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27 September 2017
ANMED Health agrees to pay $7 million to settle False Claims Act allegationsRead the Press Release
ATLANTA – AnMed Health, a South Carolina hospital based in Anderson, South Carolina, has agreed to pay over $7 million to resolve allegations that it violated the False Claims Act by submitting false Medicare claims. The settlement announced today resolves allegations that AnMed Health knowingly disregarded the statutory conditions for submitting claims to the Medicare program for a variety of services, including radiation oncology services, emergency department services, and clinic services.
Specifically, the United States alleged that AnMed Health billed for radiation oncology services for Medicare patients when a qualified practitioner was not immediately available to provide assistance and direction throughout the radiation procedure, as required by Medicare regulations. The settlement also resolves allegations that AnMed Health systematically billed a minor care clinic as if it was an Emergency Department and billed Emergency Department services as if they were provided by a physician when, in fact, the services were rendered by mid-level providers. Each of these billing practices resulted in higher reimbursements to AnMed Health.
“This is another example of how the False Claims Act whistleblower provisions help protect the public’s interest,” said U. S. Attorney John Horn. “It also reflects our ongoing commitment to safeguard our federal health care programs and the vital care that they provide.”
“Our goal in pursuing Medicare fraud is not only to protect taxpayers, but also to ensure that Medicare beneficiaries receive the quality care they deserve,” said Barbara Bowens, Civil Chief for the U.S. Attorney’s Office for the District of South Carolina.
“Protecting people with Medicare and guarding health resources are top priorities,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Provider organizations seeking to increase profits at the expense of patients and taxpayers should expect such plans to be costly.”
The allegations settled arose from a lawsuit filed in the Northern District of Georgia by a whistleblower formerly employed by AnMed Health, Linda Jainniney, under the whistleblower provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The lawsuit is captioned United States ex rel. Jainniney v. Anmed Health, et al., 1:12-cv-2941 (N.D. Ga.). Under the provisions for whistleblowers under the False Claims Act, Ms. Jainniney will receive $1,202,500 of the United States’ False Claims Act recovery.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the District of South Carolina, and the Department of Health and Human Services Office of the Inspector General.
The civil settlement was reached by Assistant U.S. Attorneys David A. O’Neal for the Northern District of Georgia and Beth Warren for the District of South Carolina.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
15 People Charged in Drug Trafficking ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – A federal grand jury returned a nine-count indictment, unsealed today, charging 15 defendants with several federal drug trafficking offenses. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants are:
- Johnny Allen, 26, Panama City Beach, Florida;
- Elijah Segers-Meier, 26, Panama City Beach;
- Alexis Salas, 20, Columbus, Georgia;
- Decorey Walker, 26, Columbus, Georgia;
- Kyle Pate, 33, Panama City Beach, Florida;
- Christopher Pipkins, 28, Columbus, Georgia;
- Kimberly Fuller, 46, Panama City Beach, Florida;
- David Snyder III, 23, Panama City; Florida;
- Ashley Coatley, 36, Panama City Beach, Florida;
- Anthony Servillo, 25, Panama City Beach; Florida;
- Michael Soifert, 24, Panama City Beach, Florida;
- Angela Adams, 26, Columbus, Georgia;
- Mardarrius Collier, 20,Columbus, Georgia;
- John Elliott, 26, Panama City, Florida; and
- Franschwa Riggins, 29, Panama City, Florida.
The charges are:
Conspiracy to Distribute a Controlled Substance: All defendants were charged with conspiracy. Allen, Segers-Meier, Salas, Collier, and Adams were attributed an amount of 100 grams or more of heroin. Riggins was attributed an amount of 500 grams or more of methamphetamine. Allen, Segers-Meier, Salas, and Pate were attributed an amount of 50 grams or more of methamphetamine.
Distribution of a Controlled Substance: Segers-Meier was charged with distributing heroin and methamphetamine. Allen was charged with distributing heroin and fentanyl.
Possession of a Firearm in Furtherance of Drug Trafficking: Segers-Meier was charged with possessing a pistol in furtherance of a drug trafficking crime.
Possession with Intent to Distribute a Controlled Substance: Adams, Collier, and Allen were charged and attributed with 100 grams or more of heroin. Allen and Salas were charged with possessing heroin with the intent to distribute it.
Allen, Segers-Meier, Walker, Fuller, Snyder, Coatley, Servillo, Soifert, and Elliott’s trial is scheduled for December 4, 2017, at 8:15 a.m., at the United States courthouse in Panama City.
This case resulted from an investigation by the Bay County Sheriff’s Office, the Jackson County Sheriff’s Office, the Walton County Sheriff’s Office, the Panama City Beach Police Department, the Panama City Police Department, the Florida Department of Law Enforcement, the 14th District Medical Examiner’s Office, the U.S. Postal Inspection Service, the United States Immigration and Customs Enforcement Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration. Assistant United States Attorney Aine Ahmed is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
26 September 2017
White River Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a White River, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 19, 2017, by U.S. District Judge Roberto A. Lange.
Louis Anthony Good Shield, age 28, was sentenced to 18 months in custody, followed by 4 years of supervised release, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Good Shield was indicted by a federal grand jury on August 16, 2016. He pled guilty on June 27, 2017.
Good Shield admitted that between January 1, 2013, and September 17, 2015, he knowingly and intentionally conspired with others to distribute methamphetamine, a Schedule II controlled substance, in South Dakota. Good Shield assisted other individuals in obtaining methamphetamine and delivering that methamphetamine to others for further distribution in South Dakota. Good Shield’s role in the distribution scheme was to accompany others during the transport of the methamphetamine, and to be “the muscle.”
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Good Shield was immediately turned over to the custody of the U.S. Marshals Service.
Wheeling man admits to firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA - A Wheeling man has admitted to a firearms charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Levar Jermain Matthews, age 40, pled guilty to one count of “Unlawful Possession of a Firearm.” Matthews, having previously been convicted of Distribution of Crack Cocaine Within 1,000 feet of a School in the United States District Court for the Northern District of West Virginia, admitted to possessing a .38 special caliber revolver. The crime occurred in April 2017 in Ohio County.
Matthews faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
U.S. Magistrate Judge James E. Seibert presided.
Walnut Man Faces Federal Charges of Falsely Reporting Passenger Planned to Blow up Commercial AirplaneRead the Press Release
LOS ANGELES – A Walnut resident has been arrested on federal charges of making a hoax threat by falsely reporting to airline and law enforcement officials that an acquaintance of his planned to blow up an airplane and posed a threat to the United States.
Dino Ninku, 36, of Walnut, was arrested Friday at his residence without incident by FBI Agents. Appearing before a United States Magistrate Judge Friday afternoon, Ninku was ordered held without bond pending trial.
Ninku was charged in a criminal complaint filed last week in United States District Court in Los Angeles with providing false information, a felony offense that carries a statutory maximum penalty of five years in federal prison.
According to the affidavit in support of the complaint, a person later identified as Ninku called the Asiana Airlines reservations center in Los Angeles on August 5 and reported a passenger scheduled to travel from Asia to the United States on August 18 posed a terrorist threat and was threatening to blow up the plane. Ninku, who also told the Asiana representative that the passenger had been recruiting other people in the U.S., provided details about the passenger’s flight itinerary and said that the attack would happen either on a flight from China to South Korea or a flight from South Korea to Los Angeles.
Asiana Airlines reported the information to law enforcement authorities in the United States, China and South Korea. Multiple law enforcement agencies also investigated the threat, including the FBI, which received a similar report via the internet. A report to the Department of Homeland Security also provided details of the alleged threat, adding that the passenger planned to “take out public locations in the U.S. mainland” through the passenger’s “network.” A report was also made to LAPD’s iWatch Program, according to court documents.
As part of the ensuing investigation, the victim of Ninku’s hoax threat became the subject of national security interest, and the United States State Department revoked the victim’s student visa. Further investigation revealed that the victim is a legitimate student pursuing an education, is not a member of a terrorist organization, and does not pose any known threat to the United States.
According to the criminal complaint, Ninku ultimately admitted during an interview with an FBI agent that the victim did not make terrorist threats and does not pose a credible threat to the United States.
At Ninku’s initial court appearance last Friday, he was ordered to appear for a preliminary hearing on October 6 and an arraignment on October 13.
The investigation in this case is being conducted by the FBI, the United States Secret Service and the Federal Air Marshal Service.
The case is being prosecuted by Assistant United States Attorney Michael G. Freedman of the General Crimes Section.
Utah Chiropractor Sentenced to Prison for Tax Evasion and Obstructing the IRSRead the Press Release
SALT LAKE CITY – A former Orem, Utah, chiropractor, who also owned a health care products business, was sentenced to 33 months in prison for tax evasion and corruptly endeavoring to obstruct the internal revenue laws in U.S. District Court in Salt Lake City Monday afternoon. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah announced the sentence.
Louis Hansen, 65, was convicted following a jury trial in July. According to documents submitted to the court and evidence presented at trial, Hansen attempted to evade the payment of his federal income taxes for the years 2005, 2006, 2007 and 2010. For the years 2005, 2006 and 2010, Hansen filed a tax return reporting that he owed taxes, but did not fully pay the amounts due. Hansen’s 2007 return was audited and additional taxes assessed.
In March 2012, Hansen sent a check to the Internal Revenue Service (IRS) in the amount of $342,699 that was drawn on a closed bank account held in the name of another individual, and claimed that the check paid off his tax debt. Hansen then sent a signed letter to the revenue officer assigned to collect his unpaid taxes, claiming that he had paid the taxes owed. A few months later, Hansen sent 10 additional checks all in the amount of $425,000, to at least six IRS locations, all drawn on another closed account in the name of a different individual, claiming to pay the back taxes due.
In addition to the term of prison imposed, U.S. District Court Judge Clark Waddoups sentenced Hansen to serve three years of supervised release and ordered him to pay restitution to the IRS in the amount of $342,699.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Kevin L. Sundwall and Assistant Chief Andrew Kameros of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
U.S. Attorney’s Office in Chicago Charges Financial Analyst and Former Investment Banker with Fraud for Allegedly Profiting from Insider TradingRead the Press Release
CHICAGO — The U.S. Attorney’s Office in Chicago today charged a financial analyst and a former investment banker with securities fraud for allegedly earning profits from trades they made with non-public information.
JASON NAPODANO, a former Managing Director of a Chicago investment research firm, used material, non-public information he obtained while preparing equity research reports about companies to purchase and sell stock in those companies, according to a criminal information filed in federal court in Chicago. The illegal trading profits netted Napodano approximately $143,000, the information states.
In a related case, BILAL BASRAI, a former Managing Director of a Chicago investment banking firm, used material, non-public information to earn approximately $37,157 in illegal profits from the purchase and sale of stock in three companies. Through his legal counsel, Basrai authorized the U.S. Attorney’s Office to disclose that Basrai has cooperated with the government’s investigation and intends to plead guilty to the charge contained in the information.
Napodano, 43, of Waxhaw, N.C., and Basrai, 43, of Naperville, Ill., are each charged with one count of securities fraud. Arraignments in federal court in Chicago have not yet been scheduled.
The charges were filed by the Securities and Commodities Fraud Section of the U.S. Attorney’s Office in Chicago. The charges were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission provided valuable assistance.
According to the charges, Napodano’s alleged fraud scheme began in October 2012 and continued through May 2015. The charges allege that, prior to the public release of equity research reports that contained positive recommendations about the companies, Napodano purchased stock in those companies. He then allegedly sold the stock for a profit after his reports were publicly released and the stock prices of the companies increased. In doing so, Napodano allegedly misappropriated material, non-public information – the timing and contents of the research reports – that belonged to his employer. Napodano also traded based on inside knowledge of a company’s announcement of an in-licensing agreement, the information states.
Basrai’s fraud scheme spanned the first seven months of 2014. Basrai allegedly learned non-public information about a secondary stock offering, an in-licensing agreement, and the release date of a research report, and used it to make profitable trades of three companies’ stock.
The public is reminded that an information is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Securities fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Jason Yonan and Matthew Kutcher.
U.S. Attorney Announces the Arrest of 10 Individuals, Including Four Division I Coaches, for College Basketball Fraud and Corruption SchemesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest today of 10 individuals, including four Division I NCAA men’s basketball coaches and a senior executive at a major athletic apparel company (“Company-1”), in connection with two related fraud and corruption schemes. In the first scheme, as alleged in the three Complaints unsealed today, college basketball coaches took cash bribes from athlete advisors, including business managers and financial advisors, in exchange for using their influence over college players under their control to pressure and direct those players and their families to retain the services of the advisors paying the bribes. In the second scheme, a senior executive at Company-1, working in connection with corrupt advisors, funneled bribe payments to high school-aged players and their families to secure those players’ commitments to attend universities sponsored by Company-1, rather than universities sponsored by rival athletic apparel companies.
The three Complaints unsealed today charge four coaches, CHUCK CONNORS PERSON, LAMONT EVANS, EMANUEL RICHARDSON, a/k/a “Book,” and ANTHONY BLAND, a/k/a “Tony”; three athlete advisors, CHRISTIAN DAWKINS, MUNISH SOOD, and RASHAN MICHEL; a senior executive at Company-1, JAMES GATTO, a/k/a “Jim,” along with two individuals affiliated with Company-1, MERL CODE and JONATHAN BRAD AUGUSTINE, with wire fraud, bribery, travel act, and conspiracy offenses. The defendants were all arrested this morning in various parts of the country. DAWKINS, SOOD, and AUGUSTINE are scheduled to appear before U.S. Magistrate James L. Cott in federal court later today.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The picture of college basketball painted by the charges is not a pretty one – coaches at some of the nation’s top programs taking cash bribes, managers and advisors circling blue-chip prospects like coyotes, and employees of a global sportswear company funneling cash to families of high school recruits. For the ten charged men, the madness of college basketball went well beyond the Big Dance in March. Month after month, the defendants allegedly exploited the hoop dreams of student-athletes around the country, treating them as little more than opportunities to enrich themselves through bribery and fraud schemes. The defendants’ alleged criminal conduct not only sullied the spirit of amateur athletics, but showed contempt for the thousands of players and coaches who follow the rules, and play the game the right way.”
FBI Assistant Director William F. Sweeney Jr. said: “Today’s charges detail a corrupt practice in which highly rated high school and college basketball players were steered toward lucrative business deals with agents, advisors, and an international athletics apparel company. As alleged, NCAA Division I and AAU coaches created a pay-to-play culture, agreeing to provide access to their most valuable players while also effectively exerting their influence over them. Today’s arrests should also serve as a warning to those who conduct business this way in the world of college athletics.”
According to allegations contained in the three Complaints[1] unsealed today in Manhattan federal court, and other publicly available documents:Overview of the Investigation
The charges in the Complaints result from a scheme involving bribery, corruption, and fraud in intercollegiate athletics. Since 2015, the U.S. Attorney’s Office for the Southern District of New York and the FBI have been investigating the criminal influence of money on coaches and student-athletes who participate in intercollegiate basketball governed by the NCAA. The investigation has revealed two related schemes. In the first scheme (the “Coach Bribery Scheme”), athlete advisors – including financial advisors and business managers, among others – allegedly paid bribes to assistant and associate head basketball coaches at NCAA Division I universities, and sometimes directly to student-athletes at those universities, facilitated by the coaches. In exchange for the bribes, the coaches agreed to pressure and exert influence over student-athletes under their control to retain the services of the bribe-payors once the athletes entered the National Basketball Association (“NBA”).
In the second scheme (the “Company-1 Scheme”), athlete advisors working with high-level Company-1 employees, allegedly paid bribes to student-athletes playing at, or bound for, NCAA Division I universities, and to the families of such athletes. These bribes were paid in exchange for a commitment by the athletes to matriculate at a specific university sponsored by Company-1, and a promise to ultimately sign agreements to be represented by the bribe-payors once the athletes entered the NBA.
Participants in both schemes allegedly took steps to conceal the illegal payments, including (i) funneling them to athletes and/or their families indirectly through surrogates and entities controlled by the scheme participants; and (ii) making or intending to make misrepresentations to the relevant universities regarding the involvement of student-athletes and coaches in the schemes, in violation of NCAA rules.
As described in the complaints, these schemes operated as a fraud on the universities involved, all of which provide scholarships to players and salaries to coaches with the understanding and expectation that the players and coaches are in full compliance with all relevant NCAA rules and regulations. Moreover, these schemes subject the universities to substantial potential penalties by the NCAA, including, but not limited to, financial fines and penalties as well as the potential loss of eligibility to compete in various NCAA events.
The Coach Bribery Schemes
The first scheme alleged in the Complaints entailed bribes by DAWKINS and SOOD, among others, to four men’s basketball coaches, PERSON, EVANS, RICHARDSON and BLAND, in exchange for the coaches’ agreement to direct players under their control, and the players’ families, to retain DAWKINS and SOOD once the players entered the NBA. These corrupt arrangements, which turn on the coaches’ abuse of their positions of trust at the universities, are valuable both to the coaches, who receive cash bribes, and to the bribe-payors, for whom securing a future NBA player as a client can prove extremely profitable.
Allegations Involving Chuck Person
Beginning in or around 2016, and continuing into 2017, PERSON, a former NBA player and the associate head coach at University-1, abused his coaching position at University-1 to solicit and obtain approximately $91,500 in bribe payments from a financial advisor and business manager for professional athletes, who, unbeknownst to PERSON, was providing information to law enforcement (“CW-1”). In exchange for the bribes, PERSON agreed to direct certain University-1 basketball players to retain the services of CW-1 when those student-athletes entered the NBA. The bribe payments initially were arranged by MICHEL, who had a preexisting relationship with PERSON and operated a clothing store that specialized in making bespoke suits for professional athletes. Over the course of the scheme, PERSON did, in fact, arrange multiple meetings between CW-1 and players and/or their family members, in which he falsely touted CW-1’s qualifications without disclosing that he was being bribed to recommend CW-1. For example, at one meeting, PERSON told the mother of a player at University-1 that CW-1 was PERSON’s own financial advisor and had also advised NBA Hall of Fame inductee (and University-1 alumnus) Charles Barkley, neither of which was true. PERSON similarly told another player that CW-1 would purchase him a separate cell phone over which they could communicate so as to conceal the nature of the scheme.
In addition to the bribe payments that PERSON solicited and received, PERSON also arranged for CW-1 to make payments directly to the families of the players PERSON was steering to CW-1. PERSON further claimed to have given approximately $18,500 of the bribe money he received to the families of two student-athletes whom PERSON sought to steer to retain CW-1.
Allegations Involving Lamont Evans
Beginning in 2016, and continuing into 2017, EVANS solicited at least $22,000 from CW-1 and SOOD in exchange for EVANS’s agreement to exert his official influence over certain student-athletes that EVANS coached at two NCAA Division I universities, University-3 and University-4, to retain SOOD and CW-1’s business management and financial advisory services once those players entered the NBA. In return, EVANS (who had received bribe payments from DAWKINS previously), promised SOOD and CW-1 that he would steer multiple specific players to retain their services. Indeed, as a part of the scheme, EVANS arranged for CW-1 to meet with a student-athlete EVANS coached at University-4 (“Player-4”), and arranged for SOOD to meet with the mother of another student-athlete EVANS had previously coached at University-3, for the purpose of pressuring them to retain SOOD and CW-1. Moreover, and in return for the bribe payments, EVANS falsely touted the services of SOOD and CW-1 to players and their families, telling Player-4, for example, that CW-1 was “my guy,” adding, falsely, that CW-1 “has helped me personally. And I trust that,” and assuring Player-4 that “[i]t’s going to benefit you. I promise you that.” In explaining the benefit of bribing an assistant coach such as EVANS, DAWKINS explained to SOOD and CW-1 that because coaches like EVANS could not get “caught” receiving bribes because “his job is on the line,” EVANS and other corrupt coaches would have an incentive to “block” other athlete advisors from accessing the players under the coaches’ supervision and directing those players to the bribe-payors.
Allegations Involving Emanuel Richardson, a/k/a “Book”
Beginning in or around February 2017, and continuing through September 2017, DAWKINS and SOOD, along with two undercover law enforcement agents posing as financial backers of CW-1 (“UC-1” and “UC-2,” respectively), paid or facilitated the payment of $20,000 in bribes to RICHARDSON in return for RICHARDSON’s commitment to steer players under his control at University-4 to retain DAWKINS and SOOD’s services upon entering the NBA. During that period, RICHARDSON repeatedly assured DAWKINS and SOOD that RICHARDSON would use his influence over players at Univeristy-4 to direct them to DAWKINS and SOOD, explaining, with respect to one particular player DAWKINS and SOOD sought to sign (“Player-6”), that Player-6 would be “insulated in who he talks to.” RICHARDSON added, with respect to himself, that “you’re looking at the guy” whom Player-6 trusted. RICHARDSON subsequently facilitated at least one meeting between DAWKINS, SOOD, and a representative of Player-6 for the purpose of having that representative commit the player to retain DAWKINS and SOOD’s business management and financial advisory services. In addition, RICHARDSON appears to have provided a portion of the bribe money he received from DAWKINS, SOOD, UC-1, and UC-2 to at least one prospective high school basketball player (“Player-5”) in order to recruit that player to play for University-4.
Allegations Involving Anthony Bland, a/k/a “Tony,”
Beginning in or around July 2017, and continuing into September 2017, DAWKINS and SOOD, working with UC-1, paid and/or facilitated the payment of at least $13,000 in bribes to BLAND in exchange for BLAND’s agreement to exert his official influence over certain student-athletes BLAND coached at University-5, to retain DAWKINS and SOOD’s business management and/or financial advisory services once those players entered the NBA. In particular, as BLAND told DAWKINS and SOOD, in return for their bribe payments, “I definitely can get the players. . . . And I can definitely mold the players and put them in the lap of you guys.” In addition, and as part of the scheme, at BLAND’s direction DAWKINS and SOOD paid or facilitated the payment of an additional $9,000 directly to the families of two student-athletes at University-5. In return, BLAND facilitated a meeting between DAWKINS and SOOD and a relative of a player currently attending University-5 (“Player-9”) for the purpose of pressuring Player-9 to retain DAWKINS and SOOD.
The Company-1 Scheme
In addition to the Coach Bribery Scheme described above, the investigation further revealed a second, related scheme. In the second scheme, JAMES GATTO, a/k/a “Jim,” a high-level executive at Company-1, and MERL CODE, an individual affiliated with Company-1 and its high school and college basketball programs, conspired to pay high school basketball players or their families for commitments by those players to attend and play for aCompany-1-sponsored university, and to sign with Company-1 upon turning professional. In addition, DAWKINS, SOOD, and JONATHAN BRAD AUGUSTINE brokered and facilitated the corrupt payments in exchange for a promise that the players also would retain the services of DAWKINS and SOOD upon turning professional.
Specifically, in or around 2017, GATTO, CODE, DAWKINS, AUGUSTINE, and SOOD agreed to pay bribes to at least three high school basketball players or their families in the following manner:
Allegations Involving Player-10 and University-6
First, GATTO, CODE, DAWKINS, and SOOD worked together to funnel $100,000 from Company-1 to the family of a high school basketball player (“Player-10”) in exchange for Player-10’s commitment to play at an NCAA Division I university whose athletic programs are sponsored by Company-1 (“University-6”), and in further exchange for a commitment from Player-10 to retain DAWKINS and SOOD, and to sign with Company-1, once Player-10 joined the NBA. DAWKINS told CW-1 and others on a recorded conversation that he did so at the request of a coach at University-6 (“Coach-2”), and call records show that GATTO spoke directly with Coach-2 multiple times in the days before Player-10 publicly committed to attending University-6.
Moreover, because the payments to the family of Player-10 were both in violation of NCAA rules and illegal, they were disguised by GATTO, CODE, DAWKINS, and SOOD using fake purchase orders, invoices and related documents to make them appear to be payments from Company-1 to CODE’s company. As CODE explained to DAWKINS, while such payments are sometimes made “off the books,” for this particular payment, GATTO and CODE had identified it to Company-1 as “as a payment to my team, to my organization, so it’s on the books, [but] it’s not on the books for what it’s actually for.” Indeed, the money, once allocated by Company-1, was funneled back to DAWKINS to use to pay the father of Player-10 in cash.
Allegations Involving Player-11 and University-6
Second, DAWKINS and AUGUSTINE agreed to facilitate payments to the family of another high school basketball player (“Player-11”) in exchange for Player-11’s commitment to play at University-6 and ultimately to retain DAWKINS’s services. While these payments were not directly funded by Company-1, they were made to benefit Company-1, which, as noted, sponsors University-6, and with the expectation that Company-1 would provide additional funding to AUGUSTINE in return. AUGUSTINE noted, “all [Coach-2] has to do is pick up the phone and call somebody [and say] these are my guys, they’re taking care of us.”
Because these payments from DAWKINS to Player-11’s family were both in violation of NCAA rules and illegal, AUGUSTINE suggested that the “easiest way” for DAWKINS to provide money for Player-11 and his family would be to send the money to AUGUSTINE’s “non-profit for the grassroots team,” although AUGUSTINE confirmed that he also would accept cash.
As DAWKINS subsequently explained to UC-2 in the context of providing such money to AUGUSTINE and others, “obviously some of it can’t be completely accounted for on paper because some of it is, whatever you want to call it, illegal.”
Allegations Involving Player-12 and University-7
Third, GATTO, CODE, DAWKINS, and AUGUSTINE agreed to make payments of as much as $150,000 from Company-1 to another high school basketball player (“Player-12”) in order to secure Player-12’s commitment to play at an NCAA Division I university whose athletic programs are also sponsored by Company-1 (“University-7”). Because Player-12 played for an amateur team run by AUGUSTINE and sponsored by Company-1, AUGUSTINE, with the assistance of CODE and DAWKINS, attempted to broker the deal to secure Player-12’s commitment to attend University-7 rather than a school sponsored by a rival athletic apparel company. In exchange for the payment, Player-12 similarly was expected to commit to retaining DAWKINS’s services and signing with Company-1 once Player-12 joined the NBA.
Much as with the payments to Player-10 described above, according to intercepted calls, GATTO stated that the payments from Company-1 to Player-12 were allegedly requested specifically by a coach at University-7 (“Coach-3”), who allegedly called GATTO directly and who, according to DAWKINS, CODE, and AUGUSTINE, “knows everything” and, in particular, “knows something’s gotta happen for” Player-12 to commit to attending University-7.
* * *
Defendant
Age
Hometown
Charges (Potential Maximum Term of Imprisonment)
Chuck Connors Person
53
Auburn, AL
Bribery conspiracy, Solicitation of bribes, Honest services fraud conspiracy, Honest services fraud, Wire fraud conspiracy; Travel Act conspiracy (80 years)
Rashan Michel
43
Smyrna, GA
Bribery conspiracy, Solicitation of bribes, Honest services fraud conspiracy, Honest services fraud,
Wire fraud conspiracy; Travel Act conspiracy (80 years)
Lamont Evans
40
Stillwater, OK
Bribery conspiracy, Solicitation of bribes, Honest services fraud conspiracy, Honest services fraud,
Conspiracy to commit wire fraud; Travel Act conspiracy (80 years)
Emanuel Richardson, a/k/a “Book”
44
Tucson, AZ
Bribery conspiracy, Solicitation of bribes, Honest services fraud conspiracy, Honest services fraud,
Conspiracy to commit wire fraud; Travel Act conspiracy (80 years)
Anthony Bland, a/k/a “Tony”
37
Los Angeles, CA
Bribery conspiracy, Solicitation of bribes, Honest services fraud conspiracy, Honest services fraud,
Conspiracy to commit wire fraud; Travel Act conspiracy (80 years)
Christian Dawkins
24
Atlanta, GA
Bribery conspiracy, Payments of bribes, Honest services fraud conspiracy, Honest services fraud (3 counts), Wire fraud conspiracy (2 counts), Wire fraud (2 counts), Travel Act conspiracy, Money laundering conspiracy (200 years)
Munish Sood
45
Trenton, NJ
Bribery conspiracy, Payments of bribes, Honest services fraud conspiracy, Honest services fraud (3 counts), Wire fraud conspiracy (2 counts), Wire fraud (2 counts), Travel Act conspiracy, Money laundering conspiracy (200 years)
James Gatto, a/k/a “Jim”
47
Wilsonville, OR
Wire fraud conspiracy, Wire fraud (2 counts), Money laundering conspiracy (80 years)
Merl Code
43
Greer, SC
Wire fraud conspiracy, Wire fraud (2 counts), Money laundering conspiracy (80 years)
Jonathan Brad Augustine
32
Winter Garden, FL
Wire fraud conspiracy, Wire fraud (2 counts), Money laundering conspiracy (80 years)
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by a judge.
Mr. Kim praised the work of the FBI and the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.
Anyone with information relevant to the investigation is asked to contact the FBI at the special phone number established to receive such information, (212) 384-2135.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert Boone, Russell Capone, Edward B. Diskant, and Noah Solowiejczyk are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaints and the descriptions of the Complaints set forth below constitute only allegations and every fact described should be treated as an allegation.
Two Men Charged in Bribery Scheme Related to Korean Base RelocationRead the Press Release
A former contracting officer for the U.S. Army Corps of Engineers (USACE), Far East District (FED) and a former officer in the Korean Ministry of Defense (MOD) were indicted for their roles in a scheme to direct over $400 million in Department of Defense (DOD) construction contracts to a large multinational corporation based in the Republic of Korea in exchange for over $3 million in bribes.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Director Frank Robey, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command (CID); and Assistant Director Stephen E. Richardson of the FBI's Criminal Investigative Division made the announcement.
Former FED contracting officer Duane Nishiie, 58, of Honolulu, and former Korean MOD officer Seung-Ju Lee, 50, of Seoul, Korea, were charged in a nine-count indictment with mail and wire conspiracy, bribery, wire fraud, and conspiracy to commit money laundering. Nishiie was also charged with three counts of making a false statement.
According to the indictment, from 2008 through 2012, Nishiie and Lee solicited bribes from a large Korean engineering and construction company in exchange for Nishiie’s official actions to direct to the company certain contracts relating to the relocation and expansion of Camp Humphreys, a large military installation in Korea. The indictment further alleges that during this time, Nishiie, Lee and others used foreign bank accounts to hide the bribes accepted by Nishiie.
The indictment alleges that in late 2008, Nishiie took official action to steer a contract, valued at over $400 million, involving land development, utilities and infrastructure for the expansion of Camp Humphreys to the Korean company. Nishiie is also alleged to have used his official position in 2009 and 2010 to influence the award of a contract for construction of a project management office at Camp Humphreys, valued at over $6 million to the same Korean company.
In exchange for these actions, the indictment alleges, Nishiie and Lee received over $3 million in cash and other payments. Nishiie concealed these payments by using bank accounts held in the names of Lee and other Korean nationals.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
U.S. Army CID, FBI and the Defense Criminal Investigative Service conducted the investigation. Trial Attorneys Richard B. Evans and Peter M. Nothstein of the Criminal Division’s Public Integrity Section are prosecuting the case.
Staten Island Man Admits Trafficking over $2.5 Million in Counterfeit Footwear Through Port of NewarkRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man today admitted his plan to distribute more than $2.5 million of counterfeit UGG-brand boots that were shipped into the Port of Newark, Acting U.S. Attorney William E. Fitzpatrick announced.
Shi Wei Zheng, 42, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of trafficking in counterfeit goods. Zheng was originally arrested and charged by complaint on March 7, 2017.
According to documents filed in this case and statements made in court:
From September 2016 through February 2017, Zheng received certain shipping container numbers from an individual overseas that identified at least three containers containing counterfeit UGG boots. Cheng asked individuals working at the Port of Newark to remove the containers from the port before they could be examined by U.S. Customs and Border Protection. Once the containers were removed, Zheng directed that they be delivered to other individuals working for him, who would then distribute the boots in New Jersey and elsewhere.
However, before Zheng could distribute the goods, law enforcement intercepted the containers, examined their contents, and determined the boots were counterfeit. At no time was Zheng authorized to import authentic or counterfeit UGG merchandise.
In total, Zheng trafficked in over 15,000 pairs of counterfeit UGG boots, with a total estimated retail value of over $2.5 million. Zheng also paid individuals over $50,000 in exchange for the delivery of the containers.
The trafficking in counterfeit goods charge carries a maximum potential penalty of 10 years in prison and a $2 million fine. Zheng will be sentenced on Jan. 23, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), under the direction of
Acting Special Agent in Charge Debra Parker in Newark, with the investigation leading to Zheng’s guilty plea.The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Scott B Tulman Esq., New York
Statement of Acting United States Attorney Joon H. Kim on the Decision of the Court of Appeals in U.S. v. Dean Skelos and Adam SkelosRead the Press Release
“The Second Circuit, while finding that the evidence was more than sufficient to convict Dean and Adam Skelos, held that a part of the jury instruction is no longer good law under the Supreme Court decision in McDonnell. While we are disappointed in the decision and will weigh our appellate options, we look forward to a prompt retrial where we will have another opportunity to present the overwhelming evidence of Dean Skelos and Adam Skelos’s guilt and again give the public the justice it deserves. Cleaning up corruption is never easy, and that is certainly true for corruption in New York State government. But we are as committed as ever to doing everything we can to keep our government honest. That is what we will do in this prosecution as well.”
St. Mary Parish man pleads guilty to shirking sex offender registration requirementsRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a St. Mary Parish man pleaded guilty last week to moving to Texas without updating his sex offender registration.
Forrest Tucker, 54, of Morgan City, La., pleaded guilty Friday before U.S. Magistrate Judge Carol Whitehurst to one count of failure to register as a sex offender. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Tucker was convicted of a felony on April 17, 2008 that required him to register as a sex offender. After he served seven years in prison, St. Mary Parish Sheriff’s officers checked his address after his release in 2014, and Tucker was found absent from his Morgan City residence. A warrant was issued for his arrest, and U.S. Marshals arrested Tucker on May 4, 2017 in a hotel in San Antonio, Texas.
Tucker faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for November 30, 2017.
The U.S. Marshals Service and the St. Mary Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
St. Joseph Man Charged with Possessing Meth to Distribute after High-Speed Chase in PlattsburgRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a St. Joseph, Mo., man has been charged with possessing methamphetamine to distribute following a high-speed pursuit that resulted in his arrest and the seizure of more than two kilograms of methamphetamine.
James Patrick Pardee, II, 27, of St. Joseph, was charged in a complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, Sept. 25, 2017. Pardee remains in federal custody pending a detention hearing on Wednesday, Sept. 27, 2017.
According to an affidavit filed in support of the federal criminal complaint, Plattsburg, Mo., police officers attempted to conduct a traffic stop for a lane violation on a black Audi A4 driven by Pardee on Saturday, Sept. 23, 2017. Pardee fled from officers at speeds exceeding 100 miles per hour for approximately nine miles, the affidavit says, until his vehicle crashed into a guardrail.
Pardee and a female passenger got out of the vehicle; Pardee was arrested and the female passenger escaped. Officers found a backpack inside the vehicle that contained numerous clear plastic baggies with a total of more than two kilograms of methamphetamine. Investigators later determined that he had recently sold approximately one kilogram of methamphetamine, the affidavit says.
Larson cautioned that the charge contained in this complaint is simply an accusations and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Drug Enforcement Administration, the Plattsburg, Mo., Police Department, the Clinton County, Mo., Sheriff’s Department and the Buchanan County, Mo., Sheriff’s Department.
Sierra Vista Man Sentenced to 10 Years for Attempted Transportation of a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
TUCSON, Ariz. – Yesterday, Matthew Demond Lyons, 23, of Sierra Vista, Ariz., was sentenced by U.S. District Judge Rosemary Marquez to 10 years' imprisonment to be followed by 20 years of supervised release. Lyons previously pleaded guilty to attempted transportation of a minor with intent to engage in prostitution or any criminal sexual activity, aiding and abetting. He will be required to register as a sex offender and abide by sex offender terms as part of his supervision once released from prison.
In January 2016, Lyons attempted via electronic communications to induce a 16-year-old girl to travel to Arizona from Minnesota. Lyons instructed the minor to send him nude photographs of herself and to refer to him as “daddy” and stated that he would provide her with food, drugs, and shelter. Lyons also purchased a bus ticket so she could travel to Arizona. She boarded the bus in Minnesota and was enroute to Arizona before law enforcement located her.
The investigation in this case was conducted by the Federal Bureau of Investigation, Sierra Vista Police Department, Eden Prairie Police Department (Eden Prairie, Minnesota), and the Cochise County Attorney’s Office. The prosecution was handled by Raquel Arellano and Karen Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson
CASE NUMBER: CR- 17-00160-TUC-RM
RELEASE NUMBER: 2017-094_Lyons
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Schenectady Man Sentenced for Crack Cocaine DistributionRead the Press Release
ALBANY, NEW YORK – Nicholas “Netti” Khan, age 24, of Schenectady, New York, was sentenced today to 92 months in prison for distributing crack cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
In July 2016, following a three-day trial, a jury in Binghamton convicted Khan of distributing crack cocaine on four occasions in Schenectady from July to September 2013.
Khan is serving a term of imprisonment of 25 years to life in state prison for a 2014 murder conviction. The 92-month federal sentence issued today will begin after Khan is finished serving the murder sentence.
Senior United States District Judge Thomas J. McAvoy also imposed a 4-year term of supervised release, to begin after Khan’s release from prison.
This case was investigated by the DEA and the Colonie Police Department, and was prosecuted by Assistant United States Attorney Emmet O’Hanlon.
Rosebud Man Charged with Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender.
Calvin Gillette, age 26, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 19, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Gillette is accused of assaulting his domestic partner on January 31, 2017, when at the time of the assault, Gillette had a final conviction on at least two separate prior occasions in Rosebud Sioux Tribal Court proceedings for offenses that would have been, if subject to federal jurisdiction, an assault against a domestic partner.
The charge is merely an accusation and Gillette is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel Nelson is prosecuting the case.
Gillette was released on bond pending trial. A trial date has not been set.
Rhode Island Tax Return Preparer Indicted for Filing False Tax ReturnsRead the Press Release
BOSTON – A Rhode Island tax return preparer was indicted today by a federal grand jury in Providence, R.I., on charges of preparing and filing fraudulent tax returns in the names of his clients.
Raymond P. Petrarca, 63, of West Warwick was charged with 44 counts of preparing false federal income tax returns.
According to the indictment, Petrarca owned and operated Stratus Financial Group, a tax preparation business located in Warwick. From at least 2011 through 2015, Petrarca allegedly prepared and filed falsified federal tax returns in his clients’ names by adding false and inflated deductions for home mortgage interest and charitable donations, as well as false and inflated credits for purported home energy improvements.
The charging statute provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. Sentences for federal crimes are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other sentencing factors.
Acting United States Attorney for the District of Massachusetts William D. Weinreb; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Victor A. Wild of Weinreb’s Economic Crimes Unit and Trial Attorney Kimberly G. Ang of the Justice Department’s Tax Division are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rhode Island Tax Return Preparer Indicted for Allegedly Filing Fraudulent Tax ReturnsRead the Press Release
A federal grand jury in Providence, Rhode Island returned an indictment today charging a West Warwick, Rhone Island tax return preparer with 44 counts of filing fraudulent tax returns for clients, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney for the District of Massachusetts William D. Weinreb.
According to the indictment, Raymond P. Petrarca owned and operated Stratus Financial Group, a tax preparation business located in Warwick. For at least tax years 2010 through 2015, Petrarca allegedly falsified his clients’ tax returns, seeking refunds from the Internal Revenue Service (IRS) to which his clients were not entitled. Petrarca allegedly included false and inflated deductions for home mortgage interest and charitable donations, as well as false and inflated credits for purported home energy improvements.
If convicted, Petrarca faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Weinreb thanked special agents of the IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Victor A. Wild and Trial Attorney Kimberly G. Ang of the Tax Division, who are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Press Conference AdvisoryRead the Press Release
There will be a press conference today at noon to announce charges of fraud and corruption in college basketball. Federal criminal charges have been brought against ten people, including four college basketball coaches, as well as managers, financial advisors, and representatives of a major international sportswear company. The press conference will be livestreamed on Facebook @USAOSDNY.
WHO:
Joon H. Kim, Acting United States Attorney for the Southern District of New York
William F. Sweeney, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation
WHEN:
Tuesday, September 26, 2017 at 12 p.m.
WHERE:
U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
CONTACT:
James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
NOTE:
Please silence all cell phones, PDAs, and pagers before start of press conference.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE CALL THE PRESS OFFICE AT (212) 637-2600
Phoenix Man Sentenced to 87 Months for Illegally Possessing Firearm on ReservationRead the Press Release
PHOENIX – Yesterday, Clifford Earl Jordan, 43, of Phoenix, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 87 months in prison for illegally possessing a firearm on the Navajo Nation Indian Reservation. Jordan had previously pleaded guilty to felon in possession of a firearm.
In justifying the increased sentence, Judge Logan noted that Jordan possessed the firearm in connection with a domestic assault against a member of the Navajo Nation Indian Reservation, and he engaged in witness tampering activities designed to cause that victim to recant.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine D. Keller and Anthony Church, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-08155-PCT-SPL
RELEASE NUMBER: 2017-093_Jordan
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Philadelphia Man Charged with Bank FraudRead the Press Release
Jerry Louis, of Philadelphia, PA, was charged today by Indictment with one count of bank fraud and one count of access device fraud, announced Acting United States Attorney Louis D. Lappen. The Indictment alleges that in April 2012, Louis engaged in a scheme to cash checks that were fraudulently issued from a victim’s bank account. The Indictment also alleges that in February 2015, Louis trafficked in counterfeit access devices, selling a fake credit card that was encoded with stolen credit card information.
If convicted the defendant faces a maximum possible sentence of forty years imprisonment.
The case was investigated by the United States Secret Service, the Federal Bureau of Investigation, and the Federal Deposit Insurance Corporation, and is being prosecuted by Assistant United States Attorneys David J. Ignall and Christopher J. Mannion.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Penn Valley Man Charged with Threatening A United States MarshallRead the Press Release
Mehdi Nikparvar-Fard, 46, who is also known as Mehdi Armani, of Penn Valley, Pennsylvania, was charged today by Indictment[1] with threatening a United States Marshal and lying to the United States Marshals announced Acting United States Attorney Louis D. Lappen. Nikparvar-Fard was charged with making these statements on August 29, 2017, when he was arrested by the U.S. Marshals on a federal bench warrant. Nikparvar-Fard faces up to 15 years in prison, up to $500,000 in fines, three years of supervised release, and a $200 special assessment.
The case was investigated by the Drug Enforcement Administration, and is being prosecuted by Assistant United States Attorney Jason P. Bologna.
[1]An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Passaic County Man Arraigned in Heroin Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County man was arraigned today on charges that he conspired to distribute more than 16 kilograms of heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Yasmil Minaya, a/k/a “Animal, 31, is charged in an indictment with one count of conspiracy to distribute more than one kilogram of heroin, and one count of distribution and possession with intent to distribute more than one kilogram of heroin. The defendant was arraigned before U.S. District Judge Claire C. Cecchi in Newark federal court and remains detained without bail.
According to documents filed in this case and statements made in court:
Law enforcement learned that Minaya and his co-defendants were serving as New Jersey and New York area distributors for a drug trafficking organization operating in the Dominican Republic, Mexico and elsewhere. The organization’s narcotics were usually transported to this area via truck and were paid for by the defendants before they being sold on the street. The drug organization has been linked to several multiple-kilogram seizures of heroin, including a seizure of approximately two kilograms of heroin in March 2015, four kilograms in November 2015, and 10 kilograms in January 2017.
The counts with which Minaya is charged carry a mandatory minimum sentence of 10 years imprisonment, a maximum sentence of life imprisonment, and a maximum fine of $10 million per count.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Fitzpatrick credited special agents with the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, and officers with the New Jersey State Police, Trafficking North Unit, under the direction of Col. Rick Fuentes, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Nicholasville Man Sentenced to 41 Months for Counterfeiting Federal Reserve NotesRead the Press Release
LEXINGTON, Ky. – A Nicholasville, Ky. man was sentenced yesterday to 41 months in federal prison for manufacturing counterfeit Federal Reserve Notes.
U.S. District Court Judge Joseph M. Hood sentenced 39-year-old Thomas Johnson for counterfeiting obligations of the United States, by manufacturing Federal Reserve Notes.
Johnson admitted to manufacturing and selling counterfeit money. He manufactured counterfeit $10, $20, $50, and $100 bills and, either personally or through others, attempted to pass those bills at local retail establishments and fast food restaurants.
Under federal law, Johnson must serve 85% of his prison sentence and will be under the supervision of the U.S. Probation Office for three years after his release from prison.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jon Oldham, Resident Agent in Charge for the United States Secret Service Lexington Office; and Barry Waldrop, Nicholasville Police Department Chief of Police, jointly announced the sentence.
New Jersey Receives $1.1 Million in Federal Grants to Fight Opioid AbuseRead the Press Release
NEWARK, N.J. – Three New Jersey-based opioid abuse programs are receiving a total of $1.1 million in federal grants, part of the $58.9 million the U.S. Department of Justice is awarding to address the nationwide epidemic, Acting U.S. Attorney William E. Fitzpatrick announced today.
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. Opioids, including illicit fentanyl and its analogues, are responsible for most of these deaths.
“The epidemic of opioid abuse is a true national emergency, impacting families and communities throughout New Jersey,” Acting U.S. Attorney Fitzpatrick said. “The funding provided by the Department of Justice will be used to help prevent addiction while at the same time providing much needed resources for treatment and recovery.”
The New Jersey grants are as follows:
• $600,000, N.J. Department of Law and Public Safety. The department will collaborate with state agencies to develop a computerized, data-sharing Integrated Drug Awareness Dashboard (IDAD).
• $400,000, County of Camden. The county will implement the Camden County Opioid Abuse Diversion Program (CCOAD) to improve treatment and support services for individuals with a history of opioid misuse.
• $100,000, N.J. Department of Law and Public Safety. The department will use grant funds to create a coordinated plan, formulated with pertinent stakeholders, to assess how best to leverage various resources and funding streams to expand programs through the through the establishment of Opioid Response Teams to add another point of entry to treatment for opioid-addicted individuals.Descriptions of the grants are attached.
Nashua Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Neil Doiron, 37, of Nashua, New Hampshire, pleaded guilty in federal court today to one count of conspiracy to distribute fentanyl and one count of possession of fentanyl with intent to distribute.
Court filings and statements made in court established that a cooperating individual made four controlled buys of fentanyl from Doiron and a co-conspirator. On December 8, 2016, Doiron was arrested while in possession of a backpack containing approximately 79 grams of fentanyl. While searching his residence pursuant to a search warrant, officers found various controlled substances, drug packaging materials, five firearms, and over $25,000 in cash.
A sentencing hearing has been scheduled for January 4, 2018.
“The United States Attorney’s Office is committed to working with our law enforcement partners to identify and prosecute those who are distributing drugs in our community,” said Acting U.S. Attorney Farley. “We will continue to do all that we can to prevent the distribution of deadly drugs like fentanyl in the Granite State.”
The case was investigated by the Nashua Police Department and the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
###
Money Trail of Stolen Cash Leads Law Enforcement Officers to Bank Robber - Judge Hands Down Sentence of 337 MonthsRead the Press Release
United States Attorney Richard Moore of the Southern District of Alabama announces that Senior United States District Court Judge William H. Steele sentenced Joseph Canidate to 337 months in prison on September 26, 2017, for Bank Robbery and Brandishing a Firearm During and in Relation to a Crime of Violence. Canidate pled guilty on June 21, 2017, to the charge of Bank Robbery and Brandishing a Firearm, in violation of Title 18 Sections 2113(a) and 924(c) of the United States Code.
On June 27, 2016, Joseph Canidate entered the Hancock Bank at 2110 Demetropolis Road, in Mobile, Alabama, and robbed three female tellers at gunpoint of a total of $38,579.00. Canidate wore a mask, and was armed with a .40 caliber semi-automatic pistol.
Police officers responding to the robbery were able to spot Joseph Canidate running through a nearby wooded area. Law enforcement officers were able to follow the trail of money dropped by the fleeing Canidate straight to his hiding place. Joseph Canidate was taken into custody with the remains of the stolen cash, along with the firearm used in the robbery.Canidate said that the stress of making a car payment, paying utility bills and his girlfriend wanting money were reasons for the robbery. Of the $38,579.00, taken $31,383.00 was recovered. Canidate was ordered to pay $7,196.00 in restitution because of the unrecovered money. Additionally, Canidate will serve 3 years on supervision upon his release from incarceration.
Joseph Canidate had a previous conviction for Bank Robbery out of the Middle District of Alabama on October 26, 1998.
The Mobile Police Department and the Federal Bureau of Investigation, Mobile Field Office investigated this case. Assistant United States Attorney Christopher Baugh prosecuted the case for the Southern District of Alabama.
Mission Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting a Federal Officer.
Peter White Feather, age 38, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 19, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 26, 2017, White Feather assaulted a federal law enforcement officer.
The charge is merely an accusation and White Feather is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel Nelson is prosecuting the case.
White Feather was released on bond pending trial. A trial date has not been set.
Methuen Man Pleads Guilty to Steroid ConspiracyRead the Press Release
BOSTON – A Methuen man pleaded guilty yesterday in federal court in Boston to a steroid distribution conspiracy.
Scott Birchall, 33, pleaded guilty to one count of conspiracy to possess with intent to distribute steroids. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 5, 2018.
From approximately July 2013 until February 2014, Birchall was involved in a conspiracy to distribute steroids in and around Methuen. Birchall obtained steroids from alleged co-conspirator Daniel Frederickson for redistribution. On six occasions, Birchall distributed steroids to an undercover officer. At the conclusion of the investigation, agents executed a search warrant at Birchall’s residence, where they seized steroid pills and $26,000 in cash.
The charge of conspiracy provides for a sentence of no greater than 10 years in prison, a mandatory minimum of two years and up to a lifetime of supervised release, and a fine of up to $500,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; North Reading Police Chief Michael Murphy; and North Andover Police Chief Charles Gray made the announcement today. Assistant U.S. Attorney Katherine Ferguson of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Members of Puerto Rico-based cocaine trafficking operation chargedRead the Press Release
ATLANTA – Vladimir Collazo-Florido, a/k/a “Cannabis,” Marlon Matthew Pittman, a/k/a “Marlo Pittman,” and Carlos Gonzalez-Catala, a/k/a “El Electrico,” each with prior federal convictions for drug trafficking, have been indicted for conspiracy to possess with the intent to distribute cocaine based on a scheme in which they used the U.S. Mail to ship kilogram quantities of cocaine from Puerto Rico to the Atlanta metropolitan area and then to ship their illicit proceeds back to Puerto Rico.
“These defendants have already served sentences for distributing dangerous drugs,” said U.S. Attorney John Horn. “However, instead of learning from their mistakes, they again chose to poison our community and exploit the U.S. Postal Service for their criminal activities.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “These cocaine distributors sold poison to the community. We exploited their weaknesses and dismantled this once-thriving criminal network. These efforts would not have been successful without the full cooperation between our federal, state, and local law enforcement counterparts.”
“Through our joint enforcement efforts, we’ve dismantled a criminal organization that posed a direct threat to the safety and stability of various communities,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “Postal Inspectors will continue to work with our law enforcement partners to investigate and hold those accountable who maliciously utilize the U.S. mail system.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The charges arose from an investigation into money laundering activities in Atlanta as far back as 2012, and eventually led to a series of federally authorized wiretaps on cellular phones used by members of the drug trafficking operation (“DTO”) in Atlanta and Puerto Rico.
The indictment and other information presented in court allege that Collazo-Florido would obtain cocaine from sources in the Dominican Republic and Colombia. Collazo-Florido would then send some of that cocaine through the U.S. Mail to his associates in the contiguous United States, including Pittman in Atlanta, usually in parcels containing up to 1.5 kilograms at a time. In order to avoid detection if the parcels were inspected, the cocaine would be hidden inside seemingly innocent items such as children’s toys, cans of powdered milk, or cans of beans.
The indictment and other information presented in court further allege that Gonzalez-Catala was responsible for packaging and mailing the drugs. Pittman would sell the cocaine to customers in Atlanta, South Carolina, and Maryland. Pittman would then transfer the proceeds of the drug sales back to Puerto Rico by carrying large quantities of cash – including one instance of transporting approximately $90,000 cash in a duffle bag – and other times by purchasing and mailing U.S. Postal Service money orders.
The following individuals were indicted by a federal grand jury on August 15, 2017:
- Vladimir Collazo-Florido, a/k/a “Cannabis,” a/k/a “El Fumador,” a/k/a “Cualquiera,” a/k/a “Humo,” a/k/a “Johnny Bravo,” a/k/a “Aloha,” a/k/a “Smoking Chronic,” 42, of Carolina, Puerto Rico.
- Marlon Matthew Pittman, a/k/a “Marlo Pittman,” a/k/a “007,” a/k/a “7up,” a/k/a “Cowboys,” a/k/a “7,” 43, of Mableton, Georgia.
Carlos Gonzalez-Catala, a/k/a “El Electrico,” a/k/a “Chili,” a/k/a “Chiri,” 41, of Guaynabo, Puerto Rico.
All three individuals have been charged with conspiracy to possess with the intent to distribute at least 500 grams of cocaine. Pittman has also been charged with money laundering. Collazo-Florido and Gonzalez-Catala were arrested in Puerto Rico. They made their first appearance there on August 24, 2017, and were then transferred to Atlanta where they have been ordered detained by U.S. Magistrate Judge Justin S. Anand. Pittman was arraigned in Atlanta on August 28, 2017, before U.S. Magistrate Judge Linda T. Walker.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration and U.S. Postal Inspection Service.
Assistant U.S. Attorney Garrett L. Bradford is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.- Vladimir Collazo-Florido, a/k/a “Cannabis,” a/k/a “El Fumador,” a/k/a “Cualquiera,” a/k/a “Humo,” a/k/a “Johnny Bravo,” a/k/a “Aloha,” a/k/a “Smoking Chronic,” 42, of Carolina, Puerto Rico.
Member of Trenton Drug Trafficking Organization Sentenced to Six Years in Prison for Heroin Conspiracy, Unlawful Possession of FirearmRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 72 months in prison for possessing a firearm as a previously convicted felon and participating in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in the Trenton area, Acting U.S. Attorney William E. Fitzpatrick announced today.
Christopher Proctor, a/k/a “Bris,” a/k/a “Bris Broctor,” 22, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and unlawful possession of a firearm by a convicted felon. Judge Wolfson imposed the sentence today in Trenton federal court.
In December 2016, Proctor and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader, Ishmael Abdullah.
According to documents filed in this case and statements made in court:
From January 2016 through December 2016 Proctor participated in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the Abdullah DTO, and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Jose Joaquin Torres-Mezquita and Ileana Sanchez. Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Elijah Abdullah.
Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with the narcotics conspiracy, Elijah Abdullah and other members of the Abdullah DTO maintained joint access to multiple firearms.
In addition to receiving, possessing, and selling heroin as part of the conspiracy, Proctor – a previously convicted felon – was arrested on Aug. 23, 2016, by Trenton police officers in possession of a loaded Glock 27 semiautomatic handgun and multiple rounds of ammunition.
In addition to the prison term, Judge Wolfson sentenced Proctor to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Field Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; officers of the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: Aidan P. O’Connor Esq., Hackensack, New Jersey
Medical Assistant Sentenced to 20 Years in Prison for Distribution of Large Quantities of OxycodoneRead the Press Release
LAS VEGAS, Nev. – A medical assistant for a pain management specialist was sentenced today to 20 years in prison for distribution of large quantities of highly addictive prescription opioids, including oxycodone, and other controlled substances without a medical purpose, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
After a 10-week jury trial that ended in March, David A. Litwin, 58, was found guilty of conspiracy to distribute controlled substances (oxycodone) and distribution of controlled substances. Co-defendant Dr. Henri Wetselaar, 93, was also found guilty and was sentenced to 10 years in prison. United States District Judge Kent J. Dawson presided over both sentencing hearings.
According to the indictment, Wetselaar performed house calls and maintained a medical practice on the east side of Las Vegas. He prescribed large amounts of prescription drugs, including oxycodone, hydrocodone, Xanax and Soma, to persons for no legitimate medical purpose. Litwin and Wetselaar conspired with each other and local drug dealers to distribute the prescription drugs prescribed by Wetselaar in and around Las Vegas.
The case was investigated by the DEA, FBI, IRS-Criminal Investigations, the Nevada Department of Public Safety, the Las Vegas Metropolitan Police Department, the U.S. Department of Labor-OIG, and the U.S. Department of Human and Health Services-OIG. The case was prosecuted by Assistant U.S. Attorneys Cristina D. Silva and Andrew Duncan.
The overdose rates for synthetic opioids and pain relievers have continued to rise over the past several years. According to the Centers for Disease Control and Prevention, there are 144 drug overdose deaths every day and 63% of those deaths are pharmaceutical opioids or heroin related. Approximately 75% of new heroin users report having abused prescription opioids before using heroin. Heroin-related overdose deaths have more than quadrupled since 2010.
For information about the dangers of prescription opioids and other drugs, parents, educators, and caregivers may visit the DEA’s resource websites www.getsmartaboutdrugs.gov or www.justthinktwice.gov. If you have a tip or information about illegal sales or distribution of prescription opioids, including oxycodone, hydrocodone, etc., by doctors and pharmacies call the DEA at 1-877-RX-Abuse (1-877-792-2873).
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Mattapan Man Re-Sentenced for Firearm OffenseRead the Press Release
BOSTON – A Mattapan man was re-sentenced yesterday in federal court in Boston for a federal firearm offense.
Terrance Moon, 50, was re-sentenced by U.S. District Court Judge Denise J. Casper to time served of approximately 80 months in prison. In October 2013, Moon was sentenced to 220 months in prison after he was convicted by a federal jury of one count of being a felon in possession of a firearm and ammunition. In February 2011, Moon was charged with illegally possessing a Sturm, Ruger & Co, model Service-Six, .357 caliber revolver and six rounds of .357 ammunition.
Moon’s sentencing was revisited as a result of a 2015 United States Supreme Court decision, Johnson v. United States, in which the definition of “violent felony” under the Armed Career Criminal Act (ACCA) was deemed unconstitutionally vague. Moon received his original 220-month sentence based on the ACCA, which provides for enhanced sentences of at least 15 years in prison for defendants convicted of certain firearms possession offenses who have at least three prior felony convictions for violent felonies and/or serious drug offenses. As a result of the Johnson decision and a recent First Circuit case holding that Massachusetts robbery does not satisfy the remaining part of the “violent felony” definition, Moon’s prior sentence was vacated and he was re-sentenced to a non-ACCA sentence.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Robert Richardson of Weinreb’s Major Crimes Unit prosecuted the case.
Man Sentenced to 35 years for Meth Trafficking from Houston to LouisianaRead the Press Release
HOUSTON – A native of Louisiana has been ordered to federal prison following his conviction of possessing with the intent to distribute methamphetamine and possessing a firearm during and in relation to a drug trafficking crime, announced Acting U.S. Attorney Abe Martinez. John Jacob Lavergne, 39, pleaded guilty July 13, 2016.
Today, U.S. District Judge Nancy Atlas ordered Lavergne to federal prison for a total of 420 months. In handing down the sentence, Judge Atlas described this as the largest methamphetamine trafficking case she had seen in her 20 years on the bench. Lavergne was held responsible for trafficking 16 kilograms of ice, a crystallized and very pure form of methamphetamine.
Lavergne was arrested Sept. 11, 2015, after a long-term drug trafficking investigation known as “Operation Meth Highway.” During the course of this investigation, law enforcement discovered Lavergne was buying large quantities of methamphetamine from suppliers in Houston and transporting them to retail distributors in Louisiana for sale.
Authorities also uncovered several instances in which he threatened to use violence to further his drug trafficking. On one occasion, Lavergne threatened to take revenge on a retail distributor for a drug debt she owed. In another instance, he had plotted to rob and shoot another trafficker delivering a two-kilogram load of ice. Law enforcement intervened to prevent the violence.
Lavergne was also arrested during the course of the investigation on two different occasions with firearms.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Operation Meth Highway was a collaborative effort of various law enforcement partners in Texas and Louisiana. Among those were the Drug Enforcement Administration in Houston and Lafayette, Louisiana; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Department of Public Safety; Louisiana State Patrol; police departments in Houston and Huntsville, Texas, and Lafayette and Youngsville, Louisiana; Texas sheriff’s offices in Walker, Harris and Fort Bend Counties; and Louisiana sheriff’s offices in Lafayette, St. Martin, New Iberia and St. Landry Parishes. Assistant U.S. Attorney Sharad S. Khandelwal prosecuted the case.
Laconia Man Sentenced to 96 Months in Federal Prison for Heroin TraffickingRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced today that Jordan Manning, 28, formerly of Laconia, New Hampshire, was sentenced to 96 months in federal prison for possession of heroin with the intent to distribute.
According to court documents and statements in court proceedings, on August 2, 2016, members of the United States Marshals Service and the Tilton, New Hampshire Police Department arrested Manning on an outstanding parole violation warrant while at a motel in Laconia. Once inside the motel room, law enforcement officers seized approximately 193 grams of heroin that Manning had tried to flush down the toilet.
Manning previously pleaded guilty on June 20, 2017. Manning also agreed to forfeit a BMW motor vehicle that he admitted had been purchased with cash generated by his drug dealing.
“As New Hampshire continues to face an unprecedented number of overdose deaths directly caused by opioid use, we will continue to work tirelessly to prosecute those who are responsible for distributing these dangerous drugs in our state.,” said Acting U.S. Attorney Farley. “I commend the quick-thinking law enforcement officers who seized this large quantity of heroin. Their actions prevented these drugs from being distributed and may have saved several lives.”
This case was investigated by the United States Marshals Service and the Tilton Police Department. Assistant United States Attorneys Jennifer Cole Davis prosecuted the case.
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Justice Department Files Antitrust Lawsuit Against Parker-Hannifin Regarding the Company’s Acquisition of CLARCOR’s Aviation Fuel Filtration BusinessRead the Press Release
The Department of Justice filed a civil antitrust lawsuit today against Parker-Hannifin Corporation, challenging its acquisition of CLARCOR Inc. The department said that the $4.3 billion transaction substantially lessened competition in markets for aviation fuel filtration products in the United States, which threatens to result in higher prices, less innovation, and less favorable terms of service.
The department’s lawsuit seeks to restore the competition that this transaction eliminated by asking the U.S. District Court for the District of Delaware to order Parker-Hannifin to divest an aviation fuel filtration business sufficient to replace CLARCOR’s competitive significance in the marketplace.
“Parker-Hannifin bought CLARCOR knowing that this transaction raised serious antitrust concerns under Section 7 of the Clayton Act in the development, manufacture and sale of aviation fuel filtration products,” said Deputy Assistant Attorney General Donald Kempf of the Department of Justice’s Antitrust Division. “The Division is committed to vigorous and sound enforcement of the antitrust laws, and will do its job to protect American customers regardless of whether a merger has already been consummated,” he added.
“Parker-Hannifin’s acquisition of its only U.S. rival for these types of aviation fuel filtration products has effectively created a monopoly in these critical safety products, depriving their customers of the benefits of competition,” said Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division.Aviation fuel must be filtered properly to remove particulate contaminants and water droplets before such fuel is delivered into commercial or military aircraft. The failure to filter aviation fuel properly can result in engine failure, with potentially catastrophic consequences. To protect public safety, the U.S. airline industry mandates the use of aviation fuel filtration systems and filtration elements that have been subjected to rigorous testing and qualification requirements. Only those aviation fuel filtration products qualified by the Energy Institute (EI) may be used to filter aviation fuel for use in U.S. commercial and military planes.
According to the department’s complaint, Parker-Hannifin and CLARCOR were the only two manufacturers of EI-qualified aviation fuel filtration systems and filter elements in the United States and were engaged in vigorous head-to-head competition. That competition enabled customers to negotiate better pricing and to receive more innovative products and better terms of service. The transaction eliminated this competition.
During the pendency of the department’s investigation, Parker-Hannifin failed to provide significant document or data productions in response to the department’s requests. In addition, the company has not agreed to enter into a satisfactory agreement to hold separate the fuel filtration businesses at issue and to maintain their independent viability pending the outcome of the investigation and, now, this litigation.
Parker-Hannifin Corporation is an Ohio corporation headquartered in Cleveland, Ohio. It is a diversified manufacturer of filtration systems, and motion and control technologies for the mobile, industrial and aerospace markets with operations worldwide. In 2016, Parker-Hannifin’s sales revenues were approximately $11.4 billion. Parker-Hannifin sells its aviation fuel filtration products under the Velcon brand.
CLARCOR Inc. was a Delaware corporation headquartered in Franklin, Tennessee. CLARCOR was a leading provider of filtration systems for diversified industrial markets with net sales of approximately $1.6 billion in 2016. CLARCOR manufactured and sold aviation fuel filtration products under the PECOFacet brand.
Justice Department Announces Department-Wide Response to Disaster FraudRead the Press Release
Deputy Attorney General Rod J. Rosenstein announced today that the Justice Department has issued a memorandum to all 94 U.S. Attorney’s Offices (USAO) and heads of the department’s law enforcement agencies providing, for the first time, department-wide guidance relating to the coordination, investigation, and prosecution of disaster fraud allegations.
“The Justice Department is committed to pursuing any fraudsters seeking to capitalize on the tragedy and will devote the necessary resources to do so,” said Deputy Attorney General Rosenstein. “It is imperative that the department is able to properly track and manage its response to claims of disaster fraud and that agencies receive timely and relevant investigative leads and other relevant information. By working together, we can ensure that federal emergency relief funds are properly distributed to those who need them most and that taxpayers are not victimized by fraudsters or other criminals.”
The National Center for Disaster Fraud (NCDF) has already received hundreds of complaints across the country. The NCDF has remained operational since its inception following Hurricane Katrina and is specifically designed to be ready for situations like Harvey, Irma, Jose and Maria. NCDF has an excellent staff of investigators, analysts, call center operators, and managers prepared to handle the anticipated volume.
The memo issued establishes a department-wide policy that stresses the importance of establishing a disaster fraud point-of-contact, directing all disaster fraud complaints to the NCDF, notifying the NCDF about any disaster-related enforcement actions, ensuring proper resources are dedicated to the investigation and prosecution of disaster fraud matters, directing U.S. Attorneys in districts impacted by recent hurricanes to establish regional disaster fraud task forces, as well as including the NCDF hotline in all disaster fraud external communications. The memo can be found here.
U.S. Attorney Offices in the Southern District of Texas, District of Puerto Rico, Southern District of Florida, Middle District of Florida and Northern District of Florida have already established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims. Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud.
Jackson County Woman Sentenced to Prison for Wire Fraud Involving Theft from Two Health Care ProvidersRead the Press Release
TALLAHASSEE, FLORIDA – Melissa Moniz, 44, of Marianna, having pled guilty in May 2017 to wire fraud, was sentenced late Friday afternoon to six months in federal prison to be followed by six months of home confinement. Additionally, she was ordered to pay $41,813.77 in restitution to Gynecology and Obstetrics Associates in Tallahassee. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In December 2012, Moniz applied for employment with the Jackson County Hospital (JCH) in Marianna, Florida. Relying on Moniz’s résumé, which contained false claims of extensive medical management experience, JCH hired Moniz as Director of Physician Practices. As part of her duties at JCH, Moniz urged JCH to use her company, “Billing and Collection Services” (BCS), as a collections agency, and claimed that she had used BCS for collections previously and knew the owner of BCS personally. Based upon Moniz’s recommendation, JCH signed a collections contract with BCS. Moniz failed to disclose the fact that BCS was actually her own company and that the person signing the contract on behalf of BCS was actually her sister. As a result of these misrepresentations and material omissions, Moniz fraudulently obtained $26,775.01 from JCH.
In August 2014, Gynecology and Obstetrics Associates, Inc., (GOA), in Tallahassee, Florida, hired a firm to conduct an audit of all financial activities at the practice. The audit and subsequent investigation revealed that, between March 2007 and April 2013, GOA’s office manager, who was Moniz’s sister, embezzled approximately $1.5 million from GOA through a scheme involving fraudulent invoices, fictitious vendors, and payments funneled to the office manager’s personal accounts.
The investigation later disclosed that the GOA office manager used GOA monies to pay Moniz and BCS to conduct collections services for GOA. The collections services for which Moniz was paid were never performed. The office manager issued 39 checks from GOA to “BCBS,” making the checks appear as if they were issued to Blue Cross Blue Shield. However, the checks were actually provided to Moniz who endorsed and deposited them into her BCS bank account. The checks totaled $116,813.77.
This case resulted from an investigation by the Federal Bureau of Investigation and the Leon County Sheriff’s Office. Assistant United States Attorney Stephen M. Kunz prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Israeli Citizen Sentenced to 3 Years in Prison for FOREX FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that FADI EWIESS, a/k/a “Fadi Awise,” was sentenced today to three years in prison on wire fraud charges in connection with his participation in a scheme to defraud investors through the operation of a purported foreign exchange (“forex”) trading company called Golden Bridge FX. EWIESS pled guilty on April 11, 2017, and was sentenced by United States District Judge Deborah A. Batts.
Acting U.S. Attorney Joon H. Kim said: “As he admitted at his plea, Fadi Ewiess lied to prospective investors about his company’s expertise in the foreign exchange markets, sending them forged ‘guarantees’ from New York banks to entice them to invest with him. Ewiess and others raised more than $5 million from victims around the globe, but instead of investing it, he spent much of that money on gambling, personal expenses, and transfers to family members. Today, Fadi Ewiess learned the price of his criminal conduct.”
According to the Complaint, Information, and statements made during court proceedings:
From in or about 2015 through in or about 2016, EWIESS operated a company called Golden Bridge FX (“Golden Bridge”). Golden Bridge purported to host an online foreign currency trading platform that allowed customers to place bets on the direction with which particular currencies would move relative to others. Investors using this platform either made investments themselves or authorized representatives from Golden Bridge to do so on their behalf. In order to induce investments, EWIESS and others at Golden Bridge promised certain investors unrealistically high rates of return for managed accounts, and, in other instances, falsely told investors that their trading was guaranteed against losses by U.S. banks. To substantiate these purported guarantees, EWIESS and others distributed forged documents that appeared to have been (but in actuality were not) issued by the relevant banks.
EWIESS and others raised more than $5 million during the course of the scheme, with much of this money coming from investors in Saudi Arabia and other countries. Over $2 million of that amount, moreover, was raised through the use of the fraudulent guarantees described above. Instead of honoring these guarantees (or, indeed, placing any securities transactions at all), EWIESS spent millions of his investors’ money on personal expenses like travel and hotels, on gambling trips, and on transfers to his family members. Other investor money was used to pay returns to investors so that they would invest or refer additional money to EWIESS and Golden Bridge, thereby allowing the scheme to continue.
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In addition to the prison sentence, EWIESS, 39, of Israel, was ordered to forfeit a sum of $2,105,619.91 and the contents of five bank accounts associated with the scheme.
Mr. Kim praised the work of the Federal Bureau of Investigation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Robert Allen is in charge of the prosecution.
Houston, Texas Man Sentenced to 40 Months and a $95,000 Fine for Smuggling Korean Human Growth Hormone Drugs to Local Patients and Professional WrestlersRead the Press Release
St. Louis, MO – George Patino, 57, of Houston, Texas, was sentenced today to 40 months of imprisonment and a $95,000 fine. Patino was previously convicted by a jury on June 8, 2017 after a three-day trial of conspiracy, distributing Human Growth Hormone (“HGH”) for unauthorized medical purposes, and smuggling.
According to Court documents, under federal law, doctors can lawfully prescribe HGH for several narrow medical uses, for example to patients with wasting diseases associated with AIDS or Prader-Willi syndrome. HGH cannot be prescribed to help patients with body-building, anti-aging, or weight loss treatments. From April 2014 through June 2015, the evidence showed at trial that Mr. Patino sent numerous packages of HGH to a local St. Louis, Missouri doctor and many local patients. The local patients receiving the HGH hoped to increase their energy, strength, endurance, and athletic ability. The HGH smuggled here to Missouri by Mr. Patino was misbranded in that the drugs’ dosage and use instructions were in Spanish not English, and the drugs came from a Korean drug manufacturer that has not been approved by the U.S. Government to sell this drug in the United States.
A local doctor, Dr. Michael “Ted” Mimlitz, previously pled guilty in this same investigation to providing misbranded HGH drugs to numerous local patients who were experiencing a lack of energy, decreases in strength or endurance, or decreased athletic ability.
“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drugs are safe and effective for patients to use,” said Special Agent in Charge, Spencer Morrison, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
This case was investigated by the Office of Criminal Investigation for the U.S. Food and Drug Administration, with assistance from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.
Holbrook Man Pleads Guilty to Federal Drug ChargesRead the Press Release
BOSTON – A Holbrook man pleaded guilty yesterday in federal court in Boston to federal drug charges.
Arcelino Silva, 28, pleaded guilty to one count of possession with intent to distribute heroin, fentanyl, and cocaine; and one count of possession with intent to distribute heroin and cocaine. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 19, 2017.
Silva was arrested on May 1, 2016, for possession of suboxone while Silva was inside a vehicle in the parking lot of the apartment complex where he lived. Four cell phones, $8,500 in cash, and numerous bags containing over 60 grams of heroin, fentanyl, and cocaine were recovered during a search of the vehicle. While out on bail for state charges stemming from his May arrest, Silva was arrested on federal charges on Aug. 10, 2016. At the time of his arrest, officers seized from him over $3,000, six grams of cocaine and cocaine base, and approximately nine grams of heroin.
Each charge of possession with intent to distribute heroin, fentanyl, or cocaine provides for a sentence of no greater than 20 years in prison, up to a life term of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Holbrook Police Chief William J. Smith; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Theodore Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Grand Jury Issues Indictments Alleging Three Schemes to Smuggle Protected Coral Species in and Out of the United StatesRead the Press Release
LOS ANGELES – A federal grand jury has returned three indictments charging a total of three individuals and two companies with engaging in the unlawful trading of live corals that are protected by an international treaty known as the Convention on the International Trade of Endangered Species of Wild Fauna and Flora (CITES).
The indictments allege the defendants violated various federal statutes, including smuggling laws, The Endangered Species Act and a conservation statute known as The Lacey Act.
“The mountains, plains and oceans of this planet are under constant assault from those who would harvest these resources without end,” said Acting United States Attorney Sandra R. Brown. “The corals in these cases were being trafficked for the sole purpose of decorating fish tanks. We will enforce federal laws that control the trafficking of wildlife to ensure the ongoing survival of plants and animals that all serve an important role in the environment.”
“Special agents of the U.S. Fish and Wildlife Service investigated a complex scheme where live coral were illegally ripped from coral reefs, hidden in air cargo shipments and imported at odd hours in an attempt to smuggle them into the United States,” said USFWS Special Agent in Charge Jill Birchell. “This case highlights that wildlife smuggling is a transnational crime that often decimates not only wild populations of animals and fish, but, as in the case of smuggled live coral, the very habitat that imperiled wildlife depend on for survival. We will continue to work closely with our federal, international, and state partners to investigate and prosecute individuals who exploit protected wildlife for financial gain.”
The three indictments outlined below were returned by a grand jury on September 20.
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Renaissance Aquatics, Inc. and Lim Aqua-Nautic Specialist, Inc. – both located in Inglewood – and Chet Bryant, 37, of Houston, were charged with unlawfully importing live, CITES-protected corals from Vietnam and submitting false records to conceal their unlawful activity on seven occasions over a five-month period. According to court documents in this case, the corals were hidden from view in shipments containing other wildlife. The indictment also charges Renaissance and Bryant with conspiracy and attempting to unlawfully export live coral.
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Jose Torres, 42, of Gardena, was charged with unlawfully attempting to export to Mexico 20 varieties of live, CITES-protected corals. The indictment also alleges that Torres submitted false records to the USFWS that omitted the corals and understated the size of the shipment.
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Jorge Vazquez, 39, of Garden Grove, was charged with unlawfully attempting to export live, CITES-protected corals. Transportation Security Administration officers found the corals hidden in Pringles potato chip cans during a baggage inspection at Los Angeles International Airport. Vazquez later admitted that he packed the corals into the Pringles cans, then placed the cans in his mother’s luggage for her to transport to Mexico.
The five defendants will be summoned to appear for arraignment in the United States District Court in the coming weeks.
Each of the three indictments alleges multiple federal charges, including attempting to export wildlife contrary to law, a charge that carries a statutory maximum penalty of 10 years in federal prison. Bryant is charged with seven counts of wildlife smuggling, each of which carries a statutory maximum penalty of 20 years of imprisonment.
These cases were investigated by the United States Fish and Wildlife Service.
The cases are being prosecuted by Assistant United States Attorneys Heather C. Gorman and Dennis Mitchell of the Environmental and Community Safety Crimes Section.
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Gilmer County man admits to illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA –Jeremy Allen Wolfe, of Glenville, West Virginia has admitted to illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Wolfe , age 32, pled guilty to one count of “Felon in Possession of Firearm.” In November 2014, Wolfe was found in possession of multiple firearms, including three rifles and two shotguns, in Calhoun County, WV. Wolfe, having been convicted of a crime punishable by imprisonment for a term exceeding one year, that is, Delivery of a Controlled Substance, in Gilmer County, WV is prohibited from possessing firearms.
He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.Garland Tax Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
DALLAS — Mike Cano of Wylie, Texas, appeared in federal court this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of aiding and assisting in the preparation of false individual income tax returns, announced U.S. Attorney John Parker of the Northern District of Texas.
Sentencing is set for January 10, 2018, before Chief U.S. District Judge Barbara M.G. Lynn. Cano faces a statutory maximum penalty of three years in federal prison and a $100,000 fine. He may also be ordered to pay restitution.
On September 21, 2016, Cano and co-defendants Jimmy Luis Briseno, Rene N. Barrera, Sr. and Christopher Lee DeLeon were charged with conspiracy to defraud the IRS and other charges related to the filing of false tax returns. According to the factual resume filed in the case, from January 2011 through March 2012, Cano worked as a tax return preparer for Briseno at Tax Genius offices in Garland, Texas. In his plea papers, Cano admitted that DeLeon, Briseno, Barrera and Cano all routinely prepared and caused to be electronically filed with the IRS individual income tax returns that contained one or more of the following falsely inflated or fictitious items: false Forms Schedule C; false and fabricated Education Credits, and false items used to inflate and maximize the Earned Income Tax Credit (EITC) on the tax return. Cano also stated that Briseno trained Cano and others how to file false tax returns in 2011 and 2012. During this period, Cano and his co-defendants caused false and fraudulent information and documents to be submitted to the IRS with the intent to fraudulently cause the IRS to pay refunds based on this false tax information.
Cano caused the filing of seven false tax returns resulting in a tax loss of $31,367 due to false refunds claimed.
IRS Criminal Investigation is investigating the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Former Treasurer of Fraternal Order of Police Lodge Indicted for Embezzling More Than $110,000Read the Press Release
CHARLOTTE, N.C. – The former Treasurer of a Fraternal Order of Police Lodge, Timothy James Brewer, 63, of Newton, N.C., has been indicted on wire fraud charges for embezzling more than $110,000 from the non-profit organization, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The federal grand jury returned the criminal indictment on September 19, 2017, and it was unsealed this morning following Brewer’s court appearance before U.S. Magistrate Judge David C. Keesler.
U.S. Attorney Rose is joined in making today’s announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service.
According to allegations contained in the bill of indictment, from 2005 to 2016, Brewer worked for the Catawba County Fraternal Order of Police Lodge #26 (FOP), located in Newton, and was elected to serve as its Treasurer. As fiduciary of the FOP, Brewer was responsible for the financial affairs of the organization to include acting as the custodian of the funds.
Over the course of his employment at the FOP, the indictment alleges that Brewer engaged in a scheme to defraud the FOP by fraudulently diverting the organization’s funds for his personal benefit. As alleged in the indictment, Brewer fraudulently obtained approximately $110,134.64 from the FOP and converted the funds for his personal gain without any authority from the FOP. Brewer was the sole recipient of bank and credit card statements which were mailed directly to his residence, thereby concealing the nature of the purchases from the FOP.
The indictment alleges that Brewer misused an FOP credit card, of which Brewer was an authorized user, for personal use, and successfully converted approximately $61,875.03 for his personal gain. Brewer also used an FOP bank account to pay the balance on a personal credit card, and converted approximately an additional $48,259.61 for his own personal gain without any authority from the FOP. According to allegations in the indictment, Brewer used the fraudulently converted funds to pay for, among other things, restaurants, hotels and medical bills.
Brewer has been released on bond. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was handled by USPIS assisted by the Newton Police Department. Assistant United States Attorney Jenny Sugar, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Former St. Joseph Scout Leader Charged with Distributing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former St. Joseph, Mo., Boy Scout leader has been charged in federal court with distributing child pornography over the Internet.
Michael R. Goeller, 45, of St. Joseph, was charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Thursday, Sept. 22, 2017. The complaint was unsealed and made public following Goeller’s arrest on Monday, Sept. 25, 2017. Goeller remains in federal custody pending a detention hearing, which has not yet been scheduled.
According to an affidavit filed in support of the criminal complaint, the investigation began on Feb. 15, 2017, when a law enforcement officer in Arkansas downloaded a video file that contained child pornography through a peer-to-peer file-sharing network that was later linked to Goeller’s computer.
On Sept. 20, 2017, law enforcement officers executed a search warrant at Goeller’s apartment and seized a laptop computer and other digital electronic devices and digital media storage devices. A full forensic digital examination of the devices seized from Goeller is pending, the affidavit says, but a digital forensic preview tool was utilized on the laptop and indicated at least 10 images of child pornography and other files names with terms associated with child pornography.
After the completion of the search warrant, the affidavit says, investigators learned that Goeller had made contact with a local priest to confess to child pornography having been found on his computer. Goeller also immediately resigned as an assistant scoutmaster with the Boy Scouts of America due to his interaction with this criminal investigation.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Gulf Cartel Leader Convicted of Drug Conspiracy and Assaults on Federal OfficersRead the Press Release
BROWNSVILLE, Texas - Jorge Costilla-Sanchez has pleaded guilty to conspiracy to possess with intent to distribute cocaine and marijuana as well as two counts of assault on a federal officer, announced Acting U.S. Attorney Abe Martinez.
Costilla-Sanchez, 46, was the head of the Gulf Cartel (CDG) for some of the years following the arrest of Osiel Cardenas in 2003 and before Costilla-Sanchez’s arrest in September 2012. Since the 1990s, the CDG has been the lead transnational narcotics trafficking and money laundering organization in Northern Tamaulipas, Mexico.
During his association with the CDG, Costilla-Sanchez was responsible for making strategic decisions and trying to manage various factions within the CDG. From 1998-2012, Costilla-Sanchez helped provide leadership to the CDG which resulted in the importation of thousands of kilograms of cocaine and marijuana into the United States. CDG narcotics enter the country at the Ports of Entry in Hidalgo and Cameron County, along the Rio Grande River and through lanchas arriving along the National Seashore at Padre Island. Once imported into the U.S., traffickers here would transport the narcotics to various cities throughout the United States. Profits from the sale of narcotics were returned to the CDG in Mexico. Money laundering efforts to promote this scheme included bulk cash currency smuggling to Northern Mexico, the use of funnel accounts to wire money into banking accounts for eventual repatriation to the CDG and the purchase of assets to disguise the illicit nature of these drug proceeds.
Other key parts of the CDG drug trafficking organization were the promotion of public corruption as well as the collection of a “piso” or tax from business owners, illegal alien smugglers and independent narcotics traffickers in Mexico which would allow them to operate.
During his guilty plea today, Costilla-Sanchez acknowledged his participation in a conspiracy to possess with intent to distribute kilogram amounts of cocaine and marijuana.
He also admitted his involvement in the assault of two federal officers. In November 1999, Costilla-Sanchez was with Cardenas when two U.S. federal agents were seen near a CDG residence. Cardenas called out on a two-way radio to his security team and ordered them to stop the agents. The CDG had at least four vehicles deployed to force the U.S. agents to stop in broad daylight on a heavily traveled street in Matamoros. Costilla-Sanchez also arrived at the stop and carried a pistol to the encounter. Several CDG members also pointed AK-47s at the agents who felt in fear of losing their lives. Cardenas and another co-defendant - Juan Carlos De La Cruz Reyna – also pleaded guilty to the assault and were both sentenced to prison.
Costilla-Sanchez’s sentencing has been set for Jan. 4, 2018, before U.S. District Judge Hilda G. Tagle. At that time, Costilla-Sanchez faces a minimum of 10 years and up to life in federal prison. He is also subject to a money judgement regarding the proceeds he obtained during his participation in the conspiracy. That amount will be determined at the time of sentencing.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, Cameron County Sheriff’s Office and Brownsville Police Department conducted the investigation. Assistant U.S. Attorneys Jody Young, Toni Trevino and Karen Betancourt are prosecuting the case.
Former FBI Agent Sentenced in Federal CourtRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated that, Kenneth W. Hillman, III, age 47, of Dalton, Georgia was sentenced in federal court in Rome, Georgia for disclosure of confidential information, a violation of 18 U.S.C. § 1905. Senior United States District Judge Harold L. Murphy of Rome sentenced Hillman to six (6) months’ probation, $1,000 fine and a special assessment of $25.00.
Evidence presented at the change of plea hearing established that between August 1, 2012 and November 30, 2012, the Department of Justice Federal Bureau of Investigations (FBI) employed Mr. Hillman as a Special Agent in the Northern District of Georgia. Mr. Hillman was assigned as the lead agent of the Northwest Georgia Internet Crime and Child Exploitation Task Force (Task Force). This Task Force included other officers assigned from local law enforcement agencies.
The Task Force was authorized to investigate and solicit, via the internet, persons seeking to have sexual relations with children. This Task Force used an undercover facility along with undercover computers, government cell phones and specialized internet chat language designed by and known only to the Task Force members to solicit and lure these individuals to the area where they were arrested.
During this period, neither E. R. nor A. R. were law enforcement officers or members of the Task Force. Mr. Hillman disclosed sensitive, but unclassified, information as to the operation of this Task Force to E. R. and A. R. This disclosure included allowing E. R., on one occasion, and A. R. to view agents involved in the internet chatting with some individuals and allowing them to accompany agents during the arrests of some of these individuals.
Mr. Hillman also allowed A. R. access to a sensitive, but unclassified, undercover FBI computer and the specialized internet chat language used by the Task Force. Mr. Hillman allowed A. R., using the FBI’s undercover computer and the specialized language, to conduct several chats with persons on behalf of the Task Force. A. R. recruited several individuals who were looking to engage sexually with minor children to the area. These persons were arrested.Mr. Hillman was not authorized by law to divulge, disclose or make known in any manner the Task Force operation to E. R. and/or A. R., or to allow A. R. to participate in the undercover operation of the Task Force, to possess and operate FBI equipment, to conduct chats, arrests, or otherwise be involved in the operation of the Task Force.
The case was investigated by agents of the Department of Justice, Office of the Inspector General. Assistant United States Attorneys William K. Witherspoon and James H. May of the United States Attorney’s Office, District of South Carolina, because the United States Attorney’s Office in the Northern District of Georgia had been recused from the matter.
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Felon from Sandia Pueblo Sentenced for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Robert Lorenzo Perea, 32, of Sandia Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 21 months in prison for violating federal firearms laws by unlawfully possessing a firearm and ammunition. Perea will be on supervised release for three years after completing his prison sentence.
Perea was arrested in Nov. 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on Jan. 31, 2016, in Sandoval County, N.M. According to the indictment, Perea was prohibited from possessing firearms or ammunition because he previously had been convicted of child abuse and false imprisonment.
On Jan. 20, 2017, Perea pled guilty to the indictment. In entering the guilty plea, Perea, admitted that on March 29, 2010, he was convicted of two counts of child abuse and false imprisonment and was therefore prohibited from possessing firearms or ammunition on Jan. 31, 2016.
This case was investigated by the Albuquerque office of the FBI and the Sandia Pueblo Police Department. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Federal inmate sentenced to prison for possessing a weaponRead the Press Release
CHARLESTON, W.Va. – A federal inmate was sentenced today to a year and three months in prison for possessing a weapon at the Federal Correctional Institution at McDowell, announced United States Attorney Carol Casto. Christopher Williams, 31, previously pleaded guilty to possession of a weapon by an inmate of the institution.
Williams admitted that on August 25, 2016, he possessed a handcrafted weapon commonly known as a “shank.” The weapon was a piece of metal approximately six inches long, sharpened on one end, with a handle made of duct tape. The weapon was discovered during a search of Williams when a prison staff member observed it fall from his clothing.
This case was investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
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