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Wednesday 12 July 2017
California Man Sentenced for Cocaine Trafficking ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A California man who participated in a large-scale cocaine trafficking conspiracy was sentenced today to 162 months in prison.
Hilario Rodriguez, 50, pleaded guilty on April 12. According to court documents, Marvin O’Neal Carter, Sr., 49, of Newport News; Michael Stephen Kuna, 42, of Canada; Daniel Rodriguez, 49, and Hilario Rodriguez, both of California; were charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Carter was also charged with possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute heroin, possession of a firearm during a drug trafficking crime and maintaining a drug involved premises. In addition to the conspiracy charge, Daniel and Hilario Rodriguez were charged with interstate travel in aid of racketeering.
According to court documents, agents observed the arrival of a tractor trailer at a garage leased by Carter. The tractor trailer eventually off-loaded the trailer next to the garage, and agents observed Michael Kuna, and Daniel and Hilario Rodriguez arrive and park in Carter’s garage parking lot. The four men then allegedly worked together to unload cocaine from hidden compartments located underneath the trailer. A short time later, Kuna was observed loading two large duffel bags with green straps into a vehicle before leaving the area. Law enforcement agents conducted a traffic stop on Kuna and located the two duffle bags which emanated with the odor of wet currency.
According to court documents, as Kuna was being detained, agents executed two federal search warrants on the garage and trailer. During the search, approximately 54 kilograms of cocaine and 100 bundles of cash in $5,000 to $10,000 stacks were recovered. The search of the garage also led to the recovery of a firearm and a quantity of heroin, in addition to approximately $42,000 in cash from a safe.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Richard W. Myers, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-76.
California Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Lawrence Neubert, 46, of San Diego, CA, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of methamphetamine before Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on September 4, 2014, and October 2, 2014, the defendant mailed packages containing more than 220 grams of methamphetamine, via FedEx, from California to Buffalo. Surveillance video from September 4, 2014, showed Neubert preparing the package and paying for its shipment in cash. In exchange for sending the packages, Neubert received $3500 in USPS money orders.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for October 18, 2017, at 2:00 p.m. before Judge Skretny.
Brother and Sister Charged with Phony Invoice SchemeRead the Press Release
NEWARK, N.J. – A brother and sister from New Jersey have been charged with running a multi-million-dollar fraudulent invoice scheme, Acting U.S. Attorney William E. Fitzpatrick announced today.
Shevandra Verasawmi, 37, of Matawan, New Jersey, and Vishallie Verasawmi, 36, of Green Brook, New Jersey, are charged by indictment with one count of conspiracy to commit mail fraud and three counts of mail fraud.
Shevandra Verasawmi was arrested July 11, 2017, and appeared that afternoon before U.S. Magistrate Judge David Cayer in Charlotte, North Carolina, federal court. Vishallie Verasawmi was arrested this morning and appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. Both defendants, who are out on bail, will be arraigned before U.S. District Judge Freda L. Wolfson in Trenton federal court on July 19, 2017.
According to the indictment:
From April 2016 through August 2016, Shevandra and Vishallie Verasawmi defrauded an entity identified in the indictment as “Victim Company 1” into paying shell companies that were incorporated by Shevandra Verasawmi. Despite the fact that the shell companies never had contracts for goods or services with Victim Company 1, Vishallie Verasawmi used her position as an employee of Victim Company 1 to add the shell companies to Victim Company 1’s accounts payable system.
Shevandra and Vishallie Verasawmi then submitted dozens of fraudulent invoices to Victim Company 1 and ultimately deposited the fraud proceeds into bank accounts they controlled. In total, Shevandra and Vishallie Verasawmi attempted to divert millions of dollars belonging to Victim Company 1 and spent the proceeds on personal expenses, including luxury cars and credit card payments.
The indictment seeks forfeiture of Shevandra and Vishallie Verasawmi’ s alleged proceeds from the scheme, including $1,066,829.57 and a 2016 BMW 750Li xDrive sedan.
The mail fraud conspiracy and mail fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
The investigation was led by criminal investigators with the U.S. Attorney’s Office in Newark. The government is represented by Assistant U.S. Attorneys Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Alex Weinberg of the office’s Asset Forfeiture and Money Laundering Unit.
Acting U.S. Attorney Fitzpatrick thanked postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and the U.S. Marshals for their assistance.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Brewer Man Sentenced to 69 Months for Possessing Child PornographyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Ronald Boersma, 38, of Brewer, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 69 months in prison to be followed by 15 years of supervised release for possessing child pornography. Boersma pleaded guilty on November 18, 2016.
According to court records, in February of 2016, law enforcement, using a peer-to-peer file sharing program, downloaded files containing images of child pornography from the defendant’s home computer. A search warrant was subsequently obtained for the defendant’s residence where a forensic examination of the defendant’s computer revealed additional images of child pornography. On the day the search warrant was executed, the defendant was interviewed and admitted that he had searched for and downloaded sexually explicit images via the internet and that his specific interest was in females between 8 and 10 years of age.
The case was investigated by the Maine State Police Computer Crimes Unit and the U.S. Secret Service.
Brandon Scott Woodley to Serve A Total of 138 Months in Prison Following Shooting in West Knoxville Hotel Parking LotRead the Press Release
KNOXVILLE, Tenn. – On July 12, 2017, Brandon Scott Woodley, 35, of Knoxville, Tennessee, was sentenced by the Honorable Leon R. Jordan, Senior U.S. District Judge, to serve 120 months in prison for knowingly possessing ammunition after having been previously convicted of a felony. Woodley was convicted in December 2016 after a jury trial in federal court.
Woodley has been in custody since his arrest in September 2015, following a shooting in a west Knoxville hotel parking lot in August 2015. Witnesses testified at trial that Woodley shot a co-worker during an argument and tried to shoot the victim a second time, but the gun jammed. Woodley fled the scene and the firearm was never recovered; however, some ammunition from the shooting was recovered in the parking lot. The victim was hospitalized after the shooting, but has fully recovered.
At the time of the offense, Woodley was serving a three-year term of supervised release after his release from prison for a 2009 conviction of being a convicted felon in possession of a cache of firearms. As a result of his more recent conviction and his illegal drug use and drug trafficking while on supervised release, Judge Jordan also revoked his supervised release and ordered him to serve an additional prison term of 18 months, to be run consecutively with the 120-month sentence for the more recent charge, for a total of 138 months.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Knoxville Police Department. Assistant U.S. Attorney Matthew T. Morris represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Attorney General Jeff Sessions Applauds House of Representatives for Anti-Human Trafficking LegislationRead the Press Release
Today Attorney General Jeff Sessions issued the following statement applauding the House of Representatives for passing three significant Anti-Human Trafficking bills:
“There is simply no way to overstate the horrific nature of enticement, kidnapping, and human trafficking. It is an absolute priority of President Trump and the Department of Justice to make those that seek to profit off the exploitation of others feel the weight of swift and certain justice. I am therefore extremely encouraged by the actions of Congress today in passing legislation aimed at stopping this scourge and commend all those that supported these bills.”
BACKGROUND
The Frederick Douglass Trafficking Victims Prevention and Protection Act
The Enhancing Detection of Human Trafficking Act
The Empowering Law Enforcement to Fight Sex Trafficking Demand Act
Anchorage Man Sentenced to Federal Prison for Distributing OpiumRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Danny R. Q. Wong was sentenced in federal court in Anchorage today to serve a term of 15 months in prison for distributing opium. Wong, 58, of Anchorage, was indicted last year for conspiring with three other persons to distribute opium. In three separate transactions, Wong sold a total of 1 and ¼ kilograms of opium to another individual for a total of $60,000. Two of the three remaining defendants in the case are awaiting trial, and the third is a fugitive.
In sentencing Wong to serve 15 months in prison, Chief U.S. District Judge Timothy M. Burgess noted that a significant amount of opium had been involved in the case, but also noted that at age 58, this was the first criminal conviction sustained by Wong who had otherwise lead a productive life as the owner of a metal recycling business in Anchorage.
Acting U.S. Attorney Schroder commends the Federal Bureau of Investigation Safe Streets Task Force for the investigation of this case.
American Falls Man Sentenced to 25 Years for Child EnticementRead the Press Release
POCATELLO – Jesus Nieto, 20, of American Falls, Idaho, was sentenced yesterday in United States District Court to 300 months in prison for enticing and coercing two underage girls, followed by 15 years of supervised release, Acting U.S. Attorney Rafael Gonzalez announced. Chief U.S. District Judge B. Lynn Winmill also ordered Nieto to pay a $5,100 special assessment. Nieto pleaded guilty to the charge on March 2, 2017.
According to the plea agreement, Nieto utilized Internet-based social media to communicate with two girls, ages 11 and 15, for the purpose of soliciting sexually explicit pictures and persuading and coercing the girls into engaging in sexual intercourse with him. Nieto communicated with the girls from approximately November 2015 to January 2016. Evidence introduced at sentencing indicated that Nieto had engaged in unlawful sexual activity with other underage girls as well.
The case was investigated by the American Falls Police Department, with the assistance of the Power County Prosecutor’s Office and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Alexandria Man Pleads Guilty to Gun and Drug CrimeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to the use and carry of a firearm during and in relation to a drug trafficking crime.
According to the statement of facts filed with the plea agreement, Bryan Jamal Matthews, 19, distributed an ounce of marijuana to an undercover police officer in the Kingstowne area of Fairfax County on February 8. Matthews then led officers on a short foot pursuit when they attempted to arrest him. During a search, officers seized a semi-automatic pistol with an extended magazine and other controlled substances from Matthews’ person. After his arrest on state charges, Matthews was released on bond and continued to distribute marijuana and possess firearms. Then, on May 19, federal agents executed a court-authorized search at Matthews’ residence and he again attempted to flee, tossing a loaded semi-automatic pistol into the nearby woods.
Matthews faces a mandatory minimum of five years and a maximum penalty of life in prison when sentenced on October 20. 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 Michael F. Boxler, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement after the plea was accepted by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Carina A. Cuellar is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-143.
Tuesday 11 July 2017
Woman Sentenced to 138 Months in Federal Prison for Her Role in Armed RobberiesRead the Press Release
DALLAS — Tatiana Renee Sallie, 20, was sentenced today by U.S. District Judge Sam A. Lindsay to serve a total of 138 months in federal prison for her role in committing several violent armed robberies with a group in the Dallas area in 2015, announced U.S. Attorney John Parker of the Northern District of Texas.
Sallie pleaded guilty in November 2016 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Sallie has been in custody since her arrest in April 2016.
Judge Lindsay previously sentenced co-defendants Devonte Aaron Dillard, 25, to 240 months in federal prison; Michael Deshun Holland, Jr., 22, to 220 months in federal prison; Coby Cole Ditto, 22, to 168 months in federal prison; and Trenton Kyle Sirkel, 21, to 24 months in federal prison.
“These people are extremely dangerous,” said U.S. Attorney Parker. “Working with our local and federal partners to take them off our streets is a critical part of this office’s work.”
According to documents filed in the case and information presented in court, Sallie and her co-defendants robbed four convenience stores in April and May 2015. The group displayed a firearm to the store clerk in all four of the robberies.
On April 17, 2015, Sallie waited in the car while Dillard and Holland, armed with a loaded firearm, entered a Chevron Food Mart on Highway 80 in Mesquite, Texas. In the course of robbing the store, Dillard shot the clerk. Holland repeatedly punched the clerk in the face, continuing even after the clerk had been shot.
On May 8, 2015, Dillard, Holland, Ditto and Sirkel entered a 7-Eleven store on Interstate Highway 30 in Mesquite, brandished a firearm, and robbed the store.
On May 12, 2015, Dillard, Holland, Ditto and Sallie entered a 7-Eleven store on Gus Thomasson Road in Mesquite. The group brandished a firearm, struck a store clerk in the head with the firearm, and robbed the store.
That same night, Dillard, Holland, Ditto and Sallie went to the 7-Eleven store on Northwest Highway in Garland. The group brandished a firearm and robbed the store, during which time Holland and Dillard brutally beat the store clerk.
The case was investigated by the Mesquite Police Department, the Garland Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Jamie L. Hoxie and Keith Robinson prosecuted.
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Woman Indicted for Running Health Care Fraud Scheme from PrisonRead the Press Release
DALLAS — Alexis C. Norman, 46, of Midlothian, Texas has been indicted on felony offenses stemming from a health care fraud conspiracy she ran from prison that involved the submission of more than $810,000 in false claims to Medicaid, announced U.S. Attorney John Parker of the Northern District of Texas.
Norman is scheduled to make her initial appearance in federal court on July 14, 2017, before U.S. Magistrate Judge Paul D. Stickney.
On August 4, 2015, Norman pled guilty to one count of health care fraud in connection with a false billing scheme she ran using two companies she owned and operated, Greater Southwest Group, Inc. and Ellis County Community Services. As part of that scheme, Norman used the identities of licensed counselors and Medicaid clients without their knowledge or consent to submit claims to Medicaid for psychotherapy services that were not provided. Norman appeared before a United States District Court Judge for sentencing on April 7 and 8, 2016, and was sentenced to 105 months in federal prison and ordered to pay $2,969,045.97 in restitution to Medicaid. Norman has been in the custody of the Federal Bureau of Prisons since April 8, 2016.
According to the indictment that was just unsealed, Norman ran a similar scheme while she was awaiting sentencing in her prior case, and continued to direct it after she was incarcerated. The indictment alleges that Norman, who is not licensed as a psychotherapist or other mental health provider, controlled and operated two counseling companies, Janus Children Services, Inc. (Janus) and Therapeutic Outreach Services (Therapeutic). As part of the scheme, according to the indictment, Norman and a coconspirator applied for and obtained group Medicaid provider numbers for Janus and Therapeutic. They then obtained the individual Medicaid provider numbers of licensed mental health professionals by soliciting applications for job opportunities on Craigslist but not hiring the individuals who applied. Norman and her coconspirators used these provider numbers, together with the names, dates of birth, social security numbers, and Medicaid numbers of approximately 156 Medicaid clients—mostly minor children—to submit claims for services that were not performed.
As a further part of the scheme to defraud, Norman and a coconspirator opened a bank account and leased office space in Tyler, Texas for Janus. Norman also opened a bank account and leased office space in Waco, Texas, for Therapeutic. Norman selected these locations for office locations to conceal the fraud from the law enforcement authorities in the DFW area that investigated her prior fraud. Other than using the office addresses for various Medicaid applications and submissions, the office spaces in both Tyler and Waco were never occupied or used.
The indictment alleges to conceal the fraud, Norman provided false testimony at her sentencing hearing on April 8, 2016, when she responded “No, sir.” to the question, “Have you ever submitted any claims to Medicaid or a Medicaid managed care organization under a business other than Greater Southwest Group or Ellis County Community Services?” In fact, Norman had submitted numerous false claims to Medicaid under Janus, including $1,575.00 in claims she submitted on April 7, 2016.
Norman is charged with one count of conspiracy to commit health care fraud, four counts of health care fraud, and four counts of aggravated identity theft. The indictment also includes a forfeiture allegation that would require the defendant, upon conviction, to forfeit to the U.S. any property traceable to the offense.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count of conspiracy to commit health care fraud and substantive health care fraud carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The aggravated identity theft counts carry a mandatory statutory penalty of two years in federal prison and a $250,000 fine.
The U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit are investigating. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
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Wolfeboro Man Sentenced to Seven Years in Prison for Two Rochester Bank RobberiesRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Jacob Chiaradonna, 28, of Wolfeboro, New Hampshire, was sentenced to 84 months in federal prison for robbing two Rochester banks in October of 2016.
Court filings and statements made in court established that on October 5, 2016, Chiaradonna entered a Citizens Bank in Rochester, New Hampshire, and handed a teller a note that read “Give me all your $50 and $100, I have a gun don’t be stupid.” After taking money from the teller, Chiaradonna fled the bank. Six days later, on October 11, 2016, Chiaradonna robbed a TD Bank in Rochester using a similar strategy, handing a teller a note that read “give me your 20’s, 50’s, 100’s, I have a gun,” then fleeing on foot with the cash.
Law enforcement officers posted images of the robberies on television and social media, and several individuals familiar with Chiaradonna came forward to identify him as the robber. On October 13, 2016, law enforcement located Chiaradonna at a motel in Wolfeboro, New Hampshire, and arrested him. A search of Chiaradonna’s cell phone from the motel turned up an internet browsing history that included visits to web pages providing advice on how to rob a bank.
Chiaradonna previously pleaded guilty to the two bank robberies on March 16, 2017. After serving his prison sentence, he will be on supervised release for a period of 3 years.
The case was jointly investigated by the Police Departments of Rochester and Wolfeboro, and by the Federal Bureau of Investigation and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Shane B. Kelbley.
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White Sulphur Springs drug dealer pleads guilty to federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A White Sulphur Springs heroin dealer pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Gerald Tyrone King, 37, entered his guilty plea to distribution of heroin.
King admitted that on May 27, 2016, he sold heroin to a confidential informant working with law enforcement. The drug deal took place in White Sulphur Springs.
King faces up to 20 years in federal prison when he is sentenced on October 18, 2017.
The Greenbrier Valley Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case is being prosecuted as part of the Greenbrier Valley Heroin and Pill Initiative, an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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White County, Tennessee Business Owner Charged in $43 Million Investment SchemeRead the Press Release
Jeffery Lynn Gentry, 40, of White County, Tenn., was charged in a criminal information filed on July 5, 2017, with wire fraud and money laundering, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Gentry owned and operated Gentry Brothers Tractor Supply and Gentry Auto, both located in Sparta, Tenn.
The charging document contains the following allegations: beginning in 2012 and continuing to mid-December of 2016, Gentry devised and executed a scheme to defraud and obtain money and property from investors, promising high rates of return on investments, purportedly used to purchase farm-related equipment to satisfy state contracts and producing significant profits.
Gentry falsely represented to investors, including customers, friends, acquaintances, and family members, many of whom lived in White County, Tennessee, that he was bidding on and winning contracts from various states, including Tennessee, to supply equipment, including tractors, lawn mowers, and other farm-related equipment through his tractor supply company.
Through this scheme, Gentry convinced more than 50 individuals to invest funds totaling approximately $43 million and caused financial loss to investors of more than $10 million.
Despite his assurances to investors of significant returns, Gentry never intended to invest the funds as promised but instead, used the money to subsidize his lifestyle, amassing assets worth a substantial amount of money, including numerous tracts of real estate and vehicles.
In March 2016, Gentry also used investor funds to start up and support a new business venture, Gentry Auto, a used car lot, transferring more than $365,000 of investor funds from the Gentry Brothers Tractor Supply company to the Gentry Auto business between March 24, 2016 and December 6, 2016.
The charging document also contains a forfeiture allegation which seeks a monetary judgement of at least $10 million.
If convicted, Gentry faces up to 20 years in prison on each count and monetary fines.
This case was investigated by the FBI, the IRS-Criminal Investigation; and the U.S. Marshal’s Office. The case is being prosecuted by Assistant U.S. Attorney Kathryn Risinger. Assistant U.S. Attorney Deb Phillips is handling the asset forfeiture.
The charges brought by this information are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Watertown Man Sentenced for Citizenship FraudRead the Press Release
SYRACUSE, NEW YORK – Gurpreet Singh (37) of Watertown, New York, was sentenced today in federal court in Syracuse to three months in prison to be followed by three years of supervised release, following a jury trial in January where he was convicted of knowingly obtaining U.S. citizenship through unlawful naturalization, announced Acting United States Attorney Grant C. Jaquith and James C. Spero, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York.
Because of this conviction, Singh’s U.S. citizenship will be revoked by law.
The trial evidence showed that Singh, who is originally from India, repeatedly affirmed to United States Citizenship and Immigration (USCIS) authorities that he had not committed any crimes for which he was not arrested. Immigration authorities later learned that the defendant sexually abused a 9-year-old child during the same time-period he was applying for U.S. citizenship. Evidence presented at trial demonstrated that Singh deliberately failed to report his criminal activity to USCIS because he knew that USCIS would not have approved his naturalization application if the agency had known about his crimes. Singh pled guilty in New York state court to a single count of sexual abuse of a minor child, after he had become a naturalized U.S. citizen. Singh was arrested by the City of Watertown (New York) Police Department the day after his naturalization ceremony in April 2012.
While on supervised release following his prison term, Singh will be required to register as a sex offender and will be prohibited from having direct contact with children under the age of 18 (other than his own) and from going to places where children under 18 are likely to congregate, such as parks, libraries, and schools, without prior permission of a probation officer.
This case was investigated by Homeland Security Investigations (HSI) and the City of Watertown Police Department, and was prosecuted by Assistant U.S. Attorneys Michael F. Perry and Robert S. Levine.
Utah Chiropractor Convicted of Tax Evasion and Obstructing the IRSRead the Press Release
SALT LAKE CITY – An Orem, Utah former chiropractor, who also owned a health care products business, was convicted of tax evasion and corruptly endeavoring to obstruct the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to evidence presented at trial, Louis Hansen, 65, attempted to evade the payment of his federal income taxes for the years 2005, 2006, 2007 and 2010. For the years 2005, 2006 and 2010, Hansen filed a tax return reporting that he owed taxes, but did not fully pay the amounts due. For 2007, Hansen’s return was audited and additional taxes assessed. In March 2012, Hansen sent a check to the Internal Revenue Service (IRS) in the amount of $342,699 that was drawn on a closed bank account held in the name of another individual, and claimed that the check paid off his tax debt. Hansen then sent a signed letter to the revenue officer assigned to collect his unpaid taxes, claiming that he had paid the taxes owed. A few months later, Hansen sent 10 additional checks all in the amount of $425,000, to at least six IRS locations, all drawn on another closed account in the name of a different individual, claiming to pay the back taxes due.
The jury returned the guilty verdicts Tuesday afternoon.
Hansen is scheduled to be sentenced before U.S. District Judge Clark Waddoups at 3 p.m. on Sept. 25, 2017. He faces a statutory maximum sentence of five years in prison for tax evasion and three years in prison for obstructing the IRS. Hansen also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Kevin L. Sundwall and Assistant Chief Andrew Kameros of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.Utah Chiropractor Convicted of Tax Evasion and Obstructing the IRSRead the Press Release
An Orem, Utah former chiropractor, who also owned a health care products business, was convicted of tax evasion and corruptly endeavoring to obstruct the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to evidence presented at trial, Louis Hansen, 65, attempted to evade the payment of his federal income taxes for the years 2005, 2006, 2007 and 2010. For the years 2005, 2006 and 2010, Hansen filed a tax return reporting that he owed taxes, but did not fully pay the amounts due. For 2007, Hansen’s return was audited and additional taxes assessed. In March 2012, Hansen sent a check to the Internal Revenue Service (IRS) in the amount of $342,699 that was drawn on a closed bank account held in the name of another individual, and claimed that the check paid off his tax debt. Hansen then sent a signed letter to the revenue officer assigned to collect his unpaid taxes, claiming that he had paid the taxes owed. A few months later, Hansen sent 10 additional checks all in the amount of $425,000, to at least six IRS locations, all drawn on another closed account in the name of a different individual, claiming to pay the back taxes due.
Hansen is scheduled to be sentenced before U.S. District Judge Clark Waddoups on Sept 25. He faces a statutory maximum sentence of five years in prison for tax evasion and three years in prison for obstructing the IRS. Hansen also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Kevin L. Sundwall and Assistant Chief Andrew Kameros of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
U.S. Weapons Smuggler Sent to PrisonRead the Press Release
LAREDO, Texas – A 24-year-old U.S. citizen and resident of Nuevo Laredo has been ordered to federal prison for attempting to smuggle more than a dozen firearms, scopes and ammunition magazines to Mexico, announced Acting U.S. Attorney Abe Martinez. Iram Abel Buentello pleaded guilty March 31, 2017.
Today, U.S. District Judge Diana Saldana sentenced Buentello to 51 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard that weapons smuggled to Mexico often end up in the hands of violent international cartels. The government also contended that the type of weapons Buentello smuggled, such as high-powered rifles, can cause tremendous loss of life. In handing down the sentence, the court described the case as “a very serious matter.” The court further recognized the ongoing violence in Mexico and how Buentello’s conduct only “adds fuel to the fire.”
On Feb. 1, 2017, Buentello climbed inside of a pickup truck parked in downtown Laredo which had a cache of high-powered weapons concealed in the truck’s bed. Buentello drove the truck to the Lincoln Juarez Bridge II in Laredo and attempted to exit the United States into Mexico.
At the bridge, he told U.S. Customs and Border Protection (CBP) officers that he had no weapons to declare. CBP officers searched the truck and found a non-factory compartment in the truck bed containing five rifles, two shotguns, six handguns, six magazines and four scopes. Several of the weapons had been reported stolen. Buentello falsely claimed that he picked the truck up at a family member’s house and came to Laredo to shop. He had no license, permit or authorization to export the weapons to Mexico.
He has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the U.S. Customs and Border Protection. Assistant U.S. Attorney Chris Howard prosecuted the case.
U.S. Attorney’s Office indicts 9 members of ‘Block Boyz’ gang on RICO offenses, drug and firearm conspiraciesRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that nine members of the “Block Boyz” gang were indicted on RICO offenses, and drug and firearm conspiracies in Shreveport.
The nine Shreveport residents named in the 18-count indictment are:
DeMarcus D. Morris, 28;
Frank J. Morris, 24;
Jimmie R. Durden Jr., 28;
Lonnie D. Johnson, 23;
Gary J. McCain, 22;
Ravion M. Alford, 22;
Rodrick R. Hicks, 23;
Larshanda C. Davenport, 44; and
Golanda W. Atkins, 40.
According to the indictment, beginning in 2012, the defendants took part in a criminal organization known as the “Block Boyz” and the “Get Money Boyz” or “GMB.” The organization distributed controlled substances, murdered, robbed, possessed firearms illegally and conducted other crimes primarily within the Queensborough and Ingleside neighborhoods of Shreveport. The indictment lists 66 acts that members of the organization committed to further the RICO conspiracy. The acts include threats, sale of drugs and shootings. The organization sold crack cocaine, powder cocaine, roxicodone, marijuana, ecstasy and alprazolam. Eight of the defendants were named as part of a Racketeer Influenced and Corrupt Organizations or RICO conspiracy in the indictment, which is Count 1 of the indictment.
The indictment alleges that in order to generate income, gang members sold illegal drugs and committed armed robberies. They maintained and circulated a collection of firearms for use in their criminal activity and used cell phones to operate their criminal enterprise. Members of the organization bragged about their illegal activity, such as their possession of firearms, and took pictures of themselves with firearms and money to intimidate others and increase their position in the community.
All defendants have been arrested. In addition to the RICO count, charges include: Count 2 – conspiracy to distribute controlled substances; Count 3 – conspiracy to possess firearms; Counts 4 and 6 – violent crime in aid of racketeering; Counts 5 and 7 – using and carrying of a firearm during and in relation to a crime of violence; Counts 8, 12 and 15 – possessing a firearm by a convicted felon; Counts 9, 10 and 11 – distributing crack cocaine; Count 13 – conspiracy to commit a violent crime in aid of racketeering; Count 14 – possessing a firearm in furtherance of a crime of violence; and Counts 16, 17 and 18 – distributing powder cocaine.
The defendants face various possible penalties depending on the drug quantity involved, their role in the conspiracy and their criminal history. On the drug conspiracy and distribution counts, some defendants face up to 20 years and one defendant faces up to 40 years in prison. The defendants also face up to life of supervised release. The penalties for illegal use of firearms are up to ten years in prison and up to three years of supervised release for each count. Additionally, the defendants face fines up to $5 million and forfeiture of property seized in the case.
Counts 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Demarcus * * * * * * * * * * * * FRANK MORRIS * * * DUREN * * * * * * JOHNSON * * * * * * * MCCAIN * * * * ALFORD * * * * * * HICKS * * * DAVENPORT * * * * * * ATKINS *The FBI Northwest Louisiana Violent Crimes Task Force, Shreveport Police Department, Caddo Parish Sheriff’s Office, ATF and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) participated in the investigation. Assistant U.S. Attorneys Allison D. Bushnell, James G. Cowles Jr. and Tennille M. Gilreath are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
GREENVILLE – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging GENRI GONZALEZ-CARRENO, age 39, of Mexico, and ROGELIO GUTIERREZ-GALLEGOS, age 41, of Mexico with Illegal Reentry of a Deported Alien.
GONZALEZ-CARRENO and GUTIERREZ-GALLEGOS are alleged to have been previously deported twice each from the United States and reentered without permission. If convicted, they would face a maximum imprisonment term of 2 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security.
Twelve Alleged Baltimore TTG Members and Associates Indicted on Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
A federal grand jury has returned a superseding indictment charging 10 defendants with conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The superseding indictment, which was returned on June 30, 2017 and unsealed today, charges 10 alleged TTG gang members and TTG associates with conspiring to violate federal racketeering and drug trafficking laws. Four defendants are also charged with committing murder in aid of racketeering. Twelve defendants, including all 10 defendants charged in the RICO count, are also charged with conspiracy to distribute and possession with intent to distribute heroin, cocaine, and marijuana. Four defendants are charged with distribution and possession with intent to distribute heroin; two are charged with possession of a firearm in furtherance of a drug trafficking crime and with possession of a firearm by a felon.
The indictment was announced by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
According to the ten-count indictment, the defendants are members of Trained To Go (TTG), a criminal organization whose members engaged in drug distribution and acts of violence involving murder, kidnapping, assault, robbery, and witness intimidation. TTG operated in the Sandtown neighborhood of West Baltimore. Members and associates of TTG sold narcotics, including heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. The murders, assaults, and kidnappings included that of rival gang members, rival drug dealers, and individuals cooperating with law enforcement, as well as engaging in murder-for-hire schemes. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which included five Baltimore City Police Officers.
The following defendants, all of Baltimore, are charged in the indictment unsealed today:
Montana Barronette, a/k/a Tana, and Tanner, age 22;
Terrell Sivells, a/k/a Rell, age 26;
John Harrison, a/k/a Binkie, age 27;
Taurus Tillman, a/k/a Tash, age 28;
Linton Broughton, a/k/a Marty, age 24;
Dennis Pulley, a/k/a Denmo, age 30;
Roger Taylor, a/k/a Milk, age 26;
Brandon Wilson, a/k/a Ali, age 23;
Brandon Bazemore, a/k/a Man Man, age 24;
Timothy Floyd, a/k/a Tim Rod, age 27
Hisaun Chatman, age 31; and
James Woodfolk, age 20.
The indictment alleges that between May 20, 2010 and May 25, 2016, the defendants committed acts of violence, including 10 murders, and one non-fatal shooting. The violent acts were intended to further the gang’s activities, including intimidating witnesses to prevent them from cooperating with law enforcement, protecting the gang’s drug territory, and for the purpose of maintaining and increasing their position within the organization.
Ten defendants have been detained, one defendant is under supervision with pretrial services and the whereabouts of Roger Taylor are unknown.
Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI- Baltimore Field office at (410) 265-8080.
FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area. The squad utilizes drug and violent crime investigations to address gang violence and the associated homicides in Baltimore, MD. The vision of the program is to use the Enterprise Theory of Investigation (ETI), through criminal and civil provisions of RICO Act and in accordance with the FBI and Department of justice national strategies, to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities. The FBI Baltimore Violent Crimes Gangs Task Force includes FBI special agents and task force officers from the Baltimore, Baltimore County and Anne Arundel County Police Departments.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI, Baltimore City Police Department, and the ATF. The prosecution was handled by Assistant U.S. Attorneys Matt Sullivan, Christopher J. Romano and Daniel Gardener, and Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section.
Twelve Alleged Baltimore TTG Members and Associates Indicted on Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
JULY 11, 2017
FOR IMMEDIATE RELEASE
www.justice.gov/usao/md Contact ELIZABETH MORSE
at (410) 209-4855
Baltimore, Maryland –A federal grand jury has returned a superseding indictment charging ten defendants with conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The superseding indictment, which was returned on June 30, 2017 and unsealed today, charges ten alleged TTG gang members and TTG associates with conspiring to violate federal racketeering and drug trafficking laws. Four defendants are also charged with committing murder in aid of racketeering. Twelve defendants, including all ten defendants charged in the RICO count, are also charged with conspiracy to distribute and possession with intent to distribute heroin, cocaine, and marijuana. Four defendants are charged with distribution and possession with intent to distribute heroin; two are charged with possession of a firearm in furtherance of a drug trafficking crime and with possession of a firearm by a felon.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Acting Chief of the Department of Justice Organized Crime and Gang Section, Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
According to the ten-count indictment, the defendants are members of Trained To Go (TTG), a criminal organization whose members engaged in drug distribution and acts of violence involving murder, kidnapping, assault, robbery, and witness intimidation. TTG operated in the Sandtown neighborhood of West Baltimore. Members and associates of TTG sold narcotics, including heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. The murders, assaults, and kidnappings included that of rival gang members, rival drug dealers, and individuals cooperating with law enforcement, as well as engaging in murder-for-hire schemes. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which included five Baltimore City Police Officers.
The following defendants, all of Baltimore, are charged in the indictment unsealed today:
Montana Barronette, a/k/a Tana, and Tanner, age 22;
Terrell Sivells, a/k/a Rell, age 26;
John Harrison, a/k/a Binkie, age 27;
Taurus Tillman, a/k/a Tash, age 28;
Linton Broughton, a/k/a Marty, age 24;
Dennis Pulley, a/k/a Denmo, age 30;
Roger Taylor, a/k/a Milk, age 26;
Brandon Wilson, a/k/a Ali, age 23;
Brandon Bazemore, a/k/a Man Man, age 24;
Timothy Floyd, a/k/a Tim Rod, age 27
Hisaun Chatman, age 31; and
James Woodfolk, age 20.
The indictment alleges that between May 20, 2010 and May 25, 2016, the defendants committed acts of violence, including 10 murders, and one non-fatal shooting. The violent acts were intended to further the gang’s activities, including intimidating witnesses to prevent them from cooperating with law enforcement, protecting the gang’s drug territory, and for the purpose of maintaining and increasing their position within the organization.
The defendants face a maximum sentence of life in prison on the racketeering and drug conspiracies. Barronette, Bazemore, Harrison, Floyd and Taylor also face mandatory life in prison for murder in aid of racketeering, a charge which is death penalty eligible as a Federal Capital offense. Wilson also faces a maximum sentence of 10 years in prison for being a felon in possession of a firearm.
Ten defendants have been detained, one defendant is under supervision with pretrial services and the whereabouts of Roger Taylor are unknown.
Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI- Baltimore Field office at (410) 265-8080.
FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area. The squad utilizes drug and violent crime investigations to address gang violence and the associated homicides in Baltimore, MD. The vision of the program is to use the Enterprise Theory of Investigation (ETI), through criminal and civil provisions of RICO Act and in accordance with the FBI and Department of justice national strategies, to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities. The FBI Baltimore Violent Crimes Gangs Task Force includes FBI special agents and task force officers from the Baltimore, Baltimore County and Anne Arundel County Police Departments.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI, Baltimore City Police Department, and ATF for their work in the investigation. Mr. Schenning recognized Assistant U.S. Attorney Matt Sullivan for his work on this case. Mr. Schenning thanked Assistant U.S. Attorney’s Christopher J. Romano and Daniel Gardener, and Department of Justice Organized Crime and Gang Section Trial Attorney John C. Hanley, who are prosecuting the case.
Tonawanda Man Charged with Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Steven Brzezinski, 33, of Tonawanda, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of ten years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie O. Lamarque, who is handling the case, stated that according to the complaint, the defendant, who was on probation for an unrelated offense, was in possession of a tablet containing child pornography. Brzezinski has a previous conviction for endangering the welfare of a child.
The defendant made an initial appearance today before U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing scheduled for July 17, 2017 at 11:00 a.m.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Thai National Sentenced, Faces Deportation for Operating Immigration Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Nimon Naphaeng, 36, a native and citizen of Thailand, who resided in Wakefield, R.I., was sentenced Monday to 27 months in federal prison for running an immigration fraud scheme that defrauded more than 320 individuals, most of them immigrants, of at least $400,000, and perhaps as much as in excess of $518,000.
The scheme included the unauthorized filing of false asylum applications on behalf of individuals who did not request nor authorize the applications.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered a provisional amount of restitution of $400,000. The final amount of restitution will be determined subject to additional victims being identified and additional court filings over the next 90 days. According to court documents already filed by the government, restitution in this matter may exceed $518,300. During the investigation, the government seized $285,789.31 from Naphaeng. The forfeited funds will be applied toward restitution for victims of Naphaeng’s crimes.
The government and the defense recommended to the court a sentence of 18 months incarceration. The U.S. Sentencing Guideline range of imprisonment in this matter is 27-33 months.
Naphaeng, who was arrested and ordered detained on February 22, 2105, faces deportation proceedings upon completion of his prison sentence.
Nimon Naphaeng’s sentence is announced by Acting United States Attorney Stephen G. Dambruch and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
Naphaeng previously admitted to the court that from August 2014 through December 2015, for a fee of between approximately $1,500 and $2,500 per applicant, he filed false asylum applications thereby securing the right of the applicant to remain in the United States. By doing so, applicants were eligible to obtain an Employment Authorization Document (“EAD card”) and as a result, further government benefits including a social security number, driver’s license, and if otherwise qualified, financial benefits.
Naphaeng admitted to the court that to execute the scheme, he advertised on the Internet and in flyers posted in Thai restaurants around the United States that, in addition to helping with tax returns, he could obtain EAD cards for Thai nationals. Naphaeng admitted that he never told his clients that he would file asylum applications on their behalf in order to obtain the EAD card.
To execute the scheme, Naphaeng had applicants supply him with vital personal information including their name and date of birth, photographs, and a copy of the biographical page from their passport. He would then file a false asylum application without the knowledge of the applicant in order to obtain the promised documents.
Naphaeng pleaded guilty on February 6, 2017, to seven (7) counts of mail fraud and two (2) counts of visa fraud.
The case was prosecuted by Assistant U.S. Attorneys Richard W. Rose and Mary E. Rogers.
The matter was investigated by Homeland Security Investigations and the United States Attorney’s Office. Acting United States Attorney Stephen G. Dambruch thanks the U.S. Citizenship and Immigration Services - Fraud Detection National Security Asylum Office, Newark, N.J., and the Warwick, R.I., Police Department for their substantial assistance in the investigation of this matter.
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Spokane Man Sentenced to 72 Months in Federal Prison for Possessing Firearm and AmmunitionRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that William Lee Taylor, age 53, of Spokane, Washington, was sentenced for being a previously convicted felon in possession of a firearm and ammunition. Senior United States District Judge Justin L. Quackenbush sentenced Taylor to a 72-month term of imprisonment and a three-year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, members of the Spokane Police Department Patrol Anti-Crime Team (PACT) attempted to contact Taylor while investigating an unrelated matter in the East 2100 block of Cataldo Avenue in Spokane, Washington. Taylor, who is a previously convicted felon, took flight and a foot pursuit ensued. While pursuing Taylor an officer observed him reaching into his waistband. Taylor jumped a fence, fell to the ground and was apprehended. During a search of Taylor, officers discovered a .22 caliber, H. Schmidt (Ostheim), Model 21 S, 22 Magnum revolver. The revolver was loaded with five rounds of .22 caliber ammunition.
Joseph H. Harrington said, “Previously convicted felons should be aware that there are serious criminal penalties associated with possessing any firearm or ammunition. Together with the ATF, and in partnership with local law enforcement partners such as the Spokane Police Department, prosecuting firearms-related crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington.”
This case was investigated by the Spokane Police Department PACT and the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
South Texas Man Heads to Prison for Possession of MethRead the Press Release
BROWNSVILLE, Texas – A 44-year-old resident of Brownsville has been ordered to federal prison for his conviction of possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Antonio Torres pleaded guilty July 13, 2016.
Today, U.S. District Judge Andrew S. Hanen ordered Torres to serve 240 months in federal prison followed by a five-year-term of supervised release.
On or about Oct. 23, 2015, Torres attempted to enter the United States through the Gateway Port of Entry in Brownsville in a silver Nissan. During inspection of the vehicle, officers discovered 22 bundles of methamphetamine secreted in the floorboard underneath the driver’s and front passenger’s seats. The bundles of methamphetamine had a gross weight of 24 kilograms.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of U.S. Customs and Border Protection. Assistant U.S. Attorney Ana Cano is prosecuting the case.
Singleton Sentenced for Nine Pharmacy BurglariesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Elyric Nathaniel Singleton, III was sentenced today by Senior United States District Judge Granade to 97 months in federal prison for his role in nine pharmacy burglaries.
Singleton entered a guilty plea to conspiracy to possess with intent to distribute Controlled Substances. He admitted in his plea agreement that on May 21, 2016, he and another individual entered Jim's Drug Store, in Lucedale, Mississippi by breaking through the front door, and that they attempted to steal Controlled Substances. Patrol units in the area heard an audible alarm coming from the pharmacy and pulled into the parking lot. Singleton and the other individual observed the patrol units and fled the building by breaking out the drive-thru window with a crowbar. They left a box they had filled with Controlled Substances from the pharmacy on the floor of the pharmacy in their haste to flee. Both Singleton and the other individual eluded capture at that time. Officers located a 2015 Dodge Journey vehicle parked behind the drug store with a T-shirt covering the tag.
An Investigator with the Lucedale Police Department collected a blue crowbar, discarded behind the pharmacy, and obtained a search warrant for the Dodge Journey. The Investigator located identification for two individuals, Singleton and the other individual, in the Dodge. Officers also located empty Walmart bags in the Dodge, which contained Walmart price tags. The price tags were from purchases at a Walmart in Mobile, Alabama. Video of the purchases showed Singleton and the other individual making purchases of clothing from Wal-Mart. The items purchased included clothing, which matched certain clothing worn by Singleton and the other individual during the Lucedale burglary. Business records from Hertz Rental Cars show Singleton had rented the Dodge in Mobile, Alabama on May 20, 2016.
Singleton also admitted that on March 3, 2016, prior to the Mississippi burglary, he and the other individual committed pharmacy burglaries in both Opp and Elba, Alabama. On April 2, 2016, Singleton and the other individual committed pharmacy burglaries in both Auburn and Wetumpka, Alabama, and an attempted burglary in Opelika, Alabama. On April 4, 2016, three similar pharmacy burglaries were committed by Singleton and the other individual in the Mobile, Alabama and Florida panhandle area. In each burglary, Singleton and the other individual, stole or attempted to steal Controlled Substances from the pharmacies.
Singleton rented at least twelve vehicles in his name between January 1, 2016 and May 21, 2016. Singleton rented some of the vehicles in Houston, Texas, some in Chicago, Illinois, and one in Mobile, Alabama. Singleton’s cell phone showed texts to several individuals, during the period of the burglaries, notifying the text recipients there were pills available and the price of the pills. Phone data, from February 26, 2016, thru September May 20, 2016, was located on Singleton’s cell phone showing SMS messages sent and received which indicated Singleton utilized the phone to facilitate the distribution of quantities of prescription medications, which were Controlled Substances.
Acting United States Attorney Steve Butler said, “The theft of prescription drugs is a reprehensible act, particularly in the height of this ongoing opioid crisis. Not only do the stolen prescription drugs cost the pharmacy thousands of dollars to replace, but the stolen drugs also fuel the drug habits of those addicted to prescription medication. Mr. Singleton’s actions were reprehensible, and we are pleased that Judge Granade sentenced him to a lengthy stay in federal prison.”
“This investigation highlights the impact multiple agencies can have when they join forces. We will continue to work together with our local law enforcement partners and pursue those who threaten our communities through their criminal activities. The successful prosecution of this individual should put others who engage in this type of activity on notice,” stated Stephen G. Azzam, Special Agent in Charge of the DEA’s New Orleans Field Division.
The DEA in Mobile, along with the Baldwin County, Alabama Sheriff’s Office investigated this matter. The Lucedale, Mississippi Police Department; the Opp, Opelika, and Wetumpka, Alabama Police Departments; the Escambia County Florida Sheriff’s Office, and the Robertsdale, Alabama Police Department, along with the Auburn Department of Public Safety assisted in the investigation. Assistant U.S. Attorneys Deborah Griffin and Christopher Bodnar prosecuted the case.
Simpsonville Woman Sentenced to Federal Prison for Attempting to Steal Eleven Million Dollars from Internal Revenue ServiceRead the Press Release
Columbia, South Carolina –------- United States Attorney Beth Drake, announced that Stephanie Lake Meyer, age 46, of Simpsonville, South Carolina, was sentenced today to serve 36 months in federal prison for Interference with the Administration of the Internal Revenue Service, in violation of Title 18, United States Code, Section 7212. The sentence was imposed by United States District Judge Timothy M. Cain who also directed that Meyer be placed on supervised release for one year once released from prison and to pay restitution in the amount of $256,938.04.
Meyer entered a plea of guilty before Judge Cain on November 30, 2016. At that hearing the Judge was advised of the following facts. Meyer devised and executed a scheme to defraud the Internal Revenue Service (IRS). In this scheme Meyer sent approximately 45 checks totaling approximately Eleven Million Dollars to the IRS. Each of these checks were noted by Meyer as being payment of income taxes. As the checks were received they were credited to Meyer’s IRS account. The IRS then checked and determined that Meyer had no tax liability. There being no tax liability, the IRS refunded monies to Meyer to account for the “overage” that she had sent in.
After some $256,938.04 was sent to Meyer, the IRS discovered that all of the checks that Meyer had sent in were bogus and that she was running what is commonly known as a “phantom account balance scheme”. This is a scheme normally seen with bank accounts where an account holder deposits worthless checks to build up the balance and then draws it down before the bogus nature of the checks is discovered.
U.S. Attorney Drake stated that agents of the IRS Criminal Investigation Division had investigated the case and that Assistant United States Attorney David C. Stephens of the Greenville Office was in charge of the prosecution.
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Seventh Company Agrees to Plead Guilty for Fixing Prices of Electrolytic CapacitorsRead the Press Release
Nichicon Corporation will plead guilty for its role in a conspiracy to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court for the Northern District of California, Nichicon conspired with others to suppress and eliminate competition for electrolytic capacitors from as early as November 2001 until December 2011. In addition to pleading guilty, Nichicon has agreed to pay a $42 million criminal fine and cooperate with the Antitrust Division’s ongoing investigation. The plea agreement is subject to court approval.
“Including today’s charge, the Antitrust Division has now charged seven companies and ten individuals for participating in a long-running conspiracy to fix the price of a critical component in electronic devices used by millions of American consumers,” said Director of Criminal Enforcement Marvin Price of the Justice Department’s Antitrust Division. “But our investigation is not over. We are continuing to pursue the companies and executives who conspired to undermine competition in this vital industry.”
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engines and airbag systems, home appliances and office equipment.
Today’s charge results from ongoing federal antitrust investigations being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry. Anyone with information related to the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit https://www.justice.gov/atr/report-violations, or call the FBI tip line at 415-553-7400.
Schenectady Man Sentenced to 60 Months for Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Ray A. Perkins, age 30, of Schenectady, New York, was sentenced today to 60 months in prison for conspiring to distribute crack cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
Senior United States District Judge Thomas J. McAvoy also sentenced Perkins to 4 years of supervised release, to begin after his release from prison.
As part of his guilty plea in August 2016, Perkins admitted that between December 2015 and March 2016, he and a co-conspirator sold more than 100 grams of crack cocaine in the city of Schenectady.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michael Barnett.
Ring Leader of Fraudulent Oxycodone Prescription Scheme Sentenced to 14 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID THOMPSON, also known as “Super Dave,” 43, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 168 months of imprisonment, followed by three years of supervised release, for his leadership role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions.
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. The investigation revealed that THOMPSON headed the organization that obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Organization members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
Julian Cintron and Alejandrino DeJesus, also of New Haven, were key associates of THOMPSON who helped to recruit and transport runners to fill fraudulent prescriptions.
The investigation revealed that, between February 2013 and September 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills. Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.
Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid. Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.
Eleven individuals were charged as a result of the investigation.
THOMPSON has been detained since his arrest on September 10, 2015. On that date, agents searched his residence and seized approximately 12 fraudulent prescriptions and a drug ledger containing the names of “patients” and medicine codes.
On October 13, 2016, THOMPSON pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.
DeJesus and Cintron also pleaded guilty. On November 7, 2016, DeJesus was sentenced to 132 months of imprisonment and, on April 3, 2017, Cintron was sentenced to 108 months of imprisonment.
The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
Portland Man Sentenced to 3½ Years for Possessing Child PornographyRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Glenn Strout, 54, of Portland, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to 3½ years in prison to be followed by 10 years of supervised release for possessing child pornography. Strout pleaded guilty on December 1, 2016.
According to court records, in November 2015, law enforcement agents were investigating the sharing of child pornography over the internet. As part of the investigation, agents downloaded child pornography images from a computer at Strout’s residence in Portland. A search warrant was obtained for the residence and during the warrant’s execution Strout admitted downloading child pornography. A forensic analysis of devices seized under the warrant revealed numerous child pornography still images and video files.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit and the Portland Police Department. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Pastor Sentenced to Fraud and Filing False Tax ReturnRead the Press Release
St. Louis, MO – Mark Q. Stafford was sentenced to 51 months in prison on charges of mail fraud and filing a false tax return in connection with a large-scale investment fraud arising out of his company, the Stafford Financial Firm.
According to court documents, Stafford, who was also a minister at New Birth Powerplex Ministries in North St. Louis, falsely represented to clients of the Stafford Financial Firm that their funds would be placed with Quest Financial Holdings or Gain Capital Group, which Stafford sometimes misspelled “Gain Capitol Group.” In truth and in fact, Stafford did not open any accounts at Quest Financial Holdings or Gain Capital Group in his clients’ names. Instead, Stafford, in some cases, did not deposit the clients’ funds with either Quest Financial Holdings or Gain Capital Group, and in others, he deposited their funds into his own accounts at Gain Capital Group where he then used those funds for his own personal benefit. Stafford obtained approximately $1.26 million in proceeds from approximately 31 victims and caused an actual loss to those victims in the approximate amount of $1.08 million.
Stafford, 53, of Florissant, Missouri, pled guilty in March to mail fraud and filing a false tax return for the 2010 tax year that failed to disclose the income he had illegitimately taken from his investors. Stafford also admitted to failing to file any tax return for the 2011 and 2013 tax years. He appeared today for sentencing before United States District Judge Henry E. Autrey.
The case was investigated by the Internal Revenue Service, the U.S. Postal Inspection Service and the Missouri Secretary of State’s Office. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Olathe Woman Sentenced in Identity Theft SchemeRead the Press Release
KANSAS CITY, KAN. - An Olathe woman was sentenced Tuesday for a scheme to collect income tax refunds by creating companies that existed only on paper, U.S. Attorney Tom Beall said. In addition, a co-defendant in the case pleaded guilty Tuesday.
Raquel Odegbaro, 44, Olathe, Kan., was sentenced Tuesday to 75 months in federal prison and ordered to pay more than $894,000 in restitution. She had pleaded guilty to one count of conspiracy to defraud the government, one count of aggravated identity theft and one count of mail fraud.
Co-defendant Abdirizak Aden, 33, Kansas City, Mo., pleaded guilty Tuesday to one count of conspiracy to defraud the government and one count of conspiracy to commit mail fraud.
In their pleas, Odegbaro and Aden said they operated Cokeza Styles, an online business that sold hair products. They admitted creating a series of fictitious companies and filing tax returns in the names of so-called employees by providing false information about wages earned, amounts withheld and refunds due. The false tax returns directed the Internal Revenue Service to deposit refunds electronically to reloadable credit cards controlled by the conspirators. The individuals whose names appeared on the refunds never actually worked for the fictitious companies.
In addition, the conspirat ors used stolen Social Security numbers to apply for unemployment benefits from the Kansas Department of Labor. They created more than nine fictitious companies and registered them with the labor department. They filed false claims in the names of employees who purportedly were terminated without fault.
Aden is set for sentencing Oct. 2. The parties have agreed to recommend a sentence of 18 months and restitution of approximately $541,000.
Co-defendants include Alexander Limihagati, 35, Overland Park, Kan., who is set for sentencing Aug. 14, and Zia Mkubi Kajanja, 42, Overland Park, Kan., who is awaiting trial.
Beall commended the Internal Revenue Service – Criminal Investigation; the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor and Racketeering and Fraud; the Kansas Department of Children and Families; the U.S. Department of Housing and Urban Development – Office of Inspector General; the U.S. Department of Education – Office of Inspector General; the U.S. Department of Agriculture – Office of Inspector General; the Kansas Department of Labor; and Assistant U.S. Attorney Jabari Wamble for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Ohio Woman Charged with Providing Marijuana to Prison InmateRead the Press Release
ERIE, Pa. - A resident of Warren, Ohio has been indicted by a federal grand jury in Erie on a charge of providing contraband in prison, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Malinda Penezich, 47, of Warren, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, on or about November 27, 2016, Penezich provided a quantity of marijuana to an inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nashville Man Pleads Guilty to Sending Internet Threat Targeting Law Enforcement OfficersRead the Press Release
Robert Ellis Waddey, 22, of Nashville, Tenn., pleaded guilty on Friday to communicating a threat by interstate commerce, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee. Waddey was indicted by a federal grand jury in February of this year and was also charged with being an unlawful user of a controlled substance in possession of firearms.
“The U.S. Attorney’s Office will continue to review every threat and act of violence against our law enforcement officers,” said Acting U.S. Attorney Jack Smith. “If the review finds that federal law was violated, you should expect to see federal charges brought against those responsible.”
According to court documents, in September 2015, Waddey posted a photograph on Instagram which depicted a handgun pointed at a Tennessee State Trooper vehicle. The posting was captioned, “F*** them non attentive hoes” and a comment read, “Gona die lookin at his computer.” Photographs subsequently found on Waddey’s phone also depicted a uniformed police officer bleeding heavily from the head and captioned “only a dead cop is a good cop.” Another photograph depicts a uniformed police officer who appears to have been shot multiple times in the back and laying in the street, while yet another photograph depicts a screen shot of a video showing another uniformed police officer who appears to have been shot and laying on the ground bleeding. This photo is captioned, “ON TAPE: OFFICER SHOT IN THE HEAD D….”
Waddey admitted during the plea hearing, that on September 13, 2015, while sitting in his vehicle at a traffic light in South Nashville, he took a photograph of a Glock pistol in his hand, positioned in such a way where the pistol would be viewed in the same frame as a police car on a traffic stop in the distance with the blue lights activated. Waddey posted with the photograph, a slang threat to law enforcement. Various text messages sent by Waddey also conveyed threats toward law enforcement and indicate the pleasure he took in the number of targeted cop killings.
Waddey also admitted during the plea hearing that his subjective intent in making the communications was to threaten law enforcement.
According to the terms of the plea agreement, Waddey will also forfeit 13 handguns, four assault rifles and a shotgun.
Waddey faces up to five years in prison and up to a $250,000 fine when he is sentenced on October 16, 2017.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Metropolitan Nashville Police Department. Assistant U. S. Attorney Courtney Coker is prosecuting the case.
Mexico Citizen Sentenced to a Year and a Day for Being in the United States After RemovalRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Presiliano Gonzalez Berruete, 53, a citizen of Mexico, was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to one year and a day in prison to be followed by one year of supervised release for being an alien who entered the United States after having been removed and deported. He pleaded guilty on March 10, 2017.
According to court documents, on February 12, 2017, the defendant arrived at the Canada Border Services Agency in Woodstock, New Brunswick. He was refused entry to Canada and transported to the Houlton, Maine Port of Entry. A United States Custom and Border Protection (CBP) officer determined that the defendant was a citizen of Mexico who had been removed from the United States in 2010 after being convicted of a federal felony drug trafficking offense. The defendant returned to the United States without inspection at a place that was not designated for entry.
The case was investigated by CBP, Department of Homeland Security.
Mexican citizen charged with selling guns to Guatemalan citizen who was trafficking methRead the Press Release
GAINESVILLE, Ga. - Miguel Angel Rosas-Ramirez and Eduardo Estrada Medina have been arraigned on federal firearm and drug charges. A federal indictment charges that Rosas-Ramirez, a citizen of Mexico, used an unlawfully obtained concealed carry permit to purchase multiple firearms, which his alien status prohibits under federal law, and that he then sold the guns to others, including Estrada. The indictment further charges that Estrada, a citizen of Guatemala, illegally reentered the United States after being deported, purchased several weapons from Rosas-Ramirez, and trafficked in methamphetamine.
“Guns are an all-too-frequent part of the illegal drug business, and the majority of these guns arrive in drug dealers’ hands from illegal firearm trafficking as alleged in this case,” said U. S. Attorney John Horn. “This case is even more troubling because one of the alleged gun purchasers already had been deported once as a result of illegal drug trafficking, and yet found his way back to the United States and to the dangerous combination of methamphetamine and guns.”
“ATF’s involvement in securing this indictment is a prime example of the successful use of federal laws to confront, engage and eliminate criminal activity. Criminals must understand that there are serious repercussions for illegal trafficking of narcotics and illegal possession of firearms and that ATF will contribute all necessary time and effort to ensure that the individuals responsible are brought to justice,” said Assistant Special Agent in Charge John Schmidt.
According to U.S. Attorney Horn, the charges, and other information presented in court, Rosas-Ramirez falsely claimed to be a U.S. citizen in order to obtain a Georgia Weapons Carry Permit. He then allegedly used the permit to illegally purchase over 100 firearms in the past year, several of which have been recovered in the hands of illegal aliens who were themselves trafficking drugs. The indictment charges that Eduardo Estrada Medina, who was also known as Miguel Angel Donis-Gonzalez, not only possessed firearms that Rosas-Ramirez purchased, but also had 8.8 kilograms of suspected methamphetamine, over $140,000 cash, and other drug paraphernalia in his home. Medina was deported in January 2013 after he was convicted of drug trafficking. He then illegally re-entered the United States.
Medina faces charges of unlawful possession of firearms by an alien, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of drug trafficking activity, possession of an unregistered silencer, and unlawful possession of firearms by a felon. Rosas-Ramirez has been charged with unlawful possession of firearms by an alien, unlawful dealing in firearms, unlawful claim to U.S. citizenship, and 18 counts of fraudulent statements to licensed gun dealers in connection with firearms purchases.
Miguel Angel Rosas-Ramirez, 24, a Mexican citizen living in Statham, Georgia, and Eduardo Estrada Medina, a/k/a Miguel Angel Donis-Gonzalez, 28, a Guatemalan citizen in the United States living in Winder, Georgia, were arraigned before U.S. Magistrate Judge J. Clay Fuller. A federal grand jury indicted the pair on June 27, 2017.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Jennifer Keen is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Mexican Citizens Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Two Mexican citizens arrested together in Saratoga Springs, New York, were sentenced today for illegally re-entering the United States.
Arturo Garcia-Lopez, age 45, of Mexico, was sentenced today to time served (43 days in jail) for illegally re-entering the United States. Leonel Martinez-Ramirez, age 23, of Mexico, was also sentenced today to time served (43 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Garcia-Lopez admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on June 9, 2015. Garcia-Lopez had also been removed to Mexico on September 26, 2014 and June 4, 2015.
As part of his guilty plea, Martinez-Ramirez admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on March 3, 2013.
On May 30, 2017, Garcia-Lopez and Martinez-Ramirez were arrested by ICE officers in Saratoga Springs, New York.
Following their respective sentencings, Garcia-Lopez and Martinez-Ramirez were each placed into the custody of the Department of Homeland Security, for removal proceedings.
These cases were investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mexican Citizen Sentenced to 144 Months in Federal Prison for the Possession of MethamphetamineRead the Press Release
DALLAS — Alfonso Escobedo Garcia, 36, citizen of Mexico, was sentenced yesterday before U.S. District Judge Sam A. Lindsay to 144 months in federal prison following his guilty plea in October 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Garcia pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. Garcia has been in custody since the time of his arrest in March 2016.
According to plea documents in the case, on March 11, 2016, Garcia agreed to deliver 10 kilograms of methamphetamine in exchange for $115,000. Garcia was stopped by a Grand Prairie Police Officer who initiated a traffic stop for failing to come to a complete stop at a stop sign. During the traffic stop, it was determined that Mr. Garcia did not have a driver’s license and he was arrested. An inventory search of the vehicle found more than 500 grams of methamphetamine.
The Drug Enforcement Administration and the Grand Prairie Police Department investigated. Assistant U.S. Attorney George Leal prosecuted.
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Member of Violent Grape Street Crips Gang Admits Witness Intimidation as Part of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A member of the New Jersey set of the Grape Street Crips today admitted his role in a racketeering conspiracy that involved using other gang members to intimidate a witness during a state criminal trial, as well as conspiracies to distribute heroin and crack-cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.
Ahmed Singleton, a/k/a “Gangsta-Moo,” a/k/a “Gangsta,” a/k/a “Mooshie,” 28, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to three counts in the sixth superseding indictment charging him with RICO conspiracy and separate conspiracies to distribute one kilogram of heroin and 280 grams or more of crack-cocaine.
According to documents filed in this case and statements made in court:
As part of the racketeering conspiracy, Singleton admitted that he used fellow members of the N.J. Grape Street Crips to intimidate a witness against him by having those gang members sitting in the gallery of the courtroom as the witness took the stand. Singleton was facing criminal charges brought by the Essex County Prosecutor’s Office for aggravated assault, possession of a weapon for an unlawful purpose, and unlawful possession of a firearm for a shooting that occurred in April 2013. As a result of Singleton’s effort, the witness refused to testify against him and the charges were dismissed.
Afterwards, Singleton was intercepted over a wiretap bragging to a fellow gang-member: “Who you know cause a ruckus on these motherfuckin streets, come home, do whatever the fuck they want, and still be out here son?”
Singleton also admitted to participating in conspiracies to distribute one kilogram or more of heroin and 280 grams or more of crack-cocaine.
The N.J. Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the area of 6th Avenue and North 5th Street and public-housing complexes at Pennington Court, Oscar Miles, the Millard Terrell Homes, the John W. Hyatt homes and the former James Baxter Terrace complex.
Under the terms of the plea agreement, Singleton will receive a sentence of 19 years in prison and five years of supervised release. Sentencing is scheduled for Oct. 12, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation. Acting U.S. Attorney Fitzpatrick also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the Office’s Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense Counsel: Alyssa Cimino Esq., Fairfield, New Jersey
McKean-FCI Inmate Charged with Assaulting a Federal OfficerRead the Press Release
ERIE, Pa. - A federal prisoner at McKean Federal Correctional Institution in Bradford, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of assaulting a federal officer, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Rogelio Muniz-Valdez, 41, as the sole defendant.
According to the indictment presented to the court, Muniz-Valdez assaulted a federal officer who was engaged in his official duties.
The law provides for a maximum total sentence of 8 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Office of the McKean Federal Correctional Institution conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
McKean County Man Charged with Defrauding Housing Voucher ProgramRead the Press Release
ERIE, Pa. - A resident of Smethport, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of theft of government property, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Gary Herzog, 75, of Smethport, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Herzog represented himself to be property owner for a tenant in the Housing Choice Voucher program. He failed to inform the McKean County Redevelopment and Housing Authority that he transferred ownership of the property where the tenant was living back in 2007.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Housing and Urban Development, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan Woman Sentenced in Manhattan Federal Court to 3 Years in Prison for Defrauding Investors of More Than $23 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that HAENA PARK was sentenced in Manhattan federal court to three years in prison for defrauding investors of more than $23 million. PARK pled guilty on January 13, 2017, to one count of commodities fraud before U.S. District Judge Ronnie Abrams, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “Haena Park lied to investors about her expertise as a foreign exchange trader and about her returns. To conceal her scheme and to forestall redemptions, she fabricated account statements and also paid early investors with money from new investors. For defrauding her customers of more than $23 million – representing many investors’ life savings – Haena Park has been sentenced to significant prison time.”
According to the Indictment and other filings in Manhattan federal court, and statements made in today’s proceedings:
From September 2009 through June 2016, PARK raised more than $23 million from more than 40 individual investors, purportedly for the purpose of trading in a variety of securities and commodities, including equities, futures, and off-exchange foreign currency (“forex”) transactions, through the use of her firms, Phaetra Capital Management LP and Argenta Group, LLC. In connection with the scheme, PARK made a series of false and misleading representations to investors, including that PARK was an accomplished forex trading adviser earning annualized returns as high as 48.9 percent for her investors. In truth and in fact, PARK was not an accomplished forex trader, her trading was consistently unsuccessful, and the trading results emailed to investors by PARK were false and did not reflect the trading losses actually incurred by PARK. Rather, from September 2009 through June 2016, PARK lost approximately $19.5 million of the $20 million that she traded, including in commissions and fees, principally in highly leveraged futures and forex transactions.
To prevent or forestall redemptions by investors, and to continue to raise money from investors to fund her scheme, PARK generated fictitious account statements, which she sent to investors on a monthly basis. Instead of accurately reporting the trading losses PARK was suffering, the account statements indicated that the investors were making money nearly every month. To hide her trading losses, PARK used new investor funds to pay back other investors in a Ponzi-like fashion. In total, PARK distributed approximately $3 million back to investors from funds deposited by new investors.
PARK defrauded many victims – including immigrants, the elderly, and disabled individuals – of nearly the entirety of their life savings.
* * *
In addition to her prison term, PARK, 41, of New York, New York, was sentenced to three years of supervised release and a forfeiture money judgment in the amount of $23,186,860. A restitution order will be entered within 90 days.
Mr. Kim praised the work of the Department of Homeland Security, Homeland Security Investigations and the El Dorado Task Force. He also thanked the Commodity Futures Trading Commission and the Securities and Exchange Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
Man Pleads Guilty to Killing a Bald EagleRead the Press Release
NORFOLK, Va. – A Smithfield man pleaded guilty today to killing a bald eagle, first shooting and wounding the bird, then finally running over it with his all-terrain vehicle.
According to the statement of facts filed with the plea agreement, Allen H. Thacker, 62, shot the bald eagle because he was upset it had been hunting and taking fish from a pond located on his property. Court records indicate Thacker first tried to scare the bird away with a warning shot. When that did not work, Thacker shot the bird with a Remington .22 caliber rifle. According to a necropsy performed on the dead eagle, Thacker’s initial shot wounded the bird, but blunt force trauma to the bird’s skull proved fatal. Though Thacker initially denied it when interviewed by investigators, a witness reported having seen Thacker drive over the bird with his all-terrain vehicle. In Court records filed with today’s guilty plea, Thacker fully admitted to shooting the bird and running it over with the all-terrain vehicle.
Thacker pleaded guilty to unlawful taking of a bald eagle, and faces a maximum penalty of one year in prison and a $100,000 fine when sentenced on October 23. 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, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.
The case was investigated by the U.S. Fish and Wildlife Service after receiving a referral from the Virginia Department of Game and Inland Fisheries Conservation Police.
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. 2:17-mj-291.
Mallinckrodt agrees to pay record $35 million settlement for failure to report suspicious orders of pharmaceutical drugs and for recordkeeping violationsRead the Press Release
SYRACUSE, NEW YORK – Mallinckrodt LLC, a pharmaceutical manufacturer and one of the largest manufacturers of generic oxycodone, agreed to pay $35 million to settle allegations that it violated certain provisions of the Controlled Substances Act (CSA) that are subject to civil penalties, Acting United States Attorney Grant C. Jaquith announced today.
This is the first settlement of its magnitude with a manufacturer of pharmaceuticals resolving nationwide claims that the company did not meet its obligations to detect and notify DEA of suspicious orders of controlled substances such as oxycodone, the abuse of which is part of the current opioid epidemic. These suspicious order monitoring requirements exist to prevent excessive sales of controlled substances like oxycodone in Florida and elsewhere. The settlement also addressed violations in the company’s manufacturing batch records at its plant in Hobart, New York. Both sets of alleged violations impact accountability for controlled substances, and the compliance terms going forward are designed to help protect against diversion of these substances at critical links in the controlled substance supply chain.
The government alleged that Mallinckrodt failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances— orders that are unusual in their frequency, size, or other patterns. From 2008 until 2011, the United States alleged, Mallinckrodt supplied distributors, and the distributors then supplied various U.S. pharmacies and pain clinics, an increasingly excessive quantity of oxycodone pills without notifying DEA of these suspicious orders. Through its investigation, the government learned that manufacturers of pharmaceuticals offer discounts, known as “chargebacks,” based on sales to certain downstream customers. Distributors provide information on the downstream customer purchases to obtain the discount. The groundbreaking nature of the settlement involves requiring a manufacturer to utilize chargeback and similar data to monitor and report to DEA suspicious sales of its oxycodone at the next level in the supply chain, typically sales from distributors to independent and small chain pharmacy and pain clinic customers.
The government also alleged that Mallinckrodt violated record keeping requirements at its manufacturing facility in Upstate New York. Among other things, these violations created discrepancies between the actual number of tablets manufactured in a batch and the number of tablets Mallinckrodt reported on its records. Accurate reconciliation of records at the manufacturing stage is a critical first step in ensuring that controlled substances are accounted for properly through the supply chain.
In addition to the significant monetary penalty, this settlement includes a groundbreaking parallel agreement with the DEA that the company will analyze data it collects on orders from customers down the supply chain to identify suspicious sales. The resolution advances the DEA’s position that controlled substance manufacturers need to go beyond “know your customer” to using otherwise available company data to “know your customer’s customer” to protect these potentially dangerous pharmaceuticals from getting into the wrong hands. DEA’s Memorandum of Agreement with Mallinckrodt also sets forth specific procedures it will undertake to ensure the accuracy of batch records and protect loss of raw product in the manufacturing process.
By entering into these agreements, elements of which Mallinckrodt is already implementing, the company is becoming part of the solution to this public health epidemic.
Acting U.S. Attorney Jaquith said: “This settlement reflects our commitment to use all of the tools at our disposal to address the opioid problem impacting our nation. We will continue to apply the civil penalty provisions of the Controlled Substances Act to enforce regulations designed to protect the public from the diversion of oxycodone and other addictive substances.”
DEA Special Agent in Charge James Hunt stated, “Cooperation between law enforcement and opioid manufacturers is paramount to ensuring that the legitimate supply of pain medication gets into the right hands for the right reasons. The diversion of pain medication into the wrong hands, for the wrong reasons, has resulted in record overdose deaths across the nation. Through this investigation, and the resulting settlement, the building blocks have been laid to ensure industry accountability and compliance with federal regulations, to safeguard the public from the danger of diverted opioids.”
This lengthy investigation was led by DEA’s Detroit Field Division on the suspicious order issues and the New York Field Division on the manufacturing record keeping issues.
U.S. Attorneys’ Offices for the Eastern District of Michigan, the Northern District of New York along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating the settlement.
Mallinckrodt Agrees to Pay Record $35 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical Drugs and for Recordkeeping ViolationsRead the Press Release
Mallinckrodt LLC, a pharmaceutical manufacturer and one of the largest manufacturers of generic oxycodone, agreed to pay $35 million to settle allegations that it violated certain provisions of the Controlled Substances Act (CSA) that are subject to civil penalties, Attorney General Jeff Sessions of the Justice Department and Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA) announced today.
This is the first settlement of its magnitude with a manufacturer of pharmaceuticals resolving nationwide claims that the company did not meet its obligations to detect and notify DEA of suspicious orders of controlled substances such as oxycodone, the abuse of which is part of the current opioid epidemic. These suspicious order monitoring requirements exist to prevent excessive sales of controlled substances, like oxycodone in Florida and elsewhere. The settlement also addressed violations in the company’s manufacturing batch records at its plant in Hobart, New York. Both sets of alleged violations impact accountability for controlled substances, and the compliance terms going forward are designed to help protect against diversion of these substances at critical links in the controlled substance supply chain.
“In the midst of one of the worst drug abuse crises in American history, the Department of Justice has the responsibility to ensure that our drug laws are being enforced and to protect the American people,” said Attorney General Sessions. “Part of that mission is holding drug manufacturers accountable for their actions. Mallinckrodt’s actions and omissions formed a link in the chain of supply that resulted in millions of oxycodone pills being sold on the street. Thanks to the hard work of our attorneys and law enforcement, Mallinckrodt has agreed to do everything they can to help us identify suspicious orders in the future. And as a result of today's settlement, we are sending a clear message to drug companies: this Department of Justice will hold you accountable for your legal obligations and we will enforce our laws. I believe that will prevent drug abuse, prevent new addictions from starting, and ultimately save lives.”
“Manufacturers and distributors have a crucial responsibility to ensure that controlled substances do not get into the wrong hands,” said DEA Acting Administrator Chuck Rosenberg. “When they violate their legal obligations, we will hold them accountable.”
The government alleged that Mallinckrodt failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances – orders that are unusual in their frequency, size, or other patterns. From 2008 until 2011, the U.S. alleged, Mallinckrodt supplied distributors, and the distributors then supplied various U.S. pharmacies and pain clinics, an increasingly excessive quantity of oxycodone pills without notifying DEA of these suspicious orders. Through its investigation, the government learned that manufacturers of pharmaceuticals offer discounts, known as “chargebacks,” based on sales to certain downstream customers. Distributors provide information on the downstream customer purchases to obtain the discount. The groundbreaking nature of the settlement involves requiring a manufacturer to utilize chargeback and similar data to monitor and report to DEA suspicious sales of its oxycodone at the next level in the supply chain, typically sales from distributors to independent and small chain pharmacy and pain clinic customers.
The government also alleged that Mallinckrodt violated record keeping requirements at its manufacturing facility in upstate New York. Among other things, these violations created discrepancies between the actual number of tablets manufactured in a batch and the number of tablets Mallinckrodt reported on its records. Accurate reconciliation of records at the manufacturing stage is a critical first step in ensuring that controlled substances are accounted for properly through the supply chain.
In addition to the significant monetary penalty, this settlement includes a groundbreaking parallel agreement with the DEA, as a result of which the company will analyze data it collects on orders from customers down the supply chain to identify suspicious sales. The resolution advances the DEA’s position that controlled substance manufacturers need to go beyond “know your customer” to use otherwise available company data to “know your customer’s customer” to protect these potentially dangerous pharmaceuticals from getting into the wrong hands. DEA’s Memorandum of Agreement with Mallinckrodt also sets forth specific procedures it will undertake to ensure the accuracy of batch records and protect loss of raw product in the manufacturing process.
By entering into these agreements, elements of which Mallinckrodt is already implementing, the company is becoming part of the solution to this public health epidemic.
This lengthy investigation was led by DEA’s Detroit Field Division on the suspicious order issues and the New York Field Division on the manufacturing record keeping issues.
U.S. Attorneys’ Offices for the Eastern District of Michigan and the Northern District of New York, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating the settlement.
Mallinckrodt Agrees to Pay Record $35 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical Drugs and for Recordkeeping ViolationsRead the Press Release
DETROIT – Mallinckrodt LLC, a pharmaceutical manufacturer and one of the largest manufacturers of generic oxycodone, agreed to pay $35 million to settle allegations that it violated certain provisions of the Controlled Substances Act (CSA) that are subject to civil penalties, Acting United States Attorney Daniel Lemisch and Tim Plancon, Special Agent in Charge, Drug Enforcement Administration, Detroit Division (DEA) announced today.
This is the first settlement of its magnitude with a manufacturer of pharmaceuticals resolving nationwide claims that the company did not meet its obligations to detect and notify DEA of suspicious orders of controlled substances such as oxycodone, the abuse of which is part of the current opioid epidemic. These suspicious order monitoring requirements exist to prevent excessive sales of controlled substances, like oxycodone in Florida and elsewhere. The settlement also addressed violations in the company’s manufacturing batch records at its plant in Hobart, New York. Both sets of alleged violations impact accountability for controlled substances, and the compliance terms going forward are designed to help protect against diversion of these substances at critical links in the controlled substance supply chain.
Acting United States Attorney Lemisch stated, “We're grateful for the work of the DEA who have invested countless hours investigating this first of its kind case. This settlement continues our fight against the opioid epidemic by requiring all in the supply chain not to participate in suspicious orders: physicians, pharmacies, distributors and now - manufacturers.”
DEA Special Agent in Charge Plancon stated, “This settlement reflects DEA’s commitment to the public health and safety by holding DEA registered manufacturers accountable and requiring them to do their due diligence by knowing the downstream customer. This investigation let’s all DEA registrants know that they need to use all of their resources and tools to detect and report suspicious orders.”
The government alleged that Mallinckrodt failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances – orders that are unusual in their frequency, size, or other patterns. From 2008 until 2011, the U.S. alleged, Mallinckrodt supplied distributors, and the distributors then supplied various U.S. pharmacies and pain clinics, an increasingly excessive quantity of oxycodone pills without notifying DEA of these suspicious orders. Through its investigation, the government learned that manufacturers of pharmaceuticals offer discounts, known as “chargebacks,” based on sales to certain downstream customers. Distributors provide information on the downstream customer purchases to obtain the discount. The groundbreaking nature of the settlement involves requiring a manufacturer to utilize chargeback and similar data to monitor and report to DEA suspicious sales of its oxycodone at the next level in the supply chain, typically sales from distributors to independent and small chain pharmacy and pain clinic customers.
The government also alleged that Mallinckrodt violated record keeping requirements at its manufacturing facility in upstate New York. Among other things, these violations created discrepancies between the actual number of tablets manufactured in a batch and the number of tablets Mallinckrodt reported on its records. Accurate reconciliation of records at the manufacturing stage is a critical first step in ensuring that controlled substances are accounted for properly through the supply chain.
In addition to the significant monetary penalty, this settlement includes a groundbreaking parallel agreement with the DEA, as a result of which the company will analyze data it collects on orders from customers down the supply chain to identify suspicious sales. The resolution advances the DEA’s position that controlled substance manufacturers need to go beyond “know your customer” to use otherwise available company data to “know your customer’s customer” to protect these potentially dangerous pharmaceuticals from getting into the wrong hands. DEA’s Memorandum of Agreement with Mallinckrodt also sets forth specific procedures it will undertake to ensure the accuracy of batch records and protect loss of raw product in the manufacturing process.
By entering into these agreements, elements of which Mallinckrodt is already implementing, the company is becoming part of the solution to this public health epidemic.
This lengthy investigation was led by DEA’s Detroit Field Division on the suspicious order issues and the New York Field Division on the manufacturing record keeping issues.
U.S. Attorneys’ Offices for the Eastern District of Michigan and the Northern District of New York, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating the settlement.
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Madison Man Sentenced to 16 Months for Conspiring to Defraud the VARead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that David B. Watson, Sr., 56, of Madison, Maine was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to 16 months in prison and three years of supervised release for conspiring to defraud the U.S. Department of Veterans Affairs (VA). Watson was also ordered to pay about $48,405 in restitution.
According to court records, the defendant conspired with his daughter-in-law to illegally obtain about $48,405 in VA compensation benefits for her. Watson submitted documents to the VA on her behalf, falsely claiming she had suffered from mental disabilities that were connected to her service in the U.S. Army and told her how she should falsely describe her mental condition to VA doctors.
The investigation was conducted by the Criminal Investigation Division of the VA Office of the Inspector General.
Lockland Company Pleads Guilty to Failing to Report Large Cash Transactions and Trucking Safety ViolationsRead the Press Release
CINCINNATI – Enson Trading LLC, which does business as Eternal Food Service, pleaded guilty in U.S. District Court to failing to file required IRS forms for cash transactions exceeding $10,000, and to violating Federal Motor Carrier Safety regulations.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Thomas J. Ullom, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, and Angela Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Field Office, announced the pleas entered today before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, Enson is a Lockland-based wholesale food storage facility and distributor to primarily Asian restaurants in Ohio and nine other states. Many of the company’s customers pay in cash. Between October 2010 and June 2012, the company failed to file a federal Form 8300 for 41 cash transactions totaling $564,202.23. Federal laws and regulations require every person engaged in a nonfinancial trade or business that receives cash in excess of $10,000 to file the form within 15 days of receipt of the cash.
The company also pleaded guilty to conspiracy to continue operation after imposition of an out-of-service order from the Federal Motor Carrier Safety Administration (FMCSA). In June 2010, FMCSA conducted a compliance review of the trucks the company used to distribute its products in Ohio and out of state and issued the company an unsatisfactory safety rating based upon critical violations of several regulations. FMCSA gave the company 60 days to address the violations or they would receive an out-of-service order. Eight days before the company’s trucking operations were to be put out of service, the company registered and incorporated under a different name. The company did that five more times between 2010 and 2014, using the names Heng Hua, National Trucking, Eternal Trading Corporation, Aspiron and FC Logistics.
Terms of the plea agreement call for the company to serve three years of probation, pay a $525,000 fine, and forfeit $215,012.55. Enson Trading, LLC manager Qing Xia Zheng entered the plea on behalf of the company.
U.S. Attorney Glassman commended the investigation of this case by the IRS, the U.S. Department of Transportation Office of Inspector General and the FBI, and District Criminal Chief Kenneth L. Parker, who is representing the United States in this case.