Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 27 July 2017
Eagle Butte Woman Sentenced for TheftRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Theft from Indian Tribal Organization was sentenced on July 24, 2017, by U.S. District Judge Roberto A. Lange.
Shanon LeCompte, a/k/a Shanon Morgan, age 41, was sentenced to 2 months in custody, followed by 2 years of supervised release, restitution in the amount of $1,805.97, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
LeCompte was indicted by a federal grand jury on January 19, 2017. She pled guilty on May 2, 2017.
LeCompte was employed by the Oriental Express in Eagle Butte in 2014 and 2015. While employed at Oriental Express, the defendant was given the business’ Personal Identification Number that allowed her to charge merchandise to Oriental Express’ account at the Lakota Thrifty Mart grocery store in Eagle Butte. LeCompte left her position at the Oriental Express and was later hired as an Assistant Manager at the Lakota Thrifty Mart, a business owned by the Cheyenne River Sioux Tribe.
The conviction stems from incidents between May 31, 2016, and October 22, 2016, when LeCompte used the Oriental Express’ Personal Identification Number to charge over $1,800.00 in merchandise at the Lakota Thrifty Mart for her own use.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
LeCompte was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault by Strangulation and Suffocation and Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on July 26, 2017, by U.S. District Judge Roberto A. Lange.
Allen Garreau, age 33, was sentenced to 42 months in custody, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100 for the Assault by Strangulation and Suffocation count. Garreau was sentenced to 18 months in custody, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100 for the Assault on a Federal Officer count.
Garreau was indicted by a federal grand jury on July 19, 2016. He pled guilty on April 17, 2017.On July 11, 2016, Garreau went to the apartment of Michelle Black Tail to spend time with their son. Black Tail Deer allowed Garreau inside of the apartment but he began making sexual advances towards her, which she rebuffed. Garreau became angry and assaulted Black Tail Deer. Garreau grabbed Black Tail Deer by the hair, threw her to the floor, kicked her, punched her in the face, and then began to strangle her. Black Tail Deer lost consciousness. Garreau stayed at the apartment all night. The next morning, he attempted to prevent her from going to work. Black Tail Deer was able to get away from Garreau when a co-worker came to the apartment to pick her up for work.
Black Tail Deer was taken to the hospital and the police were called. After taking a report from her, Officers with the Cheyenne River Sioux Tribe Police Department went to the apartment to make contact with Garreau. Garreau refused to open the door for the officers, and a maintenance worker had to unlock the apartment. Once inside, the officers found Garreau sitting on a bed in one of the bedrooms. He had a blanket pulled up over him and he had his arms around two small children. The officers made repeated requests for him to put the children down, to get up, and to walk out, but Garreau refused. When one of the officers attempted to approach Garreau, he told the officer that he needed to back up. The officer asked Garreau if he had anything or anything dangerous in his hands. Garreau told the officer words to the effect of “come find out.”
After several minutes of talking, Garreau stood up, showed his hands, and walked towards the officers. As the officers attempted to take him into custody, Garreau began to struggle with them. The officers were eventually able to take Garreau into custody.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Garreau was immediately turned over to the custody of the U.S. Marshals Service.Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Manuel Bienvenido Pimentel-Pimentel, 54, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to time served, one year of supervised release, and will be subject to deportation. On June 21, 2017, Pimentel-Pimentel pleaded guilty to one count of illegal reentry of a deported alien.
In May 2017, federal agents discovered Pimentel-Pimentel in Billerica and determined that he was illegally present in the United States. He had been previously deported in August 2010.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Distributing HeroinRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to distributing heroin.
Luis Humberto Arias Lara, 41, pleaded guilty to two counts of possession with intent to distribute and distribution of heroin. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Aug. 9, 2017.
On two occasions in September 2016 and January 2017, Arias Lara distributed heroin to an undercover officer in Waltham.
The charging statute provides for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a fine of $1 million. Arias Lara will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Suburban Middlesex County Drug Task Force. Assistant U.S. Attorneys Miranda Hooker and Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
District of Columbia Woman Sentenced to Prison for Her Role in Scheme that Used Stolen Identities to Fraudulently Seek Tax RefundsRead the Press Release
A District of Columbia woman was sentenced today to 63 months in prison for her involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; U.S. Attorney Channing D. Phillips for the District of Columbia; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office; Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Tarkara Cooper, 34, was convicted by a jury on Feb. 17 for conspiring to commit theft of government funds and defraud the United States and theft of public money. Two of her co-defendants, Tony Bryant, 55, and his son, Brian Bryant, 29, both of Clinton, Md., were also convicted at trial and are awaiting sentencing.
Cooper was part of a massive sophisticated stolen identity refund fraud scheme that involved a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme. The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia. According to court documents, the overall case involved the filing of at least 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited and forging endorsements of identity theft victims on the refund checks. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty.
According to the evidence presented at trial, from approximately April 2010 through June 2012, Cooper and the Bryants participated in claiming $4,959,310 in fraudulent refunds, of which the IRS paid out approximately $2,285,717. Cooper agreed to allow her residence to be used for the delivery of tax refund checks, and was paid by a co-conspirator when she provided the tax refund checks to him. The Bryants deposited refund checks fraudulently obtained by others into accounts that they controlled.
In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Cooper to serve three years of supervised release and to pay $1,926,958.14 in restitution to the IRS. She also ordered a forfeiture money judgment of $16,750.
Acting Deputy Assistant Attorney General Goldberg, U.S. Attorney Phillips, Special Agent in Charge Lappin, Inspector in Charge Wemyss and Assistant Inspector General Phillips commended the special agents who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein; Assistant U.S. Attorney Chrisellen Kolb; Paralegal Specialists Jessica Mundi, Aisha Keys, and Donna Galindo; former Paralegal Specialist Julie Dailey; Litigation Technology Specialist Ron Royal; Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Advocate Tonya Jones. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who worked on the case.
Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
District of Columbia Woman Sentenced to 63 Months in Prison for Her Role in Scheme That Used Stolen Identities to Fraudulently Seek Tax RefundsRead the Press Release
WASHINGTON – A District of Columbia woman was sentenced today to 63 months in prison for her involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced U.S. Attorney Channing D. Phillips; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office; Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division, and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Tarkara Cooper, 34, was convicted by a jury on Feb. 17, 2017, for conspiring to commit theft of government funds and defraud the United States and theft of public money. Two of her co-defendants, Tony Bryant, 55, and his son, Brian Bryant, 29, both of Clinton, Md., were also convicted at trial and are awaiting sentencing.
Cooper was part of a massive sophisticated stolen identity refund fraud scheme that involved a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme. The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia. According to court documents, the overall case involved the filing of at least 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited and forging endorsements of identity theft victims on the refund checks. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty.
According to the evidence presented at trial, from approximately April 2010 through June 2012, Cooper and the Bryants participated in claiming $4,959,310 in fraudulent refunds, of which the IRS paid out approximately $2,285,717. Cooper agreed to allow her residence to be used for the delivery of tax refund checks, and was paid by a co-conspirator when she provided the tax refund checks to him. The Bryants deposited refund checks fraudulently obtained by others into accounts that they controlled.
In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Cooper to serve three years of supervised release and to pay $1,926,958 in restitution to the IRS. She also ordered a forfeiture money judgment of $16,750.
U.S. Attorney Phillips, Acting Deputy Assistant Attorney General Goldberg, Special Agent in Charge Lappin, Inspector in Charge Wemyss, and Assistant Inspector General Phillips commended the special agents who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein; Assistant U.S. Attorney Chrisellen Kolb; Paralegal Specialists Jessica Mundi, Aisha Keys, and Donna Galindo; former Paralegal Specialist Julie Dailey; Litigation Technology Specialist Ron Royal; Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Services Coordinator Tonya Jones. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who worked on the case.
Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
District Court Enters Permanent Injunction Against Tennessee Company and Its CEO to Stop Distribution of Unapproved and Misbranded DrugsRead the Press Release
The U.S. District Court for the Eastern District of Tennessee entered a consent decree of permanent injunction against Crown Laboratories Inc. and the firm’s Chief Executive Officer, Jeffrey Bedard, to stop the distribution of unapproved and misbranded drugs, the Department of Justice announced today. The products at issue include urea creams and lotions intended to treat a variety of skin ailments.
The Department filed a complaint in the Eastern District of Tennessee on March 1, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that the defendants violated the federal Food, Drug and Cosmetic Act by, among other things, introducing unapproved and misbranded drugs into interstate commerce. Specifically, the complaint alleges that defendants sold a series of dermatological creams, despite the absence of FDA approval or a sufficient showing that these products were safe and effective.
“The public has a right to assume that drugs in the marketplace are safe, effective, have obtained proper approvals, and are labeled with the information necessary to allow for proper use,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “Where drug manufacturers violate these fundamental requirements, the Department of Justice will continue to work aggressively with the FDA to ensure that the pharmaceutical industry follows the rules. Doing so is necessary to protect American consumers.”
As detailed in the complaint, Crown manufactures a variety of prescription and OTC drugs including prescription urea cream and lotion. The products referenced in the complaint include Rea Lo (Urea 40 percent) Cream, Rea Lo (Urea 40 percent) Lotion, Rea Lo 39 (Urea 39 percent) Cream, Dermasorb XM Complete Kit (Urea 39 persent cream and moisturizer), and Sodium Sulfacetamide 10 percent and Sulfur 5 percent (Sodium Sulfacetamide).
As noted in the complaint, the various urea based products were sold as products intended to treat a series of dermatological conditions, such as dry, rough skin, xerosis, ichthyosis, skin cracks and fissures, dermatitis, eczema, psoriasis, keratosis, and calluses. Sodium Sulfacetamide is intended to treat acne vulgaris, acne rosacea, and seborrheic dermatitis. As products designed to provide dermatological treatment, these drugs required FDA approval for their intended uses – approval that was lacking for all of these products. Distributing unapproved drugs in interstate commerce is a violation of the federal Food, Drug, and Cosmetic Act.
In conjunction with the filing of the complaint, the defendants agreed to settle the case and to be bound by a permanent injunction. The injunction requires Crown to stop the manufacturing, selling and introducing into interstate commerce any Rea Lo (Urea 40 percent) Cream, Rea Lo (Urea 40 percent) Lotion, Rea Lo 39 (Urea 39 percent) Cream, Dermasorb XM Complete Kit, Sodium Sulfacetamide, or any drug labeled similarly to such drugs and containing the same active ingredient(s), unless and until an application has been filed with the FDA and approved by the agency.
In addition, within 20 days after the district court’s order, the defendants are required, among other things, to give FDA written notice that they are prepared to destroy all Rea Lo (Urea 40 percent) Cream, Rea Lo (Urea 40 percent) Lotion, Rea Lo 39 (Urea 39 percent) Cream, Dermasorb XM Complete Kit, Sodium Sulfacetamide, and any unapproved drug labeled similarly to such drugs and containing the same active ingredient(s).
The government is represented by Trial Attorney Mary M. Englehart of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Susan Williams of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Des Moines Tax Preparer Convicted of Tax FraudRead the Press Release
DES MOINES, IA – A Des Moines area tax preparer was convicted of preparing and presenting false tax returns, wire fraud, and aggravated identity theft following a three-day jury trial, announced United States Attorney Kevin E. VanderSchel. On July 26, 2017, a jury found Lony Tap Gatwas, 48, of Ames, Iowa, guilty of four counts of wire fraud, seven counts of aggravated identity theft, and seven counts of preparing and presenting false tax returns. Sentencing has been scheduled for December 1, 2017, at 9 a.m., before United States District Court Judge Rebecca Goodgame Ebinger.
Gatwas was charged with engaging in a scheme to defraud the Internal Revenue Service by preparing and filing personal income tax returns listing false dependents. During trial, the government presented evidence Gatwas placed his own children, as well as other children, on his clients’ personal income tax returns as dependents, when these children had no relationship to the taxpayers, did not live with the taxpayers, and the taxpayers provided no financial support for the children.
Gatwas falsely inflated his clients’ refunds by thousands of dollars by placing false dependents on his clients’ tax returns. Clients’ testimony established Gatwas charged them an average of $1,500 for each false dependent he put on their return. When his clients were audited, Gatwas instructed at least two of the clients to lie to IRS Revenue Agents about their relationship with the false dependents.
Preparing and presenting a false tax return is punishable by a maximum of three years imprisonment and a maximum $100,000 fine. The crime of wire fraud has a maximum prison term of 20 years and up to a $250,000 fine. Gatwas faces a minimum prison term of two years and up to a $250,000 fine for the crime of aggravated identity theft.
The Internal Revenue Service – Criminal Investigation conducted the investigation. This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Colorado Man Pleads Guilty to Marijuana and Money Laudering 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 Dashawn Abrams, 27, of Denver, CO, pleaded guilty to conspiracy to possess with intent to distribute and to distribute marijuana, and money laundering conspiracy before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between April 2015, and September 2015, the defendant conspired with Damarcus Hennings, Shaquata Hennings, Arthur Clark, Shahana Beaver and Janice Humphrey, to ship, receive, and distribute more than 50 packages containing marijuana from Denver, Colorado to Buffalo, New York. The defendants also conspired to send the cash proceeds from resulting marijuana sales back to their marijuana source of supply in Denver.
Damarcus Hennings, Shaquata Hennings, Shahana Beaver and Janice Humphrey have been convicted. Charges are pending against Arthur Clark. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.Sentencing is scheduled for October 24, 2017 before Judge Wolford.
Citizen of the Dominican Republic Sentenced to 87 Months in Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that WILMER ANTONIO GOMEZ-RODRIGUEZ, 30, a citizen of the Dominican Republic last residing in New York, N.Y., was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 87 months of imprisonment, followed by five years of supervised release, for trafficking heroin. Judge Bryant also ordered GOMEZ-RODRIGUEZ to pay a $15,000 fine.
On September 10, 2015, a jury found GOMEZ-RODRIGUEZ guilty of one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, and one count of possession with intent to distribute, and distribution of, 100 grams or more of heroin.
Accoring to trial testimony and the evidence disclosed during the trial, this matter stems from an investigation by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) and the Norwalk Police Department into suspected cocaine and heroin distribution by Omar Andrade. In September 2014, Andrade agreed to provide one kilogram of heroin to a DEA Task Force officer acting in an undercover capacity. Andrade, GOMEZ-RODRIGUEZ and Joel A. Estrella-Disla, were arrested on September 30, 2014, after they delivered approximately one kilogram of heroin to a pre-arranged location in Norwalk.
GOMEZ-RODRIGUEZ has been detained since September 10, 2015. He faces immigration proceedings when he is released from prison.
Andrade and Estrella-Disla each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. On January 6, 2016, Andrade, a citizen of Mexico, was sentenced to 70 months of imprisonment. On March 2, 2016, Estrella-Disla, a citizen of the Dominican Republic, was sentenced to 12 months and one day of imprisonment.
This case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Citizen of the Dominican Republic Pleads Guilty to Illegally Reentering the U.S. after DeportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LUIS MANUEL RODRIGUEZ BURGOS, 36, a citizen of the Dominican Republic, pleaded guilty yesterday in Bridgeport federal court to one count of illegal reentry of a removed alien.
According to court documents and statements made in court, RODRIGUEZ BURGOS was admitted to the U.S. as a lawful permanent resident in 1995. In September 2005, RODRIGUEZ BURGOS was convicted in Arizona of attempted transportation of narcotic drugs for sale and was sentenced to more than three years of imprisonment. In August 2006, he was deported from the U.S. to the Dominican Republic.
In August 2012, local law enforcement encountered RODRIGUEZ BURGOS in New York City and alerted federal immigration authorities. In October 2012, he was again removed to the Dominican Republic.
RODRIGUEZ BURGOS illegally reentered the U.S. and, in October 2015, was arrested in Bridgeport for narcotics offenses. He pleaded guilty in state court to sale of certain illegal drugs and conspiracy, and is currently scheduled to be sentenced on those offenses in October
On this federal immigration offense, RODRIGUEZ BURGOS is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on October 18, at which time he faces a maximum term of imprisonment of 10 years.
This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case in being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chelsea Store Owner Sentenced for Trafficking Counterfeit MerchandiseRead the Press Release
BOSTON – A Chelsea man was sentenced yesterday in federal court in Boston for trafficking counterfeit merchandise at three retail locations in the Boston area.
Arif Ali Shah, 66, was sentenced by U.S. District Court Judge William G. Young to 18 months in prison, two years of supervised release, a $5,000 fine, and ordered to pay restitution in the amount of $145,531. In May 2017, Shah pleaded guilty to one count of trafficking in counterfeit goods.
From approximately 2005 to February 2015, Shah knowingly sold counterfeit merchandise at three retail stores he owns: Nadia’s in Dorchester; East Boston Wireless in East Boston; and Todo Wireless in Chelsea. Shah sold counterfeit Apple, Samsung, and Speck components at all three retail locations. He also sold a variety of counterfeit apparel and accessories, including Chanel, Michael Kors, Nike, Prada, Timberland, and Uggs. Shah purchased the counterfeit merchandise from foreign and domestic sources and purchased a number of the counterfeit cell phone components from a domestic supplier, Flexqueen, the owner of which was prosecuted in California.
Acting United States Attorney William Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Amy Harman Burkart of Weinreb’s Cybercrime Unit prosecuted the case.
Chairman of Macau-Based Real Estate Development Company Convicted at Trial on All Counts in in Connection with United Nations Bribery SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that NG LAP SENG, a/k/a “David Ng,” a/k/a “Wu Liseng” (“NG”), was convicted after a four-week trial on six counts in connection with his multi-year scheme to pay more than $1.3 million in bribes to ambassadors of the United Nations (“UN”).
Acting U.S. Attorney Joon H. Kim said: “In his unbridled pursuit of even greater personal fortune, billionaire Ng Lap Seng corrupted the highest levels of the United Nations. Through bribes and a no show job, Ng turned leaders of the league of nations into his private band of profiteers. Ng’s journey from a Macau real estate mogul to convicted felon should serve as a cautionary tale to all tempted to follow his path. If you bring corruption to New York – whether to the State Capitol in Albany or to the halls of the U.N. General Assembly – your journey may very well end in a Manhattan federal courtroom, with a unanimous jury announcing your guilt.”
According to the Complaint, the Indictment, and evidence presented at trial, NG, the chairman of the Sun Kian Ip Group (the “Macau Real Estate Development Company”), conspired with and paid bribes to Francis Lorenzo, a former UN Deputy Ambassador from the Dominican Republic, and John W. Ashe, the late former Permanent Representative of Antigua and Barbuda to the UN and the 68th President of the UN General Assembly (“UNGA”). With the assistance of Jeff C. Yin, an accountant and co-conspirator who worked with NG and others and previously pleaded guilty, NG orchestrated a scheme with the principal objective of obtaining the formal support of the UN for a multibillion-dollar facility that NG hoped to build in Macau using the Macau Real Estate Development Company (the “Macau Conference Center”). NG wanted the Macau Conference Center to serve as a location for meetings, discussions, forums, and other events associated with the UN. In particular, he wanted it to serve as the permanent home of the annual “Global South-South Development Expo,” which is run by the UN Office for South-South Cooperation, and is hosted in a different country or city every year.
NG agreed to and did bribe Ambassador Ashe and Ambassador Lorenzo (together, the “Ambassadors”) in exchange for their agreement to use their official positions to advance NG’s interest in obtaining formal UN support for the Macau Conference Center. As the evidence demonstrated at trial, NG paid the Ambassadors in a variety of forms. For example, NG appointed Ambassador Lorenzo as the President of South-South News, a New York-based company—funded by NG—which described itself as a media platform dedicated to advancing the implementation of the UN’s Millennium Development Goals. NG provided bribe payments to Ambassador Lorenzo through South-South News, as well as, among other things, by transmitting payments from Macau to a company in the Dominican Republic affiliated with Ambassador Lorenzo’s brother (the “Dominican Company”). Through South-South News, NG also made payments to Ambassador Ashe, including to Ambassador Ashe’s wife, who was paid in her capacity as a “consultant” to South-South News, and to an account that Ambassador Ashe had established, purportedly to raise money for his role as President of UNGA. NG also provided bribes through cash and wire payments to Ambassador Ashe and Ambassador Lorenzo.
One of the actions that the Ambassadors agreed to take and took, in exchange for bribe payments, to advance NG’s objectives was to submit an official document to the then-UN Secretary-General in support of the Macau Conference Center (the “UN Document”). The UN Document claimed that there was a need to build the Macau Conference Center to support the UN’s global development goals. Ambassador Ashe, aided by Ambassador Lorenzo, initially submitted the UN Document to the UNGA in or about late February 2012. More than a year later, at NG’s behest, the Ambassadors revised the UN Document to refer specifically to NG’s company, the Macau Real Estate Development Company, as a partner in the Macau Conference Center project. The UN Document requested that the Secretary-General circulate the UN Document “as a document of the sixty-sixth session of the General Assembly,” under a specific item of the official UNGA agenda. The Secretary-General followed this request, thereby making the UN Document an official part of the UNGA record.
Five other defendants have been charged in this matter. Co-conspirators Lorenzo, Yin and Heidi Hong Piao have pleaded guilty and are awaiting sentencing. Shiwei Yan has pleaded and was sentenced to 20 months in prison. Co-defendant Ashe passed away in 2016 and the charges against him were dismissed.
* * *
NG, 69, of Macau, China, was convicted on one count of conspiracy to commit bribery and to violate the Foreign Corrupt Practices Act; one count of paying illegal bribes and gratuities; two counts of violating the Foreign Corrupt Practices Act; one count of conspiracy to commit money laundering; and one count of money laundering. The conspiracy to commit bribery conviction carries a maximum penalty of five years in prison, and the bribery conviction carries a maximum of 10 years in prison. The Foreign Corrupt Practices Act convictions each carry a maximum of five years in prison. The conspiracy to commit money laundering and money laundering convictions each carry a maximum of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim praised the outstanding investigating work of the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation.
This case is being prosecuted by the Office’s Public Corruption Unit and the Criminal Division’s Fraud Section. Assistant U.S. Attorneys Daniel C. Richenthal, Janis M. Echenberg, Douglas S. Zolkind, and Trial Attorney David A. Last of the Fraud Section are in charge of the prosecution.
Canadian Man Sentenced on Drug Charges Following Extradition to United StatesRead 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 Alvin Randhawa, 36, of Richmond, British Columbia, Canada, who was convicted of conspiracy to export from the United States into Canada five kilograms or more of cocaine, was sentenced to 87 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 July 2010 and May 2011, Randhawa conspired with others to smuggle cocaine into Canada from the United States via several international bridges including ones in the Buffalo-Niagara region. Investigators believe that this organization trafficked approximately 2,000 kilograms of cocaine (approximately $80,000,000 in value) during the course of the conspiracy.
Randhawa was indicted along with Gursharan Singh and Harinder Dhaliwal, all three have been convicted. Also charged and convicted in the conspiracy were Ravinder Arora, Michael Bagri and Parminder Sidhu.
Today’s sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; Officers from the United States Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; the Peel Regional Police Department, under the direction of Chief Jennifer Evans; the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region; and the Toronto Police, under the direction of Chief William Blair.
Brooklyn Man Pleads Guilty to Drug Trafficking OffenseRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that on July 26, 2017, Taheem Mungo, 35, of Brooklyn, New York, pleaded guilty to a federal charge of possessing crack cocaine and heroin with the intent to distribute.
According to court documents and statements made in court, on September 1, 2016, the New Hampshire State Police conducted a traffic stop on a vehicle in which Mungo was a passenger. The stop occurred on Interstate 95 around Hampton, New Hampshire. Police discovered that Mungo had an active arrest warrant out of New York, and he was arrested. Mungo then consented to a search of his luggage, which revealed approximately 172 grams of crack cocaine and approximately 10 grams of heroin.
Mungo’s sentencing is scheduled for November 14, 2017.
This matter was investigated by the New Hampshire State Police and is being prosecuted by Assistant United States Attorney Shane B. Kelbley.
###
Brockton Man Indicted on Firearms OffenseRead the Press Release
BOSTON – A Brockton man was indicted yesterday in federal court in Boston on a federal firearms charge.
Dennis Afonso, 33, was indicted on one count of being a felon in possession of a firearm and ammunition. According to the indictment, on May 3, 2017, law enforcement officers in Brockton found Afonso in possession of a Cobra .380 caliber pistol with an obliterated serial number and three rounds of .380 caliber ammunition.
Afonso was previously convicted in 2009 of distribution of cocaine base. He was sentenced to 60 months in prison and had recently completed his period of supervised release when he was found in possession of a firearm on May 3, 2017.
The 2009 conviction was the result of a federal investigation into drug trafficking and related gang activity in the Green Street area of Brockton. According to court documents, Afonso was a member of the Green Street gang, which operates on the north side of Brockton and rivals gangs from the south side of the city. During the course of the investigation, an undercover officer made dozens of controlled purchases of cocaine base from dealers, including Afonso. During that time, Green Street gang members made a verified threat to kill police officers in retaliation for the shooting and death of John Parks by Brockton Police Officers in November 2008.
The charge of being a felon in possession of a firearm and ammunition provides for a mandatory minimum sentence of 15 years and up to life in prison, five years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Brockton Police Chief John Crowley made the announcement. Assistant U.S. Attorney Glenn A. MacKinlay of Weinreb’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brockton Man Charged with Illegal Firearm PossessionRead the Press Release
BOSTON – A Brockton man with two prior federal firearm convictions was indicted today in federal court in Boston on a federal firearms charge.
Darnell Upshaw, 35, was charged with one count of being a felon in possession of a firearm and ammunition.
On May 10, 2017, Upshaw was found in Brockton in possession of a handgun, two rounds of 9mm ammunition, and three rounds of .38 caliber ammunition.
The charge of possessing a firearm and ammunition after being convicted of a felony provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Kelly Begg Lawrence of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
British Expatriate Sentenced to Nine Years in Prison for Role in Wire Fraud SchemeRead the Press Release
SAN JOSE – Laurence Miles was sentenced to 108 months in federal prison for conspiracy to commit wire fraud, wire fraud, and money laundering, announced United States Attorney Brian J. Stretch, Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf, and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down yesterday by the Honorable Lucy H. Koh, U.S. District Judge, after Miles pleaded guilty to the charges on April 6, 2017.
Miles, a 76 year-old citizen of Great Britain, had been living in Southern California during the time of the offenses. According to his guilty plea, since at least 2009 and continuing through December of 2015, he defrauded scores of victims of at least $5.6 million. Miles admitted that along with his four co-defendants, Shirley Molina, 70, of Hawthorne, Calif., Munsif Shirazi, 49, of Bell Canyon, Calif., Robert Stephens, 65, of Napa, Calif., and Rayan Lakshmanan, 48, of Davis, Calif., he told people that an heiress to a billion-dollar estate was very ill and was in need of medical attention. Miles and his co-defendants convinced their victims that the heiress’s money was tied up in a secret probate case and that, in return for money to help pay for the heiress’s medical costs, Miles and his accomplices would return to their victims $1,000 for every $1 they invested in the heiress’s estate. Miles and his accomplices promised their victims that they would see the returns on their investments after the money was released from probate. In truth, there was no dying heiress with a large estate. Instead, Miles and his codefendants used the victims’ money to support their own lifestyles. On December 3, 2015, a federal grand jury indicted Miles and charged him with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; 22 counts of wire fraud, in violation of 18 U.S.C. § 1343; and 4 counts of money laundering, in violation of 18 U.S.C. § 1957. Pursuant to his plea agreement, Miles pleaded guilty to one count of each of the charges and the remaining charges were dismissed. Each of Miles’ co-defendants have pleaded guilty to their respective roles in the conspiracy and will be sentenced later this year.
In sentencing Miles, Judge Koh found that Miles had been conducting the scheme for more than a decade. The Court concluded Miles obtained millions of dollars from his victims, had been a leader of the fraud, controlled the money, and exercised authority over some of his accomplices.
In addition to the 9-year prison term, Judge Koh ordered Miles to serve a three-year period of supervised release and to pay a forfeiture money judgement of $5,628,765. Judge Koh ordered Miles to begin serving his sentence October 20, 2017, immediately after a hearing to determine the amount of restitution he owes his victims. Judge Koh further ordered that until the restitution hearing, Miles will remain on electronic monitoring and must remain at his residence with limited exceptions.
Assistant U.S. Attorneys Amber Rosen and Patrick Delahunty prosecuted the case with the assistance of Nina Williams and Susan Kreider. The prosecution is the result of an investigation by the FBI and IRS.
Authorities in San Antonio Arrest Alleged Eastside Drug Dealer on Federal ChargeRead the Press Release
In San Antonio last night, authorities arrested 36-year-old Charles Lee Bethany for possessing with intent to distribute 28 grams or more of cocaine base announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division and San Antonio Police Chief William McManus.
A criminal complaint and supporting affidavit filed in federal court this morning alleges that an investigation by the FBI and the San Antonio Police Department developed information that Bethany was possessing controlled substances at a residence he controlled in the 600 block of J Street in San Antonio. On July 21, 2017, investigators searched the premises with a warrant and seized approximately 56 grams of cocaine powder and 56 grams of crack cocaine. Information indicated that Bethany, who was not present, learned of the search. Officers of the San Antonio Police Department Repeat Offenders Project learned of his whereabouts on Wednesday and arrested him.
The affidavit also indicates that information obtained by investigators suggests that Bethany may have been the intended target of a drive-by shooting in the 400 block of Spriggsdale that occurred shortly after 4:00 p.m., on July 19, 2017. That shooting was followed by another the same day, shortly before midnight in the 200 block of Hub Street, in which a 4-year-old boy was killed. Surveillance video indicates that later that night a number of individuals appearing to be in possession of a pistol and a rifle left the location on J Street about 12 minutes before the shooting on Hub Street. According to the surveillance, those individuals returned to the J Street address moments after the shooting. The investigation into those shootings continues.
“The arrest of Charles Bethany is part of our joint effort—the FBI, the San Antonio Police Department, the Bureau of Alcohol, Tobacco, and Firearms, the U.S. Attorney’s Office and the Bexar County District Attorney’s Office—to end the senseless shootings in San Antonio. This investigation continues along with our on-going work to stop violent crime, using whatever tools are legally available to us under federal and state laws. We ask that anyone having information about this case or other acts of violence contact the SAPD or the FBI,” stated United States Attorney Richard L. Durbin, Jr.
Bethany remains in federal custody. A detention hearing is scheduled for 9:00am on August 1, 2017, before United States Magistrate Judge Henry J. Bemporad in San Antonio. Upon conviction of the drug charge, Bethany faces between 5 and 40 years in federal prison.
Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Attorney General Jeff Sessions Announces Public Safety Officers to Be Awarded Medal of ValorRead the Press Release
Today Attorney General Jeff Sessions is honored to award the Public Safety Officer Medal of Valor to the following law enforcement officers and first responders for their heroic and extraordinary services:
- Special Agents David Bailey and Crystal Griner of the United States Capitol Police and Officers Nicole Battaglia, Kevin Jobe, and Alexander Jensen of the Alexandria Police Department for their heroic efforts on the morning of June 14, 2017. President Donald J. Trump presented these officers with the medals today at a White House ceremony.
Recipients approved by the Attorney General to receive the 2015-2016 Medal of Valor at a future ceremony are:
- Corporals Rafael Ixco and Chad Johnson and Deputies Shaun Wallen and Bruce Southworth (San Bernardino County Sheriff's Department), and Officers Nicholas Koahou and Brian Olvera (San Bernardino Police Department) for their heroic efforts to end the December 2015 terrorist attack in San Bernardino, California.
- Lieutenant William Buchanan (Avery County Sheriff's Office, North Carolina) and Emergency Medical Technician Sean Ochsenbein (Putnam County Rescue Squad, Tennessee) for their poise in rescuing a trapped driver from a burning car in February 2016.
- Firefighter/Harbor Patrol Officer David Poirier Jr. (Redondo Beach Fire Department, California) for single-handedly rescuing three injured people from dangerous surf in February 2016.
- Chief Douglas Schroeder (Hesston Police Department, Kansas) for ending a deadly workplace assault by a gunman in February 2016.
- Engineer Stephen Gunn (Peoria Fire-Medical Department, Arizona) for rescuing a man from a burning house without regard for his own safety in April 2016.
- Patrolman Andrew Hopfensperger Jr. (Antigo Police Department, Wisconsin) for saving many lives during a gunman’s assault on students at a prom in April 2016.
These recipients were recommended by the Medal of Valor Review Board and approved by the Attorney General. The Medal of Valor is the highest national award for public safety officers and is given to recognize an act of extraordinary valor above and beyond the call duty.
The Bureau of Justice Assistance will continue receiving nominations for the 2016-2017 class through Monday, July 31, 2017. Nominations may be submitted here: https://www.bja.gov/programs/medalofvalor/index.html.
Attleboro, Mass., Resident to Plead Guilty to Child Pornography ChargeRead the Press Release
PROVIDENCE – According to documents filed in U.S. District Court in Providence, Richard F. Woodhead, 54, of South Attleboro, Mass., has agreed to plead guilty to an information charging him with attempted receipt of child pornography, announced Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
Woodhead was arrested on April 6, 2017, by Homeland Security Investigation agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force following a court authorized search of his residence.
According to court documents, Woodhead and the government agree to the facts that he used a computer to store and view material involving a prepubescent minor or a minor who has not attained the age of 12; the offense involved between 10 but less than 150 images; and that he caused, transported, permitted or sought a minor to engage in sexually explicit conduct for the purpose of producing child pornography.
Attempted receipt of child pornography is punishable by statutory penalties of between 5-20 years imprisonment followed by a term of up to lifetime supervised, and a fine of $250,000.
This case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
###
Armed Robber Pleads GuiltyRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Patrick D. Cummings (44, Pinellas County) has pleaded guilty to interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence. He faces a maximum penalty of 20 years in federal prison on the robbery charge, followed by a mandatory minimum consecutive prison term of seven years, up to life, on the firearm charge.
According to court documents, at approximately 4:09 a.m., on March 24, 2017, Cummings entered a Walgreens pharmacy in St. Petersburg, pressed a handgun against a cashier, and demanded all of the money from her register. Cummings repeatedly threatened to shoot the cashier. He then stole approximately $374 and ran away.
This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as part of the St. Petersburg Violent Crime Reduction Initiative. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Albany Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Amado Colon, age 21, of Albany, New York, pled guilty today to distributing, receiving and possessing child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Colon admitted that in June 2014, he posted child pornography images to an image-sharing web site based in Russia, allowing visitors to the site to view the images. He also received, from others, the username and password information for 8 Dropbox remote storage accounts, each of which contained hundreds of images of child pornography. Colon then took exclusive control over these accounts, and the child pornography in them, by changing the accounts’ usernames and passwords. Colon also admitted to possessing child pornography files on several electronic devices found in his house.
Colon, who was ordered to jail upon his plea of guilty, faces at least 5 years and up to 20 years in prison, to be followed by supervised release of at least 5 years and up to life, and a maximum $250,000 fine, when he is sentenced on November 20, 2017 by Senior United States District Judge Gary L. Sharpe. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant United States Attorney Michael Barnett.
Wednesday 26 July 2017
York Man Indicted for Possession of A FirearmRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ernest Dyer, age 44, of York, Pennsylvania, was indicted by a federal grand jury for possessing a firearm after having been previously convicted of a felony.
According to U.S. Attorney Bruce D. Brandler, the indictment alleges that Dyer had a firearm in his possession in his home in York, Pennsylvania, when he was arrested on a local warrant on July 7, 2017. During the investigation, agents and detectives seized a Hi-Point .40 caliber semi-automatic handgun, loaded with ten .40 caliber cartridges in the magazine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Northern York County Regional Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Meredith A. Taylor is prosecuting 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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
West Palm Beach Man Convicted of Conspiring with his Brother, a United States Postal Service Letter Carrier,Read the Press Release
Today, a federal jury convicted a West Palm Beach resident of conspiring with his brother, a United States Postal Service Letter Carrier, to commit access device fraud and aggravated identity theft.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Maximo Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Cissy Proctor, Executive Director, Florida Department of Economic Opportunity (DEO), made the announcement.
Mikel Clotaire was convicted following a three-day trial in West Palm Beach, Florida of conspiring to commit access device fraud, access device fraud, and five counts of aggravated identity theft. Sentencing is scheduled for October 12, 2017, before United States District Court Donald M. Middlebrooks.
According to the court record, including evidence introduced at trial, Clotaire engaged in a scheme to obtain fraudulent re-employment benefits from DEO. Clotaire’s brother was working at the time as a letter carrier for the United States Postal Service in Palm Beach Gardens, Florida. At least eight fraudulent unemployment applications, using stolen identities, were then submitted to DEO and resulted in the issuance of Florida Visa debit cards. The debit cards were mailed through interstate commerce to the residential addresses on the postal route. The cards were ultimately transferred to Clotaire and at least two other co-conspirators and used to make withdrawals from ATMs. As a result of the fraudulent scheme, the State of Florida sustained approximately $25,000 in financial losses.
Mr. Greenberg commended the investigative efforts of the DOL-OIG, USPS-OIG, USPIS and DEO. This case is being prosecuted by Assistant U.S. Attorney Adam McMichael.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Waterloo Man to Prison for Second Felon in Possession ConvictionRead the Press Release
A convicted felon who possessed a loaded handgun, a digital scale, and marijuana in December 2016, was sentenced today to seven years in federal prison.
John Daniel Forehand III, age 31, from Waterloo, Iowa, received the prison term after a March 20, 2017, guilty plea to being a felon in possession of a firearm.
At the guilty plea, Forehand admitted he possessed a loaded Smith and Wesson .22 caliber pistol on December 16, 2016. Evidence at an earlier hearing showed that Waterloo police officers found the pistol during a traffic stop. The pistol, which had an obliterated serial number, was in a bag that also contained a digital scale and a children’s cup, both of which also had marijuana residue. Forehand had previously been convicted of felony possession with intent to distribute marijuana and of being a felon in possession of a firearm.
Forehand was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Forehand was sentenced to 84 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Forehand is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Waterloo Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02006-LRR.
Follow us on Twitter @USAO_NDIA.
Waterloo Armed Career Criminal Sentenced to 15 Years in Federal Prison for Selling Stolen FirearmRead the Press Release
A man who sold a stolen firearm during an undercover sting operation was sentenced today to 15 years in federal prison.
Vernon Montrell Webster, age 44, from Waterloo, Iowa, received the prison term after a March 17, 2017, guilty plea to being a felon in possession of a firearm.
At the guilty plea, Webster admitted he unlawfully possessed a 44 Magnum revolver and 30 rounds of ammunition in July 2015. Testimony at an earlier hearing showed that Webster sold the revolver, which had previously been stolen, and ammunition to another individual during an undercover sting operation. Additional testimony showed that during another undercover operation in December 2016, Webster sold a bulletproof vest that had previously been stolen from a reserve police officer. At sentencing, the court noted that Webster had previously been convicted of felony burglary three times, and of one felony drug conviction.
Webster was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Webster was sentenced to 180 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Webster is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Tri‑County Drug Enforcement Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02005-LRR.
Follow us on Twitter @USAO_NDIA.
Wall Street Investment Analyst Sentenced to More Than 3 Years in Prison for Insider TradingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JOHN AFRIYIE, a former analyst at a Manhattan-based private investment fund (the “Fund”), was sentenced today in Manhattan federal court to 45 months in prison for committing insider trading. AFRIYIE was convicted on January 30, 2017, following a jury trial before U.S. District Court Judge Paul A. Engelmayer, who also imposed today’s sentence.
Manhattan U.S. Attorney Kim said: “On more than two dozen occasions, John Afriyie traded on material nonpublic information, and then used his own mother and destroyed emails to cover up his crimes. The heavy price of the illegal edge Afriyie sought was his liberty.”
According to the Indictment, other filings in Manhattan federal court and the evidence presented at trial:
In January 2016, Apollo Investment Management LLC (“Apollo”) contacted the Fund to discuss the possibility of the Fund providing debt financing for Apollo’s potential acquisition of ADT Corporation (“ADT”). The Fund entered into a non-disclosure agreement with Apollo and was granted access to confidential documents related to the ADT transaction. As an investment analyst at the Fund, AFRIYIE had access to the Fund’s network server, which maintained, among other things, electronic shared directory file folders containing material nonpublic information, including information about Apollo’s acquisition of ADT.
In violation of the Fund’s policies and in breach of his duties to the Fund, AFRIYIE repeatedly accessed material nonpublic information about Apollo’s pending acquisition of ADT in an electronic shared drive folder on the Fund’s network server. In approximately 28 separate transactions between January 28, 2016, and February 12, 2016, AFRIYIE purchased approximately 2,279 ADT call options for a total of $24,254 before the public announcement of that transaction. AFRIYIE purchased the ADT call options through a brokerage account that AFRIYIE controlled, but was held in the name of AFRIYIE’s mother. As cover for his criminal scheme, AFRIYIE repeatedly pretended to be his mother in recorded telephone calls with his broker. AFRIYIE did not reveal his trades or the existence of the brokerage account to the Fund.
The public announcement of Apollo’s acquisition of ADT in February 2016 caused ADT shares to hit $39.64 per share, up from its value of $29.20 per share on the day AFRIYIE began purchasing ADT options. Upon subsequently selling the ADT options, AFRIYIE generated more than $1.5 million in illicit profits.
In connection with his arrest, AFRIYIE lied to agents of the Federal Bureau of Investigation (“FBI”) about his ADT options trades and falsely claimed that his own voice on a recorded call with his broker was really his mother’s voice. Following his arrest, AFRIYIE also attempted to delete the contents of an email account that he had used to communicate with his broker.
After the guilt phase of the trial had concluded, and based on AFRIYIE’s request, the jury also determined that $2,648,862.46 in seized funds were subject to forfeiture as proceeds of AFRIYIE’s crimes.
* * *
In addition to his prison term, AFRIYIE, 29, of Freehold, New Jersey, was sentenced to three years of supervised release, ordered to pay a forfeiture money judgment in the amount of $2,780,720.02, including the forfeiture of $2,705,128.66 in seized funds, and restitution to the Fund in an amount no less than $691,046.42, with a final restitution order to be entered within 90 days of sentencing. AFRIYIE was remanded on January 23, 2017, after he refused to appear in court for trial, and he remains in custody.
Mr. Kim praised the investigative work of the FBI and the Office’s Criminal Investigators. He also thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Christine I. Magdo are in charge of the prosecution. Assistant U.S. Attorney Jennifer L. Gachiri is handling the forfeiture aspects of this prosecution.
Two 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 that two previously deported aliens were indicted separately today by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Eutimio Chavez-Jose, age 40, a citizen of Mexico, was previously deported from the United States to Mexico on four prior occasions, June 2007, twice in June 2011, and June 2012. He is alleged to have illegally re-entered the United States sometime after June 2012, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers. In June 2012, he was convicted in the Western District of New York of illegal reentry, an offense that subjects him to enhanced penalties in the current case.
Because of Chavez-Jose’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.
Javier Miguel-Martinez, age 30, a citizen of Mexico, was previously deported from the United States to Mexico on four prior occasions in July 2006, October 2006, November 2009, and February 2012. He is alleged to have illegally re-entered the United States sometime after February 2012, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Miguel-Martinez faces 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.
# # #
Two Plead Guilty in Multi-Million Dollar Compounding Pharmacy Fraud SchemeRead the Press Release
Hattiesburg, Miss. – Jason May, 40, of Lamar County, Mississippi, and Gerald Jay Schaar, 46, of Biloxi, Mississippi, entered guilty pleas on July 25, 2017, before U.S. District Judge Keith Starrett, for their roles in a multi-million dollar compounding pharmacy health care fraud conspiracy, announced Acting U.S. Attorney Harold Brittain, FBI Special Agent in Charge Christopher Freeze, IRS-Criminal Investigation Special Agent in Charge Jerome R. McDuffie, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service Southeast Field Office.
May pled guilty to conspiracy to commit health care fraud and money laundering in connection with his role as co-owner and pharmacist in charge of Advantage Pharmacy, which received approximately $192 million in reimbursements from TRICARE and other health care benefit programs for compound topical creams. He selected formulas for the compound creams based on reimbursement rates as opposed to medical efficacy. In order to facilitate the scheme to defraud, May and Advantage Pharmacy either did not collect patient copayments for the compound topical creams or paid copayments on behalf of beneficiaries. As a co-owner of Advantage Pharmacy, May received a portion of the reimbursements associated with the fraudulently obtained compound creams and transferred certain of those proceeds from the fraud – in transactions greater than $10,000 - into a money market account held in his name.
Schaar pled guilty to conspiracy to commit health care fraud for his role in a fraudulent scheme in which he, acting as a marketer for a pharmacy located in Lamar County, solicited physicians and other medical professionals to write prescriptions without seeing patients for compound topical creams dispensed by the pharmacy. Schaar, together with others, later falsified patient records to make it seem as though medical professionals had examined the patients who received prescriptions for the compound creams. In total, the pharmacy received $2.3 million in reimbursements for the prescriptions solicited by Schaar.
The charges against May and Schaar were brought as a result of the largest ever national health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants in 41 federal districts across the country, targeting schemes which involved billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries.
"Health care fraud costs the United States tens of billions of dollars a year," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "The FBI Jackson
Division, alongside our law enforcement partners, will continue to seek out those that defraud health care systems in the United States."
"DCIS and our investigative partners remain committed to bringing to justice any individuals who defraud TRICARE, the Department of Defense health care program dedicated to providing medical care to military members and their families," stated Special Agent in Charge John F. Khin, Southeast Field Office, DCIS. "The fraud and corruption uncovered as part of this complex case diverted and wasted precious taxpayer dollars needed for the critical care and well-being of our military members and their families."
Jason May and Gerald Jay Schaar will be sentenced by U.S. District Judge Keith Starrett on October 17, 2017 in Hattiesburg. May faces a maximum penalty of five years in prison and a $250,000 fine. Schaar faces a maximum penalty of ten years in prison and a $250,000 fine.
This case was investigated by the FBI’s Hattiesburg Resident Agency, IRS-Criminal Investigation, Defense Criminal Investigative Service, Health and Human Services Office of Inspector General, Mississippi Bureau of Narcotics, and other government agencies. Department of Justice trial attorneys Dustin Davis and Katherine Payerle, and Assistant U.S. Attorney Mary Helen Wall are prosecuting the case for the government.
Two More Members of ATM Skimming Conspiracy Plead Guilty to Scheme Targeting Multiple New Jersey Bank LocationsRead the Press Release
Two members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty to conspiracy to commit bank fraud today in federal court.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey and Acting Special Agent in Charge Debra Parker of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Newark Division made the announcement.
Stefan Dumitru, 29, of Queens, New York, and Florian Calin Crainic, 47, of Des Plaines, Illinois, pleaded guilty before U.S. District Judge Esther Salas to separate criminal informations charging them each with one count of conspiracy to commit bank fraud.
According to admissions made in court in connection with their guilty pleas, Dumitru, Crainic, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Dumitru and Crainic both admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.
Sentencing for both defendants is set for November 6.
Joel Abel Garcia, Victor A. Hanganu, Radu Bogdan Marin, Marcel Peckham, Catalin Mihai Dragomir, Eduard Vasilica Ticu and Silvester Florentin Papp previously pleaded guilty to their roles in the scheme and await sentencing. To date, nine of the 13 defendants charged in this matter have been convicted.
ICE-HSI’s Newark Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts Police Department; Cambridge, Massachusetts Police Department; and Medford, Massachusetts Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The prosecution is being handled by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Criminal Division Organized Crime and Gang Section.
Two More Members of Atm Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Plead GuiltyRead the Press Release
NEWARK, N.J. – Two members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Acting Special Agent in Charge Debra Parker of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Newark Division made the announcement.
Stefan Dumitru, 29, of Queens, New York, and Florian Calin Crainic, 47, of Des Plaines, Illinois, pleaded guilty before U.S. District Judge Esther Salas to separate informations charging them each with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Dumitru, Crainic, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Dumitru and Crainic both admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing for both defendents is set for Nov. 6, 2017.
Joel Abel Garcia, Victor A. Hanganu, Radu Bogdan Marin, Marcel Peckham, Catalin Mihai Dragomir, Eduard Vasilica Ticu, and Silvester Florentin Papp previously pleaded guilty to their roles in the scheme and await sentencing. To date, nine of the 13 defendants charged in this matter have been convicted.
ICE-HSI’s Newark Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Defense counsel:
Dumitru: Roy Greenman Esq., Union, New Jersey
Crainic: Anthony Iacullo Esq., and Joshua Reinitz Esq., Nutley, New Jersey
Two Cousins Sentenced to Nine and Seven Years in Federal Prison for the Armed Robbery of A Cellular Phone StoreRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On Monday, July 24, 2017, Terry Terrell Clipper, age 27, of Upper Marlboro, Maryland was sentenced to nine years in federal prison by U.S. District Judge Paul W. Grimm. On Thursday, July 20, 2017, Andre Denan Sanders, age 28, of Upper Marlboro, and Clipper’s cousin, was sentenced by U.S. District Judge Paul W. Grimm to 84 months and one day in federal prison. Both Clipper and Sanders pleaded guilty to interference with commerce by robbery and brandishing a firearm during a crime of violence in February.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Hank Stawinski of the Prince George’s Police Department; and Chief Douglas Holland of the Hyattsville Police Department.
On April 7, 2016, at approximately 10:02 a.m., Clipper and Sanders entered the T-Mobile store located at 3601 East West Highway, in Hyattsville, Maryland. Upon entering the store, Clipper brandished a firearm, pointed it at store employees, and demanded cellular telephones. Clipper and Sanders forced the employees to a stockroom in the rear of the store. Sanders then locked the store entrance, and returned to the stockroom. Clipper and Sanders demanded cellular telephones and other electronic items. The store employees complied and put various electronic items into two plastic bags. Clipper and Sanders then fled the scene in a vehicle at a high rate of speed with two large clear plastic bags containing approximately $16,900 worth of cellular telephones, tablets and watches.
One of the electronic devices stolen by Clipper and Sanders contained a Global Positioning System (“GPS”) device. Law enforcement was alerted that the GPS tracking device was traveling in the vicinity of Jefferson Street and 42nd Avenue in Hyattsville, Maryland. When law enforcement officers arrived, they observed Clipper and Sanders fleeing from the area of the getaway vehicle.
After a brief foot chase, Clipper and Sanders were taken into custody. Officers recovered a clear plastic bag containing cellular telephones and other electronic items from the ground along the path that the suspects took during the foot chase. Law enforcement also recovered from the vehicle in which the defendants fled a large clear plastic bag containing multiple cellular telephones, tablets and watches, along with a .38 caliber Smith & Wesson handgun loaded with six rounds of ammunition.
Acting United States Attorney Stephen M. Schenning commended the FBI’s Cross-Border Task Force, the Hyattsville Police Department, and the Prince George’s County Police Department, for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
Three Members of the 39ers Gang SentencedRead the Press Release
Acting U.S. Attorney Duane A. Evans announced the sentencing of three defendants convicted of gang-related offenses with the 39ers gang following the February 2017 six-week long racketeering and murder trial.
Today, U.S. Judge Jay C. Zainey sentenced CURTIS NEVILLE, age 24, to four life sentences, DAMIAN BARNES, age 29, to 252 months, and SOLOMON DOYLE, age 31, to 78 months for their participation in the violent 39ers gang. Specific sentences, by count and by defendant, are as follows:
COUNT CHARGE DEFENDANT SENTENCE 1 Conspiracy to violate the Racketeer Influence and Corrupt Organization Act (RICO) BARNES 240 months imprisonment DOYLE 78 months imprisonment NEVILLE Life imprisonment 2 Conspiracy to distribute controlled substances BARNES 252 months imprisonment NEVILLE Life imprisonment 3 Conspiracy to use and carry and to possess firearms BARNES Each defendant received 240 months imprisonment NEVILLE 29 Murder in aid of racketeering NEVILLE Mandatory life imprisonment (Littlejohn Haynes) 30 Causing death through the use of a firearm (Littlejohn Haynes) NEVILLE Life imprisonment 33 Assault with a dangerous weapon in aid of racketeering (Albert Hardy) NEVILLE 240 months imprisonment 34 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime NEVILLE Consecutive 120 months imprisonment (Albert Hardy) 35 Assault with a dangerous weapon in aid of racketeering (Kelvin Baham) NEVILLE 240 months imprisonment 36 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime NEVILLE Consecutive 300 months imprisonment (Kelvin Baham) 37 Assault with a dangerous weapon in aid of racketeering (Carrie Henry) NEVILLE 240 months imprisonment 38 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime NEVILLE Consecutive 300 months imprisonment (Carrie Henry) 43 Possession with intent to distribute heroin NEVILLE 240 months imprisonment 44Possession of a firearm in furtherance of a drug trafficking crime
NEVILLE Consecutive 300 months imprisonmentActing U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Gang Task Force, the New Orleans Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorneys Myles Ranier, David Haller, Brittany Reed, and Jeff Sandman were in charge of the prosecution.
Three Dubuque Heroin Dealers Sentenced to Federal PrisonRead the Press Release
Two men who sold heroin and fentanyl that killed a Dubuque man in April 2016, and another man who sold heroin and illegally possessed a firearm were sentenced yesterday to federal prison.
Derrick Jermain Brown, age 26, was sentenced to 20 years’ imprisonment following his February 21, 2017 guilty plea to conspiring to distribute heroin and fentanyl within 1,000 feet of a playground and public elementary school. Antwain Deshaun Spratt, age 39, was sentenced to 20 years’ imprisonment following his December 2016 guilty plea to distributing heroin within 1,000 feet of a playground and a public elementary school and his February 2017 guilty plea to being a felon in possession of a firearm. Tywone Derrel Matthews, age 41, was sentenced to just under 6 years’ imprisonment after the court found him guilty on January 31, 2017 of distributing heroin near a playground and a public elementary school, distributing heroin and fentanyl near a playground and a public elementary school, and possessing with intent to distribute heroin and fentanyl near a playground and a public elementary school.
The court found Brown was a leader of a heroin and fentanyl distribution ring operating out of a residence on Iowa Street in Dubuque. Brown admitted to selling over 1 kilogram of heroin over the course of about three years. Brown also admitted that on April 11, 2016, a female heroin customer called Brown to order heroin from him. Following the call to Brown, Matthews left the Iowa Street residence, met with the customer, and distributed a mixture of heroin and fentanyl to her. The customer took the heroin/fentanyl mixture back to the residence she shared with her boyfriend, and she and her boyfriend injected some of it. After injecting the mixture, the female lost consciousness. When she awoke, her boyfriend was dead of an overdose. The court sentenced Brown and Matthews to additional time in prison for their roles in distributing the heroin and fentanyl mixture that caused the boyfriend’s death.
At his plea hearing in December 2016, Spratt admitted he sold heroin to another individual during an undercover operation. Evidence at a prior hearing showed that in April 2016, while a federal arrest warrant was pending on the heroin charge, Deputy United States Marshals found Spratt hiding in a closet in a Dubuque residence. Officers found a handgun in a clothes hamper outside the closet where Spratt was hiding. Spratt had previously been convicted of three prior drug felonies in Illinois, as well as felony theft and willful injury in Black Hawk County, Iowa.
Brown, Spratt, and Matthews were sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Brown was sentenced to 240 months’ imprisonment and a $100 special assessment. He must also serve an eight-year term of supervised release after the prison term. Spratt was also sentenced to a total of 240 months’ imprisonment. He must also serve a total of six years of supervised release after the prison term, and pay $200 in special assessments. Matthews was sentenced to a total of 71 months’ imprisonment, and six years’ supervised release after the prison term. He must also pay $300 in special assessments. There is no parole in the federal system.
All three men are being held in the United States Marshal’s custody until they can be transported to federal prisons.
Four other men were previously sentenced for their roles in distributing heroin and fentanyl in Dubuque. D’Anthony Lamont Moore was sentenced to 75 months’ imprisonment following his guilty plea to three counts of distributing heroin near a school and playground. Jeffery Donta Hitchcock was sentenced to 36 months’ imprisonment following his guilty pleas to distributing heroin near a college and playground. Antoine Tavares Mitchell was sentenced to 13 months’ imprisonment following his guilty plea to conspiring to distribute heroin. Antrell Desharron Lewis was sentenced to 18 months’ imprisonment for distributing heroin near a school and playground. Lewis was also subsequently convicted of distributing and conspiring to distribute heroin and furanylfentanyl resulting in death and serious bodily injury. He is awaiting sentencing on those charges
The case was investigated by the Dubuque Drug Task Force and Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number for Brown, Moore, Matthews, Spratt, and Hitchcock is 16‑CR‑01018-LTS. The case file number for Mitchell and Lewis is 16‑CR‑01017‑LTS. The other case file number for Lewis is 17-CR-00005-LTS.
Follow us on Twitter @USAO_NDIA.
Three Additional Individuals Sentenced on Methamphetamine Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – On July 25, 2017, three additional individuals were sentenced by the Honorable R. Leon Jordan, U.S. District Judge, for their roles in a methamphetamine distribution conspiracy centered in and around the Morristown, Tennessee area. Misty Munsey- Killian, 38, of Whitesburg, Tennessee, who was also convicted of participating in a money laundering conspiracy, will serve 235 months. Larry Wayne Martin, 54, of Russellville, Tennessee, and Jeremy Kane Jones, 31, of Morristown, Tennessee, will serve 120 and 110 months respectively.
According to the plea agreements on file with the U.S. District Court, the combined total amount of actual methamphetamine attributed to Munsey-Killian, Martin and Jones was between 235 to 700 grams.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation, Hamblen County Sheriff’s Office, Morristown, Tennessee Police Department and the Third and Fourth District Judicial Drug Task Forces. Assistant U.S. Attorneys Wayne Taylor and David Gunn represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
###
Store Manager at Federally Licensed Firearms Dealer in Albany Sentenced for Unlawful Possession of SilencersRead the Press Release
EUGENE, Ore. – On Wednesday, July 26, 2017, U.S. District Court Judge Ann Aiken sentenced Jose Alfredo Morales, 34, of Albany, Oregon, to 24 months in federal prison and three years of supervised release. Morales, who managed GNA Supplies, a Federally Licensed Firearms Dealer (FFL) in Albany, Oregon, previously pleaded guilty on May 17, 2017 to one count of unlawful possession of a silencer.
According to court documents, in November 2015, law enforcement conducted an undercover operation wherein they purchased an unregistered silencer from Morales. During the purchase, Morales stated he knew it was illegal to possess and sell unregistered silencers. On November 30, 2015, Albany Police executed a search warrant at GNA Supplies and found additional silencers not registered to Morales in the National Firearms Registration and Transfer Record.
There are approximately 1,700 federal firearms licensees in the District of Oregon actively engaged in the business of acquiring and transferring firearms. Licensees are regulated by Industry Operations Investigators of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Voluntary compliance with federal firearms regulations is critical in protecting communities from violent criminals, criminal organizations and the illegal use and trafficking of firearms.
The case was investigated by ATF and the Albany Police Department, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, with the assistance of Michael Wynhausen, Linn County Deputy District Attorney.
Stilwell Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JOSHUA WADE CARTER, age 42, of Stilwell, Oklahoma, pled guilty to FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that from in or about November 2016, the exact date being unknown to the Grand Jury, until on or about April 19, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Texas in Tarrant County on or about February 21, 2002, for the offense of Sexual Assault of a Child under 17, resided in Indian Country, and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charge arose from an investigation by the Adair County Sherriff’s Office and the United States Marshals Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
Statement of U.S. Attorney Jill Westmoreland Rose on Allegations Against Word of Faith FellowshipRead the Press Release
CHARLOTTE, N.C. – Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina, has made the following statement regarding allegations against Word of Faith Fellowship:
“The U.S. Attorney’s Office has an ongoing investigation into allegations against Word of Faith Fellowship and we continue to work with our law enforcement partners to gather and evaluate all available information. The review of such information can be lengthy, however, our ultimate goal is to assess the facts and to avoid compromising an ongoing investigation. Ultimately, the evidence and law will determine the appropriate course of action. And, while my office cannot provide additional information or updates on this or any other ongoing federal investigation, we want the public to understand that safeguarding the integrity of the process is foremost.”
Statement by Attorney General Jeff Sessions on Recommendations from the Task Force on Crime Reduction and Public SafetyRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the work of the Task Force on Crime Reduction and Public Safety:
"Every American, no matter who they are or where they live, has the right to be safe in their homes and neighborhoods. And yet, in many locations, the violent crime rate is rising, and in some of our urban areas, the increase is staggering. Reducing this crime surge is a top priority for President Trump and the Department of Justice. Consistent with the President's Executive Order on a Task Force on Crime Reduction and Public Safety, I created the Task Force in February and it has provided me with recommendations on a rolling basis. Dedicated professionals from throughout the Department have been listening to our partners in state, local, and tribal law enforcement; identifying successful violent crime reduction strategies; and developing recommendations on actions the Department can take to help improve public safety.
"I have been acting on the Task Force's recommendations to set the policy of the Department. I will continue to review all of the Task Force's recommendations, and look forward to taking additional steps towards ensuring safer communities for all Americans."
Stamford Resident Admits to Operating Extensive Immigration Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID NIKOLASHVILI, 52, a citizen of the Republic of Georgia residing in Stamford, pleaded guilty today in Hartford federal court to engaging in an immigration fraud scheme.
According to court documents and statements made in court, NIKOLASHVILI operated an immigration fraud scheme through which he obtained false immigration status from U.S. Citizen and Immigration Services for approximately 50 to 60 citizens of European countries. As part of the scheme, after aliens paid NIKOLASHVILI between $12,000 and $16,000, he would arrange sham marriages between the aliens and U.S. citizens in order to obtain immigration benefits for the aliens. The U.S. citizens were paid to enter into the sham marriages.
NIKOLASHVILI pleaded guilty to one count of making a false swearing in an immigration matter, an offense that carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on October 27, 2017.
NIKOLASHVILI was arrested on June 21, 2016. He is released on a $75,000 bond pending sentencing.
This investigation has been conducted by Homeland Security Investigations, U.S. Citizenship and Immigration Services’ Office of Fraud Detection and National Security Unit, and U.S. Department of State, Bureau of Diplomatic Security. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
St. Francis Man Sentenced for Failure to RegisterRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on July 25, 2017, by U.S. District Judge Roberto A. Lange.
Joseph Blue Bird, age 30, was sentenced to 10 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Blue Bird was indicted by a federal grand jury on September 13, 2016. He pled guilty on May 15, 2017.
The conviction stems from Blue Bird failing to register as a sex offender as required by federal law between June 16, 2016, and September 13, 2016. Blue Bird had previously been convicted of a sex offense in federal court, which requires him to register within three days of arrival in a state or upon changing his place of residence.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Blue Bird was immediately turned over to the custody of the U.S. Marshals Service.
Six Brooklyn Men Charged with Heroin Trafficking and Use of FirearmsRead the Press Release
Earlier today, a two-count indictment was unsealed in federal court in Brooklyn, New York, charging Victor Agosto, also known as “Bebo,” Perfecto Deleon, also known as “Fec,” Luis Lopez, also known as “Lou,” Andres Reyes, also known as “Dre,” Nestor Rivera, also known as “Tito” and “Tito Bird,” and Peter Vasquez as members of a narcotics trafficking conspiracy. Agosto, Lopez, and Vasquez face an additional charge for use of firearms in connection with their narcotics trafficking. The defendants’ narcotics operation is based in Brooklyn and Queens.
The defendants’ initial appearances and arraignments are scheduled for this afternoon before United States Magistrate Judge Steven L. Tiscione at the United States Courthouse, 225 Cadman Plaza East, in Brooklyn.
The arrests and charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD). The arrests follow a long-term investigation by the FBI and NYPD into the narcotics activities of the defendants.
According to the indictment and other court documents, all of the defendants were members of a large-scale heroin trafficking organization with Mexican cartel connections that trafficked in hundreds of kilograms of heroin into New York City. The defendants transported the heroin from Los Angeles and Chicago, and traveled directly to Mexico for narcotics-related meetings in furtherance of their trafficking operation. One of the defendants relied on a crew of the violent street gang the Young Gunnerz, also known as the YGs, based in the Bushwick section of Brooklyn to provide protection of the illicit business.
Between December 2011 and February 2015, law enforcement seized over $800,000 in alleged drug proceeds hidden in “traps” designed to conceal contraband in vehicles connected to Lopez and his brother-in-law, Vasquez. The proceeds of their illicit narcotics operation have funded the purchase of a fleet of luxury vehicles, and hundreds of thousands of dollars in jewelry. Lopez celebrated Christmas with an Audemars Piguet watch worth approximately $20,000, and a birthday with a 256-gram piece of gold jewelry and diamond encrusted ring. One defendant chauffeured his infant child in a Versace baby stroller that retails for over $3,000, dressed his eight-year-old in Gucci sneakers worth hundreds of dollars, and showered his wife with a Rolex watch, Chanel handbag and Versace dress. Today, law enforcement seized approximately twelve kilograms of heroin valued at $900,000 from a stash house maintained by members of the conspiracy, and five luxury vehicles: a Rolls Royce Ghost, Lamborghini Hurácan, Audi R8 Spyder, Mercedes CLS63 AMG and Range Rover Sport. The ill-gotten proceeds of the narcotics trafficking conspiracy will be subject to forfeiture, according to the indictment.
“As charged, the defendants are members of a multi-million dollar heroin trafficking organization with access to firearms and ties to other states and a Mexican cartel,” stated Acting United States Attorney Rohde. “Today’s arrests are the latest example of the success that can be achieved through federal, state and local law enforcement cooperation to combat narcotics trafficking and the all too often associated violence in our communities.” Ms. Rohde gives particular thanks to the New York Metropolitan Safe Streets Task Force, which is comprised of detectives from the NYPD and agents from the FBI, and additionally thanks the Ohio State Highway Patrol, Pennsylvania State Police, Indiana State Police, New Jersey State Police, the Chicago Field Divisions of the Drug Enforcement Administration and Homeland Security Investigations, the Drug Enforcement Administration New York City Strike Force and the Bergen County Prosecutor’s Office for their participation and assistance in the investigation.
“Through their alleged heroin trafficking operation, the defendants not only lived a sham lavish life, but trafficked hundreds of kilograms of this deadly drug in New York City,” stated Assistant Director-in-Charge Sweeney. “It is our duty and priority to take out the leadership of these organizations. We’re not just going after the dealers of illegal prescription and street drugs, but everyone involved in the supply chain to stop the crippling impact both are having on our communities.”
“The heroin epidemic is real. These defendants not only moved large amounts of heroin across the country -- they carried firearms to protect their turf and extravagant lifestyle,” stated NYPD Commissioner O’Neill. “Today, the drugs, guns, and expensive cars are all in our possession; several are under arrest; and New Yorkers are safer with this poison off the street.”
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, all of the defendants face mandatory minimum sentences of 10 years’ imprisonment and maximum sentences of life. In addition, for using firearms in furtherance of narcotics trafficking, defendants Agosto, Lopez and Vasquez face consecutive five-year minimum terms.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys David C. Pitluck, Lindsay K. Gerdes and Jennifer M. Sasso are in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Unit.
The Defendants:
VICTOR AGOSTO, also known as “Bebo”
Age: 29
Brooklyn, New York
PERFECTO DELEON, also known as “Fec”
Age: 42
Brooklyn, New York
LUIS LOPEZ, also known as “Lou”
Age: 35
Brooklyn, New York
ANDRES REYES, also known as “Dre”
Age: 34
Brooklyn, New York
NESTOR RIVERA, also known as “Tito” and “Tito Bird”
Age: 39
Brooklyn, New York
PETER VASQUEZ
Age: 30
Queens, New York
E.D.N.Y. Docket No. 17-CR-390 (RJD)
Sioux Falls Man Sentenced on Transfer of Obscene Material ChargeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Brandon, South Dakota, man convicted of transfer of obscene material was sentenced on Monday, July 24, 2017, by U.S. District Judge Karen E. Schrier.
Ryan Jervik, age 30, was sentenced to 6 months in custody, followed by 3 years supervised release, which includes 6 months of home confinement. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Jervik was indicted for attempted transfer of obscene material to a minor and attempted enticement of a minor using the internet by a federal grand jury on October 4, 2016. He pled guilty on April 25, 2017.
On August 29, 2016, Jervik used his cell phone to communicate with an individual he believed to be a minor female that was 13-years old. The defendant knowingly used his cell phone to transfer a digital nude photo of himself, to the individual he believed was 13-years old. Unknown to the defendant, the individual receiving the obscene images was an undercover law enforcement officer.
This case was investigated by the U.S. Department of Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Jervik was given a date to self-surrender to the Federal Bureau of Prisons.
Sioux Falls Man Sentenced for Sexual Exploitation of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of sexual exploitation of a child was sentenced on Monday, July 24, 2017, by U.S. District Judge Karen E. Schrier.
Terance Morice Highbull, 38, was sentenced to 25 years in custody, followed by15 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Highbull was indicted for sexual exploitation of a child by a federal grand jury on February 23, 2016. He pled guilty on April 24, 2017.
On or about February 9, 2015, officers from the Sioux Falls Police Department responded to a family dispute call at the home of Highbull’s girlfriend. While at the residence, a report of naked photographs on Highbull’s cell phone was made. Police seized the cell phone and began investigating the claims. Highbull had engaged in sexual contact with his girlfriend’s 13 year-old daughter and recorded it on his cell phone.
“Sexual exploitation of a child is among the most heinous crimes we prosecute. The actions of these sexual predators can alter a child’s life forever and steal their innocence during a crucial time in their formative years. The sentence handed down to Terance Highbull is indicative of the serious nature of these acts,” said U.S. Attorney Seiler.
This case was investigated by the Sioux Falls Police Department, along with the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Highbull was immediately turned over to the custody of the U.S. Marshals Service.
Schenectady Man Sentenced to 63 Months on Firearm and Drug ChargesRead the Press Release
ALBANY, NEW YORK – Edwin Ferrer, age 44, of Schenectady, New York, was sentenced today to 63 months in prison for unlawfully possessing a handgun, ammunition, and crack cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
On March 29, 2017, following a three-day trial, a jury voted to convict Ferrer of unlawfully possessing a firearm and ammunition, as well as a small quantity of crack cocaine. The evidence presented at trial showed that on December 18, 2015, Ferrer was driving his Cadillac SUV in Schenectady when he accidentally shot himself in the leg with his Smith & Wesson pistol. Investigators searched his SUV and recovered the pistol, six rounds of ammunition, and approximately a quarter of a gram of crack cocaine. As a felon, Ferrer was prohibited from possessing the pistol and ammunition.
United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release, which will start after Ferrer is released from prison.
This case was investigated by the ATF and the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Rick Belliss.
Saratoga County Man Arrested on Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK - Peter Farnum, age 41, of Ballston Lake, New York, appeared today in federal court on charges that he received and possessed child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint filed against Farnum alleges that between October 2015 and April 2016, he used a home computer to download and store thousands of files containing child pornography.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted of all charges, Farnum faces at least 5 years and up to 20 years in prison, to be followed by supervised release of at least 5 years and up to life, and a maximum $250,000 fine. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, with the assistance of the Saratoga County Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Joseph A. Giovannetti.
Russian National and Bitcoin Exchange Charged in 21-Count Indictment for Operating Alleged International Money Laundering Scheme and Allegedly Laundering Funds from Hack of Mt. GoxRead the Press Release
SAN FRANCISCO – A grand jury in the Northern District of California has indicted a Russian national and an organization he allegedly operated, BTC-e, for operating an unlicensed money service business, money laundering, and related crimes. The announcement was made by U.S. Attorney Brian J. Stretch for the Northern District of California; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Internal Revenue Service (IRS) Criminal Investigation Chief Don Fort; Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Acting Executive Associate Director Derek Benner; Federal Bureau of Investigation (FBI) Special Agent in Charge of the Louisville Division Amy Hess; United States Secret Service (USSS) Special Agent in Charge of the Criminal Investigative Division Michael D’Ambrosio; Federal Deposit Insurance Corporation (FDIC), Office of the Inspector General, Inspector General Jay N. Lerner; and Acting Director of the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), Jamal El-Hindi.
“Cryptocurrencies such as Bitcoin provide people around the world new and innovative ways of engaging in legitimate commerce. As this case demonstrates, however, just as new computer technologies continue to change the way we engage each other and experience the world, so too will criminals subvert these new technologies to serve their own nefarious purposes,” said U.S. Attorney Stretch. “This office will continue to devote the necessary resources to ensure that money launderers and cyber-criminals are detected, apprehended, and brought to justice wherever and however they use the internet to commit their crimes.”
"As this case demonstrates, the Criminal Division employs a multi-faceted approach to dismantling criminal enterprises, by prosecuting the criminal actors themselves, and by shutting down their ability to monetize their crimes through entities that facilitate money laundering," said Acting Assistant Attorney General Blanco. "The Criminal Division will work tirelessly to identify those who use technology to conduct and obscure their criminal activity, as we ensure there are no safe havens from U.S. justice for those who seek to victimize Americans."
“Homeland Security Investigations is strongly committed to tracking down criminals who seek to strike at the foundations of global financial security through complex money laundering schemes,” said HSI Acting Executive Associate Director Derek Benner. “The resulting indictment is a clear representation of why our close law enforcement partnerships are vital to our shared missions. HSI will continue to aggressively target those who deliberately seek to exploit financial systems for personal gain."
“Mr. Vinnik is alleged to have committed and facilitated a wide range of crimes that go far beyond the lack of regulation of the bitcoin exchange he operated. Through his actions, it is alleged that he stole identities, facilitated drug trafficking, and helped to launder criminal proceeds from syndicates around the world,” said Chief Don Fort, IRS Criminal Investigation. “Exchanges like this are not only illegal, but they are a breeding ground for stolen identity refund fraud schemes and other types of tax fraud. When there is no regulation and criminals are left unchecked, this scenario is all too common. The takedown of this large virtual currency exchange should send a strong message to cyber-criminals and other unregulated exchanges across the globe.”
“BTC-e was noted for its role in numerous ransomware and other cyber-criminal activity; its take-down is a significant accomplishment, and should serve as a reminder of our global reach in combating transnational cyber crime,” said Special Agent in Charge of the USSS Criminal Investigative Division Michael D’Ambrosio. “We are grateful for the efforts of our law enforcement partners in achieving this significant result.”
"The arrest of Alexander Vinnik is the result of a multi-national effort and clearly displays the benefits of global cooperation among US and international law enforcement,” said FBI Special Agent in Charge Hess. “This investigation demonstrates the long-term commitment given to identifying and pursuing criminals world-wide with a whole of government approach. This was a highly complex investigation that has only reached this stage due to the persistent and dedicated efforts of all the parties involved. We must continue to impose real costs on criminals, no matter who they are or where they attempt to hide."
“The Federal Deposit Insurance Corporation Office of Inspector General works to ensure the integrity of the financial service sector and is committed to holding accountable those involved in criminal activity that undermine its integrity,” said Inspector General Lerner. “This investigation demonstrates what can be achieved among the cooperative partnerships in the domestic and international law enforcement community.”
The indictment describes Alexander Vinnik, 37, a Russian citizen, as the owner and operator of multiple BTC-e accounts, including administrator accounts, and also a primary beneficial owner of BTC-e’s managing shell company, Canton Business Corporation. According to the indictment, numerous withdrawals from BTC-e administrator accounts went directly to Vinnik’s personal bank accounts. The indictment further alleges that proceeds from well-known hacks and thefts from bitcoin exchanges were funded through a BTC-e administrator account associated with Vinnik. Vinnik was arrested in Greece on July 25.
According to the indictment unsealed today, BTC-e, founded in 2011, was one of the world’s largest and most widely used digital currency exchanges. The indictment alleges that BTC-e allowed its users to trade in the digital currency “Bitcoin” with high levels of anonymity. The indictment alleges that although Bitcoin has known legitimate uses, the virtual currency, like cash, can be used to facilitate illicit transactions and to launder criminal proceeds. According to the indictment, since its inception, Vinnik and others developed a customer base for BTC-e that was heavily reliant on criminals, including by not requiring users to validate their identity, obscuring and anonymizing transactions and source of funds, and by lacking any anti-money laundering processes. The indictment alleges BTC-e was operated to facilitate transactions for cybercriminals worldwide and received the criminal proceeds of numerous computer intrusions and hacking incidents, ransomware scams, identity theft schemes, corrupt public officials, and narcotics distribution rings. Thus, the indictment alleges, BTC-e was used to facilitate crimes ranging from computer hacking, to fraud, identity theft, tax refund fraud schemes, public corruption, and drug trafficking. The investigation has revealed that BTC-e received more than $4 billion worth of bitcoin over the course of its operation.
As to Vinnik, the indictment alleges that he received funds from the infamous computer intrusion or “hack” of Mt. Gox – an earlier digital currency exchange that eventually failed, in part due to losses attributable to hacking. The indictment alleges that Vinnik obtained funds from the hack of Mt. Gox and laundered those funds through various online exchanges, including his own BTC-e and a now defunct digital currency exchange, Tradehill, based in San Francisco, California. The indictment alleges that by moving funds through BTC-e, Vinnik sought to conceal and disguise his connection with the proceeds from the hacking of Mt. Gox and the resulting investigation.
As for defendant BTC-e, the indictment alleges that, despite doing substantial business in the United States, BTC-e was not registered as a money services business with the U.S. Department of the Treasury, had no anti-money laundering process, no system for appropriate “know your customer” or “KYC” verification, and no anti-money laundering program as required by federal law. According to the company’s website, BTC-e is located in Bulgaria but organized or otherwise subject to the laws of Cyprus. The exchange allegedly maintains a base of operations in the Seychelles Islands and its web domains are registered to shell companies in, among other places, Singapore, the British Virgin Islands, France, and New Zealand.
The indictment charges BTC-e and Vinnik with one count of operation of an unlicensed money service business, in violation of 18 U.S.C. § 1960, and one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h). In addition, the indictment charges Vinnik with seventeen counts of money laundering, in violation of 18 U.S.C. § 1956(a)(1), and two counts of engaging in unlawful monetary transactions, in violation of 18 U.S.C. § 1957. An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
FinCEN today assessed a $110 million civil money penalty against BTC-e for willfully violating U.S. anti-money laundering (AML) laws. Alexander Vinnik was assessed $12 million for his role in the violations.
“We will hold accountable foreign-located money transmitters, including virtual currency exchangers, that do business in the United States when they willfully violate U.S. AML laws,” said Acting FinCEN Director Jamal El-Hindi. “Today’s action should be a strong deterrent to anyone who thinks that they can facilitate ransomware, dark net drug sales, or conduct other illicit activity using encrypted virtual currency. Treasury’s FinCEN team and our law enforcement partners will work with foreign counterparts across the globe to appropriately oversee virtual currency exchangers and administrators who attempt to subvert U.S. law and avoid complying with U.S. AML safeguards.”
If convicted of these crimes, Vinnik faces the following maximum penalties:
Violation
Statute
Maximum Penalty
operation of an unlicensed money service business
18 U.S.C. § 1960
5 years of imprisonment
conspiracy to commit money laundering
18 U.S.C. § 1956(h)
20 years of imprisonment and a $500,000 fine or twice the value of the property involved in the transaction
money laundering
18 U.S.C. § 1956(a)(1)
20 years of imprisonment and a $500,000 fine or twice the value of the property involved in the transaction (each count)
engaging in unlawful monetary transactions
18 U.S.C. § 1957
10 years of imprisonment and a $500,000 fine or twice the value of the property involved in the transaction (each count)
Additional fines, restitution, and supervised release also may be ordered. However, any sentence will 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.
This case is being investigated by the Internal Revenue Service (the Oakland Calif., Field Office and Cyber Crime Unit in Washington, D.C.); Department of Homeland Security, Homeland Security Investigations; FBI; U.S. Secret Service Criminal Investigative Division; and Federal Deposit Insurance Corporation, Office of the Inspector General. The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section. The Criminal Division’s Office of International Affairs provided substantial assistance on the case.
Rowlett Woman Sentenced to 48 Months in Federal Prison for Role in Healthcare Fraud ConspiracyRead the Press Release
DALLAS — Charity Eleda, R.N., 56, of Rowlett, Texas, was sentenced this morning in federal court in Dallas on a health care fraud conspiracy conviction, announced U.S. Attorney John Parker of the Northern District of Texas.
Eleda was sentenced by U.S. District Judge Sam A. Lindsay to 48 months in federal prison and ordered to pay $397,294.51 in restitution to Medicare. She has been in custody since April 2016, after a federal jury found her guilty of various health care fraud offenses.
Eleda, along with co-defendants, Jacques Roy, M.D., 59, of Rockwall, Texas; Cynthia Stiger, 54, of Dallas; and Wilbert James Veasey, Jr., 65, of Dallas, were each convicted following a six-week-long trial on one count of conspiracy to commit health care fraud. In addition, Roy was convicted on eight, Veasey on three and Eleda on four counts of health care fraud. Roy was also convicted on two counts of making a false statement relating to healthcare matters and one count of obstruction of justice. Eleda was also convicted on three counts of making false statements for use in determining rights of benefit and payment by Medicare.
Three other defendants charged in the case, Cyprian Akamnonu and his registered nurse wife, Patricia Akamnonu, both of Cedar Hill, Texas, and Teri Sivils, of Midlothian, Texas, each pleaded guilty before trial to one count of conspiracy to commit health care fraud. Cyprian and Patricia Akamnonu are each currently serving a ten-year federal prison sentence. They were also ordered to pay $25 million in restitution. Sivils pleaded guilty in April 2015, and was sentenced to 3 years probation.
The government presented evidence at trial that Dr. Roy, Stiger, Veasey and Eleda engaged in a large-scale, sophisticated health care fraud scheme in which they conspired together and with others to defraud Medicare and Medicaid through companies they owned/controlled: Medistat Group Associates, P.A., Apple of Your Eye Health Care Services, Inc., Ultimate Care Home Health Services and Charry Home Care Services.
As part of the conspiracy, Stiger, Veasey and Eleda, along with others, improperly recruited individuals with Medicare coverage to sign up for Medicare home health care services. Eleda recruited patients from The Bridge homeless shelter in Dallas, sometimes paying recruiters $50 per beneficiary they found and directed to her vehicle parked outside the shelter’s gates. Eleda and other nurses would falsify medical documents to make it appear as though those beneficiaries qualified for home health care services that were not medically necessary. Eleda and the nurses prepared Plans of Care (POC), also known as 485’s, which were not medically necessary, and these POCs were delivered to Dr. Roy’s office and not properly reviewed by any physician.
Dr. Roy instructed his staff to certify these POCs, which indicated to Medicare and Medicaid that a doctor, typically Dr. Roy, had reviewed the treatment plan and deemed it medically necessary. That certifying doctor, typically Dr. Roy, certified that the patient required home health services, which were only permitted to be provided to those individuals who were homebound and required, among other things, skilled nursing. This process was repeated for thousands of POCs, and, in fact, Medistat’s office included a “485 Department,” essentially a “boiler room” to affix fraudulent signatures and certifications.
Once an individual was certified for home health care services, Eleda, nurses who worked for Stiger and Veasey, and other nurses falsified visit notes to make it appear as though skilled nursing services were being provided and continued to be necessary. Dr. Roy would also visit the patients, perform unnecessary home visits, and then order unnecessary medical services for the recruited beneficiaries. Then, at Dr. Roy’s instruction, Medistat employees would submit fraudulent claims to Medicare for the certification and recertification of unnecessary home health care services and other unnecessary medical services.
The government presented further evidence at trial that the scope of Dr. Roy’s fraud was massive; Medistat processed and approved POCs for 11,000 unique Medicare beneficiaries from more than 500 different home health agencies. Dr. Roy entered into formal and informal fraudulent arrangements with Apple, Charry, Ultimate and other home health agencies to ensure his fraudulent business model worked and that he maintained a steady stream of Medicare beneficiaries.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) and was brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorneys P.J. Meitl and Nicole Dana and First Assistant U.S. Attorney Chad Meacham prosecuted the case.
# # #
Reno Woman Indicted for Failure to Report to PrisonRead the Press Release
RENO, Nev. – A Reno woman, who was sentenced for bank embezzlement and tax evasion, was indicted today for failure to surrender to the Bureau of Prisons to serve her prison term, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to the indictment, Jennifer Ree Campbell, 51, is charged with one count of failure to surrender to the Bureau of Prisons, FCI Dublin, in Dublin, Calif., as directed by the court after her felony convictions. She was found guilty on Feb. 6, 2017, of theft, embezzlement, and misapplication by a bank employee and attempt to evade income tax. United States District Judge Robert C. Jones sentenced Campbell to 30 months in prison and ordered her to self-surrender by May 8, 2017, to the designated federal correctional institution to serve her sentence. However, Campbell failed to report as ordered.
If convicted, the maximum statutory penalty for failure to surrender is 10 years in prison and a $250,000 fine. Any term of imprisonment imposed for failure to surrender must be served consecutively to the sentence for the underlying conviction.
The case is being investigated by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Carla B. Higginbotham.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
###