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22 August 2017
Fort Smith, Arkansas Man Pleads Guilty to Interstate Transportation of Stolen PropertyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that THOMAS CHARLES BARDRICK, age 20, of Fort Smith, Arkansas, pled guilty to INTERSTATE TRANSPORTATION OF STOLEN PROPERTY, in violation of Title 18, United States Code, Sections 2314 and 2, punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about April 15, 2015, in the Eastern District of Oklahoma, the defendant, THOMAS CHARLES BARDRICK, did unlawfully transport in interstate commerce stolen goods, wares and merchandise, that is, six (6) zero turn mowers, of the value of $5,000.00 or more knowing the same to have been stolen.
The charge arose from an investigation by the Sallisaw Police Department, the Sequoyah County Sheriff’s Office, and the Oklahoma State Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Former Winnebago Tribal Council Officer Sentenced for Theft from an Indian Gaming EstablishmentRead the Press Release
Acting United States Attorney Robert C. Stuart announced today that on August 21, 2017, Chief United States District Court Judge Laurie Smith Camp sentenced Louis Houghton, age 70, of Winnebago, Nebraska for his conviction for theft from an Indian gaming establishment. Houghton was sentenced to five years of probation and 150 hours of community service. He was further ordered to pay restitution in the amount of $36,500.
Houghton was a member of the tribal council of the Winnebago Tribe of Nebraska and served in an officer capacity as the council’s Secretary. Beginning in 2013 and continuing through September of 2014, began taking unauthorized disbursements from the WinnaVegas Casino and Resort in the total amount of $36,500. These disbursements were in the form of gift certificates which he did not pay for and deposits to a re-loadable debit card. The disbursements were in addition to the salary received from the Winnebago Tribe as a tribal council member. However, the disbursements were not paid through the payroll department of the Winnebago Tribe and were never authorized at a regular or special meeting of the tribal council. Further, the disbursements were concealed from the Winnebago Gaming Commission which oversaw the operations of the casino and was required to approve financial transactions of the casino.
This case was investigated by the Federal Bureau of Investigation.
Former Fort Worth High School Teacher Sentenced on Child Pornography ChargeRead the Press Release
FORT WORTH, Texas — Matthew Anthony Keller, 25, of Watauga, Texas, was sentenced this morning before Senior U.S. District Judge Terry R. Means to 240 months in federal prison on a federal child pornography charge, announced U.S. Attorney John Parker of the Northern District of Texas.
Keller, who, according to police reports, taught at Southwest High School in Fort Worth, Texas, pleaded guilty to one count of production of child pornography in October 2016. He has been in custody since the time of his arrest in July 2016.
“I’m always deeply disturbed by those who produce child pornography, said U.S. Attorney Parker, but it’s particularly appalling when the child is victimized by a teacher, someone in a trusted position.”
According to documents filed in the case, on August 6, 2014, Keller persuaded a minor victim to produce and send a nude, sexually explicit video to him. Keller met the minor victim, who first advised him he was 18-years-old and then later admitted he was 13-years-old, on a website. Two years later, the parents of the then 15-year-old male (MV1) notified a police department in Macomb County, Michigan, that they had discovered a relationship between their son and Keller. The parent advised that Keller was a 24-year-old high school teacher who exchanged nude photos and videos with MV1 for approximately 18 months.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Tarrant County District Attorney’s Office, the Macomb County Sheriff’s Office, and the Eastpointe, Michigan Police Department investigated. Assistant U.S. Attorney A. Saleem prosecuted.
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Former Covington Resident Sentenced to Jail for Conspiracy to Commit Wire FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that a former North Shore resident who had left the country last year before being charged with conspiracy to commit wire fraud and arrested in early 2017, was sentenced today.
BILAL AHMED, a/k/a “Bill,” age 42, formerly of Covington, devised a scheme to defraud others of money and property. As part of this scheme, AHMED posed as a wealthy individual who stood to receive millions of dollars from his native country of Pakistan. During the conspiracy, AHMED presented false documents, including a fraudulent $100,000,000 loan document to others. As a result of AHMED’s false and fraudulent representations, he caused at least two wirings to be made in interstate commerce.
According to court records, AHMED agreed as part of his guilty plea that he left the United States for Canada in June 2016, approximately two months after the wirings took place. AHMED was arrested in January 2017, in the Western District of Michigan, and then indicted in February 2017, in the Eastern District of Louisiana. AHMED was then detained pending his guilty plea and sentencing.
United States District Judge Jay Zainey sentenced AHMED to a total of thirteen months’ imprisonment, to be followed by three years of supervised release. Following completion of his sentence, AHMED will be surrendered to the custody of the U.S. Immigrations and Customs Enforcement for immigration proceedings. Judge Zainey also ordered that AHMED pay $81,569 in restitution to the victim in the case.
U.S. Attorney Evans commended Special Agents of Homeland Security Investigations and St. Tammany Parish Sheriff’s Deputies, who investigated the case. Assistant U.S. Attorney Hayden Brockett was in charge of the prosecution.
Former Cashier for U.S. Navy Morale Welfare and Recreation Center in Japan Pleads Guilty to Theft of Nearly $100,000Read the Press Release
WASHINGTON – A Filipino woman who fled from Japan to the United States before being arrested in Overland Park, Kansas has pleaded guilty to stealing the equivalent of nearly $100,000 at a U.S. Naval base in Japan.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, and Tom Larson, Acting United States Attorney for the Western District of Missouri, made the announcement.
Cynthia Lopez Creseni pleaded guilty on Friday, Aug. 18, 2017, to theft of public money for stealing the equivalent of $99,068 from the Morale Welfare and Recreation Center (MWR) at the Yokosuka Naval Base in Japan, in violation of 18 U.S.C. § 641.
According to admissions made in connection with the plea, the Naval Criminal Investigative Service (NCIS) was notified about the theft of approximately $85,500 and ¥ 1,620,000 (aggregate value of $99,068) from a safe assigned to Creseni at the MWR cash cage. Creseni, who had worked at the base in various positions since 2000, served as the lead cashier of the game/slot room at the time of the theft.
Creseni officially reported the funds missing from her assigned safe after returning from a vacation to the United States in February 2015. Creseni, who denied taking the money, was placed on administrative leave pending the outcome of an investigation.
Interviews of Creseni’s co-workers revealed that she might have had some financial problems. When investigators attempted to interview Creseni at her residence in Japan, they learned that she had vacated her home, sold it and moved to the Philippines. Efforts were made to locate Creseni in the Philippines, but were unsuccessful. Agents learned that Creseni entered the United States on July 15, 2015.
On Jan. 24, 2017, Creseni was located in Overland Park, Kansas and arrested by federal agents for immigration violations for overstaying her visa.
Sentencing is scheduled for Jan. 4, 2018.
This case is being investigated by the Naval Criminal Investigative Service with assistance from Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Special Assistant U.S. Attorney Kim Moore of the U.S. Attorney’s Office of the Western District of Missouri are prosecuting the case.
Florence Man Sentenced in Federal Court on Fraud ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Urban Oshea, II, age 48, of Florence, South Carolina, was sentenced in federal court in Florence, for Conspiracy to Manufacture and Pass Counterfeit Securities, a violation of Title 18, United States Code, Section 371. United States District Judge Bryan Harwell sentenced Oshea to 15 months’ imprisonment followed by 3 years supervised release. Oshea was also ordered to pay over $31,000 in restitution to victims of the fraud.
The evidence presented the guilty plea hearing established that during the period from August 2015 through January of 2016, Oshea and others were involved in a conspiracy to manufacture and pass counterfeit securities (checks) of organizations.
The co-conspirators would make counterfeit checks using genuine bank account and routing numbers they obtained from checks they stole out of mailboxes in Horry and Georgetown Counties.
The defendant would then use fraudulent driver's licenses bearing his photograph but in other persons' names which matched the names on the counterfeit checks, to pass these counterfeit checks at various businesses.
The defendant would use the checks to purchase merchandise at one store, then he would go to another store in the same chain and exchange the merchandise for cash.
The case was investigated by officers of the Horry County Police Department and agents of the U.S. Postal Inspection Service. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
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E-Recycling Executive Sentenced to 21 Months Federal CustodyRead the Press Release
Assistant U.S. Attorneys Rebecca S. Kanter (619) 546-7304 and C. Seth Askins (619) 546-6692
NEWS RELEASE SUMMARY – August 21, 2017
SAN DIEGO – Robert Erie, the former Chief Executive Officer and co-founder of E-World Recyclers, LLC, was sentenced today to 21 months custody for trafficking in counterfeit goods. His conviction relates to a contract he obtained to destroy counterfeit merchandise seized by the federal government. Instead of destroying or “e-recycling” the counterfeit goods as he was required to do (and as he certified), Erie instead diverted the counterfeit merchandise and trafficked in it for commercial advantage.
E-World Recyclers was an electronic recycling service company which operated out of Vista, California. In late 2009, E-World received a sub-contract to perform electronic recycling services related to counterfeit goods seized by Department of Homeland Security (“DHS”), Bureau of Customs and Border Protection (“CBP”). Between approximately November 4, 2009, and December 18, 2009, E-World received approximately 38 shipments containing approximately 1,888 pallets of counterfeit goods seized by CBP.
Erie instructed E-World employees to sign documents to submit to government agencies certifying the destruction of CBP-seized counterfeit goods. In fact, Erie knew that the goods had not all been destroyed. Instead, on approximately December 24, 2009, Erie rented a personal storage unit in San Marcos, California, and transported some of the CBP-seized counterfeit goods to his personal storage unit, including watches bearing counterfeit marks related to Paneri, Cartier, Romain Jerome, Patek Philippe, Audemars Piguet, Rolex, Chanel, Bebe, Brietling, Omega Graham, Corum, Gucci, Ed Hardy, Coach and Dolce Gabbana, and headphones bearing counterfeit marks related to Bose. Erie maintained the storage unit through September 8, 2011, when federal agents executed a court-authorized search warrant and seized, among other things, (1) 2,275 counterfeit watches bearing marks registered to Chanel, Gucci, Coach, Ed Hardy and other companies; (2) 524 counterfeit pens bearing mark(s) registered to Montblanc; and (3) 12 counterfeit in-ear headphones bearing mark(s) registered to Bose.
In the meantime, after removing the counterfeit goods from E-World but prior to federal agents search and seizure, Erie trafficked in the counterfeit merchandise for his own commercial advantage. For example, on approximately January 25, 2010, for Eroe sent at least four separate shipments consisting of multiple boxes of CBP-seized counterfeit watches to business associates who were affiliated with a glass company in Ohio to whom E-World owed money.
Judge Anthony J. Battaglia imposed a two-level upward adjustment for obstruction of justice based on Erie’s alteration of e-mails in an attempt to thwart the prosecution. Specifically, the Court found that in approximately February 2010, Erie altered e-mail correspondence from September 2009 between himself and a Cycle Chem representative, which defendant then sent in approximately August 2011, to his then criminal defense attorney. The defendant’s criminal defense attorney then sent the altered e-mail correspondence to the U.S. Attorney’s Office in order to dissuade the U.S. Attorney’s Office from seeking criminal charges against defendant for his unlawful trafficking in CBP-seized counterfeit merchandise. The alteration of the e-mails had the effect of falsely suggesting that the contractor from whom E-World had obtained the subcontract had giving Erie permission to redistribute and/or remarket the counterfeit watches, which it had not.
Amanda Thandi, Special Agent in Charge, U.S. Department of Homeland Security, Office of Inspector General, San Diego Field Office, said, “The collaborative investigation effort between DHS OIG and HSI played a pivotal role in the successful prosecution of this case. The DHS OIG’s vigilant oversight of government contractors like E-World Recyclers is imperative to safeguard taxpayer dollars.”
“Bob Erie was trusted to do one thing with the counterfeit goods illegally being imported at the land and sea borders: Keep it out of the stream of commerce by assuring its destruction or recycling,” said Acting U.S. Attorney Alana W. Robinson. “Instead, he used the seized counterfeit goods to advance his own personal agenda and commercial advantage, to the detriment of the trademark holders, the United States, and ultimately his own company. This crime was especially egregious because of Erie’s attempts to obstruct justice by falsifying e-mails, which were sent to the United States Attorney’s Office in an effort to avoid prosecution. The United States will continue to vigorously enforce intellectual property crimes and protect the property interests of American companies against abusers like Erie.”
He pleaded guilty on February 23, 2017, and admitted that the retail value of the infringed items trafficked by defendant was at least $1,450,000. In addition to the sentence of 21 months’ custody, Erie was ordered to pay a $10,000 fine. Erie, who was released on bond during the pendency of the proceedings, was ordered to surrender on September 5, 2017 to the Bureau of Prisons.
Erie was previously convicted and sentenced in June 2013 to five years’ probation for being a felon in possession of a firearm (11cr5796-AJB.)
DEFENDANTS Case Number 14cr3660-AJB
Robert Erie Age: 53 Carlsbad, CA
SUMMARY OF CHARGES
Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCIES
Department of Homeland Security – Office of Inspector General
Homeland Security Investigations, Intellectual Property & Trade Investigations
Drug Trafficker Who Fled During Trial CapturedRead the Press Release
Assistant U. S. Attorney P. Kevin Mokhtari (619) 546-8402
NEWS RELEASE SUMMARY – August 22, 2017
SAN DIEGO – A man who fled in the middle of his three-day cocaine trafficking trial was arrested yesterday after being a fugitive for two months. Itai Enriquez-Rodriguez, 21, was arrested after being located in Gilroy near San Jose, California.
On July 7, 2016, Enriquez-Rodriguez was arrested at the Otay Mesa, California Port of Entry after being caught with three kilograms of cocaine in his vehicle. Shortly after his arrest, Enriquez-Rodriguez was released on bond. Following an investigation by Department of Homeland Security (DHS), Homeland Security Investigations (HSI), Enriquez-Rodriguez was indicted on conspiracy to import cocaine and importation of cocaine charges. Enriquez-Rodriguez persisted in his not-guilty plea and went to trial.
On June 21, 2017, Enriquez-Rodriguez’s trial began. At the end of the first day of trial, the Honorable Marilyn L. Huff ordered Enriquez-Rodriguez to return the following morning. The next morning, however, Enriquez-Rodriguez failed to appear. The parties recessed that morning to attempt to locate Enriquez-Rodriguez. During that recess, HSI agents discovered a Facebook post by Enriquez-Rodriguez’s brother depicting him and his brother, defendant Enriquez-Rodriguez. The brother’s Facebook account also included a photo of a man with a handgun with the caption, “He who laughs last, laughs the best. And I’m in no hurry.” Both of the images were posted to Facebook the same morning Enriquez-Rodriguez fled.
Finding that Enriquez-Rodriguez had voluntarily absented himself from trial, Judge Huff ruled the trial could continue in absentia. Trial concluded on June 23, 2017 with the jury finding Enriquez-Rodriguez guilty of conspiracy to import cocaine and importation of cocaine.
Over the next two months, the U.S. Marshals Service and HSI followed leads to help identify fugitive Enriquez-Rodriguez’s whereabouts. On August 21, 2017, the Marshals Service obtained information that Enriquez-Rodriguez was hiding out in his hometown of Gilroy, California. Following that lead, the U.S. Marshals Service arrested Enriquez-Rodriguez in a vehicle outside his girlfriend’s residence.
On August 18, 2017, Enriquez-Rodriguez was indicted by a federal grand jury on bail jumping charges.
Enriquez-Rodriguez’s sentencing on the cocaine trafficking charges is scheduled for October 23, 2017 at 9:00 am before the Honorable Marilyn L. Huff.
DEFENDANT Case Numbers 17cr0059-H, 17cr2379-H
Itai Enriquez-Rodriguez Age: 21 Gilroy, CA
SUMMARY OF CHARGES
Conspiracy to Import Cocaine; Importation of Cocaine – Title 18, U.S.C., Sections 952, 960, 963
Maximum penalty: 20 years’ imprisonment and $1,000,000 fine
Bail Jumping – Title 18, U.S.C., Section 3146.
Maximum penalty: 10 years’ imprisonment and $250,000 fine
AGENCIES
Homeland Security Investigations
United States Marshals Service*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Court Orders Defendant to Repay $66,938.00 to the IRS for Filing Fraudulent Tax ReturnsRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Senior United States District Court Judge, William H. Steele, sentenced Destina Yetta Parker aka Desinta Yetta Parker on August 22, 2017 to serve a term of five (5) years on probation. The defendant pled guilty on April 25, 2017 to the charges of Aiding and Assisting the Preparation of a False or Fraudulent Return Statement in violation of 26 USC § 7206(2) and Willfully Failing to File a Tax Return in violation of 26 USC § 7203. Judge Steele ordered the defendant to pay restitution in the amount of $66,928.00, as a condition of her probation.
The investigation revealed that the defendant, who is a registered tax preparer, electronically filed seventeen income tax returns with unverifiable Household Help (HSH) income for the tax years 2011 and 2012. Most of the returns reported just enough unverifiable HSH income to qualify for the maximum amount of Earned Income Credit and thus receive a larger income tax refund. Special Agents of the Internal Revenue Service learned from the defendant’s clients that many of the clients were unaware of HSH income. Some of the clients admitted that they never performed the work indicated on their tax returns. The defendant failed to file a personal income tax return for the tax year 2013.
The case was investigated by the Department of the Treasury, Internal Revenue Service (IRS), Criminal Investigation Division. The case was prosecuted by Assistant United States Attorneys Lawrence J. Bullard and Michael D. Anderson for the United States Attorney’s Office for the Southern District of Alabama.
Complaint Filed Against Indian Brotherhood Gang Members for Methamphetamine ConspiracyRead the Press Release
Today, Acting United States Attorney Loretta F. Radford announced that a one-count Federal Complaint was filed against Kody Bill Clark, a/k/a “Seminole,” from Mulhall, Oklahoma, age 34, Daniel Wayne Strunk, from Tulsa, Oklahoma, age 43, and Stephanie Renee Tyson, from Tulsa, Oklahoma, age 30, charging Conspiracy to Possess with the Intent to Distribute Methamphetamine.
According to documents filed in the case, Strunk and Tyson travelled to Clark’s residence in Mulhall, Oklahoma, on July 11, 2017, to obtain approximately one-quarter pound of methamphetamine from Clark.
On their return to Tulsa, Strunk and Tyson were stopped by the Oklahoma Highway Patrol near Sand Springs, Oklahoma. A narcotics detecting K-9 officer was deployed and gave a positive alert that indicated the presence of illegal narcotics, and a search of the vehicle resulted in the seizure of 175.9 grams of methamphetamine.
The arrest of Clark, Strunk, and Tyson is part of an ongoing criminal investigation of the Indian Brotherhood Gang, and its criminal activities, in the Northern District of Oklahoma, Western District of Oklahoma, and Eastern District of Oklahoma.
The Drug Enforcement Administration (DEA) and Bureau of Indian Affairs (BIA) are leading this investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal’s Service (USMS), and the Oklahoma Highway Patrol, and Task Force Officers assigned to the DEA-HIDTA. Assistant United States Attorney Robert T. Raley will prosecute the case.
Carrollton Man Sentenced to 204 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A 42-year-old illegal alien from Honduras, Elmer Franky Ortiz, who was living in Carrollton, Texas, pleaded guilty in April 2017 to one count of receipt of a visual depiction of a minor engaged in sexually explicit conduct. He was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 204 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, the Garland Police Department was alerted that Ortiz had received a video of a minor female between the ages of four and six years old engaging in sexually explicit conduct. An investigation conducted by Garland Police, Carrollton Police, and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) found that Ortiz possessed 141 videos of child pornography on his home computer and that he had shared some of these videos on the internet with others.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The ICE HSI, Garland Police Department, and Carrollton Police Department investigated. Assistant U.S. Attorney Shane Read prosecuted.
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California Woman Sentenced to 7 Years in Prison on International Federal Fraud ChargesRead the Press Release
Gulfport, Miss – Susan Ann Villeneuve, 62, of Escalon, California, was sentenced today on international fraud charges that started in 2014 when sixteen individuals were arrested in South Africa, Canada, California, Wisconsin, New York and Indiana, pursuant to an eight-count federal indictment filed in the Southern District of Mississippi, announced Acting U.S. Attorney Harold Brittain and Raymond Parmer, Jr., Special Agent in Charge of Immigration Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New Orleans.
Villeneuve was sentenced by U.S. District Judge Sul Ozerden to a total of 84 months in federal prison for conspiracy to commit mail and wire fraud and aggravated identity theft. She was also ordered to pay $32,857 in restitution for losses to 10 of her counterfeit check victims. When released from prison, she will serve three years of supervised release. She previously pled guilty to the charges.
The case involved a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud included romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.
The investigation was initiated in October 2011, by HSI agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars. Villeneuve was responsible for sending out over $26 million in counterfeit checks to victims across the country by USPS, UPS and FedEx.
If you believe you were the victim of criminal fraud committed by any of the defendants, you may contact the government at the email address [email protected].
The investigation in this case was led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The case in Mississippi was prosecuted by Assistant U.S. Attorney Annette Williams, Trial Attorney Conor Mulroe with the DOJ Organized Crime and Gang Section, and Peter Roman, Senior Counsel for the Computer Crimes Intellectual Property Section.
Burlington County, New Jersey, Pharmacist Convicted of Illegally Distributing Opioids from ‘Pill Mills’Read the Press Release
CAMDEN, N.J. – A Medford, New Jersey, pharmacist was convicted today for his role in illegally distributing and dispensing oxycodone from two pharmacies located in Medford, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael Ludwikowski, 45, the owner of Olde Medford Pharmacy and Medford Family Pharmacy, was convicted of six counts in an indictment charging him with illegally distributing and dispensing oxycodone, a Schedule II controlled substance, and maintaining a drug-involved premises. He was convicted following a five-week trial before U.S. District Judge Jerome B. Simandle in Camden federal court. The jury deliberated for three days before returning the guilty verdict.
The trial follows the guilty plea of co-defendant David M. Goldfield, also a pharmacist (who Ludwikowski had hired to work at Olde Medford Pharmacy), to engaging in a conspiracy to dispense controlled substances with Ludwikowski, and the pleas of Dontees Jones, Matthew Lawson, and Patrick Clark, all long-term customers of Ludwikowski, and Krystal Wood, a former employee of Olde Medford Pharmacy.
“For the people of New Jersey and across the United States, the suffering, loss of life, and enormous financial losses attributed to the opioid epidemic are all too real,” Acting U.S. Attorney Fitzpatrick said. “In the midst of this crisis, Ludwikowski – a pharmacist who had a duty to ensure that prescription opiates were dispensed only for legitimate medical purposes – knowingly sold them to customers with fake prescriptions or to individuals whom he knew to be addicts. He didn’t just fail in his professional responsibilities: he actively contributed to the opioid crisis, and as the jury decided today, broke federal laws in the process.”
“Opioid and prescription drug abuse have been spreading throughout our country. We are determined to investigate and prosecute those who unlawfully distribute oxycodone within our community,” Special Agent in Charge Timothy Gallagher of the FBI’s Newark office said. “Today’s conviction highlights the commitment of the FBI and our partners to combat the growth of this epidemic that continues to impact our society.”
Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division said, “The current opioid epidemic is widespread and is tearing families apart. A pharmacist has a responsibility to play a role in curtailing this problem. In this case, the defendant chose to ignore that responsibility and instead was more interested in profiting on people’s addictions.”
According to documents filed in this case and statements made in court:
From March 2008 through August 2013, Ludwikowski, the pharmacist-in-charge of Olde Medford Pharmacy, and his employee, Goldfield, knowingly distributed and dispensed oxycodone and other controlled substances to individuals, including addicts, who presented phony prescriptions.
Ludwikowski ordered large quantities of oxycodone from a national distributor. The distributor established thresholds for the quantity of controlled substances that it supplied to certain pharmacies. Ludwikowski and his pharmacies received large quantities of 30mg oxycodone pills, even though he knew the painkiller was not going to be used for legitimate medical reasons.
In some instances, the customers presented fraudulent prescriptions for a non-narcotic substance that had been “washed,” or “bleached,” through a chemical process that removed the original writing. The customers then rewrote the prescriptions for their drug of choice, oxycodone. Ludwikowski and Goldfield also ignored concerns raised by an employee who pointed out an obviously altered prescription.
Customers who used the fraudulent prescriptions generally paid in cash and provided gifts to Ludwikowski and Goldfield. In some instances, these customers filled fraudulent prescriptions for oxycodone multiple times a week.
In furtherance of the scheme, Ludwikowski and another pharmacist he employed – referred to in the indictment as “Pharmacist 3” – reached an agreement with a physician –referred to in the indictment as “Doctor 1” – to “steer” Doctor 1’s patients to Ludwikowski’s pharmacies. In a text message from Pharmacist 3 to Ludwikowski on Jan. 11, 2013, Pharmacist 3 wrote: “I talked to [Doctor 1] and he is going to direct all of his patients to us he is the pain doc in Cherry Hill.”
Each of the five substantive counts of illegal distribution of oxycodone carries a maximum potential penalty of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The count of maintaining a drug-involved premises carries a maximum penalty of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Gallagher; the DEA New Jersey Division, under the direction of Special Agent in Charge Kotowski; the Medford Police Department under the direction of Chief Richard J. Meder; the Moorestown Police Department under the direction of Chief Lee R. Lieber; the Florence Police Department under the direction of Chief John Bunce; and the Lumberton Police Department under the direction of Chief Tony Diloreto, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz and Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden, as well as Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
Bridgeport Man Sentenced to More Than 6 Years in Federal Prison for Sex Trafficking MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that BRANDON WILLIAMS, also known as “14K,” 37, of Bridgeport, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 74 months of imprisonment, followed by four years of supervised release, for sex trafficking a minor girl.
According to court documents and statements made in court, in July and August 2015, WILLIAMS caused a minor female, who he knew was under the age of 18, to engage in commercial sex acts. The minor victim’s sexual services were advertised on the internet websites Backpage and Cityvibe, and WILLIAMS rented hotel rooms in which he and the minor victim stayed.
Judge Shea ordered WILLIAMS to pay $1980 in restitution to the victim.
WILLIAMS has been detained since his arrest on related state charges on August 26, 2015. On March 3, 2017, he pleaded guilty to one count of sex trafficking of a minor.
This matter was investigated by the Federal Bureau of Investigation and Homeland Security Investigations, with the assistance of the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.
Bradford Man Charged with Receipt, Possession of Child PornographyRead the Press Release
ERIE, Pa. - A resident of Bradford, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Daniel Thomas Sutton, 29, of Bradford, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Sutton received and possessed computer images and movies depicting minors engaging in sexually explicit conduct.
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.justice.gov/psc.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses 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 Federal Bureau of Investigation 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.
Bayou Vista man pleads guilty to stealing from mailRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a former Morgan City Post Office custodian pleaded guilty to stealing from U.S. mail.
Jerome Guidry, 39, of Bayou Vista, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of theft of mail by a postal service employee. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, the Morgan City Police Department responded to a report that a $50 retail store gift card never reached its recipient. The U.S. Postal Service-Office of Inspector General agents investigated the report and interviewed Guidry on January 4, 2017. Guidry admitted to taking the gift card. Agents searched his vehicle and found additional gift cards. His home was also searched, and a U.S. Postal Service money order for $500 was found. Guidry admitted to stealing the money order from a greeting card that had been mailed to New York.
Guidry faces up to five years in prison, one year of supervised release, restitution and a $250,000 fine.
The U.S. Postal Service-Office of Inspector General and the Morgan City Police Department conducted the investigation. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Baldwin County Resident Sentenced to Minimum Mandatory 60 Months for Possession of Firearms in Furtherance of a Drug Trafficking CrimeRead the Press Release
The Acting United States Attorney Steve Butler announces that Ramiro Enriquez-Olivares, an 18 year old, resident of Robertsdale, Alabama was sentenced today to 60 months incarceration followed by two years of supervised release for possession of firearms in furtherance of a drug trafficking crime. The sentencing judge ordered that Mr. Enriquez-Olivares be turned over to immigration authorities upon completion of his sentence for deportation proceedings.
On May 16, 2017, Mr. Enriquez-Olivares pled guilty to possession of four firearms when possessing with intent to distribute approximately seven ounces of marijuana.
Department of Homeland Security/Immigration and Customs Enforcement along with the Baldwin County, Alabama Sheriff’s Office investigated the case and presented it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Aryan Circle Member Sentenced to 20 Years in Federal Prison for the Distribution of MethamphetamineRead the Press Release
FORT WORTH, Texas — Scott Edward Grigsby, aka “Skinny Pup,” 44, of White Settlement, Texas, was sentenced last week by U.S. District Judge John McBryde to 240 months in federal prison for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Grigsby pleaded guilty in May 2017 to one count of conspiracy to possess with intent to distribute a controlled substance. Grigsby has been in custody since his arrest in April 2017.
According to documents filed in the case, in 2015 and 2016, Grigsby, a member of the street/prison gang Aryan Circle, received methamphetamine on multiple occasions from various sources of supply in the Fort Worth area. Grigsby then distributed the methamphetamine to others, including officers working in an undercover capacity.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith prosecuted.
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Armed Bank Robber from Grand Rapids Sentenced to 14 Years in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN - Joseph Allen Ellsworth, 32, of Grand Rapids, Michigan, was ordered to serve 14 years in federal prison for bank robbery, Acting U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Paul Maloney ordered Ellsworth to serve four years of supervised release following his release from prison, and pay restitution of $7,318.
On July 20, 2016, at about 2:00 pm, Ellsworth wore an orange ski mask, entered the Fifth Third Bank on 54th street in Wyoming, Michigan, racked what appeared to be a semi-automatic pistol, pointed it at a teller, and demanded money.
Ellsworth made off with $7,318. Hidden in the cash was a dye pack. Ellsworth left by foot and ran west to the Inter-Urban Trail, where he recovered a bike and rode south. During their search, police eventually saw Ellsworth, causing him to drop the bike to the ground and flee into nearby woods. Police recovered the bike, which was stained from the dye pack and had Ellsworth’s DNA on its handlebars. A subsequent search of Ellsworth’s phone revealed pictures of dye-stained money.
The U.S. Attorney’s office pursued charges against Ellsworth with the July 20th robbery as well as a robbery committed in an identical fashion at the same bank nine days earlier. On April 6, 2017, a jury convicted Ellsworth of the July 20th robbery but acquitted on the earlier offense.
One of the three victimized tellers spoke at Ellsworth’s sentencing saying, "I know I will forever struggle with the emotional and mental effects of these crimes. I am not sure I will ever fully recover." The victim teller went on to detail that she initially moved away from the Grand Rapids area due to the fear the robbery instilled in her. However, she also hoped to turn that fear around and use it to help other bank robbery victims: "I do hope that one day I can use my traumatic experiences to help others who were unwillingly put in a situation like I was."
Judge Maloney stated that the 14-year sentence was necessary to reflect the impact Ellsworth’s actions had on the victim tellers, and to deter Ellsworth and others from committing similar crimes. Judge Maloney also noted that Ellsworth repeatedly took advantage of others to get what he wanted, and that Ellsworth committed three home invasions in the period leading up to the bank robbery.
The Wyoming Police Department investigated the case with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorneys Davin M. Reust and Timothy P. VerHey prosecuted and tried the case.
END
Anthony Vita Sentenced in Fentanyl-Laced Heroin DeathRead the Press Release
SYRACUSE, NEW YORK - Anthony Vita, 37, of Syracuse, New York, was sentenced today to serve 15 years in prison for distributing a controlled substance, announced Acting United States Attorney Grant Jaquith and James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (DEA). The fentanyl-laced heroin sold by Vita led to the November 7, 2015 death of the victim, a 24-year old woman who was five months pregnant. The defendant’s sentence also included a 15-year term of supervised release following his term of imprisonment.
As part of his guilty plea on March 28, 2017, Vita admitted that on November 7, 2015, he sold seven bags of heroin laced with fentanyl to the victim. Before the sale, the victim told Vita that she had not used heroin in five months and asked him to provide her with a syringe. As requested, he delivered a syringe and seven bags of the heroin/fentanyl mixture. She injected the mixture and died due to acute opiate intoxication.
“Today’s sentence holds the defendant accountable for killing a 24-year-old pregnant woman by selling her a deadly mix of heroin laced with fentanyl when she had not used heroin for five months. For 15 years, there will be no more victims of the heroin hawked by Anthony Vita. However, this victim’s family will always have to endure the loss of a beloved daughter and an unborn child. We hope dealers will see the danger of death in their distribution of opioids and those suffering from addiction will seek and find the support and assistance they need to stop using them. We will continue to bring federal charges against those who peddle this poison, to pursue just punishments and prevent future tragedies,” said Acting United States Attorney Grant Jaquith.
DEA Special Agent in Charge James Hunt stated, “This sentence is significant because not only has it put a drug trafficker behind bars, but it is a reminder to the public of how dangerous heroin is today. As evident in this case, it has become common practice among drug traffickers to mix heroin with fentanyl, which has resulted in a significant increase of drug overdoses nationwide. I commend the United States Attorney’s Office for the Northern District of New York and the DEA Syracuse Resident Office on their tireless efforts throughout this investigation.”
The case was investigated by the U.S. Drug Enforcement Administration (DEA), Syracuse Resident Office (with Assistance from DEA Norfolk, Virginia Resident Office), the Onondaga County Sheriff’s Department and the Town of Camillus (New York) Police Department, and was prosecuted by Assistant U.S. Attorneys Carla Freedman and Tamara Thomson.
15 Defendants Arrested for Trafficking Heroin, Fentanyl and Crystal Methamphetamine in Brooklyn and CaliforniaRead the Press Release
Earlier today, 13 defendants were arrested in Brooklyn, New York and two were arrested in Harrisburg, Pennsylvania, in a coordinated federal and state takedown of a large-scale opioid and crystal methamphetamine distribution ring. Eight federal defendants are scheduled to make their initial appearances this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn. The two defendants arrested in Pennsylvania will make their initial appearance later today in federal court in Harrisburg, Pennsylvania for removal proceedings to the Eastern District of New York. Two additional federal defendants remain fugitives. Five defendants were arrested on related drug trafficking charges by the New York City Police Department, and they will be arraigned on state charges this afternoon in Brooklyn Criminal Court.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Eric Gonzalez, Acting District Attorney, Kings County District Attorney’s Office (KCDA), and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
As alleged in the complaint, the defendants were members of a large-scale drug distribution operation in Brooklyn. Between at least September 2016 and July 2017, the defendants regularly transported, repackaged and distributed heroin, cocaine, methamphetamine and prescription pills, which they referred to in coded language such as “doggy food.” On at least two occasions, members of the conspiracy also sold pure fentanyl, which they represented to the buyer as potent heroin. The conspiracy involved the distribution of over 100 grams of heroin. Co-conspirators also distributed at least 50 grams of crystal methamphetamine, which they shipped from California to Brooklyn for sale.
“As alleged, the defendants trafficked in dangerous narcotics, including heroin, fentanyl and crystal methamphetamine to line their pockets with cash, despite the potentially lethal consequences to those using the drugs and to our community at large,” stated Acting United States Attorney Rohde. “This Office and our partners at the FBI and NYPD will continue to investigate and prosecute those who contribute to the tragic opioid crisis by trafficking these deadly drugs.”
“The details laid out in this case prove dealers pushing their wares aren’t honest about what they’re selling to an unsuspecting public,” stated Assistant Director-in-Charge Sweeney. “Pure fentanyl and drugs laced with the drug have proven deadly in hundreds of cases all over the country. Users buying the drugs are playing a dangerous game of chance with their lives because they don’t know what they’re putting in their bodies. The FBI and our law enforcement partners are aggressively targeting pushers and their supply chains to stop the epidemic wreaking havoc in communities all over our area.”
“These defendants allegedly peddled heroin on the streets of Brooklyn, concerned only with their lucrative profits, despite the devastation they cause in the communities where they operate,” said Acting Brooklyn District Attorney Gonzalez. “I am committed to continuing to fight this scourge and work with our federal law enforcement partners to do so.”
“The defendants in this case are accused of operating a large-scale drug operation that distributed heroin, fentanyl and other deadly drugs in Brooklyn,” said Police Commissioner O’Neill. “While the opioid crisis cannot be solved with arrests alone, the NYPD remains committed to holding accountable those who engage in the trade in deadly drugs, ensuring they are prosecuted to the fullest extent of the law. I commend the local and federal authorities who collectively brought this case to its successful outcome.”
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Jennifer M. Sasso is in charge of the prosecution.
The Defendants:
TIMOTHY GREENE
Age: 44
Brooklyn, New York
MATTHEW GREENE
Age: 23
Brooklyn, New York
SAMUEL LIRIANO
Age: 33
Brooklyn, New York
CARLOS BERMUDEZ, also known as “Carlito”
Age: 55
Brooklyn, New York
TANIA AGUILAR
Age: 41
Brooklyn, New York
DONALD LNU, also known as “Dot”
Brooklyn, New York
FNU LNU #2, also known as “Ray Banger”
Brooklyn, New York
PALAYOTIS LAMPRINOS, also known as “Peter”
Age: 30
Brooklyn, New York
KYLE SAMMUT
Age: 30
Brooklyn, New York
GEORGE ECONOMOS
Age: 52
Brooklyn, New York
E.D.N.Y. Docket No. 17-M-735
14 Members of Bronx Drug Trafficking Organization Charged in Manhattan Federal Court with Narcotics and Firearms OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent in Charge of the Drug Enforcement Administration (“DEA”), James P. O’Neill, the Police Commissioner of the City of New York (“NYPD”), and George P. Beach II, the Superintendent of the New York State Police (“NYSP”), today announced the unsealing of an Indictment charging 14 members of a drug trafficking organization (“DTO”) that sold large amounts of heroin, cocaine, and crack cocaine in and around the Bronx, New York.
A total of 11 defendants were taken into custody today; three remain at large. During the arrests and execution of various search warrants earlier today, law enforcement officers recovered a significant amount of currency, as well as firearms and narcotics. The 11 defendants who were arrested will be presented and arraigned before U.S. Magistrate Judge Henry Pitman later today. The case is assigned to U.S. District Judge Kimba M. Wood. An initial conference is scheduled for September 12, 2017.
Acting U.S. Attorney Joon H. Kim said: “Today, we charge 14 members of a drug trafficking organization allegedly responsible for trafficking large amounts of heroin, cocaine, and crack cocaine in the Bronx. As alleged, this case demonstrates the close connection between drug dealing and gun crimes. We remain committed, along with our partners at the DEA, NYPD, and the New York State Police, to ridding New York’s neighborhoods of drug trafficking.”
Special Agent in Charge James J. Hunt said: “The alleged crimes committed by this organization show the inescapable connection between drug trafficking and violence. This organization allegedly ran rampant throughout New York City, distributing kilogram quantities of cocaine and heroin. Allegedly supplying drugs to other trafficking organizations throughout the Northeast, they made a profit by feeding on others’ drug addiction.”
State Police Superintendent George P. Beach II said: “I am proud of the dedicated efforts of our members and law enforcement partners which resulted in the indictments of these individuals, seizures of drugs and firearms, and the end of this organization’s alleged operations. New York State will not tolerate the sale of these drugs, or the violent crimes that are associated with narcotics distribution. This sends a strong message of our dedication to clearing our communities of these dangerous substances.”
According to the allegations contained in the Indictment[1] and other documents in the public record, and statements made in court:
Between August 2016 and August 2017, GABRIEL GUILLEN, a/k/a “Toti,” EDWARD JIMENEZ, a/k/a “Buzzy,” ZORAIDA RAMIREZ, WILSON GUILLEN, JOEL TAPIA, a/k/a “Emelio Vasquez,” MATTHEW VASQUEZ, a/k/a “Cabeza,” YEISON SALDANA, a/k/a “Jay,” JASON LLANES, a/k/a “Jay Murder,” GABRIEL CARRION, a/k/a “Gaby,” MOISES SUERO, RICHARD JOSE, a/k/a “Kiki,” JHOAN PICHARDO, a/k/a “Flaco,” RAFAEL RODRIGUEZ, a/k/a “Rafi, and CARLOS PEREZ, a/k/a “Los,” conspired to distribute and possess with intent to distribute one kilogram and more of mixtures and substances containing a detectable amount of heroin, five kilograms and more of mixtures and substances containing a detectable amount of cocaine, and 280 grams and more of mixtures and substances containing a detectable amount of crack cocaine in the Bronx and elsewhere. The defendants also used and possessed, or aided and abetted each other in using and possessing, firearms in furtherance of their drug trafficking crimes.
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GABRIEL GUILLEN, 33, JIMENEZ, 27, RAMIREZ, 49, WILSON GUILLEN, 35, TAPIA, 40, VASQUEZ, 25, SALDANA, 27, LLANES, 30, CARRION, 24, SUERO, 33, JOSE, 38, PICHARDO, 27, RODRIGUEZ, 47, and PEREZ, 25, are each charged in one count of distributing and possessing with intent to distribute one kilogram and more of heroin, five kilograms and more of cocaine, and 280 grams and more of crack cocaine, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison; and one count relating to the use and possession of firearms during and in relation to their drug trafficking crimes, which carries a maximum sentence of life in prison and a mandatory minimum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by a judge
Mr. Kim praised the investigative work of the DEA, the NYPD, and the State Police, and thanked the United States Marshals Service, U.S. Probation, and the NYPD Narcotics Bureau Bronx for their assistance.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jessica Fender and Margaret Graham are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
21 August 2017
Williamson drug dealer sentenced to over eight years in federal prison for heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Williamson man was sentenced today to eight years and four months in federal prison for a heroin charge, announced United States Attorney Carol Casto. Jerome Anthony Smith, 42, previously pleaded guilty to distribution of heroin.
Smith admitted that from May to August 2014, during the course of several controlled purchases, he distributed both heroin and crack to a confidential informant working with law enforcement. The drug deals took place in the Williamson area. As part of the plea agreement, Smith admitted to all of the charged drug trafficking conduct, as well as additional drug deals.
The investigation was conducted by the U.S. Route 119 Drug Task Force and the Mingo County Sheriff’s Office. Assistant United States Attorney Jennifer Rada Herrald is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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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Wayne County man pleads guilty to federal oxycodone chargeRead the Press Release
HUNTINGTON, W.Va. – A Wayne County man who assisted others in distributing oxycodone in the Fort Gay area in 2015 and 2016 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Dennis Ransbottom, Jr., 32, entered his guilty plea to conspiracy to distribute oxycodone.
Between November 2015 and November 2016, Ransbottom participated in the conspiracy with others, including an oxycodone source from Detroit. During the conspiracy, the source frequently transported oxycodone pills from Michigan to Fort Gay to distribute, and would notify Ransbottom upon arrival in West Virginia. Ransbottom agreed to introduce individuals to the source, or otherwise arrange for customers to meet the source to buy pills. On November 29, 2016, Ransbottom was arrested along with another individual while they were meeting outside of the Pit Stop gas station in Fort Gay. Investigators located and seized a total of 382 thirty mg oxycodone tablets during the arrest.
Ransbottom faces up to 20 years in federal prison when he is sentenced on November 20, 2017.
The Drug Enforcement Administration and the Wayne County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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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United States Recovers More Than $12 Million in False Claims Act Settlements for Alleged Kickback SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced that Sightpath Medical, Inc. (n/k/a Sightpath Medical, LLC) (“Sightpath”), TLC Vision Corporation (n/k/a TLC Vision (USA, LLC)) (“TLC”) (collectively the “Sightpath Entities”) and their former CEO, JAMES TIFFANY, have agreed to pay more than $12 million to the United States to resolve kickback allegations under the False Claims Act (“FCA”). The United States also intervened in an underlying lawsuit against the Cameron-Ehlen Group, Inc. d/b/a Precision Lens (“Precision Lens”), Precision Lens’ owner PAUL EHLEN, and JITENDRA SWARUP.
“Medicare beneficiaries depend on their physicians to make decisions based on sound medical judgment,” said Assistant U.S. Attorney Chad Blumenfield. “Our office will take decisive action to address allegations that medical providers are receiving improper financial benefits that could influence medical decision making. We are grateful to our law enforcement partners for their excellent work in investigating this matter.”
“This settlement is an outstanding result and represents the third major False Claims Act case successfully handled by this Office in the last three months. These types of cases remain a top priority of our Office, I applaud the hard work and dedication of the Civil Frauds Unit and the agencies involved in the case,” said Acting U.S. Attorney Gregory Brooker.
“The FBI together with our law enforcement partners aggressively investigate companies and individuals who engage in kickback schemes at the expense of Medicare and other federal health care programs,” said FBI Special Agent in Charge Richard T. Thornton of the Minneapolis Division. “Those who seek to exploit the nation’s health care system through fraud will be held accountable.”
According to the complaint, brought by a whistleblower, Sightpath and Precision Lens supply intraocular lenses, as well as ophthalmic surgical equipment and services to medical facilities. These products and services are used by ophthalmologists in connection with eye surgeries, including cataract surgeries performed in Ambulatory Surgical Centers and hospitals for which federal payers, such as Medicare, provide reimbursements. The complaint alleges that Precision Lens, EHLEN and the Sightpath Entities paid kickbacks to physicians in various forms, including travel, entertainment and improper consulting agreements. The complaint identifies multiple examples of trips including luxury skiing vacations and high-end fishing, golfing and hunting trips. The complaint also alleges that these various items of value were provided in order to induce the physicians to use Precision Lens’ and the Sightpath Entities’ products and services.
According to the settlement agreements, the United States contends that between January 1, 2006 and January 1, 2015, the Sightpath Entities provided physicians items of value to induce the use of Sightpath Entities’ products and services, which resulted in the submission of false claims to the United States for ophthalmological products and services. These items of value included hunting, skiing, fishing, and golf trips. Additionally, the Sightpath Entities entered into consulting agreements with physicians and physician practices for services that were never performed or not properly tracked, resulting in payments in excess of fair market value.
According to the settlement agreements, the United States further alleged that TIFFANY directed much of the conduct at issue, particularly between 2010 and 2013 when he was CEO of Sightpath and TLC, and that TIFFANY was directly involved in setting up and participating in several of the trips with physicians who were either Sightpath customers or potential customers. In addition, TIFFANY directly participated in establishing and continuing the lucrative consulting agreements with physicians and physician practices. The United States contends that by providing these items of value, the Sightpath Entities and TIFFANY knowingly induced physicians to utilize the Sightpath Entities’ products and services and submit false claims to the federal government. The claims were false because they were tainted by illegal kickbacks to the physicians, in violation of the Anti-Kickback Statute and the False Claims Act.
These settlements resolve allegations filed in a civil lawsuit originally brought by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government for false claims and to share in any recovery. The government often relies on whistleblowers to bring fraud schemes to light that might otherwise go undetected. The whistleblower in this matter, Kipp Fesenmaier, will receive 19.5 percent of the amounts recovered in connection with the settlement agreements.
As part of the FCA Agreement and in exchange for a release of OIG’s permissive exclusion authority, Sightpath has agreed to enter into a 5-year corporate integrity agreement (CIA) with OIG. Although not a signatory to the CIA, TLC is participating in the CIA as a “covered person.”
The United States has declined to intervene in the case against the other defendants named in the complaint. The claims resolved by these settlements are allegations only; there has been no determination of liability or wrongdoing.
The case was handled by Assistant U.S. Attorney Chad A. Blumenfield of the Civil Frauds Unit of the U.S. Attorney’s Office for the District of Minnesota with assistance from the Office of Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation.
The case is United States ex rel. Fesenmaier v. Sightpath Medical, Inc. TLC Vision Corporation, The Cameron Ehlen Group, Inc. dba Precision Lens, et al., Civil No. 13-CV-3003 (RHK/FLN).
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Two defendants headed to federal prison for participation in heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man and Huntington woman who participated with others distributing heroin in the Huntington area between 2014 and 2016 were sentenced to federal prison today, announced United States Attorney Carol Casto. Derrick C. Morris, 27, was sentenced to six years in federal prison after previously pleading guilty to conspiracy to distribute 100 grams or more of heroin. Dorothy D. Pannell, 23, was sentenced to a year and a day in federal prison after previously pleading guilty to conspiracy to distribute heroin.
Between November 2014 and June 8, 2016, Morris conspired with others, including Mark Bush, to distribute heroin that was transported to Huntington from the Detroit area. During the conspiracy, Morris received heroin that he would distribute in Huntington. Morris subsequently provided proceeds from the distributions back to individuals in Detroit. Morris also enlisted the aid of multiple individuals to conduct wire transfers of cash from Huntington to the Detroit area. At today’s hearing, the Court found that Morris was responsible for the distribution of over a kilogram of heroin in the Huntington area.
Pannell previously admitted she participated in the conspiracy during April and May of 2016. During this period, Pannell allowed Bush to store heroin in her residence located at 729 Oxford Drive in Huntington. Pannell further allowed Bush to retrieve heroin from her residence on various occasions to make distributions in Huntington. On May 23, 2016, agents with the Huntington FBI Drug Task Force executed a search warrant at Pannell’s residence. During the search, agents seized approximately 85 grams of heroin and three firearms.
Bush was sentenced to 17 and a half years in federal prison for his involvement in the conspiracy.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.
These prosecutions were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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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Treasure Coast and Palm Beach Smash and Grab Burglars and Robbers Plead GuiltyRead the Press Release
South Florida residents, including D’Angelo Figueroa, 21, of Port St. Lucie, Victoria Mia DeJesus, 20, of West Palm Beach, Jose Anibal Valentine, 22, of Latana, and Shay Jackson Flores, 26, of Orlando pleaded guilty in federal court for their involvement in a string of burglaries and robberies.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; John A. Bolduc, Chief, Port St. Lucie Police Department; Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO); and Jeffrey S. Katz, Chief, Boynton Beach Police Department, made the announcement.
On August 16, 2017, Figueroa pleaded guilty to: theft from a federal firearms licensee and receipt of stolen firearms, in violation of Title 18, United States Code, Sections 922(u) and 2; interference with commerce by threats or violence (robbery), in violation of Title 18, United States Code, Sections 1951(a) and 2; distribution of a controlled substance (heroin), in violation of Title 21, United States Code, Sections 841(a)(1) and 2; and brandishing a firearm furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(i) and 2.
On August 17, 2017, DeJesus pleaded guilty to receiving stolen firearms, in violation of Title 18, United States Code, Sections 922(j) and 2; and two counts of interference with commerce by threats or violence.
On August 1, 2017, Valentine pleaded guilty to receipt of stolen firearms; interference with commerce by threats or violence (robbery); and discharging of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 2.
On July 20, 2017, Flores pleaded guilty to receipt of stolen firearms.
According to the court record:
On July 19, 2016, Figueroa struck a female victim in the face with a handgun and threatened to shoot her. Figueroa robbed the victim of her wallet and jewelry.
On July 20, 2016, Figueroa and DeJesus used a pickaxe to shatter the entrance door of a Dunkin Donuts in Boynton Beach. Inside the store, DeJesus and Figueroa broke into the office, where the manager was hiding and demanded money, while holding the pickaxe.
On July 23, 2016, Figueroa and another male used a concrete cinder block to break through the back door of Bayshore Pawn, a Federal Firearms Licensee (FFL) business that sold firearms in Port St Lucie. The males took 16 firearms, jewelry valued at $15,000, and approximately $1,400 in United States Currency.
On July 29, 2016, PBSO deputies arrested Figueroa in a hotel room registered to DeJesus and recovered a firearm.
On August 17, 2016, DeJesus and another female used a pickaxe to break open the front door of Jupiter Donuts in Boynton Beach. DeJesus carried the pickaxe and demanded money while the other female grabbed one of the workers and walked her around the business, attempting to locate a cash register or a business safe. Both fled the business after being told that there was no safe or money in the store.
On August 26, 2016, two victims were attacked outside of a residence in West Palm Beach, by Valentine and three other males armed with firearms demanding money and marijuana. After taking the victims’ belongings, the robbers forced their way into the house and continued to demand money and drugs, while pointing firearms at the victims. Valentine fired his weapon, after saying "do what I say or everyone will die."
During the course of the investigation law enforcement identified evidence, including photographs and recovered items that connected Flores, Valentine, Figueroa and DeJesus to the string of burglaries and robberies.
Flores is scheduled to be sentenced before United States District Court Judge Donald M. Middlebrooks in West Palm Beach on September 28, 2017, Valentine, Figueroa and DeJesus are scheduled to be sentenced on November 8, 2017.
The defendants’ respective charges of conviction are subject to statutory maximum terms of imprisonment to include: 10 years in prison for theft from a federal firearms licensee and receipt of stolen firearms; 20 years in prison for interference with commerce by threats or violence and distribution of a controlled substance, as well as a mandatory consecutive 7 years for brandishing a firearm in furtherance of a drug trafficking crime and 10 years consecutive for discharging of a firearm in furtherance of a crime of violence.
Mr. Greenberg commended the investigative efforts of the ATF, Port St. Lucie Police Department, PBSO, Boynton Beach Police Department, and the Indian River County Sheriff’s Office, for their work with this matter. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Third Pinon Brother Sentenced for Violent Assault on JuvenileRead the Press Release
PHOENIX – Today, Roneldo James, 28, of Pinon, Ariz., was sentenced by U.S. District Judge G. Murray Snow to eight years of imprisonment, to be followed by three years of supervised release. James had previously pleaded guilty to assault with a dangerous weapon. James committed the offense with his two brothers, Delfred Lee and Milfred James, who were previously sentenced to seven and six years of imprisonment, respectively, for their roles in the offense.
On Dec. 1, 2015, James and his brothers held a juvenile victim and others at gunpoint against their will in a Pinon, Ariz. residence on the Navajo Nation Indian Reservation. All parties involved are members of the Navajo Nation. All three brothers are affiliated with the Red Nation Warriors street gang.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8167-PCT-GMS
RELEASE NUMBER: 2017-078_James
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Rochester Man Arrested for Selling Counterfeit CoinsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Timothy Meacham, 32, of Rochester, NY, was arrested and charged by criminal complaint with fraudulently selling counterfeit coins. The charge carries a maximum penalty of 15 years prison and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, in May 2017, Meacham posted an ad on Craigslist advertising the sale of two genuine United States gold collector coins. The defendant used a false name and concealed his phone number in the ad in order to hide his identity. The victim, a Pennsylvania man, contacted Meacham and traveled to Rochester on May 15, 2017, at which time he purchased the counterfeit coins for $5,000.00 cash.
As part of the fraud, Meacham falsely represented that the coins were authentic and had been passed to Meacham from his deceased grandfather. The defendant also falsely represented that he needed to sell the coins in order to pay for funeral expenses related the unexpected death of a family member. Upon his return to Pennsylvania, the victim discovered that the coins were counterfeit and contacted the United States Secret Service in Rochester.
The defendant made an initial appearance today before U.S. Magistrate Judge Marian W. Payson and was released on conditions.
The criminal complaint is the result of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
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.
Repeat Offender from Albuquerque Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Michael Gerard Smith, 56, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Smith is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Court records reflect that Smith’s criminal history includes more than ten prior felony convictions including four for drug trafficking offenses.
Smith was arrested on Feb. 3, 2017, and was charged by criminal complaint with methamphetamine and heroin trafficking offenses, and with being a felon in possession of a firearm. According to the criminal complaint, APD officers seized approximately 94.5 grams of methamphetamine, 34.9 grams of heroin, a handgun, and cash in denominations consistent with street level drug trafficking while executing a search warrant at ’s residence.
Smith subsequently was indicted on Feb. 28, 2017, and was charged with possessing methamphetamine and heroin with intent to distribute, possessing a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm. According to the indictment, Smith committed the crimes on Feb. 2, 2017, in Bernalillo County, N.M. At the time, Smith was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
During today’s proceedings, Smith pled guilty to Count 1 of the indictment charging him with possession of a mixture and substance containing methamphetamine with intent to distribute. In entering the guilty plea, Smith admitted that on Feb. 2, 2017, he possessed more than 50 grams of methamphetamine with the intention of distributing the drugs to others.
At sentencing, Smith faces a statutory mandatory minimum penalty of five years and a maximum of 40 years in federal prison. Smith remains in custody pending a sentencing hearing, which has yet to be scheduled.
The case against Smith was investigated by the Albuquerque office of the DEA and the APD, and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Real Estate Developer Sentenced to Three Years in Federal Prison for Defrauding Banks and the City of ChicagoRead the Press Release
CHICAGO — A federal judge today sentenced a Chicago real estate developer to three years in prison in connection with a fraud scheme related to a $105 million line of credit secured by city and suburban properties, including the Streets of Woodfield Mall in Schaumburg.
The fraud perpetrated by LAURANCE H. FREED, the president of Joseph Freed & Associates LLC, also involved the theft of millions of dollars from his business partner, Kimco Realty Corp. Freed also fraudulently obtained more than $575,000 in publicly funded loans from the city of Chicago, and attempted to fraudulently obtain an additional $1 million from the city.
A federal jury last year convicted Freed, 54, of Chicago, on three counts of bank fraud, one count of mail fraud, and four counts of making a false statement to a financial institution. In addition to the 36-month prison term, U.S. District Judge Robert M. Dow also fined Freed $250,000, and ordered him to pay $575,759 in restitution to a victim bank.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph M. Ferguson, Inspector General for the City of Chicago.
“These were serious offenses that merit serious punishment,” Assistant U.S. Attorney Matthew F. Madden argued in the government’s sentencing memorandum. “The defendant was at the heart of this scheme to defraud and the lies told in furtherance of it.”
The investigation also resulted in the conviction of JFA’s vice president, CAROLINE WALTERS. Walters, of Palatine, pleaded guilty last year to one count of making a false statement to a financial institution. Judge Dow previously sentenced Walters to six months in prison.
According to evidence at Freed’s trial, the city of Chicago in 2002 issued two Tax Increment Financing notes to Uptown Goldblatts Venture LLC, a company formed by JFA to redevelop the former Goldblatt’s store in the Chicago’s Uptown neighborhood. The TIF notes had a combined principal of $6.7 million, and Freed pledged one of the notes to Cole Taylor Bank as collateral.
Four years later, JFA-affiliated entities entered into agreements with a bank consortium for a revolving line of credit worth up to $105 million. Uptown Goldblatts became a borrower under the revolving loan agreement through a subsequent deal with LaSalle Bank, which was one of the banks in the consortium and had recently been acquired by Bank of America. In the LaSalle deal, Uptown Goldblatts pledged the two TIF notes as collateral and also represented that the notes were owned free of other secured interests. The deal did not mention that one of the notes had already been pledged to Cole Taylor.
Evidence at trial also revealed that in 2009 and 2010 Freed signed false affidavits seeking to obtain more than $1.5 million in TIF payments from the city, knowing that he was not entitled to the payments.
As Freed’s business experienced financial difficulties, he withdrew more than $7 million from the Streets of Woodfield partnership without the knowledge and consent of his business partner Kimco, which owned 45% of the venture. Freed fraudulently recorded the money as “loans.”
Pinellas Park Man Pleads Guilty to Drug ChargeRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Ramon Green (35, Pinellas Park) today pleaded guilty to possessing with the intent to distribute marijuana and cocaine. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in February 2017, officers from the St. Petersburg Police Department responded to a 911 call reporting shots fired in a St. Petersburg neighborhood and found Green, covered in blood, standing outside a residence. Green told the officers that he had been inside the house when he heard a gunshot and then found his girlfriend outside the backdoor bleeding from a gunshot wound to her chest. He also told the officers that he had dropped his girlfriend off at the hospital and then returned to the house to lock it up.
Further investigation revealed a large pool of blood outside the backdoor of the home. The officers also confirmed that Green’s girlfriend was in the hospital with a gunshot wound to her chest. The officers smelled a strong odor of marijuana coming from inside the home. A search of the house revealed approximately 15 pounds of marijuana, several ounces of cocaine, drug packaging materials, and a variety of personal items and paperwork indicating that the house belonged to Green. A bullet was also found in the wall near the pool of blood, outside the backdoor. Although Green denied shooting his girlfriend, his hands tested positive for gunshot residue.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, and the Pinellas County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
Niagara Falls Man Arrested on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Antonio Carr, 24, of Niagara Falls, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years prison and a $250,000 fine.Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on July 28, 2017, Niagara County Probation Officers performed a home visit for a woman living at 1224 Niagara Avenue, Upper Apartment, in Niagara Falls. As they entered the residence, officers observed the defendant, the probationer's boyfriend, in the bedroom of the apartment. Carr attempted to leave the apartment, telling officers he needed to go and get his children who were in the lower apartment. An officer accompanied the defendant, who was holding a blue jacket in his hand, to the lower apartment. Carr knocked on the door and handed the blue jacket to the occupant of the lower apartment. The officer witnessed the occupant of the lower apartment take the blue jacket down a hallway and place it on a staircase. When the officer asked the occupant of the lower apartment for the blue jacket, they denied having it. The occupant eventually turned it over. The officer discovered a .380 caliber pistol in the right inside pocket of the jacket.
Carr has a previous felony conviction in Niagara County Court and is legally prohibited from possessing a firearm.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on August 22, 2017, at 2:00 p.m.
The criminal complaint is the result of an investigation by the Niagara County Probation Office, under the direction of Director John Cicchetti; the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto; and the Bureau of Alcohol, Tobacco. Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
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.
Newport News Man Pleads Guilty to Hampton CarjackingRead the Press Release
NEWPORT NEWS, Va. – A previously convicted felon pleaded guilty today to his role in a violent carjacking.
According to the statement of facts filed with the plea agreement, Mark Anthony Johnson, 35, arrived at a convenience store on Shell Road in Hampton with two other vehicles in the evening of Nov. 20, 2016. Johnson got out of his car and brandished an AR-15 assault rifle at two individuals as he approached the store. He entered the store, brandished his rifle at the store clerk, then exited the store. After he exited the store, he pointed his rifle at the carjacking victim. Another vehicle that arrived with Johnson blocked the victim’s vehicle from exiting the parking lot. Johnson removed the victim from the victim’s vehicle at gunpoint, and struck the man with his rifle. The victim was forced to the ground, and a group of individuals, including Johnson, kicked the victim. The passenger of Johnson’s vehicle drove off in the victim’s car.
Johnson, who is currently on federal supervised release, pleaded guilty to carjacking and brandishing a firearm in furtherance of a crime of violence. He will be sentenced on December 4, and faces a maximum penalty of 15 years for the carjacking, and a mandatory minimum of 7 years and a maximum penalty of life for brandishing the firearm in furtherance of a crime of violence. The latter sentence will be served consecutive to the former. 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, Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Terry L. Sult, Chief of Hampton Police Division, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Megan M. Cowles is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-51.
New Britain Man Sentenced to 66 Months in Prison for Distributing FentanylRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RODNEY KINCAID, 36, formerly of New Britain, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 66 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and other controlled substances.
According to court documents and statements made in court, in late December 2015, the DEA’s Hartford Task Force and New Britain Police Department received information that Kyle Petersen, of New Britain, was selling fentanyl powder, prescription pills and marijuana. DEA Task Force Officers and the New Britain Police Department Special Services Unit initiated an investigation and made multiple controlled purchases of fentanyl from Petersen. The investigation, which included court-authorized wiretaps, revealed that John Casadei, of Morris, used the darknet, an internet network that can only be accessed through the use of specific software or authorizations, to purchase large quantities of fentanyl that were shipped from China. Casadei also obtained and distributed various prescription pills, including Xanax and oxycodone. Casadei then supplied fentanyl and various prescription pills to Jared McBriarty, of Bristol, who in turn supplied them to Petersen. Petersen distributed the drugs to other individuals, including KINCAID, who sold them throughout central Connecticut.
On April 18, 2016, KINCAID was arrested on related state charges after he purchased approximately 28 grams of fentanyl from Petersen.
Petersen, Casadei, McBriarty and other individuals involved in this narcotics distribution ring were arrested on May 19, 2016. On that date, law enforcement searched a New Britain residence that Petersen used as a stash location and seized approximately $740,000 in cash, approximately 3.2 kilograms of MDMA (commonly known as “ecstasy”), and more than 40,000 Xanax pills. A search of Petersen’s residence revealed additional quantities of narcotics and more than $11,000 in cash. Law enforcement subsequently seized approximately $80,000 from Petersen’s bank account.
KINCAID has been detained since his arrest.. On April 26, 2017, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, fentanyl.
Petersen, Casadei and McBriarty pleaded guilty to related charges. On July 19, Petersen was sentenced to 120 months of imprisonment. Casadei and McBriarty await sentencing.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the U.S. Marshals Service, U.S. Postal Inspection Service, Homeland Security Investigations, New Britain State’s Attorney’s Office and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Navajo Man Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Larry June, 58, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty today in federal court in Albuquerque, N.M., to a voluntary manslaughter charge. Under the terms of his plea agreement, June will be sentenced to 97 months in prison followed by a term of supervised release to be determined by the court.
The FBI and Navajo Nation Division of Public Safety arrested June in Nov. 2016, on a criminal complaint charging him with killing a Navajo woman by stabbing her with a knife on Nov. 25, 2016, on the Navajo Indian Reservation in San Juan County, N.M. June was subsequently indicted on Dec. 20, 2016, and was charged with second-degree murder.
During today’s proceedings, June pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, June admitted that on Nov. 25, 2016, he stabbed the victim multiple times with a knife during a heated argument, and that the victim died as the result of the injuries she sustained. June remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorneys Niki Tapia-Brito and Michael D. Murphy are prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Naturalized U.S. Citizen from Bosnia Guilty of Fraudulently Obtaining CitizenshipRead the Press Release
Charged with having obtained citizenship by telling a series of lies in naturalization process, Defendant admits that he intentionally failed to disclose murder charges during 1990’s Bosnian Conflict
GRAND RAPIDS, MICHIGAN — Alexander KNEGINICH, 57, of Crown Point, Indiana, was convicted on August 18, 2017, of having fraudulently obtained his U.S. citizenship by falsely denying, during the immigration and naturalization process, that he had ever been charged with or jailed for a crime. During a guilty-plea hearing conducted earlier in August, KNEGINICH admitted under oath that he had repeatedly claimed never to have been charged with a crime or held in custody, when in fact he had been charged with the 1994 murders of two Muslim civilians – a husband and wife – while serving in a Serbian militia unit during the 1990’s Bosnian conflict. Those charges remain pending in Bosnia-Herzegovina, which is actively seeking KNEGINICH’s extradition for trial. KNEGINICH told these lies to U.S. immigration authorities in the course of obtaining authority to enter the United States as a refugee, subsequently obtaining permanentresident status, and ultimately obtaining U.S. citizenship in January 2007 in Grand Rapids, Michigan.
“Mr. Kneginich never rightly secured the blessings and freedom of citizenship and lawful status in this great country of ours,” said Acting U.S. Attorney Andrew B. Birge. “He snuck into this country by fleeing charges that he is a murderer. For his deceit, he faces the irony of up to ten years behind locked, iron doors before the process for sending him back even begins.”
“The United States will never be a safe haven for those seeking to distance themselves from their past,” said Special-Agent-in-Charge Steve Francis, Homeland Security Investigations, Detroit Field Office (HSI). “This conviction now paves the way for Mr. Kneginich's ultimate removal from the United States.”
KNEGINICH’s sentencing is scheduled for November 14, 2017, in front of U.S. District Judge Janet T. Neff. KNEGINICH faces up to ten years in federal prison; in addition, revocation of his U.S. citizenship is mandated by Federal law based on the conviction. KNEGINICH also faces eventual deportation and/or extradition back to Bosnia and Herzegovina, where murder charges remain pending. KNEGINICH remains in the custody of the U.S. Marshal’s Service pending his sentencing.
The case is being jointly prosecuted by Trial Attorney Jamie Perry, of the Justice Department’s Human Rights and Special Prosecutions Section (HRSP), and Assistant U.S. Attorney Hagen W. Frank of the U.S. Attorney’s Office, Western District of Michigan. The case was investigated by HSI’s Grand Rapids Office, assisted by the Justice Department’s Office of International Affairs and the Government of Bosnia and Herzegovina.
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Justin E. Herdman sworn in as United States Attorney for the Northern District of OhioRead the Press Release
Justin E. Herdman has taken the oath of office to become the United States Attorney for the Northern District of Ohio. Herdman was nominated by President Donald Trump on June 12 and confirmed by the U.S. Senate on Aug. 3. He took the oath of office from U.S. District Court Judge Patricia Gaughan.
“I am humbled and honored to be returning to an office that I love,” Herdman said. “I am excited to work with the men and women of the U.S. Attorney’s Office to seek justice every day for the people who live in Northern Ohio. We face serious challenges in our region, including the opioid epidemic and violent crime, but we will endeavor daily to make our community safer.”
As U.S. Attorney, Herdman supervises the prosecution of federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States. The office covers Ohio’s northern 40 counties, which includes Cleveland, Toledo, Akron and Youngstown. Herdman oversees a staff of approximately 160 employees.
Herdman, of Chagrin Falls, was an Assistant United States Attorney from 2006 through 2013, serving as Deputy Chief of the National Security, Human Rights, and Organized Crime Unit. He was responsible for investigating and prosecuting national security crimes, including the successful trial and appeal of a homegrown terror cell that sought to support al Qaeda. He was also part of the prosecution team of five self-proclaimed anarchists convicted of attempting to use explosives to blow up a Cleveland-area bridge.
Immediately prior to becoming U.S. Attorney, Herdman was a partner at Jones Day, where he represented businesses and individuals under investigation.
Before returning home to the Cleveland area, Mr. Herdman was an Assistant District Attorney in New York City, working for the legendary District Attorney for the borough of Manhattan, Robert M. Morgenthau, where Mr. Herdman prosecuted a wide range of violent crime and identity theft cases.
He serves as a Judge Advocate in the United States Air Force Reserve and is a former intelligence officer in the United States Navy Reserve. He is a graduate of Kenston High School. He earned his B.A. from Ohio University, his M.Phil. from the University of Glasgow, and his J.D. from Harvard Law School.Jefferson County Woman Pleads Guilty to Sexually Exploiting Three Children Between 2001 and 2008Read the Press Release
SYRACUSE, NEW YORK – Tammy M. Martin, 48, of Carthage, New York, pled guilty today to three counts of sexual exploitation of a child, announced Acting United States Attorney Grant C. Jaquith and Homeland Security Investigations-Buffalo Field Office, Special Agent in Charge Kevin Kelly.
In entering her guilty plea today in United States District Court, Martin admitted that she, together with another person, engaged three minor children in sexually explicit conduct and produced images of the abuse for a period of years.
As part of her guilty plea, Tammy Martin admitted that on at least four separate occasions in 2002, she and another person engaged the first of the three victims in sexually explicit conduct for the purpose of producing visual depictions of that conduct, and produced at least 30 separate files depicting the child engaged in sexually explicit conduct. These depictions, Martin admitted, included at least one instance in which Martin is shown pressing her mouth to the child’s nude anus when the child was approximately six years old.
Tammy Martin further admitted that on at least fourteen separate occasions between 2001 and 2007, during which time the second victim was ages 4 – 10, she and the other person engaged the second child in sexually explicit conduct and produced at least 104 separate files depicting that abuse. These depictions include a video file depicting the defendant performing oral sex on the child, and a video depicting the defendant directing the child to rub her nude breast.
Finally, Tammy Martin admitted that on at least twenty-six occasions from 2004 through 2008, she and the other person engaged the third of their victims in sexually explicit conduct, producing at least 211 separate files of that abuse. These depictions, Martin admitted, include an image file depicting Martin performing oral sex on this child when the child was approximately nine months old, an image file depicting Martin penetrating the child’s vagina with a sex toy when she was approximately three years old, and an image file depicting Martin performing oral sex on the child when she was approximately four years old.
Senior United States District Judge Hon. Norman A. Mordue will sentence Martin on January 8, 2018. She faces a mandatory minimum term of 15 years imprisonment on each count, with a maximum penalty of 30 years imprisonment per count. She will be required to serve a term of supervised release of a minimum of 5 years, and up to life, following her term of imprisonment. Martin will also be required to register as a sex offender.
Martin’s case was investigated by the New York State Police, and Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Carina Schoenberger.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Houston Man Charged with Attempting to Damage Hermann Park StatueRead the Press Release
HOUSTON – A 25-year-old man has been taken into custody for attempting to maliciously damage or destroy property receiving federal financial assistance, announced Acting U.S. Attorney Abe Martinez.
A criminal complaint was filed in Houston federal court today charging Andrew Schneck, of Houston. He made his initial appearance before U.S. Magistrate Judge Mary Milloy this morning, at which time he was temporarily ordered into custody upon the government’s request pending a detention hearing set for Thursday, Aug. 24 at 2:00 p.m.
According to the complaint, on the evening of Aug. 19, 2017, a Houston park ranger observed Schneck kneeling among the bushes in front of the General Dowling Monument located in Hermann Park in Houston. Schneck was allegedly holding two small boxes with various items inside to include what appeared to be duct tape and wires. After placing the boxes on the ground per the ranger’s request, Schneck then allegedly took a drink from plastic bottle but immediately spit it on the ground. The ranger then noticed a timer and wires in the box and notified the Houston Police Department (HPD), according to the complaint.
The clear liquid was field tested as was a white powdery substance found in a small, black aluminum tube which revealed they were most likely nitroglycerin and Hexamethylene triperoxide diamine (HMTD), respectively, according to the charges. HMTD is a high explosive organic compound used as an initiating, or primary explosive. Nitroglycerin has been used as an active ingredient in the manufacture of explosives. ln its pure form, nitroglycerin is a contact explosive, with physical shock causing it to explode, which degrades over time to even more unstable forms. Nitroglycerin is highly dangerous to transport or use. ln its undiluted form, it is one of the world's most powerful explosives.
Authorities believe the items in Schneck’s possession on Aug. 19 were capable to produce a viable explosive device, according to the charges.
The complaint further alleges that Schneck conducts “chemistry experiments” at his Houston residence.
The City of Houston receives federal financial assistance for maintenance of Hermann Park where the General Dowling Monument is located.
If convicted, Schneck faces a minimum of five and up to 40 years in federal prison and a possible $250,000 maximum fine.
The FBI and HPD are conducting the investigation. Assistant U.S. Attorneys S. Mark McIntyre and Ted Imperato are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Hobbs Man Sentenced to Five Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Enrique Miramontes, 43, of Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in prison for his conviction on a methamphetamine trafficking charge. Miramontes will be on supervised release for three years after completing his prison sentence.
Miramontes was arrested on June 8, 2016, and was charged by criminal complaint with possession of methamphetamine with intent to distribute and possession of firearms in furtherance of a drug trafficking crime. According to the complaint, on June 7, 2016, in Lea County, N.M., law enforcement officers executed a search warrant at Miramontes’ residence in Hobbs, and seized approximately 462 grams of methamphetamine, two firearms and ammunition.
On Oct. 5, 2016, Miramontes pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Miramontes admitted that on June 7, 2016, law enforcement officers, who were executing a search warrant at his residence, found methamphetamine and two firearms in a shed at his residence.
This case was investigated by the Las Cruces office of Homeland Security Investigations and the Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Harrison County man sentenced for drug possessionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eric Scott Barker, of Mount Clare, West Virginia, was sentenced today to 120 months incarceration for drug possession, Acting United States Attorney Betsy Steinfeld Jividen announced.
Barker, age 37, pled guilty to one count of “Attempted Possession with Intent to Distribute Para-Fluorofentanyl” in June 2017. The crime took place in Doddridge County on September 15, 2016.
Assistant U.S. Attorney Andrew M. Cogar prosecuted the case on behalf of the government. The United States Postal Inspection Service, the West Virginia State Police, and the Greater Harrison Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Gainesville Physician Sentenced for 162 Counts of Health Care FraudRead the Press Release
GAINESVILLE, FLORIDA – Ona M. Colasante, 60, a physician who formerly practiced in Gainesville, was sentenced Friday afternoon to 12 months in prison and ordered to pay a $1,134,000 fine and more than $1 million in restitution after being convicted on May 2, 2016, of 162 counts of health care fraud. As part of the sentence, the Court ordered that more than $1 million be forfeited to the government. Colasante was also ordered to perform 1,200 hours community service while serving a term of 3 years of supervised release. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Colasante owned and operated medical businesses known as the Hawthorne Medical Center in Hawthorne, Florida, between 1998 and March 2009, and the Colasante Clinic in Gainesville, Florida, between January 2010 and January 2013. Through these businesses, Colasante defrauded Medicare, Medicaid, and Blue Cross Blue Shield of Florida through a series of false billing schemes. During the five-week trial, the government presented evidence that Colasante, and employees acting at her direction, ordered non-FDA approved drugs at a drastically reduced price, administered them to unsuspecting patients, and then fraudulently billed insurance companies for the cost of FDA-approved drugs. The evidence showed that Colasante also billed insurance companies for medically unnecessary tests and submitted false diagnosis codes in support of her fraudulent claims for reimbursement.
In addition, Colasante billed insurance companies for counseling, treatment, and training that was never performed. Her businesses repeatedly submitted fraudulent billings for smoking-cessation treatment purportedly administered to patients who were non-smokers.
United States Attorney Canova praised the work of the Department of Health and Human Services Office of Inspector General, the Internal Revenue Service – Criminal Investigation, the Florida Attorney General’s Medicaid Fraud Control Unit, the United States Food and Drug Administration, and the Federal Bureau of Investigation, whose joint investigation led to the convictions in this case.
The case was prosecuted by Assistant United States Attorneys Tiffany H. Eggers and J. Ryan Love.
“Health care programs and patients depend on ethical practices by medical providers,” said United States Attorney Canova. “I commend the diligent investigators and prosecutors who uphold our federal laws and bring to justice those who abuse their positions of trust.” The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Former Eagle Pass City Manager Sentenced to Federal Prison for Lying to FBI in Connection with Investigation into “Pay-To-Play” Bribery Scheme Involving Maverick County ContractsRead the Press Release
In Del Rio this morning, United States District Judge Alia Moses sentenced 68-year-old former Eagle Pass City Manager Hector Chavez, Sr., to 42 months in federal prison followed by three years of supervised release for lying to FBI agents during their investigation into a “pay-to-play” scheme involving Maverick County contracts, announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On March 30, 2017, Chavez pleaded guilty to one count of making a false statement to a federal agent. By pleading guilty, Chavez admitted that on June 25, 2015, he knowingly gave false statements to agents regarding his response to a federal grand jury subpoena, his work on Maverick County contracts, and a personal consulting services contract with an engineering firm.
According to court records, on May 4, 2015, a federal grand jury subpoena was issued to Chace Management, a company owned by the defendant, for all records regarding any subcontracting work done for Hejl, Lee and Associates. Chavez, admittedly, lied to authorities about creating a fraudulent, hand-written personal services agreement he provided in response to the subpoena. Chavez also claimed to have received approximately $24,000 for services rendered to Hejl, Lee and Associates when in fact, the work listed in the agreement never took place.
This investigation was conducted by the FBI and the Texas Department of Public Safety Criminal Investigations Division together with the Customs and Border Protection Office of Internal Affairs. Assistant United States Attorneys Katherine Griffin, Daniel Lee and Todd Keagle prosecuted this case on behalf of the Government.
Former Compliance Officer for National Labor Relations Board Pleads Guilty to Stealing More Than $400,000 from AgencyRead the Press Release
WASHINGTON – Hector Martinez, a former compliance officer with the National Labor Relations Board (NLRB), pled guilty today to federal charges stemming from a scheme in which he stole more than $400,000 from the agency.
The guilty plea was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and David P. Berry, Inspector General for the National Labor Relations Board.
Martinez, 53, of Pico Rivera, Calif., pled guilty in the U.S. District Court for the District of Columbia to charges of wire fraud and aggravated identity theft. Under federal sentencing guidelines, he faces a likely range of 33 to 41 months in prison for wire fraud and an additional mandatory two-year prison term for aggravated identity theft. He also has agreed to pay $434,823 in restitution to the NLRB and is subject to a forfeiture money judgment. The Honorable Randolph D. Moss scheduled sentencing for Nov. 6, 2017.
The NLRB is an independent federal agency. Among its responsibilities, the NLRB acts to prevent and remedy unfair labor practices committed by private sector employers and unions. Employees, union representatives, and employers who believe that their rights under the National Labor Relations Act have been violated may file charges alleging unfair labor practices at their nearest NLRB regional office. When the NLRB successfully litigates or settles a case on behalf of aggrieved workers (litigants known as “discriminatees”), monetary damages are paid by the employer or union, or through the NLRB. The NLRB refers to such payments as “back pay.”
According to the government’s evidence, Martinez carried out his scheme from December 2010 and continued it through October 2015, when he was placed on administrative leave by the agency and ultimately discharged. During that time, he was a compliance officer at the NLRB’s Region 21 office in downtown Los Angeles. In that role, his responsibilities included disbursing back pay to discriminatees in the Los Angeles area.
As part of the scheme, Martinez created fictitious discriminatees in real cases in which back pay was owed. He invented names for the discriminatees and paired the fabricated names with real Social Security numbers for other people. Then he created fictitious amounts of back pay and diverted this money to his own personal bank accounts. In order to generate the money, Martinez diverted the full amount of money due to legitimate discriminatees, who received nothing, or skimmed money from legitimate discriminatees, reducing the amount paid to them.
All told, in his guilty plea, Martinez admitted that he diverted back pay funds that nine employers paid to the NLRB and that he should have paid to victims. The NLRB has since engaged in remedial efforts.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Inspector General Berry commended the work of those who investigated the case from the FBI’s Washington Field Office and the NLRB’s Office of the Inspector General. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas, who handled forfeiture issues, and Paralegal Specialists Jessica Mundi and Christopher Toms. Finally, they commended the work of Assistant U.S. Attorney Denise A. Simmonds, who investigated and prosecuted the matter.
Former Bakersfield Union Officer Sentenced to 21 Months for EmbezzlementRead the Press Release
Bakersfield, Calif. —Edward Padilla, 56, of Bakersfield, was sentenced today to 21 months in prison for his embezzlement of union funds, U.S. Attorney Phillip A. Talbert announced.
Chief U.S. District Judge Lawrence J. O’Neill also ordered Padilla to pay $168,780.22 in restitution to the union.
According to court documents, from at least September 2012 to on or about December 31, 2014, while Padilla was the Secretary Treasurer/Business Manager of the Bakersfield office of a construction workers’ union, he embezzled approximately $168,780.22 from the union in the form of unearned salary checks, unauthorized sick leave payments, and personal expenditures on his union credit cards.
This case was the product of an investigation by the United States Department of Labor, Office of Labor-Management Standards. Assistant United States Attorney Angela Scott prosecuted the case.
Former Aide at Prince George’s County Elementary School Sentenced to 75 Years in Federal Prison for Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – US District Judge Deborah K. Chasanow sentenced Deonte Carraway, age 23, of Glenarden, Maryland, to 75 years in federal prison followed by a lifetime of supervised release for 15 counts of sexual exploitation of a minor to produce child pornography, involving 12 minor victims ranging in age from nine to 13 years old. According to court documents, Carraway was an assistant at Judge Sylvania Woods Elementary School in Prince George’s County.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the 15-count superseding indictment, from October 11, 2015 through February 1, 2016, Carraway coerced and persuaded multiple children to engage in sexually explicit conduct in order to produce videos of that conduct. According to the plea agreement, the videos produced include Carraway engaging in sexual activity with victims, as well as the victims engaging in sexually explicit conduct at Carraway’s direction.
According to court documents, Carraway met several of the victims at the school where he worked, and other victims reported that Carraway recruited them from his choir group. Prince George’s County Police arrested Carraway on February 4, 2016, and he has been detained since his arrest.
This case was investigated by the FBI Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat sex crimes involving children. The task force consists of members from ten state and federal law enforcement agencies.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Kristi N. O’Malley and Daniel C. Gardner who prosecuted the case.
Eleventh Circuit Affirms Conviction and Sentence of Pinellas County Man for Terrorist PlotRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that the United States Court of Appeals for the Eleventh Circuit has affirmed the conviction and sentence of Sami Osmakac (30, Pinellas Park) for attempted use of weapons of mass destruction and possession of a fully automatic firearm. A federal jury found him guilty in June 2014. In November 2014, U.S. District Judge Mary S. Scriven sentenced Osmakac to 40 years’ imprisonment.
According to testimony and evidence presented at trial, on January 7, 2012, as part of a terrorist plot, Osmakac attempted to use weapons of mass destruction, including a car bomb, grenades, and a suicide explosive, at two locations in the Tampa Bay area, specifically; MacDinton’s Irish Pub and the Seminole Hard Rock Casino. Additionally, on January 7, 2012, Osmakac possessed a machinegun without the firearm being registered to him on the National Firearms Registration and Transfer Record.
On appeal, Osmakac argued that his surveillance under the Foreign Intelligence Surveillance Act (FISA) had violated the law, that a misstatement by the government during closing arguments had made his trial unfair, and that the district court should have imposed a lower sentence based on the government’s purported sentencing-factor manipulation.
The United States Court of Appeals for the Eleventh Circuit rejected each of these arguments. The evidence at trial, the Court observed, had established that, as early as December 2010, Osmakac had “demonstrated a commitment to Islamic extremism.” As to the FISA argument, the Court held that the surveillance of Osmakac pursuant to FISA had been proper and constitutional. The Court also held that the government’s misstatement in closing argument had been corrected by the district court and had been counteracted by the “substantial evidence of Osmakac’s guilt.” Finally, the Court held that the district court had correctly rejected Osmakac’s sentencing-factor manipulation argument because Osmakac, not the government, had “initiated and greatly escalated the planned terrorist attack by asking” to use weapons of mass destruction as part of his violent plot. The Court further noted that, even though Osmakac had “multiple chances” to decline to use a car bomb, “he never did, even after multiple warnings.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted in the district court by Assistant United States Attorney Sara C. Sweeney and Trial Attorney Clement McGovern from the National Security Division at the Department of Justice. The appeal was handled by Assistant United States Attorneys Cherie L. Krigsman, David P. Rhodes, and Sara C. Sweeney.
District Man Pleads Guilty to Sexually Assaulting WomanRead the Press Release
WASHINGTON – Darnell Franklin, 27, of Washington, D.C., pled guilty today to a charge of third-degree sexual abuse for groping a stranger after pushing her into the back seat of a car, announced U.S. Attorney Channing D. Phillips.
Franklin pled guilty in the Superior Court of the District of Columbia under what is known as the Alford doctrine. Under an Alford plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction. The Honorable Hiram E. Puig-Lugo scheduled sentencing for Oct. 27, 2017. Once released from prison, Franklin will be required to register as a sex offender for a 10-year period and will be on supervised release for three years.
According to the government’s evidence, on April 22, 2017, at about 7 p.m., Franklin approached the victim – a total stranger – inside a store at 35th and Clay Streets NE, where he tried to engage her in small talk and told her that she was pretty. The victim told Franklin that she had a boyfriend, concluded her business in the store, and left.
Franklin then followed the victim outside, to a car-for-hire that was waiting to drive her home. As the victim was getting into the back seat of that car, Franklin pushed her in, got in beside her and began fondling her as she tried to fight him off. The driver saw what was going on and got out of the car to come to the victim’s aid. As the driver neared the back door of his car, Franklin fled down the street. The driver and the victim saw some nearby officers with the Metropolitan Police Department (MPD) and told them what had happened.
The MPD officers spotted Franklin, and with other officers, chased and caught him.
In announcing the plea, U.S. Attorney Phillips praised the work of officers from MPD’s Sixth District and from MPD’s Sexual Assault Unit. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams and Victim/Witness Advocate Veronica Vaughan. Finally, U.S. Attorney Phillips commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Diamond Bar Man Sentenced to 3 Months in Federal Prison for Smuggling ED Drugs Sold as ‘Herbal Enhancement’ Products Without PrescriptionsRead the Press Release
LOS ANGELES – A Diamond Bar man who illegally imported the active ingredients used in erectile dysfunction drugs such as Viagra and Cialis and repackaged the drugs for sale as herbal sexual enhancement products was sentenced today to three months in federal prison followed by six months of home detention.
Joseph Jinn, also known as Tzong Hwan Jinn, 60, was sentenced this afternoon by United States District Judge Christina A. Synder for conspiring to bring the drugs into the United States by means of false statements. Judge Snyder agreed with the government that a custodial sentence was warranted because of the problem posed by the importation of the pharmaceuticals from China, which defendant brought into the U.S. marketplace undetected and unregulated.
According to court documents, Jinn admitted being part of a scheme that imported Tadalafil, Sildenafil and Dapoxetine – the active ingredients in pharmaceutical medications such as Viagra and Cialis – by means of false claims to customs officials that the multi-kilogram shipments were “cooked powder and tools,” “Chinese bread baking mixture,” and other innocuous materials. U.S. Customs and Border Protection officers intercepted some of the shipments, which had a cumulative value of nearly $550,000.
Jinn admitted in court that he and his co-conspirators repackaged and sold the illegally imported drugs as “herbal supplement sexual enhancers.” The products were sold without the necessary prescriptions required by regulations enforced by the U.S. Food and Drug Administration, which had previously warned Jinn’s company that it was engaged in illegal sales.
According to the plea agreement, the FDA “issued public warnings regarding these sexual supplements because they contain ingredients that can interact with other drugs in dangerous ways and may lower blood pressure to unsafe levels.”
The products marketed by Jinn and his co-conspirators were sold in storefronts and over the internet.
As part of his plea agreement, Jinn agreed to forfeit to the United States approximately $105,000 that was seized from three bank accounts during the investigation.
The FDA has warned consumers about numerous over-the-counter products that claim to be “herbal,” but in fact contain hidden active ingredients.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Food and Drug Administration, Office of Criminal Investigations; the Los Angeles Police Department; and U.S. Customs and Border Protection.
The case was prosecuted by Assistant United States Attorneys Vicki Chou and Jennie L. Wang of the Cyber and Intellectual Property Crimes Section.