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Wednesday 23 August 2017
Manchester Man Sentenced to 30 Months in Prison for Federal Firearm CrimeRead the Press Release
Concord, N.H.— Acting United States Attorney John J. Farley announced today that Christian Cherry, 33, previously of Manchester, New Hampshire, was sentenced to 30 months in prison for possession of a firearm by a prohibited person.
According to court documents and statements made in court proceedings, on August 13, 2016, after receiving a 911 call, Manchester Police responded to a residence for a reported domestic dispute. Upon arrival, they encountered Cherry in his vehicle in the parking lot of the residence, and his then-girlfriend inside the apartment. Once in the apartment, officers observed visible signs of a struggle, and witnesses reported the presence of a firearm. Officers ultimately obtained a search warrant for the residence and recovered two Smith & Wesson handguns in a bedroom belonging to Cherry. One of the firearms had been reported stolen to Manchester Police in June 2016. Cherry was prohibited from possessing any firearm as a result of at least one prior felony conviction.
A federal grand jury indicted Cherry for being a felon in possession of a firearm on October 19, 2016. Cherry pleaded guilty on May 10, 2017. He has been in custody since his arrest on November 17, 2016.
In addition to a 30-month prison sentence, the Court ordered Cherry to serve three years of supervised release and to pay a $100 mandatory special assessment.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Manchester Police Department. The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Luzerne County Woman Guilty of Participating in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Brianna Rattigan, age 24, of Wilkes-Barre, Pennsylvania, pleaded guilty on August 22, 2017, before Senior U.S. District Court Judge James M. Munley, to conspiring with others to distribute heroin in Luzerne County during February through November 2014.
According to United States Attorney Bruce D. Brandler, Rattigan admitted to allowing co-conspirators to store heroin at her residence, and at times she distributed heroin to customers. Rattigan admitted to storing and distributing between 100 and 400 grams of heroin, which is approximately equivalent to between 4,000 and 16,000 retail bags of heroin.
Desmond Mercer, the leader of the drug conspiracy, previously pleaded guilty and was sentenced to 14 years in prison. Shaliek Stroman and Shaquan Murphy, two key associates of Mercer, were each sentenced to more than 12 years in prison for their roles in the conspiracy. Another member of the drug ring, Antuan Jamison, was sentenced to five years in prison.
Rattigan was indicted by a federal grand jury in February 2016, as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County District Attorney’s Office, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled Rattigan’s sentencing for December 5, 2017.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 40 years in prison, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of five years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Logan man sentenced to nine years in federal prison for gun chargeRead the Press Release
CHARLESTON, W.Va. – A Logan man was sentenced today to nine years in federal prison for a gun crime, announced United States Attorney Carol Casto. Bryan Keith Lewis, 25, previously pleaded guilty to possession of a firearm after being convicted of a misdemeanor crime of domestic violence.
Lewis admitted that on November 9, 2015, while carrying a Smith & Wesson, Bodyguard, .380 caliber pistol, he entered a residence in Logan by kicking the door open and motioned for a victim in the residence to give over any money. The victim resisted and a struggle began. During the struggle, Lewis admitted that he shot the victim several times. Despite the gunshot wounds, the victim stabbed Lewis multiple times with a box cutter. Lewis fled the house and dropped the gun on the way out. The victim crawled to pick up the firearm and when Lewis returned to the house to retrieve the gun, the victim shot Lewis.
Lewis was prohibited from possessing any firearm under federal law because of a 2014 conviction in Logan County Magistrate Court for domestic assault.
The Logan Police Department, the Logan County Sheriff’s Office, the U.S. Route 119 Drug Task Force, the West Virginia State Police, 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. United States District Judge Joseph R. Goodwin imposed the sentence.
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 existing local programs targeting gun crime.
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Lawrence Gang Member Indicted on Federal Firearms and Drug ChargesRead the Press Release
BOSTON – A Lawrence gang member was indicted today in federal court in Boston on federal firearms and drug charges.
Esmarin Santiago, 39, was charged with one count each of being a felon in possession of firearms and ammunition, possessing fentanyl with the intent to distribute, and possessing firearms during and in relation to a drug trafficking crime. Santiago was previously charged in a criminal complaint and arrested in July 2017.
According to court documents, Santiago is associated with the Latin Gangster Disciple street gang and has a lengthy criminal history including prior convictions for possession of firearms, assault and battery with a dangerous weapon, armed robbery, armed assault, and possession with intent to distribute a controlled substance.
On April 10, 2017, Santiago was allegedly found in possession of a Smith & Wesson 9 mm firearm, a Smith & Wesson .40 caliber firearm, 10 rounds of 9 mm ammunition, and 14 rounds of .40 caliber ammunition. He was also found in possession of over 40 grams of fentanyl.
The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute over 40 grams of fentanyl provides for a minimum sentence of five years and a maximum of 40 years in prison, a minimum of four years and a maximum of a lifetime of supervised release, and a fine of up to $5 million. The charge of possessing a firearm during and in relation to a drug trafficking crime provides for a mandatory minimum of five years and a maximum of life in prison to be served consecutively to any other sentence, five years of supervised release, and a fine up to $250,000. Sentences are imposed by a federal judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Middlesex District Attorney Marian T. Ryan made the announcement today. Assistant United States Attorney Kunal Pasricha of Weinreb’s Organized Crime & Gang Unit is prosecuting the case.
The details contained in the indictments are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Las Cruces Man Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jose Angel Sanchez, 35, of Las Cruces, N.M., was sentenced today in federal court to 120 months in prison followed by six years of supervised release for his conviction on a methamphetamine trafficking charge.
Sanchez was arrested on Dec. 2, 2016, on a criminal complaint charging him with possessing approximately 229.5 grams of methamphetamine with intent to distribute in Dona Ana County, N.M. According to the complaint, Sanchez committed the crime while on supervised release from a prior federal drug trafficking conviction.
On March 30, 2017, Sanchez pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute. In entering the guilty plea, Sanchez admitted that on Dec. 2, 2016, he possessed more than 50 grams of methamphetamine, which he intended to sell to others. Sanchez also admitted that he was on supervised release from a prior conviction when he committed the offense on Dec. 2, 2016, and that he was prohibited from committing crimes as a condition of his supervised release.
This case was investigated by the Las Cruces office of the FBI and was prosecuted by Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office.
Justice Department Secures the Denaturalization of Individual Convicted of Impersonating an Immigration Officer to Defraud Other Immigrants Residing Unlawfully in the United StatesRead the Press Release
On Aug. 21, Judge R. Gary Klausner of the U.S. District Court for the Central District of California entered an order that revoked the naturalized U.S. citizenship of a fraudster and immigration-officer impersonator, restrained and enjoined her from claiming any rights, privileges, or advantages of U.S. citizenship, and ordered her to immediately surrender and deliver her Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities, the U.S. Department of Justice, U.S. Immigration and Customs Enforcement (ICE) and U.S. Citizenship and Immigration Services (USCIS) jointly announced.
“The Justice Department is committed to preserving the integrity of our nation’s immigration system and the propriety of the government’s adjudication of immigration benefits,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue the denaturalization of individuals who lie on their naturalization applications, especially in a circumstance like this one, which involved an alien who masqueraded as an immigration officer and was convicted of defrauding nine aliens of thousands of dollars in exchange for false promises of facilitating immigration benefits.”
Araceli Martinez aka Maria Araceli Ramos de Martinez, 53, a native of Mexico, pleaded guilty in September 2012 to Obtaining Money, Labor or Property by False Pretense in violation of California Penal Code § 532(a) in the Superior Court of the State of California for the County of Los Angeles. Between June 2011 and March 2012, Martinez engaged in a scheme in which she impersonated a U.S. immigration officer. Martinez falsely represented that undocumented immigrants could hire her to assist them in obtaining legal status, defrauding her victims of thousands of dollars without ever submitting any paperwork on their behalf. Martinez applied to naturalize and become a U.S. citizen in the midst of engaging in her fraudulent scheme. While under oath during her naturalization interview, Martinez stated that she had never committed a crime or offense for which she was not arrested. Relying on this answer, USCIS granted her naturalization application and Martinez became a U.S. citizen later that year. When the Department of Justice filed a complaint in federal court to initiate denaturalization proceedings in April 2017, Martinez was incarcerated in the Mendocino County jail in Ukiah, California, serving a two-year sentence for a December 2015 conviction for felony grand theft.
“This order sends a clear message to individuals who commit fraud during the naturalization process – we will investigate you and seek you out to ensure that justice is done,” said Acting ICE Director Thomas Homan. “ICE will continue to work with our partners at the Justice Department’s Office of Immigration Litigation – District Court Section to hold individuals responsible for their fraudulent conduct, especially those pretending to be government officials.”
“I congratulate the trial team for bringing Araceli Martinez to justice,” said USCIS Acting Director James McCament. “Ms. Martinez fraudulently obtained her citizenship and then made false representations that exploited other immigrants. By doing so, she threatened to undermine the hard work our officers do every day to protect the integrity of the immigration system. USCIS is glad to see her held accountable.”
This case was investigated by ICE Homeland Security Investigations Los Angeles Document and Benefit Fraud Task Force and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case was prosecuted by Deputy Chief Tim Belsan of OIL-DCS’s National Security and Affirmative Litigation Unit, with support from ICE Senior Attorney Jillian Woods.
Jury Convicts Undocumented Alien for Illegal Re-entryRead the Press Release
McALLEN, Texas - A 40-year-old Mexican national has been convicted of illegally re-entering the country after removal or deportation, announced Acting U.S. Attorney Abe Martinez. A federal jury sitting in McAllen deliberated for approximately 30 minutes before finding Rogelio Rodriguez guilty.
During the trial, Border Patrol (BP) agents testified that Rodriguez had been apprehended near Donna on April 24, 2016, and admitted to being a Mexican national. Record checks revealed Rodriguez had been previously removed from the United States on three separate occasions and that he had no lawful status to be in the United States.
U.S. District Judge Ricardo H. Hinojosa presided over the trial and set sentencing for Oct. 27, 2017, at which time Rodriguez faces up to 20 years in federal prison.
He will remain in custody pending that hearing.
U.S. Border Patrol conducted the investigation. Assistant U.S. Attorney Kristen Rees is prosecuting the case.
Jefferson County man admits to illegal firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Charles Town, West Virginia man pled guilty today to unlawfullly possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Darnell Antonio Gardner, age 38, pled guilty to one count of “Unlawful Possession of a Firearm.” Gardner, having previously been convicted of a felony in Prince George’s County, Maryland, had a .40 caliber pistol in Jefferson County in June 2016.
Gardner faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Jefferson County Sheriff’s Office investigated.U.S. Magistrate Judge Robert W. Trumble presided.
Indictment: Topeka Man Brandished Firearm During Robbery at McDonald’sRead the Press Release
TOPEKA, KAN. - A Topeka man was indicted Wednesday on charges of brandishing a firearm when he robbed a McDonald’s restaurant, U.S. Attorney Tom Beall said.
Brendon R. Thompson, 30, Topeka, Kan., is charged with one count of robbery and one count of brandishing a firearm during the robbery. The indictment alleged that on July 19, 2017, Thompson threatened employees with a gun when he robbed a McDonald’s restaurant at 1100 S. Kansas Avenue in Topeka.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on the robbery charge, and not less than seven years and a fine up to $250,000 on the firearm charge. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Carlos F. Fernandez-Gonzalez, 28, Yucaipa, Calif., is charged in a superseding indictment with one count of possession with intent to distribute 14 kilograms of fentanyl, and one count of possession with intent to distribute 2.25 kilograms of heroin. The crime is alleged to have occurred May 25, 2017, in Russell County, Kan.
If convicted, he faces not less than 10 years and a fine up to $10 million on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Robert P. McConnell, 48, Slippery Rock, Penn., owner of Horseshoe Hill Outfitters, is charged with four counts of violating the federal Lacey Act. The indictment alleges he unlawfully took deer in 2014 and 2014 in Allen County, Kan.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on each count. The U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Willie Ben Jordan, Jr., 42, who is in custody, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 21, 2017, in Shawnee County.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Robert Wesley Fox, 54, Marysville, Kan., is charged with failing to register as required by the Sex Offender Registration and Notification Act. He was found in Marshall County in August 2017.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Howard Dale Burchfiel, 31, Topeka, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred June 17, 2017, in Topeka, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Juan Carlos Aguilar, 23, Kansas City, Mo., and Saul Lucio-Murillo, 28, Palmdale, Calif., are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 30, 2017, in Saline County, Kan.
If convicted, they face not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
Brandon Valerius, 38, William Hancock, 58, Colbie Clayton, 31, and Treasure McCall, 33, all in federal custody, are charged with conspiracy to distribute methamphetamine. In addition, Valerius and McCall are charged with one count of possession with intent to distribute methamphetamine, Hancock is charged with one count of possession with intent to distribute methamphetamine, and Colbie Clayton is charged with one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Aug. 4, 2017, in Riley County.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hudson Man Sentenced to 132 Months in Federal Prison for Drug TraffickingRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Dennis Higgins, 24, formerly of Hudson, New Hampshire, was sentenced to 132 months in federal prison after pleading guilty to unlawful distribution of fentanyl.
According to court documents and statements in court proceedings, on February 15, 2016, Higgins sold a quantity of fentanyl to a 22-year-old woman from Kittery, Maine. The following morning, emergency personnel received a 911 call and responded to the woman’s Kittery residence, where they found her dead from a suspected drug overdose. At the scene, law enforcement officers found needles and a plastic bag that contained a white powdery substance that was determined to be fentanyl. An autopsy determined that the woman died from acute fentanyl intoxication.
A subsequent investigation developed evidence that Higgins had distributed fentanyl to the woman. Higgins pled guilty to drug distribution on May 15, 2017.
Acting United States Attorney John J. Farley said, “Fentanyl continues to be the cause of far too many deaths in the Granite State and throughout New England. The aggressive investigation and prosecution of individuals engaged in fentanyl trafficking in New Hampshire remains a top priority of the United States Attorney’s Office and our law enforcement partners at the local, state. and federal level. While we support access to treatment for those who suffer from addiction, those who distribute these deadly drugs need to be held accountable for the substantial damage they are causing in our community.”
“The state of New Hampshire is faced with a fentanyl and heroin crisis unlike ever before,” said Special Agent in Charge Michael J. Ferguson. “Those responsible for distributing these lethal drugs and contribute to the loss of life for those battling this insidious disease need to be held responsible for their actions. In response to the ongoing opioid epidemic DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
This case was investigated by the United States Drug Enforcement Administration with assistance from the Kittery, Maine and Merrimack, New Hampshire Police Departments. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.
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Hedge Fund Managers Indicted on Multiple Counts of Wire FraudRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced an indictment charging STEVEN MARKUSEN, 63, and JAY COPE, 58, with multiple counts of wire fraud in a stock trading scheme.[1] MARKUSEN and COPE will make their initial appearances in U.S. District Court at a later date.
According to the indictment, MARKUSEN was the sole owner, CEO and managing member of Archer Advisors LLC (“Archer”), which he formed in 2002. COPE was employed by Archer and at various times held the titles of chief operating officer, managing member, and research associate, and whose primary duties were operations, investor relations, and marketing for Archer. The sole business purpose of Archer was to serve as the investment manager for two private hedge funds, the Archer Equity Fund LLC (“Equity Fund”) and the Archer Focus Fund LLC (“Focus Fund”) (collectively, the “Funds”). At their peak, the Funds had more than $36 million in net assets.
According to the indictment, the Funds paid Archer monthly management fees, annual performance fees, and reimbursements for eligible expenses incurred by Archer. All payments to Archer were made through a third-party administrator. To place trades, MARKUSEN and COPE used brokerage firms, including certain brokerage firms that offered what is known as a “soft dollar program,” which is an incentive program where Archer would be credited a percentage of the commission paid by the Funds to the brokerage firms for each trade. Archer could use these commission percentages, called “soft dollars,” for the limited purpose of purchasing third-party research services to help Archer make investment decisions for the Funds.
According to the indictment, in 2008, COPE began submitting monthly invoices to Archer claiming he had performed research for Archer. MARKUSEN would then request reimbursement from the third-party administrator for COPE’S expenses, which were paid to Archer separate from the monthly management fees. Beginning in approximately April 2009, Archer stopped paying COPE’S fees, however, from April 2009 through October 2013, MARKUSEN continued to falsely represent to the third-party administrator that Archer had paid COPE’S fees and to fraudulently request reimbursements when, in reality, the defendants had caused soft dollars to be used to pay for COPE’S research fees. Every time Archer executed trades using one of the brokers who offered a soft dollar program, additional soft dollars were generated. MARKUSEN authorized COPE’S monthly research invoices, as well as reimbursements for other purported expenses, to be paid from the soft dollar accounts. Between May 2009 and October 2013, soft dollars were used to pay more than $500,000 in research expenses purportedly incurred by Archer, more than 80 percent of which went to COPE.
According to the indictment, as part of the scheme, MARKUSEN and COPE engaged in fraudulent trading activity that was designed to ensure that the soft dollar accounts contained sufficient funds to cover COPE’S monthly invoices. MARKUSEN and COPE closely monitored the soft dollar balance, and, after learning that it was in arrears, they began “day trading,” buying and then selling a position on the same trading day. MARKUSEN and COPE also attempted to artificially inflate the value of the Funds through a market-manipulation scheme known as “marking the close.” Through this scheme, MARKUSEN and COPE purchased large volumes of shares of a thinly traded stock in the closing minutes of the last day of the month, oftentimes at or above the prevailing market prices. Through these efforts, MARKUSEN and COPE were able to cause the stock to close at artificially high prices at the end of numerous months, which resulted in an artificially exaggerated increase in the overall value of the Funds.
This case is the result of an investigation conducted by the FBI.
The case is being prosecuted by Assistant United States Attorney John E. Kokkinen and Special Assistant U.S. Attorney Ariella Guardi with the Securities and Exchange Commission.
Defendant Information:
STEVEN MARKUSEN, 63
Minneapolis, Minn.
Charges:
- Mail fraud, 8 counts
JAY COPE, 58
Victoria, Minn.
Charges:
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Mail fraud, 4 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Gregg County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 29-year-old Kilgore, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Andrew Jonathan Hearnsberger pleaded guilty on May 16, 2017, to conspiracy to distribute and possession with intent to distribute heroin and was sentenced to 60 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Jan. 10, 2017, law enforcement agents executed a federal arrest warrant for Hearnsberger in Kilgore as a result of an investigation into illegal drug trafficking in the area. The arrest resulted in the seizure of $14,624 in cash, heroin, marijuana, and multiple firearms. Hearnsberger was indicted by a federal grand jury on Dec. 14, 2016, and charged with federal drug trafficking violations.
This case was investigated by the U.S. Drug Enforcement Administration, Gregg County CODE Unit, Smith County Sheriff’s Office, and the Kilgore Police Department and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Genco Pharmaceuticals Services to Pay Civil Penalty of $2,000,000Read the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced yesterday that the United States has settled civil penalty claims against Genco for alleged violations of the Controlled Substances Act (CSA) and its implementing regulations. Under the settlement agreement, Genco will pay a civil penalty to the United States of $2,000,000.
Genco is a company that specializes in the handling, processing and destruction of pharmaceutical returns, including controlled substances, from pharmaceutical manufacturing and retail companies throughout the United States. Genco’s return processing facility for controlled substances is located at 6101 North 64th Street in Milwaukee, Wisconsin. Because Genco processes and handles controlled substances, it is required to operate in accordance with the CSA.
As reflected in a written Settlement Agreement, the United States contends that it has certain civil penalty claims arising under the CSA against Genco for the following conduct commencing January 1, 2012:
(1) failing to make, keep and furnish accurate records of all stocks of controlled substances on hand and each controlled substance received, sold, delivered or otherwise disposed of;
(2) failing to make, keep and furnish complete and accurate DEA order forms (Form 222) documenting all receipts of schedule II controlled substances;
(3) failing to furnish complete and accurate reports to DEA’s Automation of Reports and Consolidated Orders System Unit of data on each acquisition to inventory and each reduction from inventory of Schedule II controlled substances, narcotic controlled substances listed in Schedule III, and drugs listed in 21 C.F.R. § 1304.33(d); and
(4) failing to notify the Field Division Office of the Drug Enforcement Administration, in writing using DEA Form 106, of thefts and significant losses of Schedule III-V controlled substances within one business day of the discovery of the theft or loss.
The CSA provides for a civil penalty of up to $10,000 for each violation of the Act. This matter was investigated by Diversion Investigators with the Milwaukee Field Office of the United States Drug Enforcement Administration. Genco cooperated in the DEA’s investigation and has taken significant steps to prevent future violations of the CSA.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Fort Smith Woman Sentenced to 60 Years in Federal Prison for the Sexual Exploitation of Two InfantsRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Amelia Marie Spiotto, age 32, of Fort Smith, was sentenced today to 60 years in federal prison without the possibility of parole followed by a lifetime of supervised release on Two (2) Counts of Production of Child Pornography. The sentencing hearing took place before the Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
According to the court records, in February 2016, agents with the Internet Crimes Against Children Taskforce, in conjunction with Department of Homeland Security, were conducting an investigation into the online trafficking of child pornography in the Fort Smith Area. As a part of the investigation, law enforcement obtained a federal search warrant for the residence of James Spiotto. During the execution of the search warrant, law enforcement located a computer hard drive that had been thrown from a second story window. A subsequent forensic examination of the hard drive revealed numerous videos under a file entitled “for Daddy” in which Amelia Spiotto recorded herself sexually abusing a 3-month-old male and an 11-month-old female. Law enforcement also discovered recordings of a co-defendant, James Spiotto, molesting the same 11-month old female. During a post-Miranda interview, James Spiotto admitted that Amelia Spiotto arranged to babysit a friend’s daughter, and thereafter they separately made videos of themselves sexually abusing her. James Spiotto further admitted that Amelia Spiotto recorded herself preforming oral sex on a 3-month-old male. During the investigation, law enforcement located numerous text messages between James and Amelia Spiotto, in which they were directing and encouraging each other to perform certain sexual acts on the minors.
“Sexual predators who prey on the most vulnerable in our society are especially heinous,” said Special Agent in Charge of the New Orleans field office Raymond R. Parmer, Jr. “HSI will continue to diligently work with our law enforcement partners to ensure the perpetrators of these horrific crimes are brought to justice.”
Amelia and James Spiotto were indicted by a federal grand jury in March of 2016. James Spiotto subsequently pleaded guilty to two counts involving sexual exploitation of minors and was sentenced to serve sixty (60) years in federal prison without the possibility of parole.
This case was investigated by Homeland Security Investigations and the Arkansas State Police Internet Crimes Against Children Taskforce. Assistant United States Attorneys Dustin Roberts and Ashleigh Buckley prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (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.projectsafechildhood.gov.
Former Tampa Police Sergeant Pleads Guilty to Receipt of Stolen Government PropertyRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that LaJoyce Caldwell Houston (51, Riverview) today pleaded guilty to receiving stolen government property. She faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in 2011 and 2012, while working at the Tampa Police Department, LaJoyce Houston received goods, services, money orders, and cash that were obtained with debit cards tied to accounts that had been loaded with fraudulently obtained tax refunds. The fraudulent refunds deposited into these accounts totaled $284,490.41 and were the result of fraudulent federal income tax returns that had been filed by Rita Girven.
For example, in March 2011, Girven paid off LaJoyce Houston’s Target Visa credit card, with Houston’s knowledge, by making two in-store payments totaling $3,863.08. These in-store payments were made using a debit card loaded with nine fraudulently obtained tax refunds, eight issued in the name of identity theft victims, and one issued to Girven.
LaJoyce Houston’s co-defendant and husband, Eric Houston, pleaded guilty on March 31, 2017, to receiving stolen government property. He is scheduled to be sentenced on October 25, 2017.
In a related case (case no. 8:15-cr-58-T-17EAJ), Rita Girven pleaded guilty on March 16, 2015, to conspiracy to commit wire fraud and aggravated identity theft. On November 20, 2015, she was sentenced to 12 years in federal prison.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Former Floyd Pharmacist Sentenced for StructuringRead the Press Release
Roanoke, VIRGINIA – A former Floyd pharmacist, who structured cash deposits to avoid Internal Revenue Reporting Requirements, was sentenced today in the United States District Court for the Western District of Virginia.
Venkata Subrahmanya Ashok Raju Pinnamaraju, 40, of Roanoke, was sentenced today to 18 months incarceration to be followed followed by 1 year of supervised release. Pinnamaraju was also ordered to pay a fine of $200,000, which has been paid. Previously, Pinnamaraju waived his right to be indicted and pled guilty to a one count Information charging him with structuring financial transactions to avoid reporting requirements.
According to information presented at previous hearings by Assistant United States Attorney Jennie L. M. Waering, Pinnamaraju was the part owner and the managing pharmacist of a Floyd Pharmacy, retail pharmacy in the Town of Floyd, Virginia. As the managing pharmacist, the defendant was in charge of ordering and dispensing prescription medication, supervising pharmacy employees, billing insurance providers and overseeing the pharmacy’s finances and accounting.
In the normal course of business, Floyd Pharmacy collected large amounts of United States currency from its customers. However, instead of making a single deposit of the cash accumulated over a period of several days, the defendant made a series of smaller case deposits to avoid the currency transaction reporting requirement. Pinnamaraju conducted at least a dozen structuring deposits between 2011 and 2016, depositing cash totaling approximately $170,000.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Virginia Attorney General Mark Herring’s Medicaid Fraud Investigation Unit and the United States Health and Human Service – Office of the Inspector General. Assistant United States Attorney Jennie L. M. Waering prosecuted the case for the United States.
Former Fentress County Sheriff Sentenced to Federal PrisonRead the Press Release
Charles Cravens, 47, the former Sheriff of Fentress County, Tennessee, was sentenced today to 33 months in prison, followed by 2 years of supervised release, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division. Cravens was charged on April 20, 2017, with three counts of honest services fraud and one count of deprivation of rights under color of law. On the same day, he pleaded guilty to all charges and announced his resignation as the Fentress County Sheriff.
“Today, another public official was sentenced to prison for violating their sworn oath to uphold the law,” said Acting U.S. Attorney Jack Smith. “There are dire consequences when elected officials violate the public’s trust and place their own interest above that of their constituents.”
According to court documents, Cravens admitted that between July 2016 and February 2017, he used his position as Sheriff to provide extra benefits to female inmates in exchange for sexual relationships with each woman. These extra benefits included being personally transported by Cravens from the jail to visit relatives; allowing these inmates to go outside of the jail to smoke cigarettes; and Cravens providing money to relatives of the inmates for deposit into their jail commissary accounts.
Court documents also outline occurrences where Cravens drove female inmates from the jail and engaged in sex in a vacant trailer and in his vehicle. Cravens was also charged with kicking an inmate in the backside and placing him in a headlock while another officer handcuffed him and then striking the inmate in the back of the head, after he was handcuffed.
This case was investigated by the FBI; the Tennessee Bureau of Investigation and the District Attorney’s Office for the Eighth Judicial District. The case was prosecuted by Assistant United States Attorney Katy Risinger and DOJ Trial Attorneys Lauren Bell and Andrew Laing of the Department’s Public Integrity Section.
Former Controller of Saint Paul Golf Club Indicted for Million Dollar Embezzlement SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the indictment of JULIE ANN LEE, 53, former controller of the Town & Country Club in St. Paul, Minn., on four counts of wire fraud and six counts of filing false tax returns. LEE is expected to make her initial appearances in U.S. District Court in Minneapolis later this week.
According to the indictment, from 2008 through 2016, LEE was the controller of the Town & Country Club (“TCC”), a private golf club in St. Paul, Minn. In her role, LEE was responsible for managing TCC’s finances and had authority to sign and issue checks on behalf of TCC as well as signing authority on TCC’s bank accounts, including a line of credit TCC had with Alliance Bank. LEE used her position as controller to devise a scheme to embezzle more than $1 million from TCC over the course of eight years.
According to the indictment, as part of her embezzlement scheme, LEE fraudulently issued herself more than 50 checks totaling more than $150,000 directly from TCC’s bank accounts. LEE also stole approximately $250,000 in cash from TCC, which she deposited into her personal bank account. As part of the scheme, LEE also made payments on her personal credit cards directly from TCC bank accounts totaling approximately $600,000. LEE spent the funds she embezzled on things unrelated to TCC, including personal travel, home improvements and her mortgage, a 2013 Dodge Charger, a 2015 GMC Sierra K3500 pickup truck, a motorcycle, a recreational vehicle, and 81 acres of land in northern Minnesota.
According to the indictment, LEE attempted to conceal her embezzlement scheme and cover the shortage of money in TCC’s bank accounts by taking advances on TCC’s line of credit at Alliance Bank. As a result of LEE’s embezzlement, TCC was left without sufficient funds to make its quarterly payroll tax payments to the IRS. In order to conceal the shortage of funds, LEE filed false quarterly payroll tax returns with the IRS understating TCC’s payroll tax liability. At times, LEE also filed TCC’s quarterly payroll tax returns late and made TCC’s quarterly tax payments late, which resulted in TCC paying more than $300,000 in interest and penalties to the IRS.
This case is being prosecuted by Assistant U.S. Attorney Joseph H. Thompson.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, the United States Secret Service, and the Saint Paul Police Department.
Defendant Information:
JULIE ANN LEE, 53
Farmington, MN
Charges:
- Wire Fraud, 4 counts
- Filing false tax returns, 6 counts
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Assisted Living Facility Worker Sentenced for Tax Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Willie L. Lee to two years in federal prison for aggravated identity theft. The Court also ordered him to pay $32,933 in restitution. He pleaded guilty on May 17, 2017.
According to court documents, during 2012 and 2013, Lee was employed at an Assisted Living Facility (ALF) where he conspired with another individual to defraud the United States by stealing personal identifying information (PII) from ALF patients and deceased individuals. The PII was then used to file fraudulent income tax returns that were electronically deposited into an account that Lee had opened and maintained.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Felon from Carlsbad Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jacob Lynn Martinez, 34, of Carlsbad, N.M., was sentenced yesterday in Las Cruces, N.M., federal court to 30 months in prison for violating the federal firearms laws by unlawfully possessing firearms on two occasions. Martinez will be on supervised release for three years after completing his prison sentence.
Martinez was arrested on Jan. 25, 2017, on a criminal complaint charging him with being a felon in possession of a firearm on June 9, 2015 and Dec. 11, 2015, in Eddy County, N.M. According to the complaint, on both dates, Martinez discarded firearms while attempting to flee from police officers.
On March 29, 2017, Martinez pled guilty to a felony information charging him with being a felon in possession of a firearm on June 9, 2015 and Dec. 11, 2015. On those dates, Martinez was prohibited from possessing firearms or ammunition because he previously had been convicted of three felony offenses, aggravated fleeing from a police officer, receiving or transferring a motor vehicle, and being a felon in possession of a firearm or destructive device. Martinez entered the guilty plea without the benefit of a plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Carlsbad Police Department and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Federal and State Authorities Arrest Total of 38 Individuals Based on San Antonio Federal Drug Trafficking IndictmentsRead the Press Release
This morning, federal, state and local authorities arrested a dozen individuals without incident, including San Antonio Eastside-based ringleader Donavin Sanchez, on federal drug charges stemming from a heroin and methamphetamine trafficking investigation announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration Acting Special Agent in Charge Steve Whipple, Houston Division; and, Texas Department of Safety Director Steve McCraw. Below is a complete list of defendants resulting from this investigation.
Since June 2017, a federal grand jury in San Antonio has returned three (3) indictments charging 38 individuals in connection with this investigation. The indictments, including the latest one which was unsealed today, charges all 38 defendants with conspiracy to possess with intent to distribute a controlled substance. Several of the defendants face additional charge(s), namely, possession with intent to distribute a controlled substance. Upon conviction, the defendants face sentences of either up to 20 years in federal prison, between 5 and 40 years in federal prison, or up to life in federal prison depending on the amount of heroin or methamphetamine involved.
According to the indictments, the defendants were allegedly involved in a scheme to distribute narcotics, namely methamphetamine, heroin and other opioids, in San Antonio. During this investigation, authorities have seized approximately six (6) kilograms of heroin, 14.5 kilograms of methamphetamine, three firearms, and approximately $182,000 in U.S. Currency attributed to this organization.
“Nothing is more important than the safety and security of our communities. DEA, and our federal, state, and local law enforcement partners in San Antonio and throughout Texas, remain vigilant in our pursuit of drug trafficking organizations who threaten our community safety. These arrests send a strong and unified message that these crimes will not be tolerated in our communities and those who commit these offenses will be brought to justice,” stated DEA Acting Special Agent in Charge Steve Whipple.
“Organized crime and drug trafficking are a serious threat to public safety in Texas, and DPS vigilantly works alongside our law enforcement partners to detect, deter and dismantle drug trafficking organizations operating in our communities,” said DPS Regional Commander Freeman Martin. “This long-term investigation is an ideal example of how law enforcement at all levels works together to put criminals behind bars and protect Texans.”
The Drug Enforcement Administration—San Antonio Office and the Texas Department of Public Safety conducted this investigation together with the Seguin Police Department, Castle Hills Police Department, Internal Revenue Service-Criminal Investigation, Bexar County District Attorney’s Office, Bexar County Sheriff’s Office, and San Antonio Police Department. An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
US vs. Donavin Sanchez, et al. SA17cr633 * denotes already in custody prior to today
Name Age Residence Arrest Date Counts
Donavin Sanchez 23 San Antonio 8.23.17 1,2,3,4,5,6,7,8,9,10
Edwin Jiminez 62 San Antonio 8.23.17 1
John Sallin 47 San Antonio 8.23.17 1
Edward Alejandro 30 San Antonio 8.23.17 1
Melissa Carrera 39 San Antonio 8.23.17 1,2,6,7,8
Roger Troy Sanchez 25 San Antonio 8.23.17 1
Chenille Lujan 84 San Antonio 8.23.17 1
Michelle Sallin 23 San Antonio 8.23.17 1,3,5
Alexander Nichols 26 San Antonio 8.23.17 1,4,5
Marko Cadena 21 San Antonio 8.23.17 1,9
Kenneth Dickens 60 San Antonio 8.23.17 1
Conception Segura 30 San Antonio 8.23.17 1
*Luis Antonio Rodriguez 32 San Antonio 8.4.17 1,10
US vs. Christian Gallegos, et al. SA17cr507
*Christian Gallegos 28 San Antonio 6.2.17 1,3,4
*Edgar Portales 24 San Antonio 6.29.17 1,2,3,4
*Irene Portales 28 San Antonio 6.29.17 1
*Crystal DeLaGarza 25 San Antonio 6.29.17 1
*Yoan Loya-Morales 35 San Antonio 6.2.17 1,3,4
*Larry Ozuna 26 San Antonio 6.2.17 1,3,4
*Roberto Gonzalez 34 San Antonio 6.29.17 1,2
*Adrian Dominguez 20 San Antonio 6.29.17 1
*Issac Cardenas 27 San Antonio 7.17.17 1
*Paul Chacon 46 San Antonio 6.29.17 1
*Alberto Otenco-Ramos 34 San Antonio 6.2.17 1
U.S. v. Mike Flores, Jr., et al. SA17cr632
*Mike Flores, Jr. 45 San Antonio 8.3.17 1,2,4,5,8,9
*Oscar Llanes 46 San Antonio 8.17.17 1,4,5
*Genaro Requejo 61 San Antonio 7.26.17 1,4,5,6,7
*Richard Pierce 48 San Antonio 8 .17.17 1
*Robert Solis 54 San Antonio 8.17.17 1
*Ricardo Hernandez 69 San Antonio 8 .17.17 1
*Adolfo Cruz 42 San Antonio 8.17.17 1,4,5
*Joe Anthony Valenzuela 37 San Antonio 7.20.17 1,2,3
*Christina Maciel 35 San Antonio 8.17.17 1
*Pedro Martinez-Espinoza 32 San Antonio 8.17.17 1,4,5
*Leonidas Ortiz 27 San Antonio 7.29.17 1,4,5,8
*Joseph John Molina 38 San Antonio 7.29.17 1,8
*Charles Ortiz 49 San Antonio 8.3.17 1,10
*Pedro Requejo 68 San Antonio 8.3.17 1,9
Federal Correctional Officer Arrested for Allegedly Taking BribesRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the arrest late Tuesday of Albert Larry Harris (27, Lake County) on a federal criminal complaint charging him with receipt of a bribe by a public official. If convicted, he faces a maximum penalty of 15 years in federal prison.
According to the
criminal complaint , Harris works as a correctional officer in a penitentiary at the Coleman Federal Correctional Complex. Beginning in June 2017, he began providing inmates at the facility with contraband in exchange for large cash payments. Harris met with an undercover federal agent in Ocala on August 22, 2017, where he accepted a $5,000 payment and 200 Suboxone strips for delivery to a federal inmate. In the recorded transaction, Harris promised to take the drugs “straight to [the inmate].” He was arrested by federal agents after accepting the drugs and the money.A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Department of Justice - Office of the Inspector General and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Father and Son Charged with Selling Fentanyl and Oxycodone on the Dark WebRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the arrests of MICHAEL LUCIANO and PHILIP LUCIANO, a father-son team that sold fentanyl and oxycodone over the “dark web,” including on AlphaBay. Fentanyl is a synthetic opioid that is significantly stronger than heroin, and is a major contributor to overdose fatalities. Both defendants surrendered this morning in Manhattan, and are expected be presented today before U.S. Magistrate Judge Henry B. Pitman.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The defendants’ alleged scheme used the dark web – a place where some criminals think they can hide by trying to conceal their identity and transactions – to sell fentanyl and oxycodone, two highly addictive and potentially lethal opioids. I want to thank our partners at HSI for bringing this father-son duo’s alleged misconduct out of the dark.”
HSI Special Agent-in-Charge Angel M. Melendez said: “Fentanyl and other deadly opioids continue to plague far too many American communities because the unscrupulous dealers believe their surreptitious online activities escape the reach of law enforcement. The arrests of these two defendants prove that notion false. HSI and our partners are proud to be at the forefront of combating illegal activities on the Darknet.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Fentanyl is a societal scourge powerful enough to rob the lives of those who use in an instant. Today's arrest of this father and son should serve as a strong reminder the anonymity of the 'Dark Web' can't always protect you from the long arm of the law. Postal Inspectors and their law enforcement partners are committed to rooting out those who choose to deal in this deadly opioid.”
According to the allegations contained in the Complaint[1] charging the LUCIANOs:
From at least in or about February 2016 through July 2017, MICHAEL LUCIANO and PHILIP LUCIANO conspired to distribute, and possess with the intent to distribute, fentanyl and oxycodone. They sold these narcotics over AlphaBay, using the vendor name “Zane61.” Other AlphaBay users repeatedly provided positive feedback on fentanyl and oxycodone purchased from Zane61, praising Zane61 as follows in one example: “Great stealth, fast shipping, legit product. Perfect 10/10.” In June 2017, HSI officers (acting in an undercover capacity) purchased fentanyl from Zane61 on AlphaBay, which Zane61 shipped to an address in the Bronx.
In July 2017, HSI agents executed a search warrant at the LUCIANOs’ home in Staten Island (the “Staten Island Residence”), where Zane61 had received shipments of fentanyl purchased on AlphaBay. While executing that warrant, agents spoke with MICHAEL LUCIANO who admitted, among other things, that: he and his son PHILIP LUCIANO bought and sold fentanyl over the dark web; they sold drugs on AlphaBay under the name “Zane61”; PHILIP knew how to use the dark web, had set up their dark web account, had handled the technological aspects of their transactions, and had purchased bitcoins; PHILIP told MICHAEL about orders they received online, and then MICHAEL took packages (containing narcotics) to a local post office, where he handed them to a postal clerk; and they used a fake return address. A cellphone and an iPad believed to be used by PHILIP LUCIANO were also recovered during the search. These devices contained widespread evidence of drug-dealing, including text messages between the two defendants, text messages referencing their joint drug-dealing operation, photographs of fentanyl patches and oxycodone pills, and websites associated with bitcoins.
* * *
MICHAEL LUCIANO, 58, and PHILIP LUCIANO, 29, both of Staten Island, are each charged with one count of conspiracy to distribute and possess with the intent to distribute two controlled substances – fentanyl and oxycodone. The fentanyl charge – conspiring to distribute and possess with the intent to distribute 40 grams and more of mixtures and substances containing a detectable amount of fentanyl – carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. The oxycodone charge – conspiring to distribute and possess with the intent to distribute a quantity of mixtures and substances containing a detectable amount of oxycodone – carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised HSI for its outstanding work on the investigation. Mr. Kim also thanked the U.S. Postal Inspection Service, U.S. Customs and Border Protection, and the New York City Police Department for their assistance in this investigation. He added that the investigation is continuing.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
FBI Most-Wanted Fugitive Makes Initial Court Appearance for MS-13 MurderRead the Press Release
NEWARK, N.J. – One of the FBI’s Ten Most Wanted Fugitives, who was arrested earlier this month in Virginia, made his initial appearance in federal court in Newark for a gang-related murder, Acting U.S. Attorney William E. Fitzpatrick announced.
In September 2013, Walter Yovany-Gomez, 33, a/k/a “Cholo,” was indicted by a Newark grand jury for murder in aid of racketeering and conspiracy to commit murder in an indictment that named 14 alleged members of Plainfield Locos Salvatrucha (PLS), a New Jersey branch of the Mara Salvatrucha (MS-13) transnational gang. At the time of the federal indictment, Yovany-Gomez was a fugitive.
In April 2017, the FBI placed Yovany-Gomez on its Ten Most Wanted Fugitive List. On August 12, 2017, he was arrested without incident in Woodbridge, Virginia, based on tips received from the public. He made his initial appearance before U.S. Magistrate Judge Michael A. Hammer this afternoon and was remanded without bail.
Between 2014 and 2016, all 13 of the other co-defendants charged in the September 2013 federal indictment were convicted, including eight MS-13 members who were convicted following a 16-week trial that ended in June 2016.
Yovany-Gomez is charged in connection with the murder of Julio Matute. According to the indictment and statements made in court:
On the morning of May 8, 2011, Matute was allegedly murdered by Yovany-Gomez and a conspirator, Cruz Flores, a/k/a “Bruja.” Gomez and Flores allegedly struck Matute in the head with a baseball bat, sliced his throat, and stabbed him in the back 17 times with a screwdriver, allegedly because Matute was suspected of socializing with a rival gang. Flores was found guilty of the murder during the trial described above.
Yovany-Gomez is charged with murder in aid of racketeering, which is punishable by a mandatory sentence of life in prison. The charge is a death penalty-eligible offense subject to a decision by the U.S. Attorney General.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; and special agents of U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Newark Field Office Director John Tsoukaris. He also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace Park, for long, close collaboration on the case. The FBI Washington Field Office’s Violent Crimes Task Force, the Fairfax County Police Department’s Gang Unit, and the Northern Virginia Gang Task Force coordinated the local search and arrest of Yovany-Gomez. He also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland for their assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James Donnelly and Jamari Buxton of the U.S Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Coweta Man Sentenced to 14 Months, $52,000 Restitution for Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JESSE KENT COX, age 35, of Coweta, Oklahoma, was sentenced to 14 months imprisonment, and 3 years of supervised release for WIRE FRAUD, in violation of Title 18, United States Code, Section 1343. He was also ordered to pay restitution in the amount of $52,250.00.
The Indictment alleged that from on or about January 1, 2016, and continuing until on or about March 28, 2016, the defendant, JESSE KENT COX, devised and intended to devise a scheme to defraud, and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises.
The charge arose from an investigation by the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Rob Wallace represented the United States.
Cleveland gang members sentenced to 64 and 14 years in prison for carjackings in Tremont neighborhoodRead the Press Release
Two Cleveland gang members were sentenced to more than 64 and 14 years in prison for their roles in carjackings in the city’s Tremont neighborhood, said U.S. Attorney Justin E. Herdman, FBI Special Agent in Charge Stephen D. Anthony and Cleveland Police Chief Calvin Williams.
Kenneth Jackson, Jr., 20, and Antowine Palmer, 24, were convicted earlier this year of an armed carjacking in July 2015. Jackson was also convicted of carjacking a couple the following day. The jury found Jackson brandished a firearm in both attacks while Palmer used a firearm in the first carjacking.
Jackson was sentenced to more than 64 years in prison by U.S. Chief Judge Patricia A. Gaughan.
Palmer was sentenced to more than 14 years in prison. That sentence will be served after he completes a seven-year prison sentence in state court for felonious assault. He still has a murder trial pending in the Cuyahoga County Court of Common Pleas.
Tervon’tae Taylor, of Cleveland Heights, D’wan Dillard, Jr.,and Calvin Rembert, both of Cleveland, previously pleaded guilty to their roles in carjackings in and around Tremont in the summer of 2015.
According to evidence and testimony introduced in the week-long trial:
Palmer and Jackson were members of the Heartless Felons street gang. They were feuding with a different set of Heartless Felons. The defendants planned to do a drive-by shootings aimed at members of the rival group, so they went to Tremont to steal a car so they would be unrecognizable during the drive-by shooting.
Palmer, Jackson, Taylor and Rembert saw a man loading a GMC Denali in the early morning hours of July 25, 2015. They held a loaded gun to the victim’s head, pistol-whipped him and stole his vehicle, his wallet and his cellular phone. The defendants used his credit cards to make purchases at a Wal Mart.
Jackson was involved in additional carjacking the following day when he pointed a loaded firearm at a couple in Tremont.
Dillard was sentenced to more than 16 years in prison. Rembert was sentenced to nearly six years in prison. Taylor is scheduled to be sentenced on Sept. 12 and faces a guideline range of up to 40 years in prison.
“These defendants preyed on innocent people who were simply working, trying to make a living, or otherwise enjoying our city,” Herdman said. “As the judge noted during the hearing, people who terrorize a neighborhood will be held accountable for their actions.”
“These men terrorized victims and the city with their dangerous, gun-wielding car thefts,” Anthony said. “The Violent Crime Task Force and our local partners are committed to aggressively investigate predators who choose to engage in heinous acts of violence against our citizens.”
“The Cleveland Division of Police will continue to work to keep our neighborhoods safe for all who live, work and play in our city,” Williams said. “These sentences send a strong message to gang members that their violence will not be tolerated.”
This case is being prosecuted by Assistant U.S. Attorneys Kelly Galvin and Robert J. Patton following an investigation by the Federal Bureau of Investigation and Cleveland Division of Police.
Career Offender Sentenced to over 15 Years for Drug TraffickingRead the Press Release
PITTSBURGH – On Monday, August 21, 2017, a resident of McKeesport, Pennsylvania, was sentenced in federal court to 188 months (15 years, 8 months) incarceration and four years supervised release on his conviction of violating the federal narcotic laws, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Edward Hicks, age 31.
According to information presented to the court, from in and around October 2012, and continuing thereafter to in and around November 2012, Hicks and others conspired to distribute and to possess with intent to distribute twenty-eight grams or more of crack cocaine. In addition, on November 6, 2012, and again on November 15, 2012, Hicks sold multiple ounces of crack cocaine to a confidential informant who was working with the Drug Enforcement Administration. Hicks has a prior state court felony drug-trafficking conviction, as well as a prior state court robbery conviction. As a result, he was classified as a “career offender” and subject to a much higher sentencing guidelines range.
During the sentencing hearing, Judge Ambrose rejected Hicks’ request for a downward departure and/or a variance from the career offender sentencing guidelines range, specifically noting that Hicks had served 8 years in jail for his prior convictions, and yet quickly returned to criminal conduct following his release from incarceration. Hicks was on state parole when he committed this federal offense.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration and the West Homestead Police Department for the investigation leading to the successful prosecution of Hicks.
Broken Arrow Man Pleads Guilty to Witness TamperingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that STEPHEN LESTER GREER, age 57, of Broken Arrow, Oklahoma was arraigned and plead guilty to the charge in the indictment returned by the Grand Jury on August 16, 2017.
Defendant, STEPHEN LESTER GREER, was charged with TAMPERING WITH A WITNESS, VICTIM, OR INFORMANT, in violation of Title 18, United States Code, Section 1512.
This case is the result of an investigation by the Veterans Affairs – Office of Inspector General.
Acting United States Attorney Douglas A. Horn stated “Dr. Greer was a staff psychiatrist at the VA Hospital in Muskogee, Oklahoma. His job was to treat and protect our veterans who visited that facility for medical care. Instead, Dr. Greer violated his oath as a doctor by having inappropriate sexual contact with a female veteran that he was treating. When VA hospital administrators discovered the impropriety, Greer attempted to cover-up his actions by coaching the female veteran to lie to federal law enforcement officers. Special agents of the Veterans Affairs – Office of Inspector General conducted a thorough investigation and worked extensively and professionally with the victim to bring Dr. Greer to justice.”
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant was released on a $10,000.00 unsecured bond.
The statutory range of punishment for Tampering with a Witness, Victim or Informant is up to 20 years imprisonment and a $250,000 fine.
Acting United States Attorney Douglas Horn and Assistant United States Attorney Kristin Harrington represented the United States.
Blood Gang Member Sentenced to 85 Months for Possession of Fully Automatic Firearm and Reckless Endangerment During Flight from Law EnforcementRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Jacquel Sumter, age 23, of Columbia, was sentenced today in federal court in Columbia, South Carolina, after pleading guilty to felon in possession of a firearm and possession of a firearm with an obliterated serial number. United States District Judge Mary G. Lewis, of Columbia, sentenced Sumter to 85 months incarceration, followed by three years of supervised release.
Evidence presented at the change of plea hearing and sentencing hearing established that on January 21, 2017, Deputies with the Kershaw County Sheriff’s Office observed a blue Honda CRV traveling at approximately 105 miles per hour near mile marker 100 on Interstate 20 in Kershaw County. When Deputies initiated their blue lights and sirens, the driver, later identified as Sumter, accelerated and attempted to flee. The chase continued for approximately 10 minutes with Sumter weaving in and out of traffic at speeds in excess of 120 miles per hour. After Sumter entered Richland County, he began to slow down and drift towards a barrier wall on Interstate 20. As the vehicle slowed, Sumter and the other four occupants of the vehicle jumped out and attempted to run into the wood line. After a short foot chase and a brief resistance, Deputies detained Sumter.
When Deputies searched the CRV they located a fully automatic Intratec Model Tec 9, nine millimeter pistol with an obliterated serial number between the driver’s seat and center console. The firearm was loaded with 14 rounds of nine millimeter CBC ammunition. A records check for Sumter revealed he was convicted of Assault and Battery of a High and Aggravated Nature on December 13, 2016. This offense carries a term of imprisonment exceeding one year and prohibited Sumter from possessing firearms and ammunition. According to Sumter’s rap sheet he is a known documented Bloods Gang member.
Following Sumter’s arrest, he was placed in a Kershaw County Sheriff’s Office patrol vehicle and advised of his Miranda rights. After Sumter waived his rights, he agreed to talk and indicated he jumped out and ran when he saw the blue lights. He claimed he was sleeping during the police chase and did not know who was driving the vehicle. Deputies determined that the CRV was stolen out of Richland County and while searching the vehicle Deputies also found various electronics, a safe, burglary tools, and male clothing (a pair of red and black pants).
During the sentencing hearing, AUSA J.D. Rowell noted that Sumter had been arrested and convicted of various crimes a total of 13 times between 2004 and 2017. Despite numerous state arrests for charges including burglary, simple assault and battery, disturbing schools, possession of marijuana, carrying a concealed weapon, petit larceny, trespassing, and assault and battery of a high and aggravated nature (ABHAN), Sumter has never served a significant custodial sentence. On December 13, 2016, Sumter pled guilty to ABHAN in Richland County General Sessions Court and received a sentence of 15 months imprisonment with credit for time served. Thirty-nine (39) days after being sentenced to state prison, he fled from Kershaw County Deputies in a high-speed chase at speeds of over 120 mph, while armed with a fully automatic Tech 9 assault pistol.
As part of their investigation, ATF Agents searched Sumter’s public Facebook page and found numerous photographs of Sumter possessing firearms. At the time of his arrest, Sumter’s profile picture depicted Sumter wearing a mask, holding the Tech 9 assault pistol, and wearing the same red pants that were located in the back of the stolen CRV he was driving on January 21, 2017.
Other photographs presented at sentencing show Sumter possessing numerous firearms including some while appearing to use marijuana.
The case was investigated by the Kershaw County Sheriff’s Office, the Columbia Police Department, and agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney JD Rowell of the Columbia office prosecuted the case.
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Birmingham Man Pleads Guilty to Selling Heroin that Killed Cullman Man, Injured AnotherRead the Press Release
BIRMINGHAM – A Birmingham man pled guilty today in federal court to selling heroin last year that caused the death of one person and seriously injured another, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
MICHAEL DEWAYNE “Big Boi” JOHNSON, 32, appeared before U.S. District Court Judge Madeline Hughes Haikala and pled guilty to one count of distributing heroin in Jefferson County on July 28, 2016, and that a 31-year-old Cullman man died as a result of using that heroin. Johnson also pled guilty to distributing heroin that day that caused serious bodily injury to a then 18-year-old Cullman man who overdosed from using the drug. Johnson pled guilty to one count of distributing heroin in Jefferson County on Aug. 3, 2016. Johnson is scheduled for sentencing Dec. 13.
“The opioid epidemic continues to cause overdose deaths and near deaths in our communities,” Town said. “This guilty plea today sends a very loud message that if you are dealing in heroin or fentanyl, we are coming for you and will bring you to justice. Enforcement of drug-trafficking laws is a top priority of the Department of Justice and we are working in partnership with federal, state, and local law enforcement to bring the most serious available charges against the most dangerous drug dealers.”
“Heroin-related overdoses are becoming a national epidemic, including here in Birmingham, as people addicted to prescription pills become desperate to feed their addictions,” Hamilton said. “DEA and our law enforcement partners will continue to make it a priority to ban together to identify and investigate those who distribute drugs that result in overdose and death. This case should send a message to anyone who would illegally distribute drugs that behind every overdose, law enforcement is looking for the drug dealer responsible.”
The penalty for distributing heroin that causes death or serious bodily injury is 20 years to life in prison and a maximum $2 million fine. The maximum penalty for distributing heroin is 20 years in prison and a $1 million fine.
DEA investigated the case, which the U.S. Attorney’s Office for the Northern District of Alabama is prosecuting.
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Berkeley County man admits to possessing child pornographyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Wesley Chalk, of Inwood, West Virginia, pled guilty today to possession of child pornography, Acting United States Attorney Betsy Steinfeld Jividen announced.
Chalk, age 41, pled guilty to one count of “Possession of Child Pornography.” Chalk admitted to having in his possession child pornography depicting a prepubescent minor and a minor under the age of 12. The crime occurred in August 2016 in Berkeley County.
Chalk faces up to twenty years and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The U.S. Department of Homeland Security investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Beckley area physician sentenced to 20 years in federal prison for oxycodone crimeRead the Press Release
BECKLEY, W.Va. – A Beckley area physician was sentenced today to 20 years in federal prison and ordered to pay a fine of $50,000 for a drug crime, announced United States Attorney Carol Casto. Dr. Michael Kostenko, D.O., 61, of Daniels, previously pleaded guilty to distribution of oxycodone not for legitimate medical purposes and beyond the bounds of medical practice. Kostenko entered his guilty plea in April after a day-and-a-half of jury trial in federal court in Beckley on a 22-count indictment. The trial ended with Kostenko’s guilty plea, and the crime he pleaded to is contained in Count Seven of the Superseding Indictment.
Kostenko admitted that he owned and operated the Coal Country Clinic, a medical practice located in his Raleigh County residence. Kostenko also admitted that on December 9, 2013, he distributed oxycodone, a powerful pain medication, not for legitimate medical purposes. Specifically, Kostenko admitted that on that day, approximately 271 patients arrived at Kostenko’s residence seeking oxycodone prescriptions. Kostenko additionally admitted that his staff collected over $20,000 cash from the patients that he later deposited in a local bank in amounts of less than $10,000. Kostenko further admitted that on that day he wrote over 370 oxycodone prescriptions totaling 22,255 pain pills. Moreover, Kostenko admitted that he wrote these prescriptions from his upstairs bedroom, without seeing any of the patients, and that his staff handed out the prescriptions. Finally, Kostenko admitted that by writing the oxycodone prescriptions, he acted beyond the bounds of professional medical practice.
“This case should send a clear message to drug dealers that we will pursue them regardless of their education and status in the community. As a physician, Dr. Kostenko held a position of trust in the community. Instead of honoring his oath to do no harm, he contributed to the greatest public health crisis of our generation – opioid abuse. Sixteen patients died from overdoses on his watch, but clearly not under his care,” said United States Attorney Carol Casto. “Drug dealers should be aware that we are committed to using every tool in our arsenal to battle the opioid crisis, and the prosecution of health care providers who contribute to the problem will no longer be the exception, but the norm.”
“The West Virginia Department of Health and Human Resources (DHHR) is pleased with the success of the United States Attorney’s Office in holding Michael Kostenko responsible for his actions,” said DHHR Secretary Bill J. Crouch. “Employees of the Office of Health Facility Licensure and Certification worked diligently to close the illegal pain clinic operated by Kostenko, and today’s result brings those efforts full circle.”
The investigation of Kostenko and his Coal Country Clinic was led by the West Virginia State Police, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Office of Inspector General, United States Department of Health and Human Services, and West Virginia DHHR’s Office of Health Facility Licensure and Certification. United States District Judge Irene C. Berger imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Bangor Man Pleads Guilty to Sexual Exploitation of Children and Possession of Child PornographyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Jeffrey Swimm, 38, of Bangor, pled guilty today in U.S. District Court to sexual exploitation of children and possession of child pornography.
According to court records, between about October 2012 and April 2017, Swimm produced still-image and video files depicting child pornography, some of which were produced using a camera hidden in the defendant’s bathroom. In addition, the defendant possessed other images and videos of child pornography depicting children under the age of 12 which he solicited and received over the internet.
Swimm faces between 15 to 30 years in prison for child exploitation and up to 20 years in prison for possessing child pornography. He also faces up to a $250,000 fine on each count and between five years and life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Bangor Police Department, and the Penobscot County Sheriff’s Office.
Ambler Man Charged with Defrauding FHARead the Press Release
Eugene Peter Kenworthy, Jr., age 50, of Ambler, PA, was charged today by Indictment with wire fraud, false statements for the purpose of influencing the Federal Housing Administration, aggravated identity theft, and failure to file a tax return, announced Acting United States Attorney Louis Lappen.
If convicted the defendant faces a maximum possible sentence is 166 years’ imprisonment, five years of supervised release, a $5,050,000 fine, and a $1,000 special assessment
The case was investigated by the United States Department of Housing and Urban Development - Office of Inspector General and the Internal Revenue Service - Criminal Investigation, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alien Smuggling Ring DismantledRead the Press Release
BROWNSVILLE, Texas – With the sentencing of the final defendant today, 11 members of a smuggling group that operated throughout the Rio Grande Valley have all been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez.
Manuela Cedillo-Hernandez, 59, of La Feria, was the leader and organizer of the ring. She and her husband - Javier Aranda Velez, 51 - harbored aliens who had entered the United States unlawfully and conspired to transport them farther north into the nation’s interior. Cedillo-Hernandez employed associates in the alien smuggling scheme including her own children.
The investigation into the Cedillo-Hernandez alien smuggling organization began in March 2016. By July 2016, the investigation had revealed an extensive operation including five properties across south Texas involving the smuggling of at least 39 aliens within a few short months.
Cedillo-Hernandez was previously sentenced to 37 months in federal prison. Her home was also seized by federal authorities. The others convicted in the scheme included Francisca Torres, 54, Landsie Rubi Leija, 28, Christopher Ray Vega, 31, and William Adam Leija, 26,all of La Feria; Raquel Flores-Cedillo, 37, and Rogelio Gonzalez, 41, both of Brownsville; Guadalupe Iracheta Obregon, 41,and Bobby Joe Canales, 38, both of Alton; and Jorge Vidales, 39, of Harlingen. The final defendant - Flores Cedillo - was sentenced today to 16 months in prison. The remaining defendants were previously sentenced to a variety of terms up to 37 months imprisonment.
Immigration and Custom's Enforcement's Homeland Security Investigations conducted the four-month investigation with assistance from Enforcement Removal Operations, U.S. Marshals Service, Border Patrol, the State Department’s Diplomatic Security Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Cameron County District Attorney’s Office, Cameron County Sheriff’s Office and police departments in Brownsville, Harlingen and Mission. Assistant U.S. Attorney Jason Corley and Assistant U.S. Attorney Vince Carroll prosecuted the case.
Acting Manhattan U.S. Attorney Announces $13.4 Million Settlement of Civil Healthcare Fraud Lawsuit Against US Bioservices Corp.Read the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the New York Region (“HHS-OIG”), announced that the United States has settled a civil fraud case against US BIOSERVICES CORP. (“US BIO”) pursuant to which US BIO will pay a total of $13.4 million. The settlement resolves claims that US BIO violated the Anti-Kickback Statute and the False Claims Act by participating in a kickback scheme with Novartis PharmaceuticalS Corp. (“Novartis”) relating to the NOVARTIS drug Exjade. Specifically, the United States’ Complaint alleges that US BIO and NOVARTIS entered into a kickback arrangement pursuant to which US BIO was promised additional patient referrals and related benefits in return for refilling a higher percentage of Exjade than the two other pharmacies that also dispensed Exjade. The settlement will also resolve numerous state law civil fraud claims.
Yesterday, Chief U.S. District Judge Colleen McMahon approved a settlement stipulation to resolve the Government’s claims against US BIO. Under the settlement, US BIO is required to pay approximately $10.6 million to the United States and has made extensive admissions regarding its conduct. Further, as part of the settlement, US BIO will pay approximately $2.8 million to resolve the state law civil fraud claims. In prior lawsuits, the Government sued NOVARTIS and the two other pharmacies that participated in this same Exjade kickback scheme. The Government settled those lawsuits, pursuant to which NOVARTIS paid $390 million, the two other pharmacies paid $75 million, and NOVARTIS and the pharmacies made extensive admissions regarding their conduct.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The integrity of the federal healthcare system requires that all providers, including pharmacies like US Bioservices, refrain from entering into kickback relationships. When healthcare providers accept kickbacks, they violate the law, subject what should be health-based decision-making to the influence of profit-seeking drug manufacturers, and thereby put their own financial interests ahead of the interests of their patients. This Office will continue to use its law enforcement tools to pursue healthcare providers who accept kickbacks or otherwise put their profits ahead of patient safety.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “The conduct displayed by US Bioservices compromised patient care and undermined the integrity of our nation’s health care programs. This settlement should serve as a warning to all providers that choose to let financial inducements cloud their medical judgment.”
As alleged in the Government’s Complaint, US BIO participated in a kickback scheme with NOVARTIS that violated the federal Anti-Kickback Statute and the False Claims Act. In connection with this scheme, US BIO submitted claims for thousands of Exjade prescriptions to Medicare and Medicaid, causing those programs to pay out millions of dollars for false claims tainted by kickbacks. As part of the settlement, US BIO admitted as follows:
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In December 2005, US BIO signed a contract with Novartis relating to the distribution of Exjade. Under that contract, Novartis agreed that US BIO would be one of three specialty pharmacies (the “EPASS pharmacies”) permitted to dispense Exjade as part of Novartis’s EPASS network. US BIO, in turn, agreed to provide specialty pharmacy services to Exjade patients, including having clinical staff available to speak with patients and to answer clinical questions or concerns about Exjade.
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In or about June 2007, Novartis began issuing monthly “Exjade Scorecards” to US BIO and the other two EPASS pharmacies that measured, among other things, the pharmacies’ “adherence” scores. The “adherence” score in the Exjade Scorecards showed how long Exjade patients continued to order refills, without excluding patients who stopped ordering refills due to side effects or patients who were directed to stop therapy by their physicians. Starting in or about July 2007, Novartis had discussions with US BIO regarding how US BIO could improve its “adherence” scores in the Exjade Scorecards.
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In late 2007 and early 2008, and to improve its “adherence” score, US BIO trained its nurses to call Exjade patients and tell patients that not treating iron overload, for which Exjade is prescribed, could have severe consequences like organ failure, and that while Exjade had certain common side effects like diarrhea, such side effects typically went away with time. The nurses at US BIO did not use written scripts for the calls with Exjade patients.
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In October 2008, Novartis implemented a new plan for allocating Exjade patient referrals among US BIO and the other EPASS pharmacies. Under that plan, Novartis would allocate 60% of all undesignated patient referrals to the EPASS pharmacy with the top “adherence” scores in the Exjade Scorecards and allocate 20% of the undesignated patient referrals to each of the other two EPASS pharmacies.
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Mr. Kim thanked HHS-OIG and the Medicaid Fraud Control Units for New York, Washington, and California for their investigative efforts and assistance with this case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Li Yu and Mónica P. Folch are in charge of the case.
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Tuesday 22 August 2017
“Family ties” ring leader sentenced in federal courtRead the Press Release
Sold hundreds of kilograms of heroin and cocaine in Indianapolis area
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced to 360 months (30 years) imprisonment for his role in selling large quantities of narcotics in Indianapolis neighborhoods. Geraldo Colon, 48, was sentenced by U.S. District Judge Jane Magnus-Stinson after being convicted at a jury trial in April 2017, of drug distribution, money laundering and bankruptcy fraud charges.
“The goal of this office is to make the Southern District of Indiana the worst place in America to sell drugs,” said Minkler. “That is accomplished by investigations like this in which drug dealers are detained without bond, convicted at trial and sent to federal prison for a very long time.”
In May 2014, law enforcement officials learned that large quantities of narcotics were being shipped to the Indianapolis area from Phoenix, Arizona. The drugs were being shipped to a location on Bomar Lane in Greenwood, Indiana. From there, the drugs were being moved to the Muebleria Luz Furniture Store on the Northwest side of Indianapolis, where Colon then distributed them to various Indianapolis-based drug traffickers.
Law enforcement soon learned that Colon was the ringleader of this drug trafficking organization, which brought hundreds of pounds of heroin, cocaine and methamphetamine to the Indianapolis area. Various search warrants were served during the investigation netting: 24 firearms, over $4.5 million in cash proceeds, along with 9.5 kilograms of heroin, over 21 kilograms of cocaine and 22 kilograms of methamphetamine.
Colon was one of 20 federal defendants charged as part of Operation Family Ties that targeted a well-armed and heavily funded drug trafficking organization. A large portion of the drugs were being distributed in the Northwest side of Indianapolis as well as the Butler-Tarkington Neighborhood. Two other primary distributors in the “Family Ties” investigation have been sentenced. Daniel Stewart was sentenced to life without parole in November 2016 and Wade Havvard was sentenced to 31 years in May 2016.
“The negative impact this organization had on the lives and families of Indianapolis is unmeasurable, yet devastating,” said IMPD Chief Bryan Roach. “I am thankful for the good work and passion all the detectives working in collaboration with our federal partners who continue to pursue these types of crimes and criminals to change lives and make Indianapolis a safer place.”
"The investigation of Colon not only shut down a major source of narcotics to the Indianapolis area, but disrupted the flow of drug proceeds through financial systems,” said Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge. “As shown in this investigation, criminals can expect that IRS special agents will expose illicit financial activity that is concealed within legitimate and fictitious businesses. I am proud of the efforts of this investigation as it demonstrates the tremendous work achieved when law enforcement agencies partner together to protect our communities.”
“Concealing income and assets in a bankruptcy proceeding is a crime,” stated Nancy J. Gargula, United States Trustee for Indiana, Central Illinois and Southern Illinois (Region 10). “We are grateful to all of our law enforcement partners in this case, and in particular to U.S. Attorney Minkler for his commitment to pursuing those who commit bankruptcy fraud and abuse the bankruptcy process for their own personal gain.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill
This case was investigated by the Indianapolis Metropolitan Police Department, Internal Revenue Service-Criminal Investigation, Drug Enforcement Administration, Department of Homeland Security Investigations, and the U.S. Trustee’s Office.
According to Assistant U.S. Attorney Michelle P. Brady who prosecuted this case for the government, Colon must serve five years of supervised release following his lengthy sentence and pay a $5,000 fine.
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United States Files Complaints to Forfeit More Than $11 Million from Companies That Allegedly Laundered Funds to Benefit Sanctioned North Korean EntitiesRead the Press Release
WASHINGTON – The United States filed two complaints today seeking imposition of a civil money laundering penalty and to civilly forfeit more than $11 million from companies that allegedly acted as financial facilitators for North Korea, announced U.S. Attorney Channing D. Phillips, Michael DeLeon, Special Agent in Charge of the FBI’s Phoenix Field Office, and Michael J. Anderson, Special Agent in Charge of the FBI’s Chicago Field Office.
The actions, filed in the U.S. District Court for the District of Columbia, represent two of the largest seizures of North Korean funds by the Department of Justice. One complaint seeks $6,999,925 associated with Velmur Management Pte Ltd., a Singapore-based company. The other seeks $4,083,935 from Dandong Chengtai Trading Co. Ltd., also known as Dandong Zhicheng Metallic Material Co., Ltd., a company in Dandong, China.
The lawsuits follow a similar complaint, filed in June 2017, seeking more than $1.9 million from Mingzheng International Trading Limited, a company based in Shenyang, China.
The complaints allege that the companies have participated in schemes to launder U.S. dollars on behalf of sanctioned North Korean entities. According to the complaints, the companies participated in financial transactions in violation of the International Emergency Economic Powers Act (IEEPA), the North Korean Sanctions and Policy Enhancement Act of 2016, and federal conspiracy and money laundering statutes. Today’s complaints are the first filed actions based on the 2016 North Korean Sanctions and Policy Enhancement Act.
“These complaints show our determination to stop North Korean sanctioned banks and their foreign financial facilitators from aiding North Korea in illegally accessing the United States financial system to obtain goods and services in the global market place,” said U.S. Attorney Phillips. “According to the complaints, these front companies are supporting sanctioned North Korean entities, including North Korean military and North Korean weapons programs. Working with our law enforcement partners, we will vigorously enforce vital sanctions laws.”
“The complaints allege that these companies are assisting North Korea in evading sanctions, which is in direct conflict with our national security interests,” said Special Agent in Charge DeLeon, of the FBI’s Phoenix Field Division. “We will continue to use the necessary resources to expose these types of actions and investigate those who utilize the U.S. banking systems for illegal activities.”
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U.S. v. Velmur Management Pte., Ltd. (Velmur) and Transatlantic Partners Pte. Ltd. (Transatlantic)
This complaint alleges that Velmur and Transatlantic Partners Pte. Ltd. (Transatlantic) laundered United States dollars on behalf of sanctioned North Korean banks that were seeking to procure petroleum products from JSC Independent Petroleum Company (IPC), a designated entity. The complaint also seeks a civil monetary penalty against Velmur and Transatlantic for prior sanctions and money laundering violations related to this scheme.
According to the complaint, designated North Korean banks use front companies, including Transatlantic, to make U.S. dollar payments to Velmur. The complaint relates to funds that were transferred through four different companies and remitted to Velmur to wire funds to JSC Independent Petroleum Company (IPC), a Russian petroleum products supplier. On June 1, 2017, the Department of the Treasury’s Office of Foreign Asset Controls (OFAC) designated IPC. The designation noted that IPC had a contract to provide oil to North Korea and reportedly shipped over $1 million worth of petroleum products to North Korea.
The United Nations Panel of Experts reported in 2017 on the methods used by North Korean banks to evade sanctions and continue to access the international banking system. Specifically, despite strengthened financial sanctions, North Korean networks are adapting by using greater ingenuity in accessing formal banking channels. This includes maintaining correspondent bank accounts and representative offices abroad which are staffed by foreign nationals making use of front companies. These broad interwoven networks allow the North Korean banks to conduct illicit procurement and banking activity.
An FBI investigation revealed that Velmur’s and Transatlantic’s activities mirror this money laundering paradigm. Specifically, companies identified in the complaint and Transatlantic act as front companies for designated North Korean banks.
The government is seeking to forfeit $6,999,925 that was wired to Velmur in May 2017. The U.S. dollar payments, which cleared through the U.S., are alleged to violate U.S. law, because the entities were surreptitiously making them on behalf of the designated North Korean Banks, whose designation precluded such U.S. dollar transactions. The government also is seeking imposition of a monetary penalty commensurate with the millions of dollars allegedly laundered by Velmur and Transatlantic.
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U.S. v. Dandong Chengtai Trading Co., Ltd. (Dandong Chengtai), also known as Dandong Zhicheng Metallic Material Co., Ltd.
This complaint alleges that Dandong Chengtai and associated front companies controlled by Chi Yupeng, a Chinese national, comprise one of the largest financial facilitators for North Korea. According to the complaint, Dandong Chengtai conspired to evade U.S. economic sanctions by facilitating prohibited U.S. dollar transactions through the United States on behalf of the North Korean Workers’ Party, a sanctioned entity.
The complaint further alleges that the North Korean government relies on exports of coal as its primary means of obtaining access to foreign currency, and that the North Korean military controls the amount of coal produced and its subsequent export. The North Korean government uses proceeds of coal sales to fund its weapons of mass destruction program and missile programs. Coal generates more than $1 billion in revenue per year for North Korea. The investigation revealed that Dandong Chengtai is one of the largest importers of North Korean coal in China, and has continued to engage in illicit U.S. dollar transactions related to its coal sales to benefit North Korea.
The complaint alleges that Dandong Chengtai facilitated wire transfers denominated in U.S. dollars for purchases of goods that are well outside the scope of a mineral trading company. Financial records reveal that purchases of bulk commodities such as sugar, rubber, petroleum products, and soybean oil, among others, were in fact destined for North Korea.
As reported in findings by the Treasury Department and the United Nations Panel of Experts, North Korean financial facilitators frequently establish and maintain offshore U.S. dollar accounts for the purposes of remitting wire transfers denominated in U.S. dollars on behalf of sanctioned North Korean entities. These broad interwoven networks allow sanctioned North Korean entities to conduct illicit procurement and banking activity.
The government is seeking to forfeit $4,083,935 that Dandong Chengtai wired on June 21, 2017 to Maison Trading, using their Chinese bank accounts. The investigation revealed that Maison Trading is a front company operated by a Dandong Chengtai employee. These U.S. dollar payments, which cleared through the United States, are alleged to violate U.S. law, because the recent North Korean sanctions law specifically barred U.S. dollar transactions involving North Korean coal and the proceeds of these transactions were for the benefit of the North Korea Worker’s Party, whose designation precluded such U.S. dollar transactions.
This case relates to a previously unsealed opinion from Chief Judge Beryl A. Howell of the U.S. District Court for the District of Columbia, which found that probable cause existed to seize funds belonging to Dandong Chengtai.
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The claims made in the complaints are only allegations and do not constitute a determination of liability.
The FBI’s Phoenix Field Office is investigating the case involving Velmur Management Pte Ltd. and Transatlantic Partners Pte., Ltd. The FBI’s Chicago Field Office is investigating the case involving Dandong Chengtai Trading Co. Ltd. Both investigations are being supported by the FBI Counterproliferation Center.
Assistant U.S Attorneys Arvind K. Lal, Zia M. Faruqui, Christopher B. Brown, Deborah Curtis, Ari Redbord, and Brian P. Hudak, all of the U.S. Attorney’s Office for the District of Columbia, are prosecuting both cases. Paralegal Specialist Toni Anne Donato and Legal Assistant Jessica McCormick are providing assistance.
dandong_chengtai_trading_-_complaint_-_august_2017.pdf velmur_management_-_complaint_-_august_2017_4.pdfU.S. Postal Service Employee Sentenced for Lying About Cancer in Order to Take Sick LeaveRead the Press Release
DENVER – Caroline Zarate Boyle, age 60, of Highlands Ranch, Colorado, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 5 years’ probation with the first 6 months in home confinement including wearing an electronic monitor. She was also ordered to pay a $10,000 fine and spend 652 hours doing community service to be served at a cancer treatment center, cancer research center or hospice. Finally, she was ordered to pay $20,798.38 in restitution to the U.S. Postal Service, Acting U.S. Attorney Bob Troyer and Executive Special Agent in Charge of the U.S. Postal Service Office of the Inspector General announced.
Boyle was first charged by Criminal Complaint on March 3, 2017. She was indicted by a federal grand jury in Denver on March 16, 2017. She pled guilty to the indictment as charged without a plea agreement on April 28, 2017. She was sentenced by Judge Moore today, August 22, 2017.
According to the Factual Basis for Change of Plea stipulated by both parties, Boyle was an employee of the U.S. Postal Service. In the summer of 2015, after she was not selected for a promotion, Boyle decided to take some time off work by pretending to have cancer. She communicated to her supervisor that she was recently diagnosed with non-Hodgkins lymphoma. She then began taking substantial amounts of sick leave, despite the fact that Boyle did not have non-Hodgkins lymphoma, nor did she have any other sort of cancer or serious illness that necessitated the sick leave she was taking.
Boyle continued the ruse until she was caught following an interviewed by an agent of the Postal Service’s Office of the Inspector General on February 28, 2017. In the approximately twenty months that Boyle’s fraud lasted, she used her non-existent cancer treatment to support both unwarranted sick leave and unwarranted accommodations allowing her to work part-time or work from home. Boyle was to continue this fraud until her scheduled retirement in April 2017. Despite claiming that cancer treatment had made her too sick to work or come to the office, she was planning a post-retirement cruise to Hawaii.
During the course of the investigation it was determined that Boyle e-mailed her supervisor notes from two different doctors indicating that she was receiving cancer treatment. However, the notes were created by Boyle as she was not a patient of either doctor.
Additional evidence at sentencing showed that, prior to faking cancer herself, Boyle had falsely accused a subordinate of faking cancer and denied her certain accommodations which that employee had requested due to her sickness. In contrast, Boyle was often granted paid administrative leave (not charged to her sick leave balance) and allowed to work from home up to five days a week based on her fraudulent illness.
Executive Special Agent in Charge Scott Pierce said, “The American public trusts that U.S. Postal Service employees will obey the law. When an employee of the Postal Service violates that trust, the U.S. Postal Service Office of Inspector General (USPS OIG) thoroughly investigates those matters. This type of behavior within the Postal Service is not tolerated and the overwhelming majority of Postal Service employees, which serve the public, are honest, hardworking, and trustworthy individuals who would never consider engaging in any type of criminal behavior. The USPS OIG and U.S. Attorney’s Office remain committed to holding accountable anyone responsible for such violations.”
This case was investigated by the U.S. Postal Service Office of the Inspector General. The case was prosecuted by Special Assistant United States Attorney Dan Burrows.
Two defendants plead guilty to child pornography crimesRead the Press Release
CHARLESTON, W.Va. – Two defendants pleaded guilty yesterday to child pornography crimes, announced United States Attorney Carol Casto. Steven Lee Rhodes, 39, of Clendenin, pleaded guilty to receiving child pornography. In a separate prosecution, Kenneth Frederick Stier, 29, of Spencer, entered his guilty plea to distributing child pornography.
Rhodes admitted that on June 4, 2015, he received a video of a prepubescent minor engaged in sex acts. The video was received on Rhodes’ computer, which was located at his residence in Clendenin. The investigation revealed that Rhodes was using a peer-to-peer file sharing program to download, receive, and distribute child pornography images and videos. Rhodes admitted that he possessed over 600 images and videos of minors engaged in sex acts.
In a separate prosecution, Stier admitted that on December 13, 2016, he distributed two videos of prepubescent minors engaged in sex acts. An undercover law enforcement operation revealed that Stier distributed the videos using a messenger application on his cell phone. Stier also admitted to distributing child pornography videos on another occasion, and to possessing over 600 images and videos depicting child pornography.
Rhodes and Stier both face at least five and up to 20 years in federal prison when they are sentenced, as well as a term of federal supervised release of at least five years and up to life. Rhodes is scheduled to be sentenced on November 14, 2017. Stier is scheduled for sentencing on November 13, 2017. Upon release from federal prison, both Rhodes and Stier will be required to register as sex offenders.
“The penalties for endangering children with sexual predatory behavior are significant, and those who abuse the most vulnerable will pay a heavy price,” said United States Attorney Carol Casto. “We will continue working with our law enforcement partners to aggressively prosecute those who exploit the children of our communities.”
The Federal Bureau of Investigation, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Parkersburg Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigations. The Roane County Sheriff’s Office also investigated the Stier case. Assistant United States Attorney Lisa G. Johnston is in charge of these prosecutions.
The plea hearing for Rhodes was held before United States District Judge John T. Copenhaver, Jr. The plea hearing for Stier was held before United States District Judge Joseph R. Goodwin.
These cases were brought 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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Two Texas Men Plead Guilty to Federal Hate Crime for Assaults Based on Victim’s Sexual OrientationRead the Press Release
Nigel Garrett, 21, and Cameron Ajiduah, 18, pleaded guilty today to assaulting men because of the victim’s sexual orientation, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the plea agreement signed by Garrett on January 19, 2017, defendants Garrett, Anthony Shelton and Chancler Encalade used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and stole the victim’s property, including his motor vehicle.
Included in a separate plea agreement signed by Ajiduah on February 7, 2017, defendants Ajiduah, Garrett, and Shelton used the same scheme on a different victim, including restraining the victim and covering his eyes with tape, verbally berating him for his sexual orientaion, and physically assaulting him.
A federal grand jury previously returned an eighteen-count indictment against Ajiduah, Shelton, Garrett, and Chancler Encalade including charges of hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged the defendants with conspiring to cause bodily injury because of the victim’s sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, between January 17 and February 7, 2017.
“The Justice Department will not tolerate hate crimes against any individual based on sexual orientation,” said Acting Assistant Attorney General John Gore. “Hate crimes are violent crimes, but also attack the fundamental principles of the United States. The Justice Department will continue to aggressively investigate and prosecute hate crimes.”
"Garrett and Ajiduah invaded homes, robbed and assaulted their victims, and particularly horrendous, targeted their victims based on the victim’s sexual orientation,” said Acting U.S. Attorney Brit Featherston. “In response to such a hate crime, let it be known that law enforcement will leave no stone unturned to catch and prosecute the likes of these criminals to the fullest extent of the law."
Garrett and Ajiduah face a maximum statutory penalty of life in prison and a $250,000 fine for their guilty plea for the hate crime charge.
The investigation is being conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Two Maryland men indicted on bank fraud chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Baltimore, Maryland men were indicted by a federal grand jury on August 9, 2017 sitting in Wheeling on bank fraud charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Steven Allen Baldwin, Jr., age 34, was indicted on one count of “Conspiracy to Commit Bank Fraud” and three counts of “Bank Fraud.”
Tyrone Baldwin, age 31, was indicted on one count of “Conspiracy to Commit Bank Fraud” and three counts of Bank Fraud.”
Both are accused of stealing checks from mailboxes, creating counterfeit checks, and cashing those counterfeit checks. The crimes are alleged to have taken place in April 2016 in Berkeley and Jefferson Counties, West Virginia.
It is alleged that more than $9,000 was taken in this case. The government is seeking to forfeit the amount of alleged proceeds in this case.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The United States Postal Inspection Service is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Grant County residents admit to heroin distributionRead the Press Release
ELKINS, WEST VIRGINIA – A Grant County man and woman pled guilty today to heroin distribution charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Cody Zane Stevenson, age 24, pled guilty to a one count information, charging him with “Distribution of Heroin - Aiding and Abetting.” Stevenson admitted to distributing heroin in May 2016 in Grant County, West Virginia.
Amanda Lynn Bow, 22, pled guilty to a one count information, charging him with “Distribution of Heroin - Aiding and Abetting.” Bow admitted to distributing heroin in May 2016 in Grant County, West Virginia.
Stevenson and Bow each face 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 Sarah W. Montoro prosecuted the cases on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Tuskegee Man Sentenced to Life Plus 282 Years in Federal Prison for Multiple Armed Robberies and CarjackingRead the Press Release
Montgomery, Alabama—Today, Tariq Khalil Jones, 35, of Tuskegee, Alabama, was sentenced to life in federal prison plus 282 years for committing numerous armed robberies and a carjacking, announced A. Clark Morris, Acting U.S. Attorney for the Middle District of Alabama.
His crime spree began on January 16, 2016, and ended May 4, 2016, and included the following ten businesses:
• Dollar General on Notasulga Road in Tallassee, Alabama;
• Tiger Spirits on Webster Road, in Auburn, Alabama;
• Chevron Store 10 on West Longleaf Drive in Auburn, Alabama;
• QuikTrip convenience store on East Highway 34 in Newnan, Georgia;
• Marathon Service Station on Lafayette Parkway in LaGrange, Georgia;
• Wing N’ Burger Factory on Hogansville Road in LaGrange, Georgia;
• Papa John’s restaurant on South Memorial Drive in Prattville, Alabama;
• Family Dollar on 2nd Avenue in Opelika, Alabama;
• Family Dollar on Broadnax Street in Dadeville, Alabama; and
• Dollar General on County Road 89 in Camp Hill, Alabama.
Jones used a firearm during each of the crimes and while fleeing one of them, he shot at a vehicle with a father and his 3-year old daughter inside. Luckily, neither were harmed. After another robbery, he carjacked a vehicle from a woman in the store’s parking lot.
The sentences were handed down after his June 2017 trial where a jury found Jones guilty on each of the twenty-three counts in his indictment. Eleven of the counts carried a mandatory life sentence and included the ten robberies and carjacking. Twelve counts were for using a firearm during the robberies, carjacking, and shooting. The first of the firearms counts resulted in a 7-year sentence. For the remaining eleven firearms counts, he was sentenced to 25 years each. The 7 year and 25 year sentences run consecutive to each other for a total of 282 years. The 282 years run consecutive to his life sentences. There is no parole in the federal system.
The life sentences for Jones were triggered due to his four previous robbery convictions in state court. Federal law imposes a mandatory life sentence if the defendant is convicted in federal court of a serious violent felony, and has two or more previous convictions for serious violent felonies.
“Tariq Jones terrified innocent people by putting a gun in their faces and demanding money,” stated Acting U.S. Attorney Morris. “He showed no regard for human life when he shot at a vehicle with a father and his 3 year old daughter inside just because he thought he was being followed. He is a violent criminal and I hope this sentence sends a clear message to other offenders that my office will use all of its power and resources to combat violent crime in our communities.”
This case was investigated by the Federal Bureau of Investigation, the Auburn Police Division, the Camp Hill Police Department, the Coweta County Sheriff's Office (Newnan, GA), the Dadeville Police Department, the LaGrange, Georgia Police Department, the Opelika Police Department, the Prattville Police Department, and the Tallassee Police Department. Assistant United States Attorneys John Geer and Brandon Bates prosecuted the case.
Tuscaloosa Man Plead Guilty to Bank RobberyRead the Press Release
BIRMINGHAM –A Tuscaloosa man pleaded guilty today in federal court to robbery of a federally insured bank and taking of hostages during the robbery in the Northern District of Alabama.
U.S. Attorney Jay Town, and FBI Special Agent in Charge, Johnnie Sharp announced the plea.
CEDRICK LAMAR COLLINS, 19, entered his plea before U.S. District Court Judge L. SCOTT COOGLER today to one count of robbery of a federally insured bank, the Alabama Credit Union, in Tuscaloosa, Alabama. Collins also pleaded guilty to a second count of taking hostages during the commission of the bank robbery. The maximum prison penalty for bank robbery is 20 years. The charge of taking a hostage while attempting to flea a bank robbery carries a minimum 10-year prison sentence. The charge of taking someone hostage to force a specific government action carries a maximum penalty of life in prison.
The robbery of Alabama Credit Union occurred on January 17, 2017. The University of Alabama Police Department received a call concerning suspicious activity at the credit union. As SWAT teams from the Tuscaloosa Police Department and Tuscaloosa Sheriff’s Department arrived on the scene, COLLINS had taken a number of bank employees hostage after demanding money. Officers attempted to make entry into the bank and encountered COLLINS in the stairwell with a hostage in front of him. COLLINS threatened to start shooting unless law enforcement moved back. Officers later made entry into the bank and safely secured COLLINS, without any of the hostages being injured. COLLINS’ suspected firearm was determined to be a BB gun.
The Federal Bureau of Investigation investigated the case, which Assistant U.S. Attorney Brad Felton prosecuted.
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Top Executives at Long Island Mortgage Lender Arrested for Engaging in $8.9 Million FraudRead the Press Release
A complaint was unsealed today in federal court in Central Islip, New York, charging Edward E. Bohm, Edward J. Sypher, Jr., and Matthew T. Voss, senior executives at Long Island mortgage lender Vanguard Funding, LLC (Vanguard), with conspiracy to commit wire and bank fraud in connection with their obtaining more than $8.9 million of warehouse loans for Vanguard to fund mortgages. The defendants allegedly misused the loans to pay personal expenses and compensation, as well as to repay earlier fraudulently obtained loans. Bohm, Sypher and Voss were arrested this morning, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Arlene R. Lindsay.
The arrests were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Maria T. Vullo, Superintendent, New York State Department of Financial Services.
“As alleged, the defendants – executives of a mortgage lender – defrauded banks into lending them money by stating that the money would fund new mortgages or refinance existing ones,” stated Acting United States Attorney Rohde. “We will continue to address dishonesty in the mortgage industry whether the victims are financial institutions, investors, or homeowners, as it ultimately hurts all of us as a community.”
“As alleged, the defendants sought short-term loans from financial institutions that served as a repository for lenders,” stated FBI Assistant Director-in-Charge Sweeney. “They then allegedly took the money, which is typically intended for borrowers looking to purchase a home, and used it for their own personal gain. Today’s charges are proof of our continued determination to root out those whose business practices attempt to harm the financial integrity of banks and financial institutions that facilitate homeownership.”“These defendants, for their own gain, allegedly defrauded the financial institutions that provide funding for individuals to buy homes, and they must be held accountable,” said Financial Services Superintendent Vullo. “As the regulator and protector of financial services companies in New York, the Department of Financial Services is proud to have assisted the Acting United States Attorney in bringing these defendants to justice.”
According to the complaint unsealed this morning, between August 2016 and March 2017, Voss, Vanguard’s Chief Operating Officer, Sypher, the Chief Financial Officer, and Bohm, the President of Sales, engaged in a scheme in which they obtained warehouse loans, or short-term loans, for Vanguard by falsely representing that Vanguard would use the proceeds of those loans to fund mortgages or mortgage refinancing for Vanguard’s clients. Once Vanguard received the loans, however, the defendants used the monies to pay personal expenses and compensation and to pay off loans they had previously obtained with fraudulent loan submissions for improper purposes. Nearly $9 million of fraudulently obtained, and subsequently misused, loans have been identified so far.
In a recorded conversation with a co-conspirator in 2017, Bohm expressed confidence that they would evade criminal liability because the victims of their fraudulent scheme were financial institutions. “At the end of the day, the s--- we did wasn’t to the public,” Bohm stated in part, according to the complaint.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a statutory maximum of 30 years’ imprisonment for bank fraud conspiracy and 20 years’ imprisonment for wire fraud conspiracy.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are in charge of the prosecution.
The Defendants:
EDWARD E. BOHM
Age: 39
Residence: Nissequogue, New YorkEDWARD J. SYPHER, JR.
Age: 40
Residence: Scarsdale, New YorkMATTHEW T. VOSS
Age: 42
Residence: Northport, New YorkE.D.N.Y. Docket No. 17-MJ-742
Toledo man indicted for having images of child sexual exploitation and rapeRead the Press Release
A Toledo man was indicted for receipt and distribution of child pornography, said U.S. Attorney Justin E. Herdman.
Russell Smith, 50, received numerous images of minors engaged in sexually explicit conduct, This took place between at least March 15 and August 10, 2017, according to the indictment.
Smith possessed more than 20 computer files and images of children, some as young as eight years old, being sexually abused and/or raped, according to court documents.
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 was investigated by the United States Secret Service in Toledo and is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman
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.
Three Men Plead Guilty to Conspiracy to Violate the Lacey Act by Illegally Trafficking Threatened Alligator Snapping TurtlesRead the Press Release
The Department of Justice’s Environment and Natural Resources Division, the United States Attorney’s Office for the Eastern District of Texas, and the U.S. Fish and Wildlife Service announced today that Travis Leger and Rickey Simon, both of Sulphur, Louisiana, and Jason Leckelt of Wilburton, Oklahoma, have all pled guilty to conspiracy to violate the Lacey Act by illegally trafficking alligator snapping turtles.
Alligator snapping turtles are the largest freshwater turtles in the world and can grow to weigh more than 200 pounds with a lifespan of more than 100 years. The turtles are designated as threatened with statewide extinction under Texas State Law, which strictly prohibits anyone from taking, capturing, transporting, or selling these turtles, or attempting to do so. The turtles are also protected under Louisiana State Law, which makes it illegal to sell or barter for the turtles. The Lacey Act makes it a federal crime to engage in the interstate trafficking of wildlife taken in violation of state wildlife protection laws.
“Those who choose to exploit our precious wildlife resources threaten the existence of these rare reptiles,” said Acting U.S. Attorney Brit Featherston. “Protection of the turtles and the prevention of diseases that may spread by these actions make these prosecutions vital to the health of our natural wildlife.”
In April 2017, Leger, Leckelt, and Simon were charged in a six-count indictment. The conspiracy charged all defendants with illegally taking more than 60 large alligator snapping turtles during their multiple fishing trips to Texas in the spring and summer of 2016, and also with transporting the turtles back to a property in Sulphur, Louisiana, where they intended to sell the turtles. In July 2016, Federal agents seized about 30 large alligator snapping turtles from ponds located at a defendant’s property in Sulphur, Louisiana, pursuant to a federal search warrant.
As part of his guilty plea, Travis Leger admitted to selling a live, illegally taken, 171-pound turtle for $1,000 and another live, illegally taken, 168-pound turtle for $500 in May and June of 2016. The turtles were later seized by U.S. Fish and Wildlife Agents from the buyer and are currently being cared for at a private facility. In sum, Leger admitted that the market value of all the turtles that he caught illegally in Texas and then sold in Louisiana during the course of the conspiracy was between $40,000 and $95,000. Leger also agreed to forfeit all of the turtles seized from his property in Sulphur, Louisiana, and will permit the U.S. Fish and Wildlife Service to return to the property, drain the ponds, and seize all remaining alligator snapping turtles. Similarly, Jason Leckelt, who is Leger’s half-brother, admitted that the market value of the turtles that he illegally personally caught in Texas and sold in Louisiana during the course of the conspiracy was between $15,000 and $40,000.
Finally, Rickey Simon admitted that his role in the conspiracy included selling a 120-pound alligator snapping turtle, illegally caught in Texas, to an undercover U.S. Fish and Wildlife Agent in May of 2016. In addition, Mr. Simon admitted that he obstructed justice by deleting text messages from his cell phone prior to being interviewed by a Special Agent from the U.S. Fish and Wildlife Service during the execution of the search warrant at the Sulphur property in July 2016. Simon deleted the text messages from his cell phone after Travis Leger called and warned him that game wardens were coming to the Sulphur property to take the turtles out of the ponds. Simon also admitted that he subsequently made false statements to the Special Agent during the execution of the search warrant at the Sulphur property by denying that he had ever fished for alligator snapping turtles in Texas.
The defendants all face up to a maximum five years in prison and a $250,000 fine for the conspiracy convictions.
Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas and Senior Trial Attorney David P. Kehoe of the Department of Justice, Environmental Crimes Section, prosecuted the case. The case is being investigated by the U.S. Fish and Wildlife Service, the Louisiana Department of Wildlife and Fisheries, and the Texas Parks and Wildlife Department.
Three Guilty of Threatening East Texas Alligator Snapping TurtlesRead the Press Release
BEAUMONT, Texas – Three men have pleaded guilty to illegally trafficking alligator snapping turtles in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston along with the Department of Justice’s Environment and Natural Resources Division and the U.S. Fish and Wildlife Service today.
Travis Joseph Leger, 40, and Rickey Paul Simon, 57, both of Sulphur, Louisiana, and Jason Gene Leckelt, 36, of Wilburton, Oklahoma, have all pleaded guilty to conspiracy to violate the Lacey Act by illegally trafficking alligator snapping turtles. Simon and Leckelt appeared before U.S. Magistrate Judge Keith Giblin on Aug. 17, 2017 while Leger entered his guilty plea before Judge Giblin on Aug. 21, 2017.
Alligator snapping turtles are the largest freshwater turtles in the world and can grow to weigh more than 200 pounds with a lifespan of more than 100 years. The turtles are designated as threatened with statewide extinction under Texas State Law, which strictly prohibits anyone from taking, capturing, transporting, or selling these turtles, or attempting to do so. The turtles are also protected under Louisiana State Law, which makes it illegal to sell or barter for the turtles. The Lacey Act makes it a federal crime to engage in the interstate trafficking of wildlife taken in violation of state wildlife protection laws.
“Those who choose to exploit our precious wildlife resources threaten the existence of these rare reptiles,” said Acting U.S. Attorney Brit Featherston. “Protection of the turtles and the prevention of diseases that may spread by these actions make these prosecutions vital to the health of our natural wildlife.”
According to information presented in court, Leger, Leckelt, and Simon conspired to illegally take more than 60 large alligator snapping turtles during their multiple fishing trips to Texas in the spring and summer of 2016. The defendants transported the turtles back to a property in Sulphur, Louisiana, where they intended to sell them. In July 2016, Federal agents seized about 30 large alligator snapping turtles from ponds located at a defendant’s property in Sulphur, Louisiana, pursuant to a federal search warrant.
As part of his guilty plea, Leger admitted to selling a live, illegally taken, 171-pound turtle for $1,000 and another live, illegally taken, 168-pound turtle for $500 in May and June of 2016. The turtles were later seized by U.S. Fish and Wildlife Agents from the buyer and are currently being cared for at a private facility. Leger admitted that the market value of all the turtles that he caught illegally in Texas and then sold in Louisiana during the course of the conspiracy was between $40,000 and $95,000. Leger also agreed to forfeit all of the turtles seized from his property in Sulphur, Louisiana, and will permit the U.S. Fish and Wildlife Service to return to the property, drain the ponds, and seize all remaining alligator snapping turtles. Similarly, Leckelt, who is Leger’s half-brother, admitted that the market value of the turtles that he illegally personally caught in Texas and sold in Louisiana during the course of the conspiracy was between $15,000 and $40,000.
Finally, Simon admitted that his role in the conspiracy included selling a 120-pound alligator snapping turtle, illegally caught in Texas, to an undercover U.S. Fish and Wildlife Agent in May of 2016. In addition, Simon admitted that he obstructed justice by deleting text messages from his cell phone prior to being interviewed by a Special Agent from the U.S. Fish and Wildlife Service during the execution of the search warrant at the Sulphur property in July 2016. Simon deleted the text messages from his cell phone after Leger called and warned him that game wardens were coming to the Sulphur property to take the turtles out of the ponds. Simon also admitted that he subsequently made false statements to the Special Agent during the execution of the search warrant at the Sulphur property by denying that he had ever fished for alligator snapping turtles in Texas.
Under federal statutes, the defendants each face up to five years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case is being investigated by the U.S. Fish and Wildlife Service, the Louisiana Department of Wildlife and Fisheries, and the Texas Parks and Wildlife Department and is being prosecuted by Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas and Senior Trial Attorney David P. Kehoe of the Department of Justice, Environmental Crimes Section.
Taney County Restaurant Owner Pleads Guilty to Tax EvasionRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the owner of a Taney County, Mo., restaurant pleaded guilty in federal court today to tax evasion after confessing his crimes to undercover federal agents who posed as buyers when his business was for sale.
Tony E. Cowden, 63, of Protem, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to five counts of income tax evasion.
Cowden operated Tony’s Pizza House in Protem since April 2008. By pleading guilty today, Cowden admitted that he engaged in a scheme to conceal taxable income from the IRS from April 2008 to January 2015 by skimming from cash sales at the business and not reporting the cash income to the IRS.
Cowden listed his business and property for sale in 2015. Two undercover agents from IRS-Criminal Investigation posed as potential buyers and met with Cowden. Cowden apologized to the undercover agents for not having provable income to substantiate the $599,000 sales price, but stated, “it saves me a lot of taxes.” Cowden admitted to the undercover agents that he “pockets” all the money from the sale of Keno-Lotto tickets and the cash received from the arcade games in his restaurant. Cowden maintained true and correct financials for the business in a black three-ring binder.
Cowden encouraged his customers to pay in cash by offering discounts for cash payments. Cowden concealed the cash he skimmed from the restaurant from his accountant and so evaded paying federal income taxes on that revenue. By omitting a portion of his gross receipts, Cowden falsely claimed he was entitled to the earned income credit.
In addition to $91,037 in federal income taxes for the years 2009, 2010, 2011, 2012, 2013 and 2014, Cowden admitted he owes $12,474 in state income tax and $35,016 in state sales tax for the same period.
Federal and state tax losses for those five years total $138,527. Under the terms of today’s plea agreement, Cowden must pay restitution to the IRS and to the state of Missouri. Cowden must also pay $29,581 to the Social Security Administration for Social Security disability payments that he was not entitled to receive.
Under federal statutes, Cowden is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation, Social Security Administration – Office of Inspector General and the Missouri Department of Revenue.