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7 September 2017
Federal Grand Jury Files Obstruction Charges Against Santa Fe Cardiologist Awaiting Sentencing on Health Care Fraud ChargeRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division announced that a federal grand jury has returned a new indictment charging Roy G. Heilbron, 54, a cardiologist residing in Santa Fe, N.M., with false statements and obstruction charges. The new charges against Heilbron arise out of his alleged attempt to obstruct and impede proceedings in a pending criminal case.
The two-count indictment, which was filed yesterday, charges Heilbron with making and presenting fraudulent documents regarding his medical condition to a U.S. Probation Officer, and submitting the fraudulent documents for the purpose of postponing or avoiding sentencing in a pending health care fraud prosecution. The new indictment alleges that Heilbron committed the two crimes in Bernalillo County, N.M., and elsewhere, between Aug. 3, 2017 and Aug. 7, 2017.
Heilbron pleaded guilty in federal court in Albuquerque, N.M., to a health care fraud charge on Feb. 17, 2017, under a plea agreement recommending a sentence of two years of imprisonment followed by a term of supervised release to be determined by the court. The Feb. 17, 2017 press release summarizing the proceedings in the health care fraud case in which Heilbron pleaded guilty is attached.
On Aug. 7, 2017, Heilbron’s attorney filed a motion to continue Heilbron’s sentencing hearing, which was scheduled for Aug. 28, 2017, to permit Heilbron to begin chemotherapy in Costa Rica for prostate cancer. The motion included two attachments: a one-page “Treatment Protocol for Roy Heilbron” dated Aug. 3, 2017, which purported to detail Heilbron’s alleged prostate cancer diagnosis, and a three-page “Clinical Summary” dated June 24, 2017, which purported to outline a four-cycle chemotherapy treatment plan. The two documents purported to be authored by a physician with offices in San Jose, Costa Rica, and Miami, Fla.
On Aug. 9, 2017, a U.S. Magistrate Judge issued a warrant for Heilbron’s arrest based on a criminal complaint alleging the same charges as those contained in the new indictment. The complaint outlined the FBI’s investigation into the claims made in the “Clinical Summary” and “Treatment Protocol,” and alleged that Heilbron created the two documents himself and that Heilbron was not a patient of the physician whose name appears on the fraudulent documents. According to the complaint, Heilbron allegedly provided the fraudulent documents to his U.S. Probation Officer on Aug. 4, 2017, in support of a request to postpone his sentencing hearing.
Heilbron was arrested by the FBI in Charlotte, N.C., on Aug. 19, 2017. Heilbron currently is in the custody of the U.S. Marshals Service, which is in the process of transporting Heilbron back to New Mexico to face the charges in the new indictment and sentencing in the health care fraud case.
If convicted on the charges in the new indictment, Heilbron faces a statutory maximum penalty of 15 years of imprisonment on the false statements charge and 30 years of imprisonment on the obstruction of justice charge. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI, with assistance from Charlotte office of the FBI and the U.S. Marshals Service, and is being prosecuted by Assistant U.S. Attorneys Jeremy Peña and George C. Kraehe.
088-170217 Heilbron Fraud Plea Heilbron Complaint Heilbron New IndictmentFederal Agents Arrest U.S. Army Veteran for Posting on Internet Threats to Destroy V.A. Medical Center in Kerrville and Kill EmployeesRead the Press Release
In San Antonio this morning, Special Agents with the Federal Bureau of Investigation arrested 44-year-old Walter Steven Crosley of Lakehills, TX, for using the Internet to post threats to kill individuals working for the U.S. Department of Veteran Affairs (VA) and to damage or destroy buildings by use of explosives announced United States Attorney Richard L. Durbin, Jr.; FBI Special Agent in Charge Christopher Combs, San Antonio Division; and, Special Agent in Charge James Werner, VA Office of Inspector General (VAOIG), South Central Field Office.
According to court records, Crosley served in the Army for 13 years including time in Iraq in support of Operation Iraqi Freedom. In 2005, Crosley, a Motor Transport Operator, suffered multiple injuries resulting from an Improvised Explosive Device (IED) detonation. In 2013, Crosley was permanently retired and received a 100% service-related disability. He has received periodic treatment for his injuries at the Kerrville VA Medical Center.
A criminal complaint and supporting affidavit filed in federal court today alleges that while visiting the facility on June 7, 2017, Crosley made a statement to a nurse that, “I may be the next guy that takes y’all out.” The complaint also states that Crosley, who claims to suffer health issues stemming from his service in Iraq and lack of proper treatment by the VA, periodically uploads videos to YouTube under the name of “Retired Warrior.” In one of the videos, Crosley states that he threatened to blow up the Kerrville VA facility if they did not put him in a war related illness and injury study center. In his video, he also claimed that he would follow in the footsteps of other individuals suffering from Post-Traumatic Stress Disorder (PTSD), who either committed suicide, killed other individuals or destroyed property.
Crosley made his initial appearance this afternoon in federal court in San Antonio. He remains in federal custody pending a detention hearing scheduled for September 21 at 9:30 a.m. Upon conviction, Crosley faces up to ten years in federal prison.
The FBI and the VAOIG investigated this case. Assistant United States Attorney Bud Paulissen 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.
Executive Director of Ocean City, New Jersey, Housing Authority Gets Three Years of Probation for Embezzling Federal FundsRead the Press Release
CAMDEN, N.J. – The former executive director of the Ocean City, New Jersey, Housing Authority (OCHA) was sentenced today to three years of probation for embezzling federal funds received by authority from the U.S. Department of Housing and Urban Development (HUD), Acting U.S. Attorney William E. Fitzpatrick announced.
Alesia Watson, 54, of Galloway Township, New Jersey, previously pleaded guilty before U.S. Magistrate Judge Karen M. Williams to an information charging her with one count of embezzling federal funds received from HUD and administered by OCHA to which she was not entitled. Judge Williams imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:
As executive director, Watson had access to two credit cards maintained by OCHA. From December 2013 through March 2015, Watson purchased 69 MasterCard gift cards using these two OCHA credit cards. She used the gift cards for personal expenses not associated with OCHA or provided them to friends and family members. Watson then used federal funds received from HUD and administered by OCHA to pay the credit card bills associated with the purchase of the gift cards. According to the plea agreement, the loss associated with the embezzlement was more than $6,500 but less than $15,000.
Watson was also ordered to pay restitution of $8,050.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, and special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill of the U.S. Attorney’s Office in Camden.
Defense counsel: John J. Zarych Esq., Northfield, New Jersey
Essex County, New Jersey, Man Pleads Guilty to Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – A South Orange, New Jersey, man today admitted his participation in the September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Keontrae Lawrence, a/k/a “Taz,” 29, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an indictment charging him with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence.
According to the indictment and other documents filed in this case:
On Sept. 6, 2015, Lawrence and others agreed to rob a club in Passaic at gunpoint. During his plea hearing, Lawrence admitted that he knowingly and willfully participated in the robbery and that he and another conspirator brandished a firearm and threatened to use violence against a club employee. He also admitted that he and the other conspirator took $26,084 in cash from the club before fleeing in a getaway car.
The Hobbs Act conspiracy charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and that sentence must be consecutive to any other sentence imposed. Lawrence’s sentencing is set for Jan. 5, 2018.
Lawrence was originally charged with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Shaheed Blamahsah, a/k/a “Aboo,” 30, of East Orange, New Jersey, in November 2016. Cooper and Lawrence were later indicted by a federal grand jury on March 24, 2017, for their roles in the robbery.
Blamahsah pleaded guilty to his role in the robbery and awaits sentencing. The charges against Cooper are still pending, and he is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Division for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: John A. Azzarello Esq., Morristown, New Jersey
Escapee Sentenced to 27 Months for Stealing Identity of a Deceased ChildRead the Press Release
Jon Vincent, a/k/a “Nathan Laskoski,” 45, of Lansdale, Pennsylvania, was sentenced today to 27 months in prison, announced Acting United States Attorney Louis D. Lappen. Defendant Vincent pled guilty in May 2017 to Social Security fraud and aggravated identity theft crimes for his use of the identity of a deceased child for more than two decades. According to the facts admitted to by the defendant during his guilty plea hearing, after being convicted in the state of Texas, the defendant served a prison term, then escaped from a Texas halfway house in 1996. Shortly after his escape, the defendant stole the name of the deceased Nathan Laskoski after visiting a cemetery and finding that the decedent had a birthdate close to Vincent’s own birthdate, to craft a new identity. Vincent subsequently obtained the birth certificate for Laskoski, which he used to apply for a Social Security number in Laskoski’s name.
The defendant has been living using the deceased victim’s stolen identity since mid-1996, and used this identity for various purposes, including to obtain employment, open bank accounts, apply for loans, and to obtain government identification. His use of the stolen identity was discovered when a relative of the deceased victim discovered information on the ancestral website “Ancestry.com” indicating that someone was impersonating the decedent.
The case was investigated by the Social Security Administration, Office of Inspector General, the United States Postal Inspection Service, and the United States Department of Labor Office of Inspector General, with assistance from the Lansdale Police Department. It is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
El Dorado County Man Indicted for Distributing a Designer Drug that Caused the Death of a MinorRead the Press Release
SACRAMENTO, Calif. — On August 31, 2017, a federal grand jury returned a two-count indictment against Elijah Lee Richter, 26, of Camino, charging him with distribution of a controlled substance known as 25i-nBOME that caused death, and possession of a controlled substance, U.S. Attorney Phillip A. Talbert announced.
According to the indictment, on September 8, 2012, Richter knowingly and intentionally distributed 25i-nBOME, a controlled substance analogue, which caused the death of a juvenile named A.A.
This case is the product of an investigation by the El Dorado County Sheriff’s Department, El Dorado County District Attorney’s Office, and the Drug Enforcement Administration as part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant United States Attorneys Jason Hitt and Paul Hemesath are prosecuting the case.
If convicted on the distribution charge, Richter faces a maximum statutory penalty of life in prison, a mandatory minimum of 20 years in prison, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Eagle Butte Man and Woman Charged with Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man and woman have been indicted by a federal grand jury for Distribution of a Controlled Substance.
Perry Crow, Jr., a/k/a Perry Fiddler, age 22, and Estrella Fernandez, a/k/a Star Fernandez, age 20, were indicted on July 11, 2017. Crow appeared before U.S. Magistrate Judge Mark A. Moreno on August 30, 2017, and Fernandez appeared before U.S. Magistrate Judge Mark A. Moreno on September 1, 2017. They both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, at least 3 years and up to life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 23, 2016, Crow knowingly and intentionally twice distributed methamphetamine, a Schedule II controlled substance. The Indictment also alleges that on August 31, 2016, both Crow and Fernandez knowingly and intentionally distributed methamphetamine.
The charges are merely accusations and Crow and Fernandez are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Crow and Fernandez were released on bond pending trial, which has been set for October 31, 2017.
Eagle Butte Man Indicted for Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury for Distribution of a Controlled Substance.
Eunice Jamiel Smart, age 27, was indicted on April 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 30, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on three occasions, September 10, 22, and 23, 2016, in Eagle Butte, Smart knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance.
The charges are merely accusations and Smart is presumed innocent until and unless proven guilty.
This case is being investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Smart was released on bond pending trial. A trial date has not been set.
Dracut Man Charged with Sex TraffickingRead the Press Release
BOSTON – A Dracut man was arrested and indicted yesterday on sex trafficking charges.
Reginald Abraham, 46, was indicted on three counts of sex trafficking by force, fraud or coercion. He was arrested yesterday and detained following an initial appearance in federal court in Boston today.
According to the indictment, at varying times between May 2015 and October 2016, Abraham trafficked three women in Massachusetts and Rhode Island, and used force and threats of force to coerce the women to engage in prostitution.
The charge of sex trafficking provides for a mandatory minimum sentence of 15 years and a maximum sentence of life in prison, five 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Miranda Hooker of Weinreb’s Civil Rights Enforcement Team 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.
Dominican Republic Citizen Sentenced to over 10 Years for Cocaine TraffickingRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Carlos Manuel Perez-Crisostomo a/k/a “Nelson Calderon,” 40, of Portland, was sentenced today in U.S. District Court by Judge George Z. Singal to 121 months in prison and four years of supervised release for conspiring to distribute cocaine and cocaine base, commonly known as “crack.” He pleaded guilty on November 21, 2016.
Court records reveal that between January and March 2016, the defendant distributed multi-ounce quantities of cocaine and crack from an apartment in Portland. On March 6, 2016, law enforcement agents seized about 468 grams of cocaine and 174 grams of crack from his apartment.
The defendant faced a higher guideline sentencing range because he falsely claimed to be a U.S. citizen when he entered his guilty plea under his alias “Nelson Calderon.” An investigation that followed his guilty plea revealed that the defendant is, in fact, a citizen of the Dominican Republic and was unlawfully in the United States at the time of the offense.
The investigation was conducted by the Federal Bureau of Investigation (FBI) and the U.S. Drug Enforcement Administration (DEA), in conjunction with the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the DEA; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, and Lewiston Police Departments.
Dominican National Sentenced to Prison, Faces Deportation for Drug TraffickingRead the Press Release
PROVIDENCE – Francisco Fernandez, a/k/a Joel Antonio Santana Arias, 44, a Dominican national who resided in Lawrence, Mass., was sentenced today in U.S. District Court in Providence, R.I., to 46 months in federal prison for possessing with the intent to distribute nearly two kilograms of cocaine. The cocaine was discovered inside Fernandez’s vehicle by a Rhode Island State Police trooper during a traffic stop in February 2017.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Fernandez to serve 3 years supervised release upon completion of his prison term. At the conclusion of his term of incarceration, Fernandez will be turned over to U.S. Immigration and Customs Enforcement for deportation proceedings.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 37- 46 months. The government recommended the court impose a sentence of 46 months in prison.
Fernandez pleaded guilty on June 19, 2017, to possession with the intent to distribute more than 500 grams of cocaine.
According to information presented to the court, on February 11, 2017, during a traffic stop of Fernandez’s vehicle on I-95 in West Greenwich by a Rhode Island State Police trooper, it was determined that Fernandez did not have a valid driver’s license. As forms of identification, Fernandez provided a Dominican Republic passport and a vehicle registration under the name of Joel Antonio Santana Arias. A further check determined that the name Joel Antonio Santana Arias was an alias for Francisco Fernandez, and revealed an active arrest warrant out of Massachusetts for Fernandez. It was also discovered that Fernandez had mutilated his fingerprints.
After Fernandez was taken into custody, a search of Mr. Fernandez’s vehicle by Rhode Island State Police revealed nearly two kilograms of cocaine inside a backpack, which was located on the front passenger floorboard.
Francisco Fernandez’s sentence is announced by 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 for New England.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin, with the assistance of Assistant U.S. Attorney Zechariah Chafee.
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Department of Justice Announces Priority Consideration Criteria for COPS Office GrantsRead the Press Release
The Department of Justice today announced additional priority consideration criteria for FY 2017 Office of Community Oriented Policing Services (COPS Office) grants. Jurisdictions for FY 2017 were notified that their applications would receive additional points in the application scoring process if their agencies cooperate with federal law enforcement to address illegal immigration, ensuring that federal immigration authorities have the full ability to enforce immigration laws and keep our communities safe.
“Cities and states that cooperate with federal law enforcement make all of us safer by helping remove dangerous criminals from our communities,” Attorney General Jeff Sessions said. “This cooperation is supported by the vast majority of the American people, and jurisdictions with these policies in place should be acknowledged for their commitment to ending violent crime, including violent crime stemming from illegal immigration. Today, the Justice Department announced it will recognize jurisdictions that commit to the rule of law by awarding additional points in the application scoring process for COPS Office grants. My hope is that this recognition will further incentivize every jurisdiction in America to collaborate with federal law enforcement and help us make this country safer.”
Court Orders Hermosa Man to Pay $222,362.11 for Defrauding the National Science FoundationRead the Press Release
National Science Foundation (“NSF”) is a United States agency created to support basic scientific research by providing grants, to individuals, businesses, academic and nonprofit institutions. Scott Thompson, d/b/a as Isosceles, LLC., submitted a grant proposal to study solar cells and develop technology to harvest light and produce renewable energy. Thompson specifically represented that a Post-Doctoral foreign national student of electrical engineering at the South Dakota State University (SDSU) was the principal scientific investigator on the project. Relying on Thompson’s statements, the NSF awarded grant funding. Thompson then represented that the student had worked more than 160 hours on the project, and drew down grant funds. Thompson knew his representations were untrue because he never met or hired the student. He used the grant funds to pay his personal bills. Thompson was found guilty, after a jury trial, of two counts of making false claims and two counts of submitting false documents to the NSF in violation of 18 U.S.C. § 287 and § 1001, and was ordered to pay restitution totaling $87,637.89 to the NSF and SDSU (United States v. Scott Thompson, CR 11-50054).
United States Attorney’s Office then brought a civil action pursuant to the False Claims Act (FCA), 31 U.S.C. § 3729(a)(1), which imposes liability on persons and companies who knowingly submit false claims to the government. Persons who submit a false claim must pay to the United States a civil penalty for each false claim, plus three times the amount of damages the government sustained. Pursuant to the FCA, the Court ordered Thompson to pay a civil judgment of $222,362.11 to the United States. In doing so, the Court stated that Thompson’s “convictions preclude him from denying the essential elements of the government’s FCA claim” and the jury found that Thompson “knowingly presented false claims to the government in order to receive funds from the NSF.” (United States v. Scott Thompson, CIV 15-5060-JLV, Doc. 44).
Criminal restitution, penalties, and debts obtained by fraud are not dischargeable in bankruptcy, 11 U.S.C. § 523. The United States Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government, including grant fraud, and works with various law enforcement agencies to identify and investigate these matters.
The investigation was conducted by the National Science Foundation Office of Inspector General. Assistant United States Attorneys Sarah Collins, Eric Kelderman, and Cheryl Schrempp DuPris prosecuted the criminal and civil cases respectively.
Connecticut Substance Abuse Treatment Provider Pays $627K to Settle False Claims Act AllegationsRead the Press Release
United States Attorney Deirdre M. Daly and Connecticut Attorney General George Jepsen today announced that a Connecticut substance abuse treatment provider and its former CEO will pay $627,000 to resolve allegations that they violated the federal and state False Claims Acts.
THE HARTFORD DISPENSARY and THE HARTFORD DISPENSARY ENDOWMENT CORPORATION (collectively, “Hartford Dispensary”) is a healthcare organization that provides behavioral health and substance use disorder treatment services. It operates various outpatient treatment programs through its nine clinics located in Connecticut. PAUL McLAUGHLIN is the former President and Chief Executive Officer of Hartford Dispensary.
To be certified as an opioid treatment provider (OTP), the OTP must formally designate a medical director, who assumes responsibility for administering all medical services performed by the OTP. The medical director is also responsible for ensuring that the OTP is in compliance with all applicable federal, state, and local laws and regulations.
The government alleges that Hartford Dispensary and McLaughlin made repeated false representations and false certifications to federal and state authorities that Hartford Dispensary had a medical director, as defined by relevant regulations, who was performing the duties and responsibilities required by federal and state law. The government further alleges that these false representations and certifications were material to false or fraudulent claims submitted to the Medicaid program.
To resolve the government’s allegations under the federal and state False Claims Acts, Hartford Dispensary and McLaughlin have agreed to pay $627,000, which covers conduct occurring from January 1, 2009 through November 20, 2015.
A complaint against Hartford Dispensary was filed in the U.S. District Court in Connecticut under the qui tam, or whistleblower, provisions of the both the federal and state False Claims Acts. The relators (whistleblowers), Russell Buchner and Charles Hatheway, former employees of Hartford Dispensary, will receive a share of the proceeds of the settlement in the amount of $112,860. The whistleblower provisions of both the federal and state False Claims Acts provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government.
“Health care providers must be completely honest when certifying information to the government, and the failure to do so will have serious consequences,” stated U.S. Attorney Daly. “The U.S. Attorney’s office is committed to vigorously pursuing health care providers who make false representations to federal health care programs.”
“Medicaid providers are required to comply with the applicable rules of the program and to certify honestly their compliance,” said Attorney General Jepsen. “I’m grateful to our state and federal partners for their continued cooperation and coordination as we work to protect our taxpayer-funded healthcare programs.”
This matter was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Kevin Saunders, and by Assistant Attorneys General Michael Cole and Gregory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Compensation Remains Available to 9-11 Responders and Survivors Affected by Their Exposure; Fund Tops $3 Billion in AwardsRead the Press Release
Each year, as the anniversary of the Sept. 11, 2001, terrorist attacks approaches, the country is reminded of the unprecedented losses suffered. The September 11th Victim Compensation Fund (VCF) acknowledges the important milestones reached in providing support to victims and families and is especially aware of the lives that continue to be affected. The anniversary is a time for the VCF to reaffirm its commitment to the important work that still lies ahead, and to maintain strong and steady progress as the VCF seeks to award compensation to those who continue to suffer. Today, the VCF releases its statistics report and informs the community on its outreach efforts.
The VCF’s statistics report details the enormous strides the VCF has made since its reopening in 2011 and its reauthorization in 2015. As of Aug. 31, the VCF has rendered over 14,000 compensation determinations, including initial awards on new claims, and revised awards on claims with amendments or appeals. These determinations total over $3 billion awarded to VCF claimants, which exceeds the original $2.775 billion authorized by Congress when the VCF reopened in 2011. In all, the VCF has compensated claims from more than 11,500 responders to the attacks in New York City, at the Pentagon, and at the Shanksville site, as well as more than 2,400 others who lived, worked, or traveled through areas of lower Manhattan and suffered physical health conditions as a result of their exposure to debris and toxins generated by the attacks and their aftermath.
“I am keenly aware that each and every one of these claims represents a life forever-changed,” said VCF Special Master Rupa Bhattacharyya. “I am also aware of the tremendous need for compensation that exists in the 9/11 community. We are committed to making improvements wherever possible in order to process claims as quickly and efficiently as possible, without compromising accuracy, thoroughness, or fairness. I am pleased to report that we continue to make progress in rendering decisions on the oldest claims, and are now issuing awards on claims filed in the later part of 2015. Our efforts to accelerate the speed of claims processing are ongoing and an absolute priority.”
The VCF is also increasing its efforts to identify those who may be eligible for compensation because they suffer physical health effects as a result of their exposure but are not aware of the VCF, and is working with partners in the community to extend its reach. Information regarding the VCF was recently mailed to the enrolled membership of the World Trade Center Health Program. The VCF is participating in several events this week to increase awareness of and answer questions regarding the VCF. These include a Facebook Live Event hosted by 9/11 Health Watch, meetings of the WTC Health Program Responder and Survivor Steering Committees, a town hall hosted by United We Stand of New York and the Voices of 9/11 16th Annual Day of Remembrance Information Forum.
VCF Special Master Bhattacharyya added, “The anniversary is always a time to look back and commemorate the lives lost or forever changed by 9/11. It is also a time to look forward and assure the members of the 9/11 community that they are not forgotten, and that as a nation, we are committed to providing help to those who need it. I’m honored to be in a position to so directly serve this community, and, along with my dedicated and talented team, remain deeply committed to ongoing progress.”
The September 11th Victim Compensation Fund was created to provide compensation for any individual (or a personal representative of a deceased individual) who suffered physical harm or was killed as a result of the terrorist-related aircraft crashes of Sept. 11, 2001 or the debris removal efforts that took place in the immediate aftermath of those crashes. The original VCF operated from 2001 to 2004. On Jan. 2, 2011, President Obama signed into law the James Zadroga 9/11 Health and Compensation Act of 2010 (Zadroga Act). Title II of the Zadroga Act reactivated the Sept. 11th Victim Compensation Fund. The reactivated VCF opened in October 2011 and was authorized to operate for a period of five years, ending in October 2016. On Dec. 18, 2015, President Obama signed into law a bill reauthorizing the James Zadroga 9/11 Health and Compensation Act of 2010. This included the reauthorization of the VCF. The new law extends the VCF for five years, allowing individuals to submit their claims until Dec. 18, 2020. The law also includes some important changes to the VCF’s policies and procedures for evaluating claims and calculating each claimant’s loss.
For additional information about how to file a claim, please visit the “How to File a Claim” page on the VCF’s website at www.vcf.gov and information on policies and procedures can be obtained at https://www.vcf.gov/pdf/VCFPolicy.pdf. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
Colombian National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Colombian national was sentenced today in federal court in Boston for a federal immigration crime.
Dorance Serna-Bedoya, 50, was sentenced today by U.S. District Court Judge George A. O’Toole Jr. to 27 months in prison and three years of supervised release. Serna-Bedoya will be subject to deportation proceedings upon completion of his sentence. In May 2017, Serna-Bedoya pleaded guilty to unlawful reentry of a deported alien.
In 1993, Serna-Bedoya was convicted in Suffolk Superior Court of distribution of cocaine, and was sentenced to 10-11 years in jail. While serving the Suffolk Superior Court sentence, Serna-Bedoya was convicted in U.S. District Court for the Northern District of New York of drug distribution and sentenced to 30 additional months in jail. Upon completion of these sentences, Serna-Bedoya was placed into removal proceedings and on Jan. 6, 2006, he was deported to Colombia. On Oct. 25, 2016, Serna-Bedoya was arrested in Massachusetts using a forged Pennsylvania driver’s license. Officers obtained Serna-Bedoya’s fingerprints and found them to match those contained in Serna-Bedoya’s immigration file.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Citizen of Dominican Republic Pleads Guilty to Illegal Reentry Following a Prior DeportationRead the Press Release
SYRACUSE, NEW YORK – Yesterday, Radhames Perez pled guilty in federal court in Syracuse to illegally re-entering the United States after having been previously deported from the United States following a felony drug conviction, announced Acting United States Attorney Grant C. Jaquith.
Perez, a citizen of the Dominican Republic, admitted that he was deported from the United States in December 2003, following his conviction in New York County Supreme Court for criminal sale of a controlled substance in the second degree, which constitutes an aggravated felony under U.S. immigration law. The defendant was found in the United States again in June 2017 after he was arrested in Frankfort, New York, on an unrelated New York State criminal charge.
The defendant faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. He also faces deportation. He will be sentenced in Syracuse on November 6, 2017, by United States District Judge Brenda K. Sannes. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement, Office of Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Chief Executive Officer of International Metallurgical Company Sentenced to 57 Months for Conspiring to Export Specialty Metals to IranRead the Press Release
Erdal Kuyumcu, 45, of Woodside, N.Y., and the chief executive officer of the Woodside-based Global Metallurgy, LLC, was sentenced to 57 months in prison following his June 14, 2016 guilty plea to conspiracy to violate the International Emergency Economic Powers Act (IEEPA) by exporting specialty metals from the U.S. to Iran.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Division and Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement’s New York Field Office made the announcement.
“With this sentence, the defendant is being held accountable for conspiring with others to send specialized U.S. technology – over a thousand pounds of metallic powder with nuclear and missile applications – to Iran via Turkey,” said Acting Assistant Attorney General Boente. “The National Security Division will aggressively prosecute those who seek to unlawfully provide dangerous material and technology to Iran, a state sponsor of terrorism.”
“This Office, together with our law enforcement partners, will continue to use every tool available, including U.S. export laws, to prevent goods with potentially dangerous uses from falling into the wrong hands and jeopardizing our national security,” said Acting U.S. Attorney Rohde. “Here, the defendant exported a metallic powder that has potential military and nuclear applications to Iran, a state sponsor of terrorism.”
“Laws exist to keep groups and governments from buying materials in support of doing harm. Iran has demonstrated in this case it is willing to use whatever means necessary to hide the end user of the materials, to include utilizing a U.S. citizen to carry out their proliferating activities,” stated Assistant Director in Charge Sweeney. “The FBI New York and its foreign and domestic partners work every day to investigate and interdict adversaries from procuring these items and materials to build nuclear and other weapons of mass destruction, which could end up in dangerous hands.”
“Today's sentencing is the result of outstanding collaborative work by the Justice Department, the Commerce Department and the FBI to break up a network whose aim was to illegally ship sophisticated U.S.-origin technology to Iran,” said Special Agent in Charge Carson. “We will continue to pursue violators wherever they may be.”
According court documents, Kuyumcu, a U.S. citizen, conspired to export from the U.S. to Iran a metallic powder primarily composed of cobalt and nickel, without having obtained the required license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). As established during a two-day presentencing evidentiary hearing, the metallic powder has potential military and nuclear applications. Such specialized metals are regulated by the U.S. Department of Commerce to combat nuclear proliferation and terrorism, and exporting them without the required license is illegal.
In furtherance of the illegal scheme, Kuyumcu and others plotted to obtain more than one thousand pounds of the metallic powder from a U.S.-based supplier. To hide the true destination of the goods from the supplier, Kuyumcu arranged for the metallic powder to be shipped first to Turkey and then to Iran. Kuyumcu used coded language when discussing shipment of the powder with a Turkey-based co-conspirator, such as referring to Iran as the “neighbor.” Shortly after one of the shipments was sent from Turkey to Iran, a steel company in Iran sent a letter-sized package to Kuyumcu’s Turkey-based co-conspirator. The Iranian steel company had the same address as an OFAC-designated Iranian entity under the Weapons of Mass Destruction proliferators sanctions program that was associated with Iran’s nuclear and ballistic missile programs.
Assistant U.S. Attorneys Tiana A. Demas and Ameet B. Kabrawala and Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.
Charleston felon sentenced to federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to federal prison today for a gun charge, announced United States Attorney Carol Casto. Jermain Santell Hill, 38, previously pleaded guilty to being a felon in possession of a firearm. In today’s hearing, he was sentenced to three years and a month in federal prison for that offense. He was also sentenced to an additional eight months in prison for violating his federal supervised release. The sentences will be served consecutively.
In the early morning hours of October 15, 2016, in Charleston, officers with the Charleston Police Department were conducting a traffic stop when they heard a nearby gunshot. As officers ran towards the sound of the gunshot, one of the officers observed Hill leaving the area. The officer pursued Hill to a location behind a residence on Main Street and saw Hill drop an object. After Hill was detained, officers checked that location and recovered a loaded Kel-Tec .380 caliber pistol. Hill was prohibited from possessing any firearm under federal law because of a 2015 conviction in the United States District Court for the Southern District of West Virginia for possession with intent to distribute crack.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Champaign Man Indicted on Child Pornography ChargesRead the Press Release
URBANA, Ill. – A Champaign, Ill., man, Jaime Breckenridge, 33, of the 2200 Block of S. First Street, is scheduled to appear in federal court in Urbana on Sept. 13, 2017, for arraignment on charges of distribution and possession of child pornography.
The grand jury returned the indictment on Sept. 5, that alleges Breckenridge distributed child pornography on Sept. 27, 2016, using a facility of interstate or foreign commerce. The indictment also alleges that on July 28, 2017, Breckenridge possessed computer processing units, hard drive and other digital storage materials, which contain images and videos of child pornography.
Breckenridge was arrested on Aug. 5, 2017, in Marion, Ill., after being charged in a federal criminal complaint with the same offenses. During a court appearance on Aug. 7, 2017, before U.S. Magistrate Reona J. Daly, in Benton, Ill., Breckenridge was ordered detained in the custody of the U.S. Marshals Service.
If convicted, the statutory maximum penalty for distribution of child pornography is 20 years in prison, and a fine of up to $250,000; the penalty for possession of child pornography is up to 10 years in prison, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Federal Bureau of Investigation.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Cambria County Store Owner to Spend 18 Months in Prison for Money Laundering SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Portage, Pa. has been sentenced in federal court in Johnstown to 18 months in prison, and three years’ supervised release, on her conviction of conspiring to commit money laundering, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Tonia Vaughn, 41, of Portage, Pa.
Tonia Vaughn, along with her husband, Gary Vaughn, were the owners and operators of Gary’s Steals and Deals, a business located in Portage, that dealt in new and used merchandise. The way the business operated was for “customers” to come to the store with new stolen items of merchandise (the great majority of which were still in the package from local stores) and present it for purchase by Gary’s. Tonia Vaughn and the store clerks, knowing the merchandise was stolen, would then give a percentage of the value for the new stolen items to the “customer.” The great majority of this business involved the same “customers” bringing in dozens of identical, “new in package” stolen items (i.e., razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets, etc.) on the same day or subsequent days, which were purchased by Gary’s Steals and Deals. The stolen new merchandise was then listed for sale on Ebay or Amazon. Once purchased, the stolen merchandise was then shipped to the purchaser via use of the mail. The money received from the sale of the stolen merchandise over the internet was used to either purchase new stolen items from “customers” coming into the store, or was received by the employees as proceeds of this conduct.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to the prosecution of Vaughn.
California Resident Sentenced for Conspiracy to Commit Healthcare FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that SUNYUP KIM, age 41, of Granada Hills, CA, was sentenced today after previously pleading guilty to conspiracy to commit healthcare fraud.
U.S. District Judge Eldon E. Fallon sentenced KIM to 1 year and 1 day in prison along with $93,927 in restitution.
On June 11, 2015, KIM was indicted along with three other defendants in an 8-count indictment charging approximately $38 million in Medicare fraud.
According to court documents, the $38 million fraud scheme centering on the distribution of "talking glucose meters" that were not medically necessary and were often not even requested. KIM, along with the other 3 defendants, operated Care Concepts, LLC, which was based in Metairie, and Choice Home Medical Equipment and Supplies (Choice), which was based in Chatsworth, California. KIM and the other 3 defendants, paid kickbacks to workers at call centers in California and South Carolina, from which operators would cold-call Medicare recipients to convince them to accept talking glucose meters and related supplies. From 2007 through 2015, KIM and the other 3 defendants caused thousands of claims to be submitted to Medicare through Care Concepts and Choice, virtually all of which were fraudulent.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the United States Department of Health and Human Services in investigating this matter. Assistant U. S. Attorneys Patrice Harris Sullivan and Jordan Ginsberg were in charge of the prosecution.
California Man Admits Role in Heroin Distribution SchemeRead the Press Release
NEWARK, N.J. – A California man who swallowed plastic bags containing approximately 600 grams of heroin admitted today that he possessed the drug with intent to distribute it, Acting U.S. Attorney William E. Fitzpatrick announced.
Omar Vazques, 24, of Bakersfield, California, pleaded guilty before U.S. District Court Judge John Michael Vazquez in Newark federal court to an information charging him with one count of possession of heroin with intent to distribute and distribution of heroin.
According to documents filed in this case and statements made in court:
On Sept. 15, 2016, Vazques landed at Newark Liberty International Airport on a commercial flight after having swallowed approximately 81 “pellets” of heroin wrapped in plastic baggies. Vazques intended to distribute the heroin after his arrival but was apprehended by law enforcement authorities, who escorted Vazques to a hospital. Vazques underwent emergency surgery after hospital staff discovered that one of the baggies had ruptured. A co-defendant, Arturo Gonzales, who arrived on the same flight and had also swallowed heroin with the intent to distribute it, pleaded guilty before Judge Vazquez on June 26, 2017.
The drug distribution charge to which Vazques pleaded guilty carries a maximum prison sentence of 20 years and a maximum fine of $1 million. Sentencing is scheduled for Dec. 11, 2017.
U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, in Newark for the investigation that led to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Organized Crime/Drug Enforcement Task Force Unit.
California Man Admits Laundering Proceeds from Heroin Trafficking OrganizationRead the Press Release
TRENTON, N.J. – An Anaheim, California, man today admitted laundering money on behalf of an international drug trafficking organization, Acting U.S. Attorney William E. Fitzpatrick announced.
Harry Madrid, 26, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Count Two of an indictment charging him with conspiracy to launder money. Madrid was previously arrested in November 2014 in Illinois.
According to documents filed in this case and statements made in court:
From June 2014 through November 2014, Madrid conspired with other members of a international drug trafficking organization, which included cells operating in New Jersey, to launder more than $150,000 in United States currency related to the distribution of heroin.
One of Madrid’s co-defendants, Henry Zamora, pleaded guilty before Judge Sheridan on Aug. 31, 2017 to conspiring to distribute four kilograms of heroin that were recovered from a hidden compartment in his vehicle.
The money laundering charge to which Madrid pleaded guilty carries a maximum potential penalty of 20 years in prison and a $500,000 fine. Sentencing is set for Dec. 14, 2017.
Acting U.S. Attorney Fitzpatrick credited the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes, and officers from the DeKalb, Illinois, police department, under the direction of Chief Gene Lowrey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney and Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
CEO of International Metallurgical Company Sentenced to 57 Months in Prison for Conspiring to Export Specialty Metals to IranRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Erdal Kuyumcu, the chief executive officer of Global Metallurgy, LLC, based in Woodside, New York, was sentenced to 57 months in prison following his June 14, 2016 guilty plea to conspiracy to violate the International Emergency Economic Powers Act by exporting specialty metals from the United States to Iran. The sentencing proceeding was held before Chief United States District Judge Dora L. Irizarry.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Dana J. Boente, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), and Jonathan Carson, Special Agent-in-Charge of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement’s New York Field Office.
“This Office, together with our law enforcement partners, will continue to use every tool available, including U.S. export laws, to prevent goods with potentially dangerous uses from falling into the wrong hands and jeopardizing our national security,” stated Acting United States Attorney Rohde. “Here, the defendant exported a metallic powder that has potential military and nuclear applications to Iran, a state sponsor of terrorism.”
“With this sentence, the defendant is being held accountable for conspiring with others to send specialized U.S. technology – over a thousand pounds of metallic powder with nuclear and missile applications – to Iran via Turkey,” stated Acting Assistant Attorney General Boente. “The National Security Division will aggressively prosecute those who seek to unlawfully provide dangerous material and technology to Iran, a state sponsor of terrorism.”
“Laws exist to keep groups and governments from buying materials in support of doing harm. Iran has demonstrated in this case it is willing to use whatever means necessary to hide the end user of the materials, to include utilizing a U.S. citizen to carry out their proliferating activities,” stated Assistant Director-in-Charge Sweeney. “The FBI New York and its foreign and domestic partners work every day to investigate and interdict adversaries from procuring these items and materials to build nuclear and other weapons of mass destruction, which could end up in dangerous hands.”
“Today's sentencing is the result of outstanding collaborative work by the Justice Department, the Commerce Department and the FBI to break up a network whose aim was to illegally ship sophisticated U.S.-origin technology to Iran,” said Special Agent-in-Charge Carson. “We will continue to pursue violators wherever they may be.”
According to court documents, Kuyumcu, a U.S. citizen, conspired to export from the United States to Iran a metallic powder primarily composed of cobalt and nickel, without having obtained the required license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). As established during a two-day presentencing evidentiary hearing, the metallic powder has potential military and nuclear applications. Such specialized metals are regulated by the U.S. Department of Commerce to combat nuclear proliferation and terrorism, and exporting them without the required license is illegal.
In furtherance of the illegal scheme, Kuyumcu and others plotted to obtain more than 1,000 pounds of the metallic powder from a U.S.-based supplier. To hide the true destination of the goods from the supplier, Kuyumcu arranged for the metallic powder to be shipped first to Turkey and then to Iran. Kuyumcu used coded language when discussing shipment of the powder with a Turkey-based co-conspirator, such as referring to Iran as the “neighbor.” Shortly after one of the shipments was sent from Turkey to Iran, a steel company in Iran sent a letter-sized package to Kuyumcu’s Turkey-based co-conspirator. The Iranian steel company had the same address as an OFAC-designated Iranian entity under the Weapons of Mass Destruction proliferators sanctions program that was associated with Iran’s nuclear and ballistic missile programs.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Tiana A. Demas and Ameet B. Kabrawala, and Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution.
The Defendant:
ERDAL KUYUMCU
Age: 45
Woodside, New York
E.D.N.Y. Docket No. 16-CR-308 (DLI)
Bronx Man Charged with Providing Material Support to Isis by Facilitating Another Individual’s Travel to Join Isis AbroadRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Dana J. Boente, the Acting Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced the filing of a Superseding Indictment charging ADAM RAISHANI, a/k/a “Saddam Mohamed Raishani,” with conspiring to provide, providing and attempting to provide, and aiding and abetting the provision and attempted provision of material support to the Islamic State of Iraq and al-Sham (“ISIS” or the “Islamic State”), a designated foreign terrorist organization, by allegedly facilitating another ISIS supporter’s travel to join ISIS overseas. RAISHANI had already been charged, in an Indictment filed on June 29, 2017, with attempting to provide material support to ISIS, by allegedly attempting to travel abroad to join ISIS himself. RAISHANI was arrested on June 21, 2017, at John F. Kennedy International Airport (“JFK Airport”) in Queens, New York, as he allegedly attempted to travel overseas to join ISIS. The Superseding Indictment adds charges against RAISHANI for allegedly agreeing to facilitate, and facilitating another individual’s travel to join ISIS abroad in the fall of 2015. The case is assigned to U.S. District Judge Gregory H. Woods.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Adam Raishani provided material support to ISIS by helping a co-conspirator travel abroad to fight for that terrorist organization. A year later, Raishani himself attempted to travel overseas to join ISIS. Fortunately through the outstanding work of law enforcement, Raishani’s travel plans were detected and thwarted before he was able to inflict any further harm.”
Acting Assistant Attorney General J. Dana Boente said: “According to the charges, Raishani conspired to provide material support to ISIS and helped another individual travel to join the designated terrorist organization before attempting to do the same. The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who conspire to provide material support to designated foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As we allege, Raishani not only provided support to another individual located in the US who was determined to join ISIS overseas, but arranged for his departure, and expressed disappointment for not being able to travel with that individual at that time. Along with our partners on the Joint Terrorism Task Force, we'll continue to identify those who support terrorist organizations and their agenda in any way, as we've done here today.”
NYPD Commissioner James P. O’Neill said: “Over the past several weeks, there have been a number of defendants charged with helping others travel to Syria or prepare to engage in their own Jihad,” said Police Commissioner James P. O’Neill. “This is the latest—troubling—example. My thanks for the detectives and agents whose investigation on the original Joint Terrorism Task Force here in Manhattan led to today’s arrests.”
As alleged in the Superseding Indictment filed today in Manhattan federal court and the criminal Complaint[1] initially filed against RAISHANI:
Beginning in at least the fall of 2015, RAISHANI conspired with another ISIS supporter (“CC-1”) to provide material support to ISIS by means of CC-1 traveling abroad to join and fight for ISIS. On or about October 30, 2015, CC-1 departed from JFK Airport for Istanbul, Turkey. RAISHANI arranged for the transportation of CC-1 from the Bronx, New York, to JFK Airport, and RAISHANI accompanied CC-1 from the Bronx to JFK Airport.
RAISHANI continued communicating with CC-1 following CC-1’s departure. For example, on or about January 2, 2016, RAISHANI sent an email to CC-1 stating: “Glad tidings brother. Its [sic] been some time since your voyage. I pray to Allah The ALL MIGHTY to grant you success. Until next time.”[2] On or about April 1, 2016, RAISHANI sent another email to CC-1 stating: “I hope Allah has bestowed you what you were seeking. . . . May Allah grant you sincere and clean intentions and make you among the righteous in Janatal Firdaus [a reference to Islamic paradise]. . . . Please return this email and respond to what we agreed upon before your departure. Until next time.” On or about May 3, 2016, CC-1 responded to RAISHANI, informing RAISHANI that CC-1 was “fine and well,” that CC-1 “wished you [RAISHANI] were here with me,” and that “here we are living with izza [honor].”
Also in May 2016, CC-1 posted content on a particular social media application (“Application-1”) indicating that CC-1 was living in the Islamic State and fighting on its behalf. For example, CC-1 sent messages to another user of Application-1 stating: “I’m living in the Islamic state safely and secure by the permission of Allah,” “[h]ere we are fighting the kuffars [non-believers],” and “I left the land of kuffars now I’m living in the khilafah [the caliphate].” CC-1 also posted a photograph on Application-1 that shows CC-1 carrying an assault rifle and a flag representative of ISIS.
Between January and June of 2017, RAISHANI engaged in a series of meetings with an individual who was, unbeknownst to RAISHANI, a confidential source working at the direction of law enforcement (the “CS”). In the course of those meetings, RAISHANI admitted to the CS that, some time ago, he had helped another person to travel overseas to join the Islamic State. RAISHANI told the CS, among other things, that he took that person to JFK Airport and gave him money on the day of his departure for the Islamic State. RAISHANI expressed regret to the CS at not having traveled himself to join ISIS at that time, and RAISHANI revealed that, as of April 2017, he was actively planning to travel abroad to join and serve ISIS. RAISHANI indicated that he aspired to join ISIS in Syria and that he aimed to travel before the end of Ramadan, an Islamic holy month that ran from approximately May 26 through June 24 of this year. In June 2017, RAISHANI made preparations to leave, including by paying off debts and purchasing clothing that he intended to wear for training with ISIS overseas. On June 21, 2017, RAISHANI attempted to board a flight bound for Turkey (via Portugal) at JFK Airport, where he was arrested by the FBI and the NYPD.
* * *
RAISHANI, 30, of the Bronx, New York, is charged in the Superseding Indictment with three counts of violating Title 18, United States Code, Section 2339B, by allegedly conspiring to provide, providing and attempting to provide, and aiding and abetting the provision and attempted provision of material support to a designated foreign terrorist organization. Each count carries a maximum sentence 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 efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Kim also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U.S. Customs and Border Protection.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys George D. Turner, Sidhardha Kamaraju, and Jane Kim are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the Counterterrorism Section.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and Complaint, and the descriptions of the Superseding Indictment and Complaint set forth below, are only allegations, and every fact described should be treated as an allegation.
[2] Communications and conversations discussed herein are described in substance and in part.
Bristol Man Charged with Distributing Heroin and Crack to Canton Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging ROBERT DEWAYNE WATKINS, also known as “D,” 42, of Bristol, with one count of possession with intent to distribute, and distribution of, heroin and cocaine base (“crack”).
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As alleged in court documents, on March 18, 2017, Canton Police responded to a suspected overdose incident at a Collinsville restaurant and encountered a 29-year-old male in a bathroom of the restaurant. After unsuccessful resuscitation efforts, the victim was pronounced deceased. The investigation, which has included witness interviews and analysis of the victim’s cellphone, revealed that the victim purchased heroin and crack cocaine from WATKINS shortly before his death.
The Office of the Chief Medical Examiner has determined that the victim died from acute intoxication due to the combined effects of fentanyl, heroin, cocaine, amphetamine and alprazolam.
WATKINS has been detained since his arrest on a criminal complaint on July 25, 2017.
If convicted of the charge, WATKINS faces a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Canton Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Bluffton Woman Enters Guilty Plea in Federal CourtRead the Press Release
Charleston, South Carolina ---- United States Attorney Beth Drake stated today that Lecelle Montgomery, age 32, of Bluffton, S.C., pled guilty in federal court in Charleston, to Bank Fraud, a violation of Title 18, United States Code, Section 1344. United States District Judge Richard Gergel, of Charleston, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office. Montgomery faces up to thirty years in federal prison.
Evidence presented at the change of plea hearing established that beginning in or about 2008 and continuing up to at least in or around late 2012, Montgomery, a former financial adviser, began receiving funds from individuals living in the Bluffton area of South Carolina, ostensibly to invest on their behalf. Instead of investing the money, however, Montgomery admitted to spending it to either gamble or use it for personal expenses.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Matt Austin of the Charleston office handled the case.
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Bates Family Sentenced to 627 Months Imprisonment for Gold and Silver Ponzi SchemeRead the Press Release
Memphis, TN – Bates family members have been sentenced for their roles in a Ponzi scheme that defrauded victims of more than twenty-one million dollars. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.
In May 2017, a federal jury found Larry Bates; his two sons, Chuck and Robert Bates; and Kinsey Bates, the wife of Robert Bates, guilty on all counts set forth in a federal indictment that charged mail and wire fraud and conspiracy. The charges rose out of the defendants running a decade long Ponzi scheme in the buying and selling of gold and silver coins. The proof at trial showed that the defendants were able to accomplish the fraud through First American Monetary Consultants, a Colorado corporation, which had offices in Memphis, Tennessee and Ft. Collins, Colorado. The proof showed that more than three hundred and sixty victims lost more than twenty-one million dollars. The scheme continued from as early as 2002 through October of 2013.
"Today, justice has finally been served to members of the Bates Family as a result of their decade long Ponzi scheme. Their corruption ploy -- which devastated and destroyed the lives of many hard-working individuals -- ended today. I hope this will serve as a clear --cut message that the United States Attorney’s Office and its law enforcement partners will work tirelessly to expose and bring to justice people responsible for such acts of greed and corruption." said Larry Laurenzi, Acting United States Attorney, Western District of Tennessee.
At trial, the proof showed that the defendants promoted their business through a variety of Christian television and radio programs, including the Jim Baker Show and Jewish Voice. Larry Bates, a self-proclaimed doctor in economics, held conferences across the United States on the upcoming economic collapse and the need to invest in precious metals. Between 2007 and 2013, customers gave more than eighty-seven million dollars
to First American Monetary Consultants for the purpose of buying precious metals. During this same period, the proof showed the defendants diverted customers’ monies that were to be used to purchase their precious metals to the defendants own use and benefit. By 2009, testimony at trial showed that the company had more than twenty-six million dollars in unfilled customer orders.
The proof showed that the defendants used the customers’ money for a variety of purposes other than purchase of customers’ metals. Larry Bates diverted more than four million dollars to the creation of International Radio Network, a Christian radio network. Other monies were diverted to trading in commodities and the building of a ten-thousand square foot house on three hundred acres in Middleton, Tennessee. Still other customers’ monies were used to fulfill prior orders, which had not been fulfilled.
At trial, the evidence showed that Larry, Chuck and Robert Bates were sales people in the Memphis office and were responsible for taking in victim’s monies. More than forty-five witnesses testified about losing money to Larry Bates and First American Monetary Consultants. The victims, who lived all across the United States, testified that their money was to be used to purchase precious metals that they never received. For example, Judith Ponder, from Kerrville, Texas testified that she and her mother gave Larry Bates more than $1.8 million dollars to purchase precious metals and received little in return. Barbara Santiago, from Washington State, testified that she and her paraplegic son met Larry Bates at one of his conferences in Washington State. Ms. Santiago testified that she later invested more than two hundred and sixty-six thousand dollars from her son’s insurance settlement that was to be used for her son’s care. Ms. Santiago, likewise, received little of her purchase. And, Charles Grimsley, a pastor for the Veteran’s Administration in Mesa, Colorado, testified that he and his wife gave FAMC more than two hundred thousand dollars of their retirement money and received nothing in return.
The proof showed that many of the victims attempted to take possession of their gold and silver coins, only to be put off by the defendants for a variety of reasons. The excuses for the delays included that the gold and silver coins were scarce, the coins were coming from Europe, and the U.S. mint was shut down. In October 2013, a receiver was appointed to take over the affairs of First American Monetary Consultants. The receiver found that the company had few assets and was unable to compensate the hundreds of victims who had given money to Larry Bates and First American Consultants.
On Tuesday, September 5, 2017, U.S. District Judge Sheryl Lipman sentenced both father, and son, Charles Larry Bates and Charles "Chuck" Bates. Charles Larry Bates was sentenced to 262 months’ imprisonment and 3 years’ supervised release to begin after incarceration. He was ordered to pay $21,210,345.39 in restitution and a mandatory special assessment of $4,600. Larry Bates was convicted on all 46 counts in the indictment.
Chuck Bates was sentenced to 151 months’ imprisonment and 3 years supervised release. He was ordered to pay $19,649,731.70 to victims, along with a special assessment of $1,700. Chuck Bates was found guilty of 16 counts of mail and wire fraud, and one count of conspiracy.
On Wednesday, September 6, 2017, U.S. District Judge Sheryl Lipman sentenced Robert Bates and his wife, Kinsey Brown Bates. Robert Bates was convicted on one count of conspiracy and eight counts of mail and wire fraud. Robert Bates received a sentence of 151 months which he will serve consecutively to another criminal sentence, as well as three years supervised release. He was ordered to pay $19,659,911 in restitution, along with a mandatory special assessment of $900. Kinsey Brown Bates was sentenced to 63 months’ imprisonment, $9,526,199.95 in restitution, 3 years supervised release and $300 mandatory special assessment.
Acting United States Attorney Lawrence J. Laurenzi and Assistant United States Attorney David Pritchard prosecuted the case. The United States Postal Service and the Federal Bureau of Investigation investigated the case.
Attorney General's Pilot Program brings new resources to fight opioid epidemicRead the Press Release
CHARLESTON, W.Va. – United States Attorney Carol Casto announced today that a new attorney position has opened in the United States Attorney’s Office for the Southern District of West Virginia. The opening is for a 3-year term as an Assistant United States Attorney (AUSA) assigned to the Violent Crime and Narcotics Section of the Criminal Division. This term position was created as part of the Attorney General’s pilot program to focus on opioid-related health care fraud and prosecute individuals that are contributing to the opioid epidemic.
The United States Attorney’s Office is a part of the Department of Justice, which enforces federal criminal and civil laws that protect life, liberty and the property of citizens. The United States Attorney’s Office currently has 62 employees, with the main office in Charleston and two staffed branch offices in Huntington and Beckley.
An appointment as an AUSA offers unique and challenging opportunities for highly-motivated attorneys to work on their own caseload and handle their own trials and appeals. Working in the Violent Crime and Narcotics Section of the Criminal Division, the AUSA will be part of a dedicated team helping to investigate and prosecute federal criminal cases and to prepare and argue appeals. Responsibilities will increase and assignments will become more complex as your training and experience progress. Occasional travel is required. Applicants must possess a J.D. degree and be an active member of the bar (any U.S. jurisdiction). In addition, applicants must possess superior oral and written communication skills as well as strong interpersonal skills, exhibit good judgment, and be able to function with minimal guidance in a highly demanding environment. The local rules of the district court require obtaining membership in the bar of West Virginia within one year of entry on duty. Veterans are encouraged to apply. Although there is no formal rating system for applying veterans’ preference to AUSA appointments, the Department of Justice considers veterans’ preference eligibility as a positive factor in attorney hiring. More information regarding the veterans’ preference may be found in the jobs announcement at https://my.usajobs.gov and on our website, https://www.justice.gov/usao-sdwv.
This is a temporary position not to exceed 3 years. The position will be based in the Charleston office, with a salary range from $60,210 - $141,275. Applications should be submitted online at https://my.usajobs.gov for job announcement number 17-WVS-10044349-AUSA (https://www.usajobs.gov/GetJob/PrintPreview/478848100). Applicants will have to create an account or log into an existing USAJOBS account. The deadline for submitting an application is 11:59 p.m. (EST), on September 15, 2017. Please contact Administrative Officer Robin Justice at (304) 345-2200 or [email protected] if you have any questions. For more information on the Department of Justice and the United States Attorney’s Offices, visit http://www.justice.gov/careers.
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Assistant United States Attorney Ryan W. Bounds Nominated to Fill Ninth Circuit VacancyRead the Press Release
WASHINGTON – On Thursday, September 7, 2017, President Donald J. Trump announced that he has nominated Ryan W. Bounds to serve as a Circuit Judge on the United States Court of Appeals for the Ninth Circuit. If confirmed, Bounds will fill a vacancy created when Circuit Judge Diarmuid O’Scannlain assumed senior status.
Bounds serves as an Assistant United States Attorney for the District of Oregon, where he prosecutes criminal cases involving fraud and environmental crimes on behalf of the United States. Before joining the United States Attorney’s Office in Oregon, Bounds served as a Portland civil litigator; as special assistant to President George W. Bush for justice and immigration policy; as chief of staff and deputy assistant attorney general for the Justice Department’s Office of Legal Policy and as a federal prosecutor in Washington.
"Ryan is eminently qualified to serve as a judge on the Ninth Circuit," said Billy J. Williams, United States Attorney for the District of Oregon. "He is a dedicated public servant and well regarded in the Oregon legal community."
Born and raised in Eastern Oregon, Bounds graduated as the valedictorian of Hermiston High School in 1991. He has a bachelor’s degree from Stanford University and is a graduate of the Yale Law School. Bounds began his legal career in Pioneer Courthouse in Portland, Oregon where he served as a law clerk to Judge O’Scannlain.
Armed Career Criminal from Albuquerque Sentenced to Fifteen Years for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Jesus Rodriguez, 34, of Albuquerque, N.M., was sentenced today in federal court to 180 months in prison followed by five years of supervised release for unlawfully possessing a firearm and ammunition. Rodriguez was sentenced under the Armed Career Criminal Act, which requires the imposition of an enhanced sentence of not less than 15 years of imprisonment for offenders with three prior convictions for violent felonies, serious drug offenses, or a combination of both.
Acting U.S. Attorney James D. Tierney, Special Agent in Charge John J. Durastanti, Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshal Conrad E. Candelaria, and Bernalillo Sheriff Manuel Gonzales, III, announced the sentence. In making the announcement, these officials said that Rodriguez was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
ATF arrested Rodriguez on April 19, 2016, based on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. According to the complaint, Rodriguez was in possession of a loaded firearm on Jan. 29, 2016, when the Bernalillo County Sheriff’s Office and U.S. Marshals Service’s South West Investigative Fugitive Team (SWIFT) arrested him on an outstanding state arrest warrant.
Rodriguez was indicted on May 10, 2016, and was charged with unlawfully possessing a firearm and ammunition on Jan. 29, 2016, in Bernalillo County, N.M. At the time, Rodriguez was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including aggravated assault against a household member, aggravated battery against a household member, child abuse, auto burglary, conspiracy to commit auto burglary, and battery on a peace officer.
Rodriguez entered a guilty plea to the indictment on March 22, 2017, without the benefit of a plea agreement.
This case was investigated by the ATF’s Albuquerque office, the U.S. Marshals Service’s SWIFT Team, and the Bernalillo County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Presiliano Torrez.
Ansonia Man Involved in Steroids and Prescription Pill Distribution Conspiracy is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY GENTILE, 35, of Ansonia, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation for his role in a steroids and prescription pill distribution conspiracy. Judge Chatigny also ordered GENTILE to perform 150 hours of community service.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that Steven Santucci, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. Certain members of the conspiracy also distributed prescription pills, including oxycodone, as well as cocaine.
The investigation revealed that Alex Kenyhercz, of Ansonia, purchased anabolic steroids from Santucci and distributed them to others. GENTILE obtained steroids from Kenyhercz by paying him, in part, with Adderall, which is an amphetamine.
At the time of this offense, Gentile was a Connecticut Juvenile Detention Officer.
GENTILE was arrested on April 29, 2015. On October 5, 2016, he pleaded guilty to one count of using a telephone to facilitate the distribution of amphetamine, a Schedule II controlled substance.
Santucci and Kenyhercz pleaded guilty to related charges. On August 25, 2016, Santucci was sentenced to 16 months of imprisonment, six months of home confinement, 120 hours of community service and a $5,000 fine. Kenyhercz awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Albuquerque Woman Sentenced to Four Years in Federal Prison for Synthetic Cannabinoid Trafficking ConvictionRead the Press Release
ALBUQUERQUE –Ashley Watson, 31, of Albuquerque, N.M., was sentenced today in federal court to 48 months of imprisonment for her conviction on synthetic cannabinoids trafficking charges. Watson will be on supervised release for five years after completing her prison sentence.
Watson and co-defendant Fidal Abdeljawad, 50, also of Albuquerque, were charged with trafficking in synthetic cannabinoids, more commonly known as “spice,” in an indictment that was filed in Sept. 2015, and superseded in Dec. 2015. The four-count superseding indictment charged Abdeljawad and Watson with participating in a synthetic cannabinoids trafficking conspiracy from March 2014 through Feb. 2015. It also charged the defendants with possessing synthetic cannabinoids with intent to distribute on May 8, 2014, and Feb. 19, 2015, and Abdeljawad alone with possessing synthetic cannabinoids with intent to distribute on May 7, 2014. Abdeljawad and Watson committed the crimes in Bernalillo County, N.M.
The controlled substance analogues charged in the indictment are commonly referred to as synthetic cannabinoids or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
Abdeljawad and Watson proceeded to trial on May 1, 2017, and the jury returned a guilty verdict against Abdeljawad and Watson on all four counts of the superseding indictment on May 5, 2017.
Testimony at trial established that the DEA initiated an investigation into synthetic cannabinoids trafficking in Albuquerque in 2014, after receiving information that Abdeljawad, the owner of “Sean’s Smoke Shop” on Central Avenue SE in Albuquerque, and others were distributing synthetic cannabinoids. Law enforcement officers testified that on May 7, 2014, they executed searches of “Sean’s Smoke Shop” and Abdeljawad’s van, and seized 97 packets of synthetic cannabinoids and bundles of cash totaling more than $10,000. Abdeljawad was arrested that day on state charges and later was released on bond. The next day, the DEA learned that Abdeljawad had a storage unit near “Sean’s Smoke Shop,” which was leased in Watson’s name. During a search of the storage unit, the DEA seized 549 additional packets of synthetic cannabinoids.
Other evidence at trial, including telephone conversations and text messages captured through court-authorized wire-taps, established that despite his arrest on state charges, Abdeljawad continued to distribute synthetic cannabinoids in collaboration with Watson. Abdeljawad would order shipments of synthetic cannabinoids from suppliers, who delivered the synthetic cannabinoids to Watson and she distributed the synthetic cannabinoids to others in exchange for money. On Feb. 19, 2015, the DEA intercepted a package that had been shipped to Watson. The DEA opened the package pursuant to a search warrant, and found that it contained 100 packets of synthetic cannabinoids. Abdeljawad and Watson were arrested in Sept. 2015, after they were indicted.
Abdeljawad has been in federal custody since the jury returned its guilty verdict and remains detained pending his sentencing hearing, which is scheduled for Nov. 8, 2017. At sentencing, Abdeljawad faces a statutory maximum penalty of 20 years of imprisonment.
This case, which was investigated by the Albuquerque office of DEA, was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. Assistant U.S. Attorneys Timothy S. Vasquez and Kristopher N. Houghton prosecuted the case.
Albany Sex Offender Sentenced for Failing to Update RegistrationRead the Press Release
ALBANY, NEW YORK – Terry L. Shellenberger, age 48, of Albany, was sentenced today to 10 months in jail, to be followed by 5 years of supervised release, for failing to update his sex offender registration.
The announcement was made by Acting United States Attorney Grant C. Jaquith and United States Marshal David L. McNulty.
Shellenberger is a sex offender. In 2006, he was convicted, in federal court, of child pornography possession. Since his release from prison in 2012, he has been required by federal and state law to notify the New York State Sex Offender Registry about any change in his residential address. As part of his May 23, 2017 guilty plea, Shellenberger admitted that he failed to disclose to the registry that for several months in 2017, he had been residing at a motel in the city of Albany.
This case was investigated by the U.S. Marshals Service and U.S. Probation Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
6 September 2017
Winchester Woman Agrees to Plead Guilty to Stealing More than a Million DollarsRead the Press Release
BOSTON – A Winchester woman was charged today with bank fraud after allegedly using forged checks and account numbers to steal nearly a million dollars.
Sager Kopchak, a/k/a Sager Dallai, 34, was charged and has agreed to plead guilty to four counts of bank fraud.
According to court documents, in late 2009, Kopchak contacted an individual she knew, asking to stay with the individual for a few weeks while receiving cancer treatment. Kopchak stayed with the individual from late 2009 until the summer of 2010, and paid no rent or utilities. In reality, Kopchak did not have cancer and was not undergoing cancer treatment. While living with the individual, Kopchak stole a checkbook and, over the next eight years, stole nearly $1 million by forging checks and using the routing numbers from the stolen checks to make charges against the individual’s account. Kopchak allegedly used the stolen money to make high end purchases such as a pair of 2.05 karat diamond earrings ($9,700), five fur coats (totaling $21,297), Chanel purses (totaling $9,649), a Cartier watch ($3,250) and a trip to the Bahamas ($11,166), among other things.
The charging statute provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $250,000 per count, or twice the gross gain or loss, whichever is greater. 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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated with the assistance of the Boston Police Department. Assistant U.S. Attorney Sara Miron Bloom of Weinreb’s Economic Crimes Unit is prosecuting the case.
Waterbury Man Pleads Guilty to Oxycodone Distribution ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HARRY DUREN, 74, of Waterbury, pleaded guilty today in New Haven federal court to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone.
According to court documents and statements made in court, between approximately March 2011 and April 2016, DUREN obtained prescriptions for medications containing oxycodone from doctors in Connecticut and then arranged to resell the medications for his own profit. In total, DUREN and his co-conspirators sold approximately 45,000 30mg oxycodone pills. DUREN’s profit from the drug sales was approximately $700,000.
DUREN is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on November 29, 2017, at which time he faces a maximum term of imprisonment of 20 years.
DUREN is released on a $50,000 bond pending sentencing.
This investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
U.S. Attorney’s Office contributes to local food pantries through Feds Feed Families driveRead the Press Release
SHREVEPORT/LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that the U.S. Attorney’s Offices in Shreveport and Lafayette collected more than 294 pounds of food and non-perishable items this week that were delivered to two local food pantries.
In all, federal employees contributed 294 pounds of food to the Food Bank of Northwest Louisiana in Shreveport and FoodNet: The Greater Acadiana Food Bank in Lafayette. The Shreveport U.S. Attorney’s Office gathered 180 pounds of the total, and the Lafayette U.S. Attorney’s Office gathered 114 pounds. Donation boxes for the Feds Feed Families food drive campaign were located at the federal courthouses in Shreveport and Lafayette. The food drive campaign ended September 1, 2017.
“The Feds Feed Families food drive campaign provides federal employees an opportunity to help their communities,” Van Hook stated. “Food pantries are always in need of assistance, and during the summer, sometimes donations and contributions can run low. I want to thank the federal employees in our office as well as the U.S. Courts and other agencies who gave food, time and other resources.”
The Food Bank of Northwest Louisiana began in 1995 when a group of individuals from churches with food pantries and benevolent organizations met to discuss the need to establish a local food bank to serve the parishes of Northwest Louisiana. The Food Bank of Northwest Louisiana is the largest distributor of donated food for the seven-parish area and is one of only five food banks in the state. They sort, warehouse and distribute food to more than 120 non-profit organizations in the seven-parish region, which includes: Caddo, Bossier, Bienville, Claiborne, Desoto, Red River and Webster parishes. For more information about the Food Bank of Northwest Louisiana, visit their website at www.foodbanknla.org or call (318) 675-2400.
FoodNet: The Greater Acadiana Food Bank, a non-profit food bank serving Lafayette Parish, was established in October 1987. FoodNet has distributed tens of thousands of tons of food since opening, and presently serves several agencies including: Faith House of Acadiana women’s shelter, the Children’s Shelter, St. Joseph Shelter for Men, Acadiana Youth Shelter for Girls, St. Joseph Diner, the Red Cross, Alleman Center, Acadiana Cares, St. Francis Foundation for Substance Abuse and the Arc. For more information, visit www.foodnetacadiana.org or call (337) 232-3663.
In the United States, 50 million people are challenged with hunger, including 17 million children. Feds Feed Families was started when Rep. Frank Wolf (R-Va.) and former Office of Personnel Management Director John Berry realized that food donations were dropping during the summer months because many families were on vacation. The campaign has run every summer since 2009, and to date, it has collected nearly 70 million pounds of food, including more than 12.5 million pounds last year alone.
For more information visit www.usda.gov/fedsfeedfamilies or call the U.S. Attorney’s Office, Western District of Louisiana, at 337-262-6618.
U.S. Attorney’s Office Plans Interactive Family EventRead the Press Release
WHEELING, WEST VIRGINIA – Families from across the Ohio Valley will have the chance to see their favorite emergency response, military and construction vehicles up close this weekend, thanks to the United States Attorney’s Office, Cabela’s, first responders, and other businesses in our community.
Acting United States Attorney Betsy Steinfeld Jividen is proud to announce the second annual “Meet and Greet the Safety Fleet” offering children and their families and chance to “touch a truck.” Participants can sit in their favorite vehicles, take pictures, and meet those who keep our communities safe.
“We are thrilled to once again offer this event, supporting positive interactions with the children in our area and first responders, as well as honoring those who serve our communities and country every day,” said Jividen.
The event is open and free to the public. It will be held Saturday, September 9, from 10 a.m. to 2 p.m. at Cabela’s in Triadelphia. There will be character appearances, Travis Braden’s racecar, and a special appearance of AirEvac’s medical helicopter.
Twin Falls Man Pleads Guilty to Attempted Coercion and Enticement of a MinorRead the Press Release
BOISE – Jerry Bob Stewart, 50, of Twin Falls, pleaded guilty today in United States District Court to attempted coercion and enticement of a minor, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreement, between July and August of 2015, Stewart communicated online with a ten-year old child located in California. The child told Stewart she was 19 years old, but Stewart proposed they engage in a father-daughter “fantasy” where the child was 14 years old. The communications were sexual in nature, and were discovered by the child’s grandmother. A detective with the Nevada County, California Sheriff’s Office took over the child’s accounts, and began communicating directly with Stewart, posing as the child. Between September and December of 2015, the detective repeatedly told Stewart that she was only 13 years old. Stewart continued to express his desire to have sexual contact with the child, and sent sexually explicit images to the child’s accounts. Stewart acknowledged the child’s age, stating “we can’t get in trouble,” and “let’s just say you are 18 or over . . . if anyone ask[s].”
In November of 2015, Stewart agreed to pay for a bus ticket for the child to travel to Idaho so that he could have sexual contact with the child, and sent an envelope containing $300.00 in U.S. currency to the child via U.S. Mail. On December 10, 2015, Stewart rented a room at a Twin Falls hotel under the child’s name, and traveled to a bus stop in Twin Falls to meet the child. Agents with Homeland Security Investigations contacted Stewart and discovered a box of condoms, two male sexual performance enhancement pills, and a bottle of lubricant in his vehicle.
Sentencing is set for November 28, 2017, before Chief U.S. District Judge B. Lynn Winmill. Attempted coercion and enticement of a minor is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,100 special assessment. As part of his plea, Stewart also agreed to forfeit a cell phone, tablet, and portable wireless internet device used in the commission of the charged offense.
The case was investigated by Homeland Security Investigations and the Nevada County, California Sheriff’s Office, with assistance from the Idaho Internet Crimes Against Children (ICAC) Task Force, the Twin Falls Police Department, and the Twin Falls County Sheriff’s Office, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Twenty-two Indicted in $20 Million Theft Ring at High-End Shopping MallsRead the Press Release
Assistant U. S. Attorney Stephen Wong (619) 546-9464
NEWS RELEASE SUMMARY – September 6, 2017
SAN DIEGO – A well-organized and often violent group of thieves has stolen more than $20 million worth of merchandise from high-end shopping malls here and around the country, according to an indictment unsealed today which charges 22 people.
A contingent of more than 250 officials from local, state and federal law enforcement agencies made 12 arrests today and searched three homes in Lemon Grove, Chula Vista and San Diego. Three defendants were already in custody; seven were fugitives as of 1 p.m. today. The defendants in custody are scheduled to make their first court appearances at 10 a.m. tomorrow before U.S. Magistrate Judge Barbara Lynn Major.
During searches today, agents confiscated approximately $30,000 in cash plus about a dozen large trash bags full of new clothing - with merchandise tags and security devices still attached - from retailers such as Victoria’s Secret, Hollister Co., Guess, Express and Abercrombie & Fitch, and brands such as Calvin Klein, Hurley, Armani, Adidas, Kenneth Cole and Puma. Agents also found piles of new Louis Vuitton shoes and boxes full of security sensors that had been removed from clothing.
The indictment describes how defendants from the San Diego area formed crews of thieves to steal merchandise from retail stores throughout the United States and transport the merchandise across state lines for sale in Mexico. The well-organized teams operated consistently for over a decade. The indictment describes how team leaders assigned each member a specific role, such as team leader, mule or blocker. Team leaders selected stores to target, scouted the stores, and choreographed the actions of other team members using cell phones and hand signals while Mules secreted the stolen merchandise out of stores in “booster bags,” which are shopping bags with metallic linings designed to defeat anti-theft sensors. Blockers prevented store employees from seeing the ongoing theft by obstructing their view with clothing, by distracting the employees, or by physically preventing the employees from responding.
When necessary, the teams used force against store employees, other customers, and law enforcement to escape. For example, the indictment alleges that in November 2009, defendant Sergio Manuel Montano Nava knocked over an infant in its stroller and injured the infant’s father to avoid being arrested for a theft at a Hollister store in Schaumburg, Illinois.
In November 2012, defendants Jose Damazo Herrera, Robin Macias and others drove vehicles through a crowd while fleeing a theft from a Hollister store in the Fashion Valley Mall in San Diego. The thefts alleged in the indictment typically resulted in losses of several thousand dollars in merchandise.
In March 2013, a defendant grabbed a loss prevention officer by the throat and threw her to the ground while running from a theft at Abercrombie & Fitch at the Plaza Bonita Mall in National City.
The indictment lists 38 thefts which occurred at locations around the country at various clothing stores, including Victoria’s Secret, Hollister Co., Abercrombie & Fitch, Banana Republic and Express in the California cities of Escondido, San Diego, National City, San Clemente, Ventura, Oxnard, Camarillo, City of Industry, Orange, Mission Viejo, Northridge, Canoga Park; and outside the state in Las Vegas, Nevada; Frederick, Maryland; Vancouver, Washington; and Schaumburg, Illinois.
The indictment said that on October 23, 2013, defendant Maria Angelica Mendez Valdivia had $482,275 worth of merchandise - stolen from at least 57 retailers - which was being transported to Mexico. The thieves sold the stolen merchandise to an alleged “fence,” defendant Sara Portilla, who is accused of selling the stolen merchandise from a store she operates in Tijuana.“The mall is supposed to be a safe place for families to shop, eat and enjoy themselves,” said Acting U.S. Attorney Alana Robinson. “Instead, a prolific and violent group of thieves has stolen millions of dollars in merchandise as well as peace of mind from mall employees and customers. With today’s action, we are protecting customers and businesses both physically and economically, and we are restoring and preserving the safety of our community gathering spots.”
“Homeland Security Investigations, together with its law enforcement partners, has worked tirelessly to investigate and ultimately dismantle this theft ring,” said David Shaw, special agent in charge of HSI San Diego. “Not only does organized retail crime have a major financial impact on businesses and consumers, but the brazen acts allegedly committed by these defendants also posed a very real threat to public safety. HSI is committed to holding individuals involved in this criminal activity accountable for their actions.”
“Crimes that cross jurisdictional lines can be challenging for any one agency to investigate,” said San Diego Police Chief Shelley Zimmerman. “It takes a partnership and commitment from agencies at all levels to collapse the most sophisticated crime rings that exist today. The collaboration we have here in San Diego between law enforcement agencies is second to none. I am so proud of the efforts in this complex case to bring these thieves to justice.”
DEFENDANTS Case Number 17cr2511-GPC
Sara Portilla Age: 39 San Diego, CA
Maria Angelica Mendez Age: 43 San Diego, CA
Jose Mora Age: 49 Oceanside, CA
Julio Gabriel Lopez Moreno Age: 41 Chula Vista, CA
Alejandro Madrinan Age: 43 San Diego, CA
Araceli Razo Age: 42 Imperial Beach, CA
*Eduardo Madrinan Age: 22 Lemon Grove, CA
*Carlos Gomez Daza Age: 32 San Diego, CA
Karina Yvette Saman Rojas Age: 29 San Diego, CA
Juan Manuel Juarez Herrera Age: 41 San Diego, CA
James Sanabria Age: 31 San Diego, CA
*Josue Antonio Damazo Herrera Age: 26 San Diego, CA
Jose Damazo Herrera Age: 28 San Diego, CA
Brandon Ramirez Salas Age: 22 Mexico
*Jesus Raymundo Razo Del Angel Age: 23 San Diego, CA
Jacob Palacios Age: 24 San Diego, CA
Robin Macias Age: 33 Chula Vista, CA
*Giovani Razo Alvarez Age: 33 San Diego, CA
*Adrian Razo Age: 29 Atlanta, Georgia
Sergio Manuel Montana Nava Age: 31 San Diego, CA
*Vanessa Medina Munguia Age: Unknown San Diego, CA
Adrian Ulices Reyna Rodriguez Age: 21 San Diego, CA
*Fugitive
SUMMARY OF CHARGES
Conspiracy to Transport stolen goods across state and international borders, – Title 18, U.S.C., Sections 371 and 2314
Maximum penalty: Five years in prison and $250,000 fine
Receiving stolen goods that have crossed state and international borders – Title 18, U.S.C., Section 2315
Maximum penalty: Ten years in prison and a $250,000 fine
Illegal re-entry of a removed alien – Title 8, U.S.C., Section 1326
Maximum penalty: Twenty years in prison and $250,000 fine
Maximum penalty: Twenty years in prison and $500,000 fine
AGENCIES
Homeland Security Investigations
Orange County Sheriff’s Department
San Diego Police Department
Carlsbad Police Department
Escondido Police Department
National City Police Department
U.S. Border Patrol
ICE/Enforcement and Removal Operations
U.S. Customs and Border Protection
U.S. Marshals Service
San Diego Harbor Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Three Sentenced for Burglary of Gun StoreRead the Press Release
CHARLOTTE, N.C. – Three men who burglarized a gun store in Cornelius, N.C. were sentenced to prison today, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
Maceo Royster, 20, Emmanuel Hargrove Guy, 19, and Lacedric McMillon, 23, all of Charlotte, were sentenced to 60 months, 57 months, and 40 months in prison, respectively. The defendants were also ordered by U.S. District Judge Robert J. Conrad, Jr. to serve three years under court supervision upon completion of their prison terms.
According to filed court documents and court proceedings, McMillon, Guy, Royster and a fourth individual conspired to burglarize The Range at Lake Norman, located in Cornelius. Court records reflect targeted this particular gun store because a picture on the store’s website showed it did not have bars on its windows. According to court records, on October 23, 2016, the four men drove to the gun store after it had closed for the day. McMillon waited in the car while Guy, Royster and their co-conspirator broke into the store, grabbed rifles and pistols and fled the scene.
According to court records, shortly after the robbery, law enforcement attempted to stop the getaway vehicle but McMillon sped away. After evading law enforcement, the vehicle stopped at a cul-de-sac in a neighborhood and the men fled on foot. McMillon, Guy, and Royster were later arrested. Law enforcement officers also recovered two bags which contained 22 firearms stolen from the gun store.
Royster, Guy, and McMillon pleaded guilty to one count of theft from the premises of a person licensed to engage in the business of importing, manufacturing, and dealing in firearms. They are currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose thanked C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Chief Bence Hoyle of the Cornelius Police Department for investigating the case.
Assistant U.S. Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Three Men Sentenced for String of Convenience Store Armed RobberiesRead the Press Release
LAS VEGAS, Nev. – Three Las Vegas men were sentenced today to a total of 40 years in prison for their involvement in a string of convenience store armed robberies during the summer of 2014, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Kevin Hall, 29, Justin Loper, 29, and Keith Williams, 26, were sentenced to 154 months, 184 months, and 147 months, respectively. Each defendant pleaded guilty to one count of conspiracy to interfere with commerce by robbery; three counts of interference with commerce by robbery; and one count of brandishing a firearm during and in relation to a crime of violence. United States District Chief Judge Gloria M. Navarro presided over the sentencing hearings.
According to their individual plea agreements, on June 15, 2014, Hall, Loper, and Williams robbed a 7-Eleven at 30 West Wyoming Ave. in Las Vegas. Loper pointed a handgun at the store clerk and demanded money from the register and the safe. The defendants stole approximately $446.34 and the clerk’s cellular telephone. Then on July 13, 2014, the defendants robbed a Circle K at 5400 Vegas Drive. Loper pointed a handgun at the clerk and told the clerk to open the register. The defendants stole approximately $750. Later that morning, the defendants entered a Mini Mart at 3342 South Sandhill Road and ordered everyone in the store to get on the ground. Loper and Hall jumped the counter while Williams stayed in the front of the store watching the customers. The defendants stole a total of approximately $6,000 from the register and the safe.
After the Mini Mart armed robbery, the defendants fled in a vehicle. After a brief pursuit by law enforcement the defendants’ vehicle crashed. The defendants fled on foot and were arrested near the crash site. Approximately $6,000 in cash was found near one of the defendants. During a subsequent search of the car, investigators found a loaded .40 caliber pistol, Circle K plastic bags filled with cigarettes, three pairs of black cotton gloves, a black ski-mask, and baseball hats, all consistent with items taken in the robberies and clothing items used in the robberies. At the time of their arrests all defendants were wearing the same clothing worn by the robbers as observed in video surveillance.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department with assistance from the North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorney Alexandra Michael.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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The Civil Rights Division Celebrates 60th AnniversaryRead the Press Release
Saturday is the 60th anniversary of the Department of Justice’s Civil Rights Division. On September 9, 1957, President Eisenhower signed the Civil Rights Act of 1957, creating the Civil Rights Division. The 1957 Act was the first civil rights law passed since Reconstruction, and was a first step leading to the passage of the landmark Civil Rights Act of 1964, the Voting Rights Act the following year, and numerous other civil rights laws enacted in the years since that are enforced by the Civil Rights Division.
“Since its founding, the Civil Rights Division’s efforts have helped transform the social landscape of our country and touched the lives of millions of Americans,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Today, the Division remains at the center of the effort to achieve equal justice and opportunity for all and to protect the most vulnerable members of our society.”
At its inception, the Division focused on protecting the voting rights of African-American voters and prosecuting cases of criminal interference with civil rights. Division attorneys prosecuted the defendants accused of murdering three civil rights workers in Mississippi in 1964, and were involved in the investigations of the assassinations of Dr. Martin Luther King, Jr., and Medgar Evers.
The Division today enforces dozens of federal statutes that prohibit discrimination in employment, education, housing, credit, voting, access to public accommodations and public facilities, and access to government-funded services. While racial discrimination was the motivating purpose and central focus of the first civil rights laws enacted by Congress, Congress has included in statutes enforced by the Division protections against many types of discrimination, including not only race and color but national origin, sex, disability, religion, familial status, sexual orientation, gender identity, and military status.
The Division has a leading role in combatting hate crimes, human trafficking, and excessive use of force by law enforcement or prison officers. The Division’s role also encompasses preserving the right to vote; protecting students and employees against discrimination, harassment, and retaliation; protecting the rights of persons with disabilities to equal access to public accommodations and services; upholding the rights of persons in institutions to constitutional and humane treatment; protecting the rights of religious communities to construct places of worship; and enforcing other important civil rights protections.
“Several generations of dedicated attorneys and employees of the Civil Rights Division have built an institution that all Americans can be proud of,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “But this work is far from finished. We will continue to work tirelessly towards a country that fulfills its promise of equal justice, equal opportunity, and human dignity for every single American.”
More information about the Civil Rights Division, including its history, how it is organized, and its recent cases and activities, are available at https://www.justice.gov/crt/about-division-overview.
Taunton Man Sentenced for Heroin TraffickingRead the Press Release
BOSTON – A Taunton man was sentenced today in federal court in Boston for trafficking heroin and fentanyl in southeastern Massachusetts.
Oniel Rivera, 30, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to five years in prison and three years of supervised release. In May 2017, Rivera pleaded guilty to conspiracy to possess with intent to distribute heroin and fentanyl.
In October 2015, Rivera was arrested and charged along with 24 others in connection with a heroin trafficking ring operating in southeastern Massachusetts; an April 2016 superseding indictment brought the number of defendants charged in the case to 26. The charges were the result of a 15-month investigation into heroin and drug trafficking in the Taunton area.
The investigation revealed that Rivera purchased heroin from co-defendant Dedwin Cruz-Rivera, who received the drugs from three other co-defendants: Eric Matos, a former heroin and fentanyl supplier based in Lawrence; Manuel Romero-Gonsalez, a former heroin supplier based in Providence, R.I.; and Jonathan Ruiz, a former Lawrence drug supplier, among others.
On July 28, 2017, Matos was sentenced to 121 months in prison; in April 2017, Romero-Gonsalez was sentenced to 66 months in prison and will be subject to deportation upon completion of his sentence; Ruiz pleaded guilty and is scheduled to be sentenced on Sept. 28, 2017. In July 2017, Cruz-Rivera pleaded guilty to conspiracy to possess with intent to distribute and to distribute one kilogram or more of heroin and 40 grams or more of fentanyl. He will be sentenced on Oct. 12, 2017. Numerous other defendants in this case have pled guilty and been sentenced.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Thomas E. Kanwit and Karen Beausey of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the cases.
Stock Broker Pleads Guilty to Microcap Stock Manipulation SchemeRead the Press Release
BOSTON – A former New Hampshire stockbroker pleaded guilty today for his role in a market manipulation scheme which was actually part of an undercover operation.
Robert Raffa, 57, of Penacook, NH, pleaded guilty to one count of conspiracy to commit securities and wire fraud, one count of securities fraud, and three counts of wire fraud. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Dec. 6, 2017. In April 2016, Raffa and a co-conspirator were arrested and charged in connection with their role in a scheme to manipulate the market for the publicly traded securities of Green Energy Renewable Solutions, Inc., a penny stock company that claimed to be in the business of developing and operating waste processing and recycling facilities near Detroit, MI.
In early 2012, the conspirators used four foreign entities to covertly acquire nearly all of Green Energy’s unrestricted stock without reporting their controlling interest as required by law. They then hired a promoter to send blast e-mails touting Green Energy to potential investors, all while selling shares without disclosing that they had orchestrated the campaign encouraging investors to buy.
The initial promotion enabled the conspirators to sell more than 1.5 million shares of Green Energy stock for proceeds of over $900,000. However, as the conspirators continued to control a substantial amount of Green Energy stock after the promotion ended, they used manipulative trading techniques to stabilize Green Energy’s stock price while they searched for another promoter to run a second touting campaign. Their search led them to a stock promoter who was secretly cooperating with federal agents and an undercover agent who claimed to have access to a network of corrupt stockbrokers who would buy their shares in exchange for kickbacks. Raffa and his co-conspirator executed a trade in which they sold 174,000 shares of their Green Energy stock to an account purportedly controlled a corrupt broker, which was in fact controlled by federal authorities. Following the trade, the conspirators wired a $6,000 kickback payment to an account they believed to be controlled by the corrupt broker, but which was actually controlled by federal authorities.
In a parallel action, the Securities and Exchange Commission (SEC) previously charged Raffa with securities fraud in connection with the scheme.
These charges arose out of a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
Today’s charges follow a series of cases filed by the U.S. Attorney for the District of Massachusetts and the SEC in which more than 30 individuals have been criminally charged and convicted for using kickbacks and other schemes to trigger investment in, or manipulate the stock of, thinly-traded stocks.
The charge of conspiracy provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of $250,000, or twice the gain or loss. The charge of securities fraud provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of $250,000, or twice the gain or loss. The charges of wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gain or loss. 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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The United States Attorney’s Office received valuable assistance from the SEC. Assistant U.S. Attorney Vassili Thomadakis of Weinreb’s Criminal Division and SEC Attorney Andrew Palid, who was appointed as a Special Assistant U.S. Attorney, are prosecuting this case.
The details contained in the charging document are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield Man Pleads Guilty in Child Sex Tourism CaseRead the Press Release
ALEXANDRIA, Va. – A Springfield man pleaded guilty today to attempting to entice an eight-year-old minor to engage in sex during his trip to the Philippines in 2013.
According to the statement of facts filed with the plea agreement, Carl Sara, 63, participated in live-streaming webcam sessions depicting minors engaged in sexually explicit conduct and engaged in sexually explicit chatting with minors. During some of these chats, which occurred in or about May 2013, Sara attempted to have a woman in the Philippines assist him in enticing her eight-year old daughter to have sex with him during a 2013 trip to the Philippines. He paid her $200 dollars via Western Union as a down-payment and offered to pay her an additional $300 after he had sex with the eight-year-old.
Sara faces a mandatory minimum sentence of 10 years and a maximum penalty of life in prison when sentenced on December 8. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Special Assistant U.S. Attorney James E. Burke IV and Assistant United States Attorney Nathaniel Smith III are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-54.
South Jersey Man Gets 70 Months in Prison for Role in Crack Distribution ConspiracyRead the Press Release
CAMDEN, N.J. - A Camden man was sentenced today to 70 months in prison for his role in a crack cocaine distribution conspiracy operating in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.
Joseph Boyd, a/k/a “Breet,” 32, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Joseph Boyd admitted that he sold crack cocaine in and around the 1100 block of Lansdowne Avenue in Camden and supplied crack cocaine to other members of the conspiracy to sell in the area.
Joseph Boyd – along with Jason Boyd, Tony Wilson, Preston Thomas, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson – were originally charged by complaint on Sept. 9, 2016, following an investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities.
In addition to the prison term, Judge Simandle sentenced Joseph Boyd to three years of supervised release.
Jason Boyd, Stallworth, and Wilson, who each previously pleaded guilty to drug distribution conspiracy and firearms possession, were all sentenced to 96 months in prison. Dickerson and Griffin both pleaded guilty to their roles in the scheme and await sentencing.
Thomas and Whitaker remain charged by superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base. Thomas is also charged with one count of possession of a firearm in furtherance of a drug trafficking crime. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: David Rudenstein Esq.
Seventeen indicted in federal court for conspiracy to cook crack cocaine and sell it in Medina CountyRead the Press Release
Seventeen people were indicted in federal court for their roles in a conspiracy to purchase large amounts of powder cocaine, cook the drug into crack cocaine and then sell it in and around Medina County, law enforcement officials said.
Indicted in federal court are: Troy Bankhead, 47, of Cleveland; Dona Battle, 44, of Cleveland; William Battle, 45, of Cleveland; Aaron Watson, 31, of Medina; Anthony Patterson, 50, of Columbia Station; Carlos Tripp, 44, of Medina; Dale Lind, 58, of Medina; Douglas Cameron, 48, of Medina; Erica Latten, 29, of Cleveland; Fannie Tripp, 60, of Medina; Felicia Finowski, 49, Columbia Station; Jennifer Cayce, 38, of Medina; Jermaine Tripp, 36, of Medina; John Spickler, 38, of Brunswick; John Wise, 53, of Medina; Michael Powell, 52, of Medina, and Raymel King, 30, of Cleveland.
Twelve other people have been charged state court.
According to the six-count indictment unsealed today:
Bankhead sold large amounts of powder cocaine to Dona Battle between August 2016 and February 2017. Battle then cooked the cocaine into crack cocaine at 26799 Royalton Road, Columbia Station (the residence of Patterson and Finowski), 5651 Columbia Road, Medina (the residence of Cameron and Cayce) and 1406 West 75th Street, Apartment 3, Cleveland (the residence of Latten).
Dona Battle then sold the crack cocaine to several other dealers, including Watson, Lind, Carlos Tripp, William Battle, Raymel King and Jermaine Tripp, who then sold it to drug users.
Dona Battle used 417 Bronson Street, Apartment A, Medina (the residence of Fannie Tripp) and 997 Substation Road, Brunswick (the residence of Spickler) as drug houses from which he could sell crack and powder cocaine.
Spickler, Latten, Wise, Patterson and Finowski also provided transportation for Battle to obtain crack and powder cocaine for further distribution.
These cases are the result on an 18-month investigation, which was a cooperative effort between the DEA, Ohio Bureau of Criminal Investigation and the Medina County Drug Task Force. The investigation consisted of undercover purchases of drugs, the execution of search warrants, and other investigative techniques.
This investigation resulted in several significant seizures including more than 37 pounds of cocaine, $516,975 in cash, a tractor-trailer, five other vehicles and five firearms.
“This organization used homes and apartments to cook crack cocaine, which it sold in and around Medina,” U.S. Attorney Justin E. Herdman said. “It was a spoke in a larger organization that trafficked a lot of cocaine. These defendants will now be held accountable for their actions.”
DEA Special Agent in Charge Timothy J. Plancon said: “Putting a stop to this criminal conspiracy is significant. The seizure of 37 pounds of cocaine and over half a million dollars of drug-dealing proceeds indicates that this group was connected with drug traffickers at the highest levels. Halting their activities makes everyone in the region safer. The efforts of the Medina County Drug Task Force and the Ohio Bureau of Criminal Investigation have been particularly integral to this investigation’s success.”
“I created a specialized unit at the Ohio Bureau of Criminal Investigation to focus on large-scale drug trafficking operations, and we are pleased that we were able to work with local and federal authorities to help bring down this drug trafficking organization,” said Ohio Attorney General DeWine. “These drugs have no place on our streets, and our agents will continue to work diligently to investigate those who are pushing drugs in Ohio.”
“This investigation was initiated by agents from the Medina County Drug Task Force and Cleveland office of the Drug Enforcement Administration,” said Gary Hubbard, director of the Medina County Drug Task Force. “The intent was to address local drug trafficking issues in the city of Medina with a focus on repeat drug trafficking offenders. The hard work and commitment by all of the agents involved resulted in one of the largest drug trafficking investigations and narcotics seizures in Medina County history. This investigation lead to the seizure of the 17 kilos of cocaine, six ounces of heroin and over $500,000 in U.S. currency that was first reported in February 2017. The success of this case was made possible by the longstanding partnerships between the Medina County Drug Task Force, DEA, Ohio Bureau of Criminal Investigation and the many other law enforcement agencies involved.”
This case was investigated by the Drug Enforcement Administration, Ohio Attorney General’s Bureau of Criminal Investigation, Medina County Drug Task Force, Medina County Sheriff’s Office, Medina Police Department, National Guard Intelligence, Ohio State Highway Patrol, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Department, Lorain County Drug Task Force, Lake County Narcotics, Akron Police Department, Summit County Drug Unit, Ashtabula County Sheriff’s Office, U.S. Border Patrol, U.S. Marshals and Suburban Police Anti-Crime Network Drug Enforcement Unit, with assistance from the Medina County Prosecutor’s Office. It is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
San Juan County Man Sentenced to Prison for Federal Health Care Fraud ConvictionRead the Press Release
ALBUQUERQUE – Cory Werito, 33, of Farmington, N.M., was sentenced today in federal court in Albuquerque, N.M., for his healthcare fraud conviction, announced Acting U.S. Attorney James D. Tierney and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso. Werito was sentenced to a 30-month term of imprisonment followed by three years of supervised release. He also was ordered to pay $1,218,165 in restitution to the victim of his criminal conduct.
Werito and his co-defendant, Rosita Toledo, 48, of Kirtland, N.M., were charged in a ten-count indictment that was filed on June 15, 2016. The indictment included nine health care fraud charges against Werito and Toledo, and an aggravated currency structuring charge against Werito. The health care fraud charges arose out of the defendants’ roles in creating and operating a medical transportation company, CW Transport, a New Mexico company located in Farmington that provided non-emergency medical transportation to Arizona Medicaid recipients, funded by reimbursement payments from the Arizona Health Care Cost Containment System (AHCCCS), a healthcare benefit program. Over the course of two years between 2011 and 2013, CW Transport collected more than $1.9 million in Medicaid reimbursements from AHCCCS by submitting more than 18,000 claims for reimbursement, the vast majority of which were wholly or substantially false and fraudulent.
According to Count 10 of the indictment, the aggravated currency structuring charge, a Werito conducted financial transactions involving the proceeds of the health care fraud in a manner that avoided the filing of Currency Transaction Reports (CTRs). CTRs are reports which must be filed by financial institutions on transactions involving more than $10,000 during any business day and are used by law enforcement authorities to uncover a broad range of illegal activities including money laundering. From Aug. 2011 to July 2013, Werito conducted at least 200 cash withdrawals, each for several thousands of dollars but less than $10,000 and totaling at least $800,000, to avoid the filing of CTRs.
The indictment included forfeiture provisions seeking an order requiring Werito and Toledo to forfeit to the United States at least $1,959,405, the proceeds allegedly derived from the health care fraud alleged in Counts 1 through 9 of the indictment.
On March 9, 2017, Werito pled guilty to Count 1 of the indictment, charging him with committing health care fraud. Werito admitted, as the sole owner of CW Transport, he submitted approximately 18,765 claims for reimbursement to AHCCCS between July 2011 and July 2013. Because the claims were grouped in 140 invoices, Werito received 140 payments from AHCCCS in an amount totaling $1,959,405. Werito admitted submitting the claims for reimbursement as part of a scheme to defraud AHCCCS because he either never provided or provided in a substantially different manner many of the services for which he sought and received reimbursement.
On March 30, 2017, Toledo also entered a guilty plea to Count 1 of the indictment, and admitted her role in the health care fraud scheme. In entering her guilty plea, Toledo admitted that between July 2011 and July 2013 and in her capacity as the primary claims processor for CW Transport, she submitted 18,765 fraudulent claims for reimbursement, which caused AHCCCS to pay CW Transport a total of $1,959,405. A sentencing date for Toledo has yet to be scheduled.
The Albuquerque office of HSI investigated the case with assistance from the FBI, U.S. Marshals Service, San Juan County Sheriff’s Office, the Arizona Health Care Cost Containment System and New Mexico Office of the Attorney General. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.