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11 October 2017
Charlotte Woman Pleads Guilty to Wire Fraud for Embezzling Funds Intended as Charitable Assistance to Individuals Experiencing Financial HardshipsRead the Press Release
CHARLOTTE, N.C. – Today, a Charlotte woman pleaded guilty to wire fraud for embezzling money from a non-profit organization that provides charitable assistance to individuals experiencing financial hardships, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Leah S. Belk, 48, of Charlotte, entered a plea of guilty before U.S. Magistrate Judge David S. Cayer.
Matthew Quinn, Acting Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Rose in making today’s announcement.
According to the filed plea agreement and other court documents, from August 2010 to March 2017, Belk engaged in a scheme to defraud her employer (the Company), and an affiliated non-profit organization (the Foundation), of which she was a board member, by embezzling funds intended to provide charitable assistance to employees faced with financial hardships. According to court records, the Foundation received funding primarily from donations made by the Company’s employees through payroll deductions.
Court records show that members of the Foundation’s board of directors, which was comprised of Company employees, evaluated applications received from Company employees to determine whether to award financial assistance based on the employee’s need and the events that contributed to the hardship. The Foundation typically paid an approved employee’s expenses directly by issuing checks payable to the employee’s mortgage or utility companies to cover the employee’s bills. The Foundation also purchased Company gift cards to provide to awarded applicants in times of need.
According to court records, Belk was an employee of the Company from 1992 until her termination in March 2017. From 2006 until her termination, Belk was also a member of the Foundation’s board of directors and acted as the Foundation’s secretary. Court records show that Belk performed administrative tasks in connection with the Foundation’s operations, including: assembling and logging applications reviewed by the board; communicating directly with applicants; coordinating the initiation and processing of checks to be paid on behalf of awarded applicants; and maintaining control over Company gift cards purchased by the Foundation to provide employees in need.
Belk admitted in plea documents and in court today that, beginning in August 2010 through March 2017, she used Foundation funds intended for needy Company employees to pay for personal expenses, including her mortgage and utility bills. Belk also admitted to falsifying and modifying applications and other Foundation documents to cover the fraud. Specifically, Belk admitted to modifying approved applications and documents after payments had been made to awarded applicants, to cause the issuance of additional checks to cover her own personal expenses using Foundation funds. Belk also diverted applications from the board, and falsified and reused board approval forms, to approve payments and the issuance of checks to cover personal expenses. Belk also modified rejected applications to falsely reflect that they had been approved, and, based on the falsified approvals, Belk directed the issuance of checks to pay for her personal expenditures. Court records also show that Belk used Company gift cards intended for needy employees to make purchases for herself.
Over the course of the scheme, Belk falsified documents and diverted payments for her own benefit in approximately 45 separate incidents. In total, Belk fraudulently diverted more than $77,000 in Foundation funds.
Belk pleaded guilty today to one count of wire fraud and was released on bond. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. A sentencing date has not been set yet.
U.S. Secret Service led the investigation. Assistant United States Attorney William Miller, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Charleston man sentenced for Social Security fraudRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to five years of probation and ordered to pay $36,927 in restitution for Social Security fraud, announced United States Attorney Carol Casto. Thomas Bennett, 58, previously pleaded guilty to theft of public money.
Bennett admitted that he participated in a scheme in which his family members, in 1986, fraudulently applied for Social Security benefits. The fraudulent application was in the name of a family member who died in 1967 and members of Bennett’s family were not entitled to receive any benefits. Bennett subsequently learned about the fraud and in 2000, he joined his family in participating in the scheme. When the other family members died in 2012 and 2013, Bennett took over the Social Security scheme and continued to cash Social Security benefits checks that he knew he was not entitled to receive. Bennett assisted his other family members in cashing Social Security benefits checks dating back to the year 2000 totaling $36,927.
The investigation was conducted by the Social Security Administration’s Office of the Inspector General and the Social Security Administration. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
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Chamberlain Man, Fort Thompson Man, and Box Elder Woman Charged with Violations of the Bald and Golden Eagle Protection Act and Lacey ActRead the Press Release
United States Attorney Randolph J. Seiler announced that a Chamberlain, South Dakota man, a Fort Thompson, South Dakota man, and a Box Elder, South Dakota woman have been indicted by a federal grand jury for violations of the Bald and Golden Eagle Protection Act and Lacey Act.
Christopher Pomani, age 37, Michael Pomani, age 40, and Arvella Pomani, age 35, were indicted on August 22, 2017. They appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to two years in custody and/or a $250,000 fine, one year of supervised release, and up to $175 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 27, 2014, Christopher Pomani and Michael Pomani did knowingly, and with wanton disregard for the consequences of their actions, possess, sell, barter, and offer to sell and barter, a bald eagle and a golden eagle and parts thereof.
The indictment also alleges that between October 28, 2014, and October 30, 2014, Michael Pomani and Arvella Pomani also did knowingly, and with wanton disregard for the consequences of their actions, possess, sell, barter, and offer to sell and barter a bald eagle and a golden eagle and parts thereof, as well as knowingly transported, sold, received, acquired, and purchased bald eagles, golden eagles, and various species of hawks and owls.
The charges are merely accusations and all three defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.
Christopher Pomani was remanded to the custody of the U.S. Marshals Service pending trial. Michael Pomani and Arvella Pomani were released on bond pending trial. A trial date has not been set.
Boston Man Sentenced for Escaping from CustodyRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for escaping from custody at a Residential Reentry Center.
Sean Jones, 43, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 15 months in prison. On March 30, 2017, Jones pleaded guilty to one count of escape.
In Feb. 2011, Jones was convicted in federal court of distributing cocaine and sentenced to eight years in prison. In August 2016, Jones was transferred from federal prison to a Residential Reentry Center, where he was to serve the remainder of his sentence until Feb. 25, 2017. On Oct. 8, 2016, Jones, who was allowed to sign out of the Center on a “common pass,” contacted the program to let them know he had fainted and was going to the hospital. Jones never returned to the program and was placed on escape status the following day. On Oct. 12, 2016, Jones was arrested by Transit Police in Boston and charged with drug possession, resisting arrest, and making threats. Jones was released on the state charges and taken into federal custody.
Acting United States Attorney William D. Weinreb and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement. Assistant U.S Attorney Nicholas A. Soivilien of Weinreb’s Major Crimes Unit prosecuted the case.
Best Practices Regarding Safety & Investigative Techniques During Opioids, Synthetics, & Overdose Investigations ConferenceRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina, along with the Wake County District Attorney’s Office, hosted a conference today to provide patrol officers, investigators, first responders and narcotics and homicide detectives information regarding safety measures and investigative techniques necessary for working opioid and synthetic drug cases. Representatives of the North Carolina State Bureau of Investigation, the Drug Enforcement Administration and the Office of North Carolina’s Chief Medical Examiner provided critical information regarding safety measures and evidence gathering and investigative techniques.
United States Attorney Robert J. Higdon, Jr. welcomed conference participants with the following remarks:
“I wanted to be here with you this morning to open this important training conference because North Carolina is literally at the center of the opioid and synthetic crisis gripping our nation. This crisis affects all of us. In 2015 more than 52,000 Americans lost their lives to drug overdose. And the numbers we have for 2016 show another increase - a big increase. Based on preliminary data, nearly 60,000 Americans lost their lives to drug overdoses last year. This crisis is being driven primarily by opioids-prescription drugs, heroin and synthetic drugs like fentanyl.
Here in North Carolina we have seen an alarming increase in opioid related deaths. In 2015 more than 1100 of our people lost their lives from opioid abuse - 1100 of our friends, neighbors, fellow North Carolinians. More than three per day.
Across our communities we’re seeing more availability, higher purity, and lower prices. As you know, drugs like heroin and cocaine are being laced with drugs like fentanyl - a substance 30 to 50 times more powerful than heroin. As a result, the drugs on the street are now more powerful, more addictive, and more dangerous than ever before. And they are not just dangerous for users; even being accidently exposed to just a few grains of fentanyl can kill a police officer or paramedic.
Today’s conference is designed to provide you with information and best practices about the safety measures you need to take as you investigate opioid and synthetic cases. And, we hope, it will help you continue to hone your investigative skills as you collect evidence and prepare cases for prosecution - the prosecution of the traffickers who are pumping this poison into our communities.
To confront a crisis on this scale, we must take a comprehensive approach that includes prevention, enforcement and treatment. You are on the front lines of our enforcement effort. And as you investigate these cases, we want you to have every tool available to stay safe and to investigate these critical cases so that traffickers can be successfully prosecuted.
We in the United States Attorney’s Office stand behind you and we are prepared to prosecute opioid traffickers across the Eastern District of North Carolina. Congress has given us many tools to help stem the tide of deadly opioids in our communities.
We will aggressively use mandatory minimum sentencing, stiff sentences for heroin and other Schedule I or II drugs, and enhanced sentences available where death or serious bodily injury occurs. And where drug traffickers have been previously convicted of a felony drug offense, we will pursue the substantial enhanced sentences available under federal law.
Today’s training is one-step toward strengthening our collaboration and communication. And I am very pleased that we are able to partner with Lorrin Freeman and her very fine staff at the Wake County District Attorney’s Office. I know they share our deep commitment to fighting the problems in a comprehensive and aggressive way. And I know she shares our commitment to the safety and effectiveness of dedicated investigators and first responders like each of you.
As one who lives and works and who is raising a family here in Wake County, I thank you for the work you do every day to protect me, my wife and my two sons. Thank you for your dedication and for the sacrifices you make for each of us. And thank you for being here today and for your commitment to this important work. I hope and trust that the information that is shared today will help you stay safe and do your job more efficiently. I look forward to working closely with you to protect our communities from the opioid and synthetic crisis.”
Belmont County woman admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Bridgeport, Ohio woman has admitted to her role in a crack cocaine distribution operation, Acting United States Attorney Betsy Steinfeld Jividen announced.
Faith Diane Leasure, age 22, pled guilty to one count of “Aiding and Abetting the Distribution of Crack Cocaine.” Leasure admitted to selling crack cocaine in Ohio County in August 2016.
Leasure faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U. S. Magistrate Judge James E. Seibert presided.
Austin Area Patient Recruiter Pleads Guilty to Receiving Kickbacks in Health Care Fraud SchemeRead the Press Release
In Austin this afternoon, 68-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, pleaded guilty to federal charges in connection with a Health Care Fraud scheme announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
Appearing before United States Magistrate Judge Mark Lane, McKenzie pleaded guilty to one count of conspiracy to violate the federal anti-kickback law and one count of soliciting and receiving kickbacks. Each count calls for up to five years in federal prison. McKenzie remains on bond pending sentencing, which has yet to be scheduled.
According to court records, Dr. William Joseph Dubin and his son, Dr. David Fox Dubin were licensed psychologists who operated Psychological A.R.T.S. in Austin. Between April 2011 and March 2013, McKenzie was the President of the Board of Directors of an emergency shelter house located approximately eighty miles from Austin. That facility provided temporary shelter for crisis intervention and mental health services to children and youth ages 5 to 17 who had been removed from their homes by the Texas Department of Family and Protective Services. By pleading guilty, McKenzie admitted to receiving over $15,000 in kickbacks from the doctors during that time for using his position at the emergency shelter and his contacts with other similar shelters to refer children and youth to Psychological A.R.T.S. for comprehensive mental health assessments.
In July, a grand jury indicted the doctors on federal charges including: conspiracy to violate the federal anti-kickback law; five counts of paying illegal kickbacks; conspiracy to commit health care fraud; seven counts of health care fraud and aiding and abetting health care fraud; and, six counts of aggravated identity theft. The indictment alleges that from January 2011 to June 2015, the doctors caused fraudulent billings totaling approximately $300,000 to be submitted to the Texas Medicaid program and the Texas Vocational Rehabilitation Services program for various psychological services.
Jury selection for both doctors is scheduled for January 2, 2018, before U.S. District Judge Sam Sparks in Austin. Upon conviction, each count related to illegal kickbacks calls for up to five years in federal prison; each count related to Health Care Fraud calls for up to ten years in federal prison; and, each count related to aggravated identity theft calls for up to two years in federal prison.
The Federal Bureau of Investigation, together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit, investigated this case. Special Assistant United States Attorney Rex Beasley is prosecuting this case on behalf of the Government.
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.
Attorney General Jeff Sessions Announces Reinvigoration of Project Safe Neighborhoods and Other Actions to Reduce Rising Tide of Violent CrimeRead the Press Release
Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.
Attorney General Sessions stated, “According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action.”
“The Northern District of Oklahoma is not immune to the scourge of violent crime. The United States Attorney’s Office stands ready to work side-by-side with our federal, state, tribal, and local partners to combat violent crime,” United States Attorney Shores said. “We will target the most violent offenders, and we will prosecute them. We will increase our engagement with community leaders to help keep youth on track and reduce recidivism. Bottom line, we cannot afford to be complacent in the face of violence that threatens our communities.”
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.
More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.
Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources.
Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, Arizona, and Kansas City, Missouri.
Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
Armed Drug Trafficker Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Bruce King, 48, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute marijuana and possession of a short-barrel rifle which was not registered in the National Firearms Registration and Transfer Record. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000 or both.Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that King was arrested on October 19, 2015, following a search by the New York State Department of Corrections and Community Supervision of his residence at 161 Conkey Avenue in Rochester. During the search, officers recovered a brown paper bag with plastic capsules containing marijuana inside a backpack. Officers also found a .22 caliber sawed-off rifle with two boxes of .22 caliber ammunition. The barrel and the stock of the rifle had been shortened so that the barrel was 5 and 10/16 inches and the overall length was 14 and 1/16 inches. Officers also found drug trafficking paraphernalia in the residence as well.
The plea is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Rochester Police Department, under the direction of Chief Michael Ciminelli; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for January 22, 2018, at 12:30 p.m. before Judge Wolford.
Albuquerque Man Sentenced for Prescription Drug Trafficking and Money Laundering ConvictionRead the Press Release
ALBUQUERQUE – Gerald Roberts, 49, of Albuquerque, N.M., was sentenced today in federal court to 51 months in prison followed by three years of supervised release for his conviction on prescription drug trafficking and money laundering charges. Roberts and his wife and co-defendant Yvonne Garcia, 55, also were ordered to forfeit their interest in the proceeds of their criminal activities, including $71,674.92 seized from bank accounts and a safe deposit box, a 2016 Toyota Camry, a 2016 Toyota Tacoma truck, a 2013 BMW motorcycle, and to pay a money judgment in the amount of $15,500.
Roberts and Garcia were arrested in Sept. 2016, on an eight-count indictment charging them with trafficking controlled substances in Bernalillo County, N.M. Roberts and Garcia were charged with conspiring to distribute oxycodone, oxymorphone and alprazolam from May 2016 through Sept. 2016. The indictment also charged the couple with distributing oxycodone on three separate occasions in May, June and July 2016; distributing oxymorphone on four occasions in May, June, July and Sept. 2016; and distributing alprazolam in July 2016.
On March 29, 2017, Roberts and Garcia each pled guilty to the conspiracy charged in the indictment and to felony informations charging them with conspiring to launder drug proceeds. According to the plea agreements, between May 2016 and Sept. 2016, Roberts and Garcia sold oxycodone, oxymorphone and alprazolam to an individual who unbeknownst to them was an undercover DEA agent. Roberts and Garcia deposited the proceeds of their illegal drug transactions into Wells Fargo checking and savings accounts in amounts that would not trigger currency-reporting requirements that could alert law enforcement authorities to their illegal activities. Roberts and Garcia used the drug proceeds in the bank accounts to make payments on their residential mortgage and vehicle loans.
Garcia was previously sentenced on Aug. 16, 2017, to 46 months in prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of the DEA, the Albuquerque Police Department and the Santa Fe Police Department. Assistant U.S. Attorneys Shana B. Long and Peter J. Eicker prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Acting Manhattan U.S. Attorney and FBI Assistant Director Announce Securities and Wire Fraud Charges Against Founders of Purported Snack BusinessRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest and unsealing of a complaint charging LISA BERSHAN, BARRY SCHWARTZ, and JOEL MARGULIES with securities fraud, wire fraud, and conspiracy to commit those offenses in connection with a scheme to defraud investors in a company variously called The Awake Company and Starship Snacks (“Starship”).
BERSHAN and SCHWARTZ were presented earlier today in federal court in Atlanta, and MARGULIES was presented earlier today in federal court in Tennessee.
In a separate action, the SEC filed civil charges against BERSHAN, SCHWARTZ, and MARGULIES.
Acting U.S. Attorney Joon H. Kim said: “As alleged, while promising a sure thing, in the form of guaranteed returns, the defendants were actually selling nothing but lies. Instead of using investors’ money to grow the business, they allegedly spent it on plastic surgeries, jewelry, and cars. Thanks to the terrific investigative work of the FBI, the defendants will now have to answer in court for their lies.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Bershan, Schwartz, and Margulies allegedly led investors to believe their company was on a guaranteed path to success. To further support their claim, as charged today, they promised to buy back any shares that didn’t appreciate within a year, including a supplemental interest payment of five percent. Samples of chocolate intended to represent the caffeinated snack they had supposedly developed were provided to some for good measure, but the chocolate was void of its key ingredient. In the end the numbers didn’t add up as this sweet deal turned sour.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
As alleged, BERSHAN, SCHWARTZ, and MARGULIES created Starship with the stated goal of marketing and selling a caffeinated chocolate snack. BERSHAN, SCHWARTZ, and MARGULIES subsequently raised over $2 million from investors by telling them that their investments in Starship would be personally guaranteed against any losses; that Starship was on the verge of a lucrative acquisition by another entity, Monster Beverage Corp. (“Monster”); and that Starship’s signature product had been developed successfully. All of these representations were false and misleading. Starship had no ability to honor the guarantees that it and BERSHAN made to investors. It was never in talks with Monster to be acquired. And it had never developed or engaged a third party to develop its caffeinated snack. After receiving investor monies, moreover, BERSHAN, SCHWARTZ, and MARGULIES used those funds to maintain their own extravagant lifestyles, spending hundreds of thousands of dollars on things like luxury clothing, plastic surgery, interior decorating, and luxury housing in New York City.
Beginning in August 2015, BERSHAN, MARGULIES, and SCHWARTZ began soliciting investments in Starship. In order to assure investors that their investments in Starship would be safe, BERSHAN sent investors images of herself in what appeared to be a mansion with subject lines like, “Just a glimpse – my parents sure as hell didn’t leave me this.” BERSHAN and MARGULIES also signed investment documents providing that “[t]he Company and Lisa Bershan, its founder, have committed to repurchase” investors’ shares at the price that they had paid for them if they had not appreciated within a year, and further guaranteeing that “Lisa Bershan . . . [would] add an interest payment of 5%” in such an event. These guarantees were not made in good faith, as neither BERSHAN nor Starship had any significant assets or ability to honor the guarantees they were making. To the contrary, BERSHAN had unpaid tax liabilities and multiple outstanding civil judgments (and did not actually own the mansion that, as discussed above, she implicitly held out to investors as her own).
In addition to making bogus guarantees, BERSHAN, SCHWARTZ, and MARGULIES also told investors that Starship was in discussions to be acquired by Monster, and that this transaction would take place through a one-to-one exchange of Starship stock for Monster stock. In October 2015, for example, MARGULIES sent an email to multiple investors that sought additional investments and expressly stated, “[t]he deal as I am certain you have heard is done thanks in no small part to the extraordinary talents and skills of our CEO, Lisa Bershan. If you are not aware of the deal, it is a one to one --- share for share exchange of [Starship] for Monster after a six month holding period of [Starship] shares.” Given that Monster’s stock was, at the time, trading at many multiples of the $3 per share that Starship’s investors initially paid at the time, this purported transaction would result in tremendous gains for Starship investors. But there was no basis for the claim that the “deal . . . [was] done.” Starship was never acquired by Monster or any other entity, and, indeed, was never in negotiations with Monster.
Finally, BERSHAN, SCWHARTZ, and MARGULIES misrepresented the nature and progress of Starship’s purported business to investors. BERSHAN, SCHWARTZ, and MARGULIES told investors that Starship had developed its caffeinated chocolate snack, when, in reality, it had not done so. Indeed, in order to mislead investors into thinking that the product was further along than it actually was, BERSHAN, SCHWARTZ, and MARGULIES actually provided samples of normal chocolates to certain investors, falsely telling them that the chocolates were caffeinated as per Starship’s business plan.
In total, BERSHAN, SCHWARTZ, and MARGULIES raised over approximately $2 million from investors based on these false representations. Much of this amount was simply misappropriated by BERSHAN and SCHWARTZ (or paid to MARGULIES). Between August 2015 and July 2017, for example, BERSHAN and SCHWARTZ spent over $39,000 on plastic surgery; over $209,000 on retail purchases, including jewelry, clothes, and interior decorating; over $11,900 at a Mercedes dealership; and hundreds of thousands of dollars on luxury housing.
* * *
MARGULIES, 72, of Murfreesboro, Tennessee, BERSHAN, 65, and SCHWARTZ, 71, are each charged with one count of conspiring to commit securities and wire fraud, which carries a maximum prison sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the exceptional work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Robert Allen is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
33 Charged with Racketeering, Narcotics, Firearms, and Bank Fraud Offenses in Connection with Violent Gang Activity and Drug Trafficking Near the Mill Brook Houses in the Bronx, New YorkRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James J. Hunt, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of three Indictments and two Complaints charging 33 individuals with racketeering, narcotics, firearms, and bank fraud offenses in connection with violent gang and drug trafficking conduct near the Mill Brook Houses, in the Bronx, New York.
The indictment in U.S. v. Michael White, et al. charges a total of 14 individuals, eight of whom are charged with racketeering conspiracy in connection with their membership in a gang known as “MBG” (also known as “Money Bitches Guns” and “Millbrook Gangstas”) and 11 of whom are charged with racketeering conspiracy in connection with their association with the gang known as the “Young Gunnaz,” also known as the “YGz.” The indictment in U.S. v. Gary Davis, et al. charges a total of 15 individuals, four of whom are charged with racketeering conspiracy in connection with their membership in a gang known as “Killbrook.” The indictment in U.S. v. Algi Crawford, et al. charges two individuals with bank fraud. The complaint in U.S. v. Bernard Franklin, charges one individual with heroin distribution. The complaint in United States v. James Green, 17 Mag. 7566, charges one individual with crack cocaine distribution.
A total of 24 defendants were taken into custody today; five other defendants are already in state custody on other charges. Of the 33 defendants, 23 will be presented before U.S. Magistrate Judge Katharine H. Parker later today. DAVID OQUENDO was arrested in the Northern District of New York and will be presented and arraigned in the United States District Court for the Northern District of New York later today. U.S. v. Michael White is assigned to U.S. District Judge Robert W. Sweet. U.S. v. Gary Davis is assigned to U.S. District Judge Lorna G. Schofield. U.S. v. Algi Crawford is assigned to U.S. District Judge J. Paul Oetken. U.S. v. Bernard Franklin and U.S. v. Eric Green are not yet assigned to District Judges
Acting U.S. Attorney Joon H. Kim said: “As alleged, members and associates of these gangs and crews plagued the Mill Brook Houses for a decade, engaging in violence and selling drugs. One of the victims was Bolivia Beck, a 21-year-old who was shot dead in broad daylight. Thanks to the terrific investigative work of the FBI, DEA, and NYPD, the defendants will now face justice in federal court.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The gang members we rounded up in this case, and in many other investigations, seem to not learn the lesson that they cannot act with impunity. These gangs have a significantly negative impact on the neighborhoods where they operate, but we can’t make these arrests in a vacuum. We need the community to seize the chance at a fresh start to rebuild a safer place to live. With that said, we have had tremendous success in bringing down crime in New York City through our collaboration on the FBI NY Metro Safe Streets Task Force. We will keep focusing our resources against these gangs, and we won’t ever stop pursing the most violent criminals who look to fill the void.”
DEA Special Agent in Charge James J. Hunt said: “The drug trafficking of all three gangs around the Mill Brook Houses was a breeding ground for violence. By working collaboratively with our partners, law enforcement removed these gang members who are allegedly responsible for jeopardizing the safety of their neighbors by putting them in the middle of their turf war.”
As alleged in the Indictments and Complaint unsealed today in Manhattan federal court and in other court papers[1]:
MBG was a criminal enterprise involved in committing numerous acts of violence, including attempted murders, in the vicinity of the Mill Brook Houses in the Bronx. Members and associates of MBG enriched themselves by selling drugs, such as crack cocaine and marijuana. In particular, on or about February 4, 2013, MBG member DAVID OQUENDO attempted to murder a rival gang member in the Mill Brook Houses. On August 17, 2014, CHRISTOPHER HOWARD, a/k/a “Juju,” attempted to murder rival gang members in the Mill Brook Houses.
The YGz was a criminal enterprise involved in committing numerous acts of violence, including attempted murders, in the vicinity of the Mill Brook Houses in the Bronx. Members and associates of the YGz enriched themselves by selling drugs, such as crack cocaine and marijuana. On October 28, 2012, YGz member MICHAEL WHITE, a/k/a “Mike,” attempted to murder rival gang members, causing injuries to multiple people.
Killbrook was a criminal enterprise involved in committing numerous acts of violence, including murder and attempted murders, in the vicinity of the Mill Brook in the Bronx. Members and associates of Killbrook enriched themselves by selling drugs such as crack cocaine and marijuana. On or about April 18, 2011, Killbrook member GARY DAVIS, a/k/a “Reckless,” a/k/a “Poppa,” murdered Bolivia Beck in the Mill Brook Houses.
* * *
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI, DEA, and NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jordan Estes, Drew Skinner, and Alexandra Rothman are in charge of the prosecution.
The charges contained in the Indictments and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Michael White, et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
MICHAEL WHITE (age 29)
JOEY COLON (age 28)
DEMETRIUS WINGO (age 25)
ANTHONY BUSH (age 27)
DAVID OQUENDO (age 27)
CHRISTIAN PEREZ (age 24)
JAMES ROBINSON (age 30)
CHRISTOPHER HOWARD (age 25)
20 years in prison
2
Racketeering conspiracy
18 U.S.C. § 1962(d)
MICHAEL WHITE
JOEY COLON
DEMETRIUS WINGO
ANTHONY BUSH
DAVID OQUENDO
CHRISTIAN PEREZ
ALLEN KNIGHT (age 28)
MIGUEL CALDERON (age 23)
JAMESE SNIPES (age 19)
WESLEY MONGE (age 20)
OSCAR BRIONES (age 20)
20 years in prison
3
Narcotics conspiracy
21 U.S.C. § 846
JOEY COLON
DEMETRIUS WINGO
ANTHONY BUSH
DAVID OQUENDO
CHRISTIAN PEREZ
JAMES ROBINSON
ALLEN KNIGHT
MIGUEL CALDERON
JAMESE SNIPES
WESLEY MONGE
OSCAR BRIONES
ROY ROBINSON (age 38)
Life in prison
Mandatory minimum of 10 years in prison
4
Violent crime in aid of racketeering
18 U.S.C. § 1959(a)(3), (5)
MICHAEL WHITE
20 years in prison
5
Violent crime in aid of racketeering
18 U.S.C. § 1959(a)(3), (5)
DAVID OQUENDO
20 years in prison
6
Violent crime in aid of racketeering
18 U.S.C. § 1959(a)(3), (5)
CHRISTOPHER HOWARD
20 years in prison
7
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
18 U.S.C. § 924(c )
JOEY COLON
DEMETRIUS WINGO
ANTHONY BUSH
DAVID OQUENDO
CHRISTIAN PEREZ
JAMES ROBINSON
CHRISTOPHER HOWARD
Life in prison
Mandatory minimum of 10 years in prison
8
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
18 U.S.C. § 924(c )
MICHAEL WHITE
ALLEN KNIGHT
MIGUEL CALDERON
WESLEY MONGE
OSCAR BRIONES
Life in prison
Mandatory minimum of 10 years in prison
9
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime
18 U.S.C. § 924(c )
ROY ROBINSON
Life in prison
Mandatory minimum of 5 years in prison
United States v. Gary Davis, et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
GARY DAVIS (age 27)
RAMEL JACKSON (age 26)
ANDREW BURRELL (age 26)
QUENTIN STARKES (age 25)
For GARY DAVIS, life in prison
For all other defendants, 20 years in prison
2
Narcotics conspiracy
21 U.S.C. § 846
ANDRE COFIELD (age 40)
PATRICK INNIS (age 39)
GARY DAVIS
RAMEL JACKSON
ANDREW BURRELL
QUENTIN STARKES
MATTHEW COOPER (age 26)
JUSTIN COOPER (age 29)
NAYSEAN CHAVIS (age 25)
HASSAN MUHAMMAD (age 20)
CHIMBA CARLOS (age 31)
WILLIAM RAY (age 27)
JEFFREY GOODRIDGE (age 30)
MICHAEL LAMAR (age 36)
LUIS GOMEZ (age 24)
Life in prison
Mandatory minimum of 10 years in prison
3
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
18 U.S.C. § 924(c )
GARY DAVIS
RAMEL JACKSON
ANDREW BURRELL
Life in prison
Mandatory minimum of 10 years in prison
4
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a drug trafficking crime
18 U.S.C. § 924(c )
WILLIAM RAY
Life in prison
Mandatory minimum of 5 years in prison
United States v. Algi Crawford, et al.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Bank fraud conspiracy
18 U.S.C. § 1349
ALGI CRAWFORD (age 35)
JONATHAN GRIFFIN (age 31)
30 years in prison
2
Bank fraud
18 U.S.C. § 1344
ALGI CRAWFORD
JONATHAN GRIFFIN
30 years in prison
United States v. Bernard Franklin
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Distribution of heroin
21 U.S.C. §§ 812, 841(a)(1), 841(b)(1)(C)
BERNARD FRANKLIN (age 32)
20 years in prison
United States v. James Green
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Possession with the intent to distribute crack cocaine
21 U.S.C. §§ 812, 841(a)(1), 841(b)(1)(B)
JAMES GREEN (age 49)
40 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
13 Indicted in Stolen Check SchemeRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged 13 individuals with conspiracy to commit bank fraud and bank fraud in an 18-count superseding indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service and Monica S. Weyler, Special Agent in Charge, U.S. Postal Service Office of Inspector General, announced the superseding indictment.
The superseding indictment alleges that beginning in September 2016 and continuing until August 2017, the defendants conspired to unlawfully negotiate checks and money orders stolen from the United States mail.
Those charged include:
Name
Age
City of Residence
Za Darrick J. Brooks
24
Columbus
Thomas P. Williams, Jr.
23
Pickerington
Charlee D. Mitchell
26
Dayton
Jordan L. McCorvey
24
Columbus
Neshaun M. T. Walls
22
Columbus
Milahn M. Wright
23
Columbus
Jamicia R. Gordon
22
Columbus
Courtney N. Bruce
23
Columbus
Donte L. Rippey-Young
23
Gahanna
Joshua O. Saunders
24
Columbus
Chevez M. Stanley
26
Columbus
Terry T. Reynolds
20
Columbus
Justin L. Brooks
25
Columbus
At least four of the defendants – Williams, Gordon, Bruce and Rippey-Young – were at one time employed by the United States Postal Service.
According to the superseding indictment, co-conspirators used Postal Service property to illegally access blue collection boxes in the greater metropolitan Columbus area.
Williams, Gordon and Bruce allegedly gave or sold Postal Service property in order to steal the checks and money orders and to aid and abet the other defendants in doing the same. Co-conspirators then allegedly cashed the stolen checks and money orders at ATMs and through bank mobile deposit apps.
Part of the conspiracy also allegedly involved creating counterfeit checks from the stolen checks.
Some of the defendants used social media, including Twitter and Facebook, to solicit individuals with bank accounts to participate in the conspiracy and permit the deposit of stolen checks into their bank accounts in exchange for money.
“It is estimated that the defendants caused a loss of at least $150,000 to financial institutions,” U.S. Attorney Glassman said.
Conspiracy to commit bank fraud and bank fraud are each crimes punishable by up to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Postal Inspection Service and Office of Inspector General, and Assistant United States Attorney Jonathan J.C. Grey, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
# # #
10 October 2017
Youth Minister from Las Cruces Arrested on Federal Child Sexual Exploitation and Pornography ChargesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, announced the filing of federal child sexual exploitation and pornography charges against Stephen Mendoza Arellano, an ordained minister for the Apostolic Assembly Church who serves as the Church’s District of New Mexico Youth President.
Arellano, 30, of Las Cruces, N.M., made his initial appearance this morning in federal court on a criminal complaint charging him with attempted production of child pornography, enticement of a child to engage in sexual activity, and travel to meet a minor to engage in sexual conduct. He remains in federal custody pending a preliminary hearing and a detention hearing, which have not yet been scheduled.
HSI Special Agents arrested Arellano on Oct. 6, 2017, on the criminal complaint, which alleges that Arellano committed the crimes charged between May 2017 and Aug. 2017 in Dona Ana County, N.M., and elsewhere. According to the criminal complaint, Arellano traveled from Las Cruces to El Paso, Tex., with the intention of having illicit sexual contact with the child victim who was 15-years-old when he began contacting her.
According to the complaint, Arellano is a National Ordained Minister for the Apostolic Assembly Church, holds the title of District of New Mexico Youth President, and is a member of the same church as the victim. HSI initiated the investigation into Arellano after receiving a report from the parents of Arellano’s victim. The criminal complaint alleges that Arellano began communicating with the victim in a sexually explicit manner in May 2017, when the victim was fifteen-years-old. It further alleges that Arellano sent nude photos of himself to the victim and requested nude photos of the victim via cellular phone messaging between May 2017 and Aug. 2017. The complaint also alleges that Arellano engaged in sexual activity with the victim in July and Aug. 2017. The investigation allegedly revealed that Arellano was aware of the victim’s age because he assisted in making a video for the victim’s Sweet 16 birthday party.
If convicted on the attempted production of child pornography charge, Arellano faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison. If convicted on the enticement charge, Arellano faces a mandatory minimum penalty of ten years and a maximum of life in federal prison. If convicted on the traveling to engage in illicit sexual conduct charge, Arellano faces a maximum of 30 years in federal prison. The charges in the complaint are merely accusations and Arellano is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of HSI and the Las Cruces Police Department. The case is being prosecuted by Assistant U.S. Attorney Marisa A. Ong as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Youngstown man sentenced for trafficking cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Dennis Lee Artis, of Youngstown, Ohio was sentenced today to 15 months incarceration for distributing cocaine, Acting United States Attorney Betsy Steinfeld Jividen announced.
Artis, age 52, pled guilty to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location” in September 2017. Artis admitted to selling cocaine near Allison Elementary School in Hancock County on April 5, 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Hancock/Brooke/Weirton Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.Woman Pleads Guilty to Fraudulently Obtaining More Than 8,000 Hydrocodone PillsRead the Press Release
GREENSBORO, N.C. – A Burlington resident pleaded guilty on October 4, 2017, in United States District Court before the Honorable N. Carlton Tilley, Jr., to controlled substance offenses and other crimes, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
HEATHER SMITH ELLIOTT, 41, of Burlington, North Carolina, pleaded guilty to charges in relation to a scheme to fraudulently obtain over 8,000 10-325 mg hydrocodone pills from CVS pharmacies in Alamance and Guilford Counties through use of forged and fraudulent prescriptions appearing to be issued by a Duke University Medical Center neurosurgeon. ELLIOTT pleaded guilty to two counts of obtaining hydrocodone pills, a Schedule II controlled substance, by use of forged and fraudulent prescriptions, in violation of Title 21, United States Code, Section 843, one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Documents filed with the Court show that ELLIOTT forged and counterfeited approximately 132 prescriptions for hydrocodone. Each of these forged and counterfeit prescriptions bore the name and DEA number of a neurosurgeon at Duke University Medical Center in Durham, North Carolina. ELLIOTT made use of altered actual Duke University Medical Center prescription forms to create fraudulent prescriptions for hydrocodone appearing to be issued by the Duke neurosurgeon for herself, as well as for friends and family members of ELLIOTT including an ex-boyfriend, a former employee, her former husband, her son, and a neighbor. Neither ELLIOTT nor any of these persons were patients of the Duke neurosurgeon, nor had he prescribed any medications to them. ELLIOTT retained and converted the hydrocodone pills to her own use and purpose. ELLIOTT also made use of a fraudulently obtained Bank of America credit card in the name of her former boyfriend to pay for at least one of the false prescriptions.
Obtaining a controlled substance through use of a fraudulent prescription is punishable by up to four years in federal prison. Wire fraud is punishable by up to twenty years in federal prison. Aggravated identity theft is punishable by two years in federal prison consecutive to any other prison sentences imposed by the court. ELLIOTT also faces a fine of up to $250,000 and a term of supervised release of not less than three years. Sentencing is scheduled for January 18, 2018, at 9:30 a.m. in Greensboro, Courtroom #2.
The United States Postal Inspection Service, United States Treasury Office of Inspector General Task Force, and the City of Burlington Police Department participated in the investigation. Special Assistant United States Attorney Kennedy Gates and Assistant United States Attorney Frank Joseph Chut, Jr. prosecuted the case.
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Vietnamese National Extradited on Charges of Wire Fraud, Identity Theft and Money Laundering SchemeRead the Press Release
BOSTON – Tuan Dinh Nguyen, 29, a Vietnamese national living in Melbourne, Australia, appeared in federal court in Boston today on charges that he participated in an international scheme to use stolen payment card data and personally identifiable information to purchase and re-sell hundreds of thousands of dollars’ worth of consumer goods.
In August 2015, a federal grand jury in Boston indicted Nguyen on one count of wire fraud conspiracy, one count of money laundering conspiracy, 13 counts of money laundering and aiding and abetting, and one count of aggravated identity theft. Nguyen was arrested in Australia in June 2017, and on Oct. 5, 2017, he was extradited to the United States.
According to the indictment, between December 2007 and December 2013, Nguyen and at least three others conspired to use stolen payment card data and personally identifiable information to purchase consumer goods online and to re-sell those items on auction websites, including Amazon, eBay, and Buy.com; they then wired the proceeds overseas.
It is alleged that Nguyen and his co-conspirators created fraudulent accounts on multiple auction websites, or used stolen usernames and passwords to take over subscribers’ legitimate accounts. They then posted popular goods for sale at a discounted price, including Apple merchandise, electronics, personal care items and books. However, Nguyen and his co-conspirators did not own or otherwise have these goods to sell. Instead, when customers of the auction websites purchased and paid for these items, Nguyen and his co-conspirators used stolen payment card and personally identifiable information to buy the items from Walmart.com or other e-commerce websites, and then shipped the items to the auction website customers, who never knew that the items they received had been purchased with stolen credit cards and re-sold to them at discounted prices.
To obtain the proceeds of the scheme, Nguyen and his co-conspirators allegedly recruited U.S. residents to withdraw and wire overseas the money that the unwitting customers had paid through the auction websites. In total, Nguyen and his coconspirators stole and re-sold approximately $500,000 in consumer goods.
The charges of wire fraud conspiracy, money laundering, and money laundering conspiracy provide for a sentence of no greater than 20 years in prison, three years of supervised release, forfeiture and restitution. The wire fraud charge carries a fine of up to $250,000, or twice the conspiracy’s gain or loss to any victim; and the money laundering conspiracy charge carries a fine of up to $500,000, or twice the amount of the money laundered. The aggravated identity theft charge provides for a mandatory two-year sentence to be served consecutively to any sentence imposed for the wire fraud conspiracy charge. Sentences are imposed by a U.S. district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. Australia’s Attorney-General’s Department, the Australian Federal Police, and the U.S. Department of Justice’s Office of International Affairs provided assistance in securing Nguyen’s extradition to the United States. Assistant U.S. Attorney Seth Kosto of Weinreb’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Verona Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH – One former resident of Verona, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Richard Anthony Burke, age 29, as the sole defendant.
According to the indictment, on November 12, 2016 Richard possessed with intent to distribute a quantity of fentanyl. On February 3, 2017, Burke, a convicted felon, was also in possession of a firearm. As a convicted felon, Burke is prohibited by federal law from possessing a firearm.
The law provides for a maximum total sentences of not more than 20 years and a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the criminal history of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Pittsburgh Office of the Drug Enforcement Agency and Wilkinsburg Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Utah Federal, State and Local Government Officials Join Forces to Educate Investors on How to Avoid FraudRead the Press Release
SALT LAKE CITY -- In a new, collaborative effort, Utah federal, state and local government officials established the Financial Fraud Institute and will hold a multi-agency seminar designed to educate Utah investors and consumers on how to recognize and avoid financial and consumer fraud, announced U.S. Securities and Exchange Commission Regional Director Richard R. Best and U.S. Attorney for the District of Utah John W. Huber.
The free seminar is open to the public and will be held in St. George on Nov 2. Follow us on Twitter at #StopFraudUtah.
Officials from the U.S. Securities and Exchange Commission, U.S. Attorney’s Office, Utah Attorney General’s Office, Financial Industry Regulatory Authority (FINRA), Utah Division of Securities, Utah Division of Consumer Protection, FBI, IRS and the Washington County Attorney’s office will participate in the seminar.
John Huber, United States Attorney for the District of Utah, will be the keynote speaker at the seminar. This is the third in a series of seminars as a part of the Financial Fraud Institute initiative.
The seminar will provide information on key questions to ask before making investment decisions, where to find free and unbiased information, how to spot financial scams, and how to report suspected fraud.
WHO: National and local experts from federal and state law enforcement and financial regulatory agencies
WHAT: Financial Fraud Institute Seminars to educate investors and consumers on how to recognize and avoid fraud
WHEN: November 2, 2017
4:00 p.m. – 7:00 p.m. (
See agenda here )WHERE: The Dixie Center
1835 Convention Center Drive
St. George, UT
Those interested in attending the seminar must register at: www.utfraud.com, or call 801-579-6191. For more information, visit www.utfraud.com.
The seminar is open to the press. Press interested in attending the event should contact Melodie Rydalch of the Utah U.S. Attorney’s Office on 801-243-6475 or [email protected].
Us Postal Inspection Service Arrests Individual for Theft of Four Generators from the Us Postal ServiceRead the Press Release
SAN JUAN, Puerto Rico – United States Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint against Christian Joel Encarnación-Sandoval, charging him with theft of mail, said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The U.S. Postal Inspection Service in charge of the investigation.
According to the criminal complaint, on October 7, 2017 Postal Inspectors where informed by Postal Management that at Cargo Force (a facility at San Juan Airport that unloads US mail from incoming planes) an individual, later identified as Encarnación-Sandoval was found to be in possession of four power generators stolen from the mail stream.
Postal Inspectors were notified that there was suspicious activity in the loading dock. When the officials arrived, found Encarnación-Sandoval shirtless, acting suspiciously and with nervous behavior. The officials observed one generator on the front passenger of the defendant’s car and two generators on the rear passenger seat of the vehicle. The generators were in sealed boxes that had US Postage Validated Imprint indicating that they are US mail. There was another parcel containing a generator in the trunk of the car.
If convicted defendant faces up to five years of imprisonment and a $250,000 fine, as well as a period of supervised release of not more than three years. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty. Assistant U.S. Attorney Marc S. Chattah has been assigned to prosecute this case.
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United States Citizenship and Immigration Services Officer Sentenced to Prison for Accepting a BribeRead the Press Release
United States Citizenship and Immigration Services Officer Jovany Perez, 34, of Miami, Florida, was sentenced to 48 months imprisonment following his conviction for receiving a bribe while a public official.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (DHS-OIG), made the announcement.
According to the evidence, on April 20, 2017, Perez interviewed a female alien beneficiary in his capacity as a United States Citizenship and Immigration Services (“USCIS”) officer assigned to adjudicate her immigration application. The interview related to the validity of the beneficiary’s marriage, which would have afforded her lawful permanent residency in the United States if found to be valid. During the interview, Officer Perez confronted the beneficiary with his belief that her marriage was fraudulent. Perez completed and directed the beneficiary to sign a written statement, purporting to be a confession by beneficiary that she had committed marriage fraud. At the conclusion of the interview, Perez provided the beneficiary with his contact information and told her that he could help her with her case, but could not do so at the USCIS office.
Later that same day, the beneficiary contacted Perez and they scheduled to meet later that day in the parking lot of a restaurant located in Miami-Dade County. During the meeting, while sitting with the beneficiary in his vehicle, Perez fondled the beneficiary’s breasts, asked her whether she was wearing a wire, and exposed his penis to her. Perez explained to her that he was the ultimate decision maker in her case, and stated that the two could have a sexual encounter there in the vehicle. The beneficiary declined and the two agreed to meet on a later date.
On May 9, 2017, the beneficiary met with Perez and Perez informed her that he possessed her file, that he would remove her written statement from the file, and that he would replace it with another statement that he would help her draft. When the beneficiary asked Perez what she would have to do in exchange for his assistance, Perez stated that if she did not want to exchange sex, she could pay him money. The two agreed that the beneficiary would pay Perez $2,000.00 in exchange for his assistance.
On May 17, 2017, Perez accepted $2,000.00 from the beneficiary, in return for his promise to remove the previously-written statement regarding the validity of her marriage and replace it with a statement to assist her permanent residency petition. Perez was arrested that same day, and was charged by Complaint and then Indictment of Receiving a Bribe in violation of 18 U.S.C., Section 201(b)(2)(A).
On July 26, 2017, Perez pled guilty to the Receiving a Bribe charge in the Indictment.
On October 6, 2017, Perez was sentenced to a four-year term in prison, followed by a three-year term of supervised release.
Mr. Greenberg commends the investigative efforts of the DHS-OIG. This case was prosecuted by Special Assistant United States Attorneys Michele S. Vigilance and Monica V. Atkins and Assistant United States Attorney Jessica Kahn Obenauf.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two defendants sentenced to federal prison for heroin chargesRead the Press Release
HUNTINGTON, W.Va. – Two defendants who pleaded guilty earlier this year to federal drug crimes were sentenced today in Huntington, announced United States Attorney Carol Casto. Bradley William McCutchen, 36, of Detroit, was sentenced to five years in federal prison after previously pleading guilty to possession with intent to distribute 100 grams or more of heroin. In a separate prosecution, Judy Kay Smith, 59, of Huntington, was sentenced to a year and three months in federal prison and ordered to pay a $10,000 fine after previously pleading guilty to distributing heroin.
On March 28, 2015, agents with the Drug Enforcement Administration Task Force executed a search warrant at “The Sandwich Joint,” a restaurant located at 417 12th Street in Huntington. Agents had previously purchased heroin at the restaurant on several occasions. During the search, agents located and seized over 275 grams of heroin from a safe located on the second floor of the restaurant. Agents also seized various items of drug paraphernalia during the search, including packaging material, a digital scale, and multiple bottles of inositol powder, which is commonly used as a cutting agent in the preparation of heroin for distribution. McCutchen admitted that he used the restaurant to store heroin that he supplied to other individuals and distributed himself. McCutchen further admitted that between August 2014 and March 2015, he supplied the owner of the restaurant with heroin that he transported to Huntington from Detroit.
In a separate prosecution, deputies with the Cabell County Sheriff’s Department utilized a confidential informant to make a controlled purchase of heroin from Smith on January 5, 2017. Smith agreed to meet the informant in a parking lot at 4341 U.S. Route 60 in Huntington to complete the drug deal. After the informant and Smith arrived at that location, the informant entered Smith’s vehicle, where she sold the informant approximately 10 grams of heroin in exchange for $1,200 in cash. Smith also admitted that she distributed 20 grams of heroin to the informant on January 9, 2017.
On January 23, 2017, Smith agreed to distribute 20 grams of heroin to an undercover agent with the Huntington FBI Drug Task Force. Prior to that drug deal, a trooper with the West Virginia State Police conducted a traffic stop of Smith’s vehicle. Smith was arrested and found with approximately 22 grams of heroin. Agents also executed a search warrant at Smith’s residence and seized additional heroin and two firearms. As part of her plea, Smith agreed to forfeit a vehicle that was used to facilitate the heroin trafficking.
The Drug Enforcement Administration Task Force conducted the McCutchen investigation. The Huntington FBI Drug Task Force, the Cabell County Sheriff’s Department, and the West Virginia State Police conducted the Smith investigation. Assistant United States Attorney Joseph F. Adams handled the prosecutions. United States District Judge Robert C. Chambers imposed the sentences.
These prosecutions are 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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Two Individuals Charged with Securities Fraud, Money Laundering and Obstruction in Connection with Scheme to Secretly Profit from Fraudulent Stock Sales and Conceal Proceeds from the United States District Court for the Eastern District of New YorkRead the Press Release
Two individuals were charged with securities fraud, money laundering and obstruction of justice offenses in connection with a scheme to sell fraudulently registered shares of public companies and to hide and conceal these activities and the proceeds from the United States District Court for the Eastern District of New York. This case is part of the ongoing Shell Factory Fraud criminal investigation.
Randy A. Hummel, Executive Assistant United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, and Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Myron Gushlak, 47, a Canadian citizen who formerly resided in Miami Beach and the Cayman Islands, and Yelena Furman, a/k/a “Elena Furman,” 36, of New York, were charged by indictment with conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 1349; five counts of securities fraud, in violation of Title 18, United States Code, Section 1348; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); two counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i); and, obstruction of official proceeding, in violation of Title 18, United States Code, Section 1512(c)(2). The defendants face a maximum statutory sentence of twenty-five years for the conspiracy and securities fraud counts, twenty years each for the conspiracy to commit money laundering and money laundering counts, and twenty years for the obstruction count, as well as a fine up to $250,000 or double the proceeds as to each. The case is No. 17-CR-20713-CMA and is assigned to U.S. District Judge Cecilia M. Altonaga in Miami.
In related cases, seven defendants have been charged to date: Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, of El Dorado Hills, California, were charged in Case No. 16-20546-CR-RNS; Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, were charged in Case No. 16-20572-CR-CMA; Sheldon Rose, 77, of Sarasota, and Ian Kass, 45, of Ft. Lauderdale, in Case No. 16-20707-CR-JEM, and David Lubin, 52, of West Hempstead, New York, in Case No. 17-20508-CR-MGC. All seven of these defendants were convicted. Six of the seven have already been sentenced, and sentencing for Lubin is scheduled for November 2, 2017, before U.S. District Judge Marcia G. Cooke in Miami.
The indictment alleges that Gushlak was convicted of conspiracy to commit securities fraud and conspiracy to commit money laundering in Case No. 03-833-CR-NGG in the United States District Court for the Eastern District of New York (the “EDNY Criminal Case”). On November 18, 2010, the court sentenced Gushlak to 72-months imprisonment and ordered him to pay a $25 million fine due immediately. After lengthy restitution proceedings, on May 15, 2012, the court ordered Gushlak to additionally pay restitution of approximately $17.4 million, also due immediately.
The indictment alleges that while Gushlak was on bond in the EDNY Criminal Case leading up to his November 2010 sentencing, and while he was serving his prison sentence, Gushlak, Furman, Lubin, and others participated in a scheme to fraudulently register and sell securities of public shell companies. This included the fraudulent filing of documents with the U.S. Securities and Exchange Commission (SEC), using the sister-in-law of Furman as a nominee chief executive officer (CEO). This was done, according to the indictment, to conceal the role of Gushlak and his control over shares that were purportedly owned in the names of others. The indictment alleges that these shares were then sold to other co-conspirators who were located in Miami-Dade and Broward Counties, Florida, and that the shares were then illegally sold to the investing public.
In another instance, according to the indictment, after Gushlak was sentenced to federal prison and serving his sentence, Gushlak, Furman, Lubin, Sanders, McKelvey and Lamson worked together to fraudulently sell the free-trading shares of Entertainment Art, Inc. (“EERT”). The allegations include meetings with Gushlak while he was serving his federal prison sentence at which the conspirators discussed the details of the fraudulent transactions. After causing false and fraudulent flings with the SEC, the shares were then sold to criminal actors. These criminal actors were then in a position to conduct a significant pump and dump stock swindle involving Biozoom, Inc. (“BIZM”) after causing a reverse merger of EERT into BIZM.
The indictment alleges that, because Gushlak’s assets were frozen by the United States District Court in the EDNY Criminal Case, and he had been ordered to pay a $25 million fine and restitution of approximately $17.4 million, Gushlak, Furman, Sanders and others engaged in elaborate steps to hide and conceal the proceeds of these stock sales from the United States District Court in Brooklyn, New York. According to the indictment, Gushlak and Furman enlisted the assistance of Sanders and others to use the trust account of an attorney in Boca Raton, Florida, to wire the funds in such a way that they would be difficult or impossible to attribute to Gushlak. This included wiring funds to an intermediary in Switzerland and to an account controlled by Furman in New York that was used to pay Gushlak’s bills while he was in prison.
Mr. Hummel commended the investigative efforts of the FBI’s Miami and New York Field Offices. Mr. Hummel also thanked the SEC’s Miami Regional Office and Washington Home Office for their assistance with the ongoing Shell Factory Fraud investigation. This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Third Baltimore City Police Detective Pleads Guilty to Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Detective Jemell Lamar Rayam, age 37, of Owings Mills, Maryland, pleaded guilty today to one count of racketeering conspiracy including multiple robberies, and overtime fraud.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
Rayam joined the Baltimore Police Department on July 12, 2005 and was later assigned to the Gun Trace Task Force (GTTF,) a division of the Baltimore Police Department. According to the plea agreement, Rayam schemed to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Rayam prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that Rayam and his co-conspirators had stolen money, property, and narcotics from individuals.
According to his plea agreement, beginning in 2009, Rayam robbed civilians he detained and in some cases arrested and stole money and drugs from them. Rayam shared the proceeds with co-defendants Momodu Gondo, Wayne Jenkins, Daniel Hersl, Marcus Taylor, and others, and on other occasions, he kept all of the proceeds for himself. Rayam also sold, through associates of his, drugs that Jenkins stole from detainees and arrestees, gave them to Rayam, and split the proceeds of those sales with his co-defendant.
Rayam participated in 15 robberies from June 2014 through October 2016. Rayam admitted that he was armed with his BPD service firearm during the robberies, that individual victims of the robberies were physically restrained to facilitate the commission of the offense, and that he authored false and fraudulent incident reports and other official documents in some cases in order to conceal his criminal conduct and otherwise obstruct justice.
Rayam also robbed detainees and arrestees with another police officer, who was not a member of the GTTF. Rayam and this other police officer would falsely represent that they had a search warrant, when they did not, in order to gain access to someone’s home and would then steal money and other things of value. In addition, Rayam had an associate who would inform him when a drug dealer had a significant amount of cash in his home and when the associate knew that the drug dealer would not be in the home. Rayam would then rob the drug dealer’s home with the assistance of other associates of his who were not police officers.
On October 5, 2016, Rayam and his co-conspirators robbed a drug dealer after he and Gondo placed a tracking device on the victim’s car without court authorization so that they could rob his apartment when he was not home. Rayam and Glen Kyle Wells entered the victim’s apartment. Rayam was wearing a ski mask and was armed with a BPD-issued firearm. Rayam and Wells stole a Rolex watch, a firearm, $12,000 to $14,000 in cash, and at least 800 grams of heroin. After the robbery, Rayam and his co-conspirators split the money they had stolen. Wells took the drugs and money, and Wells sold some of the drugs and gave Rayam a portion of the proceeds. Wells then gave Rayam a quantity of drugs that he had been unable to sell, which Rayam in turn sold through an associate.
On June 27, 2014, Rayam and his co-defendants executed a search and seizure warrant at a store that sold birdseed. No illegal contraband or firearms were found at the location. The storeowners, a married couple, had $20,000 in cash at the store that they intended to use to pay off tax liabilities they owed on two homes. Rayam later contacted two associates and agreed to rob the home of the storeowners. The associates presented themselves as police officers and stole $20,000, while Rayam remained in the car so he could intercept the police officers that responded to the incident by pretending to respond to the incident himself. Rayam split the proceeds with his associates.
On March 11, 2015, Rayam, Gondo and Sergeant A, as well as Sergeant A’s son, who was not a police officer, searched a residence and discovered a large quantity of cash. Rayam, Gondo and a BPD Sergeant each took some of the cash. Rayam took between $8,000 and $10,000. Sergeant Thomas Allers has been charged in a separate indictment with Racketeering Conspiracy and Racketeering. Allers is detained pending trial.
On July 8, 2016, Rayam and his co-defendants Hersl and Gondo detained two victims after a car stop. Rayam stole money from one of the victims. At Jenkins’s direction, Hersl, Rayam, and Gondo transported the two victims to a BPD office to interrogate them. Jenkins told his co-conspirators to treat him like he was the U.S. Attorney. After speaking with one of the individuals, Jenkins, Hersl, Gondo, and Rayam then transported both of the victims to their home and robbed them of $20,000. Jenkins, Hersl, Rayam, and Gondo divided the $20,000. Rayam authored a false incident report to conceal the stolen money, which Jenkins approved.
In the fall of 2016, Jenkins approached Rayam and asked him to sell drugs that Jenkins had stolen from detainees. Rayam agreed and sold the drugs Jenkins gave him and shared the proceeds with Jenkins. Jenkins maintained that Rayam owed him money for drugs that Jenkins had given him. After seizing a firearm and marijuana, Jenkins told Rayam to sell the firearm and marijuana in order to pay Jenkins for money that Jenkins believed Rayam owed him. Gondo subsequently arranged for an associate of his, who was a drug dealer, to buy the firearm and marijuana. That associate of Gondo’s gave Rayam money for the sale of the firearm and marijuana.
According to the plea agreement, Rayam also admitted that he routinely submitted false and fraudulent individual overtime reports defrauding the Baltimore Police Department and the citizens of the State of Maryland. On these reports, Rayam falsely certified that he worked his entire regularly assigned shifts, when he did not, and that he worked additional hours for which he received overtime pay, when he had not worked all and in some cases any of those overtime hours. Rayam also admitted that he submitted false and fraudulent overtime reports on behalf of his co-defendants.
Lastly, Rayam admitted to obstructing law enforcement by alerting his co-defendants about potential investigations of their criminal conduct, coaching each another to give false testimony to investigators from the Internal Investigations Division of the BPD, and turning off his body cameras to avoid recording encounters with civilians.
Rayam faces a maximum sentence of 20 years in prison.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Theodore Resident Sentenced to 42 Months for Being a Felon in PossessionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that United States District Judge William H. Steele sentenced David Lee Wesley, 60, of Theodore, Alabama, to 42 months imprisonment. The judge ordered that Wesley pay a $100 special assessment, undergo three years of supervised release after completing his prison term, and participate in drug and/or alcohol treatment as directed by the United States Probation Office.
In December 2016, law enforcement officials learned that Wesley, aka “Bubba,” was allegedly selling crack cocaine from his home in Theodore. On December 13, 2016, a confidential informant, acting under the supervision of law enforcement officials, purchased roughly one gram of crack cocaine from Wesley at his home. On December 16, 2016, Mobile County Sheriff’s Office Deputy Ronald Moody obtained a state warrant to search the premises. On December 21, 2016, government agents executed the warrant at Wesley’s home and found, among other items, a .38 Ultra Lite Special Revolver loaded with five rounds of live ammunition, a single shot Stevens Model Number 940 B shotgun, a Marlin .22-caliber rifle with one magazine and one live round, and one silver pipe with suspected crack cocaine. Law enforcement officials Mirandized Wesley, who admitted that he possessed the firearms. Wesley has several prior felony convictions, which prohibit him from knowingly possessing any firearms or ammunition.
In February 2017, a federal grand jury for the Southern District of Alabama charged Wesley with being a felon in possession. On June 29, 2017, Wesley pleaded guilty to the offense before Judge Steele.
The Mobile County Sheriff’s Office and the Federal Bureau of Investigation investigated the case. Assistant United States Attorneys Maria Murphy and Sinan Kalayoglu prosecuted the case.
Tennessee Woman Convicted of Stolen ID Refund FraudRead the Press Release
An Antioch, Tennessee, woman was convicted today by a federal jury sitting in Nashville, Tennessee, of eight counts each of wire fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee.
According to the indictment and evidence presented at trial, in January and February 2012, Monique Ellis, used stolen IDs, including those of prisoners held by the Alabama Department of Corrections, to file tax returns with the Internal Revenue Service (IRS) seeking fraudulent refunds. Ellis directed the fraudulently obtained refunds to bank accounts that she controlled, causing a tax loss of $121,851.10.
Sentencing is scheduled for Jan. 9, 2018 before U.S. District Court Judge Gershwin A. Drain. Ellis faces a statutory maximum sentence of 20 years in prison for each count of wire fraud and a mandatory two year sentence for each count of aggravated identity theft. She also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Cochran thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Henry Leventis, and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Tahlequah Man Sentenced to 120 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that SAMUEL NOLAN DOTY, age 47, of Tahlequah, Oklahoma, was sentenced to 120 months imprisonment to run consecutive to a 7 year state prison sentence out of Cherokee County, Oklahoma for being a Felon in Possession of a Firearm, and 10 years of supervised release for POSSESSION OF CERTAIN MATERIAL INVOLVING THE SEXUAL EXPLOITATION OF MINORS, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The Indictment alleged that between on or about April 17, 2014, and on or about August 24, 2016, in the Eastern District of Oklahoma, the defendant, did knowingly possess, attempt to possess and access with intent to view matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charge arose from an investigation by the Cherokee County Sheriff’s Office, the United States Marshal’s Service, and the Federal Bureau of Investigation. U.S. Attorney Brian J. Kuester said, “I commend the hard work of the county and federal law enforcement agencies that worked together. Without thorough investigations this agency would not have the ability to successfully prosecute cases.”
The Honorable James H. Payne, U.S. 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 Edward Snow represented the United States.
Statement of Acting United States Attorney David C. Weiss on the Wilmington Trust Corporation SettlementRead the Press Release
"Wilmington Trust Company (WT) has been a fixture in this community for more than 100 years. This is why the bank’s decline and the fire sale acquisition by M&T Bank was such a significant development in this community; and why this office has invested substantial time, energy and resources in the investigation and prosecution of this case.
The United States Attorney’s Office fort the District of Delaware has reached a resolution with WT. The key terms, from our perspective, are as follows:
- WT admits that it agreed to submit Monthly Regulatory Reports to the Federal Reserve between October 2009 and July;
- Those reports included past due loan information.
- The past due loan numbers submitted to the Federal Reserve did not include past due loans that WT chose to “waive.”
We say that those monthly reports were false. These facts and those set forth in the Civil Forfeiture Complaint filed earlier today, provide a basis to forfeit the proceeds of this unlawful activity.
- As a result, WT and the USAO have agreed to a total settlement amount of $60,000,000, which credits WT with its prior payment to the SEC in the amount of $16,000,000, and requires an additional forfeiture payment of $44,000,000.
- Further, WT agrees to cooperate with the USAO moving forward. In return, the USAO has agreed to dismiss all criminal charges pending against WT, and the parties have agreed to exchange mutual releases.
To function effectively, our financial markets require accurate disclosures—and regulators need to receive accurate information.
That didn’t happen here.
We believe today’s resolution accomplished three important objectives. First, we secured a substantial payment for victims who sustained losses as a result of what transpired. Second, WT accepted responsibility for its actions. And third, if possible, we wanted to avoid the collateral consequences of a criminal conviction for the bank, which could have resulted in the loss of jobs and revenue for our community."
St. Louis Man Pleads Guilty to Possession of an Unregistered Pipe BombRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Paul Ryan Owens, 30, St. Louis, Missouri, pled guilty on Friday, October 6, 2017, to unlawful receipt and possession of an unregistered destructive device, the offense occurring on July 28, 2017, in Madison County, Illinois. Owens faces up to ten years of imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment.
According to court documents, beginning on July 20, 2017, through the time of his arrest on July 28, 2017, Owens solicited a pipe bomb, specifying that he wanted it to be four inches in length with hardened steel end caps containing black powder with a one and a half to two feet long fuse. On July 28, 2017, Owens accepted a toolbox containing a pipe bomb constructed by an ATF bomb expert in such a manner that it would only smoke if detonated. Owens had not registered the pipe bomb in the National Firearms Registration and Transfer Record. Owens looked into the toolbox and indicated that the pipe bomb was as he requested and provided morphine pills in exchange for the pipe bomb. Law enforcement immediately arrested Owens.
The investigation of Owens was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Hamel Police Department.
Schuylkill County Man Guilty of Participating in A Heroin and Methamphetamine Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Derek Mountz, age 33, pleaded guilty today before Senior U.S. District Court Judge A. Richard Caputo, to participating in a conspiracy to distribute heroin and methamphetamine in Schuylkill and Berks Counties.
According to United States Attorney Bruce D. Brandler, Mountz admitted to conspiring with others to distribute more than 100 grams of heroin (which is equivalent to more than 4,000 retail bags of heroin) and more than 50 grams of methamphetamine during April through October of 2016.
Mountz was indicted by a federal grand jury in January 2017, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
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’ imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of five years’ imprisonment for the offense. 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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Schenectady Man Sentenced for Possession of Handgun as a Convicted FelonRead the Press Release
ALBANY, NEW YORK – Tameen “Nitty” Johnson, 39, of Schenectady, New York, was sentenced today to serve 235 months in prison for illegally possessing a loaded handgun as a prior convicted felon. Senior U.S. District Judge Thomas J. McAvoy also ordered that Johnson serve a five-year term of supervised release following his release from federal prison.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
After a three-day jury trial in January 2017, Johnson was convicted of possessing a Hi-Point JCP .40 caliber firearm loaded with seven rounds of .40 caliber ammunition. The evidence at trial established the handgun had a defaced serial number and that Johnson provided it to another man inside a convenience store in Schenectady in exchange for $200. Johnson, after asking if the firearm would be used “to book somebody,” showed the man how to operate the firearm so that he could “handle his business,” and repeatedly warned him not to lose the “hammer.”
Johnson, who was charged as an Armed Career Criminal because he has at least three previous convictions for serious drug offenses or violent felonies, faced a mandatory minimum sentence of fifteen years in prison and a maximum sentence of life imprisonment. Johnson’s prior criminal history includes prior felony convictions for drug offenses, attempted robbery, attempted burglary, and assault.
This prosecution resulted from an investigation by the Capital District Safe Streets Task Force, which includes members of the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives, the New York State Police, the Schenectady Police Department, the Schenectady County District Attorney’s Office, the New York State Department of Corrections and Community Supervision, the Albany County Sheriff’s Office, and the New York Air National Guard.
The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
Robert J. Higdon, Jr. Sworn in as United States AttorneyRead the Press Release
RALEIGH – Robert J. Higdon, Jr. has taken the oath of office to become the United States Attorney for the Eastern District of North Carolina. Mr. Higdon was nominated by President Donald Trump on August 2, 2017 and confirmed by the United States Senate on September 28, 2017. He took the oath of office from Chief United States District Judge James C. Dever.
Mr. Higdon stated, “It is an honor and a privilege to serve the people of the Eastern District of North Carolina as United States Attorney. I am grateful to President Trump for this opportunity and I want to thank Senators Richard Burr and Thom Tillis for their strong support though the confirmation process.”
As U.S. Attorney, Mr. Higdon is the top-ranking federal law enforcement official in the Eastern District of North Carolina, which includes the 44 eastern most counties of North Carolina. He oversees a staff of 108 employees, including 51 attorneys and 57 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Mr. Higdon, a Greensboro native, spent nearly 24 years as a federal prosecutor, including serving as an Assistant United States Attorney in both the Western and Eastern Districts of North Carolina. He has supervised and prosecuted a wide range of criminal cases, including narcotic traffickers, white collar and public corruption matters, mail and wire fraud, bribery, false statements, Foreign Corrupt Practices, violations of the Federal Election Campaign Act, violations of import/export regulations, money laundering, theft of government property and violations involving government contracting and programs. Mr. Higdon has been involved in a number of high-profile cases, including the investigation and resolution of violations by a private security firm, a criminal investigation that returned North Carolina's Original Copy of the Bill of Rights to the State more than 130 years after it was stolen by Federal Troops, the prosecution of numerous public officials in North Carolina and in other states and was co-lead counsel in the prosecution of former United States Senator and former Presidential candidate John Edwards.
Mr. Higdon received his J.D. in 1989 from the Wake Forest University School of Law and his B.A. in 1985 from Wake Forest University. He is a member of the North Carolina State Bar and the State Bar of Georgia.
Raleigh Man Who is a Convicted Sex Offender Sentenced to 20 Years for the Receipt of Child PornographyRead the Press Release
GREENVILLE – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced THOMAS PAUL KEELER, II, 48, from Raleigh to 240 months in prison, lifetime of supervision upon release and a $5,000.00 fine for the Receipt of Child Pornography (CP). KEELER pled guilty to the charge on May 12, 2017.
On February 26, 2016, the Homeland Security Investigation (HSI) in Tampa, Florida contacted HSI in Raleigh utilizing an unidentified smart phone to post child pornography (CP) in several chatrooms. After identifying the subscriber of the chatroom, an undercover agent (UC), posing as the father of a 13-year-old female, subsequently contacted the individual.
The perpetrator’s chat conversations were graphic and explicit in nature as he repeatedly expressed a desire to meet the UC and his fictional 13-year-old daughter in person. He and the UC subsequently arranged a meeting at the Red Roof Inn (RRI) in Cary, North Carolina. The suspect made it clear through his chat conversations that his intentions were to engage in sexually prohibited conduct with the 13-year-old female. Agents located the suspects profile page and utilized facial recognition software to identify THOMAS PAUL KEELER, II, a registered sex offender, as the individual utilizing the chatroom.
On March 24, 2016, agents arrested KEELER as he entered the RRI parking lot. A search of KEELER’s vehicle incident to his arrest uncovered a condom and a pair of handcuffs. Additionally, the defendant’s smartphone was seized. Subsequent to his arrest, KEELER provided an unprotected statement to authorities. Specifically, the defendant acknowledged being previously arrested and convicted of Transportation of Child Pornography; however, he noted that he pulled into the RRI parking lot in order to send a text to a friend.
A search warrant was executed on KEELER’s residence where agents seized two computers, a hard drive, and a flash drive. Additionally, several pairs of women’s underwear and multiple sex toys were located. A forensic preview of the defendant’s smartphone revealed multiple groups in a chatroom utilized for CP, related to the distribution of CP. Investigation confirmed the defendant acted as an administrator for one group that traded CP. In order to become a member of the group, an individual was required to post an image of CP or he/she was banned from entering the group. KEELER also distributed/traded CP via a Dropbox account to members in the chat group. Agents found 51 videos containing CP in Dropbox links. Investigation also revealed KEELER engaged in multiple chat conversations with “young girls” between August 8, 2015, and March 24, 2016.
Forensic examination of KEELER’s smartphone and computer equipment revealed at least 1,433 images of CP and 470 videos containing CP. KEELER’s collection of CP contained images and videos of infants. Furthermore, several videos depicted sadistic or masochistic conduct or other depictions of violence.
KEELER was previously convicted of Transportation of Child Pornography in Interstate Commerce in this District on September 5, 2000.
The case was investigated by Homeland Security Investigations (HSI) and the Cary Police Department. The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Pittsburgh Man Charged with Heroin and Fentanyl Trafficking, Firearms ViolationsRead the Press Release
PITTSBURGH – Michael Ginyard, Jr. has been indicted by a federal grand jury in Pittsburgh for heroin and fentanyl trafficking and committing related firearm crimes, Acting United States Attorney Soo C. Song announced today.
The indictment charges Ginyard Jr., age 30, with committing the following crimes in January and February 2017: (1) possession of heroin and/or fentanyl with intent to distribute, (2) attempt to distribute heroin, (3) possession of a firearm and/or ammunition after five felony convictions for heroin and cocaine trafficking, and (4) possession of a firearm in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of at least 20 years and up to life in prison and a fine of up to $6,750,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Pittsburgh Bureau of Police, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Penn Hills Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Charged with Illegally Possessing Pistol and AmmunitionRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal firearms laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Deondre Steave, age 24.
According to the indictment, on or about September 28, 2017, Steave, an individual with prior felony convictions for Conspiracy to Possess with the Intent to Distribute 100 Grams or More of Heroin and Escaping from Federal Custody, did knowingly and unlawfully possess a Kahr CW .40 caliber pistol and ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
For Steave’s offense, the law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Admits Kickback Conspiracy Involving Military Parts for the U.S. NavyRead the Press Release
NEWARK, N.J. – The assistant purchasing manager for a company that manufactured military parts for the U.S. Navy today admitted soliciting and receiving kickbacks in return for providing subcontract work to a Cherry Hill, New Jersey, company, Acting U.S. Attorney William E. Fitzpatrick announced.
Christopher Sanchirico, 55, of King of Prussia, Pennsylvania, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to violate the federal anti-kickback act. He was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Sanchirico was the assistant purchasing manager for an entity identified in the information as “Subcontractor 1,” which was located in Philadelphia and manufactured shock-hardened circuit breakers and switchgears for installation on U.S. Navy surface ships, submarines, and aircraft carriers. Subcontractor 1 performed work on multiple U.S. Navy and Defense Logistics Agency maritime contracts as a first-tier subcontractor to a prime contractor working for the United States.
In July 2013, Sanchirico made an agreement with an entity identified in the information as “Subcontractor 2,” a machine shop in Cherry Hill, through Subcontractor 2’s president, identified in the information as “Individual 1.” In return for his assistance in securing a manufacturing contract between Subcontractor 1 and Subcontractor 2, Sanchirico received between five and 10 percent of the gross revenue from circuit breaker and switchgear components that Subcontractor 2 provided to Subcontractor 1. Subcontractor 2’s secretary, identified in the information as “Individual 2,” maintained records of the payments and sometimes made bank withdrawals for the kickbacks when Individual 1 was unable to do so.
From 2013 to 2016, Sanchirico received approximately $150,000 in cash kickbacks from Subcontractor 2.
Sanchirico faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Jan. 23, 2018.
Acting U.S. Attorney Fitzpatrick credited agents of the Naval Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont in Newport, Rhode Island, and agents of the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the investigation leading to the guilty plea. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania, under the direction of Acting U.S. Attorney Louis D. Lappen, for its assistance.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.
Defense counsel: Michael Drossner Esq., Philadelphia
Owner of Hanford Subcontractor to Pay $235,000 to Settle Small Business Fraud AllegationsRead the Press Release
Spokane - Joseph H. Harrington, Acting United States Attorney for the Eastern District of
Washington, announced that the U.S. Department of Justice (DOJ) and Sage Tee LLC (Sage Tee), a
subcontractor at the Department of Energy's (DOE) Hanford Site, and its owner, Laura Shikashio,
have reached an agreement wherein Sage Tee and Ms. Shikashio have agreed to pay $235,000 to
resolve allegations that they violated the False Claims Act (FCA) in connection with bidding -
receiving two small business subcontracts at DOE's Hanford nuclear site.
Between 2005 and 2016, Washington Closure Hanford, LLC (WCH), a jointly owned by AECOM,
Bechtel National Inc., and CH2M Hill Companies Ltd., was a DOE prime contractor that was
awarded a multi-billion dollar River Corridor Closure Contract (RCC) at DOE's Hanford Site.
WCH was responsible for environmental remediation on Hanford's River Corridor. WCH workers
were responsible for cleaning up waste sites at Hanford, decontaminating and decommissioning
former plutonium production nuclear reactors and surplus facilities, and disposing of contaminated
waste. The RCC required WCH to award a certain percentage of subcontracts to eligible and
qualified small and disadvantaged businesses, including woman-owned small businesses. Pursuant
to the WCC, DOE fully reimbursed WCH for the amounts WCH paid to subcontractors so long as
they were reasonable and allowable under the contract.
The case originally arose out of a whistleblower complaint filed in U.S. District Court by Savage
Logistics LLC, a Hanford-area small business, and Salina Savage, its owner. In December 2013, the
United States filed a Complaint intervening in the lawsuit, alleging that WCH, Sage Tee LLC (an
entity that purported to be a small, disadvantaged business), Laura Shikashio, the owner of Sage Tee,
and another entity known as Federal Engineers and Constructors (FE&C), violated the False Claims
Act (FCA) with respect to two multi-million dollar subcontracts arranged between WCH and Sage
Tee. The Complaint alleges that WCH, Sage Tee, Ms. Shikashio, and FE&C knowingly
misrepresented Sage Tee to be a qualified disadvantaged small business in order to he eligible for
two multi-million dollar subcontracts that were designated for truly qualified small disadvantaged
businesses. The Complaint further alleges that Sage Tee was not a legitimate small, disadvantaged
business; rather it was a pass-through front company for FE&C, which performed substantially all of
the work on WHC's improperly awarded subcontracts. This settlement resolves Sage Tee and Ms.
Shikashio's liability. See attached Settlement Agreement.
Last month, FE&C agreed to pay $2.0 Million to resolve its own liability exposure. WCH continues
to deny liability and the United States' case against WCH continues.
Joseph H. Harrington said, "Small business fraud not only harms the taxpayers and the vital cleanup
mission at Hanford, but also legitimate small, disadvantaged businesses that are cheated from the
opportunity to fairly compete for and perform DOE subcontracts. I want to commend the
Department of Energy Office oflnspector General (DOE-OIG) and the Small Business
Administration Office of Inspector General (SBA-OIG) for the outstanding efforts investigating and
uncovering the scheme perpetrated here. Harrington added, "The United States Attorney's Office
for the Eastern District of Washington, together with our federal law enforcement partners, will
continue to vigorously pursue large and small business fraud at Hanford."
"The false statements in this case were intended to deceive the government into believing that a
woman-owned small, disadvantaged business was performing valuable work as a government
subcontractor," said Small Business Administration Acting Inspector General Hannibal "Mike"
Ware. "OIG will aggressively pursue parties that, through fraud, gain access to SBA's small
business contracting programs. I want to thank the U.S. Attorney's Office for their dedication to
enforcing compliance in SBA's contracting programs."
Department of Energy Acting Inspector General April G. Stephenson said, "The Department of
Energy Office of Inspector General is committed to ensuring the integrity of Departmental contracts
and financial expenditures. We will continue to investigate allegations of fraudulent diversion of tax
dollars throughout DOE programs. This settlement is a result of our staffs dedicated work to ensure
public funds are properly used for the mission-related purposes for which they are intended. We
appreciate the support of Department of Justice's and Department of Energy's attorneys in these
matters."
The Savage whistleblowers will receive approximately $47,000 of the $235,000 settlement DOJ
reached with Sage Tee and Shikashio due to their own private efforts in reporting and exposing the
described scheme to the DOE and DOJ.
DOE-OIG and SBA-OIG conducted the investigation on the Relators' whistleblower complaint.
The DOJ's lawsuit is being prosecuted by Tyler H.L. Tornabene, Vanessa R.Waldref, and Daniel
Fruchter, Assistant United States Attorneys for the Eastern District of Washington.
This case is captioned United States of America ex rel. Salint;J Savage, Savage Logistics LLC, vs.
Washington Closure Hanford LLC, Federal Engineers and Constructors, Inc., Sage Tee LLC, and
Laura Shikashio, EDWA Cause No. CV-10-5051-SMJ.
Old Saybrook Resident Pleads Guilty to Multiple Tax OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DAVID ADAMS, 56, of Old Saybrook, pleaded guilty today in Hartford federal court to a six-count superseding indictment charging him with various tax offenses. A trial in this matter was scheduled to start today.
According to court documents and statements made in court, in the early 1980s, and then continuing from 1996 onward, ADAMS was substantially delinquent in filing his tax returns and paying amounts owed to the IRS. Starting at least as early as 1998, ADAMS repeatedly engaged with IRS collections officers tasked with trying to get ADAMS into compliance with the tax laws. Although IRS collections officers repeatedly advised ADAMS about his obligations to pay estimated taxes, he continually failed to pay those taxes on time or in sufficient amounts.
As part of this tax fraud scheme, ADAMS engaged the services of a certified public accountant to prepare his personal tax returns beginning in approximately 1993, and then repeatedly failed to give the accountant complete, accurate information.
In 2002, ADAMS sold an online floral business, which accounted for a significant portion of more than $6 million in taxable income he claimed on his 2002 tax return. Although ADAMS represented to the IRS in August 2003 that he was enclosing payment of $1,250,000, no such payment was enclosed and ADAMS never made the payment.
In June 2011, ADAMS sold his partnership interest in another online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale. Although he knew that he owed substantial taxes on that amount, ADAMS engaged in a number of affirmative acts to conceal and attempt to conceal this income in order to evade the assessment of a tax including: (1) failing to tell his accountant about the $4,708,419.20 in income ADAMS received in 2011; (2) providing the accountant with false information about ADAMS’s estimated tax payments for the year, telling the accountant that he had paid $220,000 when in fact, ADAMS knew he had only paid $100,000 in estimated taxes for 2011; (3) causing the accountant to prepare his 2011 tax return with false and fraudulent information; and (4) representing to an IRS revenue officer who was responsible for collecting ADAMS’s delinquent tax payments and securing ADAMS’s overdue tax returns, that he had hoped to have funds to pay down his back tax liability (including tax liability associated with the 2002 sale), but that nothing had been “panning out.” ADAMS failed to disclose to the revenue officer that he had received $4,708,419.20 in cash less than three weeks earlier.
In June 2012, ADAMS received an additional $1,320,609.59 into his personal bank account as net proceeds of the 2011 sale. Although he knew that he owed substantial taxes on that amount, ADAMS failed to disclose the income to his accountant, and failed to declare it on his tax return for that year.
In total, ADAMS engaged in a more than 16-year effort to inhibit the IRS’s efforts to collect back taxes from him. Among other things, ADAMS bounced checks to the IRS; told IRS collections officers that payment had been sent when it had not; promised to pay delinquent tax liabilities in full and then delayed payment, made only partial payment, failed to pay at all, or paid off one liability while leaving another liability unpaid; claimed that he lacked funds to pay his delinquent tax but failed to disclose that he had access to enough cash to fully pay back his tax liabilities; filed false and fraudulent returns with the IRS; overstated the amounts of estimated taxes paid to the IRS, and failed to declare more than $6 million in income to the IRS.
ADAMS was arrested on a federal criminal complaint on April 14, 2016.
On December 6, 2016, a grand jury returned a superseding indictment charging ADAMS with two counts of tax evasion, three counts of making and subscribing a false tax return, and one count of attempting to interfere with the administration of the IRS laws. Each tax evasion offense carries a maximum term of imprisonment of five years, each count of filing a false tax return carries a maximum term of imprisonment three years, and the interference charge carries a maximum term of imprisonment of three years.
ADAMS is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on January 11, 2018.
As of October 2016, ADAMS owed more than $4.7 million in back taxes, interest and penalties for tax years 2002, 2006, 2007, 2008, 2009, 2011, and 2012. Interest and penalties have continued to accrue since that time.
ADAMS is released on a $500,000 bond pending sentencing.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Susan L. Wines and Jennifer R. Laraia.
North Providence Resident Charged with Producing, Possessing Child PornographyRead the Press Release
PROVIDENCE – Francis Scott, 36, of North Providence, made an initial appearance in federal court in Providence today on a federal criminal complaint charging him with producing and possessing child pornography, announced Acting United States Attorney Stephen G. Dambruch; Rhode Island Attorney General Peter F. Kilmartin; Providence Police Chief Hugh T. Clements, Jr.; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
Scott was ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan.
According to information presented to the Court, it is alleged that on February 14, 2017, Scott offered a juvenile female a ride to her Providence high school. Instead of driving her to the school, Scott allegedly drove to a parking lot behind a Providence building where he allegedly sexually assaulted the juvenile female while in his car. It is alleged that Scott video recorded the assault on his cell phone.
According to information presented to the court, it is alleged that after Scott attacked the young female, he drove her to a parking lot near the high school and dropped her off. The victim fled into the school and reported the attack.
According to information presented to the Court, Providence Police officers and detectives, including a detective assigned to the Providence Police Major Crimes Unit and Special Victims Unit, and who is a member of the FBI Child Exploitation Task Force, canvassed the area where the student was allegedly picked up and where the alleged attack took place. Over the next several days, piecing together information and evidence gathered from several locations, including video surveillance, investigators identified the vehicle allegedly used in the assault. The vehicle was traced back to Scott’s girlfriend. It was determined that Francis Scott was allegedly driving the vehicle the day of the assault.
Francis Scott was arrested by Providence Police on February 23, 2017, and charged in Rhode Island state court with kidnapping and second-degree sexual assault. The investigation into Scott’s alleged criminal activities continued after the arrest. Scott was subsequently indicted by a Rhode Island state grand jury on May 17, 2017, on one count each of kidnapping of a minor with intent to sexually assault, 2nd degree sexual assault, assault with dangerous weapon, 1st degree sexual assault , 2nd degree robbery and 3 counts of 2nd degree sexual assault. He was ordered detained at the Adult Correctional Institutions.
The Providence Police Department and the FBI continue to investigate the alleged criminal conduct of Francis Scott. Anyone with information concerning these alleged matters, or who believe they may have been a victim of Scott’s alleged criminal conduct, are urged to contact the Providence office of the FBI at (401) 272-8310.
The case against Francis Scott in federal court is being prosecuted by Assistant U.S. Attorney Denise M. Barton. Cases charges in Rhode Island Superior Court are being prosecuted by Rhode Island Special Assistant Attorney General Meghan McDonough.
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Newark, New Jersey, Registered Sex Offender Sentenced to 21 Years in Prison for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that TERRICK WASHINGTON, 45, a registered sex offender, was sentenced to 262 months in prison by United States District Judge Kenneth M. Karas for his attempted enticement of a minor to engage in sexual activity. Judge Karas also imposed a 5-year term of supervised release to follow the prison term. The sentencing today followed WASHINGTON’s guilty plea on March 8, 2017.
Acting U.S. Attorney Joon H. Kim stated: “Protecting children from those who prey on them is a priority for this Office and our partners at the FBI. As today’s sentencing demonstrates, we will use every tool available to law enforcement to prosecute and punish those who sexually exploit children.”
According to documents filed in this case and statements made in related court proceedings:
On or about December 21, 1993, Washington was convicted in New Jersey of Aggravated Sexual Assault and sentenced to a 15-year prison term. As a result of that conviction, he was required to register in New Jersey as a sexual offender.
In November 2015, an individual (the “Reporter”) advised the FBI that the Reporter, posing as a 13-year-old girl, had engaged in online communications with a person using the screen name “X.Terrick..X.” During the communications, “X.Terrick..X” indicated that “X.Terrick..X” wanted to engage in sexual activities with the Reporter. The FBI instructed the Reporter to continue to engage in discussions, to provide the FBI with daily logs of the communications, and to attempt to arrange a meeting with “X.Terrick..X.”
Between November 6, 2016, and November 27, 2015, the Reporter and “X.Terrick..X,” later identified as TERRICK WASHINGTON, engaged in a series of text communications. Among other things, the Reporter told WASHINGTON she was 13 years old and WASHINGTON told the Reporter that he was 44 years old. During the communications, WASHINGTON described in detail a variety of sexual acts he wanted to perform on the 13-year-old and made arrangements to meet her in Orange County, New York.
On November 28, 2015, WASHINGTON was arrested when he arrived at the Harriman Metro North Station, in Harriman, New York. Following his arrest, he admitted that he had met a young girl on the internet while using a chat application from his cell phone and that he made arrangements to meet her so that he could have sex with her. Initially, WASHINGTON said that the girl told him she was 15, but he later admitted that, in fact, the girl said she was 13. WASHINGTON also said that he had been convicted of a sex offense when he was 18 involving a 5-year-old girl and that, as a result of that conviction, he is required to register as a sex offender.
Mr. Kim praised the efforts of the Federal Bureau of Investigation, the Orange County District Attorney’s Office, the Orange County District Attorney’s Investigators, and the Orange County Sheriff’s Department in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
More Than $5.2 Million in Federal Grants Awarded to Agencies in the Western DistrictRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that $5,270,994 in federal grants have been awarded to local law enforcement agencies, non-profit organizations, and tribal government programs in the Western District of North Carolina. The federal grants are administered by multiple awarding agencies, which are components of the Justice Department’s Office of Justice Programs (OJP).
“Federal grants are an important funding source for a broad spectrum of agencies in the Western District. Local law enforcement, non-profit service providers, community organizations and tribal governments count on federal grants to supplement their resources, launch new initiatives, support existing programs, and provide important services to their communities. The awarded grants will be used to enhance the Justice Department’s and my Office’s efforts to reduce violent crime, assist victims of crime, enhance access to services and increase public safety throughout this district,” said U.S. Attorney Rose.
The recipients of the grants are:
City of Charlotte: Two federal grants totaling $1,431,708 were awarded to the Charlotte-Mecklenburg Police Department (CMPD). Specifically, $1,125,606 will be used to sustain and expand CMPD’s current testing of Sexual Assault Kits (SAKs), to reduce the existing number of SAKs in its inventory, and to update CMPD’s current technology related to SAKs. Another $306,102 has been awarded to enhance CMPD’s current DNA analysis process, to reduce the current number of DNA cases and to maintain CMPD’s laboratory capabilities.
Mecklenburg County: The County will receive a total of $718,794 in federal grants, of which $368,798 will be used to support the County’s implementation of the Mecklenburg County Systemic Response Plan to the opioid crisis, including, to gather information about and enhance services to targeted populations. The Mecklenburg County Community Support Services Department will receive a $349,996 federal grant, to provide housing and supportive services to 20 victims of domestic violence, sexual assault, dating violence or stalking and their families.
Eastern Band of Cherokee Indians (EBCI): As the recipients of three federal grants totaling $1,720,442, EBCI will apply the awarded funds to combat violence against women in Indian Country, improve public safety, serve victims of crime, increase access to victim services including housing and legal assistance, coordinate outreach and awareness activities, and support youth programs in Indian Country.
30th Judicial District Domestic Violence-Sexual Assault Alliance: The grantee has been awarded $600,000 toward increasing victim advocacy and providing comprehensive legal services to victims of domestic violence, sexual assault, dating violence and stalking in Cherokee, Clay, Graham, Haywood, Jackson, Macon and Swain Counties in Western North Carolina.
Haywood County: As recipient of a $450,000 grant, the County will collaborate with the 30th Judicial District Domestic Violence-Sexual Assault Alliance to provide centralized and comprehensive services to victims of domestic violence, sexual assault, dating violence and stalking. A portion of the funds will be used to provide sexual assault training for law enforcement officers, technical assistance related to investigations, and services to specific victims.
Helpmate, Incorporated: Awarded $350,000, Helpmate, in cooperation with the Housing Authority of the City of Asheville, will use the grant to provide, among other things, permanent housing and supportive services to 20 survivors of domestic violence, sexual assault, dating violence or stalking and their families.
Office of Justice Programs (OJP) and current OJP funding opportunities can be found at: https://ojp.gov/funding/index.htm
The Office on Violence Against Women (OVW) administers grant programs authorized by the Violence Against Women Act (VAWA) of 1994 and subsequent legislation. For a list of OVW grant programs and additional grant funding information please visit: http://www.justice.gov/ovw/grant-programs.
The Bureau of Justice Assistance (BJA) provides leadership and assistance to local criminal justice programs that improve and reinforce the nation’s criminal justice system. BJA’s goals are to reduce and prevent crime, violence, and drug abuse and to improve the way in which the criminal justice system functions. BJA works closely with programs that bolster law enforcement operations, expand drug courts, and provide benefits to safety officers. BJA Funding announcements are posted at: https://www.bja.gov/funding.aspx.
The National Institute of Justice (NIJ) is the research, development and evaluation agency of the U.S. Department of Justice, dedicated to improving knowledge and understanding of crime and justice issues through science. For additional information and to locate a funding opportunity please visit:
http://www.nij.gov/funding/Pages/welcome.aspx.
Middleburg Man Pleads Guilty to Using an Infant and A Toddler to Produce Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announced today that Andrew Ryan Leslie (22, Middleburg) has pleaded guilty to two federal charges that he sexually abused an infant and a toddler, and used them to produce images and videos of child pornography. He faces a mandatory minimum penalty of 15 years, up to 60 years, in federal prison and a potential life term of supervision. A sentencing date has not yet been set. Leslie has been in federal custody since his arrest on October 18, 2016.
According to court documents, in 2015, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations began an investigation into websites known to host images and videos depicting child pornography. In 2016, Leslie was positively identified as a member of one of these websites. On October 18, 2016, HSI agents and other law enforcement officers executed a federal search warrant at Leslie’s residence in Middleburg, Florida. Upon entering the residence, agents observed Leslie emerging from the master bedroom. Leslie stated that a minor child, referred to by Leslie as a “toddler,” had been in bed with him when the agents arrived.
During the search, agents located a digital camera next to Leslie’s bed in the master bedroom. Within the camera was a micro SD card containing a series of pornographic images depicting Leslie with two different minor children. In several of the images, the same toddler (approximately two years old) was depicted. Other images depicted a different infant less than a year old. These images depicted Leslie sexually abusing both children.
Agents also seized several laptop computers, computer hard disk drives, tablets, cell phones, and cameras from Leslie’s residence. A forensic analysis of these items revealed that Leslie had produced, received, distributed, and possessed numerous images and videos depicting child pornography. Recovered logs of online conversations between Leslie and other individuals showed that Leslie had discussed engaging in sexual activity with several minor children.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Member of Camden, New Jersey, Drug Trafficking Organization Sentenced to Eight Years in Prison for Drug DistributionRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 96 months in prison for selling crack cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.
Nafeez Griffin, a/k/a “Feez,” 31, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of distribution and possession with intent to distribute cocaine base. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Griffin admitted that on Nov. 30, 2015, he sold crack cocaine to an undercover officer on the 1100 block of Lansdowne Avenue, which was then under the control of a drug distribution organization of which he was a member. Griffin also admitted that other members of the organization supplied drugs to him, and that he made sales of crack cocaine on other occasions. Griffin and others were originally charged by complaint on Sept. 9, 2016, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by several members of the conspiracy.
In addition to the prison term, Judge Simandle sentenced Griffin to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s sentencing.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Luzerne County Man Charged with Unlawfully Possessing A Firearm as A Convicted FelonRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert Romasiewicz, age 25, of Exeter, Pennsylvania, was charged in a criminal information on October 6, 2017, with unlawfully possessing a firearm as a convicted felon.
According to United States Attorney Bruce D. Brandler, the information alleges that Romasiewicz was in possession of a Smith and Wesson 9mm handgun in July-August 2017, in Luzerne County, having previously been convicted of a crime punishable by more than one year in prison.
The charge stems from an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. 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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Leader of Violent Group Resentenced to Life Imprisonment Plus 30 YearsRead the Press Release
BATON ROUGE, LA – Acting U.S. Attorney Corey Amundson announced that U.S. District Judge Shelly D. Dick has re-sentenced Jeffery D. Perry, age 34, formerly of Baton Rouge, Louisiana, to a term of life imprisonment, followed by a term of 30 years imprisonment, for federal drug trafficking and firearm-related violations.
Perry’s re-sentencing follows his unsuccessful appeal to the U.S. Court of Appeals for the Fifth Circuit, which affirmed his convictions and returned the matter to the district court in order to increase his original prison term from life imprisonment plus 15 years to life imprisonment plus 30 years.
On August 19, 2015, Perry was originally sentenced after being convicted following a multi-week jury trial in September 2014 of conspiring to distribute cocaine and “crack” cocaine, distributing cocaine and “crack” cocaine, car-jacking, possessing firearms in furtherance of crimes of violence and drug trafficking crimes, and possessing firearms while a convicted felon.
At his original sentencing hearing, the Court found that Perry made his living trafficking drugs and that he did whatever it took to protect his drug trafficking enterprise. As an example of his danger to the community, the Court noted that reliable evidence suggested that Perry had hired an individual and two young men to set an elderly man’s house on fire. These two young men died later that day as a result of burns they sustained from the arson they had committed. During sentencing, the Court noted Perry’s cold-blooded and callous statements about one of the arsonists, as he lay dying in his backyard, seeking medical assistance for the injuries he sustained from the fire Perry had hired him to set.
Evidence at trial showed that, from August 2006 until September 2011, Perry led a drug-trafficking endeavor within Baton Rouge operating largely on Evergreen Street, Louisiana Street, and Delphine Street, which distributed kilogram and multi-ounce amounts of cocaine and “crack” cocaine. Customers used cash, stolen equipment, firearms, and food stamps to purchase in those locations varying amounts of cocaine and “crack” cocaine from Perry. He used “crack” addicts to test the quality of the “crack” he cooked before selling it to others.
As the Court found, Perry often used violence. As another example, evidence at trial showed that Perry solicited the assistance of Mark Allen to rob another individual who had been supplying him with kilogram amounts of cocaine. A few days after this robbery, Perry enlisted Allen’s assistance to rob one of his customers of approximately $80,000. During this robbery, Allen shot and wounded the customer and car-jacked him. After Allen met Perry and handed the cash he had taken during the armed robbery over to Perry, the latter rewarded Allen, whom he then knew to be a convicted felon, with an ounce of “crack” cocaine and a Taurus .40 caliber semi-automatic pistol to protect himself against any reprisals the victim or his friends might take as a result of the robbery Allen had committed.
Other Group Members
- On August 31, 2011, following trial, a jury convicted Donald Frank of conspiracy to distribute cocaine for conduct arising from his drug trafficking endeavors, on behalf of Perry. On March 6, 2012, he was sentenced to serve a time of life imprisonment by United States District Judge James J. Brady.
- On June 16, 2015, Judge Dick sentenced Jermaine Chapman who, along with Perry, had also been convicted of drug trafficking and firearm-related violations at trial, to a forty-five year term of imprisonment.
- On June 18, 2015, Judge Dick sentenced Charles Boyer who, along with Perry and Chapman, had also been convicted at trial of conspiracy to commit drug trafficking, to a ten year term of imprisonment.
Acting U.S. Attorney Amundson stated, “Perry and his co-conspirators brutalized and victimized neighborhoods for years. This outcome very clearly illustrates the ability of the federal system, in partnership with our state and local partners, to make a real difference against group-based violent crime. I greatly appreciate the excellent work of the prosecutors and the federal, state, and local agents who handled this important matter. The recently created Violent Criminal Enterprises Strike Force, with the support of the community, seeks to institutionalize this successful approach to make our neighborhoods safer and more secure.”
DEA Assistant Special Agent-in-Charge Brad Byerley stated, “Federal, state and local law enforcement have successfully collaborated in order to put this violent drug dealer in jail for the rest of his life as a result of his desire to supply the citizens of Baton Rouge with cocaine. This life sentence sends a message that violent drug traffickers, such as Jeffery Perry, will be held accountable for their crimes. DEA and our law enforcement partners will continue to work together to keep our community safe.”
Interim Chief Jonathan Dunnam of the Baton Rouge Police Department stated, “This case is proof that federal, state and local agencies all working together to end group violence in Baton Rouge can and will be effective. We look forward to working with the new Violent Criminal Enterprises Strike Force to help reduce violent crime in our community.”
Col. Kevin Reeves of the Louisiana State Police stated, “Robust partnerships and operational collaboration will continue to yield success as public safety remains our number one priority in Louisiana. I am thankful for the hard work of our Troopers and all of the partners involved in this investigation.”
This matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Drug Enforcement Administration, and the Baton Rouge City Police, with valuable assistance from the Louisiana State Police, including its crime lab, and the Jefferson County, Texas, Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert W. Piedrahita, who serves as Litigation Counsel, and Assistant United States Attorney Chris Dippel, who serves as a Deputy Chief in the Criminal Division.
Lake Providence woman sentenced to 18 months in prison for stealing more than $52,000 in HUD fundsRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Lake Providence woman was sentenced last week to 18 months in prison for stealing more than $52,000 from a housing development by falsifying receipts for work that was never performed.
Stephanie R. Threats, 46, of Lake Providence, La., was sentenced Wednesday by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to commit federal program theft. She was also sentenced to three years of supervised release. According to the June 1, 2017 guilty plea, Threats worked for an Oak Grove, La., elderly housing apartment company, which received funds from the Office of Housing and Urban Development through Section 202 of the Federal Housing Program. From July 2009 until July 2012, Threats stole $52,241.69 from the program by creating false invoices for work performed for the benefit of the apartments and the HUD program recipients, when in reality no work had been performed.
The Office of Housing and Urban Development-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Justice Department Settles with Montgomery County, Maryland, After School Program to Ensure Compliance with the ADARead the Press Release
The Justice Department announced today that it reached an agreement with Bar-T Year Round Programs for Kids (Bar-T), located in Montgomery County, Maryland, to remedy alleged violations of the Americans with Disabilities Act (ADA). Title III of the ADA prohibits public accommodations, including child care centers, from discriminating against individuals with disabilities and those associated with them. Bar-T is the largest provider of before and after school programs in Montgomery County, operating at approximately 30 Montgomery County public school locations.
The department investigated whether Bar-T discriminated against a student with a disability, specifically Autism Spectrum Disorder (ASD), and her parents when it expelled the student on the basis of behaviors associated with ASD, without properly considering whether Bar-T staff could implement reasonable modifications to permit the student to remain enrolled. The settlement agreement requires Bar-T to adopt a nondiscrimination policy; designate staff at each operating location to address ADA issues; implement a process for parents or guardians of children with disabilities to request reasonable modifications and for Bar-T to conduct an individualized assessment of each request; provide ADA training to staff; and report on compliance with the agreement. Bar-T will also pay $13,500 in compensatory damages to the student and her parents.
“Through this agreement, Bar-T is taking important steps to make sure that all children in its programs, including children with disabilities, will be given the opportunity to have a positive and successful experience in a supportive after school environment,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
“Children with disabilities deserve equal opportunities to attend after school programs. The policies Bar-T has agreed to implement will ensure that its programs provide an inclusive environment for all students,” said Acting United States Attorney for the District of Maryland Stephen M. Schenning.
To read the settlement agreement or for more information on the ADA, visit www.ada.gov. For more information about the ADA, including how to file a complaint, call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
Junction City Man Sentenced in Kidnapping of Woman Who Was KilledRead the Press Release
TOPEKA, KAN. – A Junction City man who took part in a woman’s kidnapping that led to her murder was sentenced Tuesday to 10 years in federal prison, U.S. Attorney Tom Beall said.
Christopher Pugh, 33, Junction, City, Kan., pleaded guilty to one count of kidnapping. In his plea, he admitted participating in the kidnapping of Amanda Clemons, a 24-year-old woman whose body was found in February 2014 in Geary County, Kan.
In his plea, Pugh admitted that on Feb. 7, 2014, he was one of the defendants who met the victim, who was a prostitute, at a hotel in Junction City and kidnapped her. The defendants beat the victim in retribution for comments she had made on social media. During the beating, the defendants demanded the victim pay $300. They took the victim to another hotel room in an unsuccessful attempt to get the money, after which they transported her to a residence on Fort Riley where two of the defendants lived.
While at the residence, the defendants allowed the victim to call her young son and her mother. The victim’s mother realized the victim was in danger and called Junction City Police. When police called the victim’s number to check on her, the defendants listened to the call on speakerphone. At that time, Pugh left the house alone and did not take part in the murder.
Fearing that police were coming to arrest them, defendants Drexel Woody, Larry L. Anderson and Marryssa Middleton took the victim to a bridge in a remote part of Geary County. Once there, Anderson and Middleton resumed the beating and attacked the victim with a knife. The victim broke free and jumped off the bridge, falling 15 feet and breaking her ankle. Anderson and Middleton found the victim in the snow beneath the bridge and resumed the assault during which they cut her throat and killed her.
Co-defendants include:
Larry L. Anderson of Manhattan, Kan., who was sentenced to 28 years.
Marryssa M. Middleton of Fort Riley, Kan., who was sentenced to 28 years.
Drexel A. Woody, 27, of Fort Riley, who was sentenced to 16 years.
Shantrell D. Woody of Fort Riley, Kan., who is set for sentencing Nov. 20.
Beall commended the Junction City Police Department, the Grandview Plaza Police Department, the Geary County Sheriff’s Office, the Riley County Police Department, the Fort Riley Criminal Investigation Division, the FBI, Assistant U.S. Attorney Tony Mattivi, Assistant U.S. Attorney Jared Maag and Geary County Attorney Steven Opat for their work on the case.
Hartford Man Sentenced to 5 Years in Federal Prison for Heroin and Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID VALENTIN, 38, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by four years of supervised release, for heroin and firearm offenses.
According to court documents and statements made in court, on January 29, 2016, VALENTIN was arrested after Hartford Police officers conducted a court-authorized search of his Congress Street residence and seized 2,684 wax folds of heroin, 15.1 grams of raw heroin, and a loaded .380 caliber pistol that had been reported stolen.
On April 18, 2017, VALENTIN pleaded guilty to one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
VALENTIN’s criminal history includes 10 felony convictions.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Halsey B. Frank Sworn in as United States AttorneyRead the Press Release
Portland, Maine: The United States Attorney’s Office announced that Halsey B. Frank has taken the oath of office to become the U.S. Attorney for the District of Maine. U.S. Attorney Frank was nominated by President Donald Trump on July 27, 2017 and confirmed by the U.S. Senate on October 4, 2017. He took the oath of office today from U.S. District Court Chief Judge Nancy Torresen.
U.S. Attorney Frank is the top-ranking federal law enforcement official in the District of Maine. He oversees a staff of 47 employees and contractors located in Portland and Bangor, including 24 attorneys, 20 non-attorney support personnel and three contractors. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
U.S. Attorney Frank grew up in New York City and in Englewood, New Jersey. Prior to becoming U.S. Attorney for the District of Maine, he was an Assistant U.S. Attorney (AUSA) in the District of Maine where, from 1999 to 2017, he prosecuted federal crimes and defended the United States in civil actions in federal district court. From 1990 to 1999, he served as an AUSA in the District of Columbia, where he prosecuted crimes in the Superior Court for the District of Columbia and in the U.S. District Court for the District of Columbia, and defended the United States in civil actions in the district court. From 1987 to 1990, he served as a Trial Attorney in the Torts Branch of the Civil Division of the Department of Justice in Washington, D.C., where he defended the United States in tort actions around the country. U.S. Attorney Frank is a 1980 graduate of Wesleyan University and a 1986 graduate of Boston University School of Law.