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18 October 2017
Chiropractor Pleads Guilty and Sentenced for Making False Claims to MedicareRead the Press Release
James Briggs, 46, of Brentwood, Missouri, pled guilty to an information charging one-count of Making a False Claim against the United States. Sentencing was held immediately after the plea hearing in the United States District Court for the Southern District of Illinois, Don Boyce, United States Attorney for the Southern District of Illinois, announced today. The Court sentenced Briggs to six months of home confinement, five years of probation, a $100 special assessment, a $10,000 fine, and $8,221.30 in restitution.
During his plea hearing, Briggs, a chiropractic physician licensed in Illinois, who operated clinics in Jerseyville and Wood River, admitted that he submitted a false claim for an ankle orthotic to Medicare on October 4, 2013. Briggs agreed to pay mandatory restitution to Medicare for all ankle orthotic claims totaling $5,338.25. Briggs also agreed to pay voluntary restitution to other health care benefit plans including Blue Cross Blue Shield of Illinois, Blue Cross Blue Shield of Missouri, and United Healthcare for all ankle orthotic claims totaling $2,883.05.
The Southern Illinois Health Care Fraud Task Force conducted the investigation with active participation by the U.S. Department of Health and Human Services - Office of Inspector General; the U.S. Postal Inspection Service; the U.S. Office of Personnel Management, Office of the Inspector General; the United States Postal Service Office of Inspector General; the U.S.
Department of Labor – Office of Inspector General – Office of Labor Racketeering and Fraud Investigations; the U.S. Department of Labor Employee Benefits Security Administration; the Federal Bureau of Investigation; the Internal Revenue Service; the U.S. Defense Criminal Investigative Service; the U.S. Railroad Retirement Board, Office of Inspector General; and the National Insurance Crime Bureau. Assistant United States Attorneys Michael J. Quinley and Ranley R. Killian prosecuted the case.
Charleston man sentenced to federal prison for failing to register as a sex offenderRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to two years in federal prison for failing to register as a sex offender, announced United States Attorney Carol Casto. Hershel Vanhoose, 43, was also ordered to serve 10 years of federal supervised release following the completion of his prison sentence.
Vanhoose admitted that from early 2016 until his arrest on February 12, 2017, he failed to register as a sex offender as required by the Sex Offender Registration and Notification Act. On February 12, 2017, Vanhoose was arrested by the Charleston Police Department on an outstanding warrant for failure to update his registration in Ohio. Vanhoose was required to register as a sex offender because of a 2003 Ohio conviction for gross sexual imposition involving a minor.
The Charleston Police Department, the United States Marshals Service, and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.justice.gov/psc.
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Charleston man pleads guilty to illegally possessing sawed-off shotgunRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal gun crime, announced United States Attorney Carol Casto. Joe Orville Fooce, III, 44, entered his guilty plea to possession of a shotgun with a barrel length less than 18 inches and an overall length less than 26 inches not registered to him in the National Firearms Registration and Transfer Record.
In July 2016, South Charleston police officers found Fooce unresponsive at an intersection. After Fooce was transported by medics, officers discovered the sawed-off shotgun in his backpack. Fooce admitted that he knew the firearm had been modified from its original length.
Fooce faces up to 10 years in federal prison when he is sentenced on January 17, 2018.
The South Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. The plea hearing was held before Chief United States District Judge Thomas E. Johnston.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Charleston man pleads guilty for stealing items from the University of Charleston and selling themRead the Press Release
CHARLESTON, W.Va. – A Charleston man caught stealing items from the campus of the University of Charleston and selling them on Amazon pleaded guilty today, announced United States Attorney Carol Casto. Adam St. Clair, 30, entered his guilty plea to mail fraud.
Between the summer of 2014 and approximately the fall of 2015, St. Clair secretly entered locked offices and rooms in buildings on the campus of the University of Charleston without permission or authority. He then stole textbooks and other items from inside those offices. St. Clair maintained an account with Amazon to offer textbooks, electronic equipment, and other goods he had stolen from the University of Charleston campus for sale over the internet. St. Clair had a page on Amazon’s website that he named “Robin Hood Literature.” As a seller of merchandise on Amazon, St. Clair certified that he had the legal right to sell the items advertised on his site. When someone would order a textbook from the site, St. Clair mailed the order to the customer. On one occasion in August of 2015, an employee of the University of Charleston ordered and received a textbook that had been stolen from her. St. Clair received over $6,000 for selling the stolen merchandise, and, as part of his plea agreement, agreed to pay $6,271 in restitution.
St. Clair faces up to 20 years in federal prison and a $250,000 fine when he is sentenced on January 10, 2018.
The Federal Bureau of Investigation, the United States Postal Inspection Service, and the University of Charleston Department of Public Safety conducted the investigation. Assistant United States Attorney R. Gregory McVey is handling the prosecution. United States District Judge Joseph R. Goodwin presided over the plea hearing.
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Carlsbad Felon Pleads Guilty to Federal Kidnapping and Firearms ChargesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Kent Waller of the Carlsbad Police Department (CPD) announced that Richard Fierro, 43, of Carlsbad, N.M., pleaded guilty yesterday afternoon in federal court in Las Cruces, N.M., to kidnapping and firearms charges. Fierro’s plea agreement recommends a sentence of 15 years in prison followed by a term of supervised release to be determined by the court.
Fierro is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Fierro was arrested in Nov. 2016, on a criminal complaint charging him violating the federal firearms laws on Oct. 28, 2016, in Eddy County, N.M. According to the complaint, Fierro forced two children into his vehicle at gunpoint, crashed the vehicle, and attempted to flee the scene before being arrested by CPD officers. Officers found a firearm, ammunition, and marijuana in Fierro’s vehicle during a search incident to arrest. During a subsequent search of Fierro’s residence pursuant to a search warrant, officers seized ammunition, suspected quantities of cocaine and heroin, and drug paraphernalia.
Fierro was indicted on Feb. 15, 2017, and was charged with kidnapping two victims and with being a felon in possession of a firearm and ammunition on Oct. 28, 2016, in Eddy County. According to the indictment, Fierro was prohibited from possessing firearms or ammunition because he previously had been convicted on cocaine trafficking, aggravated battery, possession of a firearm by a felon, and possession of cocaine base with intent to distribute.
During yesterday’s proceedings, Fierro pled guilty to the indictment. In entering the guilty plea, Fierro admitted that on Oct. 28, 2016, he forced the two juvenile victims into his vehicle based on his mistaken belief that he needed to kidnap them to protect his daughter from harm. Fierro further admitted kidnapping the two victims he drove around Carlsbad until he crashed into another vehicle and fled the scene. Fierro acknowledged possessing a firearm and ammunition during the kidnapping although he was prohibited from possessing firearms and ammunition due to his status as a convicted felon. Fierro remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Carlsbad Police Department. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Car Salesman Sentenced on Drug and Money Laundering ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Richard Pham, 42, of Myrtle Beach, South Carolina, was sentenced last week in federal court on charges involving his illegal attempt to possess with intent to distribute two kilograms of cocaine and his participation in a money laundering scheme involving his car business. Court documents reflect that Pham was laundering money represented to be drug proceeds in new car purchases in Mobile, using undercover Homeland Security agents as nominees for the transactions. Pham’s business, Pham & Associates, would provide cash for the new car purchases, which were conducted in Mobile by undercover agents in their undercover names. Pham would then re-title the vehicles to himself, his business, or another entity, all in connection with a plan to sell the vehicles overseas as “used cars.” As a result of the undercover contacts with the federal agents, Pham introduced them to a co-conspirator in the car business, Nghia Le, who was also in the business of growing and distributing marijuana. During the investigation, Pham arranged to purchase two kilograms of cocaine through the undercover agents. He also made arrangements for others to distribute the drugs in South Carolina. Pham pled guilty to both charges in March of 2017.
United States District Court Judge William H. Steele sentenced Pham to 48 months of imprisonment, to be followed by a four-year term of supervised release. The judge ordered that sentences on the two charges be served concurrently. Pham will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, but the judge ordered that Pham pay $200 in special mandatory assessments. The judge also ordered the forfeiture of property used to facilitate the illegal activities for which Pham was convicted.
The case was investigated by the Alabama Law Enforcement Agency, the Department of Homeland Security Investigations, the Mobile County Sheriff’s Office, and the Myrtle Beach Police Department. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Camp Verde Man Sentenced to Prison for Abusive Sexual Contact of a MinorRead the Press Release
PHOENIX – On Monday, Rowan James Kickinghorse Rhodes, 25, of Camp Verde, Ariz., was sentenced by U.S. District Judge David G. Campbell to 13 months’ imprisonment, to be followed by eight years of supervised release with sex offender conditions. Rhodes had previously pleaded guilty to abusive sexual contact with a minor. At the time he committed the offense, Rhodes was on supervised release for a previous conviction for assault with a dangerous weapon. Judge Campbell revoked Rhodes’s supervised release and sentenced him to nine months’ imprisonment, to run concurrently with the newly imposed prison term.
In December 2016, Rhodes, an enrolled member of the Yavapai-Apache Nation, intentionally touched the minor victim, also an enrolled member. The abuse occurred within the boundaries of the Yavapai-Apache Nation Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Assistant U.S. Attorney Christina Covault, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8061-DGC/ CR-13-8055-DGC
RELEASE NUMBER: 2017-101_Rhodes
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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California Man Sentenced to over 11 Years in Prison for Drug Conspiracy and Distribution of MethamphetamineRead the Press Release
RENO, Nev. – A Rosemeade, California man was sentenced Tuesday to 135 months in prison for his involvement in a drug conspiracy to distribute methamphetamine in four states, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Martin Cisneros, aka “Moose,” 46, pleaded guilty to one count of conspiracy to possess with intent to distribute and one count to distribute at least 50 grams of actual methamphetamine. United States District Judge Larry R. Hicks presided over the sentencing hearing.
According to evidence presented in connection to his plea and sentencing, Cisneros supplied at least 12 pounds and up to 42 pounds of methamphetamine as part of a drug conspiracy in central California, Colorado, Hawaii, and Nevada. On May 2, 2014, in Whittier, Calif., Cisneros supplied methamphetamine to his co-conspirators, seven pounds of which went to Reno, Nev., where it was seized in its sale to an undercover agent for $102,000.
The investigation was conducted by the DEA and Assistant U.S. Attorney James E. Keller prosecuted the case.
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Bridgeport Man Pleads Guilty to Possessing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOVANNI REYES, 23, of Bridgeport, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of possession with intent to distribute heroin.
According to court documents and statements made in court, in late 2016, Bridgeport Police made three controlled purchases of heroin from REYES. On December 8, 2016, investigators conducted a court-authorized search of REYES’s Voight Avenue residence and seized more than 120 folds of heroin and a loaded 9mm handgun. The firearm had been reported stolen.
Judge Meyer scheduled sentencing for January 12, 2018, at which time REYES faces a maximum term of imprisonment of 20 years.
REYES has been detained since his federal arrest on January 25, 2017.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. REYES attended a call-in in 2015, and declined Project Longevity services that were offered to him.
This matter has been investigated by the Bridgeport Police Department, Connecticut State Police, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Vanessa Richards.
Arkansas Man Sentenced for Bomb Threats at Cedar County CourthouseRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Arkansas man was sentenced in federal court today for making bomb threats to the Cedar County Courthouse in an effort to cancel his own court hearing that he feared would send him to jail.
Phillip Ray Robison, Jr., 36, of Hartford, Arkansas, was sentenced by U.S. District Judge M. Douglas Harpool to two years and six months in federal prison without parole. The court ordered this federal sentence to be served consecutively to Robison’s sentence in a Cedar County, Mo., case.
On May 25, 2017, Robison pleaded guilty to one count of maliciously conveying false information related to explosive materials. Robison admitted that he made three separate bomb threats on two occasions in January 2016, each of which caused the evacuation of the Cedar County Courthouse in Stockton, Mo.
Robison called the court clerk for the Cedar County Courthouse on Jan. 11, 2016. Robison stated, “You better tell Judge Bickel to clear the courthouse cuz a bomb is going off at 2:30.” Law enforcement cleared everyone and searched the courthouse for the presence of an explosive or bomb. Law enforcement did not locate an explosive device in the courthouse, the building was reopened to the public, and the court docket was resumed.
Robison then called the clerk’s office a second time and said, “you screwed up,” indicating that law enforcement had missed the bomb during their original search. Once again the courthouse was closed and another search was conducted. Law enforcement again failed to find an explosive device during this second search. Due to the late hour, the remainder of the court docket was cancelled and rescheduled for a later date.
On the day of the bomb threat, a court bailiff observed Robison at the courthouse. The bailiff thought that Robison seemed nervous. Robison had been scheduled to appear in Judge Bickel’s court for a probation violation hearing following his prior conviction for distribution of illegal narcotics. Robison was concerned that he was going to be sent to the Missouri Department of Corrections for a 120-day sentence.
On Jan. 25, 2016, Robison called another bomb threat into the Cedar County Courthouse. The court was cleared and searched by law enforcement officers. No explosive device was located. When the court reopened to the public, Robison was first in line. Deputies who were aware of the circumstances of the first bomb threat recognized Robison.
Deputies asked Robison to step out of line to speak with them. Robison agreed to be interviewed and was taken to the sheriff’s office. Robison admitted that he had made both of the January 2016 bomb threats because he wanted his court hearing to be cancelled. Robison believed that if his hearing was held, the court would return him to jail, and he wanted to avoid returning to jail. Robison also told deputies that there were never any bombs.
According to court documents, Robison also had been scheduled to be in court on Dec. 14, 2015, but his hearing was postponed because he had a medical emergency and was transported to the hospital by ambulance. On that day, Robison’s vital signs were normal, but he advised medical personnel that he wanted to be transported to the hospital.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Cedar County, Mo., Sheriff’s Department and the FBI.
Alien Indicted on Illegal Reentry ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging OSCAR YOVANI SEVILLA SANTOS-CRUZ, age 42, of Honduras, with Illegal Reentry of a Deported Alien.
SANTOS-CRUZ, found in Wake County, is alleged to have been previously deported subsequent to a felony conviction (theft by shoplifting). Therefore, if convicted, he would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charge and allegation contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement Removal Operations are investigating the case.
Agents Seize 11 Kilos of Fentanyl, Meth and Heroin and Arrest Drug Distributor as He Returns to U.S.Read the Press Release
Late yesterday law enforcement agents at the Nogales, Arizona border crossing from Mexico to the United States arrested a California man linked to one of the largest fentanyl seizures in the Pacific Northwest, announced U.S. Attorney Annette L. Hayes. DANIEL GUERRERO, 28, of Palmdale, California, was identified as a source for Mexican cartel connected fentanyl, heroin and methamphetamine in late July 2017. GUERRERO entered into a drug deal with a person working with law enforcement that resulted in the seizure in August 2017 of 11 kilos of fentanyl, one kilo of heroin, and 12 pounds of methamphetamine. The drugs were seized from a mini-van parked at an apartment complex in Puyallup, Washington.
“As the Deputy Attorney General announced this week, black market fentanyl is a serious and growing health threat across this country,” said U.S. Attorney Annette L. Hayes. “This seizure of more than 11 kilos of fentanyl took millions of doses of a very dangerous drug off the streets and out of our western Washington communities. I commend law enforcement for their good work and for continuing to prioritize those who bring this poison into our communities.”
“Twenty four pounds of fentanyl hitting the streets of Tacoma and Seattle would have been my worst nightmare,” said DEA Special Agent in Charge Keith Weis. “The size of this shipment is extremely alarming because of the potential number of lethal doses and the deadly consequences it could have for those afflicted by opioid dependency.”
According to records filed in the case, GUERRERO was planning on selling the seized drugs for $350,000. GUERRERO left the California licensed mini-van at a Puyallup apartment and used a rental car to take his family to eastern Washington. Law enforcement seized the drugs and mini-van. GUERRERO quickly left Washington State for California and then traveled on to Mexico.
GUERRERO was charged by criminal complaint and when he attempted to return to the United States at Nogales, he was arrested on the warrant. He made his initial appearance today in Arizona and the criminal complaint was unsealed.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the U.S. Drug Enforcement Administration (DEA) Tacoma Resident Office, along with the Tahoma Narcotics Enforcement Team (TNET), which consists of the Washington Department of Corrections, Auburn Police Department, Bonney Lake Police Department Lakewood Police Department, Tacoma Police Department, Puyallup Police Department, and the Pierce County Sheriff's Office. The case was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA) and National Guard.
The case is being prosecuted by Assistant United States Attorney Marci L. Ellsworth.
A Berkeley County woman admits to her role in a heroin distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Hedgesville, West Virginia woman has admitted to her role in a heroin distribution operation, United States Attorney William J. Powell announced.
Donna Miller, age 28, pled guilty to one count of “Aiding and Abetting with the Intent to Distribute Heroin.” Miller admitted to aiding others in distributing heroin in Berkeley County and Baltimore, Maryland in June 2016.
Miller faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the cases on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, investigated
U.S. Magistrate Judge Robert W. Trumble presided.
17 October 2017
Wexford Man Sentenced to 10 Years in Prison for Conspiring to Traffic a Minor for SexRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania has been sentenced in federal court to 10 years imprisonment, followed by 20 years supervised release, on a charge of conspiracy to commit sex trafficking of children, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Daniel Teed, age 56, of Wexford, PA.
According to information presented to the court, the court was advised that from June 2015 to June 2016, in the Western District of Pennsylvania, Daniel Teed and another person knowingly entered into an agreement to conspire to recruit for sex trafficking a female minor who had not attained the age of 18 years.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation, the City of Pittsburgh Police Department, and the Allegheny District Attorney’s Office for conducting the investigation leading to the successful prosecution of Daniel Teed.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Waterloo Man Pleads Guilty to Unlawful Possession of Firearm and AmmunitionRead the Press Release
Wayne J. Jones, II, 38, from Waterloo, Iowa, has pleaded guilty to one count of unlawful possession of a firearm and ammunition as a convicted felon and unlawful drug user. Jones entered his plea of guilty yesterday in United States District Court in Cedar Rapids.
The one-count indictment filed on August 9, 2017, alleges that, on or about April 12, 2017, Jones possessed a 9mm handgun, several rounds of hollow point ammunition, and several rounds of 20-gauge shotgun ammunition. At the plea hearing yesterday, Jones admitted those items were seized from his apartment and possession pursuant to a federal search warrant. Jones also admitted he had a prior felony conviction and was an unlawful user of marijuana.
Jones faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 3 years of supervised release following any imprisonment.
Jones is currently in the custody of the United States Marshals. A sentencing date has not yet been set.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02058-LRR.
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Virginia Beach Business Owner Pleads Guilty to $3.9 Million FraudRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man pleaded guilty today to money laundering in connection with a fraud scheme that resulted in a loss of at least $3.9 million.
According to the statement of facts filed with the plea agreement, Edward Zinner, 58, operated Ocean Equity, a collection of businesses that engaged in credit card processing and merchant cash advances. In operating Ocean Equity, Zinner and others acting on his behalf, provided false representations to private investors/lenders to obtain over $4.5 million in funds.
In addition to the $4.5 million from private investors/lenders, Zinner obtained six business loans for Ocean Equity in the amount of $3 million. In obtaining these loans, Zinner falsely represented that the loans would not be used for personal, family, or household purposes. However, Zinner spent large amounts of company money on personal expenditures, including, travel, vehicle expenses, gambling, day-trading, mortgage payments, renovations to his personal residence, medical bills, personal credit cards, a rock band, and other expenditures. From 2011 to 2016, approximately $2 million was transferred from the Ocean Equity accounts to Zinner’s personal accounts.
Zinner closed down Ocean Equity in early 2016, and at the time he still owed at least $3.9 million in business loans and loans from private investors/lenders.
Zinner faces a maximum penalty of 10 years in prison when sentenced on Feb. 6, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Senior U.S. District Judge Henry C. Morgan, Jr., accepted the plea. Assistant U.S. Attorney Brian J. Samuels and Special Assistant U.S. Attorney Bethany J. Lipman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-3.
United States Attorney Minkler briefs military community at Camp AtterburyRead the Press Release
Discussed civil laws that protect the rights of military personnel
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler and his staff recently visited with members of the military community at Camp Atterbury to discuss their legal rights while serving our country.
“Military personnel deserve the chance to serve their country without needless distractions and unnecessary stressors,” said Minkler. “While they serve our country, it is our job to protect their rights against unscrupulous housing and financial practices, to protect their right to civilian employment after military service and to fight against those who would violate those rights.”
Minkler discussed three federal civil rights statutes–the Uniformed Services Employment and Reemployment Rights Act, Servicemembers Civil Relief Act and the Uniformed and Overseas Citizens Absentee Voting Act. Each statute protects service members from financial burden, employment discrimination and voting violations while they are in military service.
Minkler was joined at Atterbury by Tanya Kirwan and Andrew Braniff who currently serve as Assistant Directors of the Justice Department’s Servicemembers and Veterans Initiative (SVI). SVI coordinates with DOJ components and federal agencies to build comprehensive legal support and protection network focused on service members, veterans and their families.
According to Assistant United States Attorney Kelly Rota, the Southern District of Indiana’s lead attorney on civil rights issues, over 900,000 Hoosier Guard and Reservists have served since September 11, 2001, and protecting their rights is a top civil rights goal of the US Attorney’s Office.
More information about legal protections available to service members can be found at www.servicemembers.gov.
U.S. Files Lawsuit Against Husband-And-Wife Owners of Suburban Health Care Company for Allegedly Defrauding Medicare out of Millions of DollarsRead the Press Release
CHICAGO — The United States today filed a civil lawsuit against the husband-and-wife owners of a suburban Chicago health care company for allegedly falsely billing Medicare for millions of dollars in unnecessary or nonexistent services.
The complaint alleges that GATEWAY HEALTH SYSTEMS INC. and its owners, AJIBOLA AYENI and JOY H. TURNER-AYENI, violated the federal False Claims Act by seeking and receiving Medicare payments for home health services purportedly rendered to homebound individuals who were not actually in need of such services. The suit also alleges that DOCS AT THE DOOR P.C., a home-visiting physician company owned by Ajibola Ayeni, falsely certified the non-homebound individuals as in need of home-health services, and fraudulently “upcoded” home physician visits to the second highest billing level in order to increase compensation from Medicare.
The government’s complaint was filed today in U.S. District Court in Chicago. The government is intervening in a lawsuit that a private citizen initially filed under seal in 2013 pursuant to the qui tam, or whistleblower, provisions of the False Claims Act.
The government’s complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; John P. Selleck, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General.
Ajibola Ayeni, 58, of Flossmoor, also faces separate criminal charges relating to his conduct while operating Docs at the Door. An eleven-count indictment returned earlier this year alleges that Ajibola Ayeni committed health care fraud from 2011 to 2015. Ayeni has pleaded not guilty to the criminal charges, and a trial date in federal court in Chicago has not yet been set.
According to the government’s suit, Docs at the Door and Gateway each claimed and were paid millions of dollars for services purportedly provided to Medicare beneficiaries. At the direction of the Ayenis, the companies created false documentation to cover up the fact they were claiming services not rendered, as well as services that were not medically necessary because the beneficiaries were not confined to the home, the suit states. The Ayenis’ fraud scheme netted them millions of dollars in federal health care funds to which they were not entitled, the suit states.
In addition to the alleged fraud scheme, the government’s suit contends that the Ayenis attempted to conceal certain assets from the government after learning of the investigation. In the summer of 2016, the Ayenis transferred several of their properties into trusts, the suit states. The transfers involved apartments in the Oakland and Edgewater neighborhoods of Chicago, a residence in Flossmoor, and two properties in Frankfort, according to the suit. The Ayenis “either intentionally transferred the properties to avoid paying a judgment to the United States for their fraud, or at a minimum, knew that they had incurred debts that they would not be able to pay,” the suit states. The suit asks the Court to void the property transfers on the basis of fraud.
The False Claims Act permits private individuals to sue for false claims on behalf of the government and to share in any recovery. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover three times damages plus civil penalties ranging from $5,500 to $11,000 for each false claim submitted by the defendants.
The public is reminded that civil allegations are accusations only, and there has been no determination of liability. The government is represented in the civil case by Assistant U.S. Attorney Sarah J. North.
The public is reminded that the criminal charges against Ajibola Ayeni are not evidence of guilt. He is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. The government is represented in the criminal case by Assistant U.S. Attorney Stephen Chahn Lee.
Two Women, Including Former Associate Dean of Caldwell University, Admit Defrauding Veterans’ GI BillRead the Press Release
NEWARK, N.J. – Two women today admitted their roles in a conspiracy that fraudulently obtained over $24 million from the Post-9/11 GI Bill, a federal education benefits program designed to help veterans who served in the armed forces following the terrorist attacks on Sept. 11, 2001, Acting U.S. Attorney William E. Fitzpatrick announced.
Lisa DiBisceglie, 56, of Lavallette, New Jersey, the former Associate Dean of the Office of External Partnerships at Caldwell University, and Helen Sechrist, 61, of Sandy Level, Virginia, a former employee of the Pennsylvania-based company Ed4Mil LLC, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to separate informations charging them each with one count of conspiracy to commit wire fraud.“DiBisceglie and Sechrist were part of an elaborate bait-and-switch scheme that stole millions of dollars in Post-9/11 GI Bill tuition assistance,” Acting U.S. Attorney Fitzpatrick said. “Instead of receiving a quality education under the Caldwell brand, the veterans that were recruited by Ed4Mil were enrolled in unapproved online courses without their knowledge, all while members of the conspiracy profited from their hard-earned benefits. Prosecuting fraud against the government is always a top concern of our office, especially when the conduct shamelessly exploits our servicemen and women for financial gain.”
“The VA’s Post-9/11 GI Bill is a comprehensive educational program meant to help our nation’s veterans advance their education and careers as they move from military service to civilian life. Defrauding this important VA program costs our nation’s taxpayers and VA and does a tremendous disservice to our veterans,” said Donna L. Neves, Special Agent in Charge, Northeast Field Office, U.S. Department of Veterans, Office of Inspector General. “VA OIG is committed to working closely with our fellow law enforcement partners and thanks the U.S. Attorney’s Office, District of New Jersey for their dedication to this time-intensive, complex case.”
According to documents filed in this case and statements made in court:
The Post-9/11 GI Bill provides educational assistance to eligible veterans of the U.S. Armed Forces by paying for veterans’ tuition, housing costs, and other educational expenses as long as their courses meet certain criteria. Due to the fact that these tuition benefits are paid by the United States directly to the school, all entities involved in developing and administering the courses must be fully disclosed to the United States in order to assess the courses for approval.
From 2009 through August 2013, Ed4Mil founder and president David Alvey, 50, of Harrisburg, Pennsylvania, along with DiBisceglie, Sechrist, and others, conspired to fraudulently obtain millions of dollars in tuition assistance and other education-related benefits under the Post-9/11 GI Bill.
As part of the conspiracy, DiBisceglie helped Ed4Mil get approval from Caldwell’s administration to develop and administer a series of non-credit online courses for veterans in Caldwell’s name. In order for the courses to be eligible for education benefits under the Post-9/11 GI Bill, DiBisceglie, Alvey, and others prepared and submitted an application with the Veterans Administration stating that the courses were developed, taught, and administered by Caldwell faculty and met Caldwell’s stringent educational standards. As a result, the courses were subsequently approved, and Sechrist, Alvey, and others aggressively marketed the courses to veterans who were eligible to receive the benefits.
However, Caldwell did not participate in developing or teaching the online courses. Instead, the veterans were ultimately enrolled in online correspondence courses developed and administered by a sub-contractor of Ed4Mil. Neither Ed4Mil nor its sub-contractor were disclosed to the government, and neither were eligible to receive Post-9/11 GI Bill benefits.
At all times during the conspiracy, DiBisceglie, Sechrist, Alvey, and others concealed the true nature of the courses from the government and the veterans who enrolled in the courses. Thousands of veterans enrolled in the online courses believing they were taking courses from Caldwell. Altogether, the scheme caused the United States to pay over $24 million in tuition benefits under the Post-9/11 GI Bill.
“Scams like this steal money from hardworking taxpayers and legitimate students – and in this case, our veterans – and that is completely unacceptable,” said Debbi Mayer, Assistant Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Northeastern Regional Office. “I’m proud of the work of the OIG special agents and our law enforcement partners for holding Ms. DiBisceglie and Ms. Sechrist accountable for their criminal actions.”
“The guilty pleas by DiBisceglie and Sechrist send a clear and unequivocal message that the FBI and our law enforcement partners will relentlessly pursue fraud against the government. These crimes are especially egregious since they target our veterans and the educational system,” stated Timothy Gallagher, Special Agent in Charge of the Newark FBI Field Office.
The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Jan. 24, 2018.The charge and allegations against Alvey are still pending, and he is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, Northeast field office, under the direction of Special Agent in Charge Neves in Newark; the FBI, under the direction of Special Agent in Charge Gallagher in Newark; and the U.S. Department of Education, Office of Inspector General, under the direction of Assistant Special Agent in Charge Mayer of the Northeastern Region, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys David M. Eskew, David Malagold, and Nicole Mastropieri of the U.S. Attorney’s Office Criminal Division in Newark and Assistant U.S. Attorney Jafer Aftab of the Asset Forfeiture and Money Laundering Unit.
Defense Counsel: DiBisceglie: Gray Broughton Esq., Richmond, Virginia and John Morgenstern, Esq., Philadelphia
Sechrist: Richard Verde, Esq., North Caldwell, New JerseyTwo Men Sentenced to More Than 100 Years in Prison for Masterminding String of Violent Home InvasionsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Matthew Nix, 37, of Rochester, NY, and Earl McCoy, 36, of Brooklyn, NY, who carried out a series of violent home invasions in the Rochester, NY area, were sentenced to 155 years and 135 years in prison respectively by U.S. District Judge Elizabeth A. Wolford. The defendants were convicted following a federal jury trial of conspiracy to commit Hobbs Act robbery; attempted Hobbs Act robbery; Hobbs Act robbery; carrying and brandishing firearms during crime of violence; narcotics conspiracy; carrying firearms during drug trafficking crime; and possessing firearms as convicted felon.
Assistant U.S. Attorneys Robert A. Marangola and Everardo A. Rodriguez, who handled the prosecution of the case, stated that the defendants were the leaders of a group of criminals who engaged in armed home invasions of individuals they believed were drug dealers, as well as a jewelry wholesaler in the Town of Greece. The group included Jecovious Barnes, Jessica Moscicki as well as McCoy’s younger brothers Clarence Lambert and Gary Lambert. All four have been convicted. Nix and McCoy identified and obtained information about victims and locations, brought accomplices to the locations, supplied firearms to accomplices, and distributed property stolen from home invasions. McCoy and other accomplices entered the locations brandishing firearms. They restrained the victims at gunpoint, and in some instances, bound them with plastic zip-ties and pistol-whipped them, demanding drugs and money. The defendants ransacked the residences, flipping over beds, yanking out drawers looking for large quantities of drugs and cash. They stole drugs, cash, cell phones, and even guns from locations. Nix, McCoy and their co-defendants also perpetrated the home invasion at the home of a jewelry wholesaler, stealing $200,000 in luxury watches, diamonds and cash. Specifically:
• On September 15, 2014, at a residence in Rochester, Clarence Lambert, Earl McCoy and Matthew Nix stole property from two victims against their will. Lambert and McCoy broke open a locked screen door to the residence, brandished firearms, and demanded money and drugs from the victims, who they mistakenly believed were drug dealers. The victims were zip-tied at gunpoint, and one was pistol-whipped while the defendants searched the residence. After finding no money or drugs, Lambert and McCoy stole a cell phone and fled the residence and the victims called the police.
• On September 18, 2014, Nix and McCoy brought Clarence Lambert and Jecovious Barnes to another residence in Rochester of what they believed to be a drug dealer. Nix and McCoy expected to find a stash of illegal pills and cash inside the residence. Lambert and Barnes stormed inside the location brandishing handguns and restrained the two victims at gunpoint, demanded money and drugs, and searched the residence. After finding no stash of money or drugs, Lambert and Barnes stole two cell phones and then left with Nix and McCoy, who were waiting outside.
• On the morning of September 23, 2014, Nix and McCoy drove Clarence Lambert, Jecovious Barnes, and Jessica Moscicki another Rochester residence to break in and steal marijuana, heroin, cocaine, and cash. Lambert and Barnes, carrying a firearm, broke into the unoccupied residence and stole cash, marijuana, firearms and other items from inside.
• On October 7, 2014, Nix and McCoy and their accomplices went to the home of a jeweler in the Town of Greece. The jeweler’s business involved buying and selling and luxury watches, all of which were made outside the United States. While Nix and McCoy waited nearby, their accomplices stormed the residence, carrying and brandishing at least one firearm and other weapons. They threatened to kill the jeweler and his wife and demanded money and access to the safe. The victims were pistol-whipped and sustained serious injuries. The men stole luxury watches, diamonds, jewelry and cash worth over $200,000 in total, including numerous men’s and ladies’ Rolex watches. After fleeing the residence, the accomplices met Nix and McCoy and gave them the stolen property. Nix and McCoy paid their accomplices in cash and stolen watches.
“There is a legal maxim which states that, ‘A man’s home is his castle,’” noted Acting U.S. Attorney Kennedy. “With today’s sentencings comes a corollary to that maxim, ‘If you violate the sanctity of the castle, then you will spend a long time in, if not the dungeon, federal prison.’ Thanks to the tremendous cooperative work done by our federal, state, and local partners, the citizens of Rochester and Monroe County, will hopefully rest a little easier knowing that these individuals won’t be around to break into their homes anytime soon.”
Today’s sentencings are the culmination of an investigation on the part of the Greece Police Department, under the direction of Chief Patrick Phelan; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Ashan Benedict; Special Agent-in-Charge, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the New York State Police, under the direction of Major Richard Allen; and the Rochester Police Department under the direction of Chief Michael Ciminelli.
Two Louisiana Residents Plead Guilty to Smuggling Live White-Tailed Deer into MississippiRead the Press Release
Hattiesburg, Miss. – Edward L. Donaldson Jr., 75, and John Jared Oertling, 42, both residents of Pearl River, St. Tammany Parish, Louisiana, pled guilty today to conspiracy to violate the Lacey Act for importing live white-tailed deer into Mississippi, announced U.S. Attorney Mike Hurst and Special Agent in Charge Luis Santiago of the U.S. Fish and Wildlife Service, Office of Law Enforcement.
Mississippi law makes it unlawful to import live white-tailed deer into the State of Mississippi and authorizes the Mississippi Department of Wildlife, Fisheries and Parks Commission with the responsibility of establishing regulations governing the importation of white-tailed deer with the emphasis on preventing the introduction of disease. The Commission established a regulation that mirrors the state statute, prohibiting the importation of live white- tailed deer into the State of Mississippi. The Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase wildlife that were taken, possessed, transported or sold in violation of any law or regulation of any state.
Donaldson and Oertling admitted to United States District Judge Keith Starrett to purchasing and transporting live white-tailed deer into Mississippi in violation of state and federal law from February 2010 through November 2012. Donaldson and Oertling manage a 1,031 acre high fenced enclosure in Forrest County, Mississippi, known as Turkey Trott Ranch .
Donaldson and Oertling admitted that the live white-tailed deer purchased and imported from Pennsylvania to Turkey Trott Ranch in Forrest County, Mississippi, came from a herd of captive white-tailed deer in Pennsylvania that tested positive for Chronic Wasting Disease (CWD).
Chronic Wasting Disease (CWD) is the chief threat to deer and elk populations in North America. The disease, which ultimately ends in death of infected animals, is a transmissible neurological disease that produces small lesions in the brain of deer and elk and is characterized by loss of body condition and behavioral abnormalities.
This is the third such case brought by federal authorities against South Mississippi landowners caught importing white-tailed deer since February of 2014. "The illegal transportation and importation of live animals across state lines can have a potentially devastating impact on the health and safety of our citizens. This case demonstrates our continuing commitment, together with our federal and state law enforcement partners, to hunt down and prosecute those who choose to violate federal law," said U.S. Attorney Hurst.
U.S. Fish and Wildlife Service Special Agent in Charge Luis Santiago stated: "We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens
of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously. The U.S. Fish and Wildlife Service, Office of Law Enforcement considers the potential spread of disease caused by the illegal commercialization of wildlife resources a high priority, and we will continue to work closely with our State partners to assist them in these important investigations."
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, U.S. Department of Agriculture – Office of the Inspector General, and the Mississippi Department of Wildlife, Fisheries, and Parks. It is being prosecuted by Criminal Division Chief Darren J. LaMarca.
Two Charged with Dealing Heroin and Fentanyl on or near a Public Housing PropertyRead the Press Release
PITTSBURGH – Quinshawn Haynie and Dara Haynie have been indicted by a federal grand jury in Pittsburgh for conspiring to distribute and distributing heroin, butyryl fentanyl, and fentanyl in, on, or within 1,000 feet of, a public housing facility, Acting United States Attorney Soo C. Song announced today.
The indictment charges Quinshawn Haynie, age 28, and Dara Haynie, age 26, both of Pittsburgh, Pa., with committing the crimes from February 1, 2017, through March 31, 2017.
The law provides for a maximum total sentence of at least one year and up to 60 years in prison and a fine of up to $3,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania Board of Probation and Parole conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Twelve people indicted installing credit-card skimmers on gas pumps in five states and stealing account information from thousandsRead the Press Release
Twelve people were charged in a 26-count indictment for their roles in a conspiracy to install credit-card skimmers on gas pumps in at least five states, including several locations in Northeast Ohio, and steal credit-card account information from thousands of people.
Named in the indictment are: Ranset Rodriguez, 40, of Miami; Yaniris Alfonso, 31, of Miami; Jose Manuel Iglesias, 51, of West New York, New Jersey.; Juan Carlos Banos, 58, of Parma, Ohio; Carlos Rodriguez Martinez, 42, of Aurora, Colorado; Lester Enrique Castaneda, 39, of Hialeah, Florida; Edelberto Hernandez, 46, of Kiowa, Colorado; Eddy Pimentel-Vila, 45, of Jersey City, New Jersey; Luis Enrique Jimenez Gonzales, 27, of Hialeah, Florida; Yonasky Rosa, 34, of Tampa; Yadian Quesada-Hernandez, 31, of Tampa and Alejandro Moises, 52, of Miami.
The indictment charges that the defendants conspired to install skimmers on point-of-sale terminals inside of gas pumps located in Ohio, Colorado, Maryland, Utah and elsewhere between August 2014 and July 2017.
The defendants then re-encoded the stolen credit/debit card account information, including the actual account holders’ names, onto counterfeit credit cards, which were used to fraudulently purchase gift cards, merchandise, goods and services in Ohio and elsewhere, according to the indictment.
The defendants traveled from Florida to install the skimmers and worked together to distract gas station employees and/or obstruct their view while the skimmers were covertly installed. Skimmers were discovered on gas pumps in Rocky River, Solon, Stow, Hudson, Fairview Park, Medina, Cleveland, Canton, Cuyahoga Falls, Norton, Austintown and elsewhere, according to the indictment.
“This group stole credit card information from thousands of people all over Northeast Ohio just looking to fill up their gas tanks and continue on their way,” U.S. Attorney Justin E. Herdman said. “Instead, these victims had their personal information taken and used to make fraudulent credit cards, which this group in turn used to steal merchandise.”
“This sophisticated, multistate criminal enterprise stole credit card numbers from innocent folks putting gas in their cars,” said FBI Special Agent in Charge Stephen D. Anthony. “These individuals, now in custody, caused financial difficulties for numerous everyday citizens, and for this, they will be held accountable.”
“This case is a complex investigation that involves suspects from multiple states that targeted innocent people from Northern Ohio and around the country stealing their personal and financial information,” said Secret Service Special Agent in Charge Jonathan Schuck. “The success of today’s arrests are due to the great collaboration of multiple law enforcement agencies working together.”
Assistant U.S. Attorneys Megan R. Miller and Robert W. Kern are prosecuting the case following an investigation by the Federal Bureau of Investigation, U.S. Secret Service and the Boulder County (Colorado) Sheriff’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offenses, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tucson Man Sentenced to 41 Months in Prison for Sexual Abuse of a MinorRead the Press Release
TUCSON, Ariz. – Last week, Michael Alvarez Martinez, 48, of Tucson, Ariz., a member of the Pascua Yaqui Tribe, was sentenced by Chief U.S. District Judge Raner C. Collins to 41 months in prison. Martinez had previously pleaded guilty to one count of abusive sexual contact of a minor. The minor victim is also a member of the Pascua Yaqui Tribe. Martinez will be placed on lifetime federal supervision and be required to register as a sex offender for the rest of his life.
The investigation in this case was conducted by both the Pascua Yaqui Police Department and the Federal Bureau of Investigation. The prosecution was handled by Charisse Arce and Rui Wang, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-15-02282-TUC-RCC-BPV
RELEASE NUMBER: 2017-099_ Martinez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Six Indicted for Drug Conspiracy and Firearm ChargesRead the Press Release
WILMINGTON – The United States Attorney for the Eastern District of North Carolina Robert J. Higdon, Jr. announced today that alleged members and associates of a narcotics trafficking organization operating out of Wilmington have been indicted for conspiring to distribute and possessing with the intent to distribute heroin, fentanyl, powder cocaine, and cocaine base (”crack”). Additionally, firearm charges are pending against four of them.
The 39-count Superseding Indictment was returned by a federal grand jury on September 26, 2017.
All of the defendants are from Wilmington and the charges they face are listed below:
- VICTOR EUGENE DORM, aka “VI”; 29
- Conspiracy to distribute and possess with intent to distribute twenty eight (28) grams or more of cocaine base (crack) and a quantity of powder cocaine
- Conspiracy to distribute and possess with intent to distribute five (5) kilograms or more of powder cocaine
- One count of manufacture, distribute, and possess with intent to distribute twenty-eight (28) grams or more of cocaine base (crack)
- Eight counts of distribution and possess with intent to distribute heroin, fentanyl, crack cocaine, and/or powder cocaine
- Two counts of use and carry a firearm during and in relation to the distribution and possession with intent to distribute heroin
- One count of use and carry a firearm during and in relation to the manufacture, possess with intent to distribute, and distribution of crack cocaine and possession of the firearm in furtherance of the same
- Six counts of possession of a firearm by a convicted felon
- RUFUS LAMAR PARKER a/k/a “Rudy Parker”; 27
- Conspiracy to distribute and possess with intent to distribute twenty eight (28) grams or more of cocaine base (crack) and a quantity of powder cocaine
- Six counts of distribution and possession with intent to distribute cocaine
- SYLVESTER LORENZO HOOPER, JR. a/k/a “Pocket Watch”; 26
- Conspiracy to distribute and possess with intent to distribute twenty-eight (28) grams or more of cocaine base (crack) Possession of a firearm by a felon
- Four counts of Distribution and possession with intent to distribute cocaine base (crack)
- JAMES FLOWERS, aka “Jamaal Greene”, “Chapo”, “Slick”; 24
- Conspiracy to distribute and possess with intent to distribute twenty eight (28) grams or more of cocaine base (crack) and a quantity of powder cocaine
- One Count manufacture, distribute, and possess with intent to distribute cocaine base (crack) and aiding and abetting
- One Count use and carry a firearm during and in relation to a drug trafficking crime and possession of firearm in furtherance of such crime and aiding and abetting
- EUGENE TELPHIA GRADY, JR., aka “Taeo”; 31
- Conspiracy to distribute and possess with intent to distribute a quantity of cocaine base (crack)
- Three counts Distribution and possession with intent to distribute cocaine base (crack)
- JOSEPH ANTHONY VAUGHT, aka “Gotti”; 28
- Distribute and possess with intent to distribute a of quantity of heroin
- Conspiracy to distribute and possess with intent to distribute five (5) kilograms or more of powder cocaine
- Use and carry a firearm during and in relation to a drug trafficking crime and possession of firearm in furtherance of such crime
- Attempted interference with commerce by robbery and aiding and abetting
- Possession of a firearm by a convicted felon
All of the defendants charged in the Superseding Indictment are in custody pending trial.
The charges and allegations contained in the Superseding Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Wilmington Police Department, New Hanover County Sheriff’s Office; and the Brunswick County Sheriff’s Office. The federal prosecution is being handled by Assistant United States Attorneys Dennis Duffy and Jacob Pugh.
- VICTOR EUGENE DORM, aka “VI”; 29
Sisseton Man Sentenced to 46 Months for FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sisseton, South Dakota, man who was convicted of several counts of fraud was sentenced on October 16, 2017, by U.S. District Judge Charles B. Kornmann.
Keith Hagen, age 49, was sentenced to 46 months of imprisonment to be followed by 3 years of supervised release. Hagen was ordered to pay a total of $236,000 in restitution. Hagen was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund for each of the eight counts of conviction.
Hagen and his former wife, Amanda Holy Bull, were indicted on February 9, 2016, for Conspiracy to Commit Mail Fraud and Wire Fraud, three counts of Wire Fraud, and four counts of Mail Fraud. A federal jury convicted Hagen on all counts on June 28, 2017. Holy Bull, age 33, also of Sisseton, pled guilty to the conspiracy charge and will be sentenced on October 30, 2017.
Hagen and Holy Bull leased pasture land from the Bureau of Indian Affairs. They used the land to provide custom cattle grazing services to cattle producers.
They entered into contracts with several cattle producers, knowing that they did not lease enough pasture land to graze all of the cattle for which they had contracted. They took up-front payments from several producers, failed to provide the grazing services, and used the money for personal purposes. In all Hagen and Holy Bull defrauded producers out of $236,000.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Hagen was allowed to self-report to the U.S. Marshals Service.
Shih Ya Hung aka Angie Sentenced for Making a False StatementRead the Press Release
SHAWN ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant SHIH YA HUNG aka ANGIE, age 35, from Taiwan, was sentenced today in District Court to a two (2) year term of probation, 50 hours of community service, and must report to a duly authorized immigration official to determine whether deportation proceedings are appropriate.
On August 18, 2014, HUNG, entered a guilty plea to an Information that charged Making a False Statement, in violation of 18 U.S.C. § 1001(a)(1). On June 16, 2013, December 5, 2013, and March 25, 2014, HUNG traveled from Taiwan and entered Guam under two Visa Waiver Programs: the Guam-CNMI Visa Waiver Program and the Visa Waiver Program, posing as a tourist, when in fact HUNG intended to and did find employment at Star Melody/Linda’s Lounge in violation of said Visa Waiver Programs. HUNG worked at Star Melody/Linda’s Lounge as a club hostess soliciting drink sales from customers for financial profit for her and the lounge. When interviewed, HUNG informed law enforcement she never worked for Star Melody/Linda’s Lounge, when in fact she was employed as a hostess for the establishment and she knew when making the statement it was untrue.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations. Assistant U.S. Attorney Stephen F. Leon Guerrero prosecuted the case.
Several men indicted on illegal re-entry chargesRead the Press Release
ELKINS, WEST VIRGINIA – Six men have been indicted by a grand jury today on illegal re-entry charges, United States Attorney William J. Powell announced.
Benjamin Lopez-Ramirez, age 33, of Mexico, was indicted on one count of “Reentry of Removed Alien.” Lopze-Ramirez, having been removed from the United States two prior times, and having been convicted of cocaine distribution in the Northern District of West Virginia, is accused of being in Jefferson County, West Virginia, without consent, in September 2017.
Edi Alvarez-Sanchez, age 30, of Mexico, was indicted on one count of “Reentry of Removed Alien.” Alvarez-Sanchez, having been removed from the United States once before, is accused of being in Berkeley County, West Virginia, without consent, in September 2017.
Jose Fredy Acosta-Cardona, age 36, of Honduras, was indicted on one count of “Reentry of Removed Alien.” Acosta-Cardona, having been removed from the United States five prior times, is accused of being in Berkeley County, West Virginia, without consent, in September 2017.
Apolonio Pacheco-Lopez, age 25, of Guatemala, was indicted on one count of “Reentry of Removed Alien.” Pacheco-Lopez, having been removed from the United States once before, is accused of being in Berkeley County, West Virginia, without consent, in September 2017.
Eostaquio Temoxtle-Panzo, age 29, of Mexico, was indicted on one count of “Reentry of Removed Alien.” Temoxtle-Panzo, having been removed from the United States once before, is accused of being in Berkeley County, West Virginia, without consent, in August 2017.
Oscar Ordaz-Rodriguez, age 38, of Mexico, was indicted on one count of “Reentry of Removed Alien.” Ordaz-Rodriguez, having been removed from the United States three prior times, is accused of being in Berkeley County, West Virginia, without consent, in September 2017.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the Lopez-Ramirez, Alvarez-Sanchez, and Acosta-Cardona cases on behalf of the government.
Assistant U.S. Attorney Paul T. Camilletti is prosecuting the Pancheco-Lopez, Temoxtle-Panzo, and Ordaz-Rodriguez cases on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Sarasota Investment Adviser Sentenced to Five Years in Prison for Defrauding InvestorsRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Steven Zoernack (55, Sarasota) to 5 years in federal prison for conspiring to commit wire fraud. He was also ordered to forfeit $2,890,518.54 in ill-gotten gains and to make restitution to victims in the amount of $3,435,194.56. Zoernack pleaded guilty on March 31, 2017.
According to court documents, Zoernack owned and operated an investment advisory firm, EquityStar Capital Management LLC (“EquityStar”), through which he formed and managed multiple hedge funds, including the Petroleum Black Energy Fund, the Global Partners Fund, and the Momentum Growth Fund. Beginning in August 2012, Zoernack and his co-conspirators marketed these funds to accredited investors across the United States and Canada from offices in Sarasota and New Port Beach, California. They ultimately raised more than $6 million through their solicitations.
In marketing the funds, Zoernack failed to disclose numerous material facts about his background and the funds he was managing. Specifically, he failed to disclose that he had been convicted on federal wire fraud charges in 2007; had previously filed for bankruptcy; had a history of tax liens and adverse money judgments; and still owed hundreds of thousands of dollars in restitution to past fraud victims. In fact, Zoernack actively sought to conceal his past by misappropriating fund assets to pay an online reputation manager to manipulate Internet search engine results about him to prevent potential investors from learning of his past. He also routinely lied about his educational background and expertise as an investment manager, and his experience in the financial industry. Similarly, Zoernack lied about the educational backgrounds and professional experience of his employees, as well as the size of the firm’s staff. He repeatedly impersonated former EquityStar employees and corresponded with investors online using fictitious names and phony email accounts. In addition, he lied to potential investors about his portfolio’s ratings, profits, market returns, and losses.
After obtaining investor contributions, Zoernack began misappropriating fund assets for his personal use. Specifically, he made monthly withdrawals of unauthorized “salaries” and “bonuses” in amounts ranging from $12,000 to $25,000 and used these and other fund assets to pay for personal and non-business related expenses, none of which were disclosed to investors. In total, through a combination of trading losses and the misappropriation of fund assets, Zoernack lost millions of dollars of investors’ money.
This case was investigated by the Federal Bureau of Investigation, alongside a parallel civil enforcement action brought by the Securities and Exchange Commission. It was prosecuted by Assistant United States Attorney Eric K. Gerard.
Real Estate Investor Pleads Guilty to Bid Rigging in Northern California Public Foreclosure AuctionsRead the Press Release
A real estate investor pleaded guilty for his role in conspiracies to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Raymond A. Grinsell pleaded guilty to two counts of bid rigging in the U.S. District Court for the Northern District of California in San Francisco. Grinsell was charged in an indictment returned by a federal grand jury on October 22, 2014.
According to court documents, Grinsell participated in conspiracies to rig bids by agreeing to refrain from bidding against other co-conspirators at public real estate foreclosure auctions in San Mateo and San Francisco counties. The conspiracies began as early as August 2008 and continued until January 2011.
The primary purpose of the conspiracies was to suppress competition in order to obtain selected properties offered at San Mateo County and San Francisco County public foreclosure auctions at noncompetitive prices.
Today’s guilty plea is the result of the Department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. To date, 64 individuals have pleaded guilty.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Peter Ogo, Jr. Sentenced to Prison for Bank FraudRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant PETER D.T. OGO, JR., age 30, was sentenced in District Court today to a term of imprisonment of 41 months for Conspiracy to Commit Bank Fraud. The Court also ordered five years of supervised release, restitution in the amount of $5,225.00, and a mandatory $100 assessment fee.
On February 15, 2017, defendant and three other co-defendants, were charged in an Indictment with Conspiracy to Commit Bank Fraud and Bank Fraud. On April 26, 2017, defendant OGO entered a guilty plea to Conspiracy to Commit Bank Fraud, in violation of 18 U.S.C. § 1349. The defendant participated in an ATM debit fraud scam involving Bank of Guam (BOG) funds and fraudulent Wells Fargo Bank checks. As part of the conspiracy, the defendant deposited fraudulent Wells Fargo Bank checks into third party BOG accounts via ATM transactions, and then withdrew funds based upon the deposited checks. The defendant recruited relatives to access their BOG bank accounts. He used their debit cards and PINs to obtain cash from ATMs. For the entire period of the conspiracy, the defendant and his co-conspirators deposited over 100 fraudulent Wells Fargo bank checks in order to obtain over $70,000 of BOG funds. The fraudulent Wells Fargo Bank checks belonged to defendant’s cousin Katrina Tedtaotao, who is awaiting sentencing.
Special Agents from the FBI conducted the investigation. The case was prosecuted by Marivic P. David, Assistant United States Attorney for the District of Guam.
Pasco Man Sentenced to 204 Months in Federal Prison Methamphetamine, Heroin and Cocaine ConvictionRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Jorge Ayala Magana, age 39, of Pasco, Washington, was sentenced to a 204-month term of imprisonment for possessing with intent to distribute methamphetamine, heroin and cocaine, and for violating court supervision. Chief United States District Judge Thomas O. Rice sentenced Magana to a 180-month term of imprisonment to be followed by a six-year term of court supervision following release from Federal prison. After finding that Magana had violated court supervision stemming from a previous drug conviction, Chief Judge Rice also imposed an additional 60-month term of imprisonment, with 24-months to be served consecutive to the 180-months.
According to information disclosed during the court proceedings, on December 3, 2016, a Spokane Police Department (SPD) Patrol Anti-Crime Team (PACT) Officer initiated a traffic stop in Spokane, Washington, after observing Magana driving with a suspended license. The PACT officer observed Magana making a suspicious movement toward a passenger in the front seat as he approached the vehicle. The officer observed drug paraphernalia in the vehicle and detained Magana. During the stop, SPD officers seized methamphetamine, heroin, and cocaine. They also seized approximately $3,186 in U.S. currency and a methamphetamine pipe from Magana. At the time, Magana was under court supervision for a drug conviction in Montana. During a subsequent search of Magana’s storage unit, officers seized an additional quantity of methamphetamine, heroin, and cocaine, a scale, and two 4k Smart televisions. Overall, officers seized 342 grams of pure methamphetamine, 184 grams of heroin, and 165 grams of cocaine from Magana’s vehicle and storage unit.
Acting United States Attorney Harrington said, “The sentence imposed in this case reflects the seriousness of drug trafficking crimes. This case is yet another example of the commitment of the United States Attorney’s Office to prosecute aggressively drug cases in the Eastern District of Washington. I commend the law enforcement officers with the Spokane Police Department’s Patrol Anti-Crime Team, the Spokane Safe Streets Task Force, the DEA and the Washington State Patrol, for their tireless efforts in thoroughly investigating this case.”
This investigation was by the DEA, the Spokane Safe Streets Task Force, the Spokane Police Department Patrol Anti-Crime Team (PACT), and Washington State Patrol (WSP). The case was prosecuted by George J.C. Jacobs, III, and Patrick J. Cashman, Assistant United States Attorneys for the Eastern District of Washington.
Painesville man indicted for having 109 grams of fentanylRead the Press Release
A Painesville man was indicted for having more than 100 grams of fentanyl, said U.S. Attorney Justin E. Herdman.
Maxwell T. Klyn, 25, was indicted on one count of possession with intent to distribute fentanyl. Klyn had approximately 109 grams of fentanyl on April 14, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Margaret Sweeney and Ranya Elzein following an investigation by the U.S. Postal Inspection Service.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner and Employee of Metal Plating Government Contractor Plead Guilty to Hazardous Waste CrimesRead the Press Release
Phillip Michael Huddleston, 61, pleaded guilty today to violating the federal Resource Conservation and Recovery Act (“RCRA”) by illegally storing hazardous waste without a permit at Protech Metal Finishing, LLC, a metal plating facility he owned and operated in Vonore, Tennessee.
John Thomas Hatfield, 43, Protech’s production manager, pleaded guilty on October 2, 2017, to being an accessory after-the-fact to Protech’s illegal storage of hazardous waste. In order to hinder an investigation of Protech’s compliance with the RCRA, Hatfield represented that containers of hazardous waste were accurately labeled when he knew that they were not.
“These guilty pleas are the result of notable efforts undertaken by multiple law enforcement agencies to enforce provisions in government contracts and the RCRA that protect human health and the environment,” said Acting Assistant Attorney General Jeffrey H. Wood. “In this case, what was at stake was the health and safety of Protech employees and the community of Vonore, Tennessee.”
When Congress passed the RCRA, it determined that the disposal of, and inadequate controls over hazardous waste “will result in substantial risks to human health and the environment.” To that end, the RCRA imposes “cradle-to-grave” tracking, handling, and reporting controls to ensure that companies like Protech properly manage the generation, storage, transport, and disposal of hazardous wastes. The maximum penalty for each felony RCRA count is five years in prison and a fine of $250,000. The maximum penalty for this accessory-after-the-fact count is one year in prison and a fine of $25,000.
Defendants Hatfield and Huddleston are scheduled to be sentenced by Senior District Court Judge Leon Jordan on January 10 and January 8, 2018, respectively.
This case is being prosecuted by Assistant United States Attorney Matt Morris of the U.S. Attorney’s Office for the Eastern District of Tennessee, and Trial Attorneys Cassandra Barnum and Senior Trial Attorney Todd W. Gleason of the Environment and Natural Resources Division. The prosecution is the result of an investigation by the IRS, EPA-CID, TVA-OIG, Department of Defense, and Department of Energy.
Orange County CPA Pleads Guilty to Obstructing an IRS Investigation into Tax Returns Seeking Millions of Dollars in Tax RefundsRead the Press Release
SANTA ANA, California – A certified public accountant who worked at a tax preparation firm in Irvine has pleaded guilty to federal charges resulting from her obstruction of a federal investigation into millions of dollars in tax refunds claimed in tax returns that were prepared by her firm.
Antonia Rios, 52, of Irvine, who was a partner at Quick Rios & Associates, pleaded guilty late yesterday afternoon to one count of attempting to interfere with the administration of the internal revenue laws.
During yesterday’s hearing, Rios admitted that Quick Rios had prepared federal tax returns for approximately 200 clients – including a number of Fortune 500 companies – that cumulatively sought more than $100 million in refunds based on the Telephone Excise Tax Refund – the so-called TETR – which was available to compensate individuals and businesses that paid excess telephone excise taxes from 2003 to 2006.
Rios admitted that she submitted to the Internal Revenue Service altered documents related to TETR to support refunds claimed in the tax returns Quick Rios had prepared for its clients. Rios additionally admitted that, during an April 2011 meeting with IRS auditors, she had presented to IRS personnel a fake email she had fabricated in an attempt to show “proof” that Quick Rios was properly calculating the TETR credit. When the IRS questioned Rios and her business partner about the fake email, Rios and her business partner falsely blamed others at Quick Rios for fabricating the email, instead of admitting that she had done it.
Rios admitted that under Quick Rios’ fee arrangements with its clients, she and her partner stood to make millions of dollars in fees if the IRS ultimately paid out the TETR-based tax refunds based on returns the firm prepared.
By pleading guilty, Rios admitted that she attempted to obstruct the IRS investigation into the tax returns prepared by Quick Rios. Rios was not charged with filing false tax returns, although the IRS did negotiate settlements with many of the firm’s clients.
As a result of her guilty plea, Rios faces a statutory maximum sentence of three years in federal prison when she is sentenced by United States District Judge Andrew J. Guilford on June 25, 2018.
The case was investigated by IRS Criminal Investigation.
This matter is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
Omak, Washington Nurse Sentenced to Federal Prison for Adulterating and Misbranding Pain MedicationsRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Cory J. Riehart, age 32, of Omak, Washington, was sentenced in United States District Court after pleading guilty in July, 2017 to Adulterating a Drug and to Misbranding a Drug with the Intent to Defraud or Mislead. United States District Judge Stanley A. Bastion sentenced Riehart to a 27-month term of imprisonment and a one-year term of court supervision following release from Federal prison. The Judge also ordered Riehart to pay $1,230 in restitution. Riehart has been in custody since July 21, 2017.
According to information disclosed during court proceedings, while working as a registered nurse at a local hospital, Riehart adulterated and misbranded three vials and seventy-nine carpujects of pain medication that were intended for patients. A carpuject is a syringe device for the administration of injectable fluid medications. Riehart removed morphine and hydromorphone directly from the carpujects and vials, refilled the carpujects and vials with saline solution, and then returned the refilled, misbranded and adulterated medications to the hospital’s locked narcotics drawers outside the nurse’s station and emergency room. Hospital staff discovered the adulterated and misbranded medications during routine narcotics counts, removed the drugs to the Pharmacy and notified the Republic, Washington Police Department. Subsequent chemical analysis by the DEA confirmed that the pain medications had been adulterated and misbranded because they contained less than one-tenth of one percent of the volume of controlled substance specified on the drug manufacturer label for each medication.
Acting United States Attorney Harrington said, "Adulterating pain medications intended for patients seeking treatment in a hospital is not only a breach of the public’s trust in the medical profession, but is a callous disregard of basic human compassion for people suffering pain. The United States Attorney’s Office in this District has and will prosecute aggressively any such criminal conduct.”
“Putting patients and their treatment at risk is never acceptable,” said Lisa Malinowski, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigations, Los Angeles Field Office. “The FDA will continue to pursue all individuals, including health care workers, who adulterate and misbrand drugs.”
This investigation was conducted by the U.S. Food and Drug Administration, Office of Criminal Investigations, DEA, and the Republic, Washington Police Department. The case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington
Nine Trey Gangster Sentenced to 45 Years in PrisonRead the Press Release
NORFOLK, Va. – A member of the Nine Trey Gangsters was sentenced today to 45 years in prison for his role in two gang-related murders.
Alvaughn Davis, 29, of Suffolk, pleaded guilty on May 23 to RICO conspiracy, use of a firearm resulting in death, and to being an accessory after the fact to a murder in aid of racketeering.
According to court documents, Davis, along with Anthony Foye, 25, of Suffolk, and other charged co-conspirators, were members of the Nine Trey Gangsters, a street gang with members in states across the East Coast that is affiliated of the United Blood Nation. Foye previously pleaded guilty to murdering Al-Tariq Tynes, Vandelet Mercer, Linda Lassiter, and Wayne Davis in furtherance of his membership in the gang. Davis, in furtherance of his membership in the gang, helped conceal Tynes’ body and was the driver during the shooting of Mercer.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Larry D. Boone, Chief of Norfolk Police, Tonya D. Chapman, Chief of Portsmouth Police, James A. Cervera, Chief of Virginia Beach Police, Col. K.L. Wright, Chief of Chesapeake Police, and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse, Special Assistant U.S. Attorney John F. Butler, and Trial Attorney Teresa A. Wallbaum of the Justice Department’s Organized Crime and Gang Section, are prosecuting the case.
The case was investigated by the FBI's Norfolk Field Office as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Billy Club. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-130.
New York Man Sentenced to 43 Months in Prison for Robbing Bergen County, New Jersey, BankRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 43 months in prison for robbing a bank in Fort Lee, New Jersey, in January 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
Isaac Nesbit, 30, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of bank robbery. Judge Salas imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Nesbit admitted that on Jan. 20, 2017, he robbed a Bank of New Jersey branch in Fort Lee. Nesbit admitted that he handed a teller a hand-written note demanding cash and threatening to shoot everyone in the bank if the teller did not comply.
In addition to the prison term, Judge Salas sentenced Nesbit to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
New York Man Sentenced for Smuggling Contraband CigarettesRead the Press Release
RICHMOND, Va. – A New York man was sentenced today to 18 months in prison for his role in a conspiracy to traffic contraband cigarettes that resulted in a tax loss of more than $1.6 million.
Ki Hin Lee, 31, of Flushing, pleaded guilty on June 20, 2017. According to court documents, Lee participated in a cigarette trafficking conspiracy that spanned from January 2015 to November 2016. Lee and another New York City resident traveled from New York City to Fredericksburg and Springfield in order to purchase bulk quantities of Virginia tax-stamped cigarettes from a Fredericksburg gas station owner. After completing their purchases, the pair transported the cigarettes back north to Staten Island, where they were sold on the black market. Lee eventually took over the role of courier and facilitator, and thereafter made at least 46 solo trips – renting large SUVs in order to maximize his carrying capacity – from Staten Island to Virginia. During these trips, Lee handed over tens in thousands in cash to purchase quantities of cigarettes ranging between 600 and 900 cartons. Lee then smuggled the cigarettes back to the Staten Island home of his New York City co-conspirator. All told, Lee personally smuggled at least 276,000 packs of cigarettes from Virginia to New York City for illegal re-sale, resulting in a tax loss of more than $1.6 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Keith Krolczk, Chief of Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Investigative Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Thomas A. Garnett prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-73.
Multiple federal inmates plead guilty to weapons chargesRead the Press Release
BLUEFIELD, W.Va. – Five federal inmates pleaded guilty today to possessing weapons at the Federal Correctional Institution at McDowell, announced United States Attorney Carol Casto. As part of separate prosecutions, Scott Finnell, 29, Misael Santana-Rivera, 32, Antonio R. Azpeitia, 40, Ernest Shields, 42, and Diego Ninos, 30, entered their guilty pleas to possession of a weapon by an inmate of the institution.
Each inmate admitted to possessing a handcrafted weapon, commonly referred to as a “shank.” This year, from March until June, the weapons were either observed or discovered through searches by staff members of the Federal Correctional Institution at McDowell. The objects were made out of a variety of materials, including plastic, metal, and wood, and were sharpened to a point at one end. The inmates all admitted that the shanks were designed and intended to be used as weapons.
Each inmate faces up to five years in federal prison in addition to the sentences they are currently serving. Santana-Rivera, Shields, and Azpeitia are scheduled to be sentenced on January 23, 2018. Finnell and Ninos are scheduled for sentencing on January 24, 2018.
These cases were investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File is handling these prosecutions. Senior United States District Judge David A. Faber presided over the plea hearings.
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Mission Woman Sentenced for Possession of a Stolen FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Possession of a Stolen Firearm was sentenced on October 16, 2017, by U.S. District Judge Roberto A. Lange.
Stephanie Bear Heels, age 31, was sentenced to 12 months and 1 day in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bear Heels was indicted by a federal grand jury on March 15, 2017. She pled guilty on June 27, 2017.
The conviction stems from an incident between November 11-13, 2016, when 14 firearms were stolen from a home in Mission.
Bear Heels obtained one of the stolen firearms following the burglary of the home. She and co-defendant Angelito Moran knew that co-defendants Keith and Kevin Bordeaux were looking for guns to buy/trade for narcotics. Co-defendant Keith Bordeaux purchased a rifle from Moran and Bear Heels for $50 worth of methamphetamine.
Bear Heels knew or had reason to know that firearm was stolen and the possession of the firearm by any person other than the owner would be unlawful. Further, Bear Heels sold the firearm for illegal narcotics.
Co-defendant Angelito Moran pleaded guilty and was sentenced on September 5, 2017, to 18 months of custody.
Co-defendant Keith Bordeaux has filed a plea agreement. Co-defendant Kevin Bordeaux is awaiting trial, which is currently set for November 14, 2017.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Bear Heels was immediately turned over to the custody of the U.S. Marshals Service.
Memphis Man Found Guilty on Five-Count IndictmentRead the Press Release
Memphis, TN – A federal jury has found a Memphis man guilty of possession of cocaine with intent to distribute, using and carrying a firearm during a drug trafficking offense, two counts of being a convicted felon in possession of a firearm, and possessing a firearm with an obliterated serial number. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the verdict today.
According to documents and information presented in court, on June 16, 2015, detectives for the Memphis Police Department Organized Crime Unit (OCU) executed an undercover operation at 5280 Summer Avenue. An undercover officer had been in contact with defendant Nickey Ardd, 41, for over 6 months posing as a drug dealer. One of the undercover officer’s confidential informants explained that Ardd was dissatisfied with his current cocaine supplier and searching for a new one. After several failed attempts to set up buys, on June 12, 2015, Ardd contacted the undercover officer and ordered 9 ounces of powder cocaine at $1,100 an ounce. The buy was set for June 16, 2015.
During the "takedown" operation, Ardd was arrested. A fully loaded Glock 9mm pistol was found on Ardd’s person. A total of $9,811 was recovered, which represented the money brought to the buy by Ardd. The operation was captured on surveillance video.
Later that day, a search warrant was executed at Ardd’s home. OCU detectives recovered additional cocaine packaged for sale and a loaded Luger 9mm caliber pistol. The serial number on the Luger had been obliterated.
Sentencing is scheduled for February 8, 2018, before U.S. Senior District Court Judge Samuel H. Mays. Ardd faces a mandatory minimum sentence of five years and up to life imprisonment.
The case was investigated by Project Safe Neighborhoods, the Memphis Police Department and the U.S. Attorney’s Office, who all work jointly to address gun-related crimes through aggressive investigation and prosecution.
Assistant U.S. Attorneys Karen Hartridge and Mabayonle Osundare prosecuted this case on the government’s behalf.
MedFast Pharmacist Sentenced to Probation, Community Service for Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Beaver County, Pennsylvania, has been sentenced in federal court to two years probation and 150 hours of community service on her conviction of conspiracy, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Correna Pfeiffer, 39, of Monaca, PA.
According to the information presented to the court, Pfeiffer is a pharmacist who was the manager of the MedFast Institutional Pharmacy located at 2003 Sheffield Road, Aliquippa, in Beaver County. As manager she prepared and oversaw employees who prepared prescription medications for residents of nursing homes. MedFast had its delivery drivers pick up unused medications from the nursing homes and return them to the institutional pharmacy where employees unpackaged them and returned them to stock to be re-used in other prescriptions in violation of state law and federal law. As a result, drugs from different manufacturers with different lot numbers and different expiration dates were commingled in stock bottles. When it was necessary for employees to place lot numbers and expiration dates on prescriptions, the employees were instructed to use inaccurate and false information rendering the drugs “misbranded.” In addition, Medicare, Medicaid and other insurers were not reimbursed for the unused drugs, but they were billed for illegal, “misbranded” drugs.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the U.S. Food and Drug Administration-OCI, the Drug Enforcement Administration-Diversion Investigators, the Health and Human Service-OIG and the Office of Personnel Management-OIG for the investigation leading to the successful prosecution of Correna Pfeiffer.
Maryland Man Sentenced to 40 Years in Prison on Murder and Other Charges in 2015 ShootingRead the Press Release
WASHINGTON – Mark Beasley, 45, of Laurel, Md., was sentenced today to 40 years in prison for a shooting that killed one man and wounded another, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Beasley was found guilty by a jury in July 2017 of first-degree murder while armed, assault with intent to kill while armed, and related weapons offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable José M. López. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Saturday, April 25, 2015, Darryn Conte, his older brother, and a close family friend went to the Takoma Station Tavern in Northwest Washington to support their friend, a percussionist in a band. At the end of the night, at about 2 a.m. on April 26, 2015, the close family friend was driving Mr. Conte to his truck that was parked nearby when they were approached by Beasley. An argument ensued. Mr. Conte and his close friend eventually drove into the next block, the 400 block of Butternut Street NW, where Mr. Conte’s vehicle was parked, to wait for Mr. Conte’s brother and the percussionist.
As they waited, Beasley approached their vehicle. While Mr. Conte’s brother and the percussionist looked on, Beasley opened fire on the vehicle. Mr. Conte, 39, was shot multiple times and died. His friend was shot once and survived his injury. Beasley was arrested on April 30, 2015 and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Chrisellen Kolb, Deputy Chief of the Appellate Division; Assistant U.S. Attorney Nicholas Coleman; Supervisory Victim/Witness Services Coordinator David Foster; Victim/Witness Advocates Jennifer Clark and Diana Lim; Program Specialist Benjamin Kagan-Guthrie; Investigative Analyst Zachary McMenamin; Supervisory Litigation Technology Specialist Joshua Ellen; Litigation Technology Specialists Anisha Bhatia and Kimberly Smith; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialist Alesha Matthews-Yette, and Interns Sanjana Biswas, Alexandra Maher, and Simone Umwalla.
Finally, they commended the work of Assistant U.S. Attorneys Gary Wheeler and Michelle D. Jackson, who investigated and prosecuted the case.
Man from Grants Sentenced to Nine Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Moises Eufelio Martinez, Jr., 43, of Grants, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 108 months in prison for his conviction on a methamphetamine trafficking charge. Martinez will be on supervised release for four years after completing his prison sentence.
Martinez was arrested in Jan. 2017, on a criminal complaint charging him with possessing methamphetamine with intent to distribute and possessing firearms in furtherance of a drug trafficking crime. The complaint alleged that Martinez committed the crimes on Dec. 19, 2016, in Lea County, N.M. According to the complaint, officers of the Lea County Drug Task Force seized approximately 901.5 gross grams of methamphetamine, drug paraphernalia, firearms and ammunition from Martinez and his hotel room during the execution while executing search warrants.
On June 22, 2017, Martinez pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute. In entering the guilty plea, Martinez admitted that on Dec. 19, 2016, he possessed two bags containing methamphetamine and a loaded handgun when he was searched by Lea County Drug Task Force officers. Martinez acknowledged that he intended to distribute the methamphetamine to others and that he was carrying the firearm to protect himself, the methamphetamine, and any money he received from selling the methamphetamine.
This case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the New Mexico HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Lexington Man Convicted of Charges Including Threatening to Murder A Federal Prosecutor and Solicitation to Murder an Officer of the United StatesRead the Press Release
Jury deliberated 45 minutes before returning guilty verdict
LEXINGTON, Ky. – United States Attorney Russell M. Coleman today announced the guilty verdict, in United States District Court, of a Mexican National, on charges of threatening to murder an Assistant United States Attorney and solicitation to murder an officer of the United States.
“The rule of law requires public servants of character to enforce that law,” stated United States Attorney Russell Coleman. “I am grateful to the men and women of the jury in Lexington, who through today’s verdict reinforced that any serious threat to the safety and security of our prosecutors puts our entire community at risk and will not be permitted in our commonwealth .”
Edgar Villa-Castaneda, 43, remains in federal custody awaiting sentencing on January 26, 2017, at 1:30pm, before United States District Judge Danny C. Reeves. Villa-Castaneda could be sentenced to not more than a combined 30 years’ imprisonment, followed by a three year period of supervised release.
Villa-Castaneda was found guilty, following a two-day trial, of both charges in a two-count indictment returned on February 2, 2017. According to information presented at trial, on about August 5, 2015, and September 22, 2015, in Woodford County, Kentucky, Villa-Castaneda threatened to murder Assistant United States Attorney Rob Duncan, on account of the performance of Duncan’s official duties, and solicited a fellow inmate at the Woodford County Detention Center (WCDC) to murder Assistant United States Attorney Duncan.
Specifically, Villa-Castaneda, was incarcerated at the WCDC in February 2015, pending federal drug charges filed by Assistant United States Attorney (AUSA) Rob Duncan. On September 22, another inmate at the WCDC, contacted his lawyer and reported that Villa-Castaneda, using the nickname
“Flaco” was attempting to hire someone to kill AUSA Duncan. On September 24, 2015, the inmate’s lawyer notified FBI Special Agent John Whitehead that Villa-Castaneda was attempting to hire
someone to kill AUSA Duncan. During an interview with the FBI, the inmate explained that he and Villa-Castaneda became cellmates at the WCDC in September 2015, and that within hours Villa-Castaneda
began talking to him about his hatred for AUSA Duncan. Villa-Castaneda believed that he and his incarcerated son were being unfairly targeted and erroneously being portrayed as major drug dealers by AUSA Duncan. Sometime over the next twenty-four hours, Villa-Castaneda asked the inmate if he knew anyone that could “whack” AUSA Duncan for him. Villa-Castaneda said he would pay $25,000 to have it done. Villa-Castaneda stated he currently had $15,000 hidden in radio speakers at his sister's house and he would pay an additional $10,000 after the job was done.
On November 24, 2015, Villa-Castaneda was questioned by FBI special agents at the Grayson County Detention Center. Villa-Castaneda was read his Miranda rights, and signed a form stating he understood his rights and understood he was waiving those rights before admitting to making the threats and soliciting an inmate to assist in the murder of AUSA Duncan.
Mister Duncan received an appointment by President Donald Trump to serve as United States Attorney for the Eastern District of Kentucky. That appointment awaits confirmation by the United States Senate.
Due to recusal by the United States Attorney’s Office for the Eastern District of Kentucky, this case was prosecuted by Assistant United States Attorney for the Western District of Kentucky, A. Spencer McKiness, and was investigated by the Federal Bureau of Investigation (FBI).
Justice Department Requires General Electric Company to Make Incentive Payments to Encourage Completion of Divestitures Agreed to as a Condition of Baker Hughes MergerRead the Press Release
The Department of Justice announced that General Electric Co. (GE) has agreed to make incentive payments beginning in 2018 until GE completes the worldwide divestiture of its Water & Process Technologies business (GE Water). GE agreed to divest GE Water to resolve the Department’s competitive concerns with GE’s acquisition of Baker Hughes Incorporated. As part of the original proposed settlement filed on June 12, 2017, GE committed to divest the worldwide assets of GE Water to SUEZ S.A., a leading global water and waste management company, by approximately the end of September 2017.
While GE has divested GE Water assets accounting for approximately 90 percent of GE Water’s revenues (including all assets in North America), it has not yet transferred to Suez legal title of GE Water assets in certain international jurisdictions due to various administrative challenges. Delays are likely to push the divestiture in some international jurisdictions into 2018. In the meantime, GE has conferred beneficial ownership and operational control of the assets in these jurisdictions to Suez.
The Department filed a motion to enter a modified final judgment in the U.S. District Court for the District of Columbia, which the Court approved and signed yesterday. The Court Order contains two newly agreed-upon provisions of note. First, in order to encourage GE to complete the divestitures promptly, the Court Order requires GE to begin making daily incentive payments as soon as January 1, 2018, until the divestitures in each international jurisdiction are completed. Second, the Order reflects GE’s agreement to reimburse the United States for attorney’s fees and costs incurred in addressing these delays.
In moving the Court to approve the settlement and incentive payment structure, the Department explained that it only agrees to resolve the competitive concerns raised by a merger through a divestiture remedy “if it determines that the buyer of the divestiture assets will step seamlessly into the shoes of one of the merging parties and preserve the competition that otherwise would be lost due to the merger.” To ensure that competition is preserved, merging companies must commit to completing the required divestiture in a timely fashion and, in return, they are allowed to consummate their merger before the divestiture is finalized. In this case, GE signed a Hold Separate Stipulation and Order in which it agreed to make a prompt, complete divestiture and was allowed to consummate its merger with Baker Hughes on July 3. However, GE is now unable to comply with the timing it committed to in its original settlement with the Department.
“The Antitrust Division takes seriously the enforcement of commitments parties make when settling antitrust lawsuits and will seek to have the parties reimburse United States taxpayers for the fees and expenses the Division incurs in enforcing our consent decrees,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “I want to recognize and commend General Electric for its proactive cooperation in resolving the issues arising from the incomplete execution of the required divestiture within the original timeframe and for agreeing to reimburse the taxpayers in connection with the review and revision of the decree.”
GE is a New York corporation headquartered in Boston, Massachusetts. GE is a large, diversified corporation that, among other lines of business, supplies the oil and gas industry with a variety of products and services. GE generated $16 billion in revenues from oil- and natural gas-related products and services in 2015.
Justice Department Announces First Ever Indictments Against Designated Chinese Manufacturers of Deadly Fentanyl and Other Opiate SubstancesRead the Press Release
Note: The relevant court documents can be found here: Zhang et al Indictment and Yan et al Indictment.
The Justice Department announced today that federal grand juries in the Southern District of Mississippi and the District of North Dakota returned indictments, unsealed yesterday, against two Chinese nationals and their North American based traffickers and distributors for separate conspiracies to distribute large quantities of fentanyl and fentanyl analogues and other opiate substances in the United States. The Chinese nationals are the first manufacturers and distributors of fentanyl and other opiate substances to be designated as Consolidated Priority Organization Targets (CPOTs). CPOT designations are those who have “command and control” elements of the most prolific international drug trafficking and money laundering organizations.
On Sept. 7, Xiaobing Yan, 40, of China, was indicted in the Southern District of Mississippi on two counts of conspiracy to manufacture and distribute multiple controlled substances, including fentanyl and fentanyl analogues, and seven counts of manufacturing and distributing the drugs in specific instances. Yan, a distributor of a multitude of illegal drugs, used different names and company identities over a period of at least six years and operated websites selling acetyl fentanyl and other deadly fentanyl analogues directly to U.S. customers in multiple cities across the country. Yan also operated at least two chemical plants in China that were capable of producing ton quantities of fentanyl and fentanyl analogues. Yan monitored legislation and law enforcement activities in the United States and China, modifying the chemical structure of the fentanyl analogues he produced to evade prosecution in the United States. Over the course of the investigation, federal agents identified more than 100 distributors of synthetic opioids involved with Yan’s manufacturing and distribution networks. Federal investigations of the distributors are ongoing in 10 judicial districts, and investigators have traced illegal proceeds of the distribution network. In addition, law enforcement agents intercepted packages mailed from Yan’s Internet pharmaceutical companies, seizing multiple kilograms of suspected acetyl fentanyl, potentially enough for thousands of lethal doses.
On Sept. 20, Jian Zhang, 38, of China, five Canadian citizens, two residents of Florida, and a resident of New Jersey were indicted in the District of North Dakota for conspiracy to distribute fentanyl and fentanyl analogues in the United States, conspiracy to import the drugs from Canada and China, a money laundering conspiracy, an international money laundering conspiracy, and operation of a continuing criminal enterprise. Zhang ran an organization that manufactured fentanyl in at least four known labs in China and advertised and sold fentanyl to U.S. customers over the Internet. Zhang’s organization would send orders of fentanyl or other illicit drugs, or pill presses, stamps, or dies used to shape fentanyl into pills, to customers in the United States through the mail or international parcel delivery services. Federal law enforcement agents determined that Zhang sent many thousands of these packages since January of 2013.
On Oct. 11, Elizabeth Ton, 26, and Anthony Gomes, 33, both of Davie, Florida were arrested. On Oct. 12, Darius Ghahary, 48, of Ramsey, New Jersey was arrested. Ton, Gomes, and Ghahary are charged with drug trafficking conspiracy in the Zhang indictment.
The investigations of Yan and Zhang revealed a new and disturbing facet of the opioid crisis in America: fentanyl and fentanyl analogues are coming into the United States in numerous ways, including highly pure shipments of fentanyl from factories in China directly to U.S. customers who purchase it on the Internet. Unwary or inexperienced users often have no idea that they are ingesting fentanyl until it is too late. The Centers for Disease Control estimates that over 20,000 Americans were killed by fentanyl and fentanyl analogues in 2016, and the number is rising at an exponential rate.
Zhang was charged with conduct resulting in the deaths of four individuals in North Carolina, New Jersey, North Dakota, and Oregon in 2014 and 2015 and the serious bodily injuries related to five additional individuals.
These recent law enforcement efforts to keep fentanyl and fentanyl analogues from entering the United States were announced by Deputy Attorney General Rod J. Rosenstein; Acting Administrator Robert W. Patterson of the Drug Enforcement Administration (DEA), Acting Deputy Director Peter T. Edge of U.S. Immigration and Customs Enforcement (ICE) and Assistant Commissioner Joanne Crampton of the Royal Canadian Mounted Police (RCMP).
“Zhang and Yan are the first Chinese nationals designated as Consolidated Priority Organization Targets (CPOTs),” said Deputy Attorney General Rosenstein. “CPOTs are among the most significant drug trafficking threats in the world. The defendants allegedly shipped massive quantities of deadly fentanyl and other synthetic opioids to communities throughout the United States, mostly purchased on the Internet and sent through the mail. The chemicals allegedly killed and injured people in several states, and surely caused misery to many thousands of people. Under the leadership of President Trump and Attorney General Sessions, we are taking back our communities by pursuing suppliers of deadly drugs wherever they are located.”
“Xiaobing Yan, Jian Zhang and their respective associates represent one of the most significant drug threats facing the country – overseas organized crime groups capable of producing nearly any synthetic drug imaginable, including fentanyl, and who attempt to hide their tracks with web-based sales, international shipments and cryptocurrency transactions,” said DEA Acting Administrator Patterson. “At a time when overdose deaths are at catastrophic levels, one of DEA’s top priorities is the pursuit of criminal organizations distributing their poison to American neighborhoods. These indictments are a first step; our investigators remain relentless in their pursuit to dismantle these organizations and bring those responsible to justice. DEA, along with our global network of law enforcement partners, will go after these types of criminals wherever they operate.”
“This case began when local police officers responded to what has become an all-too familiar tragedy in the United States: the heroin and fentanyl overdose of two young adults, one who survived and another who did not,” said ICE Acting Deputy Director Edge. “Fentanyl is 50 times more potent than heroin and 100 times more potent than morphine. Drug trafficking organizations that deal in such a deadly game will have to face the combined resources of federal law enforcement agencies and our international partners. ICE Homeland Security Investigations is committed to helping combat this new and growing epidemic.”
“We live in an increasingly global and interconnected world – crime has no borders,” said Assistant Commissioner Crampton. “Law enforcement must respond accordingly by working beyond our borders together to detect and disrupt criminal activity. By fostering a solid integrated and coordinated law enforcement approach, we will continue to disrupt international drug trafficking networks.”
The cases against Yan and Zhang are being investigated by the DEA, ICE Homeland Security Investigations, the Internal Revenue Service Criminal Investigation, the U.S. Postal Inspection Service and the RCMP. Valuable investigative assistance has also been provided by U.S. Customs and Border Protection and the Ministry of Public Security of China. The case against Yan is being prosecuted by Assistant U.S. Attorney John Meynardie in the Southern District of Mississippi. The case against Zhang is being prosecuted by U.S. Attorney Chris Myers and Assistant U.S. Attorney Scott Kerin in the District of North Dakota, along with Trial Attorney Adrienne Rose of the Criminal Division’s Narcotic and Dangerous Drug Section. Substantial prosecutorial assistance has been provided by the U.S. Attorney’s Office in the District of Oregon and the Quebec office of the Public Prosecution Service of Canada.
Both of the indictments announced today are the result of coordinated, multi-agency, multi-national investigations conducted by agents and investigators of the Organized Crime Drug Enforcement Task Forces (OCDETF), and were further supported with national and international coordination led by the multi-agency Special Operations Division (SOD). The OCDETF Program is a partnership between federal, state, local, and international law enforcement agencies. The OCDETF mission is to target the most serious transnational organized crime threats facing the United States, including drug trafficking, weapons trafficking, and money laundering. Prior to the announcement of these indictments, Jian Zhang and Xiaobing Yan were designated as OCDETF Consolidated Priority Organization Targets (CPOTs), and are considered by the United States as some of the most significant drug trafficking threats in the world.
If convicted, Yan faces a maximum statutory penalty of 20 years in prison, a $1 million fine, and three years of supervised release. Zhang faces up to life in prison and $12.5 million in fines. Any sentences will be determined at the discretion of the district courts after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Twenty-one individuals in total have been indicted on federal drug charges in both North Dakota and Oregon as part of the investigation.
Justice Department Announces First Ever Indictments Against Designated Chinese Manufacturers of Deadly Fentanyl and Other Opiate SubstancesRead the Press Release
WASHINGTON - The Justice Department announced today that federal grand juries in the Southern District of Mississippi and the District of North Dakota returned indictments, unsealed yesterday, against two Chinese nationals and their North American based traffickers and distributors for separate conspiracies to distribute large quantities of fentanyl and fentanyl analogues and other opiate substances in the United States. The Chinese nationals are the first manufacturers and distributors of fentanyl and other opiate substances to be designated as Consolidated Priority Organization Targets (CPOTs). CPOT designations are those who have “command and control” elements of the most prolific international drug trafficking and money laundering organizations.
On Sept. 7, Xiaobing Yan, 40, of China, was indicted in the Southern District of Mississippi on two counts of conspiracy to manufacture and distribute multiple controlled substances, including fentanyl and fentanyl analogues, and seven counts of manufacturing and distributing the drugs in specific instances. Yan, a distributor of a multitude of illegal drugs, used different names and company identities over a period of at least six years and operated websites selling acetyl fentanyl and other deadly fentanyl analogues directly to U.S. customers in multiple cities across the country. Yan also operated at least two chemical plants in China that were capable of producing ton quantities of fentanyl and fentanyl analogues. Yan monitored legislation and law enforcement activities in the United States and China, modifying the chemical structure of the fentanyl analogues he produced to evade prosecution in the United States. Over the course of the investigation, federal agents identified more than 100 distributors of synthetic opioids involved with Yan’s manufacturing and distribution networks. Federal investigations of the distributors are ongoing in 10 judicial districts, and investigators have traced illegal proceeds of the distribution network. In addition, law enforcement agents intercepted packages mailed from Yan’s Internet pharmaceutical companies, seizing multiple kilograms of suspected acetyl fentanyl, potentially enough for thousands of lethal doses.
On Sept. 20, Jian Zhang, 38, of China, five Canadian citizens, two residents of Florida, and a resident of New Jersey were indicted in the District of North Dakota for conspiracy to distribute fentanyl and fentanyl analogues in the United States, conspiracy to import the drugs from Canada and China, a money laundering conspiracy, an international money laundering conspiracy, and operation of a continuing criminal enterprise. Zhang ran an organization that manufactured fentanyl in at least four known labs in China and advertised and sold fentanyl to U.S. customers over the Internet. Zhang’s organization would send orders of fentanyl or other illicit drugs, or pill presses, stamps, or dies used to shape fentanyl into pills, to customers in the United States through the mail or international parcel delivery services. Federal law enforcement agents determined that Zhang sent many thousands of these packages since January of 2013.
On Oct. 11, Elizabeth Ton, 26, and Anthony Gomes, 33, both of Davie, Florida were arrested. On Oct. 12, Darius Ghahary, 48, of Ramsey, New Jersey was arrested. Ton, Gomes, and Ghahary are charged with drug trafficking conspiracy in the Zhang indictment.
The investigations of Yan and Zhang revealed a new and disturbing facet of the opioid crisis in America: fentanyl and fentanyl analogues are coming into the United States in numerous ways, including highly pure shipments of fentanyl from factories in China directly to U.S. customers who purchase it on the Internet. Unwary or inexperienced users often have no idea that they are ingesting fentanyl until it is too late. The Centers for Disease Control estimates that over 20,000 Americans were killed by fentanyl and fentanyl analogues in 2016, and the number is rising at an exponential rate.
Zhang was charged with conduct resulting in the deaths of four individuals in North Carolina, New Jersey, North Dakota, and Oregon in 2014 and 2015 and the serious bodily injuries related to five additional individuals.
These recent law enforcement efforts to keep fentanyl and fentanyl analogues from entering the United States were announced by Deputy Attorney General Rod J. Rosenstein; Acting Administrator Robert W. Patterson of the Drug Enforcement Administration (DEA), Acting Deputy Director Peter T. Edge of U.S. Immigration and Customs Enforcement (ICE) and Assistant Commissioner Joanne Crampton of the Royal Canadian Mounted Police (RCMP).
“Zhang and Yan are the first Chinese nationals designated as Consolidated Priority Organization Targets (CPOTs),” said Deputy Attorney General Rosenstein. “CPOTs are among the most significant drug trafficking threats in the world. The defendants allegedly shipped massive quantities of deadly fentanyl and other synthetic opioids to communities throughout the United States, mostly purchased on the Internet and sent through the mail. The chemicals allegedly killed and injured people in several states, and surely caused misery to many thousands of people. Under the leadership of President Trump and Attorney General Sessions, we are taking back our communities by pursuing suppliers of deadly drugs wherever they are located.”
“Xiaobing Yan, Jian Zhang and their respective associates represent one of the most significant drug threats facing the country – overseas organized crime groups capable of producing nearly any synthetic drug imaginable, including fentanyl, and who attempt to hide their tracks with web-based sales, international shipments and cryptocurrency transactions,” said DEA Acting Administrator Patterson. “At a time when overdose deaths are at catastrophic levels, one of DEA’s top priorities is the pursuit of criminal organizations distributing their poison to American neighborhoods. These indictments are a first step; our investigators remain relentless in their pursuit to dismantle these organizations and bring those responsible to justice. DEA, along with our global network of law enforcement partners, will go after these types of criminals wherever they operate.”
“This case began when local police officers responded to what has become an all-too familiar tragedy in the United States: the heroin and fentanyl overdose of two young adults, one who survived and another who did not,” said ICE Acting Deputy Director Edge. “Fentanyl is 50 times more potent than heroin and 100 times more potent than morphine. Drug trafficking organizations that deal in such a deadly game will have to face the combined resources of federal law enforcement agencies and our international partners. ICE Homeland Security Investigations is committed to helping combat this new and growing epidemic.”
“We live in an increasingly global and interconnected world – crime has no borders,” said Assistant Commissioner Crampton. “Law enforcement must respond accordingly by working beyond our borders together to detect and disrupt criminal activity. By fostering a solid integrated and coordinated law enforcement approach, we will continue to disrupt international drug trafficking networks.”
The cases against Yan and Zhang are being investigated by the DEA, ICE Homeland Security Investigations, the Internal Revenue Service Criminal Investigation, the U.S. Postal Inspection Service and the RCMP. Valuable investigative assistance has also been provided by U.S. Customs and Border Protection and the Ministry of Public Security of China. The case against Yan is being prosecuted by Assistant U.S. Attorney John Meynardie in the Southern District of Mississippi. The case against Zhang is being prosecuted by U.S. Attorney Chris Myers and Assistant U.S. Attorney Scott Kerin in the District of North Dakota, along with Trial Attorney Adrienne Rose of the Criminal Division’s Narcotic and Dangerous Drug Section. Substantial prosecutorial assistance has been provided by the U.S. Attorney’s Office in the District of Oregon and the Quebec office of the Public Prosecution Service of Canada.
Both of the indictments announced today are the result of coordinated, multi-agency, multi-national investigations conducted by agents and investigators of the Organized Crime Drug Enforcement Task Forces (OCDETF), and were further supported with national and international coordination led by the multi-agency Special Operations Division (SOD). The OCDETF Program is a partnership between federal, state, local, and international law enforcement agencies. The OCDETF mission is to target the most serious transnational organized crime threats facing the United States, including drug trafficking, weapons trafficking, and money laundering. Prior to the announcement of these indictments, Jian Zhang and Xiaobing Yan were designated as OCDETF Consolidated Priority Organization Targets (CPOTs), and are considered by the United States as some of the most significant drug trafficking threats in the world.
If convicted, Yan faces a maximum statutory penalty of 20 years in prison, a $1 million fine, and three years of supervised release. Zhang faces up to life in prison and $12.5 million in fines. Any sentences will be determined at the discretion of the district courts after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Twenty-one individuals in total have been indicted on federal drug charges in both North Dakota and Oregon as part of the investigation.Jury Convicts Man of Child Pornography CrimesRead the Press Release
**UPDATE** On May 29, 2018, U.S. District Judge Anthony J. Trenga ordered that the jury's verdict finding the defendant guilty of counts one and two of the indictment be set aside, the judgment of conviction vacated, and the indictment dismissed. Original press release announcing the trial conviction is below.
ALEXANDRIA, Va. – A federal jury convicted a Sterling man today on charges of distributing and receiving images of child sexual abuse.
Jerry Dean Dillingham, 38, was convicted of distribution and receipt of child pornography. According to evidence presented at trial, Dillingham was found sharing child pornography files on a peer-to-peer network on the Internet. Agents executed a federal search warrant at Dillingham’s home, and Dillingham admitted he downloaded and shared child pornography on the Internet. Forensic review of Dillingham’s computer revealed child pornography images involving prepubescent children, including bondage and bestiality.
Dillingham faces a mandatory minimum of 5 years in prison when sentenced on Feb. 2, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney James E. Burke IV are prosecuting the case.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Washington D.C., and the High Technology Investigative Unit of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-184.