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Tuesday 8 August 2017
Arizona Man Sentenced to Prison for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Adrian Soto, 32, of Phoenix, Ariz., was sentenced today in federal court in Albuquerque, N.M., to 48 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Soto was arrested on March 29, 2016, and charged with a methamphetamine trafficking offense after the DEA seized a total of 4.95 kilograms (11.08 pounds) of methamphetamine during an interdiction investigation at the Greyhound Bus Station. The methamphetamine was concealed in various bundles inside Soto’s luggage.
Soto was subsequently indicted on April 27, 2016, and was charged with possession of methamphetamine with intent to distribute on March 29, 2016, in Bernalillo County, N.M.
On Sept. 19, 2016, Soto pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Soto admitted transporting methamphetamine to Albuquerque on a Greyhound bus by concealing the methamphetamine in a gift-wrapped package in his luggage.
This case was investigated by the Albuquerque office of the DEA and Assistant U.S. Attorney Paul H. Spiers prosecuted the case.
Altoona Man Facing Child Pornography Distribution and Possession ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of Altoona, Pa. was indicted today by a federal grand jury in Johnstown on charges of distribution and possession of child pornography, Acting United States Attorney Soo C. Song announced today.
The superseding indictment named Kenneth Scott Boyd, 34, of Altoona, Pa., as the sole defendant.
According to the superseding indictment presented to the court, on June 2, 2016, Boyd distributed material depicting the sexual exploitation of a minor, and on June 17, 2016, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 25 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and Altoona Police Department conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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 better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Albuquerque Man Sentenced for Federal Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – Kenneth Columbus Burwell, 54, of Albuquerque, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 46 months in prison followed by three years of supervised release for his conviction on a bank robbery charge.
Burwell was arrested in Nov. 2016, on a criminal complaint charging him with robbing the US Bank branch located at 3000 Central Ave. SE in Albuquerque on Oct. 14, 2015. Burwell subsequently was indicted on Nov. 15, 2016, and charged with bank robbery.
On March 7, 2017, Burwell pled guilty to the indictment, and admitted that on Oct. 14, 2015, he robbed the US Bank branch by approaching the bank teller, demanding money, and threatening to shoot the teller if she pulled the alarm. Burwell further admitted that after threatening the teller, he pulled his shirt tight showing an impression of a gun-shaped item concealed beneath his clothing.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe prosecuted the case.
Albuquerque Felon Charged with Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – This morning Abran Apodaca, 37, of Albuquerque, N.M., made his initial appearance before a U.S. Magistrate Judge on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. The charge arises from an Aug. 4, 2017 incident during which FBI Special Agents and a Task Force Officer fired at Apodaca after he allegedly pointed a rifle at an Agent.
The criminal complaint alleges that on Aug. 4, 2017, after learning that Apodaca had an active state arrest warrant for an alleged probation violation, FBI Special Agents and Task Force Officers conducted surveillance at Apodaca’s residence. During their surveillance, the agents and officers observed Apodaca and two other individuals drive up to the residence in a gray vehicle. After observing Apodaca enter and exit the residence and re-enter the gray vehicle, FBI Special Agents engaged their vehicles’ emergency lights and approached the gray vehicle with the intention of arresting Apodaca. Apodaca, who was driving the gray vehicle, allegedly responded by accelerating into an agent’s vehicle and maneuvering around the agent’s vehicle. Apodaca then allegedly pointed a rifle at the agent, and FBI Special Agents and a Task Force Officer responded by firing at Apodaca. Apodaca sustained a gunshot wound. Special Agents rendered aid to Apodaca, and then arrested him and transported him to a hospital.
According to the criminal complaint, FBI Special Agents and Task Force Officers seized a rifle, which was found adjacent to the gray vehicle in the area where they arrested Apodaca. The criminal complaint alleges that Apodaca was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
FBI agents arrested Apodaca on the criminal complaint this morning. Apodaca remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled at 9:30 a.m. tomorrow morning.
If convicted on the crime charged in the criminal complaint, Apodaca faces a statutory maximum penalty of ten years of imprisonment and a $250,000 fine. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Alexander M. Uballez is prosecuting the case.
Apodaca ComplaintAiken Man Sentenced for Investor FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Arthur Vann, age 65, of Aiken, South Carolina, was sentenced to four years’ incarceration for participation in a Conspiracy to defraud investors, in violation of 18 U.S.C. § 371. United States District Judge J. Michelle Childs, of Columbia, also ordered Vann to pay over $3.2 million in restitution to fourteen victims.
Evidence presented during his change of plea hearing in November 2016 established that Vann had an interest in various offshore bank accounts and companies, primarily located in the Caribbean. As a financial adviser, he directed a number of clients to invest in a particular fund focused on the Cayman Islands. When money was transferred for this purpose, Vann diverted some of it into accounts he controlled and spent it for his own benefit. When confronted by a number of investors, he sent them fake statements purporting to reflect the investments made.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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Monday 7 August 2017
‘Shot-Caller’ of Boyle Heights Gang Controlled by Mexican Mafia Sentenced to 15-Year Prison Term in Federal Racketeering CaseRead the Press Release
LOS ANGELES – One of the leaders of the Hazard street gang – a Mexican Mafia-controlled criminal enterprise that has been responsible for criminal activity in and around the Ramona Gardens housing complex in Boyle Heights for decades – was sentenced today to 15 years in prison for his conviction on federal racketeering and drug trafficking offenses.
Victor Barrios, 43, a Mexican national who most recently resided in Boyle Heights, was sentenced by United States District Judge Christina A. Snyder.
Barrios pleaded guilty on April 26 to conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act and conspiring to traffic narcotics. When he pleaded guilty, Barrios admitted he played “a leadership role for the gang’s criminal activities,” which included overseeing drug sales, the collection of extortionate “tax” payments from area drug dealers, and plots to commit acts of violence.
Barrios was one of 27 defendants named in a racketeering indictment unsealed in December 2014. The 110-page indictment outlined a wide range of criminal activity, including dozens of drug deals, acts of intimidation and violence against people believed to have cooperated with law enforcement, illegal weapons sales, and threats made against African-American residents of Ramona Gardens. Barrios is one of 18 defendants who have pleaded guilty. The remaining nine defendants are scheduled to go on trial on November 28.
The investigation into the Hazard gang was conducted by the Federal Bureau of Investigation; the Los Angeles Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and IRS Criminal Investigation, which worked in conjunction with the Los Angeles County Sheriff’s Department and the Alhambra Police Department.
The case is being prosecuted by Assistant United States Attorneys Benjamin Barron and Christopher Kendall of the Organized Crime Drug Enforcement Task Force.
Wichita Restaurant Owner Pleads Guilty to Drug TraffickingRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty in federal court Monday to drug trafficking and agreed to forfeit the building where his restaurant is located as well as other assets, U.S. Attorney Tom Beall said. Two co-defendants also entered guilty pleas.
Gerald Beasley, 62, Wichita, Kan., owner of Tiara’s Place, pleaded guilty to one count of possession with intent to distribute cocaine and one count of unlawful possession of a firearm in furtherance of drug trafficking.
Also on Monday, co-defendant Terry Beasley, 63, Wichita, Kan., pleaded guilty to one count of money laundering. Co-defendant Brandon Smith, 46, Wichita, Kan., pleaded guilty to one count of conspiracy to distribute marijuana.
In his plea, Gerald Beasley admitted he stored cocaine and other narcotics in a residence in the 2400 block of North Piatt Street in Wichita, meeting with buyers both at the residence and the restaurant at 1339 N. Hillside. He carried a High Standard derringer handgun to protect himself during drug transactions.
In his plea agreement, Gerald Beasley agreed to forfeit his home in Andover, his restaurant, a number of real estate properties, more than $75,000 in cash and bank accounts with a value of more than $75,000, as well as other assets.
In his plea, Terry Beasley admitted he made money through the trafficking of controlled substances, illegal gambling and the illegal production and sale of false documents. He kept the proceeds hidden in a safe in a storage facility. The plea agreement calls for him to forfeit more than $67,000 in cash that was seized from him.
In Smith’s plea, he admitted he conspired to distribute marijuana. Investigators recorded calls in which he ordered drugs from Gerald Beasley.
Sentencing is set for Gerald Beasley on Oct. 30, for Terry Beasley on Nov. 6 and for Smith on Nov. 13. Both parties have agreed to recommend Gerald Beasley be sentenced to 108 months in federal prison and Terry Beasley be sentenced to a year and a day. Smith faces a sentence of up to 10 years and a fine up to $250,000.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal revenue Service, the Sedgwick County District Attorney’s Office, Assistant U.S. Attorney Debra Barnett and Assistant U.S. Attorney Michelle Jacobs for their work on the case.
Wichita Man Sentenced for Armed Robbery SpreeRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to 11 years in federal prison for a series of armed robberies, U.S. Attorney Tom Beall said.
Brandon V. Wells, 23, Wichita, Kan., pleaded guilty in April to five counts of robbery and one count of brandishing a firearm during a robbery.
In his plea, Wells admitted to the following robberies:
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Jan. 27, 2017, Circle K, 1250 S. Rock Road, Wichita.
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Jan. 28, 2017: O’Reilly Auto Parts, 4818 E. Lincoln, Wichita.
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Jan. 30, 2017: O’Reilly Auto Parts, 4636 S. Broadway, Wichita.
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Feb. 4, 2017: O’Reilly Auto Parts, 4130 W. Central, Wichita
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Feb. 5, 2017: O’Reilly Auto Parts, 3220 N. Rock, Wichita.
During the robberies, Wells and an accomplice threatened employees with a weapon and demanded money. The firearm charge is tied to a Feb. 6, 2017, robbery at O’Reilly Auto Parts, 3109 E. Pawnee.
Beall commended the Wichita Police Department, the FBI Safe Streets Task Force and Assistant U.S. Attorney Lanny Welch for their work on the case.
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Virginia man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Wilbur Reid, Jr., of Roanoke, Virginia, was sentenced today to 46 months incarceration for possessing heroin, Acting United States Attorney Betsy Steinfeld Jividen announced.
Reid, age 42, pled guilty to one count of “Possession with Intent to Distribute Heroin” in April 2017. Reid admitted to committing the crime in September 2016 in Berkeley County.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Violent Carjacker Ordered to Federal PrisonRead the Press Release
HOUSTON – A 21-year-old Houston man has been ordered to federal prison after shooting a victim multiple times during an attempted carjacking, announced Acting U.S. Attorney Abe Martinez. Adarrion Christie pleaded guilty May 2, 2017.
Today, U.S. District Judge Lynn Hughes ordered Christie to serve 51 months for the attempted carjacking as well as a consecutive 10 years for aiding and abetting the discharging of a firearm during a crime of violence. Following his total 171-month sentence, he will serve five years of supervised release. Additional information was also presented today including letters from the victims in the case. The court also heard from a relative who explained the pain and suffering the families have endured. Christie was further ordered to pay $25,000 in restitution to the victims. In handing down the sentence, Judge Hughes told Christie he knew what would happen when he pulled the trigger, noting “you did what you wanted to do regardless of the consequences.”
Co-defendant Derek Harper, 22, also of Houston, pleaded guilty to aiding and abetting the discharging of a firearm and is set for sentencing Sept. 5, 2017.
On March 31, 2016, Christie and Harper attempted to commit a carjacking. Christie admitted that he “tousled” with the male driver over the keys, which the victim did not want to relinquish because his wife and two-year-old daughter were also in the vehicle. Christie ultimately shot the victim multiple times at close range with a .45 caliber gun. Harper was unarmed and had been ordering the man’s wife to get the baby out of the car. Christie and Harper fled without obtaining the vehicle, but were later found and taken into custody.
Both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Harris County Sherriff’s Office and Houston Police Department conducted the investigation. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Two Former Ellis County Sherriff’s Office Employees Admit to Stealing and Selling FirearmsRead the Press Release
DALLAS — Thomas Glen Smith, 50, and Philip Gary Slaughter, 42, both appeared in federal court and pleaded guilty to one count of possession or sale of stolen firearms, announced U.S. Attorney John Parker of the Northern District of Texas.
Smith and Slaughter were charged in separate, but related cases in June 2017 and May 2017, respectively. The maximum penalty for the offense charged is 10 years in federal prison and a $250,000 fine. Restitution may also be ordered. Both defendants will remain on bond pending sentencing.
According to plea documents filed in the case, Smith and Slaughter worked at the Ellis County Sherriff s Office (ECSO) in the ECSO Evidence Room. Their responsibilities included reorganizing the ECSO Evidence Room, where they had access to numerous firearms seized by the ECSO. On November 18, 2015 Slaughter obtained a court order to destroy hundreds of the firearms in the ECSO Evidence Room. Some of these firearms, however, were not destroyed and, instead, Smith and Slaughter sold approximately forty firearms taken from the ECSO Evidence Room.
At various times in November and December, 2015, Smith and Slaughter pawned several firearms at various pawn stores in the Ellis County area. The defendants would also use their Facebook accounts to sell firearms to individuals. These firearms were either supposed to be in the possession of the ECSO Evidence Room or were listed in the destruction order.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety—Texas Ranger Division. Assistant U.S. Attorneys Kate Rumsey and Errin Martin are in charge of the prosecution.
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Two Eastern Panhandle residents indicted on drug distribution chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Kearneysville, West Virginia residents were indicted by a federal grand jury on July 25, 2017 on drug distribution charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Gerald Gibbs, age 29, was indicted on one count of “Conspiracy to Distribute a Controlled Substance,” two counts of “Distribution of a Controlled Substance,” and two counts of “Possession with Intent to Distribute a Controlled Substance.”
Jennifer Gibbs, age 31, was indicted on one count of “Conspiracy to Distribute a Controlled Substance,” two counts of “Distribution of a Controlled Substance,” and two counts of “Possession with Intent to Distribute a Controlled Substance.”
The crimes are alleged to have taken place from June 2016 to March 2017 in Jefferson County, West Virginia.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Statement by Attorney General Sessions on the City of Chicago’s Lawsuit Against the U.S. Department of JusticeRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the city of Chicago’s lawsuit against the U.S. Department of Justice:
“No amount of federal taxpayer dollars will help a city that refuses to help its own residents.
“This administration is committed to the rule of law and to enforcing the laws established by Congress. To a degree perhaps unsurpassed by any other jurisdiction, the political leadership of Chicago has chosen deliberately and intentionally to adopt a policy that obstructs this country’s lawful immigration system. They have demonstrated an open hostility to enforcing laws designed to protect law enforcement — Federal, state, and local — and reduce crime, and instead have adopted an official policy of protecting criminal aliens who prey on their own residents. This is astounding given the unprecedented violent crime surge in Chicago, with the number of murders in 2016 surpassing both New York and Los Angeles combined. The city’s leaders cannot follow some laws and ignore others and reasonably expect this horrific situation to improve.
“The Mayor complains that the federal government’s focus on enforcing the law would require a ‘reordering of law enforcement practice in Chicago.’ But that’s just what Chicago needs: a recommitment to the rule of law and to policies that rollback the culture of lawlessness that has beset the city.
“This administration will not simply give away grant dollars to city governments that proudly violate the rule of law and protect criminal aliens at the expense of public safety. So it’s this simple: Comply with the law or forego taxpayer dollars.”
Solano County Man Indicted for Possessing Marijuana and Cocaine for Distribution Near a School ZoneRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Maurice Antoine Jefferson, 42, of American Canyon, charging him with possessing marijuana and cocaine for distribution within 1,000 feet of the Will C. Wood High School on Marshall Road in Vacaville and for possessing a firearm as a felon, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Jefferson was the sole proprietor of Shredders Federation clothing store in Vacaville and allegedly used the business as a cover to distribute marijuana and cocaine to high school students and others and as a front for money laundering. When law enforcement officers executed a search warrant at the store in August 2016, they found 6.4 pounds of marijuana, 129 grams of cocaine, and other indicia of drug distribution. Jefferson was carrying a 9 mm pistol with him when Vacaville Police Officers arrived at the business. Jefferson has a felony conviction and is not allowed to possess any firearms.
This case is the product of an investigation by the Federal Bureau of Investigation’s Solano County Violent Crime Task Force, the Vacaville Police Department and the Napa Special Investigations Bureau with assistance from the Solano County District Attorney’s Office. Assistant U.S. Attorney Jason Hitt is prosecuting the case.
If convicted of possessing marijuana with intent to distribute near a school zone, Jefferson faces a maximum statutory penalty of 20 years in prison and a $1 million fine. If convicted of possessing cocaine with intent to distribute near a school zone, Jefferson faces a maximum statutory penalty of 60 years in prison and a $20 million fine. If convicted of possessing a firearm as a felon, he faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sinaloa Cartel Cell Leader Self-Surrenders at BorderRead the Press Release
Assistant U.S. Attorney Adam Braverman (619) 546-6717
NEWS RELEASE SUMMARY – August 7, 2017
SAN DIEGO – Sinaloa Cartel Cell Leader Damaso Lopez-Serrano, aka Mini Lic, was arraigned in federal court today following his self-surrender to United States law enforcement authorities at the Calexico West Port of Entry on July 27.
Lopez-Serrano, 29, is believed to be the highest-ranking Mexican cartel leader ever to self-surrender in the United States. Lopez-Serrano was arraigned on an indictment returned by a federal grand jury in San Diego on August 19, 2016, charging him and five of his close associates, including Nahum Sicairos-Montalvo, aka Kinceanero, with Conspiracy to Distribute Controlled Substances Intended for Importation and Conspiracy to Import Controlled Substances.
United States District Court Judge Dana M. Sabraw arraigned Lopez-Serrano on these charges today and unsealed the indictment against these two defendants. Lopez-Serrano did not seek bond and will remain in custody. A status hearing is scheduled for November 2, 2017 at 10 a.m. before Judge Sabraw.
The announcement was made by Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney for the Southern District of California Alana Robinson.
The United States also announced today the unsealing of an additional indictment returned December 4, 2016, in the Eastern District of Virginia by the U.S. Attorney’s Office for the Eastern District of Virginia and the Criminal Division’s Narcotic and Dangerous Drug Section charging father and son, Damaso Lopez Nunez and Damaso Lopez Serrano, respectively, with Conspiracy to Distribute Controlled Substances Intended for Importation. Damaso Lopez Nunez was arrested by Mexican authorities on May 2, 2017, and the United States is in the process of seeking his extradition on the December 4 indictment. Lopez Serrano will be arraigned on this indictment at a future date.
“At a time when more Americans than ever are dying from drug overdoses, the Department of Justice has made it a top priority to target the Mexican Cartel leaders responsible for the dangerous drugs that poison our families,” said Attorney General Sessions. “We will continue to go after these cartel leaders in order to dismantle their organizations from top to bottom, and today’s announcement should send them a clear message: you can turn yourselves in the easy way, or we will find you and bring you to justice the hard way. No matter what, you will face the consequences.”
“This extraordinary case is this district’s most significant, comprehensive and large-scale cartel prosecution,” said Acting U.S. Attorney Alana Robinson. “Today marks another important step in the dismantling of the Sinaloa Cartel and is a reflection of law enforcement’s focused efforts these last several years to put an end to this most powerful drug trafficking organization.”
“The arrest of this key cartel leader is a significant blow to the Sinaloa Cartel,” said DEA San Diego Special Agent in Charge William R. Sherman. “DEA remains vigilant in its mission to keep investigating this organization and arresting these individuals who sell their poison to the citizens of the United States.”
The Southern District of California indictment unsealed today marks the conclusion of the fourth phase of a five-year investigation that, in total, has resulted in charges against over 125 people and has had a significant impact on the worldwide operations of the Sinaloa Cartel. This investigation has also offered one of the most comprehensive views to date of the inner workings of one of the world’s most prolific, violent and powerful drug cartels. Cartel members and associates were targeted in this massive investigation involving multiple countries, numerous law enforcement agencies around the United States, a number of federal districts and over 250 court-authorized wiretaps in this district alone.
This case began in late 2011 as an investigation of what was at first believed to be a small-scale drug distribution cell in National City and Chula Vista. It became evident that the drugs were being supplied by the Sinaloa Cartel, and the case evolved into a massive multi-national, multi-state probe that resulted in scores of arrests and seizures of 1,397 kilograms of methamphetamine, 2,214 kilograms of cocaine, 17.2 tons of marijuana, 95.84 kilograms of heroin, and $27,892,706.00 in narcotics proceeds.
The primary indictment in this investigation was previously unsealed targeting the alleged leader of the cartel, Ismael Zambada-Garcia, known as “El Mayo,” as well as two of his four sons - Ismael Zambada-Sicairos, known as “Mayito Flaco,” and Ismael Zambada-Imperial, known as “Mayito Gordo.” Zambada-Imperial was arrested by Mexican authorities in November 2014 and is pending extradition to the Southern District of California. Also part of that indictment is Ivan Archivaldo Guzman-Salazar, known as “Chapito,” whose father Joaquín “El Chapo” Guzmán Loera was the alleged leader of the Sinaloa Cartel along with Mayo.
As part of this investigation, U.S. authorities previously arrested and prosecuted another son of Mayo - Serafin Zambada-Ortiz, who pleaded guilty in the Southern District of California in September 2014 to drug trafficking charges.
José Rodrigo Aréchiga-Gamboa, commonly referred to by his alias "El Chino Ántrax,” was arrested in the Netherlands, extradited to the United States by Dutch authorities in July 2014 and pleaded guilty to drug trafficking charges in May 2015. Arechiga-Gamboa is believed to have worked for the Sinaloa Cartel as the leader of a violent enforcement arm of the Sinaloa Cartel called “Los Antrax” and a key lieutenant of Mayo.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS Case Number 16CR1896-DMS
Damaso Lopez-Serrano, aka Mini Lic Age: 29 Culiacan, Mexico
Nahum Abraham Sicairos-Montalvo, aka Kinceanero Age: 29 Culiacan, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
Internal Revenue Service
Federal Bureau of Investigation
United States Attorney’s Office, Northern District of Illinois
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
*An indictment or complaint is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Sinaloa Cartel Cell Leader Self-SurrendersRead the Press Release
A cell leader of the Sinaloa drug cartel was arraigned in federal court today following his self-surrender to U.S. law enforcement authorities at the Calexico West Port of Entry in California, on July 27.
Damaso Lopez-Serrano, aka Mini Lic, 29, is believed to be the highest-ranking Mexican cartel leader ever to self-surrender in the U.S. Lopez-Serrano was arraigned on an indictment returned by a federal grand jury in San Diego on Aug. 19, 2016, charging him and five of his close associates, including Nahum Sicairos-Montalvo, aka Kinceanero, with Conspiracy to Distribute Controlled Substances Intended for Importation and Conspiracy to Import Controlled Substances. U.S. District Court Judge Dana M. Sabraw arraigned Lopez-Serrano on these charges and unsealed the indictment against these two defendants.
The announcement was made by Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana Robinson for the Southern District of California and Special Agent in Charge William R. Sherman of the Drug Enforcement Administration’s San Diego Field Office.
The U.S. also announced today the unsealing of an additional indictment returned Dec. 14, 2016, in the Eastern District of Virginia by the U.S. Attorney’s Office for the Eastern District of Virginia and the Criminal Division’s Narcotic and Dangerous Drug Section charging father and son, Damaso Lopez Nunez and Damaso Lopez Serrano, respectively, with Conspiracy to Distribute Controlled Substances Intended for Importation. Damaso Lopez Nunez was arrested by Mexican authorities on May 2, and the U.S. is in the process of seeking his extradition on the December 14 indictment. Lopez Serrano will be arraigned on this indictment at a future date.
“At a time when more Americans than ever are dying from drug overdoses, the Department of Justice has made it a top priority to target the Mexican Cartel leaders responsible for the dangerous drugs that poison our families,” said Attorney General Sessions. “We will continue to go after these cartel leaders in order to dismantle their organizations from top to bottom, and today’s announcement should send them a clear message: you can turn yourselves in the easy way, or we will find you and bring you to justice the hard way. No matter what, you will face the consequences.”
The Southern District of California indictment unsealed today marks the conclusion of the fourth phase of a five-year OCDETF investigation Operation Narco Polo that, in total, has resulted in charges against over 125 people and has had a significant impact on the worldwide operations of the Sinaloa Cartel.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Sergeant Bluff Woman Pleads Guilty to Making False Statements in Connection with a Highway ProjectRead the Press Release
A woman who made false statements in connection with a highway project pled guilty August 7, 2017, in federal court in Sioux City.
Jenna Danielle Wilson, 31, from Sergeant Bluff, Iowa, was convicted of one count of making false statements in connection with a highway project.
At the plea hearing, Wilson admitted that between January 28, 2016, and July 28, 2016, she knowingly made false representations, false reports, and false claims with respect to the cost of work performed or to be performed or materials furnished or to be furnished in connection with the construction of a highway or related project approved by the Secretary of Transportation. Wilson, while an officer of K&L Inc., submitted falsified Expanded Polystyrene Fill (EPS) invoices to general contractor, Godbersen-Smith Co., and ultimately, the Iowa Department of Transportation for stockpiled materials on the I-29 Sioux Interchange Project. In all, Wilson fraudulently increased the amounts on the Benchmark invoices by $807,637.10. Wilson’s fraudulent actions, in effect, amounted to Wilson wrongfully writing K&L a no-interest loan, in attempt to remedy K&L’s cash-flow problems. Depending on the methodology employed in the accounting analysis, (FIFO or LIFO) the interest cost Wilson saved K&L, through her fraudulent actions, was $34,432.02 or $34,501.61, respectively.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Wilson remains free on bond previously set pending sentencing. Wilson faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, a $100 special assessment, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jamie Bowers and was investigated by the U.S. Department of Transportation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4045. Follow us on Twitter @USAO_NDIA.
San Joaquin County Man Convicted of 5 Felony Counts in International Drug-Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — A jury found Francisco Felix, 44, of Mountain House, guilty today of five felony counts for his role in leading a large, multi-defendant drug-trafficking conspiracy that moved significant quantities of methamphetamine from Mexico into California and throughout the United States, and that controlled at least three marijuana grows in the Central Valley of California, U.S. Attorney Phillip A. Talbert announced.
On February 13, 2014, Felix and 13 other defendants were charged with a number of drug-trafficking crimes. Today the jury found Felix guilty on all five counts submitted to the jury: one count of conspiracy to distribute methamphetamine; one count of conspiracy to manufacture, distribute, and to possess with intent to distribute marijuana; and three counts of using a telephone to facilitate a drug-trafficking crime. Felix is the only defendant to go to trial; 10 co-defendants pleaded guilty and three are fugitives.
This case arose from a year-long investigation that revealed a drug-trafficking organization with connections to the state of Sinaloa in Mexico. The organization was based in the Central Valley of California, and actively imported large amounts of methamphetamine into the United States. Evidence at trial established that Felix and his network were capable of importing 50 pounds of methamphetamine (with a wholesale value of approximately $200,000) into the United States every eight days.
In addition, the evidence at trial also established that the organization was cultivating substantial quantities of marijuana at many properties in both Stanislaus and San Joaquin counties.
Over nine months, investigators acquired over 80 pounds of methamphetamine, approximately 20 pounds of marijuana, and six firearms, including three assault rifles and a “Desert Eagle” .50-caliber handgun, from members of the organization. Finally, on the day of Felix’s arrest, investigators seized over 2,100 growing marijuana plants at properties under Felix’s control.
This case is the product of an investigation by the California Department of Justice’s Mountain and Valley Marijuana Investigation Team (MAVMIT), under the auspices of the Central Valley High Intensity Drug Trafficking Area (HIDTA) Program; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Placer County District Attorney’s Office; the Placer County Special Investigations Unit (SIU); the Sheriff’s Departments from Placer, El Dorado and Sacramento Counties; the California Department of Fish and Wildlife; the California Department of Corrections and Rehabilitation; the California National Guard, Counterdrug Task Force; and the Yolo Narcotic Enforcement Team (YONET). In addition, at the conclusion of the investigation, hundreds of law enforcement officers from several states took part in a 28-location takedown.
Assistant U.S. Attorneys Justin Lee, Ross Naughton, and Michael Beckwith are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Felix is scheduled to be sentenced by U.S. District Judge William B. Shubb on December 4, 2017. Felix faces a maximum statutory penalty of life in prison, with a mandatory minimum sentence of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Registered Sex Offender Sentenced to 15 Years in Prison on Child Pornography ChargesRead the Press Release
PROVIDENCE – Ryan J. Lebrun, 24, of Pawtucket, was sentenced today to 180 months (15 years) in federal prison for possessing and distributing child pornography. According to court records, Lebrun, a registered sex offender, was previously convicted in Rhode Island state court in two unrelated child pornography cases.
At sentencing, U.S. District Judge John J. McConnell, Jr., also ordered Lebrun to serve 10 years supervised upon completion of his prison term. Lebrun pleaded guilty on February 14, 2017, to two counts of distribution of child pornography and one count of possession of child pornography.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 180-188 months. The government recommended the court impose a sentence of 180 months in prison.
Lebrun’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to court records and information presented to the court, in June 2015, while conducting an investigation into the sharing of child pornography, German law enforcement accepted an online solicitation on a Peer to Peer (P2P) file sharing program from an individual later identified as Ryan Lebrun. German authorities were able to access Lebrun’s files and library from which they downloaded several files of child pornography.
In September 2015, HSI in Rhode Island was notified by HSI Cyber Crimes Center via Interpol, Wiesbaden, Germany, of Lebrun’s online activities. HSI agents in Rhode Island viewed Lebrun’s files and library, and identified approximately 21 images and 3 videos of child pornography.
In October 2015, it was learned that the FBI was also investigating Lebrun’s activities on the P2P file sharing program. The FBI also downloaded images of child pornography from Lebrun’s files and engaged in online chats with Lebrun.
Additionally, in October 2015, the Rhode Island State Police Internet Crimes Against Children (ICAC) task force received information from the National Center for Missing and Exploited Children regarding a Google email account that contained child pornography. The email account, which also contained an image of Lebrun, was determined by Rhode Island State Police to belong to Lebrun.
On November 9, 2015, HSI, FBI and a Rhode Island State Trooper assigned to the ICAC executed a court authorized search warrant at Lebrun’s Pawtucket residence. The search resulted in the seizure of, among other things, numerous electronic devices and digital storage cards. A forensic examination of the devices and storage cards identified more than 200 videos and 90 images of child pornography.
According to court records, Lebrun, a registered sex offender, was twice convicted in Rhode Island state court on child pornography charges. On April 16, 2011, Lebrun was arrested by the Warwick Police Department and charged with possession of child pornography. He pleaded guilty and on November 10, 2011, he was sentenced to 3 years of probation. On April 17, 2013, Lebrun was arrested by Rhode Island State Police and charged with possession and transfer of child pornography. He pleaded guilty and on November 20, 2013, was sentenced to 5 years of incarceration with 2 years to serve.
Lebrun has been detained in federal custody since his arrest on November 10, 2015.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the Warwick Police Department for their assistance in the investigation of this matter.
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Providence Resident Sentenced to 12 Years in Prison for Sex Trafficking 14-Year-Old Group Home ResidentRead the Press Release
PROVIDENCE, R.I. – Paul Monteiro, a/k/a Peezy, 32, of Providence, was sentenced today to 144 months (12 years) in federal prison for transporting a 14-year-old Rhode Island girl to New Jersey for the purpose of engaging in commercial sexual activity.
Monteiro and the minor female were located in a hotel room in Franklin Township, New Jersey, on April 6, 2015, by agents and officers from Homeland Security Investigations (HSI), the FBI and Franklin Township police, five months after she was reported missing from a group home in Rhode Island.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Monteiro to serve 5 years supervised release upon completion of his term of incarceration. The court deferred ruling on restitution to the victim to a later date. Monteiro pleaded guilty on October 6, 2016, to sex trafficking of a child.
The mandatory minimum sentence in this matter is 120 months imprisonment. The U.S. Sentencing Guidelines range of imprisonment in this matter is 151-188 months. The government recommended the court impose a sentence of 188 months in prison.
Monteiro’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
In March 23, 2015, Rhode Island State Police detectives received information from the National Center for Missing and Exploited Children of a report of a juvenile female from Rhode Island who had allegedly been sexually molested by an adult male she met on Facebook. The investigation determined that the victim was a 14-year-old girl reported missing on November 20, 2014, from a group home in Rhode Island.
According to court documents, on April 6, 2015, Rhode Island State Police tracked a cell phone in the possession of the missing teenager to Franklin Township, New Jersey. Agents from HSI and the FBI, and police officers from Franklin Township located the missing girl and Paul Monteiro in a hotel room in Franklin Township. Monteiro was arrested by Franklin Township police on New Jersey state charges and detained.
As a result of information provided to investigators by the victim, an HSI agent located a Backpage.com advertisement depicting the young girl and a solicitation for male companionship. The girl later confirmed for investigators that she was the person in the picture and that Monteiro arranged for her to participate in sex acts with at least two individuals who responded to the advertisement.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The United States Attorney’s Office acknowledges and thanks the Somerset County, New Jersey, Prosecutor’s Office for their assistance in ensuring the quick return of Paul Monteiro to Rhode Island for prosecution in U.S. District Court in Providence.
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Pennsylvania Banker Pleads Guilty to Conspiracy to Commit Bank Fraud, Admits Business Relationship with Physician ClientRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, and Stephen M. Schenning, Acting United States Attorney for the District of Maryland, announced today that Tae H. Kim, age 47 of Wayne, Pennsylvania, entered a guilty plea to separate bank fraud charges filed in the District of Delaware and the District of Maryland, respectively.
In resolving the Delaware charge, Kim admitted that he conspired with his client, Dr. Zahid Aslam,[1] to obtain loans from Citibank and WSFS Bank under false pretenses. In particular, Kim admitted that he and Dr. Aslam agreed to submit loan requests in the names of third parties when they knew that the loan proceeds would be controlled by Dr. Aslam. The loans at issue consisted of a $1.76 million loan funded by Citibank (and guaranteed by the Small Business Administration) in July 2012, and a $2.183 million loan funded by WSFS Bank in August 2013. In addition, Kim failed to disclose to Citibank and WSFS Bank the existence of an extensive business relationship between himself and Dr. Aslam, as well as his receipt of a $60,000 loan and a BMW from Dr. Aslam, during the period in which he acted as Dr. Aslam’s loan officer. As part of his guilty plea, Kim agreed to forfeit the BMW and $60,000 in cash.
In resolving the Maryland charge, Kim admitted that he submitted a false “Request for Verification of Deposit” form on behalf of Dr. Aslam, who had requested a $5 million loan from Cecil Bank in Maryland for a separate business venture. Although the Verification of Deposit Form represented that Dr. Aslam had maintained a checking account for the business, with an average balance of $1.6 million, Kim admitted that the account had been opened the day before he submitted the form and funded via a single check from a different entity controlled by Dr. Aslam. The Verification of Deposit Form was important because Cecil Bank had determined that the business needed to show proof of equity or cash on hand of at least $1.38 million to qualify for a Small Business Administration Guarantee. Although Cecil Bank approved the $5 million loan, the loan was never funded because the Small Business Administration determined that the loan did not qualify for the guarantee.
United States Judge Richard G. Andrews Scheduled sentencing for January 11, 2018 at 9:00 a.m.
The maximum penalty for the Delaware Charge (Conspiracy to Commit Bank Fraud) is a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100 special assessment; and mandatory restitution. The maximum penalty for the Maryland Charge (Attempted Bank Fraud) is a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100 special assessment; and mandatory restitution.
Acting U.S. Attorney Weiss said, “Tae Kim abused his position as a loan officer by defrauding three financial institutions and the Small Business Administration for the benefit of a key client. He further leveraged his position to profit personally from an extensive business relationship with that client, all of which he concealed from his employers. I applaud the diligence of federal law enforcement in Delaware and Maryland in uncovering the breadth and scope of Kim’s criminal conduct. Our office remains committed to ensuring the integrity of the federal banking system.”
The case was investigated by the Federal Bureau of Investigation; the Internal Revenue, Service, Criminal Investigation Division; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; and the Special Inspector General of the Troubled Asset Relief Program (SIGTARP).
The case is being prosecuted by Assistant United States Attorneys Robert F. Kravetz and Jennifer L. Hall in Delaware and Assistant United States Attorney Martin J. Clarke in Maryland.
Palm Harbor Oncologist Sentenced to Nearly Six Years for Treating Patients with Unapproved Cancer DrugsRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced D. Anda Norbergs to 5 years and 10 months in federal prison for receipt and delivery of misbranded drugs, smuggling goods into the United States, health care fraud, and mail fraud. As part of her sentence, the Court also entered a money judgment in the amount of $848,671.19, the proceeds of the criminal conduct. A federal jury found Norbergs guilty on November 18, 2016.
According to testimony and evidence presented during the nine-day trial, Norbergs, a licensed physician in Florida, was the head doctor, owner, and operator of East Lake Oncology (“ELO”), a cancer treatment clinic located in Palm Harbor. Beginning in at least May 2009, she ordered, and directed others at ELO to order, drugs from foreign, unlicensed distributors, including Quality Specialty Products (“QSP”). The drugs sold to ELO by QSP and other foreign, unlicensed distributors were not FDA-approved. In fact, QSP had reportedly sold counterfeit versions of a chemotherapy medication that did not have the key ingredient in the drug. Norbergs learned of this news from other sources yet continued to have QSP drugs administered to patients. When QSP shut down, Norbergs switched to buying drugs from another foreign, unlicensed distributor. Many of the drugs were shipped directly to ELO from a location outside the United States, usually from the United Kingdom. The packaging and documents shipped with the drugs showed that they were manufactured and packaged for distribution in foreign countries, such as Turkey, India, and Germany.
Unbeknownst to patients, these misbranded drugs were then administered at ELO. After administering these drugs to patients, ELO submitted claims for reimbursement to Medicare. In submitting those claims, Norbergs falsely represented that the FDA-approved versions of the drugs had been administered, when she knew that unapproved and misbranded versions had been given to patients. In so doing, Norbergs intended to generate profits from the difference between the Medicare reimbursement rates for the FDA-approved drugs and the discounted prices of the misbranded versions of those drugs purchased from foreign distributors.
This case was investigated by U.S. Department of Health and Human Services – Office of Inspector General and the U.S. Food and Drug Administration. It was prosecuted by Assistant United States Attorneys Adam M. Saltzman and Jay Trezevant.
Ohio drug dealing couple sentenced to federal prison for methamphetamine crimesRead the Press Release
HUNTINGTON, W.Va. – A Proctorville, Ohio, couple was sentenced to federal prison today on drug charges, announced United States Attorney Carol Casto. Charley G. Myers, 37, and Tracie M. Reed, 39, both previously pleaded guilty to distribution of methamphetamine. Myers was sentenced to 10 years and a month in federal prison. Reed was sentenced to nine years in federal prison.
Between February and September of 2016, Myers and Reed travelled on several occasions to Texas and returned to the Tri-State area with at least a kilogram of methamphetamine on each trip. The pair would then sell the methamphetamine to customers in Putnam and Kanawha counties in West Virginia, as well as to customers in the Proctorville area. Laboratory results indicated that the methamphetamine seized from the couple was close to 100% pure. As part of their plea agreements, both Myers and Reed admitted responsibility for the other drug trafficking conduct charged in the indictment.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team and Homeland Security Investigations. Assistant United States Attorney R. Gregory McVey is responsible for these prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Ohio Man Sentenced to 51 Months in Prison for Bethel Park Pharmacy BurglaryRead the Press Release
PITTSBURGH – A former resident of Columbus, Ohio has been sentenced in federal court to 51 months in prison, to be followed by three years of supervised release, on his convictions for burglary of a pharmacy and conspiracy to possess with intent to distribute a Schedule II controlled substance, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on William Dishman, 35.
According to information presented to the court, on September 4, 2015, Foughty used a crowbar to break into the Spartan Pharmacy in Bethel Park, Pa., and proceeded to steal over 6,000 Schedule II pills from the pharmacy.
Assistant United States Attorney Timothy M. Lanni prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration and the Bethel Park Police Department for the investigation leading to the successful prosecution of Dishman.
Miami Resident Sentenced to 4 Years in Prison for Identity Theft Tax Fraud SchemeRead the Press Release
A Miami resident was sentenced to 48 months in prison, to be followed by three years of supervised release for possessing personal identifying information (PII) of other individuals and using the PII to file false tax returns.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, made the announcement.
Gregory Clermont, 25, of Miami, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on May 7, 2013, Clermont was in possession of official tax documents and handwritten lists of names, dates of birth, and social security numbers belonging to other individuals, as well as other handwritten notes relating to the filing of tax returns. Clermont was also in possession of a composition book containing the names, dates of birth, and social security numbers of approximately 140 individuals, three H&R Block debit cards in other people’s names, and a laptop that contained approximately 185 user identification numbers associated with the filing and attempted filing of tax returns through TurboTax online. Clermont admitted that he tried to file tax returns with almost all of the names in the composition book, but was notified that half of the people were deceased when he filed the returns.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
Related court documents and information may be found on the website of the United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Merced Man Pleads Guilty to Distributing Marijuana and Cocaine Nationwide Through Dark Web MarketplacesRead the Press Release
FRESNO, Calif. — David Ryan Burchard, 40, of Merced, pleaded guilty today to conspiracy to distribute and to possess with intent to distribute marijuana on dark web marketplaces, U.S. Attorney Phillip A. Talbert announced.
According to the criminal complaint, Burchard, using the moniker “Caliconnect,” was a major narcotics vendor on the Silk Road and other dark web marketplaces, including Agora, Abraxas, and AlphaBay. Dark-web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. In addition, dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly in bitcoin. While not inherently illegal, digital currency is used by dark web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.
According to the complaint, Burchard accepted orders for marijuana and cocaine on dark web marketplaces and then mailed the narcotics from post offices in Merced and Fresno County to his customers throughout the United States. Burchard was paid primarily in bitcoin. Burchard conducted sales in excess of $1.4 million on Silk Road before that dark web marketplace was closed. The complaint alleges that after federal law enforcement shut down the Silk Road website and arrested its founder in October 2013, Burchard transferred his narcotics business to Agora and then to AlphaBay, which are other dark web marketplaces.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service-Criminal Investigation, the U.S. Postal Inspection Service, and the Fresno Police Department. Assistant U.S. Attorney Grant Rabenn is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Burchard is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on October 30, 2017. Burchard faces a maximum statutory penalty 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Massachusetts Resident Detained on Meth Trafficking ChargeRead the Press Release
PROVIDENCE – Gregory Lee, 48, of Provincetown, MA, was ordered detained in federal custody following an initial appearance today in U.S. District Court in Providence on a criminal complaint charging him with possession with intent to distribute methamphetamine.
Lee was arrested by Warwick Police on Saturday after they allegedly seized more than 230 grams of methamphetamine from his vehicle.
According to an affidavit in support of a criminal complaint, it is alleged that Warwick Police received a call Saturday morning reporting that an individual was passed out in a vehicle parked in a retail store parking lot. After several attempts, an officer was able to roust Lee, who appeared nervous and then began to look around his vehicle, under his body and legs, and grab various items within the vehicle. An officer ordered Lee to exit the vehicle.
According to the affidavit, after Lee exited the vehicle, at least twice he allegedly attempted to the shield the interior of the vehicle from police. After allegedly denying he was in possession of any illegal narcotics, Lee agreed to allow the officers to search his vehicle. It is alleged in the affidavit that inside a backpack located on the front seat of the vehicle officers seized two large plastic bags, which tested positive for methamphetamine. The bags of methamphetamine weighed 115.9 and 115.6 grams respectively.
Lee’s arrest and detention are announced by Acting United States Attorney Stephen G. Dambruch and Warwick Police Chief Colonel Stephen M. McCartney.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Makah Tribal Member Sentenced to 30 Months in Prison for Sexual Abuse of a MinorRead the Press Release
A 25-year-old member of the Makah Indian Tribe was sentenced today in U.S. District Court in Tacoma to 30 months in prison and ten years of supervised release for sexual abuse of a minor, announced U.S. Attorney Annette L. Hayes. MITCHEL CANAS pleaded guilty in May 2017, admitting he sexually molested a 13-year-old child. At the sentencing hearing, U.S. District Judge Benjamin H. Settle ordered CANAS to register as a sex offender.
According to records in the case, CANAS was indicted by the grand jury in November 2016. The indictment charged that, between November 2015 and October 2016, CANAS sexually abused a person that was 13 years old. At the time of the offense CANAS was 23 years old. The federal court has jurisdiction in this case because the abuse occurred on Makah Tribal trust land.
The case was investigated by the Makah Tribal Police Department and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office.
Media AdvisoryRead the Press Release
PRESS CONFERENCE
INDIANAPOLIS-United States Attorney Josh Minkler will hold a press conference tomorrow, August 7, 2017, at 10am in the Plainfield Town Courtroom, 1075 W. Main Street, Plainfield, Indiana.
Minkler will be discussing charges in the 2015, Plainfield-area cyber threats case which resulted in school and shopping center closures. Minkler will be joined by Special Agent in Charge W. Jay Abbott, from the Indianapolis FBI Office, Superintendent Doug Carter, Indiana State Police and officials from the Plainfield and Brownsburg Police Departments.
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Long Island Investment Adviser Pleads Guilty to Stealing $3 Million from Investors in Wire Fraud SchemeRead the Press Release
Eric Erb, a former investment adviser, pleaded guilty earlier today to wire fraud in connection with a scheme to defraud investors utilizing his Babylon, New York-based investment advising business. Erb entered his guilty plea before United States Magistrate Judge Anne Y. Shields at the federal courthouse in Central Islip, New York. When sentenced, Erb faces up to 20 years in prison. In connection with his guilty plea, Erb has agreed to pay approximately $5.3 million in restitution to victims of his crime. Erb has also agreed to forfeit $215,000 in proceeds that he earned from the sale of his former residence in Bay Shore, New York, as well as the net proceeds from the sale of his 2004 Porsche 911 (with vanity license plate “HEDGER”) and the net proceeds from the sale of his 25-foot Regulator boat.
The guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“With his investors relying on him to act with professionalism and integrity, Erb instead took millions of dollars from them,” stated Acting United States Attorney Rohde. “We will continue to work closely with our law enforcement partners to vigorously prosecute unscrupulous investment professionals and divest them of their ill-gotten gains.”
“Erb deliberately deceived investors by causing them to believe they were making money, when in reality, he was making millions off their losses,” stated FBI Assistant Director-in-Charge Sweeney. “Aiming to eliminate the prevalence of fraud, we will continue to diligently investigate unlawful schemes of this manner.”
According to court filings and facts presented at the plea hearing, between approximately January 2016 and February 2017, Erb solicited approximately $5.4 million from investors under the promise that he would follow investors’ instructions when making various investments, including in Individual Retirement Accounts, annuities, real estate investment trusts, hedge funds and an initial public offering, but instead he chose the investment vehicles. Erb also emailed investors false earnings statements showing that their investments were earning profits when, in fact, they were generating losses; made wire transfers between banks in Long Island and Florida to fund investments that investors did not authorize him to make; and falsified payee information on checks that investors wrote to fund investments so that Erb could use investors’ monies to benefit himself and his companies. During his plea allocution, Erb admitted to stealing approximately $3 million from 38 investors.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Madeline M. O’Connor are in charge of the prosecution.
The Defendant:
ERIC ERB
Age: 39
Residence: Levittown, New York
E.D.N.Y. Docket No. 17-CR-413 (ADS)
Las Cruces Man Pleads Guilty to Federal Marriage Fraud ChargesRead the Press Release
ALBUQUERQUE – Santiago Aveles, 31, of Las Cruces, N.M., pled guilty on Aug. 4, 2017, in federal court to charges arising out of a scheme to obtain immigration status for foreign nationals through fraudulent marriages.
On April 19, 2017, Aveles and five co-defendants – Yi Lee, 44, a naturalized U.S. citizen residing in Santa Fe, N.M., and Chia-Jung Chang, 39, Dan Zheng, 32, Lian Xiang Deng, 42, and Xiao-Yin Le, 50, all Chinese nationals illegally in the United States – were indicted and charged with participating in a conspiracy to commit marriage fraud. The indictment also charged Aveles and Zheng with committing marriage fraud for the purpose of evading the federal immigration laws.
The indictment alleged that from June 2016 through March 2017, the six defendants conspired to obtain immigration status for foreign nationals by committing marriage fraud. The scheme involved having U.S. citizens enter into fraudulent marriages with foreign nationals in return for financial gain. Lee allegedly facilitated the conspiracy by arranging meetings between foreign nationals and U.S. citizens and assisting them in obtaining marriage licenses, working permits and green cards for the foreign nationals who paid Lee and the U.S. citizens. According to the indictment, Lee allegedly attempted to arrange fraudulent marriages between certain of his co-defendants and undercover law enforcement agents.
On Aug. 4, 2017, Aveles pled guilty to a felony information charging him with conspiracy and marriage fraud. In entering the guilty plea, Aveles admitted that from Jan. 2016 through April 30, 2017, he and others conspired to commit marriage fraud. Aveles also admitted that he entered into a sham marriage for the purpose of evading immigration laws and in exchange for a monetary payment.
At sentencing, Aveles faces a maximum penalty of five years in federal prison and a fine of up to $250,000. A sentencing hearing has yet to be scheduled.
Aveles’ co-defendants have entered pleas of not guilty to the charges in the indictment. Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of HSI and is being prosecuted by Assistant U.S. Attorneys Dustin C. Segovia and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office.
Laredo Man Pleads Guilty to Conspiracy to Harbor AliensRead the Press Release
LAREDO, Texas – A 43-year-old resident of Laredo has pleaded guilty to a conspiracy charge for his role in an alien smuggling incident which led to the kidnapping of multiple illegal aliens, announced Acting U.S. Attorney Abe Martinez.
Jesus Osorio admitted during his re-arraignment hearing today that he conspired to harbor and transport undocumented aliens in violation of law.
On July 5, 2016, law enforcement responded to an incident at a residence in Laredo where eight undocumented aliens were kidnapped and held hostage against their will. They had previously made arrangements to be smuggled into the United States. After their arrival, they stayed at a Laredo residence for two weeks.
They were then transported to a second location where Angel Alexis Diaz, 20, Jose Israel Diaz, 43, and Julio Osorio, 40, all of Laredo, held them hostage. The victims reported being beaten, forced to undress and ordered to contact family members to pay a ransom for their release.
Through further investigation, authorities learned Jesus Osorio was the man who drove the aliens from the stash house to the second residence where they were eventually kidnapped. During the course of the offense, one of the undocumented aliens was seriously injured and required hospitalization.
U.S. Magistrate Judge Diana Song Quiroga accepted the plea. Sentencing has been set for Jan. 2, 2018, before U.S. District Judge Marina Garcia Marmolejo. At that time, the Osorio faces up to 20 years in federal prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
Angel Diaz, Jose Diaz and Julio Osorio were convicted of conspiracy to kidnap illegal aliens and received sentences of 262-360 months in prison.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department and U.S. Border Patrol. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Justice Department Announces Plans to Advance Forensic ScienceRead the Press Release
Deputy Attorney General Rod J. Rosenstein announced two new Department of Justice projects today at the International Association for Identification’s conference in Atlanta, Georgia. This reinforces the Justice Department’s commitment to sound forensic science practices and to increasing the capacity and effectiveness of forensic science providers by helping to improve the reliability of forensic analysis.
“The Department of Justice believes that when the adversarial American legal system functions as intended – including through the support of trained forensic examiners and legal practitioners educated on best forensics practices – justice is advanced,” said Deputy Attorney General Rosenstein. “The Department is fully committed to examining and strengthening forensic science despite efforts in the courtroom and elsewhere to reject reliable and admissible forensic evidence.”
The projects announced today are aimed at ensuring that the testimony of the Justice Department’s forensic examiners is consistent with sound scientific principles and just outcomes. The Department will develop Uniform Language for Testimony and Reports to give clear guidance to what the Department’s forensics examiners may discuss in a courtroom, and direct prosecutors to follow the same guidelines. The Department will also develop a new forensic examiner testimony-monitoring program to ensure compliance with the uniform language standards once they are adopted.
Deputy Attorney General Rosenstein also announced that Attorney General Jeff Sessions has tapped Ted Hunt, a former state prosecutor and member of the National Commission on Forensic Science (which sunset in April), to serve as the Department’s Senior Advisor on Forensics. In addition to Mr. Hunt’s decades of first-hand experience investigating and prosecuting cases with forensic evidence, he has long been involved with state, local, and federal efforts to improve forensic science through committees, commissions, and training programs.
“It speaks strongly of the Attorney General’s commitment to the interdisciplinary nature of forensic science that he has appointed Mr. Hunt to serve in this position,” said Deputy Attorney General Rosenstein. “I am directing him to coordinate closely with our federal, state, local, and tribal forensic science practitioners and to identify ways to best continue ongoing outreach to these stakeholders.”
International Surrogacy Clients Defrauded in Racketeering SchemeRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – August 7, 2017
SAN DIEGO – Acharyya Rupak, also known as Rudy Rupak, was sentenced today before U.S. District Court Judge Cynthia A. Bashant, and ordered to serve 24 months in custody for crimes relating to his international surrogacy company, Planet Hospital. Judge Bashant also ordered Rupak to pay a $10,000 fine, and scheduled a restitution hearing on September 13, 2017, to determine how much Rupak must pay back to his victims.
Rupak was the founder and operator of Planet Hospital (“PH”), beginning in approximately 2003. PH has had business addresses in San Diego, Calexico, and Calabasas, California. PH facilitated medical tourism services, which are the visit of foreign patients to hospitals across international borders in order to receive medical treatment, including organ transplants and cosmetic surgery. In approximately 2006, PH began offering international surrogacy services, which is a surrogacy agreement involving an overseas country, and generally involves the carrying of a pregnancy by a surrogate for intended parents.
Beginning in approximately September 2012, and continuing through at least January 2014, Rupak made interstate wire transfers, with the intent to facilitate commercial bribery, in violation of California law. In furtherance of the commercial bribery, Rupak solicited, and instructed PH employees to solicit, medical tourism and international surrogacy clients by falsely representing that their funds would be “set aside,” or put in escrow accounts, and used only to pay for medical services provided to the respective client. In some instances, however, Rupak caused funds obtained from new PH clients to be used to pay for services provided to existing PH clients.
In particular, in December 2013, Rupak directed a PH employee to solicit funds from PH clients by fraudulently representing that the clients’ funds would be maintained in an escrow account. The clients were also told their funds would be sent to My Donor Cycle, a San Diego-based business for surrogacy egg donation services. Rupak instructed the PH employee to make the representation to the clients, however, without the knowledge or consent of My Donor Cycle. On December 5, 2013, the PH clients wire-transferred $24,000 to a bank account controlled by Rupak. Rupak, however, did not place the funds into escrow. Instead, Rupak comingled some of their funds with funds received from another PH client. He then wire-transferred the combined funds to My Donor Cycle to pay for services already provided to prior PH clients.
Rupak also initially undercharged PH clients for the cost of medical tourism and international surrogacy services in order to induce them to begin services through PH without knowing that additional payments would be required. Rupak, however, often failed to forward PH clients’ funds to service providers. The service providers included the Fertility Clinic Cancun (“FCC”) and the IREGA Clinic (“IREGA”), which were clinics that provided surrogacy services in Cancun, Mexico. Rupak’s failure to forward client funds to FCC and IREGA caused the service providers to demand additional funds from the PH clients in order to initiate or continue international surrogacy services.
Rupak made several excuses to PH clients for its failure to provide successful surrogacy services. He created a fraudulent website and email address through which he sent unauthorized emails in the name of a clinic and its physician to PH clients in order give false excuses why PH had not provided promised services. Rupak also instructed PH employees to make misrepresentations to PH clients regarding prior medical tourism and international surrogacy successes, and that unsuccessful surrogacy procedures were the fault of foreign service-providers, restriction from foreign laws, or failed bank transactions.
Apart from his work on behalf of PH, in order to obtain employment unrelated to medical tourism or international surrogacy, Rupak identified himself with an alias to potential employers in order to conceal his true identity and pending fraud allegations.
Rupak acknowledged that he caused total losses of at least $247,620, although the total losses will be determined at the restitution hearing.
In imposing custody, Judge Bashant noted that Rupak lied to vulnerable victims who were sick, and who were desperate for children.
Acting U.S. Attorney Robinson said, “The defendant betrayed the trust placed in him by people desperate to have a child. By preying on their vulnerable emotions, he was able to extract more money on the false promise that he was doing everything possible to help them obtain a baby. To use the dream of parenthood as leverage for obtaining fraudulent proceeds is intolerable and heartbreaking.”
“Today's sentencing is justice overdue for the many victims affected by this defendant’s deceitful practices,” stated FBI Special Agent in Charge Eric S. Birnbaum. “Acharyya Rupak can no longer prey upon those desperate to have a family.”
DEFENDANT
Acharyya “Rudy” Rupak Age: 49
SUMMARY OF CHARGE Case Number: 16CR1896
Title 18, United States Code, Section 1952(a)(3)(interstate or foreign travel in aid of racketeering enterprise)
Maximum penalty: 5 years of custody; $250,000 Fine
AGENCY
Federal Bureau of Investigation
Indictment Unsealed Charging Three Local Men with Drug Trafficking and Firearms Offenses in a School ZoneRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BRANDON BUTLER, a/k/a “Pooh,” a/k/a “Pooh Milly;” JAMIRON BARNES, a/k/a “Miron,” a/k/a “Myron;” and SEAN BRIGGS, a/k/a “Big Sean,” a/k/a “Big C;” all from New Orleans, were charged in 12-count second superseding Indictment by a Federal Grand Jury last week. The second superseding Indictment was unsealed recently, as the newly indicted defendant, SEAN BRIGGS, was taken into custody by federal agents. The other defendants are already in federal custody.
According to the second superseding Indictment, BUTLER, BARNES, and BRIGGS are charged with conspiracy to distribute and to possess with the intent to distribute cocaine, crack, and heroin and to possess firearms in furtherance of the drug trafficking crime. The defendants came to the attention of the FBI’s New Orleans Gang Task Force violent crime initiative in NOPD’s Sixth Police District. Specifically, the defendants primarily operate in the 2400 block of Josephine Street which is within one block of the Mahalia Jackson Elementary School.
A list of the defendants, charges, and maximum penalties is attached.
Acting U.S. Attorney Evans reiterated that a second superseding Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The second superseding Indictment is a product of an ongoing investigation into the drug trafficking and violent crime in New Orleans. It represents the continued coordinated anti-crime efforts of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigation’s New Orleans Gang Task Force, the New Orleans Police Department, the Bureau of Alcohol, Tobacco, and Firearms, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Elizabeth Privitera is in charge of the prosecution.
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COUNT
DEFENDANT(S)
MAXIMUM PENALTY
Count 1
21 U.S.C. § 846
Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base and Heroin
Brandon Butler
Jamiron Barnes
Sean Briggs
-0 to 20 years imprisonment
-not less than 3 years supervised release
-fine of up to $1,000,000
-$100 special assessment fee
Count 2
18 U.S.C. § 924(o)
Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime
Brandon Butler
Jamiron Barnes
Sean Briggs
-0 to 20 years imprisonment
-3 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 3
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Possession with Intent to Distribute Cocaine Hydrochloride and Cocaine Base
Jamiron Barnes
Sean Briggs
-0 to 20 years imprisonment
-not less than 3 years supervised release
-fine of up to $1,000,000
-$100 special assessment fee
Count 4
18 U.S.C. § 924(c)(1)(A)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Jamiron Barnes
Sean Briggs
-5 years to life imprisonment (consecutive)
-not more than 5 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 5
18 U.S.C. § 922(g)(1)
Felon in Possession of a Firearm
Sean Briggs
-0 to 10 years imprisonment
-3 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 6
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Possession with Intent to Distribute Cocaine Hydrochloride and Cocaine Base
Brandon Butler
-0 to 20 years imprisonment
-not less than 3 years supervised release
-fine of up to $1,000,000
-$100 special assessment fee
Count 7
18 U.S.C. § 924(c)(1)(A)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Brandon Butler
-5 years to life imprisonment
-not more than 5 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 8
18 U.S.C. § 922(q)(2)(A)
Possession of a Firearm in a School Zone
Brandon Butler
-0 to 5 years imprisonment
-not more than 1 year supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 9
21 U.S.C. § 841(a)(1) and (b)(1)(C)
Possession with Intent to Distribute Heroin
Sean Briggs
-0 to 20 years imprisonment
-not less than 3 years supervised release
-fine of up to $1,000,000
-$100 special assessment fee
Count 10
18 U.S.C. § 924(c)(1)(A)
Use, Carrying and Discharge of a Firearm in Furtherance of a Drug Trafficking Crime
Brandon Butler
-25 years to life imprisonment (consecutive)
-not more than 5 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 11
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Possession with Intent to Distribute Cocaine Base
Brandon Butler
-0 to 20 years imprisonment
-not less than 3 years supervised release
-fine of up to $1,000,000
-$100 special assessment fee
Count 12
18 U.S.C. § 924(c)(1)(A)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Brandon Butler
-25 years to life imprisonment (consecutive)
-not more than 5 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Honduran national pleads guilty to immigration crimeRead the Press Release
HUNTINGTON, W.Va. – A Honduran national pleaded guilty today to an immigration crime, announced United States Attorney Carol Casto. Delvin Rodriguez-Gonzalez, 37, entered his guilty plea to illegally reentering the United States.
Rodriguez-Gonzalez had been arrested for a driving while intoxicated charge in Cabell County, and was identified on May 7, 2017, by agents with the Department of Homeland Security. Rodriguez-Gonzalez admitted that he had been convicted of second degree burglary in El Paso County District Court in Colorado Springs on January 22, 2009, and was removed from the United States on March 19, 2009. On January 18, 2013, Mr. Rodriguez-Gonzalez was found in Florence, Colorado, and was again removed from the United States. Rodriguez-Gonzalez was subsequently found in the Western Regional Jail in Barboursville. Rodriguez-Gonzalez further admitted to having illegally reentered the United States for a third time.
Rodriguez-Gonzalez faces up to 10 years in federal prison when he is sentenced on November 13, 2017. He is also subject to removal proceedings at the conclusion of any term of incarceration.
The investigation was conducted by the Department of Homeland Security. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
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Heroin Traffickers Sentenced to Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Darrell Bryant (48, Jacksonville) and Roshawn Anderson (34, Atlanta) each to six years in federal prison for conspiracy to distribute heroin.
Bryant pleaded guilty on December 13, 2016. Anderson pleaded guilty on January 24, 2017.
According to court documents, in August 2016, Bryant and Anderson arranged to sell almost a kilogram of heroin to an individual in Jacksonville. Bryant brokered the deal locally and Anderson brought the heroin from Georgia. On August 31, 2016, while driving to deliver the heroin, Bryant and Anderson were stopped on Norwood Avenue, near I-95, by troopers from the Florida Highway Patrol who were working with the Drug Enforcement Administration. Anderson attempted to flee on foot but troopers caught up with him. He had approximately one kilogram of heroin hidden on his person.
This case was investigated by the Drug Enforcement Administration, with assistance from the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Frank Talbot.
Former Winnebago Tribal Council Member Sentenced for Theft from an Indian Gaming EstablishmentRead the Press Release
Acting United States Attorney Robert C. Stuart announced today that Chief United States District Court Judge Laurie Smith Camp sentenced Lawrence Payer, age 71, of Winnebago, Nebraska for his conviction for theft from an Indian gaming establishment. Payer was sentenced to five years of probation and 150 hours of community service. He was further ordered to pay restitution in the amount of $36,000.
Payer was a member of the tribal council of the Winnebago Tribe of Nebraska. Beginning in 2013 and continuing through September of 2014, began taking unauthorized disbursements from the WinnaVegas Casino and Resort in the total amount of $36,000. These disbursements were in the form of gift certificates which he did not pay for and deposits to a re-loadable debit card. The disbursements were in addition to the salary received from the Winnebago Tribe as a tribal council member. However, the disbursements were not paid through the payroll department of the Winnebago Tribe and were never authorized at a regular or special meeting of the tribal council. Further, the disbursements were concealed from the Winnebago Gaming Commission which oversaw the operations of the casino and was required to approve financial transactions of the casino.
This case was investigated by the Federal Bureau of Investigation.
Former Kern County Sheriff’s Deputies Sentenced for Marijuana TraffickingRead the Press Release
FRESNO, Calif. — Two former deputies with the Kern County Sheriff’s Office were sentenced today for conspiracy to distribute and possess with the intent to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.
U.S. District Judge Lawrence J. O’Neill sentenced Logan August, 30, of Bakersfield, to three years’ probation, $16,200 forfeiture, 1,500 hours of community service. Derrick Penney, 34, of Star, Idaho, received a sentence of three years’ probation, $1,200 forfeiture, 250 hours of community service.
U.S. Attorney Talbert stated: “The defendants in this case caused a significant breach of the public’s trust when they committed these crimes. Not only did they betray the community they were sworn to serve, but also their fellow, hard-working officers who protect the Kern County community every day. My office is thankful for the hard work and cooperation of our law enforcement partners in bringing this conduct to light. We are committed to investigating and prosecuting anyone who abuses their law enforcement position for their own selfish gain."
“An officer’s badge is the ultimate symbol of integrity, pride, trust, and authority to protect and serve the public. Every day across America thousands of brave men and women in law enforcement uphold the meaning of that symbol by working tirelessly and placing themselves in harm’s way to serve their communities. The criminal behavior demonstrated by Logan August and Derrick Penney endangered the public and their colleagues. Both August and Penney will now face the legal consequences for their actions,” stated DEA Special Agent in Charge John J. Martin. “DEA will work with our law enforcement counterparts to hold accountable those who tarnish the badge and betray public trust.”
According to court documents, between June 2014 and October 2014, while working with the Kern County Sheriff’s Office (KCSO) as sworn peace officers, August and Penney abused their positions of trust and authority by conspiring with former Bakersfield Police Department detective Patrick Mara and an individual who previously worked as a confidential informant for August, and others, to steal marijuana from a KCSO storage unit and sell it for unlawful personal gain. The marijuana had previously been seized during investigations into marijuana grown on public and private lands. Once August and Penney obtained the marijuana from the storage unit, they had it processed (trimmed) into approximately eight pounds of usable marijuana. August then delivered it to his former confidential informant, who sold it and provided August with part of the proceeds from those sales. August then shared the proceeds with Penney and Mara. August and Penney received approximately $1,200 each from the sale of this marijuana.
Additionally, according to August’s plea agreement and other court documents, between March 2014 and December 2014, while a sworn peace officer assigned to the KCSO Major Vendor Narcotics Unit, August routinely participated in law enforcement marijuana eradication operations on public and private lands. During this time, August abused his position of trust and authority as a KCSO deputy by conspiring with a former confidential informant to take marijuana plants and processed marijuana from these law enforcement marijuana eradication operations and sell that marijuana for unlawful personal gain. On 10 separate occasions between March 2014 and December 2014, August wrongfully took marijuana from a law enforcement eradication operation for personal gain. August distributed to his former confidential informant the equivalent of 25 pounds of usable marijuana wrongfully taken from these law enforcement eradication operations. August received $15,000 from the sale of this marijuana.
August and Penney have agreed to forfeit the proceeds of the marijuana trafficking.
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Bakersfield Police Department. The Kern County Sheriff’s Office fully cooperated in this investigation. Assistant U.S. Attorneys Angela Scott and Brian Delaney are prosecuting the case.
Florida Man Charged with Distributing Fentanyl, Carfentanil, Meth and EcstacyRead the Press Release
PITTSBURGH - A Florida resident has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to distribute 400 grams or more of fentanyl and a quantity of carfentanil, and distribution of quantities of methamphetamine, carfentanil, and ecstasy, Acting United States Attorney Soo C. Song announced today.
The four-count indictment, returned on August 1 and unsealed Friday, named Robert M. Gilner, a/k/a Gman19635, 30, of St. Petersburg, FL, as the sole defendant.
According to the indictment, Gilner conspired with others, in the Western District of Pennsylvania and elsewhere, to distribute 400 grams or more of fentanyl and a quantity of carfentanil. Additionally, the indictment charges that, on March 10, 2017, he distributed a quantity of methamphetamine and, on March 22, 2017, he distributed a quantity of carfentanil and a quantity of ecstasy.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $13,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, United States Postal Inspection Service, and Immigration and Customs Enforcement/Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Individuals Charged in Manhattan Federal Court with Conspiring to Possess over 2,000 Kilograms of Cocaine in Violation of Federal Maritime Drug Enforcement LawsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Field Division (“DEA”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), George Beach, the Superintendent of the New York State Police (“NYSP”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and George Beach, Superintendent, New York State Police, announced charges against five defendants for allegedly possessing and conspiring to possess with the intent to distribute over 2,000 kilograms of cocaine, in violation of the maritime drug enforcement laws of the United States. IVAN CORTES MOLINERO, FRANCISCO JAVIER OCHOA JOAQUIN, MIGUEL CHAVEZ DELGADO, ENEDINO GATAN VARGAS, and FERNANDO MORENO HERNANDEZ were transported to and arrived in the Southern District of New York on August 4, 2017, and are expected to be presented later today, before Magistrate Judge Ronald L. Ellis in Manhattan federal court.
Manhattan Acting U.S. Attorney Joon H. Kim said: “These five defendants allegedly made a brazen attempt to ship nearly 5,000 pounds of cocaine to the U.S., packing the drugs in a speedboat and then trying to outrun authorities in the waters off of Mexico. I want to thank our law enforcement partners, who stopped this massive shipment of narcotics from arriving at our shores.”
DEA Special Agent in Charge James J. Hunt said: “From digging border tunnels to using go-fast boats, drug cartels will stop at nothing to get their illicit product into America. This seizure was a significant profit loss to the traffickers with a sobering effect to drug users in the U.S. I would like to thank our law enforcement partners in the U.S, Mexico and Colombia for their diligent work and collaboration on this investigation.”
HSI Special Agent-in-Charge Angel Melendez said: “This team of perpetrators allegedly attempted to bring more than two tons of cocaine though U.S. borders. It is the collaborative effort with the DEA and other federal and local agencies that law enforcement was able to interdict this action and keep deadly drugs off American streets.”
NYPD Commissioner James P. O’Neill said: “As alleged, this criminal enterprise attempted to import a significant amount of cocaine to the United States by boat but law enforcement intercepted this shipment, five individual were taken into custody, and were subsequently charged. This investigation demonstrates the commitment of the NYPD to work alongside our federal partners to stop illegal drugs from entering our communities and hold responsible those who work to profit from illegal narcotics.”
State Police Superintendent George P. Beach II said: “We simply will not tolerate this type of alleged illegal drug trafficking activity in New York State. The valuable partnerships developed through the New York Organized Crime Drug Enforcement Strike Force were instrumental in these arrests and the seizure of these lethal narcotics. I want to thank our federal, state and local partners for their ongoing hard work and collaboration on this case, which has resulted in the arrests and removal of five alleged dangerous criminals who profit at the expense of our communities.”
As alleged in the criminal Complaint,[1] filed earlier this week in Manhattan federal court:
The DEA has been investigating a Colombian drug cartel (the “Cartel”) that sends shipments of cocaine to various points around the world by, among other methods, panga boats or “go-fasts.” Go-fasts are small boats, typically similar in size to speed boats, with hulls of approximately 20 to 50 feet and a maximum capacity of approximately five passengers.
On or about July 8, 2017, a United States Navy Aircraft (the “Aircraft”) was on routine patrol off the western coast of Mexico and approximately 590 nautical miles south of Mexico. While there, an occupant of the Aircraft observed what appeared to be a go-fast boat (the “Go-Fast”). The Aircraft communicated this information to the command of the United States Coast Guard (the “Coast Guard”), which dispatched a Coast Guard cutter (the “Cutter”) to intercept and board the Go-Fast.
The Cutter approached the Go-Fast and launched a helicopter and a patrol boat (the “Patrol Boat”), which proceeded to intercept the Go-Fast. Occupants of the Patrol Boat (the “Boarding Team”) boarded and gained control of the Go-Fast, where they found CORTES MOLINERO, OCHOA JOAQUIN, CHAVEZ DELGADO, GATAN VARGAS, and MORENO HERNANDEZ.
The Boarding Team observed numerous bales or large bundles wrapped in black plastic and brown tape on the deck of the Go-Fast. The bales were in plain sight and occupied a substantial portion of the deck of the Go-Fast.
The Boarding Team recovered approximately 107 bales and one loose brick from the Go-Fast. Two samples from the bales were field-tested, and tested positive for the presence of cocaine. In total, the contents of the 107 bales and brick weighed approximately 2,141 kilograms or approximately 4,720 pounds.
* * *
CORTES MOLINERO, 30, OCHOA JOAQUIN, 40, CHAVEZ DELGADO, 46, GATAN VARGAS, 51, and MORENO HERNANDEZ 31, are citizens of Mexico. Each defendant is charged with one count of conspiring to violate maritime drug enforcement laws and one count of violating maritime drug enforcement laws by possessing with the intent to distribute cocaine. Each defendant faces a maximum sentence of life imprisonment and a mandatory minimum sentence of ten years’ imprisonment. The statutory maximum penalties and mandatory minimum penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding efforts of the DEA’s New York Drug Enforcement Strike Force, which is comprised of officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations, the New York State Police, and the U.S. Marshal Service, among other agencies. Mr. Kim also praised the outstanding efforts and assistance provided by the Coast Guard, United States Customs and Border Protection, the United States Navy, and the Naval Criminal Investigative Service.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Jane Kim is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
Firearms Crime ReportRead the Press Release
Nicholas Baldwin, 35, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Kenneth Gooch, 42, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Cedric Jennings, 42, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of one or more firearms.
Marlon Williams, 45, was indicted by a federal grand jury for felon in possession of a firearm.
Anthony Young, 44, was indicted by a federal grand jury for felon in possession of a firearm.
Joseph A. Tolcou, 26, pled guilty to one felony count of felon in possession of a firearm.
Robert Earl Davis, 28, pled guilty to one felony count of felon in possession of a firearm.
Carl L. Winston, 51, pled guilty to one felony count of felon in possession of a firearm.
Sandy Griffin, 19, pled guilty to one felony count of transferring a firearm, knowing that the firearm would be used in a crime of violence that is, armed robbery.
Deangelo H. Young, 24, pled guilty to one felony count of felon in possession of a firearm.
Lorenzo Waller, 40, was sentenced to 120 months in prison for possession of a stolen firearm.
Melvin C. Christian, 35, was sentenced to 102 months in prison for felon in possession of a firearm and possession with intent to distribute cocaine base and heroin.
Federal Jury Convicts Dallas Man of Firearm and Drug Offenses Involving HeroinRead the Press Release
DALLAS — Following a three-day trial before U.S. District Judge Sam A. Lindsay, today a federal jury convicted Laroy Damont Johnson, 37, of Dallas, of drug and firearm offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Johnson was convicted of one count of possession with intent to distribute a controlled substance, namely, heroin, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm. The drug count carries a maximum penalty of up to 20 years in federal prison and a $1,000,000 fine. The felon-in-possession count carries a maximum statutory penalty of 10 years and a $250,000 fine. The firearm-in-furtherance count carries a mandatory five-year term of imprisonment that must run consecutively to all other counts. Sentencing is set for December 4, 2017.
According to evidence presented at trial, Johnson was staying at a hotel room in Dallas that he used to sell heroin. Law enforcement searched the room and found Johnson sitting on the couch next to three cell phones and nearly $5,000 cash; distribution quantities of heroin in the fridge; a table covered in what appeared to be heroin residue, along with Xanax pills in a plastic baggie, cocaine, a digital scale, and a razor blade; and a loaded firearm wedged between the mattress and the box spring of the bed. The government presented other evidence suggesting that Johnson had been staying in the room for several days distributing drugs.
The Drug Enforcement Administration and the Irving Police Department investigated. Assistant U.S. Attorneys Andrew Wirmani and Jamie L. Hoxie prosecuted the case.
# # #
Executor of Estate Sentenced for Fraudulent Sale of CondoRead the Press Release
TOPEKA, KAN. - A Wabaunsee County woman who pleaded guilty to fraud while serving as executor of her mother’s estate was sentenced Monday to two years in federal prison, U.S. Attorney Tom Beall said.
Julie D. Woodland, 56, Maple Hill, Kan., pleaded guilty to one count of interstate transportation of funds obtained by fraud. In her plea, she admitted she served as trustee of trusts set up by her parents, Stephen W. Dibble and Elaine R. Dibble. It was her parents’ intent that proceeds of the trusts be shared equally among Woodland and her siblings, Lance A. Dibble and Stan Dibble. Woodland also was executor of her mother’s estate.
Woodland sold a condo in Texas belonging to the trust for $270,000. She distributed half the proceeds to her brother, Stan Dibble, and she kept the rest. Her brother, Lance Dibble, requested an accounting of the trust funds, but she refused to provide the information.
Beall commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
E-Commerce Company and Top Executive Agree to Plead Guilty to Price-Fixing Conspiracy for Customized Promotional ProductsRead the Press Release
An e-commerce company and its top executive have agreed to plead guilty to conspiring to fix prices for customized promotional products sold online to customers in the United States. Zaappaaz Inc. (d/b/a WB Promotions Inc., Wrist-Band.com and Customlanyard.net) and its president Azim Makanojiya agreed to plead guilty to a one-count criminal violation of the Sherman Act.
Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division, Acting U.S. Attorney Abe Martinez and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division made the announcement.
According to the felony charges filed today in the U.S. District Court for the Southern District of Texas in Houston, the conspirators attended meetings and communicated in person and online. The investigation has revealed that the conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype and Whatsapp, to reach and implement their illegal agreements. Specifically, the defendants and their co-conspirators agreed, from as early as 2014 until June 2016, to fix the prices of customized promotional products sold online, including wristbands and lanyards. In addition to agreeing to plead guilty, Zaappaaz has agreed to pay a $1.9 million criminal fine.
“As today’s charges show, criminals cannot evade detection by conspiring online and using encrypted messaging,” said Acting Assistant Attorney General Andrew Finch. “In addition, today’s charges are a clear sign of the Division’s commitment to uncovering and prosecuting collusion that affects internet sales. American consumers have the right to a marketplace free of unlawful collusion, whether they are shopping at retail stores or online.”
“Schemes like the defendants’ cause financial harm to consumers who purchase goods and services and to businesses who sell goods and services in compliance with the laws of the United States,” said Acting U.S. Attorney Abe Martinez. “The United States will continue to investigate and prosecute individuals and businesses who seek to gain an illegal advantage.”
“The FBI stands ready to protect consumers from unscrupulous business practices,” said Special Agent in Charge Perrye K. Turner. “Antitrust laws help protect the competitive process for the benefit of all consumers.”
Makanojiya is charged with price fixing in violation of the Sherman Act which carries a maximum sentence of 10 years in federal prison and a maximum fine of $1 million for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine.
Both defendants have agreed to cooperate with the Antitrust Division’s ongoing investigation. The plea agreements are subject to court approval.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
E-Commerce Company and Top Executive Agree to Plead Guilty to Price-Fixing Conspiracy for Customized Promotional ProductsRead the Press Release
HOUSTON - An e-commerce company and its top executive have agreed to plead guilty to conspiring to fix prices for customized promotional products sold online to customers in the United States. Zaappaaz Inc. (d/b/a WB Promotions Inc., Wrist-Band.com and Customlanyard.net) and its president Azim Makanojiya agreed to plead guilty to a one-count criminal violation of the Sherman Act.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division made the announcement.
According to the felony charges filed today in the U.S. District Court for the Southern District of Texas in Houston, the conspirators attended meetings and communicated in person and online. The investigation has revealed that the conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype and Whatsapp, to reach and implement their illegal agreements. Specifically, the defendants and their co-conspirators agreed, from as early as 2014 until June 2016, to fix the prices of customized promotional products sold online, including wristbands and lanyards. In addition to agreeing to plead guilty, Zaappaaz has agreed to pay a $1.9 million criminal fine.
“As today’s charges show, criminals cannot evade detection by conspiring online and using encrypted messaging,” said Finch. “In addition, today’s charges are a clear sign of the Division’s commitment to uncovering and prosecuting collusion that affects internet sales. American consumers have the right to a marketplace free of unlawful collusion, whether they are shopping at retail stores or online.”
“Schemes like the defendants’ cause financial harm to consumers who purchase goods and services and to businesses who sell goods and services in compliance with the laws of the United States,” said Martinez. “The United States will continue to investigate and prosecute individuals and businesses who seek to gain an illegal unfair advantage.”
“The FBI stands ready to protect consumers from unscrupulous business practices,” said Turner. “Antitrust laws help protect the competitive process for the benefit of all consumers.”
Makanojiya is charged with price fixing in violation of the Sherman Act which carries a maximum sentence of 10 years in federal prison and a maximum fine of $1 million for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine.
Both defendants have agreed to cooperate with the Antitrust Division’s ongoing investigation. The plea agreements are subject to court approval.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
District Court Enters Permanent Injunction Against Utah Pharmacy and Its Executives to Prevent Distribution of Adulterated, Misbranded and Unapproved New DrugsRead the Press Release
The U.S. District Court for the District of Utah entered a consent decree of permanent injunction against defendants Isomeric Pharmacy Solutions LLC (Isomeric), William O. Richardson, who serves as its Chief Executive Officer, Rachael S. Cruz, who serves as its Chief Sales Officer, and Jeffery D. Brown, who serves as its Chief Operating Officer. The injunction permanently enjoins the defendants from distributing adulterated, misbranded and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act.
The Department filed a complaint in the U.S. District Court for the District of Utah on July 27, at the request of the U.S. Food and Drug Administration (FDA), alleging, among other things, that the defendants failed to adequately address insanitary conditions that resulted in contamination in certain processing areas used by Isomeric.
According to the complaint, Isomeric manufactures, labels, and distributes sterile drugs, including injectable hormones, injectable corticosteroids, and ophthalmic drops. The pharmacy distributes most of its drugs directly to physicians throughout the United States. According to the complaint, Isomeric has a history of manufacturing injectable and ophthalmic drug products under conditions that fall short of the minimum requirements to ensure safety and quality.
“Compounding pharmacies must produce their drugs in a way that does not potentially endanger patient safety,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work actively with FDA to ensure that compounding pharmacies comply with the law and provide safe products that doctors and patients can rely on.”
Isomeric initiated three voluntary recalls in 2016, and a fourth in 2017 following an FDA inspection. The 2016 recalls involved three types of injectable suspension drugs: triamcinolone diacetate 40 mg/mL, methylprednisolone acetate/lidocaine HCl 40/10 mg/mL, and betamethasone acetate/betamethasone sodium phosphate. On April 6, 2017, Isomeric recalled all lots of non-expired drug products intended to be sterile that the pharmacy compounded and distributed nationwide between Oct. 4, 2016, and Feb. 7, 2017.
According to the complaint, FDA documented a number of insanitary conditions during a 2017 inspection of Isomeric. FDA observed, following a review of the pharmacy’s own records, that Isomeric repeatedly recovered several types of microorganisms in the air and on surfaces used for sterile processing, demonstrating that products manufactured in those areas were prepared, packed, or held under insanitary conditions, as alleged in the complaint. The complaint further alleges that Isomeric released for distribution over 100 batches of purportedly sterile finished products that had been processed in one or more areas containing particles in excess of the pharmacy’s “action limit” for particulates.
“Isomeric endangered the public health by manufacturing injectable drugs under poor conditions that compromised their required sterility and put patients at risk,” said FDA Commissioner Scott Gottlieb, M.D. “We will continue taking strong enforcement actions against compounders who violate the Drug Quality and Security Act and put patients at risk by failing to produce sterile drugs in compliance with the law.”
In addition, according to the complaint, FDA found deviations of current good manufacturing practice requirements in the pharmacy’s sterile drug manufacturing operations. As alleged in the complaint, Isomeric failed to thoroughly review and investigate unexplained discrepancies and the failure of a batch or any of its components to meet any of its specifications, whether or not the batch was already distributed. In one example, according to the complaint, Isomeric failed to conduct an adequate investigation of black particles observed in vials of product that had “passed” visual inspection.
“The Food, Drug, and Cosmetic Act is designed to protect patients from unsafe drugs,” said U.S. Attorney John W. Huber for the District of Utah. “Today’s enforcement action demonstrates our commitment to ensuring that when deficiencies in drug compounding are identified, they are properly addressed. We will take whatever actions are necessary to reduce the risk to patients who rely on such drugs.”
The defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. As part of the resolution, defendants agree not to resume manufacturing, holding or distributing drugs until they comply with specific remedial measures set forth in the order entered by the Court. Among other requirements, the defendants must hire a qualified independent expert to recommend and direct the implementation of corrective actions. The decree also specifically requires that defendants establish and implement procedures to ensure a thorough investigation of any unexplained discrepancy or failure in a drug batch, regardless of whether the batch has been distributed.
The government is represented by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Sandra L. Steinvoort of the U.S. Attorney’s Office for the District of Utah, with the assistance of Senior Counsel Claudia J. Zuckerman of FDA’s Office of the Chief Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Utah, visit its website at https://www.justice.gov/usao-ut.
Dallas Man Sentenced to 20 Years in Federal Prison for His Role in a Drug Trafficking OrganizationRead the Press Release
DALLAS — Joshua Diaz, 28, a Dallas man who was arrested in June 2016 following a law enforcement investigation into a drug trafficking organization that operated out of the Pleasant Grove, Seagoville and Balch Springs areas, has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
Last week, Diaz was sentenced by Chief U.S. District Judge Barbara M.G. Lynn to 240 months in federal prison. Diaz pleaded guilty to one count of distribution of a controlled substance in October 2016.
According to documents filed in the case, on May 10, 2016, Diaz supplied an undercover officer with approximately 951 grams of methamphetamine. Diaz is responsible for at least 1550.84 grams of methamphetamine.
The investigation into this drug trafficking organization began in early January 2016. During the investigation, law enforcement has seized more than 6700 grams of methamphetamine, approximately 13.2 kilograms of methamphetamine oil, 62 grams of marijuana, 2.5 grams of heroin, and 20 ml of gamma hydroxybutyrate (GHB), as well as 12 firearms and $12,379 in cash.
The Dallas Police Department and the Texas Department of Public Safety investigated the case. Assistant U.S. Attorney Andrew Wirmani prosecuted.
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Devils Lake Man Sentenced on Federal Drug ChargeRead the Press Release
FARGO – U.S. Attorney Christopher C. Myers announced that on August 7, 2017, Jeremy Arlen Crist, age 40, of Devils Lake, ND, was sentenced before U.S. District Judge Ralph R. Erickson to serve 10 years in prison for Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance. Judge Erickson further sentenced Crist to 8 years of supervised release and ordered him to pay a $100 special assessment to the Crime Victims’ Fund.
A Confidential Informant (CI) working with the Lake Region Narcotics Task Force arranged a methamphetamine deal to take place in nearby St. Michael, North Dakota. Law enforcement officers followed the CI to St. Michael where two individuals, one later identified as Crist, were observed by law enforcement exiting the vehicle. Officers approached and found Crist in possession of marijuana in addition to a plastic baggie with purported methamphetamine residue; Crist was subsequently arrested on those charges. Law enforcement further discovered and seized a total of 12 bags of methamphetamine, as well as drug paraphernalia indicative of illicit drug sales. A purity analysis of the methamphetamine that Crist had was conducted and found to be over 99.5% pure.
This case was investigated by the Lake Region Narcotics Task Force; Devils Lake Police Department; North Dakota Bureau of Criminal Investigation; Bureau of Indian Affairs; U S Fish & Wildlife Service; Benson County State’s Attorney’s Office; and the North Dakota Crime Laboratory.
This case is being prosecuted by Assistant United States Attorney Jake Rodenbiker.
http://www.usdoj.gov/usao/nd
Colorado Woman Brandi Leonard Sentenced to Lengthy Prison Term for Producing Child PornographyRead the Press Release
DENVER – Brandi Leonard, age 20, was sentenced last week by U.S. District Court Judge Philip A. Brimmer to serve 240 months (20 years), followed by 10 years on supervised release for production of child pornography, Acting U.S. Attorney Bob Troyer, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert, and Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department announced. Co-defendant Richard Hennis, age 41, of Colorado Springs, Colorado, was previously sentenced also by Judge Brimmer to serve 324 months (27 years) in federal prison for the production and transportation of child pornography. Following his prison sentence, Hennis was also ordered to serve 10 years of supervised release. Defendant Leonard, who appeared at the hearing in custody, was remanded at its conclusion.
Leonard and co-defendant Hennis were first charged by criminal complaints on March 11, 2016. They were then indicted by a federal grand jury in Denver on April 5, 2016. Leonard pled guilty on April 13, 2017, and was sentenced on August 3, 2017. Hennis pled guilty before Judge Brimmer on November 21, 2016, and was sentenced on April 19, 2017.
According to evidence presented in open court, as well as information contained in public filings, including the stipulated facts contained in Leonard’s plea agreement, Leonard and Hennis engaged in online chats spanning approximately one month. Leonard told Hennis that she had sexually abused an infant. Hennis encouraged Leonard to sexually abuse the infant again, to take pictures or video of the abuse, and to send them to him. Leonard did exactly what Hennis had asked. Law enforcement recovered the pictures that were produced of the infant from Hennis’s phone. Hennis then sent the sexual abuse images of the infant to another individual he was communicating with online.
During their chats, the two defendants discussed in graphic detail kidnapping, raping, killing and dismembering a child between the ages of 4 and 8 years old. Leonard twice during the chat indicated that she didn’t intend to go through with it.
“Understand this: federal law enforcement has highly motivated, expert teams standing ready to present the harshest possible punishment if you victimize an infant,” said Acting U.S. Attorney Bob Troyer.
“Crimes perpetrated against children are especially heinous,” said John Eisert, acting special agent in charge of HSI Denver. “I’m proud of the work HSI and our law enforcement partners did to identify these malicious predators and rescue the victim in this egregious case — as well as prevent potential future crimes against other children.”
“The Colorado ICAC would like to thank all individuals that assisted with this investigation,” said ICAC Commander for Colorado, Lieutenant Christina Sheppard of the Colorado Springs Police Department. “Due to their tireless efforts a conviction was obtained and the defendant was sentenced appropriately.”
This case was investigated by HSI and the Colorado Springs Police Department’s ICAC Unit, with support provided by the Limon Police Department.
The defendants were prosecuted by Assistant U.S. Attorney Alecia L. Riewerts, assigned to the Cybercrime and National Security Section of the Colorado U.S. Attorney’s Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.