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26 September 2017
Mattapan Man Re-Sentenced for Firearm OffenseRead the Press Release
BOSTON – A Mattapan man was re-sentenced yesterday in federal court in Boston for a federal firearm offense.
Terrance Moon, 50, was re-sentenced by U.S. District Court Judge Denise J. Casper to time served of approximately 80 months in prison. In October 2013, Moon was sentenced to 220 months in prison after he was convicted by a federal jury of one count of being a felon in possession of a firearm and ammunition. In February 2011, Moon was charged with illegally possessing a Sturm, Ruger & Co, model Service-Six, .357 caliber revolver and six rounds of .357 ammunition.
Moon’s sentencing was revisited as a result of a 2015 United States Supreme Court decision, Johnson v. United States, in which the definition of “violent felony” under the Armed Career Criminal Act (ACCA) was deemed unconstitutionally vague. Moon received his original 220-month sentence based on the ACCA, which provides for enhanced sentences of at least 15 years in prison for defendants convicted of certain firearms possession offenses who have at least three prior felony convictions for violent felonies and/or serious drug offenses. As a result of the Johnson decision and a recent First Circuit case holding that Massachusetts robbery does not satisfy the remaining part of the “violent felony” definition, Moon’s prior sentence was vacated and he was re-sentenced to a non-ACCA sentence.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Robert Richardson of Weinreb’s Major Crimes Unit prosecuted the case.
Man Sentenced to 35 years for Meth Trafficking from Houston to LouisianaRead the Press Release
HOUSTON – A native of Louisiana has been ordered to federal prison following his conviction of possessing with the intent to distribute methamphetamine and possessing a firearm during and in relation to a drug trafficking crime, announced Acting U.S. Attorney Abe Martinez. John Jacob Lavergne, 39, pleaded guilty July 13, 2016.
Today, U.S. District Judge Nancy Atlas ordered Lavergne to federal prison for a total of 420 months. In handing down the sentence, Judge Atlas described this as the largest methamphetamine trafficking case she had seen in her 20 years on the bench. Lavergne was held responsible for trafficking 16 kilograms of ice, a crystallized and very pure form of methamphetamine.
Lavergne was arrested Sept. 11, 2015, after a long-term drug trafficking investigation known as “Operation Meth Highway.” During the course of this investigation, law enforcement discovered Lavergne was buying large quantities of methamphetamine from suppliers in Houston and transporting them to retail distributors in Louisiana for sale.
Authorities also uncovered several instances in which he threatened to use violence to further his drug trafficking. On one occasion, Lavergne threatened to take revenge on a retail distributor for a drug debt she owed. In another instance, he had plotted to rob and shoot another trafficker delivering a two-kilogram load of ice. Law enforcement intervened to prevent the violence.
Lavergne was also arrested during the course of the investigation on two different occasions with firearms.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Operation Meth Highway was a collaborative effort of various law enforcement partners in Texas and Louisiana. Among those were the Drug Enforcement Administration in Houston and Lafayette, Louisiana; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Department of Public Safety; Louisiana State Patrol; police departments in Houston and Huntsville, Texas, and Lafayette and Youngsville, Louisiana; Texas sheriff’s offices in Walker, Harris and Fort Bend Counties; and Louisiana sheriff’s offices in Lafayette, St. Martin, New Iberia and St. Landry Parishes. Assistant U.S. Attorney Sharad S. Khandelwal prosecuted the case.
Laconia Man Sentenced to 96 Months in Federal Prison for Heroin TraffickingRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced today that Jordan Manning, 28, formerly of Laconia, New Hampshire, was sentenced to 96 months in federal prison for possession of heroin with the intent to distribute.
According to court documents and statements in court proceedings, on August 2, 2016, members of the United States Marshals Service and the Tilton, New Hampshire Police Department arrested Manning on an outstanding parole violation warrant while at a motel in Laconia. Once inside the motel room, law enforcement officers seized approximately 193 grams of heroin that Manning had tried to flush down the toilet.
Manning previously pleaded guilty on June 20, 2017. Manning also agreed to forfeit a BMW motor vehicle that he admitted had been purchased with cash generated by his drug dealing.
“As New Hampshire continues to face an unprecedented number of overdose deaths directly caused by opioid use, we will continue to work tirelessly to prosecute those who are responsible for distributing these dangerous drugs in our state.,” said Acting U.S. Attorney Farley. “I commend the quick-thinking law enforcement officers who seized this large quantity of heroin. Their actions prevented these drugs from being distributed and may have saved several lives.”
This case was investigated by the United States Marshals Service and the Tilton Police Department. Assistant United States Attorneys Jennifer Cole Davis prosecuted the case.
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Justice Department Files Antitrust Lawsuit Against Parker-Hannifin Regarding the Company’s Acquisition of CLARCOR’s Aviation Fuel Filtration BusinessRead the Press Release
The Department of Justice filed a civil antitrust lawsuit today against Parker-Hannifin Corporation, challenging its acquisition of CLARCOR Inc. The department said that the $4.3 billion transaction substantially lessened competition in markets for aviation fuel filtration products in the United States, which threatens to result in higher prices, less innovation, and less favorable terms of service.
The department’s lawsuit seeks to restore the competition that this transaction eliminated by asking the U.S. District Court for the District of Delaware to order Parker-Hannifin to divest an aviation fuel filtration business sufficient to replace CLARCOR’s competitive significance in the marketplace.
“Parker-Hannifin bought CLARCOR knowing that this transaction raised serious antitrust concerns under Section 7 of the Clayton Act in the development, manufacture and sale of aviation fuel filtration products,” said Deputy Assistant Attorney General Donald Kempf of the Department of Justice’s Antitrust Division. “The Division is committed to vigorous and sound enforcement of the antitrust laws, and will do its job to protect American customers regardless of whether a merger has already been consummated,” he added.
“Parker-Hannifin’s acquisition of its only U.S. rival for these types of aviation fuel filtration products has effectively created a monopoly in these critical safety products, depriving their customers of the benefits of competition,” said Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division.Aviation fuel must be filtered properly to remove particulate contaminants and water droplets before such fuel is delivered into commercial or military aircraft. The failure to filter aviation fuel properly can result in engine failure, with potentially catastrophic consequences. To protect public safety, the U.S. airline industry mandates the use of aviation fuel filtration systems and filtration elements that have been subjected to rigorous testing and qualification requirements. Only those aviation fuel filtration products qualified by the Energy Institute (EI) may be used to filter aviation fuel for use in U.S. commercial and military planes.
According to the department’s complaint, Parker-Hannifin and CLARCOR were the only two manufacturers of EI-qualified aviation fuel filtration systems and filter elements in the United States and were engaged in vigorous head-to-head competition. That competition enabled customers to negotiate better pricing and to receive more innovative products and better terms of service. The transaction eliminated this competition.
During the pendency of the department’s investigation, Parker-Hannifin failed to provide significant document or data productions in response to the department’s requests. In addition, the company has not agreed to enter into a satisfactory agreement to hold separate the fuel filtration businesses at issue and to maintain their independent viability pending the outcome of the investigation and, now, this litigation.
Parker-Hannifin Corporation is an Ohio corporation headquartered in Cleveland, Ohio. It is a diversified manufacturer of filtration systems, and motion and control technologies for the mobile, industrial and aerospace markets with operations worldwide. In 2016, Parker-Hannifin’s sales revenues were approximately $11.4 billion. Parker-Hannifin sells its aviation fuel filtration products under the Velcon brand.
CLARCOR Inc. was a Delaware corporation headquartered in Franklin, Tennessee. CLARCOR was a leading provider of filtration systems for diversified industrial markets with net sales of approximately $1.6 billion in 2016. CLARCOR manufactured and sold aviation fuel filtration products under the PECOFacet brand.
Justice Department Announces Department-Wide Response to Disaster FraudRead the Press Release
Deputy Attorney General Rod J. Rosenstein announced today that the Justice Department has issued a memorandum to all 94 U.S. Attorney’s Offices (USAO) and heads of the department’s law enforcement agencies providing, for the first time, department-wide guidance relating to the coordination, investigation, and prosecution of disaster fraud allegations.
“The Justice Department is committed to pursuing any fraudsters seeking to capitalize on the tragedy and will devote the necessary resources to do so,” said Deputy Attorney General Rosenstein. “It is imperative that the department is able to properly track and manage its response to claims of disaster fraud and that agencies receive timely and relevant investigative leads and other relevant information. By working together, we can ensure that federal emergency relief funds are properly distributed to those who need them most and that taxpayers are not victimized by fraudsters or other criminals.”
The National Center for Disaster Fraud (NCDF) has already received hundreds of complaints across the country. The NCDF has remained operational since its inception following Hurricane Katrina and is specifically designed to be ready for situations like Harvey, Irma, Jose and Maria. NCDF has an excellent staff of investigators, analysts, call center operators, and managers prepared to handle the anticipated volume.
The memo issued establishes a department-wide policy that stresses the importance of establishing a disaster fraud point-of-contact, directing all disaster fraud complaints to the NCDF, notifying the NCDF about any disaster-related enforcement actions, ensuring proper resources are dedicated to the investigation and prosecution of disaster fraud matters, directing U.S. Attorneys in districts impacted by recent hurricanes to establish regional disaster fraud task forces, as well as including the NCDF hotline in all disaster fraud external communications. The memo can be found here.
U.S. Attorney Offices in the Southern District of Texas, District of Puerto Rico, Southern District of Florida, Middle District of Florida and Northern District of Florida have already established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims. Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud.
Jackson County Woman Sentenced to Prison for Wire Fraud Involving Theft from Two Health Care ProvidersRead the Press Release
TALLAHASSEE, FLORIDA – Melissa Moniz, 44, of Marianna, having pled guilty in May 2017 to wire fraud, was sentenced late Friday afternoon to six months in federal prison to be followed by six months of home confinement. Additionally, she was ordered to pay $41,813.77 in restitution to Gynecology and Obstetrics Associates in Tallahassee. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In December 2012, Moniz applied for employment with the Jackson County Hospital (JCH) in Marianna, Florida. Relying on Moniz’s résumé, which contained false claims of extensive medical management experience, JCH hired Moniz as Director of Physician Practices. As part of her duties at JCH, Moniz urged JCH to use her company, “Billing and Collection Services” (BCS), as a collections agency, and claimed that she had used BCS for collections previously and knew the owner of BCS personally. Based upon Moniz’s recommendation, JCH signed a collections contract with BCS. Moniz failed to disclose the fact that BCS was actually her own company and that the person signing the contract on behalf of BCS was actually her sister. As a result of these misrepresentations and material omissions, Moniz fraudulently obtained $26,775.01 from JCH.
In August 2014, Gynecology and Obstetrics Associates, Inc., (GOA), in Tallahassee, Florida, hired a firm to conduct an audit of all financial activities at the practice. The audit and subsequent investigation revealed that, between March 2007 and April 2013, GOA’s office manager, who was Moniz’s sister, embezzled approximately $1.5 million from GOA through a scheme involving fraudulent invoices, fictitious vendors, and payments funneled to the office manager’s personal accounts.
The investigation later disclosed that the GOA office manager used GOA monies to pay Moniz and BCS to conduct collections services for GOA. The collections services for which Moniz was paid were never performed. The office manager issued 39 checks from GOA to “BCBS,” making the checks appear as if they were issued to Blue Cross Blue Shield. However, the checks were actually provided to Moniz who endorsed and deposited them into her BCS bank account. The checks totaled $116,813.77.
This case resulted from an investigation by the Federal Bureau of Investigation and the Leon County Sheriff’s Office. Assistant United States Attorney Stephen M. Kunz prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Israeli Citizen Sentenced to 3 Years in Prison for FOREX FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that FADI EWIESS, a/k/a “Fadi Awise,” was sentenced today to three years in prison on wire fraud charges in connection with his participation in a scheme to defraud investors through the operation of a purported foreign exchange (“forex”) trading company called Golden Bridge FX. EWIESS pled guilty on April 11, 2017, and was sentenced by United States District Judge Deborah A. Batts.
Acting U.S. Attorney Joon H. Kim said: “As he admitted at his plea, Fadi Ewiess lied to prospective investors about his company’s expertise in the foreign exchange markets, sending them forged ‘guarantees’ from New York banks to entice them to invest with him. Ewiess and others raised more than $5 million from victims around the globe, but instead of investing it, he spent much of that money on gambling, personal expenses, and transfers to family members. Today, Fadi Ewiess learned the price of his criminal conduct.”
According to the Complaint, Information, and statements made during court proceedings:
From in or about 2015 through in or about 2016, EWIESS operated a company called Golden Bridge FX (“Golden Bridge”). Golden Bridge purported to host an online foreign currency trading platform that allowed customers to place bets on the direction with which particular currencies would move relative to others. Investors using this platform either made investments themselves or authorized representatives from Golden Bridge to do so on their behalf. In order to induce investments, EWIESS and others at Golden Bridge promised certain investors unrealistically high rates of return for managed accounts, and, in other instances, falsely told investors that their trading was guaranteed against losses by U.S. banks. To substantiate these purported guarantees, EWIESS and others distributed forged documents that appeared to have been (but in actuality were not) issued by the relevant banks.
EWIESS and others raised more than $5 million during the course of the scheme, with much of this money coming from investors in Saudi Arabia and other countries. Over $2 million of that amount, moreover, was raised through the use of the fraudulent guarantees described above. Instead of honoring these guarantees (or, indeed, placing any securities transactions at all), EWIESS spent millions of his investors’ money on personal expenses like travel and hotels, on gambling trips, and on transfers to his family members. Other investor money was used to pay returns to investors so that they would invest or refer additional money to EWIESS and Golden Bridge, thereby allowing the scheme to continue.
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In addition to the prison sentence, EWIESS, 39, of Israel, was ordered to forfeit a sum of $2,105,619.91 and the contents of five bank accounts associated with the scheme.
Mr. Kim praised the work of the Federal Bureau of Investigation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Robert Allen is in charge of the prosecution.
Houston, Texas Man Sentenced to 40 Months and a $95,000 Fine for Smuggling Korean Human Growth Hormone Drugs to Local Patients and Professional WrestlersRead the Press Release
St. Louis, MO – George Patino, 57, of Houston, Texas, was sentenced today to 40 months of imprisonment and a $95,000 fine. Patino was previously convicted by a jury on June 8, 2017 after a three-day trial of conspiracy, distributing Human Growth Hormone (“HGH”) for unauthorized medical purposes, and smuggling.
According to Court documents, under federal law, doctors can lawfully prescribe HGH for several narrow medical uses, for example to patients with wasting diseases associated with AIDS or Prader-Willi syndrome. HGH cannot be prescribed to help patients with body-building, anti-aging, or weight loss treatments. From April 2014 through June 2015, the evidence showed at trial that Mr. Patino sent numerous packages of HGH to a local St. Louis, Missouri doctor and many local patients. The local patients receiving the HGH hoped to increase their energy, strength, endurance, and athletic ability. The HGH smuggled here to Missouri by Mr. Patino was misbranded in that the drugs’ dosage and use instructions were in Spanish not English, and the drugs came from a Korean drug manufacturer that has not been approved by the U.S. Government to sell this drug in the United States.
A local doctor, Dr. Michael “Ted” Mimlitz, previously pled guilty in this same investigation to providing misbranded HGH drugs to numerous local patients who were experiencing a lack of energy, decreases in strength or endurance, or decreased athletic ability.
“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drugs are safe and effective for patients to use,” said Special Agent in Charge, Spencer Morrison, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
This case was investigated by the Office of Criminal Investigation for the U.S. Food and Drug Administration, with assistance from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.
Holbrook Man Pleads Guilty to Federal Drug ChargesRead the Press Release
BOSTON – A Holbrook man pleaded guilty yesterday in federal court in Boston to federal drug charges.
Arcelino Silva, 28, pleaded guilty to one count of possession with intent to distribute heroin, fentanyl, and cocaine; and one count of possession with intent to distribute heroin and cocaine. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 19, 2017.
Silva was arrested on May 1, 2016, for possession of suboxone while Silva was inside a vehicle in the parking lot of the apartment complex where he lived. Four cell phones, $8,500 in cash, and numerous bags containing over 60 grams of heroin, fentanyl, and cocaine were recovered during a search of the vehicle. While out on bail for state charges stemming from his May arrest, Silva was arrested on federal charges on Aug. 10, 2016. At the time of his arrest, officers seized from him over $3,000, six grams of cocaine and cocaine base, and approximately nine grams of heroin.
Each charge of possession with intent to distribute heroin, fentanyl, or cocaine provides for a sentence of no greater than 20 years in prison, up to a life term of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Holbrook Police Chief William J. Smith; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Theodore Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Grand Jury Issues Indictments Alleging Three Schemes to Smuggle Protected Coral Species in and Out of the United StatesRead the Press Release
LOS ANGELES – A federal grand jury has returned three indictments charging a total of three individuals and two companies with engaging in the unlawful trading of live corals that are protected by an international treaty known as the Convention on the International Trade of Endangered Species of Wild Fauna and Flora (CITES).
The indictments allege the defendants violated various federal statutes, including smuggling laws, The Endangered Species Act and a conservation statute known as The Lacey Act.
“The mountains, plains and oceans of this planet are under constant assault from those who would harvest these resources without end,” said Acting United States Attorney Sandra R. Brown. “The corals in these cases were being trafficked for the sole purpose of decorating fish tanks. We will enforce federal laws that control the trafficking of wildlife to ensure the ongoing survival of plants and animals that all serve an important role in the environment.”
“Special agents of the U.S. Fish and Wildlife Service investigated a complex scheme where live coral were illegally ripped from coral reefs, hidden in air cargo shipments and imported at odd hours in an attempt to smuggle them into the United States,” said USFWS Special Agent in Charge Jill Birchell. “This case highlights that wildlife smuggling is a transnational crime that often decimates not only wild populations of animals and fish, but, as in the case of smuggled live coral, the very habitat that imperiled wildlife depend on for survival. We will continue to work closely with our federal, international, and state partners to investigate and prosecute individuals who exploit protected wildlife for financial gain.”
The three indictments outlined below were returned by a grand jury on September 20.
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Renaissance Aquatics, Inc. and Lim Aqua-Nautic Specialist, Inc. – both located in Inglewood – and Chet Bryant, 37, of Houston, were charged with unlawfully importing live, CITES-protected corals from Vietnam and submitting false records to conceal their unlawful activity on seven occasions over a five-month period. According to court documents in this case, the corals were hidden from view in shipments containing other wildlife. The indictment also charges Renaissance and Bryant with conspiracy and attempting to unlawfully export live coral.
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Jose Torres, 42, of Gardena, was charged with unlawfully attempting to export to Mexico 20 varieties of live, CITES-protected corals. The indictment also alleges that Torres submitted false records to the USFWS that omitted the corals and understated the size of the shipment.
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Jorge Vazquez, 39, of Garden Grove, was charged with unlawfully attempting to export live, CITES-protected corals. Transportation Security Administration officers found the corals hidden in Pringles potato chip cans during a baggage inspection at Los Angeles International Airport. Vazquez later admitted that he packed the corals into the Pringles cans, then placed the cans in his mother’s luggage for her to transport to Mexico.
The five defendants will be summoned to appear for arraignment in the United States District Court in the coming weeks.
Each of the three indictments alleges multiple federal charges, including attempting to export wildlife contrary to law, a charge that carries a statutory maximum penalty of 10 years in federal prison. Bryant is charged with seven counts of wildlife smuggling, each of which carries a statutory maximum penalty of 20 years of imprisonment.
These cases were investigated by the United States Fish and Wildlife Service.
The cases are being prosecuted by Assistant United States Attorneys Heather C. Gorman and Dennis Mitchell of the Environmental and Community Safety Crimes Section.
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Gilmer County man admits to illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA –Jeremy Allen Wolfe, of Glenville, West Virginia has admitted to illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Wolfe , age 32, pled guilty to one count of “Felon in Possession of Firearm.” In November 2014, Wolfe was found in possession of multiple firearms, including three rifles and two shotguns, in Calhoun County, WV. Wolfe, having been convicted of a crime punishable by imprisonment for a term exceeding one year, that is, Delivery of a Controlled Substance, in Gilmer County, WV is prohibited from possessing firearms.
He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.Garland Tax Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
DALLAS — Mike Cano of Wylie, Texas, appeared in federal court this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of aiding and assisting in the preparation of false individual income tax returns, announced U.S. Attorney John Parker of the Northern District of Texas.
Sentencing is set for January 10, 2018, before Chief U.S. District Judge Barbara M.G. Lynn. Cano faces a statutory maximum penalty of three years in federal prison and a $100,000 fine. He may also be ordered to pay restitution.
On September 21, 2016, Cano and co-defendants Jimmy Luis Briseno, Rene N. Barrera, Sr. and Christopher Lee DeLeon were charged with conspiracy to defraud the IRS and other charges related to the filing of false tax returns. According to the factual resume filed in the case, from January 2011 through March 2012, Cano worked as a tax return preparer for Briseno at Tax Genius offices in Garland, Texas. In his plea papers, Cano admitted that DeLeon, Briseno, Barrera and Cano all routinely prepared and caused to be electronically filed with the IRS individual income tax returns that contained one or more of the following falsely inflated or fictitious items: false Forms Schedule C; false and fabricated Education Credits, and false items used to inflate and maximize the Earned Income Tax Credit (EITC) on the tax return. Cano also stated that Briseno trained Cano and others how to file false tax returns in 2011 and 2012. During this period, Cano and his co-defendants caused false and fraudulent information and documents to be submitted to the IRS with the intent to fraudulently cause the IRS to pay refunds based on this false tax information.
Cano caused the filing of seven false tax returns resulting in a tax loss of $31,367 due to false refunds claimed.
IRS Criminal Investigation is investigating the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Former Treasurer of Fraternal Order of Police Lodge Indicted for Embezzling More Than $110,000Read the Press Release
CHARLOTTE, N.C. – The former Treasurer of a Fraternal Order of Police Lodge, Timothy James Brewer, 63, of Newton, N.C., has been indicted on wire fraud charges for embezzling more than $110,000 from the non-profit organization, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The federal grand jury returned the criminal indictment on September 19, 2017, and it was unsealed this morning following Brewer’s court appearance before U.S. Magistrate Judge David C. Keesler.
U.S. Attorney Rose is joined in making today’s announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service.
According to allegations contained in the bill of indictment, from 2005 to 2016, Brewer worked for the Catawba County Fraternal Order of Police Lodge #26 (FOP), located in Newton, and was elected to serve as its Treasurer. As fiduciary of the FOP, Brewer was responsible for the financial affairs of the organization to include acting as the custodian of the funds.
Over the course of his employment at the FOP, the indictment alleges that Brewer engaged in a scheme to defraud the FOP by fraudulently diverting the organization’s funds for his personal benefit. As alleged in the indictment, Brewer fraudulently obtained approximately $110,134.64 from the FOP and converted the funds for his personal gain without any authority from the FOP. Brewer was the sole recipient of bank and credit card statements which were mailed directly to his residence, thereby concealing the nature of the purchases from the FOP.
The indictment alleges that Brewer misused an FOP credit card, of which Brewer was an authorized user, for personal use, and successfully converted approximately $61,875.03 for his personal gain. Brewer also used an FOP bank account to pay the balance on a personal credit card, and converted approximately an additional $48,259.61 for his own personal gain without any authority from the FOP. According to allegations in the indictment, Brewer used the fraudulently converted funds to pay for, among other things, restaurants, hotels and medical bills.
Brewer has been released on bond. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was handled by USPIS assisted by the Newton Police Department. Assistant United States Attorney Jenny Sugar, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Former St. Joseph Scout Leader Charged with Distributing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former St. Joseph, Mo., Boy Scout leader has been charged in federal court with distributing child pornography over the Internet.
Michael R. Goeller, 45, of St. Joseph, was charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Thursday, Sept. 22, 2017. The complaint was unsealed and made public following Goeller’s arrest on Monday, Sept. 25, 2017. Goeller remains in federal custody pending a detention hearing, which has not yet been scheduled.
According to an affidavit filed in support of the criminal complaint, the investigation began on Feb. 15, 2017, when a law enforcement officer in Arkansas downloaded a video file that contained child pornography through a peer-to-peer file-sharing network that was later linked to Goeller’s computer.
On Sept. 20, 2017, law enforcement officers executed a search warrant at Goeller’s apartment and seized a laptop computer and other digital electronic devices and digital media storage devices. A full forensic digital examination of the devices seized from Goeller is pending, the affidavit says, but a digital forensic preview tool was utilized on the laptop and indicated at least 10 images of child pornography and other files names with terms associated with child pornography.
After the completion of the search warrant, the affidavit says, investigators learned that Goeller had made contact with a local priest to confess to child pornography having been found on his computer. Goeller also immediately resigned as an assistant scoutmaster with the Boy Scouts of America due to his interaction with this criminal investigation.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Gulf Cartel Leader Convicted of Drug Conspiracy and Assaults on Federal OfficersRead the Press Release
BROWNSVILLE, Texas - Jorge Costilla-Sanchez has pleaded guilty to conspiracy to possess with intent to distribute cocaine and marijuana as well as two counts of assault on a federal officer, announced Acting U.S. Attorney Abe Martinez.
Costilla-Sanchez, 46, was the head of the Gulf Cartel (CDG) for some of the years following the arrest of Osiel Cardenas in 2003 and before Costilla-Sanchez’s arrest in September 2012. Since the 1990s, the CDG has been the lead transnational narcotics trafficking and money laundering organization in Northern Tamaulipas, Mexico.
During his association with the CDG, Costilla-Sanchez was responsible for making strategic decisions and trying to manage various factions within the CDG. From 1998-2012, Costilla-Sanchez helped provide leadership to the CDG which resulted in the importation of thousands of kilograms of cocaine and marijuana into the United States. CDG narcotics enter the country at the Ports of Entry in Hidalgo and Cameron County, along the Rio Grande River and through lanchas arriving along the National Seashore at Padre Island. Once imported into the U.S., traffickers here would transport the narcotics to various cities throughout the United States. Profits from the sale of narcotics were returned to the CDG in Mexico. Money laundering efforts to promote this scheme included bulk cash currency smuggling to Northern Mexico, the use of funnel accounts to wire money into banking accounts for eventual repatriation to the CDG and the purchase of assets to disguise the illicit nature of these drug proceeds.
Other key parts of the CDG drug trafficking organization were the promotion of public corruption as well as the collection of a “piso” or tax from business owners, illegal alien smugglers and independent narcotics traffickers in Mexico which would allow them to operate.
During his guilty plea today, Costilla-Sanchez acknowledged his participation in a conspiracy to possess with intent to distribute kilogram amounts of cocaine and marijuana.
He also admitted his involvement in the assault of two federal officers. In November 1999, Costilla-Sanchez was with Cardenas when two U.S. federal agents were seen near a CDG residence. Cardenas called out on a two-way radio to his security team and ordered them to stop the agents. The CDG had at least four vehicles deployed to force the U.S. agents to stop in broad daylight on a heavily traveled street in Matamoros. Costilla-Sanchez also arrived at the stop and carried a pistol to the encounter. Several CDG members also pointed AK-47s at the agents who felt in fear of losing their lives. Cardenas and another co-defendant - Juan Carlos De La Cruz Reyna – also pleaded guilty to the assault and were both sentenced to prison.
Costilla-Sanchez’s sentencing has been set for Jan. 4, 2018, before U.S. District Judge Hilda G. Tagle. At that time, Costilla-Sanchez faces a minimum of 10 years and up to life in federal prison. He is also subject to a money judgement regarding the proceeds he obtained during his participation in the conspiracy. That amount will be determined at the time of sentencing.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, Cameron County Sheriff’s Office and Brownsville Police Department conducted the investigation. Assistant U.S. Attorneys Jody Young, Toni Trevino and Karen Betancourt are prosecuting the case.
Former FBI Agent Sentenced in Federal CourtRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated that, Kenneth W. Hillman, III, age 47, of Dalton, Georgia was sentenced in federal court in Rome, Georgia for disclosure of confidential information, a violation of 18 U.S.C. § 1905. Senior United States District Judge Harold L. Murphy of Rome sentenced Hillman to six (6) months’ probation, $1,000 fine and a special assessment of $25.00.
Evidence presented at the change of plea hearing established that between August 1, 2012 and November 30, 2012, the Department of Justice Federal Bureau of Investigations (FBI) employed Mr. Hillman as a Special Agent in the Northern District of Georgia. Mr. Hillman was assigned as the lead agent of the Northwest Georgia Internet Crime and Child Exploitation Task Force (Task Force). This Task Force included other officers assigned from local law enforcement agencies.
The Task Force was authorized to investigate and solicit, via the internet, persons seeking to have sexual relations with children. This Task Force used an undercover facility along with undercover computers, government cell phones and specialized internet chat language designed by and known only to the Task Force members to solicit and lure these individuals to the area where they were arrested.
During this period, neither E. R. nor A. R. were law enforcement officers or members of the Task Force. Mr. Hillman disclosed sensitive, but unclassified, information as to the operation of this Task Force to E. R. and A. R. This disclosure included allowing E. R., on one occasion, and A. R. to view agents involved in the internet chatting with some individuals and allowing them to accompany agents during the arrests of some of these individuals.
Mr. Hillman also allowed A. R. access to a sensitive, but unclassified, undercover FBI computer and the specialized internet chat language used by the Task Force. Mr. Hillman allowed A. R., using the FBI’s undercover computer and the specialized language, to conduct several chats with persons on behalf of the Task Force. A. R. recruited several individuals who were looking to engage sexually with minor children to the area. These persons were arrested.Mr. Hillman was not authorized by law to divulge, disclose or make known in any manner the Task Force operation to E. R. and/or A. R., or to allow A. R. to participate in the undercover operation of the Task Force, to possess and operate FBI equipment, to conduct chats, arrests, or otherwise be involved in the operation of the Task Force.
The case was investigated by agents of the Department of Justice, Office of the Inspector General. Assistant United States Attorneys William K. Witherspoon and James H. May of the United States Attorney’s Office, District of South Carolina, because the United States Attorney’s Office in the Northern District of Georgia had been recused from the matter.
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Felon from Sandia Pueblo Sentenced for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Robert Lorenzo Perea, 32, of Sandia Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 21 months in prison for violating federal firearms laws by unlawfully possessing a firearm and ammunition. Perea will be on supervised release for three years after completing his prison sentence.
Perea was arrested in Nov. 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on Jan. 31, 2016, in Sandoval County, N.M. According to the indictment, Perea was prohibited from possessing firearms or ammunition because he previously had been convicted of child abuse and false imprisonment.
On Jan. 20, 2017, Perea pled guilty to the indictment. In entering the guilty plea, Perea, admitted that on March 29, 2010, he was convicted of two counts of child abuse and false imprisonment and was therefore prohibited from possessing firearms or ammunition on Jan. 31, 2016.
This case was investigated by the Albuquerque office of the FBI and the Sandia Pueblo Police Department. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Federal inmate sentenced to prison for possessing a weaponRead the Press Release
CHARLESTON, W.Va. – A federal inmate was sentenced today to a year and three months in prison for possessing a weapon at the Federal Correctional Institution at McDowell, announced United States Attorney Carol Casto. Christopher Williams, 31, previously pleaded guilty to possession of a weapon by an inmate of the institution.
Williams admitted that on August 25, 2016, he possessed a handcrafted weapon commonly known as a “shank.” The weapon was a piece of metal approximately six inches long, sharpened on one end, with a handle made of duct tape. The weapon was discovered during a search of Williams when a prison staff member observed it fall from his clothing.
This case was investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
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FCI-Berlin Inmate Pleads Guilty to Assaulting Another Inmate with A Box CutterRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Audie Cruz-De Los Santos, 40, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, pleaded guilty today to assaulting another inmate with a box cutter.
According to statements made during the change of plea hearing and documents filed with the court, Cruz-De Los Santos assaulted another inmate from behind and slashed the neck of the inmate using a box cutter. The video surveillance system at FCI-Berlin captured Cruz-De Los Santos placing an object in a recycling container located within the unit where the assault took place. Prison staff retrieved a blood stained box cutter from the container immediately after the assault. The assaulted inmate was treated at Androscoggin Valley Hospital and then transferred to Dartmouth Hitchcock for surgery to treat the wound.
Sentencing has been scheduled for is January 18, 2018.
The case was investigated by the staff at the Federal Bureau of Prisons and is being prosecuted by Assistant U.S. Attorney Donald Feith.
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Eagle Butte Man Sentenced on Methamphetamine ChargeRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Distribution of a Controlled Substance was sentenced on September 18, 2017, by U.S. District Judge Roberto A. Lange.
Jeremiah Little Wounded, age 37, was sentenced to 6 months in custody, followed by 3 years of supervised release, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Little Wounded was indicted by a federal grand jury on November 9, 2016. He pled guilty on June 27, 2017.
Little Wounded admitted that on July 7, 2016, he knowingly and intentionally distributed a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, to another individual for $100.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Little Wounded was immediately turned over to the custody of the U.S. Marshals Service.
Dupree Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 19, 2017, by U.S. District Judge Roberto A. Lange.
Alyce Marie Morrison, age 34, was sentenced to 95 months in custody, followed by 3 years of supervised release, forfeiture of $80 in U.S. currency, a firearm and ammunition, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $200.
Morrison was indicted by a federal grand jury on March 15, 2017. She pled guilty on June 27, 2017.
Morrison admitted that between July 1, 2016, and March 15, 2017, she knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota.
Morrison received distributable quantities of methamphetamine and distributed some of the methamphetamine in South Dakota. The individuals who provided Morrison with the methamphetamine knew that she intended to engage in further distribution. Morrison admitted that it was reasonably foreseeable to her that more than 500 grams of methamphetamine would be distributed during the course of the conspiracy.
On November 16, 2016, in Dupree, Morrison sold 1.5 grams of methamphetamine to a confidential informant for $175 and fronted that informant another gram of methamphetamine.
On January 14, 2017, Morrison was stopped by tribal law enforcement in Eagle Butte. In her possession, she had $80 in U.S. currency, 6.68 grams of methamphetamine, and a loaded firearm. Those items were seized by law enforcement and forfeited.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Morrison was immediately turned over to the custody of the U.S. Marshals Service.
Dominican National Pleads Guilty to Illegal Reentry after DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Rafael Tejeda, 54, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 19, 2017. Tejeda was previously deported from the United States in April 2013. In May 2017, federal agents in Boston encountered Tejeda and found him to be illegally present in the United States.
Tejeda faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
Dominican National Pleads Guilty to Heroin, Cocaine ChargesRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to his role in a heroin distribution conspiracy operating in and around Waltham.
Richard R. Fernandez, 23, a Dominican national residing in Lawrence, pleaded guilty to eight counts of distribution and possession with intent to distribute heroin and cocaine. U.S. District Court Judge Dennis Saylor IV scheduled sentencing for Jan. 2, 2018. In March 2017, Fernandez was arrested along with three others, Jose C. Torres, Angel G. Rivera Serrano, and Luis Humberto Arias Lara.
Fernandez and the three other defendants distributed heroin in and around Waltham over the course of several months. Each of the defendants allegedly sold drugs to an undercover investigator. On March 30, 2016, law enforcement executed federal search warrants at two residences and two alleged stash houses where they seized approximately $200,000 in cash and approximately 1.5 kilograms of narcotics.
In August 2017, Arias Lara was sentenced to five months in prison. In September 2017, Rivera Serrano was sentenced to 10 months in prison. Torres pleaded guilty and is scheduled to be sentenced on Oct. 27, 2017.
The charges each provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. Assistance was provided by members of the Suburban Middlesex County Drug Task Force, which is composed of the Waltham, Watertown, Newton, Arlington, Belmont, Weston and Lexington Police Departments. Assistant U.S. Attorney Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
District Man Sentenced to Six Years in Prison for Armed Robbery in Northeast WashingtonRead the Press Release
WASHINGTON - Anthony Williams, 23, of Washington, D.C., was sentenced today to a six-year prison term after earlier pleading guilty to robbing a man at gunpoint in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Williams pled guilty in July 2017, in the Superior Court of the District of Columbia, to a charge of armed robbery. He was sentenced by the Honorable Danya A. Dayson. Upon completion of his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, in the early evening of Jan. 4, 2017, Williams and an accomplice approached the victim, who was walking in the 2300 block of Lincoln Road NE. Williams pointed a firearm at the victim’s head and said, “If you want your life, don’t move.” The victim raised his hands above his head, but Williams nonetheless struck him on the right side of his face with either the handgun or a fist. At the direction of Williams, the accomplice removed items from the victim’s pockets, including his cellphone and wallet, containing cash and credit cards. Williams and his accomplice then fled the area.
Subsequent investigation determined that Williams had been at the location of the armed robbery. In addition, the victim later reported that one of his stolen credit cards had been used fraudulently at fast-food restaurants and 7-Eleven stores, and the 7-Eleven video surveillance footage depicted an individual matching Williams’s description.
On Jan. 9, 2017, two witnesses identified Williams as the person recorded in the 7-Eleven video surveillance footage. In addition, one of the witnesses stated that Williams had a dark-colored firearm. That same day, the Metropolitan Police Department (MPD) responded to a residence in the 1300 block of W Street SE in an attempt to locate Williams. Police found him in one of the bedrooms, underneath a bed. In the same room, police also located a green jacket with fur around the collar that appeared to be the same jacket worn by the person in the 7-Eleven video. In the pocket of the green jacket, law enforcement located a fully loaded Glock .45-caliber magazine that Williams acknowledged belonged to him. Williams was arrested and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by former Assistant U.S. Attorney Vanessa Goodwin. Finally, she commended the efforts of Assistant U.S. Attorney Vivien Cockburn, who prosecuted the case.
District Man Pleads Guilty to Felony Charges for Two Shootings in Southeast WashingtonRead the Press Release
WASHINGTON – Randy Sparrow, 31, of Washington, D.C., pled guilty today to charges stemming from two separate shootings that occurred in Southeast Washington within a 48-hour period last summer, U.S. Attorney Jessie K. Liu announced.
Sparrow pled guilty in the Superior Court of the District of Columbia to one count of unlawful possession of a firearm based on a prior conviction for a crime of violence and one count of felony assault on a police officer while armed. The plea, which is subject to the Court’s approval, calls for an agreed-upon sentence of eight years in prison, consisting of two consecutive statutory mandatory minimum terms in prison. The Honorable Marisa Demeo scheduled sentencing for Dec. 14, 2017.
According to the government’s evidence, the first of the two shootings took place on July 8, 2017. At approximately 2:35 a.m., Sparrow, who was driving a green and black Ford Crown Victoria, chased the victim, who was driving a separate car, through various locations in Southeast Washington. As Sparrow pursued the victim, he shot at him multiple times with a firearm, striking him once in the left arm. Sparrow and the victim had met in jail approximately six or seven years ago and were with two different groups inside the jail that did not get along. Sparrow was convicted of armed robbery in 2004.
The second shooting took place on July 10, 2017. At approximately 2:05 a.m., in the 1900 block of Savannah Street SE, officers with the Metropolitan Police Department (MPD) came into contact with Sparrow during the stop and subsequent arrest of an individual that Sparrow referred to as his “little brother.” After Sparrow became upset and tried to interfere, MPD officers placed him in handcuffs, which were later removed. At approximately 2:20 a.m., four of the MPD officers left the location in an unmarked police vehicle and drove eastbound on Savannah Street SE. Sparrow followed them in a green and black Ford Crown Victoria and fired multiple shots at the officers with a firearm, striking their vehicle at least once. Sparrow then made a U-turn and fled in the opposite direction. He ran a red light, hit another vehicle at the intersection of Stanton Road SE and Alabama Avenue SE, and crashed into a tree in front of a school in the 3200 block of Stanton Road SE. Sparrow fled the vehicle and block on foot, leaving behind a Glock 19, 9mm handgun. He was arrested later that morning.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle, Victim/Witness Advocate Jennifer Allen, and Witness Security Specialists Debra Cannon and Tanya Via. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case.
District Court Enters Permanent Injunction Against Two New Jersey Companies and Two Individuals to Stop Distribution of Unapproved and Misbranded DrugsRead the Press Release
Two companies in New Jersey and two individuals have been enjoined from distributing their unapproved injectable skin whitening drugs and other drugs in violation of federal law, the Department of Justice announced today.
The U.S. District Court for the District of New Jersey entered a consent decree of permanent injunction against Flawless Beauty LLC of Ocean Township and Asbury Park, New Jersey; RDG Imports LLC of Asbury Park, New Jersey; and Jack H. Gindi and Susana B. Boleche. The injunction permanently enjoins the defendants from distributing unapproved and misbranded drugs in violation of the federal Food, Drug, and Cosmetic Act (FDCA). In addition, the injunction requires the defendants to recall and destroy all of their unapproved injectable skin whitening drugs.
The Department filed a complaint in the District of New Jersey on Sept. 14, at the request of the U.S. Food and Drug Administration (FDA). As detailed in the complaint, the defendants import, process, pack, label, hold, and/or distribute a variety of unapproved drugs, including unapproved prescription drugs, in violation of the FDCA. Specifically, the complaint alleged that the defendants sold a number of skin whitening drugs, including injectable drugs, despite the absence of FDA approval or a sufficient showing that these products were safe and effective.
“The Department of Justice is committed to enforcing federal consumer protection laws,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will continue to work diligently with the FDA to ensure that companies and individuals follow the laws designed to protect American consumers.”
As noted in the complaint, the vast majority of the defendants’ products are marketed with skin whitening claims. According to the complaint, some of defendants’ products contain unsubstantiated therapeutic claims. For example, some of the products were promoted with claims such as “contribute to good liver function” and “clinically treat degenerative brain & liver diseases including Parkinsons.” The complaint alleged that the defendants introduce new drugs, or cause them to be introduced, into interstate commerce in violation of the law.
The complaint alleged that defendants’ unapproved new and misbranded drugs present serious public health risks, especially defendants’ purportedly sterile injectable skin whitening drugs. Intravenous and intramuscular administration of drugs creates many risks, including nerve or blood vessel damage, blood-borne infection, superficial skin infection, cellulitis, abscess formation and toxic systemic reactions.
The complaint alleged that in addition to distributing unapproved drugs, some of the defendants’ drugs were misbranded because they contained labeling that is false or misleading. In particular, the complaint alleged that the labeling suggests or implies FDA approval or endorsement, when no such FDA approval for any of these products existed. The complaint further alleged that some of defendants’ unapproved drugs are misbranded because they bear inadequate directions for use, are unsafe prescription drugs, and are prescription drugs that fail to bear ‘Rx’ on their labels.
Products referenced in the complaint include Relumins Advanced Glutathione and New Relumins Advanced Glutathione 3500 mg; Tatiomax Glutathione Collagen Whitening; and Laennec Human Placenta Whitening; Relumins Advanced Oral Whitening & Antiaging Stack; Authentic Relumins Advanced White Stem Cell Therapy All In One Day Lotion; Authentic Relumins Advance Whitening Facial Cream With TA Stem Cell & Placenta; Relumins Medicated Professional Acne & Dark Spot Fighting Set; Natural Pearl Whitening Lotion; Authentic Kustie Beauty Slimming Activated Hot Cream; Authentic Mosbeau Placenta White Clarifying Toner; Gluta PowerPeel Soap; Relumins Advance White-Whitening Deodorant Roll-On and Sante Barley Fusion.
In conjunction with the filing of the complaint, the defendants agreed to settle the case and to be bound by a permanent injunction. The injunction requires defendants to stop importing, receiving, manufacturing, preparing, processing, packing, labeling, holding, and/or distributing any unapproved drugs, including their injectable skin whitening drugs, unless and until defendants comply with specific remedial measures set forth in the permanent injunction.
In addition, within 20 days after the district court’s order, the defendants are required to recall and destroy, under FDA supervision and to FDA’s satisfaction, all unapproved injectable skin whitening drugs.
“Distributing unapproved drugs and mislabeling them to give the impression that they have been approved by the FDA is a practice that cannot be tolerated,” said Acting U.S. Attorney William E. Fitzpatrick, District of New Jersey. “This decree ensures that these products will be removed from the marketplace and that the defendants will not be allowed to distribute them until they bring the products into compliance with the law.”
The government is represented by Trial Attorney Mary M. Englehart of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Anthony Labruna of the U.S. Attorney’s Office for the District of New Jersey, with the assistance of Associate Chief Counsel for Enforcement Sonia Nath of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
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 New Jersey, visit its website at https://www.justice.gov/usao-nj.
Department of Justice awards grant to Lake Charles District Attorney’s Office to fight opioid epidemicRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that $400,000 will go to the Lake Charles District Attorney’s Office to combat the opioid drug epidemic by funding a drug court.
The Office of Justice Programs awarded the 14th Judicial District Attorney’s Office in Lake Charles $400,000 for Fiscal Year 2017 to enhance funding for adult drug courts and veteran treatment courts. The grant program furthers the Department of Justice’s aim to reduce opioid abuse and support law enforcement officers, as well as other justice partners, by providing resources and tools that support prevention of future crime by offenders with addictions.
Of the $59 million total awarded to various agencies around the country, 22.2 million will go to 53 jurisdictions to support the drug and veterans treatment courts. About $24 million of the $59 million in federal grants will be awarded to 50 cities, counties and public health departments to provide financial and technical assistance to state, local and tribal governments to create comprehensive diversion and alternatives to incarceration for those impacted by the opioid epidemic. These funds, awarded under the Office of Justice Programs’ Bureau of Justice Assistance’s Comprehensive Opioid Abuse Program, also included funds from the Harold Rogers Prescription Drug Monitoring Program. An additional $3.1 million will be awarded by the National Institute of Justice for research and evaluation on drugs and crime. The research priorities are heroin and other opioids and synthetic drugs.
The Department is also awarding more than $9.5 million under several Office of Juvenile Justice and Delinquency Prevention grant programs, including the Juvenile Drug Treatment Court Grant Program and the Family Drug Court Statewide System Reform Implementation Program. These programs help jurisdictions build effective family drug treatment courts and ensure current juvenile drug treatment courts follow established guidelines.
Specific sites and funds awarded can be found online at: go.usa.gov/xRJWE.
“Today, we are facing the deadliest drug crisis in American history,” said Attorney General Jeff Sessions. “These trends are shocking and the numbers tell us a lot, but they aren’t just numbers. They represent moms and dads, brothers and sisters, neighbors and friends. And make no mistake, combatting this poison is a top priority for President Trump and his administration, and you can be sure that we are taking action to address it. Today we are announcing that we will be awarding millions in federal grants to help law enforcement and public health agencies address prescription drug and opioid abuse. This is an urgent problem, and we are making it a top priority.”
“I want to congratulate the Lake Charles District Attorney’s Office for being awarded this grant,” Van Hook stated. “It will be used to improve the lives of those addicted to drugs and will help reduce the demand for illegal drugs in this district. It is with programs like this in conjunction with law enforcement efforts that we can fight the scourge of opioid abuse.”
Finally, read more about the importance of these programs in a new blog by OJP Acting Assistant Attorney General Alan R. Hanson online at go.usa.gov/xRJBp.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Department of Justice Files Statement of Interest in Defense of Campus Free SpeechRead the Press Release
The Department of Justice today filed a Statement of Interest in Uzuegbunam v. Preczewski.
The lawsuit was filed by students at Georgia Gwinnett College to challenge a school policy that limited student expressive activity to two small “free-speech zones” that totaled 0.0015% of the campus. Additionally, these students were required to obtain prior authorization from campus officials, to limit their expressive activity to a specified date and time, and to comply with the Student Code of Conduct’s prohibition of speech that “disturbs the…comfort of person(s).
The Justice Department primarily argues that the plaintiffs’ allegations have adequately represented violations of their First and Fourteenth Amendment rights. The Justice Department argues the college’s speech policies were not content-neutral, established an impermissible heckler’s veto, and were not narrowly tailored to achieve a compelling government interest.
In filing the Statement of Interest, Attorney General Jeff Sessions provided the following statement:
“A national recommitment to free speech on campus and to ensuring First Amendment rights is long overdue. Which is why, starting today, the Department of Justice will do its part in this struggle. We will enforce federal law, defend free speech, and protect students’ free expression.”
Delphos man charged with child pornography crimeRead the Press Release
A Delphos man was charged via criminal information with possession of child pornography, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Vernon Murray, 67, possessed and had access to numerous digital files containing images of children being sexually abused and exploited. This took place between 2009 and 2015, according to the criminal information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being handled by Assistant U.S. Attorney Alissa M. Sterling following an investigation by the FBI.
An information is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Culpeper Man Pleads Guilty to Charges of Commercial Sex with a Minor and Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Fielding Smith Daniel, 53, of Culpeper, Virginia pleaded guilty yesterday to two charges involving the sexual exploitation of children.
According to court documents, in August 2016, Daniel met a young girl on a sugar daddy website. The girl, who was 14 years old, arranged to meet with Daniel for the purpose of having sex for money. Shortly after midnight on August 11, 2016, Daniel picked the girl up from her grandmother’s house in his 2016 BMW and drove her to a Motel 6, where they engaged in sex. Although they had negotiated a rate of $200, Daniel only provided the girl with $100. On August 23, 2016, he again arranged to have sex with the minor girl for $140 and drove her to a different hotel, where they again had intercourse.
In early September 2016, the Stafford County Sheriff’s Office conducted a search of Daniel’s residence in Culpeper, which is in the Western District of Virginia. Law enforcement recovered numerous electronic devices, which were subsequently examined. In addition to evidence of conversations with the 14-year-old girl, hundreds of sexually explicit online communications with women were recovered. Among those chats were two 2016 conversations involving girls who indicated to Daniel that they were minors and in high school. One of those girls, who was 17 at the time, produced pictures and videos of child pornography at Daniel’s request and sent them to his online account. These pictures and videos were recovered from at least one of Daniel’s electronic devices.
Daniel entered guilty pleas to both commercial sex with a minor and causing a minor to produce child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the pleas were accepted by U.S. District Judge Liam O’Grady. Daniel will be sentenced on January 19, 2018 in Alexandria by U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorneys Jay V. Prabhu and Whitney Dougherty Russell are prosecuting the case.
Significant support for the investigation was received from the Stafford County Commonwealth’s Attorney’s Office; the Stafford County Sheriff’s Office; and the U.S. Attorney’s Offices for the Western District of Virginia, the Eastern District of New York, and the Eastern District of Pennsylvania.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-110 and 1:17-mj-145.
Convicted Felon Pleads Guilty to Gun Charges in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Bobby Joe Drakeford, JR., age 27, of Wallace, SC, pled guilty in federal court in Florence, to Felon in Possession of a Firearm, a violation of Title 18, United States Code, Section 922(g) and 924(a)(2). United States District Judge Bryan Harwell of Florence accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on January 5, 2017, deputies with the Chesterfield County Sheriff’s Office observed a vehicle that matched the description of a vehicle involved in an attempted sale of suspected stolen firearms. After deputies attempted to make a stop on the vehicle, Drakeford, who was driving the vehicle, failed to stop, and a vehicle chase ensued. During the vehicle chase, Drakeford ran a stop sign, slammed the driver side of his car into the passenger side of a deputy’s patrol vehicle, struck a metal light pole, and caused his vehicle to roll into a parked car after exiting the vehicle and fleeing on foot. During the foot chase, a deputy observed Drakeford throw a small pistol over a fence and then climb over the fence. Eventually, Drakeford succumbed to verbal commands to stop, and deputies were able to detain Drakeford and recover the pistol he had thrown over the fence. The evidence presented also established that prior to his possession of the firearm, Drakeford had been convicted of a crime punishable by imprisonment for a term exceeding one year.
Ms. Drake stated the maximum penalty Defendant can receive is a fine of $250,000 and/or ten years imprisonment.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chesterfield County Sheriff’s Office, and the Cheraw Police Department. Assistant United States Attorney Lauren Hummel of the Florence office handled the case.
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Connecticut Man Charged with Defrauding Overseas Private Investment Corporation of over $1 MillionRead the Press Release
CAMDEN, N.J. – A Bridgeport, Connecticut, man was arrested this morning on charges that he and others defrauded the Overseas Private Investment Corporation (OPIC) of over $1 million and laundered most of the funds through various bank accounts in Liberia and the United States, Acting U.S. Attorney William E. Fitzpatrick announced.
William Garrison Jackson, 55, is charged by criminal complaint with one count of conspiracy to commit mail and wire fraud and one count of conspiracy to commit money laundering. Jackson appeared this morning before U.S. Magistrate Judge William I. Garfinkel in Bridgeport federal court and was released on $100,000 secured bond. He will make his initial appearance in New Jersey federal court on Oct. 4, 2017.
According to the complaint:
OPIC is a U.S. government agency that provides loans to U.S.-based companies in order to encourage investment in overseas business projects. To qualify for a loan, the U.S. business, also called the “U.S. Sponsor,” has to own at least 25 percent of the overseas project.
In 2010, Jackson, along with two other people identified in the complaint as “Individual 1” and “Individual 2,” formed a limited liability company in New Jersey called NuStrata Logistics LLC (NSL-US). NSL-US was the “parent company” of NuStrata Logistics Liberia Inc. (NSL-L), a licensed and registered Liberian company. For the purposes of the OPIC loan, NSL-US was the U.S. sponsor of NSL-L.
NSL-US and NSL-L were created to operate an urban public transportation bus service in Liberia, branded “The Lizard Bus.” In 2010, Jackson, Individual 1, and Individual 2 established a pilot program in order to measure The Lizard Bus’s potential in the Monrovia, Liberia, market.
To obtain a loan from OPIC, Jackson and Individual 1 submitted documents to OPIC with materially fraudulent representations, including false financial documents that over-inflated their assets and claimed that NSL-US’s investors, along with the principals, had a combined liquid net worth of over $2 million, and a fraudulent disbursement request advising OPIC that NSL-L would use $560,000 to pay for the purchase of buses and transshipping costs.
On Sept. 4, 2013, based on the false representations by Jackson and his conspirators, OPIC made a loan disbursement of $1,059,266 by international wire transfer to NSL-L’s Ecobank bank account in Liberia. However, on Sept. 6, 2013, Jackson and Individual 1 had $700,000 wired from NSL-L’s account to NSL-US’s Bank of America account in the United States. That money was then transferred to another bank account and ultimately dispersed to Jackson, Individual 1 and their families in violation of the OPIC loan agreement.
Meanwhile, NSL-L made one interest payment to OPIC in January 2014 and subsequently defaulted on the loan. The Lizard Bus ceased operations in April 2014 due, in part, to lack of funds.
The conspiracy to commit mail and wire fraud charge carries a maximum potential penalty of 20 years in prison and $250,000 fine. The money laundering conspiracy charge carries a maximum potential penalty of 20 years in prison and $500,000 fine.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Agency for International Development (USAID), Office of Inspector General, under the direction of Special Agent in Charge Jonathan Schofield, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Debra Parker in Newark, IRS- Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the Federal Deposit Insurance Corporation (FDIC), Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca with the investigation leading to the charges.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden.
City of Atlanta’s former Chief Procurement Officer Adam Smith pleads guilty to taking bribesRead the Press Release
ATLANTA - Adam L. Smith, the former Chief Procurement Officer for the City of Atlanta, has pleaded guilty to conspiring to accept more than $30,000 in bribe payments from a vendor who obtained millions of dollars in city contracts.
“Great trust was placed in Smith as Chief Procurement Officer for the City of Atlanta, and he abused his position to serve his own financial interests,” said U.S. Attorney John A. Horn. “Public corruption offenses, like Smith’s, can erode the confidence that the people have in government.”
“The guilty plea in federal court of former City of Atlanta Procurement Officer Adams will ensure that he is held accountable for his greed based criminal conduct as he now awaits sentencing. It is hoped that this case serves as notice to others that similar such conduct among public officials will not be condoned and that there are severe consequences should that notice go unheeded,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“Public service is a public trust, requiring employees to obey laws and ethical principles above private gain. Smith abused his public trust to enrich himself at a cost to the taxpayers,” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “We will continue to work with the FBI and U.S. Attorney’s Office in making these public corruption investigations a priority.”
According to U.S. Attorney Horn, the charges and other information presented in court: From 2003 to February 21, 2017, Smith served as the Chief Procurement Officer for the City of Atlanta, Georgia. As the Chief Procurement Officer, Smith oversaw the City of Atlanta’s purchasing activities and its expenditure of billions of dollars in public money for projects.
The information refers to a vendor who was an executive with a construction firm in Atlanta, Georgia, but does not identify them by name. During Smith’s tenure as the Chief Procurement Officer, Atlanta awarded contracts worth millions of dollars to Vendor’s firm and joint venture projects of which Vendor was a partner.
From at least 2015 to January 2017, Smith met privately with Vendor on multiple occasions, frequently at local restaurants. During these meetings, Smith and Vendor discussed Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Vendor was actively seeking contracts, projects, and work with Atlanta.
After most of these meetings, Vendor and Smith met in the restaurant’s bathroom, where Vendor paid Smith approximately $1,000 in cash. In return for the bribe payments, Vendor expected Smith to use his position and power as Atlanta’s Chief Procurement Officer to assist Vendor with contracting/procurement with Atlanta and to furnish Vendor with future benefits and favors when needed.
Given his position, Smith was required to sign annually a financial disclosure statement certifying that he had not received more than $5,000 in annual income from any corporation, partnership, proprietorship, or other business entity other than Atlanta. Additionally, under Atlanta’s Procurement Code, Smith also had to “make a written determination as to the existence” of any “personal or organizational conflicts of interest exist” between vendors and Atlanta before awarding a vendor a solicited contract. Similarly, Atlanta’s Procurement Code mandated that Smith “certify to the city council” that the winning vendors had disclosed to Atlanta any “organizational and personal relationships” and that the “award of the contract [was] appropriate.”
Furthermore, in exchange for those cash payments:
- Smith met with Vendor on a regular basis;
- Smith provided Vendor with information and counsel regarding Atlanta’s procurement processes (among other information);
- When Vendor’s firm or joint venture became the successful bidder on an Atlanta contract or Request for Proposal, Smith approved and submitted the award of such procurement projects or bids to Atlanta’s mayor and city council for final authorization;
- Smith never disclosed his ongoing financial relationship with Vendor and/or Vendor’s firm on his Financial Disclosure Statements to Atlanta; and
- Smith never advised Atlanta’s City Council that the Vendor’s firm or joint venture had failed to disclose its organizational and personal relationships with him.
In total, from at least 2015 to January 2017, Vendor paid Smith more than $30,000 in cash.
Adam L. Smith, 53, Atlanta, Georgia, pleaded guilty to conspiratorial bribery. Sentencing is scheduled for January 16, 2018, before U.S. District Judge Steve C. Jones.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis, Kurt R. Erskine, and Jill E. Steinberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cherry Creek Woman Found Guilty of Concealing Person from ArrestRead the Press Release
United States Attorney Randolph J. Seiler announced that a Cherry Creek, South Dakota, woman was found guilty of Concealing a Person from Arrest by a federal jury in Pierre, South Dakota, on September 14, 2017. A Cherry Creek, South Dakota, man was acquitted of the same charge.
September Waloke, age 51, and Everett Condon, age 55, were indicted by a federal grand jury on November 9, 2016. The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stemmed from a series of events that occurred between October 19, 2016, and October 20, 2016, at which time Tyson LeCompte, a/k/a Tyson Garreaux, had an active warrant out for his arrest. The jury found that Waloke harbored and concealed LaCompte during the time period so as to prevent his discovery and arrest. The jury acquitted Condon of the charges.
The investigation was conducted by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case. Waloke was released on conditions pending sentencing, the date of which has not been set.
Cheektowaga Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jason Yelder, 35, of Cheektowaga, NY, who was convicted of conspiracy to possess with intent to distribute five grams or more of methamphetamine, was sentenced to 20 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on March 20, 2016, Yelder was arrested for driving with a suspended license. His vehicle was searched by Hamburg Police and more than 23 grams of methamphetamine, a digital scale, and large amounts of U.S. currency were seized. Yelder was advised of his rights, waived his rights, and admitted to police that he was going to sell the methamphetamine to another co-coonspirator.
The sentencing is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett; the Amherst Police Department, under the direction of Chief John Askey; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Blasdell Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jose Cisneros, 31, of Blasdell, NY, who was convicted of possession of child pornography, was sentenced to 108 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in August 2015, the Blasdell Police Department alerted the FBI about a 13 year-old female engaging in sexually explicit conversations using the Kik application and text messages with an individual later identified as Cisneros. During their communications, the defendant and the girl exchanged graphic photos.
During an interview with the FBI, the mother of Cisneros’s two children told agents that she found a phone belonging to the defendant, which contained a sexual text conversation. The woman confronted Cisneros, which resulted in an argument that led to police responding to the residence.
The sentencing is the culmination of an investigation by Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, and the Blasdell Police Department, under the direction of Lieutenant Joseph Gramaglia.
Battle Creek Man Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Matthew John Andaluz, 44, of Battle Creek, Michigan was sentenced to 30 years in federal prison for producing child pornography, Acting U.S. Attorney Andrew Birge announced today. In addition to the prison term, Chief U.S. District Judge Robert J. Jonker imposed a 10-year term of supervised release that will commence once Andaluz is released from imprisonment. Andaluz will also be required to register as a sexual offender.
Andaluz pled guilty on June 7, 2017, and admitted that he had taken pornographic photographs of a ten-year-old child at his home in Calhoun County. He then circulated the images to others on the Internet. Copies of these images have been found in numerous other state and federal investigations throughout the United States. Federal agents traced these images back to Andaluz’s home late last year. Andaluz sexually abused the child repeatedly over a three-year period, created pictures of the abuse, and then distributed the pictures to others. The victim spoke at sentencing. She described the utter devastation that Andaluz caused to her life. She felt that she lost everything: her childhood, loved ones, and her home. She expressed her extraordinary pain, uncertainty, and anguish. The victim feared that she might never graduate from high school or ever be happy.
In its sentencing memorandum, the U.S. Attorney’s Office argued in favor of the thirty-year sentence. "Children are amongst the most vulnerable of victims, and [the victim in this case] was particularly vulnerable to the defendant . . . . The child will bear the emotional and psychological scars from the defendant’s abuse and exploitation her entire life. A 30-year sentence is needed to reflect the gravity and seriousness of the defendant’s crimes, to promote respect for the law, and to justly punish the defendant."
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
END
Barnstable Man Sentenced for Illegally Possessing a FirearmRead the Press Release
BOSTON – A Barnstable man was sentenced today in federal court in Boston for illegally possessing a firearm.
Matthew Monroe, 27, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to two years in prison and three years of supervised release. In October 2016, Monroe pleaded guilty to one count of being a felon in possession of a firearm.
On March 11, 2016, Monroe sold an IMI Uzi Model A, semi-automatic rifle to a cooperating witness for $800 at a hotel in Hyannis. The transaction was recorded by law enforcement. Monroe was convicted of breaking and entering in 2013, and was therefore prohibited from possessing a firearm in 2016.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Criminal Division prosecuted the case.
Allentown Man Charged in Aiding the Preparation of False Tax ReturnsRead the Press Release
Jose Frias, 57, of Allentown, PA was charged today by Indictment with conspiracy to defraud the United States and with aiding in the preparation of false tax returns, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 32 years’ incarceration, $2,500,000 fine, 3 years of supervised release, and a special assessment of $1,000, plus restitution and forfeiture.
The case was investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Nancy Rue.
17 1/2 Year Sentence Imposed on Leader of Mexico-Based Heroin RingRead the Press Release
Jorge Andres Lopez Montiel a/k/a Arturo Jiminez-Lopez a/k/a “Jimmy”, 27, of Nashville, Tenn. and Nayarit, Mexico, a Mexican citizen who had been previously deported from the United States, was sentenced to 17 ½ years in prison for leading a heroin-trafficking conspiracy from Mexico, announced Donald Q. Cochran, United States Attorney for the Middle District of Tennessee.
“This prison sentence reflects the commitment of our prosecutors and our law enforcement partners in bringing major drug traffickers to justice,” said U.S. Attorney Cochran. “The U.S. Attorney’s Office and our law enforcement partners will aggressively investigate and prosecute those whose illegal drug trafficking continues to fuel the opioid epidemic facing this nation.”
Montiel pleaded guilty in May 2017 to possessing heroin with intent to distribute and conspiring to distribute heroin and methamphetamine. According to court documents, Montiel was arrested in September 2009 and was in possession of approximately one-half pound of heroin, a firearm and approximately $20,000 in cash. He was indicted by a federal grand jury in October 2009 but was deported to Mexico before he could be taken into federal custody on these charges. After Montiel was deported to Mexico, he continued to distribute heroin and later methamphetamine, through a network of distributors acting at his direction, who transferred the proceeds of the drug sales to Mexico, often through wire transfers.
Beginning in mid-2013, the Specialized Investigations Division of the Metropolitan Nashville Police Department used undercover officers and confidential informants to repeatedly order heroin from Montiel through calls to Mexico. Montiel sent various co-conspirators to deliver the heroin and the transactions often occurred in restrooms at retail stores. As a result of this investigations, 22 persons were arrested on local charges, and approximately 14 pounds of heroin and one and one-half pounds of methamphetamine was seized.
On March 31, 2015, a confidential informant obtained about one pound of high-purity methamphetamine through contact with Montiel. MNPD officers then obtained a search warrant to search the residence where that transaction occurred. Officers executed the search warrant on April 1, 2015, and were met by gunfire as they entered the residence. Matthew McKervey, 26, of Nashville, was charged with firearm and drug offenses and is currently awaiting trial.
Montiel was arrested on May 30, 2016, as he illegally re-entered the United States from Mexico, and eventually pleaded guilty to the drug trafficking offenses in this case.
In addition to Montiel, four others were charged with federal offenses; Matthew McKervey, 28; Brian Goforth, 44; Daniel Alcala, 29; and David Becerra-Ruiz, 42, all of Nashville. Goforth’s case is pending and Becerra-Ruiz was recently sentenced to 10 years in prison. Matthew McKervey and Daniel Alcala are pending trial on federal charges and are presumed innocent until proven guilty in a court of law.
This case was investigated by the Metropolitan Nashville Police Department – Specialized Investigations Division and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
25 September 2017
York Man Sentenced to 57 Months’ Imprisonment for Armed Bank RobberyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ryan Warnick, age 37, of York, Pennsylvania, was sentenced on September 19, 2017, to 57 months’ imprisonment by United States District Court Judge William J. Caldwell for his part in the armed robbery of PNC Bank.
According to United States Attorney Bruce D. Brandler, Warnick assisted his accomplice, Derek Bowman, age, 33, of York, in the armed robbery of PNC Bank, East Market Street, York, on January 9, 2016. Warnick drove Bowman to the PNC Bank where Bowman entered the bank with a sawed-off shotgun, pointed the shotgun at a bank employee, and demanded money from her drawer. Bowman stole approximately $3,000, and fled the scene in Warnick’s vehicle. Bowman was arrested by Pennsylvania State Police the next day and was found to be in possession of money and heroin. The shotgun was later recovered by Springettsbury Township Police in Warnick’s possession.
Judge Caldwell sentenced Bowman to 141 months’ imprisonment on February 15, 2017.
This matter was investigated by the Springettsbury Township Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Chelsea Schinnour prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Washington Man Charged with Illegally Possessing Firearm and AmmunitionRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of unlawfully possessing a firearm and ammunition, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on September 19, named James Roosevelt Leach, 45, of Washington, Pennsylvania.
According to the indictment presented to the court, on or about December 14, 2016, Leach, a felon previously convicted of rape, robbery and aggravated assault in Washington County, Pennsylvania, unlawfully possessed a firearm and ammunition. Federal law prohibits an individual with a felony conviction from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort between federal, state and local law enforcement agencies, prosecutors, and communities to prevent, deter and prosecute gun crime. Troopers from the Pennsylvania State Police conducted the investigation that led to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Utah Chiropractor Sentenced to Prison for Tax Evasion and Obstructing the IRSRead the Press Release
An Orem, Utah former chiropractor, who also owned a health care products business, was sentenced to 33 months in prison for tax evasion and corruptly endeavoring to obstruct the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
Louis Hansen, 65, was convicted following a jury trial in July. According to documents submitted to the court and evidence presented at trial, Hansen attempted to evade the payment of his federal income taxes for the years 2005, 2006, 2007 and 2010. For the years 2005, 2006 and 2010, Hansen filed a tax return reporting that he owed taxes, but did not fully pay the amounts due. For 2007, Hansen’s return was audited and additional taxes assessed. In March 2012, Hansen sent a check to the Internal Revenue Service (IRS) in the amount of $342,699 that was drawn on a closed bank account held in the name of another individual, and claimed that the check paid off his tax debt. Hansen then sent a signed letter to the revenue officer assigned to collect his unpaid taxes, claiming that he had paid the taxes owed. A few months later, Hansen sent 10 additional checks all in the amount of $425,000, to at least six IRS locations, all drawn on another closed account in the name of a different individual, claiming to pay the back taxes due.
In addition to the term of prison imposed, U.S. District Court Judge Clark Waddoups sentenced Hansen to serve three years of supervised release and to pay restitution to the IRS in the amount of $342,699.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Kevin L. Sundwall and Assistant Chief Andrew Kameros of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Undocumented Alien Residing in Houston Sentenced to 50 Years in Federal Prison in Liquid Meth CaseRead the Press Release
In Del Rio today, United States District Judge Alia Moses sentenced 33–year-old Adrian Pineda-Orozco, an undocumented alien residing in Houston, to 50 years in federal prison for his role in scheme to smuggle over 43 kilograms of liquid methamphetamine into the United States announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
On January 20, 2017, jurors convicted Pineda-Orozco of one count of conspiracy to possess with intent to distribute methamphetamine and one count of conspiracy to import methamphetamine. Prior to trial, Pineda-Orozco’s co-defendants, 21-year-old Marcelo Guzman and 22–year-old Cyndy Palma, both of Houston, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine.
Testimony during trial revealed that the defendant orchestrated a statewide methamphetamine importation and distribution scheme, with prior deliveries to Houston and Dallas. On December 18, 2015, Customs and Border Protection officers at the Eagle Pass Port of Entry discovered 15 plastic bottles containing liquid methamphetamine inside a vehicle being driven by Guzman and Palma. Guzman told officers that he was supposed to deliver the methamphetamine to an individual in Houston. HSI agents executed a controlled delivery of the methamphetamine. Upon arriving at the meeting location, authorities discovered Pineda-Orozco waiting for them. After the agents identified themselves, Pineda-Orozco got back into his vehicle and fled the scene narrowly missing an HSI agent in the process. Pineda-Orozco led authorities on a high-speed chase through residential neighborhoods. The pursuit continued until spike strips disabled his vehicle. No one was injured as a result of the pursuit. Pineda-Orozco was arrested.
Pineda-Orozco has remained in custody since his arrest. Guzman and Palma also remain in federal custody. On July 10, 2017, Judge Moses sentenced Guzman to 144 months in federal prison following by five years of supervised release. On June 5, 2017, Judge Moses sentenced Palma to 168 months in federal prison followed by five years of supervised release and ordered that Palma pay a $1,500 fine.
“The heavy sentenced imposed on Orozco sends a clear message that there are serious consequences for trafficking in narcotics,” said Special Agent in Charge Shane Folden, HSI San Antonio. “HSI will continue to work closely with its law enforcement partners to bring narcotic traffickers to justice.”
The investigation was conducted by HSI together with U.S. Customs and Border Protection, Drug Enforcement Administration, and the Houston Police Department. Assistant United States Attorneys Paul Harle and Amy Hail prosecuted this case on behalf of the government.
U.S. Attorney Charges Pharmacy Tech for Tampering with OpioidsRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office today charged the former lead technician at a central Alabama pharmacy with tampering with vials of opioid painkillers used in the compounding of intravenous fluid bags intended for hospice and homecare patients. U.S. Attorney Jay E. Town, Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton and Food and Drug Administration, Office of Criminal Investigations, Special Agent in Charge Justin D. Green announced the charge.
Prosecutors filed a one-count information charging JOHNATHON WILLIAM CLICK with tampering with consumer products in reckless disregard for the risk that another person would be placed in danger of death or bodily injury, and under circumstances manifesting extreme indifference to that risk. Between December 2014 and September 2016, Click, 30, of Bessemer, removed morphine sulfate and hydromorphone hydrochloride from vials intended for use in mixing IV bags. Click replaced the drugs with another liquid, knowing the diluted vials would be dispensed to patients, according to the charge.
In conjunction with the information, prosecutors also filed a plea agreement with Click in U.S. District Court. According to the plea agreement, Click worked at Birmingham-based ContinuumRx of Central Alabama. CRX primarily distributes IV bags containing morphine and hydromorphone for palliative care. Click, as the lead pharmacy technician, prepared the vast majority of CRX’s IV bags until the company ended his employment in September 2016.
“This defendant was willing to subject terminal cancer patients to intolerable pain in order to feed his own addiction,” Town said. “This is one more aspect of the epidemic problem America has with abuse of prescription opioids. It also is a testament to law enforcement’s commitment to fight the illegal diversion of these drugs. In this case, people who desperately needed the prescribed drugs for their intended purpose of controlling intense and prolonged pain instead suffered at the hands of a man who knew the misery he could cause.
“It is disappointing when assumed professionals, like pharmacy technicians, are engaged in the diversion of controlled substances,” Hamilton said. “Anyone who can deliberately deny medication to legitimate patients and violate their duties as a professional will be held accountable for allowing these good medicines to get into the wrong hands. The charge and plea agreement in this case are the result of DEA’s continued commitment to work with our law enforcement partners and hold accountable those who participate in illegally diverting controlled substances in our communities,” Hamilton said.
“FDA is fully committed to the vigorous criminal investigation and prosecution of any individual who threatens the safety and security of the U.S. drug supply,” Green said. “The plea agreement in this case sends a clear signal that this kind of illicit tampering activity will not be tolerated.”
According to the plea agreement, Click diverted quantities of morphine and hydromorphone from CRX’s locked inventory by surreptitiously removing vials, withdrawing drugs from the vials and replacing the withdrawn amount with saline or sterile water. He subsequently would return the adulterated and diluted vials to the inventory, undetected, and later used those vials to compound IV bags that were distributed and administered to homecare and hospice patients. CRX’s primary customers are Alacare Home Health & Hospice, New Beacon Hospice, Lakeview Homecare & Hospice, Comfort Care Hospice and Kindred Hospice.
Former patients or family members of patients treated at any of those homecare or hospice providers between December 2014 and September 2016 may receive updates on the case by visiting the U.S. Attorney’s Office website at http://www.justice.gov/usao-ndal/us-v-johnathon-william-click or calling the toll-free number: 1-866-480-8230.
The maximum penalty for tampering with consumer products is 10 years in prison and a $250,000 fine. Click must appear before a federal judge to formally enter a guilty plea.
DEA, FDA and the Alabama Board of Pharmacy investigated the case, which Assistant U.S. Attorney Mohammad Khatib is prosecuting.
Two Pharmaceutical Employees Admit Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Two Burlington County, New Jersey, men today admitted defrauding New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
Judd Holt, 42, a pharmaceutical sales representative from Marlton, New Jersey, and George Gavras, 36, a pharmaceutical sales representative from Moorestown, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Holt and Gavras served as recruiters in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the informations as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
The conspirators recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Holt and Gavras’ conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to other members of the conspiracy.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, Holt and Gavras would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They would select the compounded medications that paid the most without regard to their medical necessity.
Holt and Gavras would then get the prescriptions signed by doctors and other qualified health professionals who never saw the patients or evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the informations, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
As part of the plea agreements, Holt must forfeit $95,574.49 in criminal proceeds he received for his role in the scheme and pay restitution of at least $769,762.53. Gavras agreed to forfeit $204,002.02 and pay restitution of at least $679,368.53.
Each defendant faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Jan. 5, 2018.
Six other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, and John Gaffney – pleaded guilty in August and September 2017 and await sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to the guilty pleas. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel:
Holt: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey
Gavras: Robert N. Agre Esq., Haddonfield, New JerseyTwo Men Charged with Stealing 36 Firearms from Anchorage Gun DealerRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that two men have been charged with stealing 36 firearms from an Anchorage gun dealer, EDC Alaska, during a Sept. 7, 2017, burglary on Northern Lights Blvd. that was captured on multiple surveillance systems.
Seth Kaufman, 31, and Christopher Kratsas-Derr, 27, are charged with theft of firearms from a licensed dealer. Kaufman is also charged with possessing some of the stolen firearms a few days later, on Sept. 11, 2017.
A complaint filed in the case alleges that police received a report of a burglary of EDC Alaska at 6:51 AM on Sept. 7, 2017. Thirty-six firearms had been stolen by two individuals who backed up a black pickup in front of the business, made entry, and left with three dozen guns. Surveillance video showed that one of the burglars was wearing grey/black shoes with white trim, while the other wore grey sweatpants and brown ankle boots with white trim.
EDC Alaska’s owners recalled a suspicious customer from days before. After reviewing the video of that interaction, police were able to identify the suspicious customer as Kaufman.
According to the complaint affidavit, police subsequently received a tip indicating that Kaufman and “Chris” committed the burglary, and that they had subsequently offered the guns for sale while staying at Microtel. Review of prior arrest information revealed that Kaufman and Christopher Kratsas-Derr were arrested together for a different theft crime on June 2, 2017, yet neither was in custody during the Sept. 11, 2017, burglary of EDC Alaska.
The complaints against Kaufman and Kratsas-Derr also note that on Sept. 11, 2017, APD officers made contact with Kaufman at Motel 6 in Anchorage. Kaufman was apprehended after fleeing out the second story window of room 209. Near that same window, law enforcement agents found four of the firearms stolen from EDC Alaska, along with grey/black shoes with white bottom trim.
Law enforcement officers also reviewed surveillance footage from Microtel, which showed an individual wearing grey sweatpants and brown ankle boots with white trim. That individual was subsequently identified as Christopher Kratsas-Derr.
Both Kaufman and Kratsas-Derr have been arrested and were initially charged with multiple crimes by the State of Alaska. Kratsas-Derr’s arraignment on the federal indictment is set for 9:30 AM on Tuesday, Sept. 26, 2017, while Kaufman’s is set for 11:30 AM the same day.
The law provides for a maximum sentence of 10 years in prison and a fine of up to $250,000 for the charges listed in the complaint. Additionally, defendants can also be required to pay restitution to the victims in this case. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation that led to the charges in this case.
ATF advises that most of the firearms stolen from EDC Alaska have not been recovered. Anyone with information regarding the whereabouts of the remaining firearms are encouraged to call 1-888-ATF-TIPS.
Charges contained in a complaint or indictment are merely allegations. Every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Topeka Man Sentenced in RobberyRead the Press Release
WICHITA, KAN. - A Topeka man who took part in a robbery while wearing a monitoring device was sentenced Monday to 36 months in federal prison, U.S. Attorney Tom Beall said.
Christopher Allen Bush, 26, Topeka, Kan., pleaded guilty to one count of aiding and abetting a commercial robbery. In his plea, Bush admitted he picked up co-defendant Marsoleno Devon Ryland after Ryland robbed Casey’s General Store at 600 S.E. Rice Road.
At the time of the robbery, Bush was wearing a monitoring device because he was on post-release supervision in a criminal case in state district court. Data from the GPS device verified that Bush picked up Ryland just south of Casey’s General Store and drove him to the 2300 block S.E. Bellview, where police located the two men shortly after the robbery.
Co-defendant Ryland is set for sentencing Oct. 23.
Beall commended the FBI, the Topeka Police Department and Assistant U.S. Attorney Jared Maag for their work on the case.
Third Bandido Pleads Guilty to Federal Charge in Connection with the Murder of Hells Angel Anthony Benesh in 2006Read the Press Release
In San Antonio today, 40-year-old Bandidos Outlaw Motorcycle Organization (OMO) San Antonio Centro Chapter Sergeant at Arms Jesse James Benavidez pleaded guilty to a federal charge in connection with the murder of Hells Angel Anthony Benesh in 2006 announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Austin Police Chief Brian Manley; and, San Antonio Police Chief William McManus.
Appearing before United States Magistrate Judge Elizabeth S. Chestney, Benavidez pleaded guilty to one count of Aiding and Abetting Using and Discharging a Firearm During and In Relation to a Crime of Violence, specifically Murder in Aid of Racketeering.
Court records allege that Benesh was attempting to start a Texas Chapter of the Hell’s Angels OMO in Austin, Texas in 2006. Members of the Bandidos OMO warned Benesh to cease his activities and recruitment, which Benesh ignored. Benavidez and others then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise. On Friday, September 22, 2017, Bandidos National Sergeant at Arms Johnny Romo and Bandidos Centro Chapter Member Robert Romo pleaded guilty to related federal charges for their roles in the incident.
Benavidez, who remains in federal custody, faces up to life in federal prison. Sentencing is scheduled for May 28, 2018, before Senior U.S. District Judge David A. Ezra in San Antonio. Johnny Romo and Robert Romo also remain in federal custody. Their sentencings are scheduled for May 14, 2018, and May 21, 2018, respectively, before Judge Ezra.
The FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office are conducting this ongoing investigation.
Texas man admits to firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA - A Houston, Texas man has admitted to an illegal firearm charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Corey Letroit Joseph Riggs, age 40, pled guilty today to one count of “Unlawful Possession of a Firearm.” Riggs, who was previously convicted of felonies in the Circuit Court of Harris County, Texas, was in possession of .40 caliber Glock pistol. The crime occurred April 2017 in Ohio County.
He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.