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22 September 2017
Drug Maker Aegerion Agrees to Plead Guilty and Pay $35 Million to Resolve Criminal Charges and False Claims Act AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that Aegerion Pharmaceuticals, Inc, a Cambridge, Massachusetts-based subsidiary of Novelion Therapeutics Inc., has agreed to pay over $35 million to resolve criminal and civil charges relating to its marketing of Juxtapid, a drug that is labeled with a warning that it may cause serious liver and stomach problems and that is approved to treat high cholesterol only for patients with a rare genetic disease called homozygous familial hypercholesterolemia (HoFH).
“Aegerion put profits over patient safety and enriched itself at taxpayer expense,” said Acting U.S. Attorney William D. Weinreb. “Our Office is committed to protecting patient safety and the integrity of federal health care programs, and we will continue to use our criminal and civil authority to ensure that drug companies play by the rules that protect the public, ensure quality of care, and preserve patient privacy.”
“Today’s settlement shows that the government will continue to hold accountable drug companies that violate laws designed to protect the health and safety of patients,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “Aegerion has agreed to plead guilty to breaking the law. The Justice Department will continue to ensure that taxpayers do not foot the bill when such conduct occurs.”
In a criminal Information filed today, the United States charged that, from December 2012 to December 2015, Aegerion violated the Federal Food, Drug, and Cosmetic Act in connection with its sale and promotion of the drug Juxtapid. Aegerion management and sales personnel distributed Juxtapid not only for the treatment of HoFH, but also as a treatment for high cholesterol generally, without adequate directions for such use. Furthermore, even though the FDA had approved Juxtapid subject to a Risk Evaluation Mitigation Strategy (REMS) to ensure that prescribers were informed of the drug’s risks and that Juxtapid was prescribed only for patients with a clinical or laboratory diagnosis consistent with HoFH, the Information alleges that, during the relevant time period, Aegerion failed to give health care providers complete and accurate information about the clinical diagnosis of HoFH, therefore failing to comply with the required elements under the REMS to assure safe use of Juxtapid. Under the terms of a plea agreement, Aegerion has agreed to plead guilty to these charges and to pay a criminal fine and forfeiture of $7.2 million.
Today’s resolution includes a deferred prosecution agreement to resolve a felony charge that Aegerion conspired to violate the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Under the terms of the deferred prosecution agreement, Aegerion admitted to facts demonstrating that the company conspired with its sales employees, including senior managers, to obtain patients’ personally identifiable health information, without patient authorization, for commercial gain. Aegerion has agreed to implement enhanced compliance provisions, including periodic certifications to the government concerning its implementation of those provisions.
Under the terms of a civil False Claims Act settlement, Aegerion will pay $28.8 million over three years to resolve allegations that: Aegerion distributed Juxtapid for patients without a diagnosis of, or consistent with, HoFH; Aegerion employees, including senior managers, made false and misleading statements to doctors that the use of Juxtapid was appropriate in patients with high cholesterol, irrespective of whether such patients had a diagnosis of HoFH and despite counter-indications to a diagnosis of HoFH; Aegerion employees at times altered or falsified statements of medical necessity and prior authorizations that were submitted to federal health care programs; and Aegerion defrayed patients’ copayment obligations for Juxtapid, in violation of the Anti-Kickback Statute, by funneling funds through Patient Services, Inc., an entity that promoted its ability to create a “reimbursement vehicle” for Aegerion from patients who otherwise would have received free drug.
As part of the resolution, Aegerion has also agreed to enter into a separate civil consent decree with the FDA to resolve civil liability under the FDCA for its distribution of Juxtapid that was misbranded because Aegerion failed to comply with the requirements of the Juxtapid REMS program and because Juxtapid’s labeling lacked adequate directions for all of Juxtapid’s intended uses.. Aegerion also entered into a Corporate Integrity Agreement (CIA) with the Office of Inspector General of the Department of Health and Human Services. The five-year CIA requires, among other things, that Aegerion implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization and compliance-related certifications from company executives and Board members.
“Today’s settlement with Aegerion shows how the government will hold the pharmaceutical industry accountable for violating important FDA and privacy rules that are intended to keep patients safe and ensure the confidentiality of their information,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI will continue to investigate companies like Aegerion that profit from exploiting patients who are searching for treatments to serious medical conditions.”
“Today’s agreement demonstrates that we will not allow pharmaceutical manufacturers to provide the medical community with false and incomplete information about their products, thereby jeopardizing the health and safety of our citizens,” said Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “Nor will we allow corporations to profit at the expense of patient care and their personal information.”
“Our corporate integrity agreement increases individual accountability for board members and company executives and it requires Aegerion to strengthen controls around promotional activities and other interactions with health care providers,” said Gregory E. Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “Importantly, the CIA also requires that Aegerion implement controls and monitoring designed to ensure true independence from any charity patient assistance programs to which it donates in the future.”
“We sometimes require companies to put in place certain measures to more closely manage a drug’s risks when we don’t believe a medicine’s benefits would outweigh its side effects without these risk mitigation strategies. This might include requiring prescribers to undergo certain training on a drug’s risks, or having providers take steps to more closely monitor patients,” said FDA Commissioner Scott Gottlieb, M.D. “By failing to follow the safety requirements that Aegerion had agreed to, the company put patients’ lives at risk and didn’t honor the safety commitments they made as a condition of gaining approval for their drug. This is unacceptable. We will continue to pursue those who skirt the law, and flout safety patient and other post-market commitments, using all of the enforcement tools available to us. Post-market safety requirements are a key element of FDA’s public health protections and we will ensure that they are fulfilled.”
“By failing to comply with all requirements of FDA’s approval of Juxtapid, including its Risk Evaluation and Mitigation Strategy, Aegerion subjected patients to unnecessary risk” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office. “When a company subverts FDA’s approval conditions, we will pursue and bring them to justice in order to fulfill our mission of protecting the public health.”
“EBSA is very pleased to have had the opportunity to work collaboratively with our law enforcement partners on this important investigation,” said Susan A. Hensley, Regional Director, U. S. Dept. of Labor, Employee Benefits Security Administration, Boston Regional Office. “I commend the exceptional work performed by our investigators and their law enforcement partners. This office will continue to vigorously pursue cases where participants and private sector health benefit plans are victimized by unscrupulous and illegal pharmaceutical sales practices.”
The civil settlement resolves a lawsuit filed by Michele Clarke, Tricia Mullins, and Kristi Winger Szudlo, former employees of Aegerion, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. The qui tam suit was filed in the District of Massachusetts and is captioned United States ex rel. Clarke, et al. v. Aegerion Pharmaceuticals, Inc., et al., No. 13-CV-11785 (D. Mass.). Relators will receive $4.7 million from the proceeds of the federal civil settlement.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services’ Office of Inspector General, the Department of Labor’s Employee Benefits Security Administration, and the FDA. This matter was handled by Assistant U.S. Attorneys Kriss Basil, Young Paik, Sara Bloom and Abraham George of Weinreb’s Office and Trial Attorneys Shannon Pedersen and Holly Snow of the Civil Division’s Consumer Protection Branch and Civil Fraud Section, respectively.
Dominican National Charged with Identity TheftRead the Press Release
BOSTON – A Dominican national was charged yesterday in federal court in Boston with identity theft.
Willy Antonio Hernandez Camilo, 33, a Dominican national residing in Lawrence, was indicted on one count of passport fraud, two counts of misuse of a Social Security number, and two counts of aggravated identity theft.
According to the indictment, Hernandez Camilo purported to be a U.S. citizen in 2014 when he applied for a passport at a Methuen post office. On the passport application, Hernandez Camilo represented the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico as his own and supported the application by presenting a birth certificate and Massachusetts driver’s license in the victim’s name. Court documents further allege that Hernandez Camilo misused a Social Security number and committed aggravated identity theft in connection with a Massachusetts driver’s license renewal application that he submitted in 2016.
The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, one year of supervised release, and a fine of up to $250,000. The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised released, and a fine of up to $250,000. The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on 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 Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Sentenced to 40 Years in Prison for 2014 Slaying in Northeast WashingtonRead the Press Release
WASHINGTON – Jonathan Taylor, 26, of Washington, D.C., was sentenced today to 40 years in prison for his role in a shooting that killed one man and wounded another in Northeast Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Taylor was found guilty by a jury in June 2017 of first-degree murder while armed, assault with intent to kill while armed, and two related firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable José M. Lόpez. Following his prison term, Taylor will be placed on five years of supervised release.
According to the government’s evidence, on Aug. 13, 2014, at approximately 9:30 p.m., Taylor and three unidentified associates drove together in a gold Honda Accord, looking to kill their target, 25-year-old Dexter Motley. They found Mr. Motley standing on a corner near the unit block of 46th Place NE, talking casually to his friends and their neighbors. Taylor and his associates then drove around the block and approached Mr. Motley on foot. One of the four men—the triggerman—walked by Mr. Motley, as if walking leisurely down the sidewalk. The triggerman then pulled out a revolver and fired five shots at close range, including a fatal shot into Mr. Motley’s forehead. Another shot hit one of Mr. Motley’s friends. The friend was able to flee into an alley and survived the attack. The defendants fled. Taylor later was linked to the crime through information tying him to the Honda Accord and other evidence.
In a separate case, Taylor is awaiting trial on second-degree murder while armed and other charges in the July 4, 2015 slaying of Dwayne Dillard. Mr. Dillard, 23, was fatally shot at about 11 p.m. in the 2600 block of Douglass Place SE. Taylor has pled not guilty.
In announcing the sentence, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Park Police. They also acknowledged the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michelle Bradford, Magdalena Acevedo, Christian Natiello, and Michael Spence; Paralegal Specialists Lashone Samuels and Debra Joyner; Victim/Witness Services Coordinators M. Laverne Perry and Tanya Via; Victim/Witness Advocate Marcey Rinker; Investigative Analyst Zachary McMenamin; Litigation Technology Specialist Jeanie Latimore-Brown, and Intern Reed Stadler.
Finally, U.S. Attorney Phillips and Chief Newsham commended the work of Assistant U.S. Attorneys Thomas N. Saunders and Jin Park, who prosecuted the case.
District Man Sentenced to 16 1/2-Year Prison Term for Assaulting and Attempting to Rob Three VictimsRead the Press Release
WASHINGTON – Eric Aguilar-Gamez, 20, of Washington, D.C. was sentenced today to 16 ½ years in prison for assaulting and attempting to rob three young victims at gunpoint, as well as a separate gun offense, U.S. Attorney Channing D. Phillips announced.
Gamez was found guilty by a jury in July 2017, following a trial in the Superior Court of the District of Columbia, of three counts of assault with a dangerous weapon, two counts of assault with intent to commit robbery while armed, and five counts of possession of a firearm during a crime of violence. After the trial, Gamez pled guilty to a separate gun offense for unlawful possession of a firearm, which occurred in April of 2016.
In sentencing Gamez, the Honorable Juliet McKenna noted that in just two years, he had been convicted of five separate offenses, three involving firearms. She also cited the young age of the victims in this case and the seriousness of the offense. Following his prison term, Gamez will be placed on five years of supervised release.
According to the government’s evidence at trial, in the early evening of May 19, 2016, two sisters, ages 16 and 12, were walking in Northwest Washington to a store to meet the 16-year-old’s boyfriend, who was 19 years old. While heading to the store, they noticed a group of men, including Gamez, near the tennis courts of the Fort Stevens Recreation Center. Feeling uncomfortable with the fact that people in this group appeared to be staring at her phone, the 16-year-old asked her boyfriend to walk back home with them.
Just as they were turning onto Whittier Place NW, they heard tires screech behind them and saw a black two-door Honda chasing after them. The three ran as fast as they could, nearly making it to the girls’ home, but Gamez jumped out of the front passenger seat, pulling a black handgun from under his seat. Gamez then lifted the gun, pointing it at the three victims and yelling what appeared to be a gang-related threat. The 19-year-old hopped a fence and ran off. Gamez then looked directly at the girls and demanded their belongings. The 16-year-old threw herself between the gun and her sister and refused to comply with Gamez’s demands. The girls’ mother heard her daughters screaming and opened the door of their home, confronting Gamez before he hopped back in the black two-door Honda and drove away.
Gamez was arrested May 22, 2016.
Unfortunately, this wasn’t the last time the 16-year-old saw Gamez. On Nov. 28, 2016, she was in the basement of the courthouse when she saw Gamez seated across from her. She told him how what he had done had affected her sister. In response, he laughed and said he should have pulled the trigger.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney, Troy Griffith, Tamaya Reid, and Sharon Newman. Finally, he commended the work of Assistant U.S. Attorneys Allessandra Stewart, Marisa West, and Ethan Carroll who investigated and prosecuted the cases.
District Man Pleads Guilty to Murder Charge in Slaying of His 81-Year-Old MotherRead the Press Release
WASHINGTON – Derek Cook, 52, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed in the killing last month of his 81-year-old mother, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Cook entered the guilty plea in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 20 years in prison. The Honorable Zoe Bush scheduled sentencing for Dec. 1, 2017.
According to a proffer of facts submitted at today’s hearing, on the night of Aug. 12, 2017, Cook was having a conversation with his mother, Ann Alfredia Cook, in the bedroom of their apartment in the 5000 block of Fourth Street NE. Cook began to repeatedly strike his mother with a closed first, and she yelled for help. Cook also struck his mother repeatedly with a wooden stick and an iron, hitting her on various parts of her face and body. At the time of the beating, his mother was unarmed and in bed.
The Metropolitan Police Department (MPD) arrived at the apartment at about 10:45 p.m., and Cook let them into the apartment building. However, he would not let police into the apartment. To gain entry, the police had to ram down the apartment door. After doing so, the police found Ms. Cook, who was severely injured. She was taken to a hospital, where she died later that night. Derek Cook was arrested and has remained in custody ever since.
In announcing the plea, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of Assistant U.S Attorney Thomas N. Saunders, who investigated and prosecuted the matter.
Department of Justice Awards Nearly $59 Million to Combat Opioid Epidemic, Fund Drug CourtsRead the Press Release
The Department of Justice today announced $58.8 million to strengthen drug court programs and address the opioid epidemic nationwide.
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues. The opioid epidemic, a public health crisis, is also a growing public safety crisis.
“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.”
About $24 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 programs 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. This program helps regulatory, law enforcement, and public health agencies address prescription drug and opioid misuse; reduce crime; and save lives.
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 $22.2 million to 53 jurisdictions to support the implementation and enhancement of adult drug courts and Veterans Treatment Courts, which serve as “one-stop-shops” to link veterans with services, benefits and program providers, including the Department of Veterans Affairs, Veterans Service Organizations and volunteer veteran mentors.
Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJWE.
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 helps 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: https://go.usa.gov/xRJDf.
Finally, read more about the importance of these programs in a new blog by OJP Acting Assistant Attorney General Alan R. Hanson online at https://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.Davenport Man Sentenced to Prison for Felon in Possession of FirearmRead the Press Release
DAVENPORT, Iowa - On September 21, 2017, Chief United States District Court Judge John A. Jarvey sentenced Michael Scott Parker, 32, formerly of Davenport, Iowa, to 80 months in prison after pleading guilty to felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Parker was also ordered to serve three years of supervised release and pay $100 to the Crime Victims’ Fund.
On August 28, 2016, Davenport police responded to a disturbance call and encountered Parker, who attempted to flee while in possession of a loaded Taurus .38 caliber revolver.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Davenport Police Department conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Jason T. Griess at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
D. Michael Dunavant Sworn in as United States AttorneyRead the Press Release
D. Michael Dunavant was sworn in September 21, 2017, as the United States Attorney for the Western District of Tennessee. In a brief ceremony, Chief U.S. District Judge S. Thomas Anderson administered the oath of office in Jackson, Tennessee, making Dunavant the 50th person to serve as the chief federal prosecutor for the Western District.
Dunavant was nominated by President Donald Trump on June 12, 2017 and he was confirmed by the United States Senate on September 14, 2017.
"I am extremely humbled to be afforded the opportunity to serve the citizens of the Western District of Tennessee as their top federal-law enforcement officer. This responsibility will not be taken lightly. I, along with the dedicated professionals in the U.S. Attorney’s Office are committed to ensuring a safer community for our citizens in this 22-county district. I want to thank President Trump for his nomination."
Prior to his appointment as U.S. Attorney, Dunavant served as District Attorney General, 25th Judicial District of Tennessee. For eleven years prior to that, he was a partner in the law firm of Carney, Wilder and Dunavant, in Ripley, Tennessee.
Compliance Officer Convicted of Perjury in Investigation of Illegal DumpingRead the Press Release
NEWS RELEASE SUMMARY – September 21, 2017
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
SAN DIEGO – Ronald Fabor, the Operations Safety and Compliance Manager of Diamond Environmental Services, was convicted by a federal jury yesterday of two counts of perjury relating to his testimony before a grand jury.
The grand jury investigation involved allegations that Diamond had unlawfully discharged trucked portable toilet waste into municipal sewer systems at their facilities in violation of federal law. The trial jury found that Fabor falsely testified that the first time he learned that individuals at Diamond were dumping sewage into the municipal sewers (rather than taking it to the designated locations) was the date that federal search warrants were executed at the Diamond locations in San Diego and San Marcos. The jury also convicted Fabor of falsely testifying that he had never personally observed Diamond trucks connected by hoses to the illegal sewer connections at the Diamond facilities.
Fabor was ordered to appear on January 8, 2018,at 9:00 am before the U.S. District Judge Roger T. Benitez for sentencing.
In a related case (17cr1305-BEN), on June 1, 2017, Diamond Environmental Services LP pled guilty to mail fraud, for defrauding various municipalities of revenue relating to the fees for disposal avoided by the unlawful discharges. On that same date, diamond owner Eric De Jong pled guilty to conspiring to violate the Clean Water Act for his role in the dumping. Earlier, on May 24, 2017, Diamond Chief Operating Officer Warren Van Dam had also pled guilty to participating in the same conspiracy. Diamond, De Jong and Van Dam are scheduled to be sentenced by U.S. District Court Judge Benitez on November 13, 2017, at 9:00 am
“Mr. Fabor delivered false testimony to a grand jury about illegal pollution that put public health and safety at risk,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “Providing honest testimony is a fundamental necessity of our legal system and is critical to EPA's ability to protect public health and the environment.”
DEFENDANT Criminal Case No 17cr1064-BEN
Ronald B. Fabor Age: 55
San Marcos, California
SUMMARY OF CHARGES
Perjury, 18 U.S.C. § 1621
Maximum penalty: 5 years’ prison and/or a fine of $250,000
AGENCIES
Federal Bureau of Investigation
U.S. Environmental Protection Agency, Criminal Investigation Division
Charlottesville Man Sentenced on Federal Drug ChargeRead the Press Release
Charlottesville, VIRGINIA – A Charlottesville man, who distributed crack cocaine throughout the Charlottesville Region, was sentenced yesterday in the United States District for the Western District of Virginia in Charlottesville, Acting United States Attorney Rick A. Mountcastle announced.
Ricco Jamel Harris, 35, was sentenced yesterday to 14 years in federal prison. Harris previously pleaded guilty to one count of distributing and possessing with the intent to distribute 280 grams or more of cocaine base.
According to evidence previously presented by Assistant United States Attorney Ronald M. Huber, Harris distributed crack cocaine throughout Central Virginia between late 2012 and November 2015. The evidence established that Harris was a major supplier of cocaine in Charlottesville. He also supplied the drug to members of a cocaine distribution ring operating out of the Culpeper area, whose members were previously prosecuted in Federal court.
During the period at issue, agents with the Jefferson Area Drug Task Force [JADE] made a series of controlled buys from Harris and seized over 75 grams of crack cocaine during a traffic stop. Ultimately, it was determined that Harris was responsible for the distribution of over 4 kilograms of crack cocaine between late 2012 and November 2015.
The investigation of the case was conducted by the Jefferson Area Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration and the City of Charlottesville Police Department. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Charles Tan Arrested for Federal Firearms FeloniesRead the Press Release
SYRACUSE, NEW YORK - Charles Tan, 22, of Pittsford, New York, was arrested today in Lewiston, New York, on a federal indictment, as he crossed into the United States from Canada.
The announcement was made by Acting United States Attorney Grant C. Jaquith, Special Agent in Charge Ashan M. Benedict, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Monroe County (New York) Sheriff Patrick O'Flynn.
Tan will appear before a United States Magistrate Judge in Syracuse, New York, at 4 pm on Saturday, September 23, 2017, on an Indictment charging him with one count of Receiving a Firearm and Ammunition with Intent to Commit an Offense, and two counts of Making a False Statement During the Purchase of a Firearm.
Tan faces a maximum term of imprisonment of 10 years on each count charging him with Making a False Statement During the Purchase of a Firearm and a maximum term of imprisonment of 5 years for the charge of Receiving a Firearm and Ammunition with Intent to Commit an Offense. He also faces a maximum fine of $250,000 on each count and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by ATF and the Monroe County, New York, Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Cedar Rapids Man Charged with Distribution, Receipt, and Possession of Child PornographyRead the Press Release
Craig Watters, age 30, of Cedar Rapids, Iowa, has been charged with distribution, receipt, and possession of child pornography. The charges are contained in an Indictment filed on September 14, 2017 in United States District Court in Cedar Rapids.
The Indictment alleges that, in 2014, Watters distributed child pornography, received child pornography, and possessed child pornography on a computer. The Indictment also alleges that Watters was convicted of receipt of child pornography in the Northern District of Iowa in 2009.
If convicted, Watters faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 100 years’ imprisonment, a $750,000 fine, $300 in special assessments, and at least five years and up to life on supervised release following any imprisonment.
Watters appeared on September 20, 2017 in federal court in Cedar Rapids and was held without bond. Watters’s next appearance for trial is set for November 20, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department and the Iowa Division of Criminal Investigation.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-69.
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Bradenton Man Pleads Guilty to Firearm OffenseRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Luis Quinones (33, Bradenton) has pleaded guilty to being a felon in possession of a firearm. He faces up to 10 years in federal prison. A sentencing date has not yet been set.
According to the
plea agreement , Quinones and two of his associates traveled to a Walmart parking lot for the purpose of robbing a person scheduled to arrive with drugs that had been paid for in advance. Acting on information, law enforcement officers arrived in the parking lot and approached Quinones and his associates’ car. The officers located three firearms in the car, including a Ruger 9mm pistol with a high-capacity magazine in the backseat where Quinones had been sitting.This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Frank Murray.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program — a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Boston Police Sergeant Detective Agrees to Plead Guilty to Making False Statements and Unlawfully Entering Secure Airport AreaRead the Press Release
BOSTON – A Boston Police Sergeant Detective agreed to plead guilty today to repeatedly making false statements so that he could fly armed on personal trips and enable a friend to fly with him without being screened by security personnel at Boston’s Logan International Airport.
Bruce E. Smith, 53, of Randolph, agreed to plead guilty to making false statements to the Transportation Security Administration (TSA) and the Department of Homeland Security, as well as unlawfully entering a secure airport area with intent to evade security requirements. In June 2017, Smith was arrested and charged by criminal complaint.
Smith has been employed with the Boston Police Department since 1989 and is currently a Sergeant Detective assigned to District E-13, Jamaica Plain, as a district detective supervisor. Under the terms of the plea agreement, Smith faces a sentence of six months to one year of probation, with the possibility of home confinement. Smith has also agreed to resign from the Boston Police Department and pay a $7,500 fine.
Between May 2011 and April 2017, Smith flew armed on approximately 28 separate trips departing from Logan Airport even though he was not on official business, which is a violation of federal law. On each of those trips, he falsely claimed to have obtained supervisor approval for his travel. On at least two of them, Smith also escorted or attempted to escort a friend through Logan Airport without security screening. Smith falsely claimed that his friend was a “dignitary” under Smith’s official police escort. When questioned by TSA security personnel as to what type of dignitary his friend was, Smith falsely replied, “I am not at liberty to divulge that information.” In fact, Smith’s friend, who has a criminal record, is not a dignitary, but a mobile HIV clinic operator.
Acting United States Attorney William D. Weinreb; Boston Police Commissioner William Evans; and Mark Tasky, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Washington Field Office, made the announcement today. The investigation was conducted jointly by BPD’s Anti-Corruption Division and DHS-OIG. Assistant U.S. Attorney Zachary R. Hafer of Weinreb’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
Boston Man Pleads Guilty to Robbing Five BanksRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston to robbing five banks throughout April and June 2017.
Thomas W. Nee, 46, pleaded guilty to five counts of bank robbery. U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 9, 2018.
Nee robbed five different banks stealing a total of over $8,200. The robberies occurred at Santander Bank on Commonwealth Avenue on April 21; Citizens Bank on Tremont Street on May 5; Century Bank on State Street on May 8; Randolph Savings Bank on May 22; and Eastern Bank on West Broadway on June 8. Nee committed each of the robberies by handing a teller a note demanding money.
Each count of bank robbery provides for a sentence of no greater than 20 years in prison, three years of supervised released, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
Big Island Capital Fraudster Pleads Guilty to Million Dollar Ponzi SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of JEREMY RICHARD LUNDIN, 30, for operating a Ponzi scheme through which he stole more than $1 million from individual investors. LUNDIN, who was charged via a criminal information on September 1, 2017, pleaded guilty yesterday before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minn. A sentencing date has not yet been scheduled.
“Jeremy Lundin’s friends and associates gave him hundreds of thousands of dollars based upon outright lies. Mr. Lundin spent their hard-earned money – in some cases, their life savings – to travel, shop, drive luxury cars, and otherwise fund a lifestyle that many of his victims will never enjoy,” said Assistant U.S. Attorney Amber Brennan. “Mr. Lundin has admitted his crime and he will now face the consequences of his criminal actions.”
“IRS Criminal Investigation is committed to help put an end to the criminal behavior of those who prey on investors for their personal financial gain”, stated Hubbard Burgess, IRS Criminal Investigation Special Agent in Charge of the St. Paul Field Office. “The guilty plea of Jeremy Lundin again emphasizes that we and our law enforcement partners will continue our aggressive pursuit of those who defraud and harm investors.”
“Postal Inspectors will continue to protect the integrity of the US Postal Service and aggressively investigate and prosecute those cases where the US Mails are used to defraud individuals of their hard-earned money and property,” said Denver Division INC Nicole Davis. “The U.S. Postal Inspection Service and its law enforcement partners play a critical role in protecting the American consumer from these types of fraudulent schemes.”
According to the defendant’s guilty plea, from approximately December 2014 until May 2017, LUNDIN claimed that he conducted “options trading” through his company Big Island Capital. LUNDIN worked through a network of associates and friends to solicit investors to invest with Big Island Capital by promising those potential investors exponential growth through options trading. LUNDIN solicited more than $1 million from at least 51 investors, but instead of using the funds for options trading, LUNDIN spent investors’ money to fund his and his wife’s lavish lifestyle.
According to the defendant’s guilty plea, as part of the scheme, LUNDIN provided victim investors with written materials relating to his purported investment strategy. Through these materials, LUNDIN claimed that the goal of Big Island Capital was to “generate profits with options trading” and that while he could not “guarantee” an exact percent, he would “shoot for” returns of between 40 percent and 80 percent. LUNDIN also entered into contract agreements with victim investors. These agreements, titled, “Big Island Capital Investment Advisory Agreement,” purported that the assets of Big Island’s account would be held for safekeeping in a brokerage account. LUNDIN regularly represented that the value of the account was several hundred thousand dollars. For example, “Welcome Packet” materials LUNDIN sent to a new victim investor on November 24, 2015, claimed that the firm’s capital was then $730,000 when, in reality, LUNDIN did not even open the brokerage account until December 21, 2015.
According to the defendant’s guilty plea, in order to appear legitimate and promote his scheme, LUNDIN created phony account statements. He also provided victim investors with online access to fictitious quarterly statements and purportedly “up to date” information about the rate of growth and the market value of the accounts, which commonly and falsely showed double-digit gains. As part of the scheme, LUNDIN directed his victim investors to make their checks payable to “Big Island Capital,” he would then deposit those checks into a bank account he had established in the company’s name. Between May 2015 and May 2017, at least $992,000 was deposited into that account. During roughly the same time period, however, LUNDIN transferred $933,950 from the business account directly into his and his wife’s personal checking account. LUNDIN and his wife used the majority of those investor funds on personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan is prosecuting the case.
Defendant Information:
JEREMY RICHARD LUNDIN, 30
Mound, Minn.
Convicted:
- Mail fraud, 1 count
- Money laundering – transaction involving fraud proceeds, 1 count
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Benton City Man Sentenced to 20 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Robert Cody Cameron Genoway, of Benton City, Washington, was sentenced after previously having plead guilty on July 26, 2017, to production of child pornography. United States District Judge Stanley A. Bastian sentenced Genoway to a 20-year term of imprisonment, to be followed by a 30-year term of court supervision after he is released from federal prison. Genoway will also be required to register as a sex offender.
According to information disclosed during court proceedings, in July of 2016, a detective with the Southeast Regional Internet Crimes Against Children Task Force (SER-ICAC) and Homeland Security Investigations (HSI) observed an ad on a well-known website seeking a “petite young teeny bopper” for sexual acts. The detective responded to the ad posing as a thirteen (13) year old minor female. During the course of the communications, Genoway described in graphic detail the manner in which he wished to have sexual intercourse with the purported child, including choking the child for his own sexual pleasure, and made multiple attempts to meet the purported child to commit the described sexual acts in Kennewick, Washington. Genoway communicated with the undercover detective for a number of months via text message and e-mail, despite the detective advising that the purported thirteen (13) year old was actually eleven (11) years old.
Genoway was subsequently arrested, and during the course of a post arrest interview, admitted that he sought to meet the purported minor for the purpose of sexual intercourse. Genoway also admitted to engaging in sexual intercourse with another minor female, and to producing child pornography images and videos depicting these acts. Genoway further described that he choked that minor child during the course of his sexual interactions with her.
Through subsequent investigation, law enforcement officers with the SER-ICAC and HSI located the minor victim and learned that Genoway began producing child pornography images of the minor victim when she thirteen (13) years old, and continued to engage in sexual acts with her for a three year period. These images and videos were located among other child pornography images during the course of a forensic examination on Genoway’s electronic devices. Law enforcement officials also learned that Genoway had distributed the child pornography images and sought other adult males to have sexual intercourse with the minor victim.
During the sentencing hearing, Judge Bastian stated that the acts perpetrated by Genoway were “very concerning because it indicates that you were forcible, violent, and dangerous in your sex [acts with the] 13 year old victim.” Judge Bastian further characterized Genoway’s conduct as “egregious,” and advised that Genoway’s “interest in young girls was ongoing and ultimately…led to [Genoway’s] downfall in the undercover enticement investigation.”
Joseph H. Harrington said, “I commend the officers working with Homeland Security Investigations and the Southeast Regional Internet Crimes Against Children Task Force for their outstanding work in the investigation of this case. This case is yet another example of the remarkable results that local and federal law enforcement officers can accomplished when they work together in partnership. The sentence imposed reflects how egregious Genoway’s criminal conduct was.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Homeland Security Investigations and the Southeast Regional Internet Crimes Against Children Task Force conducted the investigation of this matter. The case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington.
Austin Pilot Sentenced to Federal Prison for Transporting Marijuana in His PlaneRead the Press Release
In Austin today, a federal judge sentenced 65–year-old pilot Wayne Douglas Brunet to 37 months in federal prison for possession with intent to distribute between 50 and 100 kilograms of marijuana announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison term, U.S. District Judge Sam Sparks ordered that Brunet pay a $5,000 fine and be placed on supervised release for a period of three years after completing his prison term. Judge Sparks also ordered that Brunet forfeit his 1969 Piper PA-30 Comanche aircraft, $5,400 in U.S. Currency, and approximately $3,000 worth of prepaid cards seized by law enforcement.
On March 20, 2017, state authorities arrested Brunet at the Llano (TX) Municipal Airport after discovering approximately 206 pounds of hydroponic marijuana on board his aircraft. According to court records, HSI agents were prepared to interdict Brunet as he attempted to land at an unmanned airport in Bulverde (TX). The Department of Homeland Security Customs and Border Protection (CBP) Air and Marine Operation Center (AMOC) began tracking his single-engine plane after observing that it had a suspicious flight pattern from Medford, OR, to Texas and had landed only once in Holbrook, AZ, to refuel.
Brunet landed at the unmanned airport in Bulverde, but departed again after spotting authorities on the ground. Brunet then proceeded to the Lago Vista (TX) airport, but again, aborted his landing as he did in Bulverde when encountered by law enforcement. Brunet then proceeded to the Llano Municipal Airport where he landed at approximately midnight. After bringing the aircraft to a stop, Brunet attempted to flee on foot, but was apprehended on the tarmac by the Texas Department of Public Safety Air Unit. Authorities recovered 15 duffle bags filled with vacuum-sealed packages of marijuana along with approximately $5,400 in U.S. Currency.
Brunet has remained in federal custody since his arrest. On June 28, 2017, Brunet pleaded guilty to the drug trafficking charge.
HSI agents conducted this investigation together with assistance from CBP AMOC, Texas Department of Public Safety Air Unit and the Llano County Sheriff’s Office. Assistant United States Attorney Matthew Devlin prosecuted this case on behalf of the Government.
Acting U.S. Attorney Durham Resigns; Interim U.S. Attorney AppointedRead the Press Release
Savannah, GA- James D. Durham resigned effective September 22, 2017, as the Acting United States Attorney for the Southern District of Georgia. Mr. Durham served as an Assistant United States Attorney in the Office’s Criminal Division from 2002 to 2007, as the Office’s Criminal Chief from 2007 to 2010, and as First Assistant United States Attorney from 2010 to March 2017, when he became the Acting United States Attorney.
Effective upon Mr. Durham’s departure, R. Brian Tanner was appointed as the interim United States Attorney by the Attorney General of the United States. Mr. Tanner has served as the Office’s Appellate Chief since 2010 and as an Assistant United States Attorney in the Criminal Division from 2006 to 2010.
U.S. Attorney Tanner said, “Jim Durham has been a relentless and formidable advocate for the people of the United States for over fifteen years. From the start of his career here, Mr. Durham has prosecuted the most complex and important criminal cases in our district, rightly earning the full respect of our law enforcement partners. His leadership has made this Office stronger and the people of the Southern District of Georgia safer. We thank him for his selfless public service, and we wish him great success in his future endeavors.”
Acadiana men sentenced for narcotics distributionRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that multiple people were sentenced for their roles in distributing illegal drugs in Acadiana. The sentencing came after convictions following a long term investigation into drug trafficking and violent criminal activity in an area near the dead end of Delord Street in Lafayette.
Carroll Griffin, 34, of Lafayette was sentenced to 72 months in prison and three years of supervised release; Joshua Griffin, 35, of Lafayette, was sentenced and 36 months in prison and five years of supervised release; and Ashton Ventroy, 28, of Carencro, was sentenced to 60 months in prison and four years of supervised release. United States District Judge Donald E. Walter sentenced them on one count of conspiracy to distribute and possess with intent to distribute controlled substances. According to documents filed in the case, Joshua Griffin, Ventroy and others conspired to distribute crack cocaine in the area known as the “dead end” at the end of Delord Street in Lafayette. Carroll Griffin conspired to distribute methamphetamine. Law enforcement agents investigated the unlawful narcotics activity as well as violence in the area and firearms offenses.
“The defendants in this case were a blight on the Lafayette community who used extreme violence to further their drug trade,” Van Hook stated. “The charges brought and the sentences imposed show our unwavering commitment to protect the community from violent drug traffickers. We appreciate the hard work of our law enforcement partners who helped bring these criminals to justice.”
“Today’s harsh sentences handed down to these three defendants, as well as the lengthy federal sentences given to their co-conspirators within the last several months, should send a clear message to criminals that law enforcement officials in Lafayette will not tolerate narcotics trafficking in their community,” stated FBI Special Agent in Charge Jeff Sallet of the New Orleans Division. “This case is yet another great example of federal, state and local law enforcement collaboration to identify and eradicate this illicit activity in the Lafayette area.”
As a result of the investigation, multiple defendants were prosecuted and received terms of incarceration including:
Alvontre Griffin, 21, of Lafayette, sentenced on May 5, 2017 to 97 months in prison and four years of supervised release for conspiracy and possession of a stolen firearm.
Jeremy Tyler, 30, of Rayne, La., sentenced on June 17, 2017 to 86 months in prison and four years of supervised release for conspiracy.
Chester Tyler, 20, of Lafayette, sentenced on June 17, 2017 to four years of probation for unlawful use of a communication facility.
Nathan George, 35, of Lafayette, sentenced on June 17, 2017 to 60 months in prison and four years of supervised release for conspiracy.
Ronnie Thomas, 37, of Lafayette, sentenced on June 17, 2017 to 12 months and one day in prison and three years of supervised release for maintaining a premises for the purpose of distribution of controlled substances.
Johnny Huntley, 23, of Duson, sentenced on June 17, 2017 to 24 months in prison and four years of supervised release for possession of a stolen firearm.
These convictions resulted from a multi-agency investigation coordinated by the FBI’s Lafayette Resident Agency Safe Streets Gang Task Force. The FBI, ATF, Lafayette Metro Narcotics Unit, Lafayette Police Department, Lafayette Sheriff’s Office, St. Landry Sheriff’s Office, St. Mary Sheriff’s Office, Iberia Parish Sheriff’s Office and the Louisiana National Guard Counter Drug Unit participated in the investigation. Assistant U.S. Attorneys Robert C. Abendroth and Kelly Uebinger prosecuted the case.
5 Middletown Residents Indicted for Million-Dollar Jewelry RobberyRead the Press Release
CINCINNATI – A federal grand jury has charged five Middletown residents with the strong-armed robbery of a diamond/jewelry merchant in Monroeville, Pa. on April 2, 2016.
Amit Patel (also known as Alex Patel), 48, Mimi Chang, 40, Andrea Mullins, 35, Deanna Williams (also known as Dee Dee Williams), 36, and Danny Ray Horne, 37, were each charged in the indictment. Three defendants appeared in federal court this afternoon for initial appearances and two defendants are currently in state custody.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the indictment returned September 6.
The indictment charges the defendants with one count of conspiring, beginning on or about March 30, to commit a Hobbs Act robbery. The Hobbs Act is a federal law prohibiting interference with interstate commerce and violating the law is punishable by up to 20 years in prison.
The FBI began the investigation after the victim filed a police report with the Monroeville Police Department following the robbery.
“The government is seeking forfeiture in this case of more than $1 million, which represents the total amount of proceeds the defendants obtained as a result of the offense,” U.S. Attorney Glassman said.
U.S. Attorney Glassman commended the investigation by the FBI in Cincinnati and Pittsburgh and the Monroeville Police Department, as well as Assistant United States Attorney Timothy D. Oakley, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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2017 Red Ribbon Campaign CelebrationRead the Press Release
Each year communities nationwide join together to raise awareness about the dangers of drug abuse by wearing a red ribbon from October 23rd to 31st, which is the National Red Ribbon Week. However, on Guam, various activities have been scheduled throughout the month of October to celebrate the Red Ribbon Campaign. Guam’s Red Ribbon Committee includes local and federal agencies, and private and non-profit organizations that have partnered to increase awareness of the National Red Ribbon Campaign’s significance and promote a drug-free Guam. This year’s theme is “Your FUTURE is Key, So Stay DRUG FREE.” The campaign provides communities with a forum to bring together parents, schools and businesses to find new and innovative ways to keep kids drug free.
Red Ribbon Week will kick off with a Proclamation Signing by Lt. Governor Raymond Tenorio at Upi Elementary School in Yigo, on Tuesday, September 26, 2017 at 9:00 AM and a Resolution Presentation on Friday, September 29, 2017 at Merizo Elementary School at 9:00 AM., hosted by Senator Frank Aguon, Jr. An elementary school drawing contest and island-wide gate/wall decorating contest and video contest is open to all schools. In addition, Committee members are conducting drug awareness presentations at various schools.
The following activities have been scheduled for Red Ribbon Week 2017:
- Tuesday, September 26, 2017, Proclamation Signing by Lt. Governor Raymond Tenorio at Upi Elementary School, Yigo, 9:00am
- Friday, September 29, 2017, Resolution Presentation by Senator Frank Blas Aguon, Jr. at Merizo Elementary School, 9:00am
- Saturday, Oct. 7, 2017, Community Outreach at the Micronesia Mall, 10:00am-2:00pm. Photos of Gate/Wall and Drawing contests will be on display and paper votes will be accepted.
- Friday, Oct. 27, 2017, Wear Red Day and Red Ribbon Wave in Hagatna at the Intersection of Route 1 and Route 4, 4:30-5:30pm. Red Ribbon Committee members and schools will wave to demonstrate commitment to the anti-drug campaign.
- Tuesday, Oct. 31, 2017, Say “Boo!” to Drugs, Agana Shopping Center, 4:00pm-6:00pm, Elementary School Drawing Contest Winners, Gate/Wall Decorating Contest Winners and Video Contest Winners will be announced and awards presented. Red Ribbon Committee will pass out candies to children who attend.
- Oct. 1-Oct. 31, 2017, Various TV, Radio and Print Media
The first Red Ribbon Celebration was organized in 1986 by a grassroots organization of parents concerned about the destruction caused by alcohol and drug abuse. The red ribbon was adopted as a symbol of the movement in honor of Enrique “Kiki” Camarena, an agent with the U.S. Drug Enforcement Administration who was kidnapped and killed while investigating drug traffickers. The Campaign has reached millions of children and has been recognized by the U.S. Congress. Red Ribbon Week is a chance to be visible and vocal in our desire for a drug-free community. Research shows that children are less likely to use alcohol and other drugs when parents and other role models are clear and consistent in their opposition to substance use and abuse.
These activities are made possible by the Red Ribbon Campaign Committee, which is comprised of our government agencies, nonprofit and civic organizations, private sector, military counterparts, and our media partners.
For more information about Red Ribbon Week, please contact Corina Andre at 647-6060.
21 September 2017
Zuni Pueblo Man Sentenced to Federal Prison for Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Police Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department announced that Justin Owen Poblano was sentenced today in federal court in Santa Fe, N.M., to five years in prison, including time already served, for his conviction on an aggravated child sexual abuse charge. Poblano will be on supervised release for 15 years after completing his prison sentence and will be required to register as a sex offender.
Poblano, 25, an enrolled member and resident of Zuni Pueblo, N.M., was arrested in Aug. 2012, on an indictment charging him with engaging in a sexual act with a child between 12 and 16 years of age. The indictment alleged that Poblano committed the crime on June 10, 2012, on the Zuni Pueblo in McKinley County, N.M. Proceedings in the case were delayed during the pendency of competency proceedings, which concluded in Oct. 2014, when the Court found him competent to stand trial. Poblano has remained in federal custody from the time of his arrest.
On July 12, 2017, Poblano pled guilty to a felony information charging him with aggravated sexual abuse. In entering the guilty plea, Poblano admitted that on June 10, 2012, while at a residence on the Zuni Pueblo, he forced the victim to engage in a sexual act.
This case was investigated by the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback prosecuted this case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
The case also is being prosecuted under Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Woman Sent to Prison for Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, announced Thursday that United States District Court Judge James M. Moody, Jr., sentenced Francine Leon, 49, of Wheatley, to prison for her role in a scheme to steal money intended for feeding children in low income areas.
Judge Moody sentenced Leon, who pleaded guilty to conspiring to commit wire fraud on February 25, 2016, to 34 months’ imprisonment, to be followed by one year of supervised release. She was also ordered to pay restitution in the amount of $1,003,630.00.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
Leon is the tenth defendant to be sentenced for her involvement in a scheme to fraudulently obtain USDA program funds intended to feed children in low income areas. Other defendants sentenced include: Kattie Jordan, 63 months’ imprisonment on March 15, 2016; Reuben Nims, 21 months’ imprisonment on November 2, 2016; Tonique Hatton, 108 months’ imprisonment on January 4, 2017; James Franklin, 24 months’ imprisonment on January 10, 2017; Maria Nelson, 30 months’ imprisonment on January 31, 2017; Michael Lee, 30 months’ imprisonment on May 1, 2017; Christopher Nichols, 3 years’ probation on May 16, 2017; Alexis Young, 18 months’ imprisonment on August 18, 2017; and Erica Warren, 18 months’ imprisonment on August 18, 2017.
Waymon Weeams and Dortha Harper have pleaded guilty to conspiring to defraud USDA feeding programs and are awaiting sentencing. Jacqueline Mills and Anthony Waits were convicted on April 6, 2017, following a jury trial and are also awaiting sentencing.
Leon operated as a sponsor for a feeding program through an organization called "Brighter Kids, Brighter Futures." At times during the period charged in the Information, Leon had approved sites in Cotton Plant, Wheatley, Poplar Grove, Morrilton, Brinkley and West Helena. In the 2012, 2013, and 2014 contract years, claims, which had inflated numbers of children fed, were submitted to DHS for reimbursement. Leon received a total of approximately $1,003,630. Leon withdrew approximately $534,710 in cash and paid a portion to two DHS employees.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation and the Internal Revenue Service–Criminal Investigations. If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
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White Lake Township Man Sentenced to 60 Years in Prison on Production of Child Pornography ChargesRead the Press Release
A White Lake Township man was sentenced today to 60 years in federal prison on charges of producing child pornography, announced Acting United States Attorney Daniel L. Lemisch.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Federal Bureau of Investigation (FBI).
Colin Boyle, 31, was sentenced this afternoon before United States District Judge Gershwin Drain in Detroit, Michigan.
Boyle pleaded guilty on April 4, 2017, to conspiring with his wife and co-defendant Anngela Boyle, to producing child pornography of four minor victims, ranging in age from 1 year to 9 years of age. Colin Boyle has two prior sex related convictions out of Oakland and Macomb Counties.
The case was investigated by special agents of the FBI and prosecuted by Assistant United States Attorney Margaret Smith.
West Haven Woman Sentenced to Prison for Role in Fraud and Identity Theft SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LORENA COBURN, 43, of West Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 16 months of imprisonment, followed by three years of supervised release, for her role in a fraud and identity theft scheme.
According to court documents and statements made in court, between approximately 2012 and July 2016, Jamila Williams-Stevenson and COBURN worked together to steal personal identifying information from victims and commit fraud using the stolen information. The sources of the personal identifying information included patients at Yale New Haven Hospital, where Williams-Stevenson worked as a care companion.
As part of the scheme, Williams-Stevenson and COBURN submitted to the U.S. Postal Service change of address applications for their victims so that the victims’ mail, including checks that were intended for the victims, would be diverted from the victims’ true addresses to addresses that were controlled by Williams-Stevenson and COBURN. Williams-Stevenson and COBURN also stole checks from residential and business mailboxes and then counterfeited the checks so that they were payable to their identity theft victims. They then opened bank accounts in the names of identity theft victims, deposited the stolen and counterfeit checks into those accounts, and then withdrew the funds from those accounts.
Williams-Stevenson and COBURN also obtained a life insurance policy in the amount of $75,000 in the name of an identity theft victim, and Williams-Stevenson was named as the beneficiary on the policy. Forensic analysis of Williams-Stevenson’s iPhone, which was seized at the time of her arrest, revealed a series of text messages between Williams-Stevenson and COBURN discussing how they might be able to cause the death of this victim in order to collect on the life insurance policy.
More than 30 individuals were victimized through this scheme, resulting in an attempted loss of more than $150,000 to banks and victims.
Williams-Stevenson was arrested on July 21, 2016. On that date, agents executed searches at her house and storage unit and found more than 200 unique credit and debit cards in the names of various identity theft victims.
COBURN was arrested on July 27, 2016. On November 30, 2016, she pleaded guilty to one count of bank fraud and one count of aggravated identity theft.
Judge Bolden ordered COBURN to pay restitution of $53,365.37 to various financial institutions and a university that suffered financial losses.
On December 12, 2016, Williams-Stevenson pleaded guilty to one count of bank fraud and one count of aggravated identity theft. On August 8, 2017, she was sentenced to 48 months of imprisonment, three years of supervised release, and $53,365.37 in restitution.
This matter was investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation Division, the Connecticut Financial Crimes Task Force and the West Haven, New Haven and Orange Police Departments. The case was prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Washington D.C. Woman Charged with Providing Marijuana to Federal InmateRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 19, 2017, a federal grand jury indicted a Washington, D.C., woman for providing contraband to an inmate at the United States Penitentiary at Canaan (USP Canaan), Waymart, Pennsylvania, and that the inmate has been charged with possession of contraband in prison.
According to United States Attorney Bruce D. Brandler, the charges in the indictment stem from an incident on July 1, 2017, in which Tianna Thompson, age 25, of Washington, D.C., allegedly provided several small packages of marijuana to inmate Charles Elegalam, age 30, formerly of Washington D.C., during a social visit at USP Canaan. The marijuana packages were subsequently seized from Elegalam by prison staff members.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Virginia man sentenced for traveling across state lines to have sex with a minorRead the Press Release
MARTINSBURG, WEST VIRGINIA – Johnnie William Bateman, III, of Culpepper, Virginia, was sentenced today to 46 months incarceration for traveling across state lines to meet a minor for sex, Acting United States Attorney Betsy Steinfeld Jividen announced.
Bateman, age 39, pled guilty to one count of “Travel with Intent to Engage in Illicit Sexual Conduct” in June 2017. Bateman admitted to traveling from Virginia to Berkeley County, West Virginia in August 2016 to engage in illicit sexual conduct with a person he believed to be a 15-year-old girl.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Virginia Man Indicted for Production of Child PornographyRead the Press Release
A Manassas, Virginia man was indicted today on five counts of producing child pornography of prepubescent minors announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI).
According to the indictment, Dwayne Stinson, 52, coerced minors into engaging in sexually explicit conduct for the purpose of producing pornographic images on at least five separate occasions.
Trial Attorney James E. Burke IV of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Upper Darby Man Charged with Illegal Reentry After DeportationRead the Press Release
Rudy Otoniel Alvarez-Esquivel, a/k/a “Rudy Vasquez,” of Upper Darby, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about August 15, 2017, Alvarez-Esquivel, an alien, and native and citizen of Honduras, was found in the United States after having been deported from the United States on or about August 30, 2012, January 16, 2013, and November 18, 2016.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Judy Goldstein Smith.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office Announces First “Alaska Hope Court” GraduateRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that a graduation ceremony was held today for Rashad Arnsworth, 38, of Anchorage, for his completion of the 18-month long federal reentry program, known as Alaska Hope Court.
The Hope Court was established in May 2015 through an order of the District Court of Alaska. The Hope Court team members include the United States Attorney’s Office, the United States District Court, the Office of the Federal Defender, and the United States Probation Office.
The Hope Court has received invaluable assistance from community partners including Partners for Progress, Partners Reentry Center, Cook Inlet Tribal Council, Alaska Native Justice Center and the Alaska Wellness Court Alumni Group, according to Chief U.S. Magistrate Judge Deborah M. Smith, presiding judge of the court. Each of these organizations are essential to the success of the Hope Court participants, according to Judge Smith.
Mr. Arnsworth met the following graduation requirements of Hope Court, which are demanding and are aimed at building life skills:
- Complete Moral Reconation Therapy, an evidence-based program designed to build life skills and critical thinking;
- Obtain stable housing;
- Obtain and maintain stable employment, ideally employment that can lead to a career unless excused by Probation;
- Successfully complete any recommended substance abuse treatment;
- Successfully complete any recommended counseling;
- Complete approximately 60 hours of a volunteer project of their choice to “give back” to the community; and
- Complete at least 18 successful months in Hope Court with six months of continuous sobriety before graduation.
Because Mr. Arnsworth successfully graduated from the program, the Hope Court team recommended to U.S. District Judge Sharon Gleason that Mr. Arnsworth receive a 15-month reduction in his period of supervised release. Judge Gleason accepted the recommendation.
Judge Smith noted: "Mr. Arnsworth has turned his life around. He has successfully graduated and did it in record time. He has quietly set an example for others and always been willing to assist other court participants." Mr. Arnsworth was recently hired as a peer counselor with Cook Inlet Tribal Council.
U. S. Attorney’s Office and Diocese of Altoona-Johnstown Announce Members of Independent Oversight Board for Youth ProtectionRead the Press Release
PITTSBURGH - Acting United States Attorney Soo C. Song and Bishop Mark L. Bartchak of the Diocese of Altoona-Johnstown announced the names of the five persons appointed to the Independent Oversight Board for Youth Protection for the Diocese of Altoona-Johnstown. The Diocese created the Independent Oversight Board earlier this year pursuant to the Memorandum of Understanding between the Diocese and the U.S. Attorney’s Office.
Under the Memorandum of Understanding, the Diocese established the Independent Oversight Board to supervise the implementation and provide ongoing review of the expanded child protection efforts of the Diocese. The five members chosen by Bishop Bartchak are:
- James W. Brown is a former Chief of Staff to both U.S. Senator Robert P. Casey, Jr. and Pennsylvania Governor Robert P. Casey. Mr. Brown will serve as Chair of the Board.
- Walter “Pete” Carlson is a former criminal investigator for the Pennsylvania State Police.
- Eileen Dombo, PhD, LICSW is an Associate Professor and Assistant Dean of the National Catholic School of Social Service at The Catholic University of America.
- Mary Herwig experienced abuse as a young child and is an advocate for child protection in all its forms.
- J. Alan Johnson served as United States Attorney for the Western District of Pennsylvania for eight years.
Two Virginia Beach Men Sentenced for Cocaine and Gun SalesRead the Press Release
NORFOLK, Va. – Juan Rivera-Gutierrez, 35, and Pedro Pabon, Jr., 42, both of Virginia Beach, were sentenced today for their respective roles in a three-and-a-half year cocaine conspiracy. Rivera-Gutierrez was sentenced to 10 years’ imprisonment and Pabon to 30 months’ imprisonment.
According to court documents, Rivera-Gutierrez and Pabon conspired to sell wholesale quantities of cocaine from September 2013 to April 2017. Special Agents from the Drug Enforcement Administration conducted nine controlled purchases and recovered over 500 grams of cocaine. During one controlled purchase, Pabon suggested that a confidential informant add a cutting agent to cocaine known as “Aroma,” a product commonly used as a carpet cleaner, to increase profits. On another controlled purchase, Rivera-Gutierrez sold a wholesale quantity of cocaine and five firearms with multiple 100-round clips and a silencer. The silencer was a Department of Defense asset and the firearms included a Russian Izhmash Saiga 12 caliber shotgun, an Israeli Tavor Sar 556 caliber rifle, a DMPS Panther 223 caliber rifle, a stolen Olympic MRF AR-15 multi-caliber rifle, and a Colt M4LE 556 caliber rifle.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Andrew C. Bosse prosecuted the case.
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. 2:17-cr-60.
Two Solano County Men Indicted for Possessing a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two separate indictments today against Maurice Darnell Jones, Jr. 21, of Vacaville, and Jerry Lyle Andrews, Jr., 34, of Vallejo, charging each with one count each of being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
U.S. v. Maurice Darnell Jones Jr., 2:17-cr-173 JAM
According to court documents, on August 27, 2017, the Vacaville Police Department encountered Jones and recovered a .40-caliber handgun near his vehicle. Jones is prohibited by law from possessing firearms.
This case is the product of a joint investigation by the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force, the Vacaville Police Department, and the Vallejo Police Department.
U.S. v. Jerry Lyle Andrews Jr., 2:17-cr-174 MCE
In a separate case, on July 26, 2017, law enforcement officers confronted Andrews in a hotel parking lot in Fairfield where he allegedly discarded a .40‑caliber semi-automatic handgun under a car before he was arrested. The gun was loaded with 12 rounds of ammunition, including seven rounds of hollow point ammunition. Andrews is prohibited by law from possessing firearms.
This case is the product of an investigation by the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force, the Vallejo Police Department, and the Fairfield Police Department.
If convicted, Jones and Andrews each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two More Springfield Women Plead Guilty to $718,000 Tax Fraud ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that two Springfield, Mo., women pleaded guilty in federal court today to their roles in a $718,000 tax fraud conspiracy.
Carolyn Alice Cobb, 56, and Clementine Lockett, 43, both of Springfield, pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool. In addition to the conspiracy, Cobb pleaded guilty to two counts of presenting a false claim and one count of theft of government property. Cobb remains in federal custody without bond. Lockett, who is on bond, also pleaded guilty to two counts of presenting a false claim.
Co-defendant Nancy Lorine Walker, 55, of Springfield, pleaded guilty on Aug. 10, 2017, to her role in the conspiracy. Walker also pleaded guilty to one count of presenting a false claim, one count of theft of government property and one count of aggravated identity theft.
Cobb, Lockett and Walker each admitted that she participated in a conspiracy, which operated from January 2010 to April 23, 2013, to submit false federal income tax returns and make false claims for federal income tax refunds for the 2009-2012 tax years.
Conspirators used the means of identification of individuals, including their names and social security numbers, and Turbo Tax to prepare and electronically file federal income tax returns. Those returns were false and fraudulent in that they included fictitious IRS Form W-2 information, listing employers who did not employ the individual listed on the return and reporting wages not earned and employment taxes not withheld from the individual.
The conspiracy resulted in a total of $718,927 in false claims for federal income tax refunds. Conspirators actually received a total of $317,498 in refunds.
Under federal statutes, Cobb is subject to a sentence of up to 25 years in federal prison without parole. Lockett is subject to a sentence of up to 15 years in federal prison without parole. Walker is subject to a sentence of up to 20 years in federal prison without parole, plus a mandatory consecutive sentence of two years in federal prison for aggravated identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by IRS-Criminal Investigation.
Two Men Sentenced for Laundering Money from Victims of Internet Dating ScamRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Olusola Olla, age 50, of Browns Summit, North Carolina, to four years in prison, followed by three years of supervised release, for conspiracy to commit money laundering and structuring arising from a scheme to defraud elderly victims of millions of dollars. Olla also was ordered to forfeit and pay restitution in the amount of $349,095. Judge Grimm also sentenced Adeyinka Awolaja, age 35, of Chicago, Illinois, formerly of New Carrollton, Maryland, to three years of probation, including two years of home confinement, for conspiracy to commit money laundering arising from the same scheme to defraud. Awolaja also was ordered to forfeit and pay restitution of $145,045.75.
The sentences were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
According to evidence presented at Olla’s 11-day trial, from January 2011, to May 18, 2015, members of the conspiracy searched online dating websites to initiate romantic relationships with vulnerable male and female individuals. They phoned, emailed, texted, and used internet chat messenger services to form romantic relationships with the victims, who lived in Maryland and around the country.
Witnesses testified that members of the conspiracy used false stories and promises to convince the victims to give them money, including fake hospital bills, plane trips to visit the victims, and problems with overseas businesses. Olla and co-conspirators opened bank accounts, called “drop accounts,” that received millions of dollars from the victims. Testimony at trial showed that victims provided money to Olla and Awolaja as a result of the false stories and promises, either by depositing money directly into drop accounts controlled by the defendants, or by sending checks to them. Payments from victims ranged from $1,720 to $50,000.
Olla, Awolaja, and the co-conspirators dispersed money received from the victims by transferring funds to other accounts they controlled, by obtaining cashier’s checks, and by writing checks to individuals or entities, all done to conceal the nature, source, and control of those assets. Relatedly, many of the currency transactions were “structured,” or designed to avoid the filing of currency transaction reports, which financial institutions are required to file with the Internal Revenue Service for currency transactions exceeding $10,000.
The following co-defendants were previously convicted at trial or pleaded guilty:
Gbenga Benson Ogundele, a/k/a “Benson Ogundele,” age 58, of Laurel, Maryland;
Victor Oyewumi Oloyede, age 42, of Laurel, Maryland;
Olusegun Charles Ogunseye, a/k/a “Charles O. Ogunseye,” age 58, of Laurel, Maryland;
Babatunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” a/k/a “Tunde Popoola, age 34, of Bowie, Maryland;
Mojisola Tinuola Popoola, a/k/a “Mojisola Oluwakemi Tin Popoola” and “Moji T. Popoola,” age 42, of Laurel, Maryland; and
Olufemi Wilfred Williams, a/k/a “Wilfred Olufemi Williams” and “Femi Williams,” age 26, of Owings Mills, Maryland.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 United States Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation and thanked Assistant United States Attorneys Thomas P. Windom, Ray D. McKenzie, and Leah Jo Bressack, who prosecuted the case.
Two Charged with Sex Trafficking of a MinorRead the Press Release
GAINESVILLE, FLORIDA – Bailegh Noelle Coleman, 20, of Starke, Florida, was arraigned today in the U.S. District Court in Gainesville after a federal grand jury returned an indictment charging her and co-defendant Rajheem Kwamaine Roddey, 23, with conspiracy, sex trafficking of a minor, and benefiting financially from sex trafficking of a minor. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, between April and June 2017, Roddey and Coleman recruited and transported a person under age 18 for commercial sexual activity. The indictment further alleges that they benefited financially from the sex trafficking. Coleman is in custody, and Roddey has not been arrested yet. Coleman’s trial is scheduled for November 28, 2017, at 8:30 a.m.
The case is being investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the FBI Safe Streets Task Force, which includes the Alachua County Sheriff’s Office and the Gainesville Police Department. It is being prosecuted by Assistant United States Attorney Frank Williams.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
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.
Twelve Arrested on Federal Drug Trafficking ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake announced the arrests of Glenn Quanta Pernell, 39, Donald Lee Robinson, 51, Antonio Debor Gowans, 42, Danielle Johnnie Sarvis, 40, Whitney Sad’e Pernell, 27, Hattie F. Pernell, 55, Fatima Flesinears Ford, 32, Myra L. Dixon, 25, Cynthia Jantoria Williams, 39, Kevin Gerard Mullins, 36, Kevin Barry Myers, 52, and Elijah Tyrone Davis, 39. The defendants were indicted by a federal grand jury and charged with their participation in a conspiracy to traffic heroin, cocaine, and “crack” cocaine, in violation of Title 21, United States Code, Section 846.
The defendants were arrested on Wednesday, and appeared in court today where they all entered not guilty pleas. Four others, Santerrio Montinez Smith, 29, Dantrell Markeis Smith, 32, Terrence Vernon Dunlap, 23, and Stacey Vallario Fuller, 50, were also named in the Indictment but have not yet been arrested.
The government requested that six of the defendants—Glenn Pernell, Robinson, Gowans, Mullins, Myers, and Davis—be held without bail pending trial. The Honorable Paige J. Gossett, United States Magistrate Judge, will conduct a hearing on Wednesday, September 27 at 2:30 p.m. and will decide whether to grant the government’s request.
These arrests were the result of an investigation led by the Federal Bureau of Investigation’s Columbia Violent Gang Task Force (CVGTF), working in conjunction with the Richland County Sheriff’s Department, the Lexington County Sheriff’s Department, the Marion County Sheriff’s Office, the Columbia Police Department, the Horry County Police Department, the Conway Police Department, the Myrtle Beach Police Department, the South Carolina Law Enforcement Division (SLED), the South Carolina Department of Corrections, and the Drug Enforcement Administration (DEA), with assistance from the United States Marshal’s Service and the ASPCA® (American Society for the Prevention of Cruelty to Animals®). Assistant United States Attorney Jane B. Taylor of the Columbia office will prosecute the case.
The United States Attorney stated that all charges are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Three Men Arrested and Charged with Cocaine ConspiracyRead 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 Jose Rivas, age 40; Jose Luis Santiago Almonte, age 37; and Ryan Espinosa Ogando, age 30, all natives of the Dominican Republic living in New Jersey, were arrested and charged by criminal complaint with conspiracy to distribute cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life and a fine of $10,000,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, in July of 2017, the Drug Enforcement Administration in Gulfport, Mississippi obtained information regarding the drug trafficking activities of defendant Santiago. Specifically, Agents learned that Santiago and co-conspirators were arranging to purchase 50 kilograms of cocaine. The co-conspirators agreed to provide two vehicles as down payment for the cocaine. Defendants Santiago and Rivas traveled from New York City to Gulfport in order to make the arrangements, and multiple down payments in the form of vehicles or cash, were made.
In September of 2017, DEA Agents received information that the defendants planned to travel to the Buffalo area in order to obtain kilograms of cocaine. A sale was arranged in Buffalo during which the defendants provided approximately $20,000 more in order to secure six kilograms of cocaine. All three defendants showed up for the exchange. During the exchange, defendant Espinosa took possession of a backpack containing sham cocaine, provided by the DEA. The defendants were arrested at that time.
The complaint is the is the culmination of investigation by the Buffalo Office of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division, and the DEA Gulfport, Mississippi Resident Office.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
Texas Men Charged with Murder Outside Parole OfficeRead the Press Release
HOUSTON – A federal grand jury has returned a seven-count indictment against two men allegedly responsible for the killing of a man as he sat in his car outside a Houston parole office, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Ronald Donell Brown aka Dorsey Robinson or Nook or Nookie, 44, and Clyde Williams aka Pete, 50, both of Houston, are charged with conspiracy to commit murder for hire, intentional killing related to drug trafficking and two counts of using a firearm in the commission of a murder. David Roberts aka Cuz, 42, of Houston, is also named in the indictment and charged with one count of conspiracy to distribute and possession with the intent to distribute cocaine. Brown is also charged in that count in addition to kidnapping and using a firearm in relation to a crime of violence.
The indictment alleges that on July 1, 2014, Marcus Celestine had a pre-arranged meeting with his parole officer in Houston. Shortly thereafter, he was shot numerous times as he sat in the driver’s seat of his vehicle in the parking lot, according to the charges.
The murder for hire conspiracy allegedly began after the victim and another individual were believed to have stolen cocaine from a member of Brown’s drug organization. Roberts and others regularly transported large quantities of cocaine for Brown, driving from Houston to Atlanta on a weekly basis, according to the indictment. In April 2014, Roberts received two duffle bags filled with cocaine. Soon after, he was allegedly robbed.
Brown believed Celestine and another individual were responsible for the robbery and he assembled a plan to kill them, according to the indictment. On April 23, 2014, Brown and others allegedly kidnapped the other individual, zip-tied his arms and legs and put him in the trunk of a car. While being transported, the victim was able to break free, open the trunk and jump out of the vehicle. According to the indictment, a good Samaritan saw him, picked him up and attempted to drive him to safety. However, Brown allegedly pursued them and eventually shot at them repeatedly, ultimately striking the good Samaritan in the upper body and the victim in the head. Both men survived the attack.
The indictment further alleges that following this failed attempt, Brown turned his attention to Celestine. Brown allegedly hired Williams to kill Celestine and provided him a firearm. Brown was able discover that Celestine was to meet with his parole officer on July 1, 2014, and informed Williams, according to the charges. Following that meeting, Celestine returned to his vehicle in the parking lot, at which time Williams allegedly fired multiple shots, some at close range. Celestine died at the scene.
Brown and Williams could potentially face the death penalty. For his role in the drug conspiracy, Roberts faces up to life in prison, if convicted.
This case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative announced in June 2017 which combines personnel and resources from numerous federal, state and local agencies. The goal of the initiative is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The FBI, Houston Police Department’s Homicide and Major Offenders Division, Texas Department of Criminal Justice, U.S. Bureau of Prisons, U.S. Marshals Service and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorneys Steve Mellin and Sebastian Edwards are prosecuting the case along with Trial Attorney Teresa Polinske of the Department of Justice’s Capital Case Section.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Telia Company AB and Its Uzbek Subsidiary Enter into a Global Foreign Bribery Resolution of More Than $965 Million for Corrupt Payments in UzbekistanRead the Press Release
Stockholm-based Telia Company AB, an international telecommunications company that was formerly an issuer of publicly traded securities in the U.S., and its Uzbek subsidiary, Coscom LLC, entered into a global foreign bribery resolution and agreed to pay a combined total penalty of more than $965 million to resolve charges arising out of a scheme to pay bribes in Uzbekistan.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Joon H. Kim of the Southern District of New York, Chief Don Fort of Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Washington, D.C., Field Office made the announcement.
“This resolution underscores the Department’s continued and unwavering commitment to robust FCPA and white-collar criminal enforcement. It also demonstrates the Department’s cooperative posture with its foreign counterparts to stamp out international corruption and to reach fair, appropriate and coordinated resolutions,” said Acting Assistant Attorney General Blanco. “Foreign and domestic companies that pay bribes put honest companies at a disadvantage and distort the free and fair market and the rule of law. Today’s resolution reflects the significant efforts of law enforcement, the Criminal Division and the U.S. Attorney’s Office for the Southern District of New York to bring such companies to justice, and to maintain a competitive and level playing field for companies to do business, create jobs and thrive.”
“Today, we announce one of the largest criminal corporate bribery and corruption resolutions ever, with penalties totaling just under a billion dollars,” said Acting U.S. Attorney Kim. “Swedish telecom company Telia and its Uzbek subsidiary Coscom have admitted to paying, over many years, more than $331 million in bribes to an Uzbek government official. Telia, whose securities traded publicly in New York, corruptly built a lucrative telecommunications business in Uzbekistan, using bribe payments wired around the world through accounts here in New York City. If your securities trade on our exchanges and you use our banks to move ill-gotten money, then you have to abide by our country’s laws. Telia and Coscom refused to do so, and they have been held accountable in Manhattan federal court today.”
“Today marks the second resolution of proceedings against corporate entities who have engaged in a global bribery scheme of government officials,” said Chief Fort. “It also further demonstrates the dedication we have to identifying illegal financial transactions being used for bribery in the international community. It is important that the global economy remain on a fair playing field and IRS-CI will remain committed in our efforts to dismantle these kinds of corrupt financial schemes.”
“Today’s resolution marks a win against a foreign corruption scheme where millions of dollars in bribery funds were paid to Uzbekistan officials and laundered through the U.S. financial system.” said Special Agent in Charge Lechleitner. “HSI, working hand in hand with our partners at IRS Criminal Investigation, leveled the playing field for publicly traded companies by exposing these corrupt practices and helped the U.S. government collect nearly $275 million in criminal penalties”
Telia entered into a deferred prosecution agreement in connection with a criminal information filed today in the Southern District of New York charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). The case is assigned to U.S. District Judge George B. Daniels. In addition, Coscom pleaded guilty and was sentenced by Judge Daniels on a one-count criminal information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the Department, Telia agreed to pay a total criminal penalty of $274,603,972 to the U.S., including a $500,000 criminal fine and $40 million in criminal forfeiture that Telia agreed to pay on behalf of Coscom. Telia also agreed to implement rigorous internal controls and cooperate fully with the Department’s ongoing investigation, including its investigation of individuals.
The U.S. Securities and Exchange Commission (SEC) and the Public Prosecution Service of the Netherlands (Openbaar Ministrie, or OM) announced separate settlements with Telia in connection with related proceedings. Under the terms of its resolution with the SEC, Telia agreed to a total of $457,169,977 in disgorgement of profits and prejudgment interest, and the SEC agreed to credit any disgorged profits that Telia pays to the Swedish Prosecution Authority (SPA) or OM, up to half of the total. Telia agreed to pay the OM a criminal penalty of $274,000,000 for a total criminal penalty of $548,603,972, and a total resolution amount of more than $1 billion. The Department of Justice agreed to credit the criminal penalty paid to the OM as part of its agreement with the company. The SEC agreed to credit the $40 million in forfeiture paid to the Department as part of its agreement with the company. Thus, the combined total amount of criminal and regulatory penalties paid by Telia and Coscom to the U.S., Dutch, and Swedish authorities will be $965,773,949.
According to the companies’ admissions, Telia and Coscom, through various managers and employees within Telia, Coscom and affiliated entities, paid approximately $331 million in bribes to an Uzbek government official, who was a close relative of a high-ranking government official and had influence over the Uzbek governmental body that regulated the telecom industry. The companies structured and concealed the bribes through various payments including to a shell company that certain Telia and Coscom management knew was beneficially owned by the foreign official. The bribes were paid on multiple occasions between approximately 2007 and 2010, so that Telia could enter the Uzbek market and Coscom could gain valuable telecom assets and continue operating in Uzbekistan. Certain Telia and Coscom management also contemplated structuring an additional bribe payment in late 2012, after Swedish media began reporting about Telia’s corrupt payments in Uzbekistan, Swedish authorities began a criminal investigation and Telia opened an internal investigation.
A number of significant factors contributed to the Department’s criminal resolution with the companies. Among these, the companies received significant credit for their extensive remedial measures and cooperation with the Department’s investigation. Specifically, the criminal penalty reflects a 25 percent reduction off the bottom of the U.S. Sentencing Guidelines fine range. However, the companies did not receive more significant mitigation credit, either in the penalty or the form of resolution, because the companies did not voluntarily self-disclose their misconduct to the Department.
The resolution, reached in coordination with the SEC and authorities in the Netherlands, marks the second such resolution by a major international telecommunciations provider for bribery in Uzbekistan. On Feb. 18, 2016, Amsterdam-based VimpelCom Limited and its Uzbek subsidiary, Unitel LLC, also entered into resolutions with the Department of Justice and admitted to a conspiracy to make more than $114 million in bribery payments to the same Uzbek government official between 2006 and 2012. The investigation has thus far yielded a combined total of over $1.76 billion in global fines and disgorgement, including over $500 million in criminal penalties to the Department of Justice. In related actions, the Department has also filed civil complaints seeking the forfeiture of more than $850 million held in bank accounts in Switzerland, Belgium, Luxembourg and Ireland, which constitute bribe payments made by VimpelCom, Telia and a third telecommunications company, or funds involved in the laundering of those corrupt payments, to the Uzbek official.
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Law enforcement colleagues within the OM and the SPA provided significant cooperation and assistance in this matter. Law enforcement colleagues in Austria, Belgium, Cyprus, France, Ireland, Latvia, Luxembourg, Norway, Switzerland, the Isle of Man and the United Kingdom have also provided valuable assistance. The Criminal Division’s Office of International Affairs provided significant assistance, as well. The SEC referred the matter to the Department and also provided extensive cooperation and assistance.
The IRS-CI and ICE-HSI are investigating the cases as part of the IRS Global Illicit Financial Team in Washington, D.C. Senior Litigation Counsel Nicola J. Mrazek and Trial Attorney Ephraim Wernick of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Edward Imperatore of the Southern District of New York are prosecuting the criminal case, with substantial assistance from the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS). MLARS Trial Attorney Michael Khoo is prosecuting the forfeiture case with substantial assistance from the Fraud Section and former MLARS Trial Attorney Marie M. Dalton, now an Assistant U.S. Attorney in the Western District of Washington.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected].
Stockton Man Sentenced for Tax Refund FraudRead the Press Release
SACRAMENTO, Calif. — Tosh Babu, 33, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to two and a half years in prison for conspiracy to submit false claims, U.S. Attorney Phillip A. Talbert announced. Judge Nunley also ordered Babu to pay $94,451 in restitution to the IRS.
According to court documents, between September 28, 2010, and October 30, 2012, Babu conspired with others to submit tax returns to the IRS that falsely claimed that the persons named on the returns were entitled to tax refunds. The conspirators obtained the names, social security numbers, and other personal identifying information of various individuals and used that information, often without the knowledge of those people, to submit the tax returns in their names. Altogether, they submitted at least 1,367 false tax returns, requesting approximately $962,853 in tax refunds. The IRS paid more than $252,000 in fraudulent tax refunds as a result of the scheme.
“Mr. Babu took personal identifiable information (PII) from homeless individuals and used the PII for personal gain by preparing and filing false tax returns with IRS,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation. “He then negotiated those fraudulent tax refund checks by depositing them in bank accounts under the control of co-conspirators. Individuals thinking about participating in fraudulent tax schemes should consider the real consequences of these types of illegal actions. Those include going to prison, being branded a convicted felon for the rest of their lives, and paying back restitution to the IRS for all the taxes owed.”
Babu pleaded guilty on May 25, 2017. On July 14, 2017, co-defendant Christopher M. Grady, 35, of Stockton, was sentenced to three years of time already served in prison for conspiring to submit false claims to the Internal Revenue Service and aggravated identity theft. Co-defendant Jacob Cook, of Stockton, pleaded guilty on May 4, 2017. He was sentenced by Judge Nunley on September 7, 2017, to two and a half years in prison.
Co-defendant Jeffrey Grady, of Stockton, is next scheduled for a status hearing before Judge Nunley on December 14, 2017. The charges against him are allegations only, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Standish Man Sentenced to More than Five Years for Drug TraffickingRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Kyle Braga, 28, of Standish, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 63 months in prison and three years of supervised release for possessing with intent to distribute heroin, cocaine, and cocaine base, commonly known as “crack.” He pleaded guilty on April 4, 2017.
Court records reveal that on January 20, 2016, the defendant distributed cocaine. Following this distribution, law enforcement stopped his car and seized heroin, cocaine, and crack from a magnetic box under the car.
The investigation was conducted by the Maine Drug Enforcement Agency and the Federal Bureau of Investigation (FBI) in conjunction with the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, and Lewiston Police Departments.
Springfield Man Sentenced to Prison for Transporting Cocaine to ConnecticutRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ROLANDO PINO-MARTINEZ, 29, of Springfield, Mass., was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 18 months of imprisonment, followed by three years of supervised release, for his role in a cocaine trafficking conspiracy.
According to court documents and statements made in court, in the fall of 2015, the DEA New Haven Task Force initiated an investigation into a cocaine trafficking organization headed by Halby Lopez, also known as “Harv,” of New Haven. Omar Polanco-Mendez and Bernardo Roman-Rolan served as Lopez’s second and third in command, respectively. The investigation revealed that Lopez, Polanco-Mendez and Roman-Rolan were obtaining bulk quantities of cocaine from multiple suppliers and redistributing the cocaine to a network of New Haven-area street-level dealers. The investigation included court-authorized wiretaps, controlled purchases of drugs and the seizure of multiple kilograms of cocaine.
Between January 2016 and March 2016, Lopez, with the assistance of Polanco-Mendez, arranged for the delivery of approximately seven kilograms of cocaine. Lopez used the La Familia Barber Shop located on Howard Avenue in New Haven, which he owned and operated, to distribute cocaine.
PINO-MARTINEZ acted as a courier for a Springfield-based cocaine supplier. On February 11, 2016, investigators learned that PINO-MARTINEZ would be making a delivery of cocaine to the Lopez organization, which Polanco-Mendez had arranged. At approximately 9:00 p.m. on that date, the Connecticut State Police stopped PINO-MARTINEZ’s vehicle on I-91 South in Meriden. A subsequent search of the car revealed two kilograms of cocaine that were concealed in a cereal box.
PINO-MARTINEZ was arrested on federal charges on March 16, 2016. On March 24, 2016, a grand jury in New Haven returned a 13-count indictment charging PINO-MARTINEZ, Lopez, Polanco-Mendez, Roman-Rolan and six other individuals with various narcotics offenses. On October 4, 2016, PINO-MARTINEZ pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
All of the 10 defendants in this case pleaded guilty, and PINO-MARTINEZ is the last to be sentenced.
Lopez and Polanco-Mendez are currently serving prison terms of 10 years, and Roman-Rolan is serving a 68-month prison term.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This matter was prosecuted by Assistant U.S. Attorneys Patrick Caruso and Jennifer Laraia.Serial Bank Robber Receives 15 Year Plus Prison SentenceRead the Press Release
G.F. Peterman, IIII, United States Attorney for the Middle District of Georgia, announced that Quinn Morgan of Milledgeville, GA, age 60, was sentenced in Macon by the Honorable Marc Treadwell, United States District Judge, to 188 months imprisonment for multiple counts of bank robbery in this district and elsewhere. There is no parole in the federal system.
Between May 2, 2016 and June 28, 2016, Mr. Morgan robbed the BB&T Bank located at 201 Second Street, Macon, GA; the CGR Credit Union located in the Navicent Health Center (formerly the Medical Center of Central Georgia) located at 770 Pine St., Macon, GA; and the Robins Financial Credit Union located at 577 Mulberry Street, Macon, GA. He would enter the bank/credit unions wearing different clothing and present a note demanding money. Bibb County Sheriff’s deputies arrested Mr. Morgan within minutes of the Robins Financial Credit Union robbery.
After his arrest, FBI agents discovered that Mr. Morgan had committed other bank robberies outside of the Middle District of Georgia. It was determined that on February 12, 2016, he had robbed the Day Air Credit Union located at 4100 West Third Street, Dayton, OH; the Wells Fargo bank located at 12830 Highway 9 North, Alpharetta, GA on June 3, 2016; and the SunTrust Bank located at 3020 Peachtree Road, NE, Atlanta, GA on September 29, 2015.
For each of the robberies, Mr. Morgan would attempt to disguise his appearance and present a note demanding money from the bank teller.
After his arrest by Bibb County deputies, Mr. Morgan confessed to all of the robberies.
“It was the excellent police and investigative work by the Bibb County Sheriff’s Office and the FBI that led to the capture of this serial robber and brought his nine month crime spree to an end,” said United States Attorney Peterman. “It is good to know that Mr. Morgan will not be able to feed his addiction to other people’s money for the next one and a half decades.”
“The Bibb County Sheriff’s Office is proud of the swift action by our deputies to arrest this serial bank robber, which has resulted in him being put behind bars for over a decade,” said Sheriff David J. Davis.
“Thanks to a quick response by Bibb County Sheriff deputies, a string of bank robberies that would have surely continued, was ended,” said David J. LeValley, Special Agent in Charge of the Atlanta FBI Field Office. “And thanks to a thorough investigation by FBI Agents and Bibb County after that arrest, Mr. Morgan’s lengthy spree of bank robberies was uncovered, ending in a prison sentence that will give him plenty of time to think about changing his path in life.”
The case was investigated by Bibb County Sheriff’s Office and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Michael T. Solis handled the prosecution for the Department of Justice.
Questions concerning this case should be directed to Pam Lightsey, Public Affairs Specialist, United States Attorney’s Office, at (478) 621-2603.
Schenectady Man Sentenced for Crack Cocaine DistributionRead the Press Release
SYRACUSE, NEW YORK – James Hileman, age 29, of Schenectady, New York, was sentenced today to 120 months in prison for distributing crack cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Special Agent in Charge Vadim D. Thomas of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Frederick J. Scullin, Jr. also imposed an 8-year term of supervised release, to begin after Hileman’s release from prison.
As part of his guilty plea, Hileman admitted that in March 2015, he sold more than 28 grams of crack cocaine to another person. At the time, he had multiple, prior drug felony convictions and was on parole.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, and was prosecuted by Assistant United States Attorney Wayne A. Myers.
San Antonio Man Sentenced to Federal Prison for Scheme to Defraud the Veterans Affairs Disability Compensation ProgramRead the Press Release
In San Antonio this morning, a federal judge sentenced 54-year-old Mack Cole, Jr., to 27 months in federal prison for scheming to defraud the Department of Veterans Affairs Disability Compensation Program announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that Cole pay $375,055.85 restitution to the Veteran’s Benefit Administration and $59,538.60 restitution to the Veterans Health Administration. Judge Garcia also ordered that Cole be placed on supervised release for a period of three years after completing his prison term.
On June 14, 2017, a federal jury convicted Cole on four counts of health care fraud and two counts of making false statements in a matter involving a health care benefit program.
Evidence presented during trial revealed that Cole, who was deployed with the Kansas Army National Guard to Kosovo in 2004, injured his lower back in a state-side training accident prior to the deployment.
In 2006, Cole was granted military retirement and was later deemed eligible for monthly benefits as a retired disabled veteran. The jury found that Cole misrepresented the severity of his service-connected injuries in order to collect a higher level of benefits, adaptations to his residence, and extensive durable medical equipment.
Special Agents of the Department of Veterans Affairs Office of Inspector General (VA OIG) conducted video surveillance of Cole, who represented to his VA physicians that he was not able to walk. Over the course of several months, Special Agents of the VA OIG recorded video of Cole mowing his front lawn, walking around his driveway and lawn without assistance, and otherwise demonstrating that he had the ability to walk.
Special Agents with the VA OIG investigated this case. Assistant United States Attorney Bud Paulissen prosecuted this case on behalf of the Government.
San Antonio Man Sentenced to 151 Months in Federal Prison for Distribution of Child PornographyRead the Press Release
In San Antonio this morning, 58-year-old Theodore Edward DeAubrey was sentenced to 151 months in federal prison for distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that DeAubrey pay a total of $30,000 restitution to six known victims depicted in the images he distributed. Judge Garcia also ordered that DeAubrey be placed on supervised release for a period of three years after completing his prison term.
DeAubrey was the subject of an undercover child pornography investigation conducted by the FBI. On January 15, 2016, agents executed a search warrant and seized the defendant’s home computer. Upon examination, agents discovered the computer contained approximately 200 files, mostly video files, depicting child pornography.
On November 15, 2016, DeAubrey pleaded guilty to the distribution charge. By pleading guilty, DeAubrey admitted to distributing approximately 1,500 files on April 10, 2015, most of which depicted prepubescent children, including toddlers, engaged in sexually explicit conduct.
Assistant United States Attorneys Tracy Thompson and Diana Cruz-Zapata prosecuted this case on behalf of the Government.
Rock Island Man Sentenced to More than Eight Years in Prison on Federal Firearms ChargesRead the Press Release
ROCK ISLAND, Ill. – A Rock Island, Ill., man has been sentenced to serve a total of 100 months (8 years, 4 months) in prison for being a felon in possession of a firearm and for possessing a firearm in furtherance of drug trafficking.
Chief U.S. District Judge James E. Shadid ordered Tyheme Tarkett Robertson, 28, of the 3000 block of 24th Street, Rock Island, to serve 40 months in federal prison on the felon in possession of a firearm count, to be followed by a consecutive 60 months in prison for possession of a firearm in furtherance of a drug trafficking crime. Following his release from prison, Robertson was ordered to serve a three year term of supervised release. At the conclusion of the sentencing hearing, Robertson was remanded to the custody of the U.S. Marshals Service.
In court documents and statements, Robertson admitted that on Dec. 20, 2016, he possessed a Smith & Wesson .40 pistol and a Cobray M-11 9mm pistol with an obliterated serial number in furtherance of his drug trafficking operation. Robertson also admitted that he possessed both firearms after being previously convicted of a felony offense in the State of Iowa.
The case was prosecuted by Assistant U.S. Attorney John Mehochko, and the charges were the result of an investigation by the Rock Island Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Reynoldsburg Man Pleads Guilty to Defrauding 44 Clients out of More Than $1.4 MillionRead the Press Release
COLUMBUS, Ohio – Edward I. Campbell, 41, of Reynoldsburg, Ohio, pleaded guilty in U.S. District Court today to charges related to a $1.4 million investment fraud scheme that defrauded at least 44 individuals. Specifically, he pleaded guilty to one count of money laundering and one count of wire fraud.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Michael H. Watson.
According to court documents, between July 2011 and June 2013 Campbell operated an investment business known as Rosewood Consulting LLC in Baltimore, Ohio. Campbell told victims their contributions would be invested through Rosewood Consulting into two types of investment programs: historical bonds issued by China and the exchange of Bougainville Kina – currency from the autonomous region of Bougainville, Papua New Guinea – into U.S. dollars.
Campbell represented that he had access to a trading platform in which he could monetize gold-backed bonds issued by China in 1913 for a very high return. Campbell offered to sell the historical bonds to investors for $10,000 to $15,000 each for a promised return on investment of anywhere from $50,000 to upwards of possibly $10 million per bond within 10 to 60 days.
Campbell also offered to exchange the Bougainville Kina, which he allegedly possessed, into U.S. dollars if the investors hired him for a $100,000 fee. The investors were supposed to receive a return of $1.5 million or more within 10 to 120 days.
Campbell told investors that their investments were refundable if the returns were not paid within the provided timeframes. In addition, he told investors that he had prior success with these investment programs, was a former Navy SEAL, once worked in an investment house, had traveled internationally closing deals and he had nearly 600 investors.
The investigation revealed that none of the investors received the returns on their investments that Campbell had promised. Only a few of the 44 investors have been refunded the money they paid for his services and those refunds were paid for with other investors’ funds.
Campbell usually depleted the funds he received from investors shortly after receiving them, by using the funds for personal expenses, including the purchase of two automobiles and expenses at hotels and restaurants.
As part of his plea agreement, Campbell has agreed to pay $1,408,854 in restitution.
Money laundering in this case is punishable by up to 20 years in prison and wire fraud is punishable by up to 10 years in prison.
“A person who creates a web of financial lies will soon be caught up in it. Edward Campbell offered higher rates of return than normal to his clients and unfortunately these were false promises,” said Ryan L. Korner, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Glassman commended the investigation of this case by the IRS and FBI, as well as Assistant United States Attorney Jessica H. Kim, who is representing the United States in this case.
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