of Labor, Office of Labor-Management Standards; and the Federal Bureau of Investigation.
Former Turkish Minister of the Economy, Former General Manager of Turkish Government-Owned Bank, and Two Other Individuals Charged with Conspiring to Evade U.S. Sanctions Against Iran and Other OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Dana Boente, the Acting Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a superseding Indictment charging MEHMET ZAFER CAGLAYAN, a/k/a “Abi,” SULEYMAN ASLAN, LEVENT BALKAN, and ABDULLAH HAPPANI with conspiring to use the U.S. financial system to conduct hundreds of millions of dollars’ worth of transactions on behalf of the Government of Iran and other Iranian entities, which were barred by United States sanctions; lying to U.S. government officials about those transactions; laundering funds in connection with those illegal transactions, including millions of dollars in bribe payments to CAGLAYAN, ASLAN, and others used to facilitate the scheme; and defrauding several financial institutions by concealing the true nature of these transactions. The superseding Indictment further alleges that CAGLAYAN’s co-defendants – REZA ZARRAB, a/k/a “Riza Sarraf,” MEHMET HAKAN ATILLA, MOHAMMAD ZARRAB, a/k/a “Can Sarraf,” a/k/a “Kartalsmd,” CAMELIA JAMSHIDY, a/k/a “Kamelia Jamshidy,” and HOSSEIN NAJAFZADEH, who previously were charged in this case with the same offenses – participated in the same overarching scheme to violate and evade prohibitions against Iran’s access to the U.S. financial system. The case is assigned to United States District Judge Richard M. Berman.
REZA ZARRAB was arrested on March 19, 2016, and ATILLA was arrested on March 27, 2017. REZA ZARRAB and ATILLA are scheduled to begin trial on October 30, 2017, before Judge Berman. CAGLAYAN, ASLAN, BALKAN, HAPPANI, MOHAMMAD ZARRAB, JAMSHIDY, and NAJAFZADEH remain at large.
According to the allegations contained in the superseding Indictment filed today in Manhattan federal court[1]:
The scheme functioned largely by using the Turkish government-owned bank (“Turkish Bank-1”) at which ASLAN was the General Manager, ATILLA was the Deputy General Manager of International Banking, and BALKAN was an Assistant Deputy Manager for International Banking, to engage in transactions that violated U.S. sanctions against Iran. The defendants used Turkish Bank-1 to facilitate REZA ZARRAB’s ability to use his network of companies to supply currency and gold to the Government of Iran, Iranian entities, and SDNs using Turkish Bank-1, while concealing Turkish Bank-1’s role in the violation of U.S. sanctions from regulators. HAPPANI was an employee of REZA ZARRAB’s and assisted him in operating the scheme through this network of companies. CAGLAYAN, who was serving as Minister of the Economy in Turkey at all times relevant to the Superseding Indictment, received tens of millions of dollars’ worth of bribes in cash and jewelry from the proceeds of the scheme to provide services to the Government of Iran and to conceal those services from U.S. government officials. Using his position as Minister of the Economy, CAGLAYAN directed other members of the scheme, including officers of Turkish Bank-1, to engage in certain types of deceptive transactions, approved the steps taken by other members to implement the scheme, and protected the scheme from competitors as well as from scrutiny. As a result of this scheme, the co-conspirators induced U.S. banks to unknowingly process international financial transactions in violation of the IEEPA.
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CAGLAYAN, 59, is a resident and citizen of Turkey. REZA ZARRAB, 33, is a resident of Turkey and dual citizen of Turkey and Iran. ASLAN, 47, ATILLA, 47, BALKAN, 56, and HAPPANI, 42, are residents and citizens of Turkey. MOHAMMAD ZARRAB, 39, is REZA ZARRAB’s brother and is a resident of Turkey and dual citizen of Turkey and Iran. JAMSHIDY, 31, is a resident of Turkey and dual citizen of Turkey and Iran. NAJAFZADEH, 67, is a resident of Iran and the UAE and a citizen of Iran. Each defendant is charged with conspiracies to defraud the United States, to violate the IEEPA, to commit bank fraud, and to commit money laundering, as well as substantive counts of bank fraud and money laundering. The conspiracy to defraud the United States count carries a maximum term of imprisonment of five years. The conspiracy to violate the IEEPA, money laundering conspiracy, and substantive money laundering counts each carry a maximum term of imprisonment of 20 years. The bank fraud counts each carry a maximum term of imprisonment of 30 years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard, Sidhardha Kamaraju, and David W. Denton, Jr., and Special Assistant United States Attorney Dean C. Sovolos, are in charge of the prosecution, with assistance from Trial Attorneys Elizabeth Cannon and David Recker of the Counterintelligence and Export Control Section.
The charges contained in the superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the superseding Indictment, and the description of the superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Pelham Resident Pleads Guilty to Tax Evasion SchemeRead the Press Release
CONCORD, N.H. - Gary Peter Borak, 50, formerly of the Pelham, New Hampshire area, pleaded guilty Tuesday to one count of tax evasion and two counts of making false statements on tax returns, announced Acting United States Attorney John J. Farley.
According to court documents and statements made in court, Borak filed a legitimate federal income tax return for 2007 – prepared by his accountant -- that established that he had an outstanding tax debt of more than $50,000. In response to IRS efforts to collect that debt after Borak failed to pay it, Borak engaged in a series of ploys in an attempt to defeat the payment of the tax and the assessment of new income taxes for future tax years.
Among other things, in 2011, Borak filed an amended return for 2007 and an original, but delinquent, tax return for 2008 in which he made bogus claims that he had large amounts of Original Issue Discount (often abbreviated “OID”) income and large amounts of corresponding withholding from a so-called non-existent “straw man” financial account. He claimed that the withholding not only satisfied his outstanding tax debt from 2007, but also qualified him for large tax refunds. To support his false claims, Borak created fake IRS forms purportedly prepared and issued by a particular bank and sent the IRS volumes of correspondence and other documents containing highly unconventional and meritless claims about the tax laws. Borak persisted in pressing his bogus claims even after the IRS and his accountant told him that they were frivolous. He also attempted to satisfy his tax debt by submitting sham financial instruments to the IRS.
Borak’s conduct resulted in an actual tax loss to the U.S. Treasury of about $168,147. Including his false claims for refunds that were not paid, Borak intended a tax loss of approximately $1.3 million.
Borak’s sentencing is scheduled for December 15, 2017.
This matter was investigated by the Manchester office of Criminal Investigation of the Internal Revenue Service and the Treasury Inspector General for Tax Administration. They were assisted by the Rockingham County and Hillsborough County Sheriff Departments and the Atkinson, Hudson, Salem, and Pelham police departments. The case is being prosecuted by Assistant U.S. Attorneys Seth Aframe and Bill Morse.
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Former National Institutes of Health Employee Sentenced to 12 Months for Stealing Government PropertyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Greenbelt, Maryland – On September 5, 2017, U.S. District Judge Paul W. Grimm sentenced Christopher Dame, age 51, of Gaithersburg, Maryland, to six months in federal prison, six months home confinement, and three years of supervised release for theft of government property. Dame, a former Visual Information Specialist for the National Institutes of Health’s (NIH) Medical Arts Division, which is located in Bethesda, Maryland, previously pled guilty to stealing NIH property and selling it online without authorization.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Nicholas DiGiulio of the Department of Health and Human Services Office of the Inspector General; and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service Office of Inspector General.
According to admissions made in connection with his guilty plea, Dame was responsible for designing, printing, and displaying decorative and informational materials in NIH buildings, as well as directing his colleagues to place purchase orders of printing ink for the Medical Arts Division. At no point did Dame have authority to remove NIH property from the main campus or sell NIH property.
Dame admitted that from January 3, 2013, through January 12, 2017, he regularly stole medical research equipment, photography equipment, and printing supplies belonging to NIH, and sold such items through an e-commerce corporation. Dame also deceived his colleagues into purchasing surplus ink for NIH, with the intent to ultimately steal the ink which he then sold online for his own benefit. Between 2013 and 2017, Dame stole over 400 items belonging to NIH. As part of his plea agreement, Dame will be required to pay restitution in the full amount of the loss, which is $75,613.14.
Acting United States Attorney Stephen M. Schenning commended the Department of Health and Human Services Office of Inspector General, the United States Postal Service Office of Inspector General, the United States Postal Inspection Service, and the NIH Division of Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Michael T. Packard and Trial Attorney Simon J. Cataldo from the Department of Justice, Public Integrity Section, who are prosecuting the case.
Former Gautier Resident Sentenced to Prison for Mail FraudRead the Press Release
Gulfport, Miss. – Leonard Charles Thomas, 39, formerly of Gautier, Mississippi, was sentenced on August 31, 2017, by U.S District Judge Sul Ozerden, to serve 25 months in federal prison for mail fraud in connection with the Deepwater Horizon Oil Spill, announced Acting U.S. Attorney Harold Brittain. Thomas was also ordered to pay restitution in the amount of $118,171.52 to BP America, Inc.
Thomas carried out a scheme to defraud the Gulf Coast Claims Facility by making materially false representations, through wire and mail submissions, that he suffered damages and lost employment as a deckhand and fisherman on a fishing boat in the harbor in Pass Christian, Mississippi. An investigation revealed that Thomas did not work on the fishing boat and did not lose earnings and profits as a result of the oil spill. He received $118,171.52 as a result of his fraudulent scheme.
This case, which was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Andrea Jones, is the result of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
Former Financial Advisor Sentenced to 33 Months in Prison for Stealing More Than $1 Million from ClientsRead the Press Release
WASHINGTON – A former financial advisor, who provided services and investment advice to current and former professional athletes, was sentenced today to 33 months in prison for stealing more than $1 million from his clients, announced U.S. Attorney Channing D. Phillips and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
Brian J. Ourand, 56, now of Chicago, admitted stealing from four athletes, including boxing champion Mike Tyson and former National Basketball Association All-Star Glen Rice. At the time of the offense, Ourand was an executive for a Washington, D.C.-based company.
Ourand pled guilty in February 2017 to a charge of wire fraud in the U.S. District Court for the District of Columbia. In addition to the prison term, the Honorable Tanya S. Chutkan ordered Ourand to pay $1,002,390 in restitution and an identical amount as a forfeiture money judgment. Following his prison term, Ourand will be placed on three years of supervised release. During that time, the judge ordered, he must provide financial disclosure statements and perform 100 hours of community service.
“Brian Ourand’s greed came at a cost to the people who trusted him with their money,” said U.S. Attorney Phillips. “Instead of wisely managing his clients’ funds, as he had promised to do, he used the money for hotels, health care memberships, rental cars and other personal expenses. Today’s sentence holds him accountable for his larcenous acts.”
“Brian Ourand concocted a series of lies with one goal in mind – to enrich himself and others by stealing approximately $1 million and deceiving those who put their trust in him,” said Assistant Director in Charge Vale. “Financial fraud is and continues to be, a high priority for the FBI and we will continue to work closely with our partners to bring these white-collar criminals to justice”
In his plea, Ourand admitted that he embezzled the funds through various means, including numerous fraudulent checks that he made payable in his own name and to cash, which he later deposited into his personal accounts. Ourand also admitted to stealing his clients’ money for the benefit of others, including his girlfriend and another individual identified in court documents as “Person B.” In one such instance, Ourand obtained a cashier’s check using funds from the bank account of Mr. Rice in the amount of $10,000 in order to pay the registration fee of “Person B” to participate in the 2009 World Series of Poker tournament in Las Vegas. Ourand also used client funds to send numerous wire transfers to his girlfriend and “Person B” via Western Union, at least some of which money was used to pay off Ourand’s gambling debts.
According to a statement of offense submitted as part of the plea, the criminal activities began as early as 2006 and continued through July 2011. Ourand’s employer, identified in court documents as “Company A,” terminated his employment in August of 2011, after the scheme was uncovered. The company reimbursed the athletes for their losses.
In his work for the firm, Ourand and the company provided advisory and financial management services to high net-worth individuals, most of whom were current or former professional athletes. For example, Ourand and the company paid invoices and bills, coordinated tax preparation, and provided estate planning on behalf of clients. In that capacity, Ourand managed his clients’ personal and business bank accounts and credit cards, among other financial-related services.
The criminal charges involved Ourand’s work for Mr. Tyson, Mr. Rice, and two other athletes, identified in court documents as “Athlete C” and “Athlete D.” As part of the plea agreement, Ourand agreed that he abused a position of trust in committing the offense.
According to the statement of offense, Ourand deposited nearly 100 checks, drawn on the accounts of the four athletes, into a personal bank account, even though he was not authorized to do so. He also initiated numerous wire transfers, drawn on the bank accounts of Mr. Tyson, Mr. Rice and “Athlete C,” for which he had no authorization. As part of his scheme, Ourand also made numerous unauthorized ATM withdrawals and debit card transactions using funds belonging to Mr. Tyson, and obtained credit cards in his own name on the accounts of Mr. Rice and a foundation formed by “Athlete C,” which Ourand used to make unauthorized purchases.
Ourand sought to conceal his activities by generating documentation falsely claiming the money was used for business-related or otherwise authorized expenses, such as “personal expenses” for the client. His actions caused $546,168 in losses for Mr. Rice; $265,124 for Mr. Tyson; $182,957 for “Athlete C,” and $8,141 for “Athlete D.”
According to the government’s evidence, Ourand used the money for personal expenses, including to pay ordinary, everyday costs such as groceries and gas stations and to cover more expensive purchases, such as stays at high-end hotels, rental cars, health club membership fees, department store purchases, golf course fees, tanning salons, and fancy restaurants.
The Securities and Exchange Commission previously announced charges against Ourand, who was later found to have misappropriated funds from client accounts in violation of securities laws. Ourand has been ordered to pay disgorgement of $671,367 plus prejudgment interest and a $300,000 penalty, and he was barred from the securities industry.
In announcing the sentence, U.S. Attorney Phillips and Assistant Director in Charge Vale commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office for the District of Columbia, including Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Special Assistant U.S. Attorney Vesna Harasic-Yaksic, also of the Asset Forfeiture and Money Laundering Section; Supervisory Paralegal Specialist Tasha Harris; and former Paralegal Specialists Heather Sales and Angela Lawrence.
Finally, they commended the work of Special Assistant U.S. Attorney David A. Last and Assistant U.S. Attorney Peter C. Lallas, who prosecuted the case.
Former Federal Corrections Officer Sentenced to Prison for Accepting BribesRead the Press Release
Jackson, Miss - James P. Cheatham III, 24, of Brandon, a former federal corrections officer, was sentenced today by U.S. District Judge Daniel P. Jordan, III, to serve 15 months in federal prison followed by three years of supervised release, and ordered to pay a $1500 fine, for accepting bribes to introduce contraband into the federal correctional facility in Yazoo County, Mississippi, announced Acting U.S. Attorney Harold Brittain and Special Agent in Charge Robert Bourbon of the DOJ OIG’s Miami Field Office.
Cheatham previously pled guilty to a one-count federal indictment charging him with violation of Title 18 USC 201(b)(2)(C) – being a public official providing to an inmate a prohibited object.
"Greed and corruption have no place in our criminal justice system," stated Special Agent in Charge Robert Bourbon of the DOJ OIG’s Miami Field Office. "We want to thank our law enforcement partners for their continued efforts to ensure that individuals who abuse their position are vigorously investigated, prosecuted, and punished."
The case was investigated by the Department of Justice-Office of Inspector General and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Erin Chalk.
Former Federal Correctional Officer Pleads Guilty to Bribery ChargeRead the Press Release
Earlier today, Jonathan Galicia, pled guilty at the federal courthouse in Brooklyn, New York, to one count of soliciting and accepting a bribe as a public official. The proceeding took place before United States District Judge Eric N. Vitaliano. At the time of the offense, Galicia was a correctional officer at the Metropolitan Detention Center in Brooklyn, New York (MDC), and has since resigned from his position.
The plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Ronald G. Gardella, Special Agent-in-Charge, United States Department of Justice, Office of the Inspector General, New York Field Office (DOJ OIG).
According to court filings and facts presented during the plea proceeding, in June 2016, while a correctional officer at the MDC, Galicia accepted a $3,700 bribe payment to smuggle an Apple iPhone into the MDC and provided the contraband phone to an inmate, who thereafter used the phone while incarcerated at the MDC.
“Motivated by greed, Galicia abused his position of trust within the federal correctional system,” stated Acting United States Attorney Rohde. “Introducing a smart phone into a federal detention center is a serious dereliction of duty, as it provides an opportunity for inmates to communicate with others on an unmonitored device in order to potentially continue criminal activity, obstruct justice and intimidate witnesses.”
“When prison staff smuggles a cell phone into prison, they put their colleagues, inmates, and the community at risk,” stated DOJ OIG Special Agent-in-Charge Gardella. “The OIG will continue to assist the Federal Bureau of Prisons in its efforts to stop contraband from entering federal prisons, and to catch and bring to justice any Justice Department employee involved in a smuggling scheme.”
At sentencing, Galicia faces up to 15 years in prison, as well as forfeiture of $3,700 and a fine.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Marisa Seifan and Nadia Shihata are in charge of the prosecution.
The Defendant:
JONATHAN GALICIA
Age: 34
Bronx, New York
E.D.N.Y. Docket No. 17-CR-321 (ENV)
Federal Judge Hands Down Lengthy Prison Terms to Five Methamphetamine TraffickersRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down yesterday lengthy prison terms to five methamphetamine traffickers, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
Carlos Antonio Flores, 34, of El Salvador, was sentenced to life in prison; Randy Lee Bivens, 35, of Hickory, N.C. was sentenced to 169 months in prison and five years of supervised release; Franklin Martinez Hernandez, 46, of Mexico was sentenced to 135 months in prison and five years of supervised release; Jerico Nathaniel Chapman, 29, of Valdese, N.C. was sentenced to 130 months in prison and five years of supervised release; and Nathan Ray Bumgarner, 55, of Connelly Springs, N.C. was sentenced to 130 months in prison and five years of supervised release.
According to court documents and yesterday’s sentencing hearings, the drug conspiracy was responsible for trafficking more than 15 kilograms of crystal methamphetamine, with a street value of approximately $1.5 million. Flores and Hernandez had leadership roles within the drug ring. According to evidence presented at Flores’s trial, law enforcement officials seized one kilogram of 96% pure crystal methamphetamine which Flores was transporting hidden in a box of cat litter.
All of the defendants were charged as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. According to court documents, since 2015, more than 170 individuals have been prosecuted as a result of the investigation. Court records show that the members of the drug trafficking organizations involved have trafficked several millions worth of methamphetamine. Over the course of the investigation, law enforcement seized more than 20 kilograms of crystal methamphetamine, $500,000 in U.S. currency and other assets, and dozens of firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Rose thanked ICE-Homeland Security Investigations (HSI); the Charlotte Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Boone Police Department; the Hickory Police Department; the Mooresville Police Department; the Wilkesboro Police Department; the Caldwell County Sheriff’s Office; the Catawba County Sheriff’s Office; the Iredell County Sheriff’s Office; the Wilkes County Sheriff’s Office; and the Burke County Sheriff’s Office for their investigative efforts.
The prosecution is being handled by Assistant U.S. Attorney (AUSA) Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte. Carlos Flores’s trial was conducted by Assistant U.S. Attorneys Steven R. Kaufman and Sanjeev Bhasker.
Federal Grand Jury Indicts Former LegacyTexas Bank Employee for EmbezzlementRead the Press Release
DALLAS — A federal grand jury returned an indictment last week, unsealed today, charging a former LegacyTexas Bank employee with embezzlement. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
The two-count indictment charges Susann Nelson, 54, of Greenville, Texas, with one count of bank theft, embezzlement, or misapplication and one count of fraud and false statements in bank entries, reports, and transactions. Nelson surrendered to federal authorities and made her initial appearance in federal court yesterday.
According to the indictment, between 1999 and 2015, Nelson was an employee of LegacyTexas Bank in Richardson, Texas. Starting sometime in 2006 and continuing until 2015, Nelson managed the central vault, where she maintained control over the amount of cash in the LegacyTexas Bank’s vault on a daily basis, including ordering cash from the Federal Reserve Bank and other financial institutions and documenting the receipt of cash into the bank’s books and records.
The indictment alleges, starting in January 2010 and continuing until February 10, 2015, Nelson embezzled cash from cash deposits from the Federal Reserve Bank and made false entries in the books and records of the bank in order to conceal the embezzled cash. Nelson also engaged in a scheme in which successive cash purchases were misapplied to prior cash purchases in order to hide the embezzlement of money.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, counts carry a maximum statutory penalty of 30 years in federal prison and a $250,000 fine. Restitution may also be ordered.
The Federal Deposit Insurance Corporation Office of Inspector General and Federal Bureau of Investigation are investigating the case. Deputy Criminal Chief Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
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Federal Court Shuts Down Louisiana Tax Return PreparersRead the Press Release
A federal district court in Shreveport, Louisiana has permanently barred defendants Angelina Adams aka Angelina Morris and Angie’s Tax Service LLC from preparing federal tax returns for others, the Justice Department announced today. The defendants consented to the permanent injunction after the government filed a complaint.
The complaint alleged that Adams of Princeton, Louisiana and her tax preparation business, Angie’s Tax Service LLC, located in Ringgold, Louisiana, repeatedly and continually prepared tax returns that understated liabilities and overstated refunds. Their alleged schemes included fabricating Schedule Cs, Profit or Loss from Business, to secure bogus earned income tax credits; deducting false employee business expenses and moving expenses on Schedule As, Itemized Deductions; and claiming unsupported education credits.
In one example cited in the complaint, Angie’s Tax Service prepared a customer’s returns to report over $25,000 and $20,000 in Schedule C, Profit or Loss from Business, losses for an electrician business in the 2013 and 2014 tax years, respectively. The complaint alleged that the customer had no such business. In another example, the complaint alleged that Adams prepared a customer’s return to report $24,484 in unreimbursed employee business expenses although the customer incurred no out-of-pocket expenses for her job. As alleged in the complaint, the use of fraudulent unreimbursed business expenses by the defendants may have generated more than $10 million in fraudulent deductions.
Return preparer fraud is one of the Internal Revenue Service (IRS)’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Dover Man Sentenced to Two Years on Federal Firearms ChargeRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Isaiah Johnson, 37, of Dover, New Hampshire, was sentenced to two years in federal prison for being a previously convicted felon in possession of ammunition.
According to court documents and statements made in court, on September 20, 2016, Dover Police pulled over a vehicle for a traffic violation. During the traffic stop, Police observed Johnson acting suspiciously in the passenger’s seat. Police ordered Johnson out of the vehicle and conducted a safety pat-down, which revealed a loaded ammunition clip in his pocket. As a previously-convicted felon, Johnson is prohibited from possessing ammunition or firearms.
Johnson pleaded guilty to an indictment in this case on May 17, 2017. Following his term of imprisonment, Johnson will be placed on supervised release for a period of three years.
This matter was jointly investigated by the Dover Police Department and the Drug Enforcement Agency. The case was prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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Dorchester Man Sentenced for Federal Gun OffenseRead the Press Release
BOSTON – A Dorchester man was sentenced today in federal court in Boston for knowingly selling a firearm and ammunition to a felon.
Michael Browne, 49, of Dorchester, was sentenced by U.S. District Court Judge Leo T. Sorokin to 87 months in prison and three years of supervised release. In May 2017, Browne pleaded guilty to one count of knowingly transferring a firearm to a felon.
On Oct. 4, 2010, Browne sold a .357 caliber Smith and Wesson revolver and four bullets for $700 to an individual Browne knew had been previously convicted of a felony offense.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney David Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Dominican National Sentenced for Heroin and Cocaine TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Worcester for his role in a heroin and cocaine trafficking conspiracy.
Hugo Santana-Dones, a/k/a Raphael Jose Ventura, 43, a Dominican national previously residing in Leominster, was sentenced by U.S. District Court Judge Timothy S. Hillman to 80 months in prison and will face deportation upon completion of his sentence.
In May 2017, Santana-Dones pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin and 500 grams or more of cocaine; one count of distribution and possession with the intent to distribute 100 or more grams of heroin; and one count of possession with the intent to distribute 500 or more grams of cocaine and 100 or more grams of heroin.
Santana-Dones is the first of five co-defendants to be sentenced for their roles in the heroin and cocaine trafficking conspiracy which occurred primarily in Worcester County. Osvaldo Vasquez, 49, of Worcester; Jose Federico Vasquez, 55, a Dominican national residing in Providence, R.I.; Elvis Genao, 27, of Fitchburg; and Feliz Melendez, 41, of Leominster, have all pleaded guilty to their involvement in the conspiracy and will be sentenced later this month.
In the late summer of 2014, federal agents began investigating narcotics trafficking activities by Osvaldo Vasquez and his associates, Federico Vasquez, Melendez, Genao, and Santana-Dones. Between November 2014 and July 2015, with the help of a cooperating witness, agents made numerous recorded purchases of heroin - sometimes laced with fentanyl - from members of the conspiracy, seizing over 400 grams of heroin as a result.
During a court-authorized wiretap, Vasquez and his co-defendants were heard discussing the purchase and sale of multiple kilograms of narcotics, and, demonstrated an awareness of the potential deadly consequences of the narcotics they were distributing. On May 7, 2016, Osvaldo Vasquez, Melendez, and Federico Vasquez were intercepted discussing how the high number of heroin overdose deaths occurring at the time were cutting into their sales.
In August 2015, federal agents executed a search warrant at the conspirators’ homes. At Osvaldo Vasquez’s home in Worcester, agents found 679 grams of heroin and 723 grams of cocaine, as well as a Taurus PT .380 semi-automatic handgun. The telephone that was the subject of the wiretap, cutting tools, and over $7,000 in cash was also recovered in the home. At the residence of Santana-Dones in Leominster, agents found 224 grams of heroin, 110 grams of cocaine, and 8.9 grams of cocaine base (crack cocaine), along with cutting tools, a hydraulic kilogram press, over $1,300 in cash, and two phones that had been intercepted on the wiretap. At the residence of Melendez, who was on parole for state firearm and narcotics charges at the time, 3.1 grams of cocaine, a digital scale, over $1,000 in cash, and a phone that had been intercepted on the wiretap was recovered. At the residence of Jose Federico Vasquez in Providence, agents found 3.4 grams of cocaine.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest F. Martineau; and Leominster Interim Police Chief Michael Goldman, made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the case.
Council Bluffs Man Sentenced to 360 Months in Prison for Drug Conspiracy and Gun CrimesRead the Press Release
COUNCIL BLUFFS, IA - On September 5, 2017, William Henry Adkins, 65, of Council Bluffs, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 360 months in prison for his participation in a conspiracy to distribute methamphetamine and firearms offenses, announced United States Attorney Kevin E. VanderSchel. Co-defendant Windy Marie Hannon, 40, also of Council Bluffs, Iowa, was sentenced by Judge Ebinger on August 9, 2017, to 150 months in prison for her role in the conspiracy to distribute methamphetamine.
On April 17, 2017, Adkins proceeded to a jury trial and was found guilty on all counts -- conspiracy to distribute methamphetamine, two counts of possession with intent to distribute methamphetamine, possession of a firearm during a drug trafficking crime, and possession of a firearm by a prohibited person. Co-defendant Hannon previously entered a plea of guilty on April 4, 2017.
Evidence at trial proved Adkins was responsible for conspiring to distribute over 2,300 grams of methamphetamine. Upon his arrest on federal charges in January 2017, Adkins was found in possession of methamphetamine, scales, baggies, drug ledgers, a loaded .40 caliber handgun, and deposit receipts totaling over $32,000.
This investigation was conducted by the Southwest Iowa Narcotics Enforcement Task Force, which consists of the Council Bluffs Police Department, Mills County Sheriff’s Office, Pottawattamie County Sheriff’s Office, and Iowa Department of Public Safety Division of Narcotics Enforcement. The United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted with the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Colombian National Sentenced for International Money LaunderingRead the Press Release
BOSTON – A Colombian National was sentenced today in federal court in Boston for his role in a conspiracy to launder money from various international locations back to Colombia.
Pedro Mejia Salazar, 73, of Medellin, Colombia, was sentenced by U.S. District Court Judge Allison D. Burroughs to 50 months in prison and three years of supervised release. Mejia is subject to deportation after serving his sentence. On May 3, 2017, Mejia traveled from Colombia to the United States to plead guilty to the charges against him. The following day, Mejia appeared in federal court in Boston where he was charged with - and pleaded guilty to - one count of conspiracy to launder money.
Mejia used a family business, which he ran, to launder drug proceeds for and on behalf of the criminal syndicate La Oficina de Envigado, based in Medellin, Colombia. Between May 2009 and June 2012, Mejia laundered at least $768,586 in drug proceeds at the direction of Colombian-based money brokers working for La Oficina.
This case is part of Operation Powerplay, an international undercover investigation targeting Colombia-based money brokers who launder drug proceeds for international drug trafficking organizations. The investigation targeted drug traffickers who import drugs into the United States and money launderers who use the international financial system and the Black Market Peso Exchange to return drug proceeds collected in the United States and other countries to Colombia. To date, the investigation has resulted in the seizure of approximately $15.2 million, 3,967 kilograms of cocaine, 32,000 doses of MDMA, nine kilograms of methamphetamine, 1,183 kilograms of marijuana and 7.8 kilograms of heroin.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation, Boston Field Division; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant United States Attorneys Leah B. Foley and Nathaniel R. Mendell of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
California Methamphetamine Trafficker Sentenced to More Than 15 Years in PrisonRead the Press Release
CHARLOTTE, N.C. B Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Fernando Morales-Matos to 188 months in prison followed by four years of supervised release on drug trafficking offenses, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Morales-Matos, 45, of Carlsbad, California, pleaded guilty in February 2017 to one count of conspiracy to distribute and to possess with an intent to distribute methamphetamine and three counts of possession with an intent to distribute methamphetamine.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to filed court documents and today’s sentencing hearing, from in or about June 2016 until July 27, 2016, Morales-Matos and his cousin and co-defendant, Mario Canino-Morales, were involved in a drug conspiracy with the Mexican cartel responsible for trafficking large amounts of crystal methamphetamine in Mecklenburg County. According to court records, the co-conspirators admitted to being part of the Mexican cartel, with intentions to expand methamphetamine distribution in Charlotte. Court records show that the co-conspirators were responsible for trafficking more than 2.5 kilograms of 96% pure methamphetamine. In addition to the methamphetamine, when the two men were arrested, law enforcement recovered a loaded 9mm handgun.
Morales-Matos is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. Canino-Morales was previously sentenced to 109 months in federal prison for his involvement in this conspiracy.
In making today’s announcement U.S. Attorney Rose thanked ATF and CMPD for leading the investigation.
Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, prosecuted this case.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Juan Oliverias-Arbelo, 28, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between July 2014, and September 28, 2015, the defendant became active in a heroin distribution organization. On 12 occasions, Oliverias-Arbelo sold heroin to undercover officers. In total, the undercover officers 51 bags of heroin. On each occasion, the undercover officer and Oliverias-Arbelo would make contact by telephone to arrange a controlled purchase of heroin. The defendant utilized a phone provided to him by the organization. Oliverias-Arbelo was intercepted by law enforcement utilizing a phone to sell heroin to other individuals as well, during this time period.
The 10 defendants charged in this case were street-level distributors or “runners” in a heroin distribution organization operated by Daniel Molina-Rios who was arrested in June 2015 along with Orlando Rios, Luis Montanez and Jose Andujar. The organization acquired heroin from the New York City area for distribution in Buffalo but also had an alternate heroin source locally. A total of 14 defendants have been indicted in connection with this case, eight have been convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Bronx Pharmacist Pleads Guilty to Illegally Selling Millions of Prescription Pills on the Internet and Agrees to Forfeit $9 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Carl J. Kotowski, the Special Agent-in-Charge of the New Jersey Division of the Drug Enforcement Administration (“DEA”), announced that MAURICE MALIN pled guilty today before U.S. Magistrate Judge Andrew J. Peck to conspiring to illegally sell over 5 million prescription Butalbital pills to customers across the United States who did not have valid prescriptions for the drugs. MALIN also agreed today to forfeit $9 million to the United States, which represented his proceeds from the illegal scheme. MALIN’s case is before U.S. District Judge Kimba M. Wood.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As Maurice Malin admitted today in court, he made millions of dollars illegally dispensing drugs over the Internet to customers who had no valid prescriptions and had never seen a doctor. Pharmacists entrusted with the sale of controlled substances must safeguard the health of consumers, not scheme to profit from illegal drug sales.”
DEA Special Agent-in-Charge Carl J. Kotowski said: “Unfortunately, this is another example of a pharmacist who was more interested in making fast money than he was in helping the public. His actions help to erode the public’s trust in those in positions of responsibility.”
According to the allegations contained in the Complaint and the Information filed against MALIN and statements made in court filings and proceedings, including at today’s guilty plea:
MAURICE MALIN, the defendant, was a licensed pharmacist who operated pharmacies in the Bronx, New York (the “Malin Pharmacies”). Between at least March 2014 and July 2016, MALIN engaged in a scheme to dispense Butalbital, a Schedule III controlled substance, to customers who had not consulted with a physician and did not possess a valid prescription for the drug. Specifically, customers ordered Butalbital pills by filling out online medical questionnaires that typically posed a series of “yes” or “no” questions (the “Prescription Websites”). Customers ordered the drugs on the Prescription Websites without ever seeing or speaking to a physician or medical practitioner and without obtaining a valid prescription.
After the orders were placed by customers on the Prescription Websites, these orders were then sent to pharmacies, including the Malin Pharmacies, that dispensed the prescription drugs to customers. The Malin Pharmacies filled the prescriptions for customers who had placed orders via the Prescription Websites, and then sent the drugs, specifically Butalbital, through the mail to customers located across the United States. Customers paid for the drugs by, among other means, money orders made out to business entities associated with the Malin Pharmacies and MALIN.
During the course of the investigation, undercover agents made numerous purchases of Butalbital on the Prescription Websites that were fulfilled by the Malin Pharmacies. In certain instances, MALIN’s name was listed as the fulfilling pharmacist on the Butalbital bottles agents received. In addition, many of the bottles that were received as a result of the undercover buys did not bear the name of any doctor who had prescribed the Butalbital, and instead repeated the name of the patient in the location on the label where the doctor’s name should have appeared had there been a valid prescription. MALIN was also captured on recorded phone calls with undercover agents acknowledging that he was aware that customers who placed orders on the Prescription Websites had not met with or consulted with a physician prior to placing their online order.
MALIN was arrested on August 10, 2016.
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MALIN, 83, of Suffern, New York, pled guilty today to conspiring to distribute and possess with the intent to distribute a controlled substance, which carries a maximum term of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. MALIN’s sentencing date will be set by Judge Wood. In connection with his guilty plea, MALIN agreed to forfeit to the United States $9 million and certain specific property including funds in bank accounts and real property representing the proceeds of the scheme.
Mr. Kim praised the outstanding work of the DEA New Jersey Division in the investigation and thanked the U.S. Postal Inspection Service and the U.S. Food and Drug Administration for their assistance.
The case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Drew Skinner and Noah Solowiejczyk are in charge of the prosecution. Assistant U.S. Attorney Noah Falk of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.Boston Man Sentenced for Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for a federal firearm offense.
Troy Armstrong, 28, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to three years in prison and three years of supervised release. In May 2017, Troy pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
Following an investigation into drug and firearms trafficking in the Bunker Hill Housing Authority in Charlestown, Armstrong and three others, Samuel Jean, 22, of Everett; Jeffrey Joseph, 32, of Boston; and Deon Young, 32, of Hyde Park, were arrested on Dec. 1, 2016. According to court documents, during the investigation, a cooperating witness made controlled buys of guns and drugs at the direction of law enforcement. During the controlled purchases, which, were recorded on video, Jean and Joseph sold seven firearms to the cooperating witness over a one-month period, including at least one stolen firearm. Armstrong sold the cooperating witness three firearms around the same time period, including one firearm with an obliterated serial number. It is alleged that Young conspired with Armstrong to sell firearms to the cooperating witness.
Jean pleaded guilty and was sentenced to two years in prison on March 2, 2017. Joseph pleaded guilty in August 2017 and is scheduled to be sentenced on Oct. 23, 2017. Young pleaded not guilty and is scheduled for trial on Jan. 8, 2018.
Acting U.S. Attorney William D. Weinreb; Suffolk County District Attorney Daniel F. Conley; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney Lori Holik, Chief of Weinreb’s Major Crimes Unit, is prosecuting the cases.
The details contained in the charging documents are allegations and the remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Berkeley Man Sentenced on Murder for Hire ChargesRead the Press Release
St. Louis, MO - William “Chuckie” Clarett was sentenced to 120 months in prison after having been found guilty of conspiracy to commit murder for hire.
According to court documents, on April 22, 2015, Travis Hayden was murdered in Berkeley, MO. A witness identified William Clarett, a/k/a “Chuckie” as the shooter. That same day, the witness gave a written statement to police and picked Clarett out in a photospread. On December 31, 2015, investigators arrested Clarett for the murder of Travis Hayden. A complaint was issued on January 1, 2016, charging Clarett with Murder 1st Degree and Armed Criminal Action. Clarett was detained at the St. Louis County Justice Center.
On February 10, 2016, the witness testified before a grand jury in St. Louis County and the Grand Jury returned a true bill on the murder and ACA counts. The witness’ name and address were publicly disclosed in connection with the indictment. While Clarett was detained in the Justice Center on the murder, Clarett began talking to an inmate that he knew from the neighborhood. The inmate advised authorities that Clarett was asking him to help find someone to kill the witness. ATF then arranged to have an Undercover Officer (UC) pose as a potential hitman. Between June 14, 2016 and June 30, 2016, Clarett spoke to UC six times over the phone about killing the witness. On July 1, 2016, Clarett met with UC at the Justice Center and told him he would provide UC with the down payment for the murder. Thereafter, Clarett released $500 from his commissary which was later given to the UC along with the photograph of the witness.
Clarett, 34, Berkeley, MO, was convicted in May to one count of conspiracy to commit murder for hire, and appeared today for sentenced before United States District Judge Audrey Fleissig.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Cottleville Police Department.
Arizona Woman Sentenced for Federal Larceny Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Sabrina Morgan, 39, of Jeddito, Ariz., was sentenced today in federal court in Albuquerque, N.M., to five years of probation for her conviction on a larceny charge. The charge arose out of her stealing cash from a commercial business in Naschitti, N.M. Morgan also was ordered to pay $4,800.00 in restitution to the victim of her criminal conduct, and was ordered to perform 40 hours of community service.
Morgan was charged in an indictment filed on March 14, 2017, with stealing money belonging to the Red Mesa Trading Company, which is located on the Navajo Indian Reservation in San Juan County, N.M. At the time she committed the crime, Morgan was employed as the district supervisor of the Trading Company.
On April 26, 2017, Morgan entered a guilty plea to the indictment without the benefit of a plea agreement.
This case was investigated by the Farmington office of the FBI and was prosecuted by Assistant U.S. Attorney Michael D. Murphy.
Another Former Correctional Officer Pleads Guilty to Beating of Handcuffed and Shackled Inmate at Louisiana State Penitentiary at AngolaRead the Press Release
Officer Conspired to Cover Up Beating By Falsifying Records and Lying to Investigators
Acting United States Attorney Corey Amundson and Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division announced that a former supervisory correctional officer at Louisiana State Penitentiary in Angola, Louisiana, pleaded guilty today to participating in the beating of a handcuffed and shackled inmate, conspiring to cover up his misconduct by falsifying official records and lying to internal investigators about what happened.
John Sanders, 30, of Marksville, Louisiana, admitted during his plea hearing that he punched the inmate repeatedly in the head in retaliation for an earlier incident; that he witnessed other officers use excessive force against the inmate and failed to intervene; that he conspired with other officers to cover up the beating by engaging in a variety of obstructive acts; and that he personally falsified official prison records in order to cover up the beating.
Scotty Kennedy, 48, of Beebe, Arkansas, pled guilty in November 2016 for his role in the beating and cover up. Two co-defendants, Daniel Davis and James Savoy, remain scheduled for trial in January of 2018.
“A former correctional supervisor has admitted abusing a person in state custody and then lying to cover up his on-duty misconduct,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to vigorously prosecute correctional officers who use their official position to commit and to cover up violations of federal criminal law.”
Acting U.S. Attorney Corey Amundson stated, “Our office remains committed to prosecuting violations of the federal criminal civil rights laws whenever sufficient evidence exists to do so. No one is above the law.”
This case is being investigated by the FBI’s Baton Rouge Resident Office and is being prosecuted by Assistant U.S. Attorney Frederick A. Menner, Jr. of the Middle District of Louisiana and Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section.
Another Former Correctional Officer Pleads Guilty to Beating of Handcuffed and Shackled Inmate at Louisiana State Penitentiary at AngolaRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson and Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division announced that a former supervisory correctional officer at Louisiana State Penitentiary in Angola, Louisiana, pleaded guilty today to participating in the beating of a handcuffed and shackled inmate, conspiring to cover up his misconduct by falsifying official records, and lying to internal investigators about what happened.
John Sanders, 30, of Marksville, Louisiana, admitted during his plea hearing that he punched the inmate repeatedly in the head in retaliation for an earlier incident; that he witnessed other officers use excessive force against the inmate and failed to intervene; that he conspired with other officers to cover up the beating by engaging in a variety of obstructive acts; and that he personally falsified official prison records in order to cover up the beating.
Scotty Kennedy, 48, of Beebe, Arkansas, pled guilty in November 2016 for his role in the beating and cover up. Two co-defendants, Daniel Davis and James Savoy, remain scheduled for trial in January 2018.
Acting U.S. Attorney Corey Amundson stated, “Our office remains committed to prosecuting violations of the federal criminal civil rights laws whenever sufficient evidence exists to do so. No one is above the law.”
“Another former correctional supervisor has admitted abusing a person in state custody and then lying to cover up his on-duty misconduct,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to vigorously prosecute correctional officers who use their official position to commit and to cover up violations of federal criminal law.”
This case is being investigated by the FBI’s Baton Rouge Resident Office and is being prosecuted by Assistant U.S. Attorney Frederick A. Menner, Jr. of the Middle District of Louisiana and Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section.
Albuquerque Man Sentenced to Five Years for Conviction on Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Alex Bernard Fletcher, 41, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison for his conviction on methamphetamine trafficking laws and firearms charges. Fletcher will be on supervised release for five years after completing his prison sentence and will be required to perform 50 hours of community service.
Fletcher was arrested on Nov. 5, 2015, on a criminal complaint charging him with drug trafficking and firearms offenses. The criminal complaint charged Fletcher with distributing approximately 51 grams of methamphetamine to an undercover law enforcement officer on Oct. 28, 2015, in Bernalillo County, N.M. As officers were closing in to make the arrest, they observed Fletcher reach into his waistband and throw a firearm to the ground in an attempt to conceal it from the officers.
Fletcher was indicted on Dec. 2, 2015, and was charged with being a felon in possession of a firearm and ammunition, distributing methamphetamine, and using and carrying a firearm in relation to a drug trafficking crime. According to the indictment, in late Oct. 2015, Fletcher was prohibited from possessing firearms or ammunition because he previously had been convicted of several felony offenses.
On Aug. 30, 2016, Fletcher pled guilty to a two-count information charging him with distribution of methamphetamine, and using and carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Fletcher admitted selling 51 grams of methamphetamine to an undercover officer. Fletcher also admitted that he possessed a firearm during the drug deal in order to assist him facilitate his drug trafficking crime. Fletcher acknowledged that as a convicted felon, he was prohibited from possessing firearms or ammunition.
This case was investigated by Albuquerque office of Homeland Security Investigations and APD’s Central Narcotics Unit. Assistant U.S. Attorney Rumaldo R. Armijo prosecuted the case.
Tuesday 5 September 2017
Youngstown man admits to trafficking cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Dennis Lee Artis, of Youngstown, Ohio admitted today to distributing cocaine, Acting United States Attorney Betsy Steinfeld Jividen announced.
Artis, age 52, pled guilty to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.” Artis admitted to selling cocaine near Allison Elementary School in Hancock County on April 5, 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Hancock/Brooke/Weirton Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
U.S. Attorney's Office Launches Online Messaging Campaign to Highlight the Importance of Law Enforcement WellnessRead the Press Release
The U.S. Attorney’s Office for the District of Connecticut will implement an online messaging campaign in September during National Suicide Prevention Awareness Month to highlight the importance of law enforcement wellness and suicide prevention. According to Badge of Life, more officers die of suicide than from gunfire and traffic accidents combined. The Police Suicide Study estimates that an average of 130 law enforcement suicides occur per year, which is more than ten per month.
“The hard truth is that every year far more police officers take their own lives than are killed in the line of duty by criminals,” said U.S. Attorney Deirdre M. Daly. “This is not surprising when we consider the relentless demands and undeniable toll of the job. Police work draws people of exceptional courage and humility. But far too many officers suffer in silence unable to seek the help they need. We need to do everything we can to prioritize the well-being of all law enforcement officers.”
Over the course of the month, the U.S. Attorney’s Office will disseminate messages via social media using the hashtag #OfficerWellness.
U.S. Attorney and Police Chiefs Issue Statement on Project LongevityRead the Press Release
In 2012, federal, state and local officials combined to launch an innovative anti-violence initiative in New Haven. We called it Project Longevity in recognition of our goal to provide longevity to the lives of urban black males – who too often are cut down by gun violence – and because we aspired to instill the program’s core concepts in our police departments as an enduring way of “doing business.” Within the year, Bridgeport and Hartford were also up and running.
Project Longevity has lived up to its name. Now in its fifth year, it continues to bring together law enforcement, community members and service providers to collectively address violent crime. The budget for Project Longevity has included the salaries for a Statewide Manager, three city Project Managers, and three Service Coordinators. These seven individuals are the backbone of the operation. They have worked hard to forge partnerships between law enforcement, social service providers and members of violent groups to help those who want to step away from dangerous associations toward a new, law abiding life. This is not easy work, as it requires overcoming challenges involving employment, housing, addiction, anger management and transportation. Through the unwavering commitment of our Project Longevity leaders, they have earned the trust of both community members and violent offenders.
The Project Longevity leaders’ diligence has also led to remarkable relationships amongst all of our law enforcement partners. The police departments of our state’s three largest cities are working hand-in-hand with our Statewide Coordinator and their city’s Program Manager. Some departments insist that their special units meet and share intelligence on a daily or weekly basis. In New Haven, we have meetings four days a week, with representatives from the NHPD intel unit, shooting task force, homicide, robbery/burglary, and detective units, District Managers, SROs, Narcotics, Bureau of Identification, ATF, FBI, DEA, DOC, West Haven and Hamden Police Departments, adult probation, adult parole, juvenile prosecutor’s office, juvenile probation, and juvenile parole, federal probation, State’s Attorney’s Office, United States Attorney’s Office and the Project Longevity Project Manager in attendance. The group’s sole aim is to reduce, prevent and solve violent crime by quickly and resolutely responding to the latest group to act violently. Their success is boldly reflected in the dramatic decline in violent crime in New Haven since Project Longevity’s inception in 2012.
Taxpayers benefit directly from Project Longevity in the form of averted medical, law enforcement, and criminal justice expenses that otherwise are incurred by the government. Taking the yearly cost of the entire program, one study suggests that Connecticut taxpayers benefit from almost $5 million in net savings. But in light of Connecticut’s fiscal crisis, our Statewide Coordinator, three Project Managers and three Service Coordinators are working without pay or assurance they will receive retroactive remuneration. Each year, our project managers conduct at least three Call-Ins, participate in hundreds of Custom Notifications, deliver anti-violence presentations to community groups and schools, and spearhead food and clothing drives. Although this small team has not been paid for months, they have not stopped working to make our communities safer. Their dedication to Project longevity does not depend on a paycheck. We hope we can keep our promises to these faithful professionals.
U.S. Attorney Deirdre M. Daly
Bridgeport Police Chief Armando J. Perez
Hartford Police Chief James C. Rovella
New Haven Police Chief Anthony CampbellTopeka Man Pleads Guilty to Driving Getaway Car during RobberyRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty Tuesday to driving the getaway car during an armed robbery, U.S. Attorney Tom Beall said.
Jermaine Tyrell Patton, 29, Topeka, Kan., pleaded guilty to one count of aiding and abetting a commercial robbery and one count of aiding and abetting an armed robbery.
In his plea, Patton admitted taking part in a Nov. 5, 2016, robbery at Oakmark Convenience Store at 2518 N.E. Seward Avenue in Topeka. Patton’s accomplice, who was carrying a firearm, entered the store and demanded money. Patton was behind the wheel of a blue PT Cruiser when he and the robber fled the scene. When police stopped the car, both men fled on foot. Patton was quickly arrested.
The other man, Christopher Curtis Harris of Topeka, was arrested and charged in Shawnee County District Court with shooting Topeka Police Detective Brian Hill when Hill tried to arrest him.
Patton is set for sentencing Nov. 27. Both parties have agreed to recommend a sentence of not less than five years and not more than 15 years. Beall commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Stark County man sentenced to more than three years in prison for dumping wastewater in Tuscarawas RiverRead the Press Release
A North Lawrence man was sentenced to more than three years in prison for dumping wastewater into tributaries of the Tuscarawas River.
Adam D. Boylen, 46, previously pleaded guilty to four counts of violating the Clean Water Act by making unpermitted discharges. U.S. District Judge Sara Lioi sentenced him to 42 months in prison and ordered him to pay $85,338 in restitution.
“This defendant intentionally dumped waste into a tributary of the Tuscarawas River, killing fish and other aquatic life,” said U.S. Attorney Justin E. Herdman. “We will always protect our waterways and environment.”
“Protecting our water is critical, both for the health and safety of our citizens and our wildlife,” Ohio Attorney General Mike DeWine said. “We will continue to assist in this case and others like it to protect Ohio.”
“The defendant's deliberate and illegal dumping of wastewater killed thousands of fish and wildlife and harmed the quality of local waterways,” said Scot Adair, Acting Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Today's sentence reinforces EPA's commitment to work with its law enforcement partners to pursue egregious environmental crimes and the individuals who commit them.”
“Today’s sentencing concludes a successful investigation and prosecution of the multiple discharges into waters of the state, which violated the federal Clean Water Act,” said Ohio EPA Director Craig W. Butler. “We will continue to work with our partners at the local, state and federal agencies to make sure that public health and the environment is protected and responsible parties are held accountable.”
Boylen was a driver employed by an Ohio-based trucking company. Boylen’s job was to load wastewater generated from corporate facilities into a tanker truck and to drive the wastewater to a designated facility located in Pennsylvania for proper disposal. The wastewater contained surfactants capable of killing vegetation and fish, according to court documents.
Instead of delivering the wastewater to Pennsylvania, Boylen drove the tanker truck to remote locations in Tuscarawas County and central-eastern Ohio and emptied the wastewater containing surfactants into waters of the United States, according to court documents.
Boylen is charged with dumping the wastewater into two different tributaries of the Tuscarawas River, a wetland adjacent to the Tuscarawas River, and the Beach City Reservoir, on numerous occasions between April 18 and May 4, 2016.
White foam flowed down tributaries and streams as a result of Boylen’s actions. In one instance, the foam traveled four miles downstream from the location where the tanker truck was emptied. Vegetation was killed at all the locations. Approximately 709 fish were killed in one of the tributaries, and collectively, approximately 3,231 minnows, crayfish, frogs, and tadpoles were killed, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney Brad J. Beeson. The case was investigated by the United States and Ohio Environmental Protection Agencies, the Ohio Attorney General’s Bureau of Criminal Investigation, the Stark County Sheriff’s Offices, the Tuscarawas County Sheriff’s Offices, the Ohio Department of Natural Resources, and the Ohio Department of Rehabilitation and Correction.
Son of the Former President of Honduras Sentenced to 24 Years in Prison for Conspiring to Import Cocaine into the United StatesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that FABIO PORFIRIO LOBO was sentenced to 288 months in prison for conspiring to import cocaine into the United States. LOBO pled guilty on May 16, 2016, before U.S. District Judge Lorna G. Schofield, who imposed today’s sentence. LOBO’s father, Porfirio Lobo, served as president of Honduras between 2010 and 2014.
Acting Manhattan U.S. Attorney Joon H. Kim said: “By his own admission, Fabio Lobo conspired to import huge quantities of cocaine into the U.S. To assist traffickers and enrich himself, Lobo used his father’s position and his own connections to bring drug traffickers together with corrupt police and government officials. Now, Fabio Lobo has been sentenced to the substantial prison term his crimes merit.”
According to the Indictment, other court filings, evidence presented during a sentencing hearing held on March 6 and 16, 2017, and statements made during other court proceedings:
Before and while LOBO’s father was president of Honduras, LOBO used his and his father’s reputation and political network to broker corrupt connections between large-scale Honduran drug traffickers and individuals within the Honduran government, including high-level officials such as sitting Honduran congressmen as well as customs, military, and law enforcement personnel. By managing security and what LOBO described during a recorded meeting as “logistics” for these criminals, LOBO facilitated and participated in extensive cocaine trafficking with strong support from multiple elements of the Honduran government.
LOBO’s participation in drug trafficking began as early as 2009. During that year, while LOBO’s father was running for president of Honduras, LOBO’s father began receiving bribes from members of a drug-trafficking organization known as the Cachiros, which was a prolific and violent criminal syndicate that relied on connections to politicians, military personnel, and law enforcement to transport cocaine to, within, and from Honduras. The leaders of the Cachiros paid Porfirio Lobo over approximately $500,000 in exchange for, among other things, political protection from law enforcement investigations, prevention of extradition to the United States, and awards of contracts by Honduran government agencies to money-laundering front companies controlled by the Cachiros.
LOBO was introduced to the Cachiros initially as an individual who was willing to facilitate the award of Honduran government contracts to the Cachiros’ front companies, which were used to increase the appearance of their legitimacy and to launder drug proceeds. LOBO soon began protecting and supporting the Cachiros by acting as a conduit to Honduran officials capable of preventing interference with their drug trafficking operations. Between five and eight times, the Cachiros provided LOBO with advance notice of incoming drug loads so that LOBO would be available in the event of any interference with the shipments.
In 2012, LOBO participated more directly in the violent drug trafficking of the Cachiros. LOBO proposed to the Cachiros receiving cocaine-laden aircraft at locations in the Olancho Department of Honduras, and he personally helped escort two loads of drugs with an aggregate quantity of approximately 1.4 metric tons of cocaine. In connection with the transportation of those cocaine shipments, LOBO brought members of the Honduran military, who were armed with an AR-15 machine gun as well as pistols, for security, and LOBO personally rode with one of the leaders of the Cachiros so that LOBO would be able to place calls to Honduran officials in the event of any law enforcement interference. For his participation, LOBO received, among other things, approximately $70,000 in cash, an armored vehicle, and an AR-15 machine gun.
LOBO also assisted drug traffickers other than the Cachiros. In approximately 2012, LOBO assisted a maritime drug trafficking venture at Puerto Cortes, a large commercial port on the north coast of Honduras near the Honduras-Guatemala border, involving Fredy Renan Najera Montoya (a Honduran congressman), a Honduran customs official, a high-ranking member of Mexico’s Sinaloa Cartel, Carlos Lobo (another Honduran drug trafficker who is not related to LOBO), and others. LOBO made at least approximately $50,000 for participating in meetings regarding the shipments. LOBO also used his political access to protect and assist Carlos Lobo by helping him try to recover seized assets in exchange for approximately $100,000.
Beginning in or about 2013, the Drug Enforcement Administration (“DEA”) captured some of LOBO’s drug trafficking activities on tape after the leaders of the Cachiros started to covertly provide information and assistance to the United States government. Following public financial sanctions and asset seizures targeting the Cachiros in September 2013, LOBO stepped in to help coordinate on behalf of the Cachiros the receipt, protection, and transportation of a multi-ton load of cocaine for purported representatives of now-detained alleged Mexican kingpin Joaquin Archivaldo Guzman Loera, a/k/a “El Chapo.” Expecting to make millions of dollars for a shipment of approximately 3,000 kilograms of cocaine, LOBO met with confidential sources acting at the direction of the DEA (the “CSes”), agreed to provide military and “logistics” support to these purported drug traffickers, and facilitated introductions to at least two Honduran military officials.
LOBO also introduced the CSes to Honduran police officials who agreed to participate in the cocaine transaction by providing security and logistical support for the transportation of the cocaine through Honduras (the “Honduran National Police Defendants”). In June 2014, LOBO, the CSes, and six of the Honduran National Police Defendants participated in a recorded meeting in Honduras. During the meeting, the Honduran National Police Defendants placed a map of Honduras on a table and described to LOBO and the CSes the Honduran law enforcement presence along potential shipment routes for the cocaine. In exchange for their assistance, the Honduran National Police Defendants requested new phones for communications, vehicles to use, a pool of $200,000 for bribes to other officials, and bribes of $100,000 per person for themselves. Later in 2015, in consensually recorded calls and emails between LOBO and one of the Cachiros, LOBO agreed to travel to Haiti for the purpose of receiving payment from the proceeds of the cocaine transaction with the CSes. LOBO subsequently traveled to Haiti in May 2015 and was arrested.
Seven of the Honduran National Police Defendants, including, among others, MARIO GUILLERMO MEJIA VARGAS (“VARGAS”), CARLOS JOSE ZAVALA VELASQUEZ (“VELASQUEZ”), and VICTOR OSWALDO LOPEZ FLORES (“FLORES”), were subsequently indicted by a grand jury in the Southern District of New York for firearms and/or drug trafficking offenses. On July 11, 2016, Vargas, Velasquez, and Flores waived extradition in Honduras and surrendered voluntarily in Manhattan. FLORES, VELASQUEZ, and VARGAS have since pled guilty in federal court to conspiring to import cocaine into the United States, and they await sentencing by Judge Schofield.
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In addition to the prison term, LOBO, 46, was ordered to pay a $50,000 fine and to forfeit $266,667, which represents the proceeds he received from his drug trafficking offense.
Mr. Kim praised the outstanding efforts of the Special Operations Division of the DEA Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office. Mr. Kim also thanked the DEA’s Port-au-Prince Country Office, the Government of the Republic of Haiti and its Bureau de Lutte Contre le Trafic Illicite de Stupefiants, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Matthew J. Laroche are in charge of the prosecution.
The charges against Honduran National Police defendants Ludwig Criss Zelaya Romero, Juan Manuel Avila Meza, and Carlos Alberto Valladares Zuniga are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
Several Local Residents Slammed with Significant Sentences in Hostage Taking ConspiracyRead the Press Release
McALLEN, Texas – Several men who resided in the Mission area have been ordered to prison for their involvement in an illegal alien hostage taking scheme, announced Acting U.S. Attorney Abe Martinez.
Luis Aguilar Jr., 19; brothers Alhan Sanchez, 20, and Aaron Sanchez, 21, and Ricardo Renteria, 26, all of Mission; and Renteria’s nephew Ricardo Renteria-Rivera, 23, a Mexican citizen illegally present in the United States, all pleaded guilty to a conspiracy to commit hostage taking.
In handing down the sentences, U.S. District Judge Micaela Alvarez said that a strong message needs to be sent and ordered Aguilar to serve 350 months in federal prison. Brothers Alhan and Aaron Sanchez were sentenced to 324 and 195 months, respectively. Renteria-Rivera was ordered to serve a 290-month-sentence, while his uncle will serve a sentence of 300 months imprisonment.
Aguilar Jr.’s father, Luis Aguilar, 64, and Jose Luis Rodriguez-Melchor, 30, both pleaded guilty to being an illegal alien unlawfully present in the United States after deportation and to harboring an illegal alien and were sentenced to 97 and 105 months, respectively. They and Renteria-Rivera are expected to face deportation proceedings following their release from prison, while the remaining defendants were further ordered to serve three years of supervised release following their release from prison.
The investigation revealed that a group of illegal aliens had been held at a stash house awaiting further transportation north. On the night of May 2, 2016, a home invasion crew that included an armed Aguilar Jr. came into the stash house and demanded the aliens leave with them. The caretaker of the stash house was on the ground with a gun to his head. The aliens were then taken to another location where their cell phones and most of their belongings were taken from them.
Some of the undocumented aliens were taken to Aguilar Jr.’s residence which he shared with his father. While there, Aguilar Jr. told them that their initial smuggling arrangements were no good anymore and they had to make new arrangements with him. Aguilar Jr. held them at gunpoint and demanded the aliens give him the names and phone numbers of family members whom he then called to demand $2,000 for their release.
After receiving the money, Aguilar Jr. turned the aliens over to Rodriguez-Melchor to arrange smuggling the aliens further north. Instead, however, Rodriguez-Melchor sold the aliens to Renteria-Rivera for $200 each. Again, family members were called and told they must send additional monies to secure their release. The Renterias carried weapons and threatened to shoot the aliens if anyone tried to escape. Renteria helped pick up the money and then took the aliens to a parking lot in McAllen where they were supposed to sneak into the air dams of tractor-trailers.
Instead of doing so, three of the aliens turned themselves in to Border Patrol. On May 18, 2016, authorities executed three search warrants. At that time, they seized firearms from the Aguilar, Sanchez and Renteria residences. All of the defendants were eventually located and arrested.
All have been in federal custody since their arrests and will remain in custody pending their transfer to the Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Salinas Resident Sentenced to 54 Months in Prison for Identity Theft and Preparing False Tax ReturnsRead the Press Release
SAN JOSE - Elizabeth Calderon was sentenced today to 54 months years in prison for filing false tax returns, aggravated identity theft, and making false statements to federally insured institution, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Beth Labson Freeman, U.S. District Judge, following Calderon’s September 12, 2016, guilty plea in which she admitted to committing the crimes.
According to court filings, Calderon, 41, a resident of Salinas, Calif., admitted she assisted in preparing and filing more than 4,000 federal income tax returns in 2010 through 2013, many of which were materially false because they improperly reported false credits, false expenses or deductions; they reported false filing status; or they contained some combination of these false reports. In addition, Calderon concealed the profit she earned through assisting in the filing of fraudulent tax returns. She concealed this profit by omitting hundreds of thousands of dollars from her own income tax returns, and by purchasing a home in the name of a “straw” buyer. Calderon also prepared and filed fraudulent tax returns using stolen identities, and stole the resulting refunds. This conduct resulted in a loss of more than $1,000,000 to the government.
A federal grand jury indicted Calderon on October 1, 2015, charging her with filing false tax returns and aiding or advising in the filing of false tax returns, in violation of 26 U.S.C. §§ 7206(1) and 7206(2); theft of government funds, in violation of 18 U.S.C. § 641; aggravated identity theft, in violation of 18 U.S.C. § 1028A; making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014; and conspiracy, in violation of 18 U.S.C. § 371. Calderon pleaded guilty on September 12, 2016, to one count each of filing a false tax return, aggravated identity theft, and making a false statement to a federally insured institution.
In addition to the prison term, Judge Freeman also ordered Calderon to pay $1,036,547 in restitution, to forfeit $167,381, and to serve three years of supervised release. Judge Freeman also ordered Calderon, among other things, to refrain from preparing or filing tax returns for anyone else during her period of supervised release. The defendant will begin serving the sentence on October 25, 2017.
Assistant U.S. Attorney Michael G. Pitman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Sacramento Man Convicted of Traveling to the Philippines to Have Sex with Minors, Conspiring to Produce Child Pornography, and Buying ChildrenRead the Press Release
SACRAMENTO, Calif. — A federal jury today found Michael Carey Clemans, 57, of Sacramento, guilty of attempted travel and travel with intent to engage in illicit sexual conduct, conspiracy to travel with intent to engage in illicit sexual conduct, and buying of children, U.S. Attorney Phillip A. Talbert announced. On the first day of trial, Clemans pleaded guilty to three additional counts: conspiracy to produce child pornography, attempted production and production of child pornography, and receipt of child pornography.
According to court documents, beginning in June 2014, Clemans conspired with a woman in the Philippines to produce child pornography. During much of the conspiracy, Clemans was temporarily residing in Bangkok, Thailand, where he worked as an airline pilot. In April 2015, Clemans returned to his Sacramento residence and continued his overseas conspiracy using his online account to chat with the Filipino woman. In these chats, Clemans discussed various strategies to obtain minor girls whom he could rape. Clemans instructed the Filipino woman on how to find vulnerable victims, directing her to look for orphans and victims of typhoons. Clemans paid nearly $6,000 to the woman so she could buy photographic equipment and find discreet locations to conduct sexually explicit photo shoots of the victims, who were as young as seven. He gave her explicit instructions on how to photograph their naked bodies so he could determine which ones he would come to the Philippines to rape. He indicated in the chats with the Filipino woman that he was particularly interested in very young virgins. On multiple occasions, Clemans paid a co-conspirator to obtain temporary custody of the children in the Philippines and produce child pornography for him.
According to evidence introduced at trial, Clemans engaged in another scheme with separate individuals in November 2013, in which he traveled from the United States to Manila for the purpose of engaging in illicit sexual conduct with minors, including an 11-year-old girl, after requesting and receiving pornographic images of minors whom he expected to rape.
This case is the product of an investigation by the Federal Bureau of Investigation and the Philippine National Bureau of Investigation. Assistant U.S. Attorneys André M. Espinosa and Colleen M. Kennedy are prosecuting the case.
Clemans is scheduled to be sentenced on December 12, 2017, by U.S. District Judge John A. Mendez. Clemans faces a mandatory minimum sentence of 30 years in prison for the “buying children” charge, a maximum statutory penalty of life in prison, and a $250,000 fine. The actual sentence, however, will 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Passaic County Man Gets 54 Months in Prison for Bank RobberyRead the Press Release
NEWARK, N.J. – A Little Falls, New Jersey, man was sentenced today to 54 months in prison for robbing a TD Bank in Hawthorne, New Jersey, in February 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
Robert Somers, 45, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of bank robbery. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb.17, 2016, Somers robbed the TD Bank in Hawthorne by handing a teller a note that read: “this is a hold up,” and demanding cash. The teller handed Somers cash. Somers demanded more money, and a second teller handed him additional cash. Somers then fled the bank in a car driven by another individual.
In addition to the prison term, Judge Wigenton sentenced Somers to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Hawthorne Police Department, under the direction of Chief Richard McAuliffe; the Pennsylvania State Police, under the direction of Col. Tyree C. Blocker; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation.
The government is represented by Assistant U.S. Attorneys Jihee G. Suh and Karen D. Stringer of the U.S. Attorney’s Office Criminal Division in Newark.Opening Doors to Possibilities of Federal EmploymentRead the Press Release
PROVIDENCE – The United States Attorney’s Office today announced that the Federal Interagency Reentry Council and the Office of Personnel Management has created three free online virtual training presentations that will offer step-by-step instruction for identifying and applying for Federal employment opportunities via www.USJOBS.GOV. The training, open to anyone interested in seeking Federal employment, may be of particular interest to individuals reentering to the community from prison.
Employment opportunities, housing and medical services are among the most important resources necessary to help ensure that an individual is a productive member of their community. For the past several years, the United States Attorney’s Office, working collaboratively with the federal and state judiciaries, government agencies and community-based organizations, have identified and promoted key resources and services available to individuals returning to the community, after having completed their term of incarceration.
Beginning on Wednesday, September 6, 2017, free online virtual training programs to help identify Federal job opportunities, preparing resumes and job interviewing skills will be available, accessible via any computer.
“Employment, housing and medical care help form the basic foundation for a person becoming a productive member of their community. These free online training programs offer a terrific opportunity for individuals returning to their community from prison to start to build that foundation. Individuals who return from prison and become productive members of their community are a key component to reducing recidivism and making our communities safer,” said Acting United States Attorney Stephen G. Dambruch.
On Thursday, September 7 and on Wednesday, September 27, a 90-minute training session will be provided on searching for Federal jobs on www.USJOBS.GOV, creating your account and profile, managing your account, reviewing Job Opportunity Announcements (JOA), submitting your applications, and following up on your application status.
To register for either class, click one of the links below:
Thursday, September 7, 2017 @ 10:00am –11:30am https://www.eventbrite.com/e/navigating-usajobs-find-apply-sept-7th-tickets-31278538952
Wednesday, September 27, 2017 @ 10:00am –11:30am https://www.eventbrite.com/e/navigating-usajobs-find-apply-sept-27th-tickets-37011121260
On Wednesday, September 13 and again on September 25, training will be provided on a three-part process to assist applicants in writing their Federal resume. Participants will be shown a real JOA and walked through reviewing the JOA to determine qualifications and interest, identifying the important requirements and then tailoring their resumes with that JOA. Lastly, it will provide a quick overview of the resume builder on USAJOBS.GOV.
To register for either class, click one of the links below:
Wednesday, September 13, 2017 @ 10:00am –11:30pm https://writingyourfederalresumesept13morning.eventbrite.com
Monday, September 25, 2017 @ 3:00pm –4:30pm https://writingyourfederalresumesept25.eventbrite.com
On Wednesday, September 6 and on Monday, September 11, 2017, participants will receive training on the interview process. The training explains the types of interviews (structured/unstructured), different delivery methods, types of common questions, responding utilizing the S.T.A.R (Situation/Task, Action, Result) method and how to also prepare for an interview.
To register for either class, click one of the links below:
Wednesday, September 6, 2017 @ 3:00pm – 4:00pm
https://www.eventbrite.com/e/interview-techniques-tickets-31677107080
Monday, September 11, 2017 @ 3:00pm – 4:00pm https://www.eventbrite.com/e/interview-techniques-tickets-36998314956
Novo Nordisk Agrees to Pay $58 Million for Failure to Comply with FDA-Mandated Risk ProgramRead the Press Release
Pharmaceutical Manufacturer Novo Nordisk Inc. will pay $58.65 million to resolve allegations that the company failed to comply with the FDA-mandated Risk Evaluation and Mitigation Strategy (REMS) for its Type II diabetes medication Victoza, the Justice Department announced today. The resolution includes disgorgement of $12.15 million for alleged violations of the Federal Food, Drug, and Cosmetic Act (FDCA) from 2010 to 2012 and a payment of $46.5 million for alleged violations of the False Claims Act (FCA) from 2010 to 2014. Novo Nordisk is a subsidiary of Novo Nordisk U.S. Holdings Inc., which is a subsidiary of Novo Nordisk A/S of Denmark. Novo Nordisk’s U.S. headquarters is in Plainsboro, New Jersey.
“Today’s resolution demonstrates the Department of Justice’s continued commitment to ensuring that drug manufacturers comply with the law,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When a drug manufacturer fails to share accurate risk information with doctors and patients, it deprives physicians of information vital to medical decision-making.”
In a civil complaint filed today in the U.S. District Court for the District of Columbia asserting claims under the FDCA, the government alleged that, at the time of Victoza’s approval in 2010, the Food and Drug Administration (FDA) required a REMS to mitigate the potential risk in humans of a rare form of cancer called Medullary Thyroid Carcinoma (MTC) associated with the drug. The REMS required Novo Nordisk to provide information regarding Victoza’s potential risk of MTC to physicians. A manufacturer that fails to comply with the requirements of the REMS, including requirements to communicate accurate risk information, renders the drug misbranded under the law.
As alleged in the complaint, some Novo Nordisk sales representatives gave information to physicians that created the false or misleading impression that the Victoza REMS-required message was erroneous, irrelevant, or unimportant. The complaint further alleges that Novo Nordisk failed to comply with the REMS by creating the false or misleading impression about the Victoza REMS-required risk message that violated provisions of the FDCA and led some physicians to be unaware of the potential risks when prescribing Victoza.
As alleged in the government’s complaint, after a survey in 2011 showed that half of primary care doctors polled were unaware of the potential risk of MTC associated with the drug, the FDA required a modification to the REMS to increase awareness of the potential risk. Rather than appropriately implementing the modification, the complaint alleges that Novo Nordisk instructed its sales force to provide statements to doctors that obscured the risk information and failed to comply with the REMS modification. Novo Nordisk has agreed to disgorge $12.15 million in profits derived from its unlawful conduct in violation of the FDCA.
“Novo Nordisk’s actions unnecessarily put vulnerable patients at risk,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “We are committed to holding companies accountable for violating the integrity of the FDA’s efforts to ensure that doctors and patients have accurate information that allows them to make appropriate decisions about which drugs to use in their care. Working with the FDA and other law enforcement partners, we have sent a strong signal to the drug industry today.”
“Novo Nordisk Inc. sales representatives misled physicians by failing to accurately disclose a potential life threatening side effect of a prescription drug, and needlessly increased risks to patients being treated with this drug,” said Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office. “The FBI is committed to ensuring that the private industry provides honest and accurate risk information to the public and will continue to work closely with our law enforcement partners to investigate companies who do not comply with FDA-mandated policies.”
“We need to trust that pharmaceutical companies truthfully represent their products’ potential risks,” said Special Agent in Charge Nick DiGiulio for the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “We will continue to work with our partners to ensure federal health care dollars are spent only on drugs that are marketed honestly.”
Novo Nordisk will pay an additional $46.5 million to the federal government and the states to resolve claims under the FCA and state false claims acts. This portion of the settlement resolves allegations that Novo Nordisk caused the submission of false claims from 2010 to 2014 to federal health care programs for Victoza by arming its sales force with messages that could create a false or misleading impression with physicians that the Victoza REMS-required message about the potential risk of MTC associated with Victoza was erroneous, irrelevant, or unimportant and by encouraging the sale to and use of Victoza by adult patients who did not have Type II diabetes. The Food and Drug Administration (FDA) has not approved Victoza as safe and effective for use by adult patients who do not have Type II diabetes.
As a result of today’s FCA settlement, the federal government will receive $43,129,026 and state Medicaid programs will receive $3,320,963. The Medicaid program is funded jointly by the state and federal governments.
The FCA settlement resolves seven lawsuits filed under the whistleblower provision of the federal FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuits are captioned as follows: United States, et al. ex rel. Kennedy, v. Novo A/S, et al., No. 13-cv-01529 (D.D.C.), United States, et al. ex rel. Dastous, et al. v. Novo Nordisk, No. 11-cv-01662 (D.D.C), United States, et al., ex rel. Ferrara and Kelling v Novo Nordisk, Inc., et al., No. 1:11-cv-00074 (D.D.C.), United States, et al., ex rel. Myers v. Novo Nordisk, Inc., No. 11-cv-1596 (D.D.C.), United States, et al. ex rel Stepe v. Novo Nordisk, Inc., No. 13-cv-221 (D.D.C.), United States et al. ex rel Doe, et al. v. Novo Nordisk, Inc., et al., No. 1:17-00791 (D.D.C.), and United States ex rel. Smith, et al. v. Novo Nordisk, Inc., Civ. Action No. 16-1605 (D.D.C.). The amount to be recovered by the private parties has not been determined.
The settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the District of Columbia and the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, with assistance from the FDA’s Office of Chief Counsel. The investigation was conducted by the FDA’s Office of Criminal Investigations, the FBI, HHS-OIG, the Defense Criminal Investigative Service and the Office of Personnel Management, Office of the Inspector General.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information on the Commercial Litigation Branch’s Fraud Section, visit https://www.justice.gov/civil/fraud-section. For more information about the U.S. Attorney’s Office for the District of Columbia, visit https://www.justice.gov/usao-dc.
Novo Nordisk Agrees to Pay $58 Million for Failure to Comply with FDA-Mandated Risk ProgramRead the Press Release
WASHINGTON – Pharmaceutical Manufacturer Novo Nordisk Inc. will pay $58.65 million to resolve allegations that the company failed to comply with the FDA-mandated Risk Evaluation and Mitigation Strategy (REMS) for its Type II diabetes medication Victoza, the Justice Department announced today. The resolution includes disgorgement of $12.15 million for alleged violations of the Federal Food, Drug, and Cosmetic Act (FDCA) from 2010 to 2012 and a payment of $46.5 million for alleged violations of the False Claims Act (FCA) from 2010 to 2014. Novo Nordisk is a subsidiary of Novo Nordisk U.S. Holdings Inc., which is a subsidiary of Novo Nordisk A/S of Denmark. Novo Nordisk’s U.S. headquarters is in Plainsboro, New Jersey.
“Today’s resolution demonstrates the Department of Justice’s continued commitment to ensuring that drug manufacturers comply with the law,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When a drug manufacturer fails to share accurate risk information with doctors and patients, it deprives physicians of information vital to medical decision-making.”
“Novo Nordisk’s actions unnecessarily put vulnerable patients at risk,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “We are committed to holding companies accountable for violating the integrity of the FDA’s efforts to ensure that doctors and patients have accurate information that allows them to make appropriate decisions about which drugs to use in their care. Working with the FDA and other law enforcement partners, we have sent a strong signal to the drug industry today.”
In a civil complaint filed today in the U.S. District Court for the District of Columbia asserting claims under the FDCA, the government alleged that, at the time of Victoza’s approval in 2010, the Food and Drug Administration (FDA) required a REMS to mitigate the potential risk in humans of a rare form of cancer called Medullary Thyroid Carcinoma (MTC) associated with the drug. The REMS required Novo Nordisk to provide information regarding Victoza’s potential risk of MTC to physicians. A manufacturer that fails to comply with the requirements of the REMS, including requirements to communicate accurate risk information, renders the drug misbranded under the law.
As alleged in the complaint, some Novo Nordisk sales representatives gave information to physicians that created the false or misleading impression that the Victoza REMS-required message was erroneous, irrelevant, or unimportant. The complaint further alleges that Novo Nordisk failed to comply with the REMS by creating the false or misleading impression about the Victoza REMS-required risk message that violated provisions of the FDCA and led some physicians to be unaware of the potential risks when prescribing Victoza.
As alleged in the government’s complaint, after a survey in 2011 showed that half of primary care doctors polled were unaware of the potential risk of MTC associated with the drug, the FDA required a modification to the REMS to increase awareness of the potential risk. Rather than appropriately implementing the modification, the complaint alleges that Novo Nordisk instructed its sales force to provide statements to doctors that obscured the risk information and failed to comply with the REMS modification. Novo Nordisk has agreed to disgorge $12.15 million in profits derived from its unlawful conduct in violation of the FDCA.
“Novo Nordisk Inc. sales representatives misled physicians by failing to accurately disclose a potential life threatening side effect of a prescription drug, and needlessly increased risks to patients being treated with this drug,” said Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office. “The FBI is committed to ensuring that the private industry provides honest and accurate risk information to the public and will continue to work closely with our law enforcement partners to investigate companies who do not comply with FDA-mandated policies.”
“We need to trust that pharmaceutical companies truthfully represent their products’ potential risks,” said Special Agent in Charge Nick DiGiulio for the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “We will continue to work with our partners to ensure federal health care dollars are spent only on drugs that are marketed honestly.”
Novo Nordisk will pay an additional $46.5 million to the federal government and the states to resolve claims under the FCA and state false claims acts. This portion of the settlement resolves allegations that Novo Nordisk caused the submission of false claims from 2010 to 2014 to federal health care programs for Victoza by arming its sales force with messages that could create a false or misleading impression with physicians that the Victoza REMS-required message about the potential risk of MTC associated with Victoza was erroneous, irrelevant, or unimportant and by encouraging the sale to and use of Victoza by adult patients who did not have Type II diabetes. The Food and Drug Administration (FDA) has not approved Victoza as safe and effective for use by adult patients who do not have Type II diabetes.
As a result of today’s FCA settlement, the federal government will receive $43,129,026 and state Medicaid programs will receive $3,320,963. The Medicaid program is funded jointly by the state and federal governments.
The FCA settlement resolves seven lawsuits filed under the whistleblower provision of the federal FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuits are captioned as follows: United States, et al. ex rel. Kennedy, v. Novo A/S, et al., No. 13-cv-01529 (D.D.C.), United States, et al. ex rel. Dastous, et al. v. Novo Nordisk, No. 11-cv-01662 (D.D.C), United States, et al., ex rel. Ferrara and Kelling v Novo Nordisk, Inc., et al., No. 1:11-cv-00074 (D.D.C.), United States, et al., ex rel. Myers v. Novo Nordisk, Inc., No. 11-cv-1596 (D.D.C.), United States, et al. ex rel Stepe v. Novo Nordisk, Inc., No. 13-cv-221 (D.D.C.), United States et al. ex rel Doe, et al. v. Novo Nordisk, Inc., et al., No. 1:17-00791 (D.D.C.), and United States ex rel. Smith, et al. v. Novo Nordisk, Inc., Civ. Action No. 16-1605 (D.D.C.). The amount to be recovered by the private parties has not been determined.
The settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the District of Columbia and the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, with assistance from the FDA’s Office of Chief Counsel. The investigation was conducted by the FDA’s Office of Criminal Investigations, the FBI, HHS-OIG, the Defense Criminal Investigative Service and the Office of Personnel Management, Office of the Inspector General.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information on the Commercial Litigation Branch’s Fraud Section, visit https://www.justice.gov/civil/fraud-section. For more information about the U.S. Attorney’s Office for the District of Columbia, visit https://www.justice.gov/usao-dc.
New London Restaurant Owner Sentenced to 5 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL MOTT, 29, of Groton, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, an investigation by the FBI Northern Connecticut Safe Streets Task Force, Norwich Police Department, Waterford Police Department and Groton Town Police revealed that in the summer of 2016, MOTT conspired with others to obtain and distribute cocaine. MOTT regularly took orders for cocaine from his co-conspirators and then drove to his supplier in the Bronx, New York, to obtain the drug. When he returned to Connecticut, MOTT provided the cocaine to his co-conspirators for further distribution. Some of MOTT’s narcotics trafficking activity occurred his restaurant, Caribbean American Kitchen to Go, located on Truman Street in New London.
MOTT was arrested on August 8, 2016, after he was found in possession of approximately 319 grams of cocaine that he obtained in New York and transported to southeastern Connecticut to redistribute. On that date, a search of a hotel room in Groton, where MOTT was residing, revealed an additional quantity of cocaine, as well as items used to process and package the drug.
As part of his sentence, MOTT was ordered to forfeit a 2013 Toyota 4Runner and approximately $3,494 that was seized from him at the time of his arrest.
MOTT has been detained since his arrest. On May 11, 2017, he pleaded guilty to one count of conspiracy to possesses with intent to distribute 500 grams or more of cocaine.
This case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.