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20 September 2017
Miami Physician Sentenced to 97 Months for Role in Pain Pill Diversion and $4.8 Million Medicare Fraud SchemeRead the Press Release
A Miami physician was sentenced today to 97 months in prison and three years of supervised release, for his role in a $4.8 million health care fraud scheme that involved the submission of false and fraudulent claims to Medicare and the illegal prescribing of controlled substances, including oxycodone and hydrocodone.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.
Roberto A. Fernandez, M.D., 51, of Miami, was sentenced by U.S. District Judge Cecelia M. Altonaga of the Southern District of Florida. Judge Altonaga also ordered Fernandez to pay $4.8 million in restitution, jointly and severally with his co-conspirators. Fernandez pleaded guilty on July 11, to one count of conspiracy to commit health care fraud and wire fraud in connection with a scheme, that ran from April 2011 to February 2017, involving the submission of false and fraudulent claims to Medicare and the illegal prescribing of controlled substances, including oxycodone, hydrocodone and alprazolam.
As part of his guilty plea, Fernandez admitted that he referred Medicare beneficiaries to pharmacy owners in exchange for illegal health care kickbacks. Fernandez admitted knowing that the pharmacy owners were billing and receiving reimbursements from Medicare for prescription drugs based upon the prescriptions he sold, and that many of his prescriptions were medically unnecessary. For example, he admitted providing prescriptions for expensive, name brand drugs, including HIV/AIDS medications that conflicted with other HIV drugs already prescribed to the beneficiaries.
Fernandez also solicited referrals of Medicare beneficiaries to his own practices from his co-conspirators, he admitted, including submitting claims to Medicare under his Part B provider number for services he did not, in fact, render. Additionally, Fernandez admitted to receiving kickbacks in return for signing plans of care and prescriptions for medically unnecessary home health services.
Fernandez further admitted that he prescribed controlled substances, including addictive opioids, to patients and patient recruiters in return for $100 to $200 cash per prescription. Fernandez admitted that he knew these patients did not need the controlled substances he prescribed, and that he would sometimes write prescriptions for controlled substances for patients whom he did not even examine.
The FBI, HHS-OIG and USSS investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Assistant U.S. Attorney Lisa H. Miller of the Southern District of Florida and a former Fraud Section trial attorney, and Fraud Section Trial Attorney Adam G. Yoffie are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Mexican Citizen Extradited to South Carolina to Face Federal Drug ChargesRead the Press Release
Charleston, South Carolina ---- United States Attorney Beth Drake stated today that David Geisbrecht Fehr, a/k/a “Oscar Silva Leamon”, a/k/a “El Ingeniero”, age 44, of Chihuahua, Mexico was charged in a 1-count indictment. David Geisbrecht Fehr was charged with conspiracy to possess with intent to distribute and to distribute 5 kilograms or more of cocaine, a violation of Title 21, U. S. C. Sections 841 and 846. The maximum penalty Fehr could receive is life imprisonment and a maximum fine of $10,000,000.
United States Attorney Drake stated, “The extradition of Mr. Fehr from Mexico to face these charges in South Carolina is the result of a tremendous coordinated effort by our office and law enforcement to hold accountable those responsible for putting narcotics on the streets of our state.” Jason Sandoval, Resident Agent in Charge of the DEA Charleston office stated, “Mr. Fehr’s extradition is a result of dedication and commitment of prosecutors and law enforcement on both sides of the border. Mr. Fehr must now account for alleged criminal conduct during his day in court. Anyone seeking to evade justice should take note of this extradition: justice never sleeps.” “This investigation was a collaborative effort of federal and international law enforcement working together to arrest a dangerous drug smuggler who thought he was safe in Mexico,” added Thomas Henman, Chief Deputy U.S. Marshal.
The case was investigated by agents of the Drug Enforcement Administration and the United States Marshals Service and is assigned to Assistant United States Attorney Nick Bianchi of the Charleston office for prosecution. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter. The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Meth Conspirator Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Damon Curtis Chisholm, 42, a resident of Mobile County, was sentenced today in federal court on charges involving his participation in a methamphetamine distribution conspiracy and for aiding and abetting one of the co-conspirators, a convicted felon, in possession of firearms. Chisholm pled guilty to the charges in May of 2017.
United States District Court Judge William H. Steele sentenced Chisholm to 24 months imprisonment on each charge, which will run concurrently, to be followed by a four-year term of supervised release. Chisholm will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, but the judge ordered that Chisholm pay $200 in special mandatory assessments.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Mesa Man Sentenced to over 20 Years in Federal Prison for Second Degree Murder and Aggravated Assault Related to Drunk DrivingRead the Press Release
PHOENIX – On Sept. 19, 2017, Hale Nahsonhoya, 22, of Mesa, Ariz., and a member of the Salt River Pima-Maricopa Indian Community, was sentenced by U.S. District Judge G. Murray Snow to 250 months in prison (20 years and 10 months) followed by five years of supervised release. Nahsonhoya had previously pleaded guilty to second degree murder and aggravated assault.
The case involved Nahsonhoya driving his vehicle with extreme, reckless disregard for human life, causing a multi-vehicle crash. As a result of Nahsonhoya’s actions, one man, who was driving his car to church band practice, was killed instantly. A woman in a third vehicle was seriously injured, hospitalized, and suffered long-term injuries.
This incident happened on a busy intersection on the Salt River Indian Reservation, McKellips and Longmore Roads in Scottsdale, Ariz. At approximately 4:45 p.m., in rush hour traffic, Nahsonhoya was driving his vehicle with his juvenile brother as a passenger. Nahsonhoya had a blood alcohol content of over .215. He was driving in excess of 85 MPH in a 35 MPH zone. Just before the crash, Nahsonhoya sped his vehicle to ignore and race through a stop sign. He did not attempt to stop his vehicle even seconds prior to impact.
The wife of the deceased victim came to court and paid tribute to her husband of 30 years, highlighting for Judge Snow her husband’s kind-hearted, selfless, and loving life. She explained to Judge Snow the devastation caused by her husband’s death.
The investigation in this case was conducted by the Salt River Police Department. The prosecution was handled by Heather Sechrist and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-0047-PHX-GMS
RELEASE NUMBER: 2017-091_ Nahsonhoya
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Mercer County Man Pleads Guilty to Fraud ChargesRead the Press Release
PITTSBURGH - A Mercer County resident pleaded guilty in federal court to charges of wire fraud and engaging in monetary transactions in property derived from specified unlawful activity, Acting United States Attorney Soo C. Song announced today.
Jeffrey T. Lewis, 48, waived indictment and pleaded guilty to a two-count Information before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that Lewis fraudulently solicited funds for investments but used those funds to pay off business losses, gambling and personal expenses.
Judge Cercone scheduled sentencing for January 5, 2018, at 11 a.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation and United States Secret Service conducted the investigation that led to the prosecution of Lewis.
Marijuana Dealer Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Adam Khan Le, 36, of Panama City, Florida, was sentenced today in federal court on a charge involving his participation in a scheme to grow and distribute marijuana. Le pled guilty to the charge in May of 2017.
United States District Court Judge William H. Steele sentenced Le to a year and a day in prison on the conspiracy charge, to be followed by a four-year term of supervised release. Le will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, but the judge ordered that Le pay the mandatory $100 special assessment and that Le forfeit any interest in the properties alleged to have facilitated the illegal activity.
The case was investigated by the Mobile County Sheriff’s Office, the Alabama Law Enforcement Agency and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Louisiana Woman Charged with Wire Fraud and Aggravated Identity Theft in Connection with Fraudulent Scheme to Obtain Disaster AssistanceRead the Press Release
Acting United States Attorney Corey R. Amundson, who serves as the Acting Executive Director of the National Center for Disaster Fraud, announced today that a federal grand jury for the Middle District of Louisiana has charged a Louisiana woman with wire fraud and aggravated identity theft for allegedly attempting to obtain over $150,000 in Federal Emergency Management Agency (FEMA) funds in relation to the 2016 Baton Rouge flooding.
Following the 2016 flooding that affected 12 parishes in south Louisiana, FEMA funds were available to people who became unemployed because of the flood. The funds were administered by the Louisiana Workforce Commission in the form of Disaster Unemployment Assistance (DUA).
The six-count indictment returned today charges RENATA FOREMAN, age 37, of Independence, Louisiana, with devising a scheme to defraud and to obtain money and property from FEMA by means of materially false and fraudulent pretenses. The indictment alleges that FOREMAN obtained the identities of approximately 62 individuals, including names, dates of birth, and social security numbers. Then, using these stolen identities, FOREMAN submitted approximately 55 fraudulent claims for disaster unemployment assistance. According to the indictment, FOREMAN attempted to obtain over $150,000 in DUA funds. If convicted, FOREMAN could face a significant prison term, fines, and restitution.
Acting U.S. Attorney Corey R. Amundson stated, “No matter what storm or disaster we face next, natural or man-made, we will continue to identify, arrest and prosecute fraudsters who are taking advantage of and exploiting vulnerable people who have been affected by these devastating natural disasters. The United States Attorney’s Office for the Middle District of Louisiana, together with the National Center for Disaster Fraud and our federal, state, and local law enforcement partners, is working diligently to root out fraudulent claims for assistance and ensure that government funds are available to those who truly are in need.”
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud.
This matter is being investigated by the U.S. Department of Labor, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Pete Smyczek.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Lorton Man Convicted of Attempted Armed Robbery and Discharge of a FirearmRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Lorton, Virginia man yesterday on charges of attempted robbery, attempted possession of marijuana with intent to distribute, and the use and discharge of a firearm during those crimes.
According to court records and evidence presented at trial, Thomas Todd, 33, conspired to rob a drug dealer at gunpoint in the basement of an apartment building in Lorton. The drug dealer arrived at the apartment building with an armed associate on June 24, 2016, and a shootout occurred in the lobby in the middle of the night.
Todd faces a mandatory minimum of 10 years in prison and a maximum sentence of life in prison when sentenced on January 19, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul D. Vanderplow, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict. Assistant U.S. Attorney Jonathan Fahey and Special Assistant U.S. Attorneys Ankush Khardori and Samuel Lord are prosecuting 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-24.
Lewiston Man Sentenced to Five Years for Credit Union RobberyRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Brent Roaix, 33, of Lewiston, Maine was sentenced today in U.S. District Court by Judge Jon D. Levy to five years in prison and three years of supervised release for robbery of a credit union.
According to court records, on January 25, 2017, Roaix entered a Rainbow Federal Credit Union in Lewiston and gave a handwritten note to a teller demanding money and stating that he was armed. The teller gave him money and Roaix absconded on foot. Shortly thereafter, Lewiston police officers found him hiding in a nearby apartment, arrested him, and recovered all of the stolen money. According to evidence introduced at sentencing, at the time of the robbery, Roiax was a participant in Maine’s Adult Drug Treatment Court because he had committed two credit union robberies in 2014, one of which was of the same credit union.
This investigation was conducted by the Lewiston Police Department and the Federal Bureau of Investigation.
Law Enforcement and Community Members United Against Hate and Intolerance at a Special Event Held at California State University, BakersfieldRead the Press Release
BAKERSFIELD, Calif. — On Tuesday, over 600 people gathered to watch a movie telling the story of one of the deadliest hate crimes in recent U.S. history. The screening, which was held at Dore Theater on the CSU Bakersfield campus, was followed by a discussion between representatives from law enforcement agencies and community leaders, U.S. Attorney Phillip A. Talbert announced.
The acclaimed film, “Waking in Oak Creek,” tells the empowering story of how the community of Oak Creek, Wisconsin responded when six worshipers at a Sikh Temple were killed by a white supremacist during prayer services in 2012. The entire community and law enforcement worked together to overcome tragedy and stand up to hate.
U.S. Attorney Talbert stated: “In the aftermath of the deadly attack on the Sikh gurdwara in Oak Creek, Wisconsin, the entire community rallied together to turn tragedy into an opportunity to unite against hate. The community found positive and inclusive ways to commemorate the victims, which included Sikh worshippers as well as law enforcement officers, and to raise awareness about hate crimes, particularly those directed at Sikhs. I am proud that my office could host a screening of the film that documents that community’s inspiring response to hate and facilitate a discussion about how our community can work together to prevent these crimes from happening in our district.”
The U.S. Attorney’s Office organized this event in partnership with the FBI; the Bakersfield Sikh Community; Sikh Riders of America; Islamic Shoura Council of Bakersfield; California State University Bakersfield, including the School of Social Sciences and Education, the Departments of Criminal Justice, Political Science, and Sociology, the University Police Department, and the Kegley Institute of Ethics; Bakersfield Police Department; Kern County Sheriff’s Office; and the Kern County District Attorney’s Office.
After the screening of the 33-minute film, Kirk Sheriff, chief of the U.S. Attorney’s Office in Fresno, moderated a panel discussion where law enforcement officials and Sikh and Muslim Community leaders offered their perspectives on identifying opportunities and strategies to collaborate in the fight against hate. The panel members were FBI Special Agent in Charge Sean Ragan, Sikh community representative Mandeep Singh Chahal, President of the Islamic Shoura Council of Bakersfield Ollie Zachary, Bakersfield Police Chief Lyle Martin, Kern County Undersheriff Brian Wheeler, and Kern County District Attorney Lisa Green.
The panel discussion was followed by a lively and collaborative question and answer session that gave attendees the opportunity to engage with panelists and have their voices heard on this important issue.
“Waking in Oak Creek” was produced in conjunction with the U.S. Department of Justice COPS Office as part of the Not In Our Town: Working Together for Safe, Inclusive Communities Initiative. Follow this link to view the documentary in full.
BAKERSFIELD, Calif. — On Tuesday, over 600 people gathered to watch a movie telling the story of one of the deadliest hate crimes in recent U.S. history. The screening, which was held at Dore Theater on the CSU Bakersfield campus, was followed by a discussion between representatives from law enforcement agencies and community leaders, U.S. Attorney Phillip A. Talbert announced.
The acclaimed film, “Waking in Oak Creek,” tells the empowering story of how the community of Oak Creek, Wisconsin responded when six worshipers at a Sikh Temple were killed by a white supremacist during prayer services in 2012. The entire community and law enforcement worked together to overcome tragedy and stand up to hate.
U.S. Attorney Talbert stated: “In the aftermath of the deadly attack on the Sikh gurdwara in Oak Creek, Wisconsin, the entire community rallied together to turn tragedy into an opportunity to unite against hate. The community found positive and inclusive ways to commemorate the victims, which included Sikh worshippers as well as law enforcement officers, and to raise awareness about hate crimes, particularly those directed at Sikhs. I am proud that my office could host a screening of the film that documents that community’s inspiring response to hate and facilitate a discussion about how our community can work together to prevent these crimes from happening in our district.”
The U.S. Attorney’s Office organized this event in partnership with the FBI; the Bakersfield Sikh Community; Sikh Riders of America; Islamic Shoura Council of Bakersfield; California State University Bakersfield, including the School of Social Sciences and Education, the Departments of Criminal Justice, Political Science, and Sociology, the University Police Department, and the Kegley Institute of Ethics; Bakersfield Police Department; Kern County Sheriff’s Office; and the Kern County District Attorney’s Office.
After the screening of the 33-minute film, Kirk Sheriff, chief of the U.S. Attorney’s Office in Fresno, moderated a panel discussion where law enforcement officials and Sikh and Muslim Community leaders offered their perspectives on identifying opportunities and strategies to collaborate in the fight against hate. The panel members were FBI Special Agent in Charge Sean Ragan, Sikh community representative Mandeep Singh Chahal, President of the Islamic Shoura Council of Bakersfield Ollie Zachary, Bakersfield Police Chief Lyle Martin, Kern County Undersheriff Brian Wheeler, and Kern County District Attorney Lisa Green.
The panel discussion was followed by a lively and collaborative question and answer session that gave attendees the opportunity to engage with panelists and have their voices heard on this important issue.
“Waking in Oak Creek” was produced in conjunction with the U.S. Department of Justice COPS Office as part of the Not In Our Town: Working Together for Safe, Inclusive Communities Initiative. Follow this link to view the documentary in full.
Laredo Woman Heads to Prison for Smuggling Drugs Through Port of EntryRead the Press Release
LAREDO, Texas – A 23-year-old woman has been sentenced for her role in a conspiracy to possess with intent to distribute and possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Guadalupe Vazquez, of Laredo, pleaded guilty May 5, 2017.
Today, U.S. District Judge Diana Saldaña ordered Vazquez to serve a total of 18 months in federal prison to be immediately followed by three years of supervised release.
On Dec. 19, 2015, Vazquez took part in a conspiracy to smuggle 30 kilograms of liquid methamphetamine through the IH-35 checkpoint near Laredo. She was driving a 2003 BMW sedan in which 30 kilograms of liquid methamphetamine was found inside the gas tank of the vehicle.
Vazquez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Joplin Man Involved in Day Care Operation Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man who lived in the same apartment where his girlfriend operated a daycare business was indicted by a federal grand jury today for receiving and distributing child pornography over the Internet.
Kent G. Hagan, 52, of Joplin, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Hagan on Aug. 25, 2017. Hagan remains in federal custody without bond.
The indictment alleges that Hagan received and distributed child pornography over the Internet from Aug. 7 to Aug. 22, 2017.
According to an affidavit filed in support of the original criminal complaint, Hagan was living with his girlfriend, who operated an unlicensed day care at her residence. The police department received a tip on Aug. 21, 2017, that Hagan had images of child pornography on his cell phone. His girlfriend kicked him out of the residence, the affidavit says, but he had recently moved back in.
When law enforcement officers interviewed Hagan’s girlfriend, she told them that Hagan had stayed at her residence with the children when she was not present. She also told investigators that she has three minor children of her own and usually cares for four to six children at a time. Hagan’s girlfriend said she found “creepy” images of two young children she babysat for on Hagan’s cell phone and deleted them.
A forensic examination of Hagan’s cell phone found 809 images depicting children as young as toddlers in sexually provocative poses, 69 images that depicted anime child pornographic images and 11 images of suspected child pornography.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Joplin, Mo., Police Department and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jersey City Police Officer Admits Bribery Conspiracy Involving Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, police officer today admitted paying bribes in order to obtain compensation for off-duty work he did not perform, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael O’Leary, 35, of Jersey City, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit bribery.
According to documents filed in this case and statements made in court:
Private contractors and utility companies sometimes needed the services of off-duty Jersey City police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. O’Leary was an officer who was eligible to perform off-duty work.
From November 2013 through April 2016, O’Leary engaged in a conspiracy in which he made bribe payments to another Jersey City officer who was authorized to assign off-duty work, in exchange for that officer’s official assistance in submitting phony vouchers to Jersey City indicating that O’Leary had completed certain off-duty assignments. As a result, O’Leary was compensated for work he never performed.
O’Leary faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, he must also forfeit $39,587 he made as part of the conspiracy. Sentencing is set for Jan. 3, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, with the investigation.
The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: John Lynch Esq., Union City, New Jersey
Jefferson County woman admits to filing a false tax returnRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Ranson, West Virginia woman pled guilty today to filing a false tax return, Acting United States Attorney Betsy Steinfeld Jividen announced.
Christina Jacobs, age 42, pled guilty to one count of “Filing a False Tax Return.” Jacobs admitted to filing an Income Tax Return for her and her husband in 2012, willfully understating her income from 9 West Hair Studio by approximately $32,030.70, resulting in an unpaid tax due and owing of approximately $9,394.00.
Jacobs faces up to three years incarceration and a fine of up to $100,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Internal revenue Service investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jefferson County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Harper’s Ferry, West Virginia man pled guilty today to a firearms charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Joshua Craig Grove, age 37, pled guilty to one count of “False Statement During the Purchase of a Firearm.” The crime occurred on September 11, 2015 in Jefferson County.
Grove faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Indictment: Colorado Man Robbed Bank in Manhattan, Kan.Read the Press Release
TOPEKA, KAN. – A Colorado man already serving time for a bank robbery in Arkansas was indicted here Wednesday on charges he robbed a bank in Manhattan, Kan., U.S. Attorney Tom Beall said.
Kenneth Wayne Fisher, Jr., 41, formerly of Colorado Springs, Colo., is charged with one count of bank robbery. The indictment alleges that on Aug. 26, 2015, Fisher robbed Sunflower State Bank at 2710 Anderson Ave. in Manhattan.
A few months after the Manhattan robbery, Fisher was arrested in California. He was extradited to Arkansas to face charges of robbing a bank in Bentonville, Ark., on Aug. 28, 2015. He pleaded guilty and was sentenced earlier this month to more than eight years in federal prison for the Arkansas robbery.
The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Ryan Andrew Rivera, 21, Lawrence, Kan., is charged in a superseding indictment with three counts of using a child to produce child pornography, one count of distributing child pornography, and one count of committing the crimes while required to register as a sex offender. The crimes are alleged to have occurred in January 2016 in Lawrence, Kan.
If convicted, he faces not less than 15 years and not more than 30 years on each of the first three counts, and not less than five years and not more than 20 years and a fine up to $250,000 on the distribution count, and not less than five years on the charge of committing a crime against a minor while being required to register as a sex offender. The FBI investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Raphael J. Richmond, 26, Topeka, Kan., was charged with two counts of unlawful possession of a firearm following a felony conviction, and one count of unlawful possession of a stolen firearm. The crimes are alleged to have occurred in June and August 2017 in Shawnee County, Kan.
If convicted, he faces up to 10 years in federal prison on each count and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Identity Thief Heads to PrisonRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old resident of Luling has been sentenced in Corpus Christi federal court for identity theft, announced Acting United States Attorney Abe Martinez. Joey Ornelas, 38, pleaded guilty May 26, 2017.
Today, U.S. District Judge Nelva Gonzales Ramos imposed a mandatory 24-month prison term to be immediately followed by one year of supervised release. At He was further ordered to pay nearly $4,000 in restitution.
During a traffic stop, authorities observed what they believed to be a counterfeit driver’s license. The license bore the name and driver’s license number of another person but displayed Ornelas’ photograph. Law enforcement conducted a search of his vehicle and discovered more than 20 additional counterfeit Texas Driver’s licenses. They also found fraudulent checks with names matching those on the counterfeit licenses but bearing the account and routing numbers of other individuals. Some of the checks and identities were linked to previous fraudulent purchases from around the state.
Also in his vehicle was equipment to produce high quality counterfeit checks including magnetic inks along with materials for creating fraudulent Texas driver’s licenses needed to pass counterfeit checks. Authorities determined Ornelas was receiving photographs of authentic driver’s licenses of unsuspecting victims from co-conspirators which he would use in the production of the counterfeit licenses.
At the time of his guilty plea, Ornelas admitted he had knowingly used the identification of others to facilitate the commission of his crimes.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service conducted the investigation with the assistance of the George West Police Department. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Idaho Falls Man Sentenced to 132 Months for Receiving Child PornographyRead the Press Release
POCATELLO Clay Ross, 55, of Idaho Falls, Idaho, was sentenced yesterday in United States District Court to 132 months in federal prison for receiving sexually explicit images of minors, followed by 10 years of supervised release, Acting U.S. Attorney Rafael Gonzalez announced. Chief U.S. District Judge B. Lynn Winmill also ordered Ross to pay a $5,100 special assessment. Ross pleaded guilty to the crime on May 24, 2017.
According to the plea agreement, law enforcement agents downloaded over 100 sexually exploitative images and videos of minors from an individual later identified as Ross. A subsequent search of Ross’s home and electronic devices revealed he possessed approximately 688 images and 47 videos of child pornography.
The case was investigated by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Federal Bureau of 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.”
Hartford Man Who Distributed Fentanyl Involved in Overdose Death of East Haddam Teen Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HECTOR RAUL CINTRON, also known as “G” and “Big G,” 23, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by three years of supervised release, for distributing fentanyl involved in an overdose of an East Haddam resident last year. Judge Bryant also ordered CINTRON to pay restitution to the victim’s family to cover the victim’s funeral expenses.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the morning of March 19, 2016, Connecticut State Police and emergency medical personnel responded to a residence in East Haddam on the report of an “untimely death.” The victim, an 18-year-old male, was pronounced dead at the scene. At the scene, State Police seized the victim’s cell phone and multiple glassine bags containing powder residue. The investigation revealed that Kerry Scanlan, of Avon, arranged to purchase heroin from CINTRON in Hartford. On March 18, 2016, the victim drove to Avon, picked up Scanlan and then drove to Hartford to purchase heroin from CINTRON.
On April 4, 2016, the Office of the Chief Medical Examiner issued a report listing the victim’s cause of death as “acute fentanyl intoxication.”
On two occasions in November 2016, CINTRON sold approximately 200 bags of heroin to an individual working with law enforcement.
CINTRON was arrested on December 15, 2016. On June 6, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
CINTRON, who is released on a $50,000 bond, was ordered to report to prison on November 1.
Scanlan pleaded guilty to a related charge and awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force East, and East Haddam Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Hartford Man Sentenced to 5 Years in Prison for Distributing Heroin Involved in Enfield Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AARON GYAMBIBI, also known as “E,” 27, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by five years of supervised release, for distributing heroin involved in an overdose death in Enfield last year.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on May 7, 2016, a 31-year-old male died of suspected drug overdose at an Enfield residence. Enfield Police seized a quantity of heroin and narcotics paraphernalia from the scene.
The Office of the Chief Medical Examiner for the State of Connecticut subsequently determined that the victim died from acute heroin and fentanyl toxicities.
The investigation, which included analysis of the victim’s cellphone, revealed that the heroin ingested by the victim shortly before his death was purchased from GYAMBIBI.
GYAMBIBI has been detained since his arrest on November 16, 2016. On March 23, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This matter was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the Enfield Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Gray Man Sentenced to 15 Months for Illegal Firearm PossessionRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Matthew Feehan, 30, of Gray, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby, to 15 months in prison for being a felon in possession of a firearm.
According to court records, in September and October 2015, the defendant possessed a Sig Sauer 9mm semi-automatic pistol. Feehan was prohibited from possessing the firearm because of a prior felony conviction for theft.
The case was investigated by the Maine State Police; the Central Maine Violent Crime Task Force; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Gila River Man Sentenced to over 21 Years in Prison for MurderRead the Press Release
PHOENIX – On Sept. 19, 2017, Gabriel Michael Alvarez, 25, of Sacaton, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge G. Murray Snow to 262 months in prison. Alvarez had previously pleaded guilty to second-degree murder. Also sentenced was Roger Matthew James, of Chandler Heights, Ariz., 27, also a member of the Gila River Indian Community, to 15 years in prison for discharge of a firearm during a crime of violence, after previously pleading guilty.
The investigation in this case was conducted by the Gila River Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00041-PHX-GMS
RELEASE NUMBER: 2017-090_Alvarez etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Gang Member Sentenced to 33 Years in Prison for Shooting Oakland Police OfficerRead the Press Release
OAKLAND – Damion McDaniel was sentenced today to 33 years in prison for shooting an Oakland police officer on January 21, 2013, just 28 hours after he and three other gang members from the Seminary neighborhood in East Oakland shot a rival gang member in a street-corner ambush. The sentenced was announced by United States Attorney Brian J. Stretch and FBI Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Phyllis J. Hamilton, U.S. District Judge.
McDaniel, 27 of Oakland, pleaded guilty on April 27, 2017 to Racketeering Conspiracy (18 U.S.C. § 1962(d)); Attempted Murder in Aid of Racketeering (18 U.S.C. § 1959(a)(5)); Assault with a Dangerous Weapon in Aid of Racketeering Resulting in Serious Bodily Injury (18 U.S.C. § 1959(a)(3)); and Discharging a Firearm in Furtherance of a Crime of Violence (18 U.S.C. § 924(c)).
“Mr. McDaniel posed a significant threat to the public,” said U.S. Attorney Stretch. “Today’s sentence assures the public that this violent criminal will be off the streets for the next three decades. This office will continue to pursue violent and dangerous criminals to the fullest extent of the law. I want to thank all of our federal and state law enforcement partners whose cooperation and efforts helped bring Mr. McDaniel to justice.”
McDaniel admitted that he and three other gang members from East Oakland’s Seminary neighborhood, known as “Sem City,” conspired to murder a rival gang member found in their neighborhood. The four men converged on the victim who was standing at a bus stop. After a volley of gunfire, one of the gang members ran up to the victim lying on the ground and shot him in the head from close range. The man did not die. The next day, after receiving a tip that the get-away car was located in an apartment complex in East Oakland, an Oakland Police Officer went to investigate and was attacked by McDaniel and two other gang members. The officer resisted their attack, but was restrained and struck in the head as the assailants threatened to kill him. McDaniel shot the officer in the arm when the officer refused to give up his service pistol. The officer sustained injuries to the head and forearm.
A federal grand jury indicted McDaniel on December 19, 2013. He was charged with organized crime violations, including racketeering, attempted murder, assault with a deadly weapon, and use of a firearm to further a crime of violence.
Two other gang members from the “Sem City” neighborhood who were also indicted in the federal case, Deante Kincaid (aka “Tay Tay”) and Joseph Pennymon (aka “Junkie”), pleaded guilty to their roles in the offenses last month.
In addition to the prison term, Judge Hamilton also sentenced the defendant to a 5-year period of supervised release to follow the prison term. The defendant has been in custody since 2013 and will begin serving the sentence immediately.
Assistant U.S. Attorneys Joseph Alioto and Scott Joiner are prosecuting the case, with the assistance of Kevin Costello. The prosecution is the result of an investigation led by the Federal Bureau of Investigation, and, at its earlier stages, the Oakland Police Department.
Fourth Defendant Admits Defrauding Clifton-Based Trucking Company of More Than $900,000Read the Press Release
NEWARK, N.J. – A Clifton, New Jersey, woman today admitted her role in a scheme to defraud a New Jersey-based trucking company of over $900,000, Acting U.S. Attorney William E. Fitzpatrick announced.
Lisa Popewiny, 55, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to Count One of an indictment charging her with wire fraud. Brothers Miguel Vidal, Angel D. Vidal, and Angel Gabriel Vidal previously pleaded guilty to wire fraud charges for their roles in the scheme.
According to documents filed in the case and statements made in Court:
Popewiny was the payroll clerk at Clifford B. Finkle Jr. Inc., a Clifton company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, and the Vidals, including Miguel Vidal – a former truck driver for the Company – engaged in a scheme to defraud the company of $920,380.
Popewiny falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees, including the Vidal brothers. All of the Vidal brothers have admitted to allowing the use of their personal identifying information to generate the fraudulent paychecks. The three men then converted the fraudulent paychecks, many of which were deposited into their bank accounts and then funneled out of the accounts in cash. Miguel Vidal admitted to recruiting other individuals to provide their personal information so that Popewiny could falsely add them to the payroll. Popewiny input false hours for at least 12 different individuals. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, several paychecks remained unclaimed that turned out to be fraudulently issued.
The charge to which Popewiny pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 12, 2018.
Acting U.S. Attorney William E. Fitzpatrick credited criminal investigators in the U.S. Attorney’s Office and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Cari Fais, of the Special Prosecution Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey
Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately by a federal grand jury for illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Wilman Pereira-Bonilla, age 36, of El Salvador, was previously deported from the United States on two prior occasions in April 2011 and November 2011. He is alleged to have illegally re-entered the United States sometime after November 2011, and was found in the United States in Adams County, Pennsylvania, after eluding examination or inspection by immigration officers. In July 2004, he was convicted in the Commonwealth of Virginia of grand larceny, an offense which subjects him to enhanced penalties in the current case.
Because of Pereira-Bonilla’s previous conviction, under federal law he faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
Esvin Recinos-Ruano, age 26, of Guatemala, was previously deported from the United States to Guatemala in February 2016. He is alleged to have illegally re-entered the United States sometime after February 2016, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers.
Manuel Lucero-Samayoa, age 40, of Guatemala, was previously deported from the United States to Guatemala on four prior occasions in November 1998, June 2001, June 2011, and January 2013. He is alleged to have illegally re-entered the United States sometime after January 2013, and was found in the United States in Centre County, Pennsylvania after eluding examination or inspection by immigration officers.
David Ramirez-Ferrer, age 39, of Mexico, was previously deported from the United States to Mexico in May 2011. He is alleged to have illegally re-entered the United States sometime after May 2011, and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Recinos-Ruano, Lucero-Samayoa, and Ramirez-Ferrer face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
The cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
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.
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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Former Scout Leader Sentenced to 7 Years in Prison for Online Distribution of Child Pornography and Attempted Deletion of EvidenceRead the Press Release
SACRAMENTO, Calif. — Dennis Boyle, 53, of Davis, was sentenced today by U.S. District Judge Kimberly J. Mueller to seven years in prison for distributing child pornography and obstruction of justice, U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement agents identified a user on a messenger service who was offering videos of child pornography in an online chat room. The investigation led to Boyle’s residence, which was then in Orangevale. Boyle was a financial auditor for the State of California and a charter organization representative for the Boy Scouts.
Between August and October of 2015, Boyle distributed and received depictions of minors engaged in sexually explicit conduct. Boyle obstructed justice when he attempted to persuade a friend to delete electronic evidence stored on a laptop computer and on remote servers. The friend reported the solicitation to authorities, and assisted in the investigation by recording a meeting with Boyle who admitted to viewing, downloading, and distributing child pornography, and, further, admitted to online chats with girls aged 14 to 18.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew D. Segal prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Owner of Durable Medical Equipment Supplier to Pay $220,000 to Resolve Civil False Claims AllegationsRead the Press Release
PHILADELPHIA – Victor Saul, of Egg Harbor Township, New Jersey and a former owner of R&V Medical Supplies LLC (R&V), has agreed to pay $220,000 to resolve civil claims under the False Claims Act. The government’s claims concern allegations of fraud in connection with the sale of durable medical equipment. The civil resolution was announced today by Acting United States Attorney Louis D. Lappen.
Victor Saul owned R&V together with his brother, Robert Saul, and Robert’s wife, Sheila Saul. R&V was a supplier of durable medical equipment that provided wheelchairs, braces, scooters, heating pads and other products to the elderly and the infirm. The government alleges that R&V engaged in an extensive scheme to defraud the Medicare program from approximately 2005 through 2008. The United States alleges that through R&V, Victor Saul caused to be submitted – by acting in reckless disregard of R&V’s scheme – false claims for reimbursement for durable medical equipment to Medicare. Specifically, the United States contends that R&V, through its principals:
- directed individuals who worked at doctors’ offices to write prescriptions, to prepare medical authorizations and/or physician orders that were not ordered or authorized by a physician;
- either forged doctors’ signatures or directed other individuals to forge doctors’ signatures on these documents;
- provided equipment to patients that was not ordered by submitting false claims for payment for patients with falsified physician orders or medical authorizations;
- billed for medical equipment and supplies that were never provided to any patient;
- paid remuneration in the form of kickbacks to employees of medical providers and social service agencies in exchange for confidential information, including names, social security numbers, insurance information and other personal information that was used to submit these false claims.
Victor Saul’s brother, Robert Saul, was charged criminally and was sentenced in 2011 to 66 months in prison for Medicare fraud and other related offenses. In addition to the prison term, Robert Saul was ordered to pay $845,000 in restitution, a fine of $10,000, and a special assessment of $10,500. R&V was also charged criminally and was sentenced to five years of probation, a fine of $8,000, and a special assessment of $42,000.
As part of the agreement to resolve the government’s claims under the False Claims Act, Victor Saul did not admit to any liability or wrongdoing.
The allegations arose from an investigation led by the Federal Bureau of Investigation and Department of Health and Human Services Office of Inspector General. The case was handled by Assistant United States Attorney David A. Degnan.
Former Finance Manager at Trophy Nissan Pleads Guilty in Connection with Owning and Running Brothels in Dallas, TexasRead the Press Release
DALLAS — Jeffrey Wittman, 52, and his company JBJ Services, LLC (“JBJ”), appeared in federal court yesterday morning before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to charges related to the ownership and operation of at least two businesses that were fronts for illegal brothels in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Wittman and JBJ pleaded guilty to one count of conspiracy to violate the Travel Act. Wittman faces a maximum penalty of not more than 5 years in federal prison and a $250,000 fine. Wittman has agreed to forfeit the building that was used to run one of the brothels and has agreed to pay a money judgment of not less than $200,000. JBJ faces a maximum penalty of a fine not to exceed $500,000 and has agreed to pay a money judgment of not less than $200,000. Wittman has been in custody since the time of his arrest in March 2017. A sentencing hearing has been set for January 10, 2018.
Chongok Ellsworth, 62, is scheduled to plead guilty to the conspiracy. Wittman’s wife, Chin Young Song, 50, and Puna Kim, 54, are awaiting trial.
According to documents filed in the case, during the time period from at least January 2014 through February 2017, Wittman, along with others, owned and/or operated brothels in the North Texas area. Specifically, Wittman and his coconspirators managed, promoted, and facilitated brothels called “Sakura” and “The Palace.” Wittman, who until his arrest in this case was working as a finance manager at Trophy Nissan, created JBJ with Song, to facilitate the operation of these businesses. Wittman and JBJ entered into several contracts that facilitated the prostitution business enterprise and maintained a bank account from which the illegal businesses operated. Wittman and his codefendants used the Internet, ATM machines, and phones to facilitate the brothels’ operations. Several online advertisements for Sakura and The Palace were posted during the course of the conspiracy, many of which contained photos of scantily clad women and advertised phone numbers of each of the businesses. In addition, both The Palace and Sakura leased space for ATMs to operate inside both businesses to further facilitate the brothels.
The Federal Bureau of Investigation, with the assistance of the Dallas Police Department, investigated the case. Assistant U.S. Attorneys Jamie L. Hoxie and Joseph A. Magliolo are in charge of the prosecution.
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Former Canadian Mountie Sentenced to Money Laundering Charges Stemming from a Conspiracy to Smuggle Ivory TusksRead the Press Release
A retired officer of the Royal Canadian Mounted Police was sentenced today by U.S. District Court Judge John A. Woodcock for the District of Maine to 62 months in prison for 10 money laundering offenses, announced the Justice Department. Gregory R. Logan, 59, of St. John, New Brunswick, was extradited to the United States from Canada on March 11, 2016. He was indicted in the District of Maine in November 2012 and charged with conspiracy, smuggling and money laundering, and pled guilty to 10 money laundering offenses on September 28, 2016.
“This defendant illegally imported hundreds of narwhal tusks into the United States, with a value in the millions of dollars. Unlawful wildlife trade like this undermines efforts by federal, state, and foreign governments to protect and restore populations of species like the narwhal, a majestic creature of the sea with long and spiraled protruding ivory tusks,” said Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division. “Our Division successfully worked with the U.S. Fish and Wildlife Service, NOAA Fisheries, and the Canadian Government to successfully conclude this case.”
“This investigation highlights the best of law enforcement working together. Our special agents, with counterparts from the National Oceanic and Atmospheric Administration and Environment and Climate Change Canada, investigated a complex scheme where illegal narwhal tusks were trafficked across the U.S.-Canada border,” said acting Chief of Law Enforcement Ed Grace for the U.S. Fish and Wildlife Service. “Wildlife smuggling is a transnational crime that knows no borders and requires an international response. We will continue to work closely with our international, federal, and state partners to investigate and arrest individuals who smuggle and sell protected wildlife for their own financial gain.”
"Today's sentencing brings to a close a long investigation and prosecutorial process that underscores our global commitment to end wildlife trafficking," said Chris Oliver, Assistant Administrator for NOAA Fisheries. "We are grateful for the international cooperation that has lead to this conclusion."
“This case is the result of a successful joint investigation involving partners across Canada and the United States working to stop the illegal commercialization and exploitation of Canadian wildlife, in this case the smuggling of narwhal tusks,” said Glen Ehler, Regional Director, Wildlife Enforcement Directorate, Enforcement Branch, Environment and Climate Change Canada. “Today’s sentence and the previous conviction in Canada send a strong message that this type of offence will not be tolerated.”
Logan was involved in a scheme to smuggle narwhal tusks from Canada to the United States for sale to American customers and transfer the proceeds of those sales back to Canada. Logan was arrested in Canada, based on a request from the United States, in December 2013. Logan pleaded guilty to a related wildlife smuggling crime in Canada and the terms of his extradition limited the case against him in the United States to the money laundering offenses. Also charged in the original indictment was Andrew J. Zarauskas of Union, New Jersey. Zarauskas was convicted after a jury trial in Bangor and sentenced to 33 months in prison.
Narwhals are medium-sized toothed whales that are native to the Arctic. They are known for their distinctive ivory tusk, which can grow to more than eight feet in length. Given the threats to their population, narwhals are protected domestically by the Marine Mammal Protection Act and internationally by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) – an international treaty to which more than 170 countries, including the United States and Canada, are parties. It is illegal to import narwhals, or their parts, into the United States for commercial purposes. Further, any importation must be accompanied by a permit and must be declared to U.S. Customs and Border Protection and the U.S. Fish and Wildlife Service.
According to the indictment, Logan smuggled more than 250 narwhal tusks into the United States between 2000 and 2010. As part of the plea agreement, Logan agreed that the market value of the narwhal tusks in this case was between $1.5 million and $3 million. Knowing that the tusks were illegal to bring into the United States and sell, Logan transported them across the border in false compartments in his vehicle and trailer. Logan utilized a shipping store in Ellsworth, Maine, to send the tusks to customers throughout the United States, including Zarauskas and others. Logan knew that his customers would re-sell the tusks for a profit and in an attempt to increase that re-sale price, Logan would occasionally provide fraudulent documentation claiming that the tusks had originally belonged to a private collector in Maine who had acquired them legally.
In addition to shipping the tusks from Maine, Logan maintained a post office box the Ellsworth shipping store as well as an account at a bank in Bangor. Logan instructed his customers to send payment in the form of checks to the post office box, or wire money directly to his Maine bank account. Logan then transported the money to Canada by having the shipping store forward his mail to him in Canada, and by using an ATM card to withdraw money from his Maine bank account at Canadian ATM machines. At times, Logan also directed his customers to send funds directly to him in Canada.
The case was investigated by special agents of the National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Fish & Wildlife Service, Office of Law Enforcement; and Wildlife Officers from Environment and Climate Change Canada. The case was prosecuted by Trial Attorneys James B. Nelson and Lauren D. Steele.
Former CEO of Sunnyvale-Based Company Charged with Insider Trading in His Company’s SecuritiesRead the Press Release
SAN JOSE – Peter C. Chang was arrested today following the filing of a federal complaint charging him with securities fraud and fraud in connection with a tender offer, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the complaint unsealed upon his arrest this morning, Chang, 59, of Los Altos, Calif., was the President, Chief Executive Officer (CEO), and Chair of the Board of Directors of Alliance Fiber Optic Products, Inc. (AFOP), a manufacturer of fiber optic components based in Sunnyvale, Calif. and publicly traded on the NASDAQ. According to the complaint, Chang engaged in an insider trading scheme in which he traded AFOP stock based on material nonpublic information he obtained from AFOP through his position at the company. In particular, according to the complaint, Chang acquired confidential information about AFOP’s financial performance and potential strategic transactions before these were publicly announced, including information that AFOP was in negotiations to be acquired by another company.
According to the complaint, corporate policies and agreements limited Chang’s ability to trade AFOP securities and required him to keep certain corporate information confidential. Nevertheless, the complaint alleges, Chang controlled and accessed two brokerage accounts in the names of his wife and his brother, and Chang bought and sold AFOP stock in these nominee accounts. Through this trading, the complaint alleges, Chang avoided losses and made profits using information he gathered in his positions with AFOP.
For example, the complaint alleges Chang learned AFOP’s revenues in the third quarter of 2015 would be lower than expected due to a decline in customer orders. The complaint alleges Chang sold more than 152,000 shares of AFOP stock in the nominee accounts in advance of the earnings announcement on October 28, 2015. In this way, the complaint alleges, Chang avoided more than half a million dollars of losses. Similarly, according to the complaint, Chang avoided another $379,000 in losses by selling 129,000 shares of AFOP stock in February of 2016, prior to the February 19, 2016 announcement of the previous quarter’s earnings.
Finally, the complaint alleges that from March 4, 2016 to March 21, 2016, Chang purchased AFOP stock in the nominee accounts. At the time of these purchases, according to the complaint, Corning was negotiating a tender offer for the shares of AFOP. After the acquisition was publicly announced on April 7, 2016, the complaint alleges that Chang sold the shares held in these nominee accounts for profits of more than $800,000.
In connection with the allegations described in the complaint, Chang is charged with one count of securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. §§ 240.10b-5 and 240.10b5-2, and one count of fraud in connection with a tender offer, in violation of 15 U.S.C. §§ 78n(e) and 78ff and 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d).
A criminal complaint merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Chang faces a maximum statutory penalty for securities fraud and fraud in connection with a tender offer of 20 years in prison and a fine of $5 million, per count. Additional fines, periods of supervised release, and restitution also may be ordered; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendant is scheduled to appear before the Honorable Howard R. Lloyd, U.S. Magistrate Judge, at 1:30 p.m. this afternoon in San Jose for an initial appearance.
In a separate civil action, the United States Securities and Exchange Commission filed civil charges against Chang, alleging he engaged in insider trading and failed to report stock transactions.
Assistant U.S. Attorney Lloyd Farnham is prosecuting the case with the assistance of Patricia Mahoney and Claudia Hyslop. The prosecution is the result of an investigation by the FBI, with the assistance of the San Francisco Regional Office of the Securities and Exchange Commission.
Former BB&T Senior Vice-President and Regional Branch Operations Manager SentencedRead the Press Release
Abingdon, VIRGINIA – A former senior vice-president with BB&T, who stole cash from bank vaults to which she had access through her employment with the bank, was sentenced yesterday on federal embezzlement charges for which she previously pleaded guilty, Acting United States Attorney Rick A. Mountcastle announced.
Melissa D. Huffman, 47, of Roanoke, Va., previously pleaded guilty to one count of embezzlement from a FDIC-insured bank. Yesterday, United States District Court Judge James P. Jones sentenced Huffman to imprisonment for a term of 14 month. As part of her plea agreement, Huffman made full restitution to the bank in the amount of $31,850.
Between 2014 and December 2016, Huffman worked as a senior vice-president and regional branch operations manager for BB&T. As part of her official duties, Huffman had access to the vaults of BB&T’s banks throughout the Western District of Virginia. On several occasions, Huffman stole cash from the vaults she visited and caused the shortages to be attributed to subordinate employees at the banks. The branches from which she stole cash included Boonsboro, Fort Hill, Martinsville, Tanglewood, Tazewell, and Warrenton.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Final Defendant Sentenced in Meth Trafficking ConspiracyRead the Press Release
McALLEN, Texas – A 27-year-old Mexican national who was illegally residing in Houston has been ordered to federal prison following his conviction for possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Oscar Diaz-Pineda pleaded guilty May 3, 2017.
Today, Judge Alvarez ordered Diaz-Pineda to serve a 360-month sentence. His co-defendants - Mexican national Johnathan Ricardo Alvarez, 24, and El Salvadorian national Melvin Noel Vasquez, 33, who resided in Mission and Houston, respectively – were sentenced previously. Ricardo Alvarez received a 200-month sentence, while Vasquez was ordered to serve 147 months imprisonment.
At the previous hearing, the court heard that the methamphetamine was imported from Mexico in a liquid form and converted into crystalized methamphetamine at an apartment in Harris County for further distribution. Diaz-Pineda was determined to be the renter of the apartment under an alias name. In handing down the sentence, Judge Alvarez noted that Diaz maintained a ‘conversion lab’ at an apartment in Houston were liquid methamphetamine imported from Mexico was crystalized for further distribution within the area.
At the time of his plea, Ricardo Alvarez admitted to brokering a drug transaction with an undercover agent via telephone on Dec. 7, 2016. Two days later, Vasquez and Diaz-Pineda met with the undercover agent in Houston to deliver five kilograms of methamphetamine on behalf of Ricardo Alvarez. Agents arrested Vasquez and Diaz-Pineda that same day and seized the narcotics. Ricardo Alvarez was subsequently arrested on April 16, 2017, in South Texas.
All three have been and will remain in custody and are expected to face deportation proceedings following their sentences.
The Drug Enforcement Administration conducted the investigation along with task force officers from the Harris County Sheriff’s Office, police departments in Humble and Missouri City and the Texas Department of Public Safety. Assistant U.S. Attorney Juan F. Alanis is prosecuting the case.
Federal jury finds Charleston man guilty of methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A federal jury sitting in Charleston returned a guilty verdict yesterday in the trial of a Charleston man for possession with intent to distribute 50 grams or more of methamphetamine, announced United States Attorney Carol Casto. Brian D. Terry, 32, was convicted following a one-day jury trial.
Witnesses for the United States testified that on April 20, 2016, Terry was the passenger in a vehicle that was stopped for speeding by officers with the Metropolitan Drug Enforcement Network Team. The traffic stop took place in the St. Albans area, on MacCorkle Avenue close to Oliver Street. During the traffic stop, Terry consented to a search, and officers discovered approximately 195 grams of crystal methamphetamine in his groin area. A chemist with U.S. Customs and Border Protection testified at trial that the methamphetamine found on Terry was approximately 99% pure.
Officers arrested Terry and read him his Miranda rights. Subsequently, during the transport of Terry to South Central Regional Jail, he shared details of his drug trafficking activity with an officer, including the quantity of methamphetamine he sold and the price he charged. Both the traffic stop and the transport to the jail were recorded.
Terry faces at least 10 years and up to life in federal prison when he is sentenced on December 14, 2017.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorneys Joshua Hanks and Clint Carte are in charge of the prosecution and tried the case before a federal jury. United States District Judge Joseph R. Goodwin presided over the trial.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Federal inmate sentenced to prison time for escaping from Atlanta’s prison camp to celebrate his birthdayRead the Press Release
ATLANTA – Federal inmate Fernando A. Settles has been sentenced to an additional one year, three months in prison for escaping from the United States Penitentiary’s minimum-security camp in Atlanta, Georgia.
“Escapes from prison pose significant safety risks to the public,” said U. S. Attorney John A. Horn. “Settles escaped from Atlanta’s prison camp to celebrate his birthday. He decided that instant gratification was more important than serving his time and being released at the end of his sentence. Now he will have an extra year to reflect on that choice.”
According to U.S. Attorney Horn, the charges and other information presented in court: the U.S. Penitentiary in Atlanta, Georgia (“USP Atlanta”) is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also has a detention center for pre-trial inmates and a satellite prison camp for minimum-security male inmates. The FBI and the Atlanta Police Department (“APD”) have been engaged in an investigation to combat instances where USP Atlanta inmates temporarily escape from the prison camp to obtain contraband to smuggle back into the prison or to visit nearby restaurants, hotels, and residences.
In August 2009, Settles was sentenced to 20 years in prison after being convicted of conspiratorial and substantive drug trafficking offenses. From approximately September 2016 to May 2017, Settles was an inmate at the prison camp of USP Atlanta, with a scheduled release date of July 29, 2025.
On May 8, 2017, the FBI and APD conducted surveillance along the fence line of USP Atlanta. At approximately 3:20 that morning, Settles escaped from the prison camp at USP Atlanta. Shortly thereafter, the FBI arrested Settles in a wooded area outside of USP Atlanta’s outer prison fence. At the time of his arrest, Settled had a cellular telephone and two empty duffel bags in his possession.
On May 12, 2017, Fernando A. Settles, 36, of Augusta, Georgia, was charged via criminal information with escaping from federal custody. Settles was sentenced to a one year, three month term of imprisonment (to be served after he completes his current 20-year prison sentence).
The FBI and APD investigated this case.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy Lee prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Indictment Returned in Armed Conway Bank Robbery Resulting in DeathRead the Press Release
Columbia, South Carolina-------United States Attorney Beth Drake stated today a Federal Grand Jury in Columbia, South Carolina, returned a multiple-count indictment in connection with an armed robbery in Conway.
Brandon Michael Council, age 32, of Wilson, North Carolina was charged in a three-count indictment with armed bank robbery resulting in death (a violation of 18 U. S. C. §§ 2113(a) and 2113(d)); use of a firearm in furtherance of a crime of violence resulting in death of a person in such a manner to constitute murder (a violation of 18 U. S. C. §§ 924(c) and 924(j)); and felon in possession of a firearm (a violation of 21 U. S. C. § 922(g)). Council could receive life without the possibility of parole or death on Counts 1 and 2.
The indictment alleges that on August 21, 2017, Defendant Brandon Michael Council planned to enter CresCom Bank to rob the bank and kill its employees. Shortly after entering the bank, Defendant Brandon Michael Council drew a revolver and shot bank teller Donna Major multiple times. Defendant Brandon Michael Council then ran into a nearby office where he shot bank manager Kathryn Skeen as she sheltered under her desk. Defendant Brandon Michael Council then proceeded to take more than $15,000 in cash from the bank before fleeing.
Council will be arraigned on the indictment by a United States Magistrate Judge at the McMillan Federal Courthouse in Florence, South Carolina, in the coming weeks.
The case was investigated by the Federal Bureau of Investigation, Conway Police Department, Horry County Police Department, Myrtle Beach Police Department, Horry County Sheriff’s Office, Wilson North Carolina Police Department, Greenville North Carolina Police Department, the South Carolina Law Enforcement Division, the Bureau of Alcohol, Tobacco, Firearms, Explosives, and the United States Marshal’s Office. Assistant United States Attorneys JD Rowell and Jay N. Richardson of the Columbia office are prosecuting the case.
The United States Attorney stated that all charges in Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury Returns Superseding Indictment in Case Against James Matthew Bradley, Jr. – Government Will Not Seek Death PenaltyRead the Press Release
In San Antonio this afternoon, a federal grand jury returned a superseding indictment adding another defendant and additional charges in the case against 60–year-old James Matthew Bradley, Jr., for an alleged smuggling operation that resulted in the deaths of ten undocumented aliens in July announced United States Attorney Richard L. Durbin, Jr., and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
United States Attorney Durbin also announced a filing this afternoon serving notice to the Court that the Government will not seek the death penalty against Bradley.
The seven-count superseding indictment charges Bradley and 47–year-old Pedro Silva Segura, an undocumented alien residing in Laredo, TX, with one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in death; one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in serious bodily injury and placing lives in jeopardy; and, two counts of transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy. The superseding indictment also charges Bradley alone with the following (3) counts: transportation of undocumented aliens resulting in death; transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy; and, possession of a firearm by a convicted felon.
As for Bradley, he faces up to life imprisonment upon conviction for the conspiracy and transportation-resulting-in-death charges. As for Silva, the maximum penalty upon conviction of the conspiracy and transportation-resulting-in-death charges is life imprisonment, or the death penalty. Upon conviction of the conspiracy and transportation-resulting-in-serious-bodily-injury charges, the defendants face up to 20 years in federal prison. Upon conviction of the felon-in-possession charge, Bradley faces up to ten years in federal prison.
According to court documents, San Antonio Police Department (SAPD) officers responded to a call at the Wal-Mart store located at 8538 Interstate 35 in San Antonio shortly after midnight on Sunday, July 23. An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab. At the scene, law enforcement officers discovered 39 undocumented aliens. According to court records, the undocumented aliens estimated the trailer contained between 70 and 180 to 200 people during transport. They also described differing fees for being transported. Authorities also recovered a .38 caliber pistol from inside the cab of the tractor-trailer. Bradley, who was arrested at the scene, has remained in federal custody.
The superseding indictment alleges that Silva participated in the conspiracy by transporting undocumented aliens and attempting to conceal, harbor and shield them from detection.
Bradley remains in federal custody. Silva, who was arrested in Laredo on an unrelated charge, is in custody and awaiting transfer to San Antonio for his yet-to-be scheduled initial appearance in federal court.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is leading this investigation together with ICE Enforcement and Removal Operations (ERO), the San Antonio Police Department and the San Antonio Fire Department, with assistance from the Bexar County Sheriff’s Office and the U. S. Customs and Border Protection’s Border Patrol. Assistant United States Attorneys Christina Playton and Matthew Lathrop, along with Special Assistant United States Attorney Michael Hoyle from the Bexar County District Attorney’s Office, are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Edwardsville Man Sentenced to 62 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 18, 2017, United States District Court Judge A. Richard Caputo sentenced Willie Garcia, age 48, of Edwardsville, Pennsylvania, to 62 months’ imprisonment for possessing with intent to distribute marijuana, and for possessing a firearm in furtherance of his drug trafficking activities.
According to United States Attorney Bruce D. Brandler, Garcia was arrested with more than 400 grams of marijuana, approximately $22,000 and a loaded firearm (9mm keltc semi-automatic pistol) after a search warrant was executed on or about May 2, 2015, at his home by the Edwardsville Police Department.
Garcia was indicted by a grand jury on May 10, 2016, and pleaded guilty pursuant to a plea agreement. He has been in custody since his arrest.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Edwardsville Police Department. Assistant United States Attorney Evan Gotlob prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Edmond Sports Marketing Agent Pleads Guilty to Tax Fraud Through Non-ProfitRead the Press Release
Oklahoma City, Oklahoma – WILLIAM G. HORN, of Edmond, Oklahoma, pled guilty today to making false statements on federal tax returns for The Tommie Harris Foundation, a non-profit corporation, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to charges filed on September 6, 2017, Horn was a sports marketing agent who operated charitable organizations associated with NFL and NBA athletes. He registered one of these, The Tommie Harris Foundation, with the Oklahoma Secretary of State in late 2006 and used his home as the Foundation’s principal office. Horn sought and received tax-exempt status from the IRS under Section 501(c)(3) of the Internal Revenue Code. He personally solicited donations for the Foundation, which held an annual celebrity golf event to raise money for those in need. He also managed the Foundation’s finances and filed its Forms 990, which are federal tax returns for tax-exempt organizations. According to the charges, Horn signed and filed Forms 990 for the Foundation for tax years 2007 through 2012. During those years, the Foundation is alleged to have reported total donations received of $1,840,495 and total distributions to other organizations of $705,699. The majority of the difference of $1,134,796 was reported as “functional expenses.”
Horn was charged with making false statements on Forms 990 for the 2011 and 2012 tax years. He reported falsely on both returns that he received no compensation from the Foundation. According to the charges, he actually diverted approximately $136,620.06 to personal bank accounts in 2011 and made approximately $39,205.42 in purchases for personal use on a Foundation credit card. In 2012, according to the charges, he diverted approximately $129,451.04 to himself and made approximately $41,126.37 in purchases for personal use on a Foundation credit card. He also allegedly made false statements on these returns about having distributed tens of thousands of dollars to other charities—Straight From the Heart Foundation, Mercy Church West Coast, and Opportunity Knox—when in fact he controlled those charities and spent the money on himself.
At a plea hearing today before United States District Judge David L. Russell, Horn admitted he made false statements on the 2011 and 2012 federal tax returns for The Tommie Harris Foundation, as alleged. In a plea agreement, he has agreed to pay restitution to The Boys & Girls Clubs of America in an amount not to exceed $721,947.81, which accounts for his diversion of funds from the Foundation’s charitable giving.
Horn faces a maximum sentence for the 2011 false statement of five years in prison, three years of supervised release, and a fine of $250,000. For the 2012 false statement, he faces a maximum sentence of three years in prison, one year of supervised release, and a fine of $250,000. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by IRS-Criminal Investigations and the FBI and is being prosecuted by Assistant U.S. Attorney Charles W. Brown.
Dunmore Woman Sentenced for Providing Firearms to FelonRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced Angela Lucke, age 37, of Dunmore, Pennsylvania, to five years’ probation for unlawfully providing firearms to a convicted felon.
According to United States Attorney Bruce D. Brandler, Lucke pleaded guilty on March 8, 2017, to a one count indictment charging her with giving firearms to convicted drug dealer Ariel Varsanyi of New York. Lucke had previously pleaded guilty and was sentenced to one year probation in Lackawanna County Court of Common Pleas for filing a false police report, claiming that the firearms were stolen. Lucke admitted that she purchased the guns for Varsanyi because he was barred as a felon from buying guns himself. As part of her sentence, Lucke must perform 50 hours of community service and refrain from any contact with Varsanyi, who is incarcerated in New York.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dunmore Borough Police Department. The case was prosecuted by Assistant United States Attorney Sean A. Camoni.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Defendants Charged with Intent to Distribute 720 Kilos of Cocaine in First of its Kind Case in Southern OhioRead the Press Release
COLUMBUS, Ohio – Four defendants are being transported to Columbus, Ohio today for federal prosecution in the Southern District of Ohio after being charged with conspiracy to possess with intent to distribute approximately 720 kilograms of cocaine. The more than 1,584 pounds of cocaine has an approximate street value of $25 million in total.
The defendants were apprehended in August near the Galapagos Islands, making this the first case in which the Southern District of Ohio is seeking to prosecute defendants captured in international waters.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Commandant of the U.S. Coast Guard, Adm. Paul Zukunft, made the announcement.
According to the affidavit filed in support of the criminal complaint in this case, Ecuadorian nationals Hernan Emilio Caldas-Estupinan, Oscar Alipio Chila-Mendez, Carlos Alfredo Escobar-Estupinan and Mexican national Jesus Antonio Ramos-Chirino were detected in a dual engine speed boat on August 18 northwest of the Galapagos Islands in the Pacific Ocean.
The United States Coast Guard cutter James was dispatched to interdict the vessel in international waters and conduct a Right of Visit boarding. The watercraft had no flag flown, no registration documents, no registration number, homeport or name on the hull of the vessel, no identification of a sailing master and no claim of nationality for the vessel.
As part of its interdiction efforts, the James launched a helicopter and two patrol craft to approach the boat. When the defendants detected the helicopter and patrol craft, they began to jettison numerous packages from the vessel while attempting to flee from the helicopter.
The Coast Guard helicopter fired warning shots in an attempt to halt the flight, and when those warning shots went unheeded, the helicopter employed disabling fire. Once the vessel had been disabled, one of the patrol craft launched from the James took control of the vessel.
Coast Guard personnel collected the 25 packages that had been thrown from the boat and discovered that they contained approximately 720 kilograms of cocaine.
The cocaine seized in this case will be included in 50,690 pounds of cocaine and heroin worth more than $679 million from narcotics cases in six federal districts nationwide that is being offloaded by the Coast Guard today in San Diego, Calif. United States Attorney General Jeff Sessions will announce the series of drug removals with the Coast Guard at noon today.
U.S. Attorney Glassman commended the investigation of this case by the DEA and United States Coast Guard, as well as Assistant United States Attorneys David DeVillers and Jonathan Grey, who are prosecuting the case.
A criminal complaint merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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De Pere Businessman Indicted for $9 Million Green Energy FraudRead the Press Release
United States Attorney Gregory J. Haanstad, of the Eastern District of Wisconsin announced that the grand jury indicted Ronald Van Den Heuvel (age: 62) of De Pere, on wire fraud and money laundering charges today. The indictment alleges that Van Den Heuvel fraudulently obtained over $9 million in loans and investments for his eco-friendly “Green Box” business plan but diverted much of the funds to his own purposes.
From 2011 through 2015, Ronald Van Den Heuvel was a businessman in the Green Bay area promoting his Green Box process. The indictment alleges that Van Den Heuvel claimed that the Green Box process could turn post-consumer waste from sources like fast food restaurants completely into usable consumer products and energy. Van Den Heuvel obtained over $9 million in loans and investments, having falsely pledged to use the funds for Green Box operations. Van Den Heuvel spent much of the funds to pay old debts and personal expenses, including a new Cadillac Escalade, pricey Green Bay Packers tickets, and court-ordered support payments to his ex-wife.
As alleged in the indictment, Van Den Heuvel defrauded a range of victims, including individual acquaintances, the Wisconsin Economic Development Corporation (WEDC), a Canadian private investment firm, and Chinese investors in the EB-5 immigrant investor program. In October 2011, the WEDC provided Green Box NA Green Bay, LLC, one of Van Den Heuvel’s companies, with a loan of $1,116,000. The funds were to be used solely to purchase certain equipment to allow for the creation of 116 jobs in a Green Box operation in De Pere, Wisconsin. Instead, Van Den Heuvel diverted large amounts of WEDC funding to his own ends and then submitted false certifications claiming to have spent the funds properly. In addition, in January 2012, the WEDC awarded Green Box NA Green Bay, LLC with a $95,500 grant to reimburse the company for the costs of training new workers. To draw the grant funds, Van Den Heuvel submitted fraudulent time records for training that never happened.
Separately, the United States Securities and Exchange Commission (SEC) announced today that it filed a civil lawsuit against Van Den Heuvel and Green Box Detroit, LLC, in the United States District Court for the Eastern District of Wisconsin. The SEC alleges that Van Den Heuvel violated securities laws by defrauding the Canadian investment firm and EB-5 investors. The case is United States Securities and Exchange Commission v. Ronald Van Den Heuvel and Green Box NA Detroit, LLC, Case No. 17-CV-1261.
Counts One to Ten of the indictment charge Van Den Heuvel with executing the scheme to defraud by use of interstate wire communications, in violation of Title 18, United States Code § 1343. On each of these counts, the maximum penalty is imprisonment for not more than twenty years, a fine of not more than $250,000, or both, plus a mandatory $100 special assessment and a period of supervised release not to exceed three years.
Counts Eleven through Fourteen charge Van Den Heuvel with unlawful financial transactions involving the ill-gotten gains, in violation of Title 18, United States Code § 1957. On each of these counts, a convicted defendant would face imprisonment for not more than 5 years, a fine of not more than $250,000, or both, plus the mandatory $100 special assessment and a term of supervised release not to exceed three years.
The criminal case leading to the indictment is being investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation. The case will be prosecuted by Assistant United States Attorneys Mel S. Johnson, Matthew D. Krueger, and Rebecca L. Taibleson.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Cullman Man Sentenced to 90 Years for Producing Child Pornography Involving Multiple VictimsRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Cullman man to 90 years in prison followed by 10 years of supervised release for producing child pornography involving seven minor victims, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town.
U.S. District Judge Virginia Emerson Hopkins sentenced GREGORY JEROME LEE, 54, on four counts of production of child pornography. He pleaded guilty to the charges in January. Lee’s 90-year sentence will run consecutively to a 25-year sentence he received on a separate state prosecution for molesting two other victims.
According to court documents, beginning in September 1996 and continuing for more than a decade until August 2007, Lee and his co-conspirators belonged to a group of sophisticated offenders who gathered in secret password-protected chat rooms to discuss their sexual interest in minors and the real-life sexual abuse of children being perpetrated by several group members. Lee and others also used these chat rooms to advertise, distribute, receive and possess child pornography. Court documents state that from September 1996 through December 2004, Lee sexually abused at least seven different minors and that he frequently produced images and videos depicting his sexual exploitation of these children, which he shared with his co-conspirators.
Assistant U.S. Attorney Daniel Fortune and Trial Attorney Ralph Paradiso of the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division prosecuted the case.
The 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 CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Christiansburg Man Convicted of Tax, Bankruptcy Fraud ChargesRead the Press Release
Roanoke, VIRGINIA – A Christiansburg man, who filed multiple false tax returns between 2008 and 2009 in an attempt to receive fraudulent tax refunds from the Internal Revenue Service, was convicted this week on multiple tax fraud and bankruptcy fraud charges, Acting United States Attorney Rick A. Mountcastle announced.
Regan Dwayne Reedy, 55, a.k.a. “Wegani Diwaini Klandag Anisahoni,” was found guilty by a federal jury this week on one count of conspiracy to commit tax fraud, two counts of making a false declaration in a bankruptcy proceeding, two counts of concealment of property in a bankruptcy proceeding and three counts of false testimony in a bankruptcy proceeding.
According to evidence presented at trial by Assistant United States Attorney Joseph W. H. Mott, Reedy filed a number of fraudulent tax returns for individuals, claiming refunds. The returns were part of a “1099-OID scheme”, in which the returns claimed excessive federal withholding that resulted in excessive claims for refunds. Most of the fraudulent returns were detected before refunds were issued, however, one refund in the amount of $156,191 was issued.
Twice in 2012 and again in 2014, Reedy and his wife filed Chapter 7 bankruptcy. In those filings, Reedy omitted assets from their bankruptcy schedules and concealed assets from the bankruptcy trustee. At a creditors’ meeting, he falsely testified as to his sources of support and assets.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigations, the Federal Bureau of Investigation, and the U. S. Trustees’ Office. Assistant United States Attorney Joseph W. H. Mott prosecuted the case for the United States.
Chapin Woman Pleads Guilty to Bank FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Yvonne Sanchez, age 40, of Chapin, pled guilty in federal court in Columbia to Bank Fraud, a violation of Title 18, United States Code, § 1344. Senior United States District Judge Cameron McGowan Currie, of Columbia, accepted the guilty plea and will sentence her on January 24, 2018.
From July 2014 through June 2016, Sanchez was the bookkeeper for EveryWord, Inc., a court reporting business in the Columbia area. Sanchez opened fake accounts in the name of EveryWord at All South Federal Credit Union. As part of her duties, Sanchez was supposed to be depositing checks made payable to EveryWord into the legitimate business account at First Community. Instead, she diverted the checks into her own accounts for her personal use. Overall, Sanchez defrauded EveryWord of $121,461.76.
Ms. Drake stated the maximum statutory penalty faced by Sanchez is imprisonment for thirty years and a fine of $1,000,000.
The United States Department of Homeland Security investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Brinnon Resident Sentenced to Prison for Trafficking Protected Narwhal TusksRead the Press Release
A 64-year-old resident of Brinnon, Jefferson County, Washington was sentenced last week in U.S. District Court in Tacoma to six months in prison, one year of supervised release and a $25,000 fine for trafficking ivory from protected species, announced U.S. Attorney Annette L. Hayes. DAVID L. BOONE, who operates Boone Trading Company, participated in an operation that illegally smuggled narwhal tusks taken from the threatened Arctic whales into the United States from Canada. BOONE also trafficked in sperm whale teeth and walrus tusks. The purchase and sale of these items is prohibited under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international treaty that regulates trade in species whose survival is threatened by trade, and the Marine Mammal Protection Act. U.S. District Judge Ronald B. Leighton imposed the sentence.
“We have an obligation to the international community to prosecute those who seek to profit from illegal trafficking in protected species such as the magnificent narwhal,” said U.S. Attorney Annette L. Hayes. “I join those who had a part in this investigation in reminding anyone who chooses to put selfish profit above protection of the earth’s threatened species – we will devote the resources necessary to finding and holding accountable anyone responsible for this kind of despicable crime.”
“We commend the Department of Justice and all other agencies that played a role in aiding this investigation and prosecution,” said Edward Grace, Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service. “The illegal wildlife trade is a $20 billion industry that is rapidly driving elephants and many other animals to extinction. The Service will continue to use every tool at its disposal to fight the trafficking scourge and bring to justice the individuals who are depriving our planet of these magnificent creatures for their own profit.”
According to records filed in the case, between 2006 and 2008, BOONE purchased narwhal tusks from a Canadian and a resident of Tennessee. Narwhals are Arctic whales often called the ‘Unicorn of the Sea’ because of their prominent tusk. While native Inuit of northern Canada are allowed to hunt narwhal, it is illegal to import tusks into the United States. BOONE purchased tusks knowing they had been smuggled across the border from Canada. He then sold the tusks on the black market at a huge profit.
Additionally, in October 2011 BOONE sold sperm whale teeth to an undercover law enforcement officer, and in February 2012 bought and sold a walrus skull and tusks. The transactions were illegal under the Marine Mammal Protection Act.
The Canadian exporter of the narwhal tusks plead guilty to multiple counts of money laundering and was sentenced today in U.S. District Court for the District of Maine to more than 5 years in prison. In addition to BOONE, three other United States citizens were prosecuted and convicted for their participation in the narwhal tusk smuggling scheme - one in the District of Maine, and one each in the Districts of Massachusetts and Alaska.
The court directed that the $25,000 criminal fine be paid to the Lacey Act Reward Fund. Monies deposited into this Fund are used to reward persons who furnish information leading to successful enforcement actions against those who traffic in illegally taken fish and wildlife.
The case was investigated by the U.S. Fish and Wildlife Service’s Office of Law Enforcement. The case was prosecuted by Assistant United States Attorney James Oesterle.
Bridgeport Man Charged with Distributing Heroin to Seymour Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that RICHARD ESTABA, also known as “Raw,” 23, of Bridgeport, was arrested today on a federal criminal complaint charging him with heroin distribution offenses. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As alleged in court documents and statements made in court, on July 9, 2017, Seymour Police and emergency medical personnel responded to a residence in Seymour on a report of a suspected drug overdose. In the bathroom of the residence, responders encountered a 29-year-old male who was not breathing and did not have a pulse. The male was pronounced deceased. Investigators seized the victim’s cellphone, multiple folds of suspected heroin marked with two different brand stamps, and other drugs. Subsequent cell phone analysis and witness interviews determined that ESTABA supplied the heroin consumed by the victim shortly before he was found dead.
It is further alleged that, in August 2017, investigators conducted a controlled purchase of 10 wax folds of heroin from ESTABA. The folds were marked with a brand stamps that was found on some of the wax folds at the victim’s residence.
The Connecticut Office of the Chief Medical Examiner has determined that the victim’s death was caused by acute intoxication due to the combined effects of cocaine, etizolam, fentanyl, flubromazolam and heroin.
When he was arrested this morning, it is alleged that ESTABA possessed approximately 400 folds of heroin and $1,300 in cash.
ESTABA appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $100,000 bond.
The complaint charges ESTABA with possession with intent to distribute, and distribution of, heroin, and conspiracy to distribute heroin. Both offenses carry a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Seymour and Shelton Police Departments. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Berkeley County man sentenced for oxycodone distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Ernest Marshall, 34, of Charles Town, West Virginia, was sentenced in federal court today to eight months incarceration for distributing oxycodone, Acting United States Attorney Betsy Steinfeld Jividen announced.
Marshall admitted to distributing oxycodone in Jefferson County, West Virginia in June 2016. He pled guilty to one count of “Possession with Intent to Distribute Oxycodone” in November 2016.
Assistant U.S. Attorney Paul T. Camilletti and Assistant U.S. Attorney Lara Omps-Botteicher, prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Attorney General Sessions to Travel to Boston, Massachusetts to Give Remarks to Federal Law EnforcementRead the Press Release
WASHINGTON – Attorney General Sessions will travel to Boston, Massachusetts, on THURSDAY, SEPTEMBER 21, 2017 to give remarks to federal law enforcement about transnational criminal organizations.
WHO: Attorney General Jeff Sessions
WHAT: Attorney General Sessions will give remarks to federal law enforcement about transnational criminal organizations.
WHEN: Thursday, September 21, 2017
3:00 p.m. EDT
WHERE: U.S. Attorney’s Office
1 Courthouse Way, Suite 9200
Boston, MA 02210
OPEN PRESS
(Preset at 2:00 p.m. // Final Access 2:15 p.m.)
NOTE: All media must RSVP and present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. The RSVP and any inquiries regarding logistics should be directed to Devin O’Malley in the Office of Public Affairs at (202) 514-2007 or [email protected]. Please include the email address of the person(s) attending the event, so that we may reach them directly if details change.Atlanta Concert Promoter Sentenced to 10 ½ Years in Prison for MDMA ConspiracyRead the Press Release
BIRMINGHAM – A federal judge today sentenced an Atlanta man and co-owner of a promotions company to 10½ years in prison for a conspiracy to distribute thousands of MDMA pills, a drug commonly known as “ecstasy” or “molly,” through musical “raves,” concerts and music festivals he presented across the Southeast.
U.S. Attorney Jay E. Town, Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr., U.S. Postal Inspection Service Inspector in Charge Adrian Gonzales, Alabama Law Enforcement Agency Secretary of Law Enforcement Hal Taylor, Alabama Attorney General Steve Marshall, and Helena Police Chief Pete Folmar announced the plea.
U.S. District Court Judge Madeline Haikala sentenced WOODIE LOUIS OCHLE, 40, on one count of conspiracy to distribute 3,4 Methylenedioxymethamphetamine, or MDMA, in Jefferson and Shelby counties between February 2015 and April 2016, and on one count of possessing with intent to distribute the drug on April 13, 2016, in Jefferson County. Ochle pled guilty to the charges in April this year. He is in custody.
“Woodie Ochle unlawfully enriched himself through an illicit drug network he devised at the expense of young people,” Town said. “Ochle is among our worst offenders because his exploitation of a combination of youth and willfulness, underscored by his criminal greed, created both addicts and victims. We have bed space reserved in our Bureau of Prisons for Mr. Ochle and those like him.”
“The Postal Service is in the business of delivering the mail and has no interest in being involved in the distribution of illegal drugs,” Gonzales said. “Postal Inspectors work tirelessly to rid the mail of illicit drugs, preserve the integrity of the mail and, most importantly, provide a safe environment for postal employees and Postal Service customers – the American public. I commend the hard work and countless hours put forth by all of the law enforcement agencies involved in this investigation."
"HSI will continue to work with our state and federal partners to ensure illicit drugs are taken off our streets," Parmer said. "This sentencing should serve as a warning to other criminals that we will work tirelessly to investigate, arrest and prosecute you."
Ochle led an organization that distributed MDMA across the Southeastern United States, including Alabama and Georgia, according to court testimony. Through his Atlanta business, Freakstep Promotions, Ochle set up concerts or dance events and then distributed MDMA to people who attended the “raves.”
In 2016, Homeland Security Investigations and the U.S. Postal Inspection Service began investigating the large-scale smuggling and distribution of various controlled substances, including molly and ecstasy, from Europe into the U.S. through the U.S. Mail, according to evidence at Ochle’s and a co-defendant’s sentencing hearing.
U.S. Customs and Border Protection seized two inbound packages at John F. Kennedy International Airport in New York on April 7, 2016, that were destined for Bessemer and Chelsea, according to court testimony.
Each package contained 1,000 “Red Supreme” ecstasy pills, one addressed to Kenneth Howard in Chelsea and one to Jennifer Petitjean in Bessemer. HSI agents contacted ALEA and U.S. Postal inspectors and arranged controlled deliveries of the packages, according to testimony. Those deliveries led to subsequent controlled deliveries of the drugs to Howard’s cousin, Kevin Pederson, and to Ochle, who was identified as the leader of the drug-trafficking organization, according to testimony.
Investigators made a later controlled delivery to Shawn Perkins in Birmingham, for whom Petitjean said she was receiving package deliveries.
The confiscated drugs, which included the packaged pills, plus more ecstasy pills, xanax pills, the drug “molly,” LSD, cocaine and marijuana seized from Pederson’s vehicle, his Birmingham apartment, and from the U.S. Mail, were destined for Spring Weekend in Panama City Beach, Fla., for distribution, according to testimony. Spring Weekend is a beach music festival that caters to a college crowd. During the course of the investigation, law enforcement seized approximately 30 pounds of illegal drugs, including about 20,000 pressed ecstasy pills, and four pounds of crystal “molly”.
Pedersen, 28, Perkins, 22, Petitjean, 31, and Howard, 38, all have pled guilty to the conspiracy to distribute MDMA. All await sentencing, except for Howard who received eight weekends in custody.
U.S. Immigration and Customs Enforcement-HSI, U.S. Postal Inspection Service, ALEA, Alabama Attorney General’s Office and Helena Police investigated the case, which Assistant U.S. Attorney Brad Felton prosecuted.
Arizona Man Sentenced on Drug and Money Laundering ChargesRead 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 Jordan Ali, 37, of Arizona, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and 100 kilograms or more of marijuana, as well as a separate charge of money laundering conspiracy, was sentenced to 108 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between 2004 and February 1, 2012, the defendant conspired with others to distribute large quantities of cocaine and marijuana in the Buffalo area. In April 2009, Ali and co-defendant Shane Grafman began assisting one another in their drug distribution businesses. Together they obtained the narcotics in the State of Arizona and then utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates and United States Postal Service parcels. Grafman also utilized private jets to travel from Arizona to Buffalo to pick up his drug proceeds.
During the investigation, law enforcement officers seized approximately $1,000,000 in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Grafman.
The defendant distributed between five and 10 kilograms of cocaine and more than 100 kilograms of marijuana during the course of his crimes.
A total of six defendants have been charged and convicted in this case.
The sentencing is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; Federal Bureau of Investigation; under the direction of Special Agent-in-Charge Adam S. Cohen; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.