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Wednesday 28 June 2017
Los Angeles Hospital Agrees to Pay $42 Million to Settle Alleged False Claims Act Violations Arising from Improper Payments to PhysiciansRead the Press Release
PAMC Ltd., and Pacific Alliance Medical Center Inc., which together own and operate Pacific Alliance Medical Center, an acute care hospital located in Los Angeles, California, have agreed to pay $42 million to settle allegations that they violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. Of the total settlement amount, $31.9 million will be paid to the Federal Government, and $10 million will be paid to the State of California.
The settlement announced today resolves allegations brought in a whistleblower lawsuit that the defendants submitted false claims to the Medicare and MediCal Programs for services rendered to patients referred by physicians with whom the defendants had improper financial relationships. These relationships took the form of (1) arrangements under which the defendants allegedly paid above-market rates to rent office space in physicians’ offices, and (2) marketing arrangements that allegedly provided undue benefit to physicians’ practices. The lawsuit alleged that these relationships violated the Anti-Kickback Statute and the Stark Law, both of which restrict the financial relationships that hospitals may have with doctors who refer patients to them.
“This is another example of how the False Claims Act whistleblower provisions can help protect the public fisc,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This recovery should help to deter other health care providers from entering into improper financial relationships with physicians that can taint the physicians’ medical judgment, to the detriment of patients and taxpayers.”
The lawsuit was filed by Paul Chan, who was employed as a manager by one of the defendants, under the qui tam provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery. The United States may intervene in the lawsuit, or, as in this case, the whistleblower may pursue the action. Mr. Chan will receive over $9.2 million as his share of the federal recovery.
“Federal law prohibits improper financial relationships between hospitals that receive federal health care funds and medical professionals – this is to protect the doctor-patient relationship and to ensure the quality of care provided,” said Acting U.S. Attorney Sandra R. Brown for the Central District of California. “Patients deserve to know their doctors are making health care decisions based solely on medical need and not for any potential financial benefit.”
“This settlement is a warning to health care companies that think they can boost their profits by entering into improper financial arrangements with referring physicians,” said Special Agent in Charge Christian J. Schrank of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to crack down on such deals, which work to undermine impartial medical judgement, drive up health care costs, and corrode the public’s trust in the health care system.”
The case, United States ex rel. Chan v. PAMC, Ltd., et al., Case No. 13-cv-4273 (C.D. Cal.), was monitored by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Central District of California, and HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Los Angeles Hospital Agrees to Pay $42 Million to Settle Allegations Arising from Improper Financial Arrangements with PhysiciansRead the Press Release
LOS ANGELES – The owners of Pacific Alliance Medical Center, an acute care hospital located in the Chinatown District of Los Angeles, have agreed to pay $42 million to settle allegations that they were involved in improper financial relationships with referring physicians, the Justice Department announced today.
PAMC, Ltd. and Pacific Alliance Medical Center Inc., the owners of the hospital, agreed to pay the settlement to resolve a lawsuit that alleged they had violated the False Claims Act by submitting false claims to the Medicare and MediCal programs.
The settlement, which was finalized this week, calls for PAMC Ltd. and Pacific Alliance Medical Center Inc. to pay $31.9 million to the United States and $10 million to the State of California.
The settlement resolves allegations brought in a “whistleblower” lawsuit that the defendants submitted or caused to be submitted false claims to Medicare and MediCal for services rendered to patients who had been referred by physicians with whom the defendants had improper financial relationships.
These improper relationships took the form of (1) arrangements under which the defendants allegedly paid above-market rates to rent office space in physicians’ offices, and (2) marketing arrangements that allegedly provided undue benefit to physicians’ practices.
The lawsuit alleged that these relationships violated the Anti-Kickback Statute and the Stark Law, both of which restrict the financial relationships that hospitals may have with doctors who refer patients to them.
“Federal law prohibits improper financial relationships between hospitals that receive federal health care funds and medical professionals – this is to protect the doctor-patient relationship and to ensure the quality of care provided,” said Acting United States Attorney Sandra R. Brown. “Patients deserve to know their doctors are making health care decisions based solely on medical need and not for any potential financial benefit.”
The whistleblower lawsuit was filed by Paul Chan, who was employed as a manager by one of the defendants, under the qui tam provisions of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. The United States may intervene in the lawsuit, or, as in this case, the whistleblower may pursue the action. Mr. Chan will receive over $9.2 million as his share of the federal recovery.
“This is another example of how the False Claims Act whistleblower provisions can help protect the public fisc,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This recovery should help to deter other health care providers from entering into improper financial relationships with physicians that can taint the physicians’ medical judgment, to the detriment of patients and taxpayers.”
“This settlement is a warning to health care companies that think they can boost their profits by entering into improper financial arrangements with referring physicians,” said Special Agent in Charge Christian J. Schrank of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to crack down on such deals, which work to undermine impartial medical judgement, drive up health care costs, and corrode the public’s trust in the health care system.”
The case, United States ex rel. Chan v. PAMC, Ltd., et al., CV13-4273 (C.D. Cal.), was monitored by the United States Attorney’s Office, the Civil Division’s Commercial Litigation Branch, and HHS-OIG.
The defendants have until July 7 to make the settlement payments.
The claims settled by this agreement are allegations only, and the defendants did not admit liability in settling the action.
Lockport Man Sentenced in Methamphetamine ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ALLEN GAUTREAUX, age 36, of Lockport, was sentenced today after having previously pleading guilty to one count of conspiring to distribute and to possess with intent to distribute methamphetamine.
U.S. District Judge Sarah S. Vance sentenced GAUTREAUX to 37 months of incarceration, followed by 3 years of supervised release.
According to court documents, GAUTREAUX conspired to distribute between 30 grams and 40 grams of a mixture or substance containing methamphetamine throughout the New Orleans area.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA), the Louisiana State Police (LSP), and the U.S. Marshals Service (USMS) in investigating this matter. Assistant United States Attorney Brandon S. Long was in charge of the prosecution.
Local Restaurant Owner Sentenced on Felon in Possession of Firearms and Ammunition ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Nigel Michael Sandiford, a/k/a “Marvin H. Rogers,” a/k/a “Cecil Price,” age 43, of Columbia, was sentenced today in federal court after earlier pleading guilty to being a felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Senior United States District Judge Cameron McGowan Currie, of Columbia, sentenced Sandiford to 12 months and 1 day imprisonment along with a $5,500.00 fine and $100 special assessment. Sandiford, a native of Trinidad and Tobago, waived deportation proceedings and agreed to be deported immediately following his service of the imposed term of imprisonment.
Evidence presented in court during the March 2017 guilty plea hearing established that after receiving information from New Jersey law enforcement, federal agents obtained and executed a federal search warrant at Sandiford’s Montego Bay restaurant on Parklane Road in Columbia on July 18, 2016. Inside the restaurant, agents located a Mossberg 12 gauge shotgun, a Glock .45 caliber handgun, along with rounds of 12 gauge shotgun shells, .40 caliber ammunition, .45 caliber ammunition, and a 30-round high capacity magazine containing 9mm ammunition. Sandiford admitted to possessing the firearms and ammunition and to having a prior Richland County drug conviction under the alias “Marvin H. Rogers,” as well as prior New York convictions under the alias “Cecil Price.”
Sandiford is prohibited under federal law from possessing firearms and ammunition based upon his prior state convictions, which includes a South Carolina conviction for possession with intent to distribute cocaine and New York convictions for possession of a controlled substance with intent to sell 3rd degree, criminal possession of a weapon 3rd degree – defaced for concealment, and menacing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Drug Enforcement Administration (DEA) and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Justice Department Settles Immigration-Related Discrimination Claim Against Panda ExpressRead the Press Release
WASHINGTON – The Justice Department announced today that it reached a settlement agreement with Panda Restaurant Group, Inc. (Panda Express), a restaurant chain with over 1,800 locations in the United States. The agreement resolves the department’s investigation into whether Panda Express discriminated against non-U.S. citizens in violation of the Immigration and Nationality Act (INA) when reverifying their permission to work.
The department’s investigation concluded that Panda Express unnecessarily required lawful permanent resident workers to re-establish their work authorization when their Permanent Resident Cards expired, while not making similar requests to U.S. citizen workers when their documents expired. The investigation also revealed that Panda Express routinely required other non-U.S. citizen workers to produce immigration documents to reverify their ongoing work authorization despite evidence they had already provided sufficient documentation. The antidiscrimination provision of the INA prohibits such requests for documents when based on an employee’s citizenship status or national origin.
Under the settlement, Panda Express will pay a civil penalty of $400,000 to the United States, establish a $200,000 back pay fund to compensate workers who lost wages due to the company’s practices, train its human resources personnel on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.
“Employers should ensure that their reverification practices comply with laws that protect workers against discrimination,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “The Justice Department applauds Panda Express for its cooperation during this investigation and its commitment to compensating workers who may have lost wages due to its documentary practices.”
Work authorized non-U.S. citizens who lost work at Panda Express between May 31, 2014, and June 28, 2017, due to Panda Express’ documentary practices may be eligible for back pay for the wages they would have earned. For more information, email [email protected].
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected] (link sends e-mail); or visit IER’s English and Spanish websites.
Justice Department Settles Immigration-Related Discrimination Claim Against Panda ExpressRead the Press Release
The Justice Department announced today that it reached a settlement agreement with Panda Restaurant Group, Inc. (Panda Express), a restaurant chain with over 1,800 locations in the United States. The agreement resolves the department’s investigation into whether Panda Express discriminated against non-U.S. citizens in violation of the Immigration and Nationality Act (INA) when reverifying their permission to work.
The department’s investigation concluded that Panda Express unnecessarily required lawful permanent resident workers to re-establish their work authorization when their Permanent Resident Cards expired, while not making similar requests to U.S. citizen workers when their documents expired. The investigation also revealed that Panda Express routinely required other non-U.S. citizen workers to produce immigration documents to reverify their ongoing work authorization despite evidence they had already provided sufficient documentation. The antidiscrimination provision of the INA prohibits such requests for documents when based on an employee’s citizenship status or national origin.
Under the settlement, Panda Express will pay a civil penalty of $400,000 to the United States, establish a $200,000 back pay fund to compensate workers who lost wages due to the company’s practices, train its human resources personnel on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.
“Employers should ensure that their reverification practices comply with laws that protect workers against discrimination,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “The Justice Department applauds Panda Express for its cooperation during this investigation and its commitment to compensating workers who may have lost wages due to its documentary practices.”
Work-authorized, non-U.S. citizens who lost work at Panda Express between May 31, 2014, and June 28, 2017, due to Panda Express’ documentary practices may be eligible for back pay for the wages they would have earned. For more information, email [email protected].
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected] (link sends e-mail); or visit IER’s English and Spanish websites.
Applicants or workers who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Justice Department Settles Immigration-Related Discrimination Claim Against Panda ExpressRead the Press Release
WASHINGTON – The Justice Department announced today that it reached a settlement agreement with Panda Restaurant Group, Inc. (Panda Express), a restaurant chain with over 1,800 locations in the United States. The agreement resolves the department’s investigation into whether Panda Express discriminated against non-U.S. citizens in violation of the Immigration and Nationality Act (INA) when reverifying their permission to work.
The department’s investigation concluded that Panda Express unnecessarily required lawful permanent resident workers to re-establish their work authorization when their Permanent Resident Cards expired, while not making similar requests to U.S. citizen workers when their documents expired. The investigation also revealed that Panda Express routinely required other non-U.S. citizen workers to produce immigration documents to reverify their ongoing work authorization despite evidence they had already provided sufficient documentation. The antidiscrimination provision of the INA prohibits such requests for documents when based on an employee’s citizenship status or national origin.
Under the settlement, Panda Express will pay a civil penalty of $400,000 to the United States, establish a $200,000 back pay fund to compensate workers who lost wages due to the company’s practices, train its human resources personnel on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.
“Employers should ensure that their reverification practices comply with laws that protect workers against discrimination,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “The Justice Department applauds Panda Express for its cooperation during this investigation and its commitment to compensating workers who may have lost wages due to its documentary practices.”
Work-authorized, non-U.S. citizens who lost work at Panda Express between May 31, 2014, and June 28, 2017, due to Panda Express’ documentary practices may be eligible for back pay for the wages they would have earned. For more information, email [email protected].
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected] (link sends e-mail); or visit IER’s English and Spanish websites.
Applicants or workers who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Justice Department Settles Immigration-Related Discrimination Claim Against Panda ExpressRead the Press Release
NOTE: The Settlement Agreement is attached as a PDF.
WASHINGTON – The Justice Department announced today that it reached a settlement agreement with Panda Restaurant Group, Inc. (Panda Express), a restaurant chain with over 1,800 locations in the United States. The agreement resolves the department’s investigation into whether Panda Express discriminated against non-U.S. citizens in violation of the Immigration and Nationality Act (INA) when reverifying their permission to work.
The department’s investigation concluded that Panda Express unnecessarily required lawful permanent resident workers to re-establish their work authorization when their Permanent Resident Cards expired, while not making similar requests to U.S. citizen workers when their documents expired. The investigation also revealed that Panda Express routinely required other non-U.S. citizen workers to produce immigration documents to reverify their ongoing work authorization despite evidence they had already provided sufficient documentation. The antidiscrimination provision of the INA prohibits such requests for documents when based on an employee’s citizenship status or national origin.
Under the settlement, Panda Express will pay a civil penalty of $400,000 to the United States, establish a $200,000 back pay fund to compensate workers who lost wages due to the company’s practices, train its human resources personnel on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.
“Employers should ensure that their reverification practices comply with laws that protect workers against discrimination,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “The Justice Department applauds Panda Express for its cooperation during this investigation and its commitment to compensating workers who may have lost wages due to its documentary practices.”
Work-authorized, non-U.S. citizens who lost work at Panda Express between May 31, 2014, and June 28, 2017, due to Panda Express’ documentary practices may be eligible for back pay for the wages they would have earned. For more information, email [email protected].
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected] (link sends e-mail); or visit IER’s English and Spanish websites.
Applicants or workers who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
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Jicarilla Apache Man Sentenced to Prison for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Rode Lyle Enjady, 38, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 36 months in prison followed by three years of supervised release for his conviction on an assault charge.
Enjady was arrested in Oct. 2016, on an indictment charging him with assault with a dangerous weapon, a knife, with intent to do bodily harm, assault with a dangerous weapon, a metal weight, with intent to do bodily harm, assault resulting in serious bodily injury, and assault of an intimate partner by strangling or suffocating. According to the indictment, Enjady committed the crimes between Feb. 11, 2016 and Feb. 17, 2016, on the Jicarilla Apache Reservation in Rio Arriba County, N.M.
On Feb. 7, 2017, Enjady pled guilty to Count 3 of the indictment charging him with assault resulting in serious bodily injury. In entering the guilty plea, Enjady admitted that between Feb. 11, 2016 and Feb. 17, 2016, he physically abused his intimate partner, a Jicarilla Apache woman, by physically assaulting her. Enjady also admitted that he caused the victim to lose a tooth, suffer from bruising to the face, head, abdomen, back, pubic region, and legs as well as suffer from stab wounds to her legs.
This case was investigated by the Jicarilla Apache Tribal Police Department and was prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
This case was brought 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 American 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.
Jacksonville Heroin Dealer Sentenced to PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Cordelle Joseph (45, Republic of Trinidad and Tobago) to six years and three months in federal prison for possessing more than 100 grams of heroin with the intent to distribute it. He pleaded guilty on May 13, 2016.
According to court documents, during January 2016, a narcotics task force comprised of detectives from the Jacksonville Sheriff’s Office and special agents from the DEA and the FBI began investigating Joseph and others, who were suspected of supplying heroin in Jacksonville. The officers intercepted and arrested Joseph after he had flown to Los Angeles and returned to Jacksonville aboard a Greyhound bus; he was transporting almost a kilogram of heroin in his luggage. After his arrest, Joseph admitted that he had traveled to California to purchase heroin and that he had been living in the United States under a false identity. Following his prison sentence, Joseph will be deported.
This case was investigated by the Jacksonville Sheriff’s Office, the Drug Enforcement Administration, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Frank Talbot.
Indictment: Former Highway Patrol Trooper Used Excessive ForceRead the Press Release
TOPEKA, KAN. - A federal grand jury returned an indictment Wednesday charging a former Kansas Highway Patrol trooper with violating an individual’s civil rights by using excessive force.
The indictment was announced by Thomas E. Wheeler, II, Acting Assistant Attorney General for the Civil Rights Division, Tom Beall, U.S. Attorney for the District of Kansas and Darrin E. Jones, Special Agent in Charge of the Kansas City Field Office of the FBI.
The indictment alleges that James Carson, 43, Independence, Kan., while acting under color of law as a trooper with the Kansas Highway Patrol, used excessive force amounting to punishment against a victim identified in court records as R.T. The indictment further alleges that Carson’s use of excessive force resulted in bodily injury to R.T. The crime is alleged to have occurred June 25, 2013, in Labette County, Kan.
If convicted on the civil rights charge, Carson faces a maximum sentence of 10 years in prison and a $250,000 fine.
The case is being investigated by the FBI and the Kansas Bureau of Investigation. Assistant U.S. Attorney Jared Maag and Trial Attorney Rose Gibson of the Civil Rights Division’s Criminal Section are prosecuting.
OTHER INDICTMENTS
Richard A. James, Jr., 26, an inmate in custody of the Bureau of Prisons, is charged with assaulting a BOP unit manager. The crime is alleged to have occurred June 1, 2017, in Leavenworth County, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Joshua R. Sawyer, 27, who is in custody in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred May 9, 2017, in Topeka, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Michael Louis Lipp, 63, Lawrence, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Aug. 25, 2016, in Lawrence, Kan.
If convicted, he faces not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The Douglas County Sheriff’s Office investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Michael Allen Carter, 29, Salina, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred May 30, 2017, in Salina, Kan.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hobbs Man Facing Federal Drug Trafficking Charge Arising Out of Seizure of 13 Pounds of CocaineRead the Press Release
ALBUQUERQUE – This morning, a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Eric Angel Estrada, 31, of Hobbs, N.M., with a cocaine trafficking offense. Estrada was remanded into custody pending trial, which has yet to be scheduled.
Estrada was arrested on June 22, 2017, on a criminal complaint charging him with possessing approximately six kilograms (13.2 pounds) of cocaine in Otero County, N.M. According to the complaint, Estrada was arrested after U.S. Border Patrol agents at the U.S. Border Patrol checkpoint on Highway 54, allegedly seized five bundles containing approximately six kilograms of cocaine from Estrada’s vehicle.
If convicted of the charge in the criminal complaint, Estrada faces a statutory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Alamogordo station of the U.S. Border Patrol and the Las Cruces office of Homeland Security Investigations. Special Assistant U.S. Attorney Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Green Cove Springs Man Sentenced for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced James Donald Jacola (54, Green Cove Springs) to five years in federal prison for receiving images and videos depicting the sexual abuse of children over the Internet. He must also serve a 10-year term of supervised release, register as a sex offender, and forfeit his computer equipment.
According to court documents and information disclosed in court, FBI agents began an online undercover investigation to identify individuals who were using a particular website to access images and videos depicting child pornography. The agents determined that Jacola, using the pseudonym “mooncalf,” had accessed this website. On March 10, 2016, a search warrant was executed at Jacola’s residence and agents seized two computers. Forensic analyses of the computers revealed that they contained at least 3 videos and at least 784 images depicting child pornography. One of these videos depicted a toddler being molested; it had been downloaded and viewed twice by Jacola on the day before the agents executed the search warrant.
This case was investigated by the Federal Bureau of Investigation and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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.
Gans Man Sentenced to 87 Months for Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JAMES WESLEY JACOBS, age 38, of Gans, Oklahoma, was sentenced to 87 months imprisonment, and 3 years of supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), and Title 18, United States Code, Section 2; and for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), as to each count to run concurrently.
The Indictment alleged that on or about August 30, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleged that on or about August 30, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms which had been shipped and transported in interstate and foreign commerce.
The charges arose from an investigation by the District 27 Drug Task Force and the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Timothy Hammer represented the United States.
Gameday Entertainment Chairman of the Board Sentenced to Four Years in Federal Prison for Defrauding San Antonio Victim of Millions of DollarsRead the Press Release
In San Antonio today, 49-year-old investment counselor Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), was sentenced to four years in federal prison for defrauding a San Antonio victim of millions of dollars announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term. United States District Judge Fred Biery ordered that Banks pay $7.5 million restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Biery also ordered Banks, who is currently on bond, to report to federal authorities as early as August 28, 2017, to begin serving his sentence.
According to court records, Banks encouraged the victim to loan $7.5 million to Gameday in 2012. Subsequently, Banks encouraged the victim to personally guarantee another $6 million loan made to Gameday by Comerica Bank in 2013. During this time frame, Banks was Chairman of the Board of Gameday and personally benefitted, in the form of millions of dollars in loans and commissions, from the proceeds of these loans made to Gameday.
On April 3, 2017, Banks pleaded guilty to one count of wire fraud. By pleading guilty, Banks admittedly manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction. Furthermore, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions. On June 26, 2013, Banks also caused two pages relating to the $6M loan guarantee and subordination agreements, which contained his victim’s signature, to be faxed from San Antonio to Bank’s employees in California and Comerica bank employees in California.
The FBI conducted this investigation. Assistant United States Attorney Gregory J. Surovic and Tom Moore prosecuted this case on behalf of the Government.
Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Jose Perez-Verdugo, age 37, a citizen of Mexico, was previously deported from the United States to Mexico on three prior occasions in August 2008, September 2013, and March 2014. He is alleged to have illegally re-entered the United States sometime after March 2014, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Perez-Verdugo faces a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
Jose Arguelles-Varillas, age 53, a citizen of Mexico, was previously deported from the United States to Mexico in May 2012. He is alleged to have illegally re-entered the United States sometime after May 2012, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers. In May 2012, he was convicted in the Third District Court, Salt Lake County, State of Utah for child abuse and attempted forcible sexual abuse, offenses which subject him to enhanced penalties in the current case.
Because of Arguelles-Varillas’ previous conviction, under federal law he faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
Maximino Mota-Ortiz, age 43, a citizen of Dominican Republic, was previously deported from the United States to the Dominican Republic in May 1997. He is alleged to have illegally re-entered the United States sometime after May 1997, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers. In July 1995, he was convicted in the Commonwealth of Massachusetts, Middlesex Superior Court, for trafficking in a controlled substance, offenses which subject him to enhanced penalties in the current case.
Because of Mota-Ortiz’s previous conviction, under federal law he faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Francisco Michaca-Dominguez, age 41, a citizen of Mexico, was previously deported from the United States on three separate occasions on January 2006, August 2013, and December 2013. He is alleged to have illegally re-entered the United States in Monroe County, Pennsylvania after he was arrested for a summary offense on April 30, 2017.
Under federal law, Michaca-Dominguez faces a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
Assistant U.S. Attorney Todd K. Hinkley is prosecuting the case.
The cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO).
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Four More Indicted in Conspiracy to Lure Robbery Victims with Online Ads for EscortsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that four additional defendants were indicted by a federal grand jury today for their roles in a conspiracy to use online escort and massage ads to lure robbery victims.
Rodney E. Brock, 20, of Blue Springs, Mo., Melissa C. Cummins, 23, and Daphne J. Fruean, 37, both of Independence, Mo., and Michele R. Shatto, 34, of Kansas City, Mo., were charged in a 12-count superseding indictment returned by a federal grand jury in Kansas City, Mo. The second superseding indictment replaces a Nov. 1, 2016, superseding indictment and contains additional defendants and charges (bringing the total number of defendants to 10). Today’s second superseding indictment also includes Kenneth W. Sexson, 33, of Sugar Creek, Mo., Ray J. Mahurin, 34, of Blue Springs, Serina M. Campos, 23, of Independence, with the same charges contained in the previous indictment, but does not include three co-defendants who have pleaded guilty.
Today’s indictment alleges that Sexson, Brock, Cummins, Fruean and Shatto participated in a conspiracy to commit armed robbery from April 1, 2015, to June 7, 2016. They allegedly used several websites (including craigslist.org, backpage.com and skout.com) to make connections with their victims and arrange meetings at local hotels, residences and apartments. When customers arrived for the meetings, the indictment says, conspirators would be lying in wait, armed with firearms, and rob the customers.
The indictment specifically refers to seven armed robberies that occurred in September and October 2015 at various locations in Kansas City, Mo., Independence, and North Kansas City, Mo. Six of the robberies in October 2016 were included in the earlier indictment. A Sept. 26, 2016, robbery at an Independence hotel is added in the current indictment.
In one of those robberies, a victim jumped from his moving vehicle on the highway in fear of his life and was transported to the hospital. According to court documents, conspirators lured a victim to meet Cummins at a Kansas City, Mo., apartment on Oct. 9, 2015. When he arrived at the apartment, court documents say, he was greeted at the door by Cummins. Sexson, Brock and a third person, armed with handguns, allegedly pulled him into a room and threw him on the bed. They demanded his phone and money, then took him to his vehicle (a Chevrolet Silverado pickup) and searched it. Afterwards, Brock directed the victim into the passenger seat and drove off in the vehicle. While driving, Brock allegedly demanded the title to the vehicle and threatened to shoot the victim, who jumped from the moving vehicle in the area of I-670 and 71 Highway in fear for his life.
Brock was arrested on Nov. 5, 2015, when an Independence police officer saw him driving a stolen vehicle. Officers attempted to stop the vehicle, but Brock began to flee at a high rate of speed, driving into opposite lanes of traffic to avoid stop sticks. After a lengthy pursuit into Kansas, Brock bailed from the vehicle and attempted to flee on foot. He entered a nearby body of water, and was later recovered from that body of water. Inside the stolen vehicle, officers discovered a Smith & Wesson .40-caliber semi-automatic handgun.
The indictment charges Sexson, Mahurin and Campos together in one count of being unlawful users of a controlled substance who aided and abetted each other to possess firearms and ammunition. The indictment alleges they were in possession of a Mossberg 12-gauge shotgun, a Marlin 30-30 caliber rifle, a Glock 9mm pistol, a Springfield 9mm pistol, and ammunition.
In addition to the conspiracy, Sexson, Brock and Cummins are charged together with one count of aiding and abetting an armed robbery. Sexson and Brock are charged together with one count of aiding and abetting an armed robbery. Sexson and Fruean are charged together with one count of aiding and abetting an armed robbery.
Sexson is also charged with three additional counts of aiding and abetting an armed robbery, one count of brandishing a firearm during a crime of violence and one count of being a felon in possession of a firearm.
Brock is also charged with one count of carjacking (related to the Oct. 9, 2015, armed robbery) and one count of being an unlawful user of a controlled substance while in possession of a firearm. Brock allegedly possessed a Smith & Wesson .40-caliber semi-automatic pistol when he was arrested on Nov. 5, 2015.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, and the Independence, Mo., Police Department, with assistance from the Kansas City, Mo., Police Department, the North Kansas City, Mo., Police Department and the Blue Springs, Mo., Police Department.
Four Members of Methamphetamine Distribution Ring Sentenced to Federal PrisonRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of four individuals for their roles in a methamphetamine distribution conspiracy. MIGUEL RIOS-QUINTERO, 26, HERNESTO JESUS MONTES, 22, ERIVAN ARGENIX GOMEZ, 21, and HANNAH LEE DALTON, 26, all pleaded guilty to one count of conspiracy to distribute methamphetamine and have been sentenced before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
According to the defendants’ guilty pleas and documents filed in court, in March 2016, the four defendants conspired to distribute methamphetamine throughout the Leech Lake Indian Reservation and surrounding areas. On March 8, 2016, law enforcement officers conducted two simultaneous traffic stops of two vehicles traveling together from the Leech Lake Indian Reservation. As a result of the traffic stops on the two vehicles - occupied by RIOS-QUINTERO, MONTES, and GOMEZ - law enforcement officers seized more than 1,400 grams of methamphetamine that had been thrown into a wooded area, approximately 3.5 pounds of marijuana, and more than $5,000 in cash. That same day, upon execution of a search warrant of co-defendant DALTON’S residence, law enforcement officers recovered an additional 452 grams of methamphetamine.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department, FBI Headwaters Safe Trails Task Force, Paul Bunyan Drug Task Force, Leech Lake Police Department, Minnesota Bureau of Criminal Apprehension, and the Bureau of Indian Affairs.
Assistant U.S. Attorney Deidre Y. Aanstad prosecuted this case.
Defendant Information:
MIGUEL RIOS-QUINTERO, 26
Minneapolis, MN
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
Sentenced:
-
108 months in prison
- Three years of supervised release
HERNESTO JESUS MONTES, 22
Brooklyn Park, Minn.
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
Sentenced:
-
60 months in prison
- Three years of supervised release
ERIVAN ARGENIX GOMEZ, 21
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
Sentenced:
-
78 months in prison
- Three years of supervised release
HANNAH LEE DALTON, 26
Cass Lake, Minn.
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
Sentenced:
-
78 months in prison
-
Three years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former WellCare, Inc. General Counsel Pleads Guilty to Making A False Statement to Florida Medicaid ProgramRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that WellCare's former General Counsel, Thaddeus M.S. Bereday (52, Tampa) has pleaded guilty to one count of making a false statement to the Florida Medicaid program. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
On March 2, 2011, Bereday and four other individuals, Todd S. Farha, Paul L. Behrens, William L. Kale, and Peter E. Clay, were indicted on various federal criminal violations relating to a scheme to defraud the Florida Medicaid program (from the summer of 2003 through the fall of 2007) by making false and fraudulent statements relating to expenditure information for behavioral health care services.
WellCare operates Health Maintenance Organizations (“HMOs”) in several states targeted to government-sponsored health care benefit programs like Medicaid. Two WellCare HMOs operating in Florida, StayWell and Healthease, contracted with the Agency for Health Care Administration (“AHCA”), the agency that administers the Medicaid program in Florida, to provide recipients with an array of services, including behavioral health services.
In 2002, Florida enacted a profit-capping statute that required Florida Medicaid HMOs to expend 80% of the Medicaid premium paid for certain behavioral health services on the provision of those services. If the HMO expended less than 80% of the premium, the difference was required to be returned to AHCA. The indictment alleged the ways in which the defendants falsely and fraudulently schemed to submit inflated expenditure information in the company’s annual reports to AHCA in order to reduce the WellCare HMOs’ contractual payback obligations for behavioral health care services.
On May 5, 2009, the United States filed related charges in an Information and Deferred Prosecution Agreement ("DPA") against WellCare. Pursuant to that DPA, WellCare was required to pay $40 million in restitution, forfeit another $40 million to the United States, and cooperate with the government’s criminal investigation. The company complied with all of the requirements of the DPA. As a result, the government filed a motion requesting that the Court dismiss the Information against WellCare, which the Court granted.
After a 13-week trial in 2013, a jury returned verdicts against four individuals. Todd S. Farha of Tampa (former WellCare CEO) was found guilty of two counts of health care fraud; Paul L. Behrens of Odessa (former WellCare CFO) was found guilty of two counts of making false statements relating to health care matters and two counts of health care fraud; William L. Kale of Oldsmar (former WellCare VP) was found guilty of two counts of health care fraud; and Peter E. Clay of Wellesley, Massachusetts (former WellCare VP) was found guilty of two counts of making false statements to a law enforcement officer.
Bereday did not participate in the 2013 trial due to health-related issues. His case was scheduled to be tried in September of this year. As part of his plea, Bereday admitted that he, along with others, knowingly and willfully had caused the submission of Healthease’s false 2006 expenditure report to the Florida Medicaid program.
This case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General, the Federal Bureau of Investigation, and the Florida Attorney General's Medicaid Fraud Control Unit. It was prosecuted by Assistant United States Attorneys Jay Trezevant and Cherie Krigsman, along with Department of Justice Senior Litigation Counsel John A. Michelich and Special Assistant United States Attorney John Bowers.
Former VA Nurse Re-Sentenced for Stealing and Tampering with Patient MedicationsRead the Press Release
ALBANY, NEW YORK – Nathan Baum, age 32, of East Greenbush, New York, was sentenced today to serve 38 months in prison for tampering with a consumer product and obtaining controlled substances by deception.
The announcement was made by United States Attorney Richard S. Hartunian; Special Agent in Charge Donna L. Neves of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; and Special Agent in Charge Jeffrey Ebersole of the U.S. Food and Drug Administration Office of Criminal Investigations, New York Field Office.
Senior United States District Judge Lawrence E. Kahn also imposed a $2,000 fine and a 3-year term of supervised release, to begin after Baum’s release from prison.
Baum was originally sentenced, on June 22, 2016, to 82 months in prison. With the government’s consent, the United States Court of Appeals for the Second Circuit vacated the sentence in May 2017 and remanded the case for resentencing. Baum has been in custody since his original sentencing date.
Baum pled guilty in February 2016 to tampering with a consumer product and obtaining controlled substances by deception and subterfuge. Baum, a licensed practical nurse who worked at the hospice ward of the Veterans Affairs Medical Center, in Albany, improperly accessed syringes that contained oxycodone hydrochloride. These syringes were stored in locked containers that Baum was able to access using his individually assigned password. Between April 8, 2014 and May 16, 2014, Baum removed the oxycodone hydrochloride from at least 25 syringes and replaced it with haloperidol.
Oxycodone hydrochloride, a Schedule II controlled substance, is a highly addictive narcotic analgesic used to treat moderate to severe pain. Haloperidol, often marketed as Haldol, is an anti-psychotic medication used to treat certain mental/mood disorders and to treat uncontrolled movements or agitation.
This case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General and the Food and Drug Administration Office of Criminal Investigations, and was prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.
Former State Street Executive Pleads Guilty in Scheme to Defraud Clients Through Secret Trading CommissionsRead the Press Release
BOSTON – A former executive of Boston-based State Street Corporation pleaded guilty today to conspiring to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades. A second executive of the bank has agreed to plead guilty to participating in the conspiracy at a hearing scheduled for later this month.
Edward Pennings, 46, of Surrey, England, pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 11, 2017.
According to admissions made in connection with the guilty plea, Pennings, a former senior managing director of State Street Corporation and the head of its Portfolio Solutions Group for Europe, the Middle East and Africa, conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees the clients had agreed to pay the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions.
Richard Boomgaardt, 44, of Sevenoaks, England, a former managing director of State Street who reported to Pennings, was separately charged on June 6, 2017, with one count of conspiracy to commit securities fraud and wire fraud. Boomgaardt is scheduled to plead guilty on July 12, 2017 before U.S. District Court Judge Denise J. Casper.
In March 2016, Pennings and Ross McLellan, 45, of Hingham were charged in a five-count indictment. The charges against McLellan, a former executive vice president of State Street and president of its broker-dealer subsidiary in the United States, are pending.
Acting United States Attorney William D. Weinreb of the District of Massachusetts, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Stephen E. Frank, Chief of Weinreb’s Economic Crimes Unit, and Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section are prosecuting the case.
The charges contained in the charging documents are merely accusations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former State Street Corporation Executive Pleads Guilty in Scheme to Defraud Clients Through Secret Trading CommissionsRead the Press Release
A former executive of Boston-based State Street Corporation pleaded guilty today to conspiring to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William D. Weinreb of the District of Massachusetts and Special Agent in Charge Harold M. Shaw of the FBI’s Boston Field Office made the announcement.
Edward Pennings, 46, of Surrey, England, pleaded guilty before U.S. District Judge Leo T. Sorokin of the District of Massachusetts to one count of conspiracy to commit securities fraud and wire fraud. Pennings is scheduled to be sentenced on December 11.
According to admissions made in connection with the guilty plea, Pennings, a former senior managing director of the bank and the head of its Portfolio Solutions Group for Europe, the Middle East and Africa, conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees the clients had agreed to pay the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions.
In March 2016, Pennings was charged in a five-count indictment along with Ross McLellan, 45, of Hingham, Massachusetts. The charges against McLellan, a former executive vice president of State Street and president of its broker-dealer subsidiary in the U.S., remain pending.
The charges contained in an indictment are merely accusations, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section and Economic Crimes Unit Chief Stephen E. Frank of the District of Massachusetts.
Former San Antonio Attorney Todd Prins Pleads Guilty to Wire FraudRead the Press Release
Former San Antonio lawyer Todd Prins faces up to 20 years in federal prison and a fine of up to $250,000 after pleading guilty earlier today to one count of wire fraud announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States Magistrate Judge John Primomo, Prins, age 51, admitted that from August 16, 2013, to December 22, 2016, he defrauded multiple victims of their money by means of false and fraudulent pretenses, representations and promises.
According to court records, Prins led clients to believe that a lawsuit Prins filed on their behalf was successful, resulting in a judgment in their favor. To convince his clients, Prins fraudulently created forged court rulings, opinions and orders, purportedly issued by various state and federal courts bearing the signatures of the respective judges. Those courts included Bexar County District Court, the Texas Fourth Court of Appeals, the Texas Supreme Court, United States District Court for the Western District of Texas, and the United States Courts of Appeals for the Fifth and Seventh Circuits.
Furthermore, Prins caused an entity which had purchased real estate in a foreclosure sale conducted by Prins’ law firm to wire transfer approximately $2,400,000 to Prins’ law firm’s trust account. Rather than maintaining those funds in his trust account for proper distribution, Prins caused approximately $2,000,000 of that money to be wire transferred to another bank account he controlled. During October and November 2016, Prins misappropriated and converted to his own use approximately $800,000 of the $2,400,000. Prins, having improperly transferred the $2,000,000 from his trust account to his other account, falsely told a principal of his client-seller that the purchaser’s $2,400,000 was still in his trust account. To support that false claim, Prins fraudulently created and sent by e-mails and text messages what appeared to be screen shots of the trust account showing the balance in the trust account to be in excess of $3,000,000. In fact, the true balance of the trust account was less than $1,000, having been $2,041.17 prior to the receipt of the $2,400,000.
Prins remains on bond pending sentencing. Sentencing is scheduled for September 18, 2017, before Senior United States District Judge David A. Ezra.
The FBI conducted this investigation. Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.
Former Packaged Seafood Executive Pleads Guilty to Price FixingRead the Press Release
A former senior vice president of sales for a packaged seafood company pleaded guilty for his role in a conspiracy to fix the price of packaged seafood, such as canned tuna, sold in the United States, the Department of Justice announced today.
According to documents filed in this case, Stephen Hodge and his co-conspirators agreed to fix the prices of packaged seafood from as early as 2011 through 2013. He pleaded guilty to a one-count criminal information filed on May 30, 2017, in U.S. District Court for the Northern District of California in San Francisco. Hodge has agreed to pay a criminal fine and cooperate with the Antitrust Division’s ongoing investigation. He will be sentenced by the court at a later date.
“With today’s plea, the Antitrust Division continues to send a strong signal that senior executives will be held accountable for their actions,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “The division, along with our law enforcement colleagues, will continue to investigate price fixing among packaged seafood companies and the executives who worked at those companies.”
“The FBI will not tolerate the reprehensible behavior of company executives who abuse the trust of the American public for personal gain,” said FBI San Francisco Division Special Agent in Charge John F. Bennett. “We, along with our Justice Department partners, are dedicated to our ongoing investigations into price fixing and will bring these companies to justice.”
According to court documents, Hodge and his co-conspirators discussed the prices of packaged seafood sold in the United States and agreed to fix the prices of those products. Hodge and his co-conspirators negotiated prices and issued price announcements for packaged seafood in accordance with the agreements they reached. Including Hodge, three executives have pleaded guilty for their participation in this conspiracy. Bumble Bee Foods LLC has also been charged for its role in the price-fixing conspiracy. Bumble Bee Foods has a court appearance scheduled for August 2, 2017.
Today’s plea is the result of an ongoing federal antitrust investigation into the packaged seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the packaged seafood industry should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, visit https://www.justice.gov/atr/report-violations, or call the FBI tip line at (415) 553-7400.
Former Orange County Income Tax Return Preparer Sentenced to 21 Months in Federal Prison for Filing Fraudulent ReturnsRead the Press Release
LOS ANGELES – An Orange County man who prepared tax returns for clients after falsely claiming to be a certified public accountant and a former IRS agent was sentenced this morning to serve 21 months in federal prison for preparing and filing fraudulent federal income tax returns.
Michael Raymond Martinez, 48, of Fullerton, was sentenced by United States District Judge Beverly Reid O’Connell. In addition to the prison term, Judge O’Connell ordered Martinez to pay $205,465 in restitution to the Internal Revenue Service.
Martinez – who operated his tax preparation business under the names Your Home Tax Service, Great Tax Services and Great Tax Solutions – pleaded guilty in February to one count of aiding and abetting in the preparation of a false income tax return. In marketing materials provided to clients and potential clients, Martinez claimed he could get them “The Largest Refund…Guaranteed!!!”
Martinez, who often met with clients at their homes or at public locations, admitted that he prepared and filed with the IRS at least 245 false federal income tax returns that resulted in tax losses to the United States of approximately $1,155,006.
According to a plea agreement filed in this case, from the beginning of 2009 through April 2015, Martinez had brief meetings with clients to obtain their documents and to receive his payment. Martinez typically prepared and electronically filed the tax returns, but he would not review the returns with his clients.
According to documents filed with the court, Martinez prepared and filed tax returns that claimed false deductions and expenses that his clients were not entitled to receive. The tax returns included fraudulent moving expenses, education expenses and itemized deductions. The fraudulent deductions and expenses lowered the taxpayers’ income tax liability.
In addition to the 245 fraudulent tax returns filed for clients, Martinez failed to report his own taxable income from his tax preparation business for the years 2011 and 2012, which caused a loss to the government of approximately $85,000.
This case is the product of an investigation by IRS Criminal Investigation.
The case was prosecuted by Assistant United States Attorneys Paul Rochmes and Benjamin Tompkins of the Tax Division.
Former Kansas Highway Patrol Trooper Indicted for Using Excessive ForceRead the Press Release
A federal grand jury in Topeka, Kansas, returned an indictment charging Former Kansas Highway Patrol Trooper James Carson with violating an individual’s civil rights by using excessive force, announced Thomas E. Wheeler, II, Acting Assistant Attorney General for the Civil Rights Division; Thomas E. Beall, United States Attorney for the District of Kansas; and Darrin E. Jones, Special Agent in Charge for the Kansas City Field Office of the Federal Bureau of Investigation.
The indictment alleges that James Carson, while acting under color of law as a Trooper with the Kansas Highway Patrol, used excessive force amounting to punishment against R.T. The indictment further alleges that Carson’s use of excessive force resulted in bodily injury to R.T. If convicted on the civil rights charge, Carson faces a maximum sentence of 10 years in prison and a $250,000 fine.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the Topeka Resident Agency of the Kansas City Field Office of the FBI. The case was initially investigated by the Kansas Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jared Maag of the United States Attorney’s Office and Trial Attorney Rose Gibson of the Civil Rights Division’s Criminal Section.
Former Jersey City Police Officer Admits Conspiracy to Commit Fraud and Accept Corrupt PaymentsRead the Press Release
NEWARK, N.J. – A former Jersey City police officer today admitted accepting approximately $55,000 in corrupt payments in exchange for helping employers operate at worksites without the required presence of an off-duty police officer and for helping a police officer obtain compensation for off-duty work he did not perform, Acting U.S. Attorney William E. Fitzpatrick announced.
Anthony Iannicco, 48, of Jersey City, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit fraud and accept corrupt payments.
According to documents filed in this case and statements made in court:
Iannicco was a police officer with the Jersey City Police Department (JCPD) from 1995 to 2016. From 2008 through 2016, his duties included serving as the “assistant pick coordinator” for Jersey City’s West District. As the assistant pick coordinator, Iannicco assigned police officers to off-duty details.
Under Jersey City’s municipal code, off-duty police officers were not permitted to receive cash payments directly from off-duty employers. Rather, the employers were supposed to pay Jersey City, which would then pay the off-duty police officers, minus certain fees, taxes and deductions, including an administrative fee payable to Jersey City per hour that the off-duty police officers worked.
Iannicco conspired with numerous employers to cut Jersey City out of the process of hiring and compensating off-duty police officers. Generally, Iannicco permitted these employers to operate at worksites without the presence of a police officer when such a presence was required. In exchange, Iannicco accepted cash payments directly from these employers in violation of Jersey City rules and regulations.
In addition, Iannicco provided fraudulent off-duty employment vouchers to another police officer, identified in the information as “Co-Conspirator 1,” falsely representing that Co-Conspirator 1 completed off-duty assignments that Co-Conspirator 1 never worked. Jersey City subsequently paid Co-Conspirator 1 based on these fraudulent vouchers. In exchange for providing these fraudulent vouchers, Iannicco accepted cash payments from Co-Conspirator 1.
Altogether, from 2011 to 2016, Iannicco collected payments of approximately $55,000 directly from off-duty employers and from Co-Conspirator 1.Iannicco faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, Iannicco is required to forfeit the $55,000 that he received. Sentencing is set for Oct. 3, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, with the investigation.
JCPD is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: John A. Azzarello Esq., Morristown, New Jersey
Former JPD Officer Sentenced to Prison for BriberyRead the Press Release
Jackson, Miss - Former Jackson Police Officer Melvin Williams, 48, was sentenced on June 27, 2017, by Senior U.S. District Judge Tom S. Lee, to serve 27 months in federal prison followed by three years of supervised release for bribery, announced Acting U.S. Attorney Harold Brittain and FBI Special Agent in Charge Christopher Freeze. He was also ordered to pay a $1500 fine.
In February, 2016, Williams contacted a local businessman and threatened to execute an arrest warrant if the businessman did not pay Williams a sum of money. During the investigation, the FBI determined that the arrest warrant was not valid. The businessman agreed to cooperate with the FBI and Officer Williams was paid a total of $6,000 over three separate days.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Deputy Criminal Chief Patrick Lemon.
Former Fugitive Mauricio Sanchez-Garza Sentenced to Federal Prison for Money LaunderingRead the Press Release
In San Antonio this afternoon, United States District Judge Xavier Rodriguez sentenced 46-year-old Mexican National Mauricio Sanchez-Garza to 63 months in federal prison followed by three years of supervised release for laundering millions of dollars in Sinaloa Cartel drug proceeds United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter; and, Texas Attorney General Ken Paxton.
On October 20, 2016, Sanchez-Garza pleaded guilty to one count of conspiracy to commit money laundering. According to court records (SA11CR616), from 2005 until July 2011, Mauricio Sanchez-Garza, Jorge Sanchez and Mauricio’s brother, 47-year-old Mexican National Alejandro Sanchez-Garza, conspired to transport into the United States and conduct financial transactions with proceeds derived from illegal drug trafficking in order to conceal the nature of the funds. Specifically, the defendants entered into joint ventures with drug traffickers by funneling proceeds generated from drug trafficking through their businesses and corporate entities to make the proceeds appear to be legitimate and lawful; insulate the drug traffickers from evidence of criminal involvement in the proceeds; and, to attempt to make a profit for both the defendants and the drug traffickers.
Mauricio Sanchez-Garza had remained a fugitive since fleeing the United States to avoid prosecution in 2010. He was extradited to the United States from Mexico in July 2016 and has remained in federal custody since.
On August 19, 2014, Alejandro Sanchez-Garza was sentenced to 30 months in federal prison followed by three years of supervised release after pleading guilty to one count of conspiracy to commit money laundering.
On June 12, 2013, Jorge Sanchez was sentenced to 48 months in federal prison followed by three years of supervised release after pleading guilty to one count of extortion.
The Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Texas Attorney General’s Office investigated this case. The Justice Department's Office of International Affairs provided assistance with the extradition.
Fenton Woman Pleads Guilty to Wire Fraud ChargeRead the Press Release
St. Louis, MO – Tricia Siems, 35, Fenton, MO, pled guilty today to one charge of wire fraud as part of a scheme to defraud her Webster Groves employer, Rex Encore LLC. Siems appeared before United States District Judge Henry E. Autrey. Sentencing is set for September 26, 2017.
According to court documents, Siems was a bookkeeper for Rex Encore which is a holding company with a portfolio of investments including an automobile dealership and the Marion Miners minor league baseball team in southern Illinois. She was responsible for paying the bills of Rex Encore and keeping the books. Starting in 2010 and continuing up to January 2016 when she left the business, Siems wrote a series of unauthorized checks and made a series of unauthorized debit/wire transactions on the Rex Encore account at First Clover Leaf Bank in Edwardsville, IL, all for her personal benefit. She then made false entries in the business’s QuickBooks in order to conceal her scheme. Siems pled guilty to wire fraud involving a debit/wire transaction made in January, 2016, in which she made an online payment from the Rex Encore account to her Chase credit card account in the amount of $5,500.00. She booked that expenditure as a payment on the Rex Encore medical insurance.
It was determined that Siems stole $209,486.23 as part of her scheme.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James Crowe is handling the case for the U.S. Attorney’s Office.
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Federal jury finds Sierra Leone national guilty of resisting deportation ordersRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a federal jury found a Sierra Leone national guilty Tuesday of refusing to leave the country twice after being ordered to depart.
Sheku Kumalah, 31, of Sierra Leone, was found guilty of two counts of failure to depart. United States District Judge Dee D. Drell presided over the trial, which started Monday and ended Tuesday. The jury returned a guilty verdict after deliberating for approximately an hour. Evidence admitted at trial revealed that on two occasions U.S. Immigration and Customs Enforcement officers attempted to remove Kumalah via an escorted commercial flight from the Alexandria International Airport. The defendant hampered officers’ efforts on July 12, 2016 and August 16, 2016 by verbally and physically resisting attempts to escort him onto the plane.
Kumalah faces four years in prison, three years of supervised release and a $250,000 fine for each count. Sentencing has been set for September 29, 2017.
The U.S. Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys David J. Ayo and Joseph T. Mickel are prosecuting the case.
Federal Search Warrants ExecutedRead the Press Release
DES MOINES, IA - On Wednesday, June 28, 2017, federal search warrants were executed at the following locations in Iowa:
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5600 block of Douglas Avenue, Des Moines
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1800 block of Frazier Avenue, Des Moines
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1000 block of East Walnut Street, Des Moines
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3900 block of Southeast 25th Street, Des Moines
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600 block of 22nd Street, West Des Moines
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2000 block of 7th Street, Des Moines
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1000 block of East 7th Street, Des Moines
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2300 block of Morton Avenue, Des Moines
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2200 block of East Grand Avenue, Des Moines
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1900 block of East 22nd Street, Des Moines
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500 block of Northeast Jacob Street, Grimes
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3700 block of East Sheridan Avenue, Des Moines
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4300 block of Parkridge Avenue, Pleasant Hill
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800 block of East 6th Street North, Newton
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2900 block of Indianapolis Avenue, Des Moines
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1200 block of East Emma Avenue, Des Moines
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3600 block of Southeast 11th Street, Des Moines
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1800 block of East Army Post Road, Des Moines
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3300 block of 1st Street, Des Moines
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2900 block of East 22nd Court, Des Moines
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11000 block of Northeast 166th Avenue, Maxwell
The searches at these locations were an official law enforcement action involving officers, agents, and investigators from the Des Moines Police Department (DMPD); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Iowa Division of Narcotics Enforcement (DNE); Iowa State Patrol (ISP); Mid-Iowa Narcotics Enforcement Task Force – East (MINE – East); and Central Iowa Drug Task Force (CIDTF).
The following individuals were charged with conspiracy to distribute methamphetamine:
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Shannon Lee Paxton, 46, of Des Moines
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Kerry Drew Haegele, 47, of Des Moines
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Fidel Rios, Jr., 34, of Pasco, Washington
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Kira Fallis, 26, of Elkhart
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John Archer, 52, of Des Moines
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Charles Astley, 63, of Des Moines
The public is reminded that a charge is merely an accusation, and individuals are innocent unless and until proven guilty beyond a reasonable doubt. No other information or comments will be released until documents have been filed with the court as part of the public record.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
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Federal Inmate Charged with Possessing Illegal SubstanceRead the Press Release
CORPUS CHRISTI, Texas - A 41-year-old inmate at the Three Rivers Correctional Institution has been charged with possessing a prohibited object in prison, announced Acting U.S. Attorney Abe Martinez.
A grand jury returned the one-count indictment against Alejandro Corredor today. He is expected to make his initial appearance before a U.S. magistrate judge in the near future.
The indictment alleges Corredor, of Kansas City, Missouri, possessed Suboxone, which is a prohibited object and controlled substance used to treat pain. He had been incarcerated at the prison following his conviction for his role in one of the largest cocaine trafficking rings in the Kansas City area. He was serving a 30-year-prison sentence.
If convicted of the new charges, Corredor faces up to 20 years in federal prison.
The FBI conducted the investigation. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law .
FBI Special Agent Indicted for Making False Statements and Obstruction of JusticeRead the Press Release
PORTLAND, Ore. – A federal grand jury in Portland has charged W. Joseph Astarita, a member of the FBI’s Hostage Rescue Team (HRT) based in Quantico, Va., with three counts of making false statements and two counts of obstruction of justice. Astarita was one of a number of FBI agents assigned to the armed occupation of the Malheur National Wildlife Refuge and was present during the shooting of Robert LaVoy Finicum on January 26, 2016, in Harney County, Oregon.
The indictment alleges that Astarita knowingly and willfully made false statements to FBI Supervisory Special Agents, knowing that the statements were false and material to the FBI’s decision not to investigate the propriety of an agent-involved shooting. Specifically, Astarita falsely stated he had not fired his weapon during the attempted arrest of Mr. Finicum when he knew he had in fact fired his weapon. Astarita also knowingly engaged in misleading conduct toward Oregon State Police officers by failing to disclose that he had fired two rounds during the attempted arrest.
Astarita was arraigned on June 28, 2017, in Portland. He entered pleas of not guilty to each county and was released pending future appearances.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by the Department of Justice Office of the Inspector General in partnership with the United States Attorney’s Office for the District of Oregon.
A copy of the federal indictment is available via the following link.
Elmira Man Pleads Guilty to Threatening WitnessRead 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 Isaiah L. McLaurin, 27, of Elmira, NY, pleaded guilty to witness tampering before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison and $250,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that on May 17, 2017, the defendant made threats against an individual that he believed was cooperating in a drug investigation in the Elmira area. McLaurin intended to prevent that person from testifying and providing information to law enforcement authorities about the drug trafficking organization.
On May 16, 2017, four individuals—Robert Ian Thatcher, Maximillian Sams, Dwayne Banks, and Carlito Rios, Jr.—were arrested and charged in a federal criminal complaint with various drug trafficking and firearms offenses including conspiracy to possess with intent to distribute, and to distribute, quantities of furanyl fentanyl, a Schedule I controlled substance, and U-47700, a Schedule I controlled substance.
On May 16, 2017, an article about the arrests and investigation was published on the website for the Star Gazette, the local newspaper in Elmira. The article was entitled “Four face federal charges in Elmira drug investigation.” A digital copy of the complaint and supporting affidavit were also published on the Star Gazette’s website with the article. In the supporting affidavit, certain confidential sources were referenced by anonymous designations (including “CC-1” and “CS-2”).
The following day, May 17, 2017, a member of law enforcement observed a series of public Facebook comments related to the investigation described in the article on a Facebook page bearing the user name “Isaiah Mclaurin” and a profile picture of Isaiah L. McLaurin. One post stated:
Isaiah Mclaurin
Facts somebody better have this N**** in protective custody cause if he thinks he can just pick his daughter up from school and everything’s gonna be ok. He got it coming
In these Facebook posts, McLaurin publicly identified the individual – referred to as Individual A – that he believed is one of the confidential sources referenced in the complaint against Thatcher, Sams, Banks, and Rios, and threatened both Individual A and Individual A’s child.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police, under the direction of Major Richard Allen; the Elmira Police Department, under the direction of Chief Joseph Kane; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; and the Pennsylvania State Police, under the direction of Commissioner Colonel Tyree C. Blocker.Sentencing is scheduled for September 28, 2017, at 3:00 p.m. before Chief Judge Geraci.
El Departamento de Justicia Resuelve una Denuncia de Discriminacion Relacionada con la Inmigración Contra Panda ExpressRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Panda Restaurant Group, Inc. (Panda Express), una cadena de restaurantes con más de 1.800 locales en los Estados Unidos. El acuerdo resuelve la investigación del Departamento para determinar si Panda Express discriminó a trabajadores que no eran ciudadanos de los EE. UU. al reverificar su permiso para trabajar, en contravención de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
La investigación del Departamento concluyó que Panda Express tuvo el requisito innecesario de que trabajadores que eran residentes permanentes legales reestablecieran su autorización para trabajar al vencerse sus tarjetas de residencia mientras que no solicitaron las mismas cosas de sus trabajadores que eran ciudadanos de los EE. UU. cuando los documentos de estos vencieron. Asimismo, la investigación reveló que Panda Express requirió, de forma rutinaria, que otros trabajadores no ciudadanos de los EE. UU. presentasen documentos migratorios para reverificar su autorización ininterrumpida para trabajar, a pesar de tener ya pruebas de que los mismos ya habían aportado suficiente documentación. La disposición antidiscriminatoria de la INA prohíbe tales solicitudes de documentos cuando las mismas se basan en el estatus de ciudadanía de un trabajador o en su nacionalidad de origen.
Al amparo del acuerdo, Panda Express pagará sanciones civiles que ascienden a $400.000 a los Estados Unidos, establecerá un fondo de pagos retroactivos de $200.000 para compensar a aquellos trabajadores que perdieron sueldo a causa de las prácticas de la empresa, capacitará a su personal de recursos humanos acerca de los requisitos de la disposición antidiscriminatoria de la INA y se someterá a la supervisión y requisitos de declaración del Departamento.
«Los empleadores deben asegurar que sus prácticas de reverificación cumplen con las leyes que protegen a los trabajadores de la discriminación», declaró el Fiscal General Auxiliar en funciones Tom Wheeler, de la División de Derechos Civiles. «El Departamento de Justicia felicita a Panda Express por su cooperación durante la investigación y por haberse comprometido a compensar a los trabajadores que hayan perdido sueldo por motivos de sus prácticas documentales».
Cualquier trabajador que no sea ciudadano de los EE. UU. y que cuente con autorización para trabajar y que perdió sueldo en Panda Express entre el 31 de mayo del 2014 y el 28 de junio del 2017 como resultado de las prácticas documentales de Panda Express pueden ser elegibles para recibir pagos retroactivos por el sueldo que habrían ganado. Para más información, mande un correo electrónico a [email protected].
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen, o a la discriminación por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Download Panda Express Settlement Agreement
Eight Associated with La Familia Cartel Sentenced to Federal Prison for Roles in Austin-Based Meth Trafficking OperationRead the Press Release
In Austin today, a judge sentenced to federal prison eight members of a drug trafficking cell associated with the LaFamilia cartel operating primarily in Austin and San Antonio announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
United States District Judge Lee Yeakel sentenced: Oscar Maldonado, age 32 of Austin, to 78 months imprisonment; Julio Rogel, age 20 of Austin, to 88 months imprisonment; Jose Duenas, age 35 of Austin, to 60 months imprisonment; Jorge Arellano, age 36 of Austin, to 88 months imprisonment; Javier Jaimes, age 28 of Austin, to 72 months imprisonment; Javier Alvarez, age 26 of San Antonio, to 57 months imprisonment; Jaime Carbajal, age 26 of Austin, to 42 months imprisonment; and, Hugo Rodriguez, age 31 of Austin, to 70 months imprisonment. Three additional members of the conspiracy are scheduled to be sentenced at a later date before Judge Yeakel.
According to court records, from December 2015 until September 2016, the defendants were responsible for receiving and distributing in both Austin and San Antonio large amounts of methamphetamine that had been smuggled into the United States from Mexico.
During the investigation, agents recovered 75 kilograms of methamphetamine, nine kilograms of cocaine, and approximately $175,000 in U.S. Currency attributed to this organization.
The investigation was conducted by the High Intensity Drug Trafficking Area (HIDTA) unit in Austin comprised of the Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Texas Department of Public Safety, Cedar Park Police Department, Austin Police Department and the Hays County Sheriff’s Office. Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.
Dominican Man Indicted for Federal Tobacco Excise FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Dominguez, age 52, a resident of the Dominican Republic, was indicted by a federal grand jury with conspiracy to defraud the United States in relation to federal tobacco excise taxes.
According to United States Attorney Bruce D. Brandler, Dominguez was owner of Victor Sinclair Cigars, a cigar manufacturer located in the Dominican Republic. The indictment alleges that beginning in 2009 through 2012, Dominguez conspired with an importer of large cigars based in East Stroudsburg, Pennsylvania, to evade the excise taxes imposed on the importation of Victor Sinclair manufactured cigars. Dominguez and the importer allegedly used fraudulent invoices to collect federal excise taxes from cigar retailers in the United States. Dominguez conspired with the importer to collect approximately $3.8 million in excise taxes. Of this amount, Dominguez and his co-conspirators, only payed $2.1 million to the government. Dominguez and the importer obtained approximately $1.8 million as a result of the scheme.
The case was investigated by the Department of Treasury, Alcohol and Tobacco Tax and Trade Bureau. Assistant U.S. Attorney Joseph J. Terz is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Distributor of Counterfeit Medications ArrestedRead the Press Release
HOUSTON – A 47-year-old woman appeared in federal court today for allegedly smuggling a counterfeit corticosteroid known as Diprospan into the United States and trafficking the misbranded and counterfeit drug through a store known as Naturavida, announced Acting U.S. Attorney Abe Martinez.
The criminal complaint alleges that Carolina Aguilar Rodriguez aka “Doctora” sold the counterfeit Diprospan to undercover federal agents on at least five occasions. According to the charges, Rodriguez was not licensed to dispense prescription medications in Texas, and Naturavida was not licensed as a Texas pharmacy. Rodriguez allegedly made a deal to sell 100 vials of Diprospan to an undercover federal agent in May and accepted a $1,200 deposit. However, the complaint alleges she subsequently pulled out of the deal after a police raid on another supplier.
The criminal complaint alleges the drugs came from El Salvador. Diprospan is not approved for use or sale in the United States and is not manufactured in the United States.
Immigration and Custom’s Enforcement’s Homeland Security Investigations, U.S. Food and Drug Administration - Office of Criminal Investigations and the Houston Police Department conducted the investigation. Assistant U.S. Attorney Julie Redlinger is 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.
Corpus Christi Man Charged with Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 66-year-old Corpus Christi man has been indicted on charges of possession of child pornography, announced Acting U.S. Attorney Abe Martinez.
A grand jury returned an indictment against Bruce Harold Hendler today. He was originally arrested June 1, 2017, upon the filing of a criminal complaint. He later appeared before U.S. Magistrate Jason B. Libby, at which time he was ordered into custody pending further criminal proceedings. He is expected to make his initial appearance on the indictment in the near future.
According to the criminal complaint, Hendler was observed acting suspiciously with a child at a local church and contacted authorities. The investigation led to a search warrant conducted on his digital devices on which forensic analysis identified more than 2,000 images of child pornography, according to the charges.
If convicted, Hendler faces up to 20 years in federal prison as well as maximum fine of $250,000 fine. Upon completion of any prison term imposed, he also faces a maximum lifetime term of supervised release and he will be required to register as a sex offender.
The Corpus Christi Police Department – Internet Crimes Against Children Task Force and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law .
Convicted felon sentenced to over 100 months in prisonRead the Press Release
Mathew Scott Grover, 28, of Nampa, Idaho was sentenced to a total of 102 months in Federal prison yesterday for violating conditions of supervised release and committing two new crimes: unlawful possession of ammunition and possession with intent to distribute methamphetamine, Acting U.S. Attorney Rafael Gonzalez announced. The Court sentenced Grover to 78 months of imprisonment for the new crimes and an additional 24 months of imprisonment for the supervised release violations. Grover was ordered to pay a fine of $750 and a $200 special assessment. Following his term of imprisonment, Grover will have to serve three years of supervised release. Grover pleaded guilty to the charges on March 20, 2017.
According to court documents, on October 5, 2016 Nampa Police Officers conducted a traffic stop on Grover near the intersection of Orchard Avenue and Midland Boulevard in Nampa, Idaho. Grover was arrested on a federal warrant for violating supervised release in a prior case, which involved convictions for conspiracy to participate in a racketeering enterprise and unlawful possession of a firearm. Later that day, United States Probation Officers, with the assistance of Nampa Police, searched the defendant’s residence in Nampa. Officers located $4,709 in cash and a plastic bag containing 42.09 grams of actual methamphetamine. Additionally, in the garage, officers found seven rounds of shotgun ammunition.
Grover had been previously investigated and convicted of conspiracy to participate in a racketeering enterprise and unlawful possession of a firearm in 2012. At the time, he was a member of the Brown Magic Clicka gang.
This case was investigated by the United States Probation Office, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Treasure Valley Metro Violent Crime Task. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Colorado Man Sentenced in New Mexico for Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Michael Pawletzki, 35, of Lakewood, Colo., was sentenced yesterday in federal court in Albuquerque, N.M., to 36 months in prison followed by five years of supervised release for violating the Sex Offender Registration and Notification Act (SORNA). Pawletzki will be required to register as a sex offender after completing his prison sentence.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Pawletzki was charged by indictment on Nov. 17, 2015, with violating SORNA by failing to update his sex offender registration. On July 1, 2016, Pawletzki pled guilty to a felony information charging him with failing to update his registration from Dec. 2014 through Nov. 2015, in Valencia County, N.M.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Buffalo Woman Sentenced on Fentanyl ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — Acting U. S. Attorney James P. Kennedy, Jr. announced today that Brittney Ridgeway, 29, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, fentanyl, was sentenced to time served (approximately 16 months) in prison by U.S. District Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handling the case, stated that during the course of the conspiracy, the defendant and her boyfriend, Dellsean Hamilton, sold heroin and fentanyl in the Buffalo and Cheektowaga areas. On March 25, 2015, Cheektowaga Police officers recovered $2,315 in cash and 145 envelopes containing almost four grams of fentanyl following a traffic stop of a vehicle in which Ridgeway and Hamilton were riding.
Subsequent investigation determined that Hamilton was a large volume heroin supplier in Buffalo and the surrounding area and Ridgeway assisted him in the distribution of the heroin and fentanyl. Hamilton was arrested on January 11, 2016, also on distribution charges. Following Hamilton’s arrest, law enforcement officers learned that Ridgeway continued to distribute heroin. Officers made controlled purchases of fentanyl from Ridgeway on February 4 and February 11, 2016.
Hamilton was also convicted and is scheduled to be sentenced on August 28, 2017.
Today’s sentencing is the culmination of an investigation by the Cheektowaga Police Department, under the direction of Chief David Zack; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Broward County School District Employee Sentenced to Three Years in Prison for Obstructing Drug InvestigationRead the Press Release
Today, a Broward County School District employee was sentenced by U.S. District Judge Donald M. Middlebrooks to three years in prison for obstructing a drug investigation.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Porsha Session, 31, of Boynton Beach, Florida, previously pled guilty to obstructing an official proceeding, in violation of Title 18, United States Code, Section 1512(c)(2).
According to the court record, federal, state and local law enforcement agencies were investigating drug trafficking and other criminal offenses in Lauderhill, Florida. Session’s relative was one of the detectives from the Lauderhill Police Department assigned to the Lauderhill investigation. During the course of the Lauderhill investigation, law enforcement, including the defendant’s relative, received information, including details from a confidential informant, regarding individuals involved with drug trafficking, and vehicles used by and telephone numbers associated with, members of the criminal enterprise. Session obtained information provided to her relative concerning the Lauderhill investigation. Session, while working as an employee of the Broward County School District, then made a series of telephone calls to a target of the drug trafficking investigation and warned the individual that he/she and other persons were being monitored by law enforcement. Session also warned the target that an inside source, an informant, was providing details of the criminal enterprise to law enforcement. As a result of Session’s disclosure, the target changed his/her telephone number in an attempt to avoid detection by law enforcement and the confidential informant was moved for his/her safety.
Mr. Greenberg commended the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, Lauderhill Police Department, and Sunrise Police Department for their investigative assistance with this matter. This case was prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
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.
Bronx Man Sentenced to 65 Years in Prison for 2013 Double MurderRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ORANE NELSON, a/k/a “Amaze,” 28, was sentenced this morning in Manhattan federal court to a prison term of 65 years for murdering Jennifer Rivera and Jason Rivera on January 16, 2013, in the Bronx, in connection with a dispute over a drug debt, as well as for narcotics conspiracy and firearms possession charges. At the time of the murders, Jennifer Rivera was 20 years old, and Jason Rivera was 30. NELSON was sentenced by U.S. District Judge Denise L. Cote, who presided over a two-week jury trial earlier this year at which NELSON was convicted on all counts in the controlling indictment.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Orane Nelson executed two people in cold blood, including a young woman who was murdered simply because she was a witness to Nelson’s crimes. For his terrible crime, Nelson has been sentenced to 65 years in federal prison. Although this prosecution and sentence will not bring the victims back to their families, we and our law enforcement partners at the FBI and the NYPD hope that it brings some measure of justice to them.”
According to court papers and evidence admitted at trial:
From 2011 to 2013, ORANE NELSON, a/k/a “Amaze,” was a crack dealer in the Bronx who also carried guns to protect his drug business. In January 2013, NELSON had a dispute with Jason Rivera over a drug debt owed by NELSON. Following the dispute, NELSON decided to murder Jason Rivera, and lured Jason Rivera out to a location in the Bronx with the promise of money to be paid for the debt owed. Jason Rivera brought along his cousin, Jennifer Rivera, who was not involved in any drug trafficking activities, to pick up the money promised by NELSON. Shortly after midnight, NELSON and an accomplice entered Jason Rivera’s vehicle, and minutes later executed both Jason Rivera and Jennifer Rivera by shooting them each in the head at close range. Jennifer was killed because she was a witness to the murder of Jason Rivera.
Acting U.S. Attorney Kim praised the FBI and the NYPD for their outstanding work in this investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Jared Lenow and Jessica Feinstein are in charge of the prosecution.
Bristow Woman Sentenced to 24 Months Probation, $6,500 Restitution for Theft of Mail by Postal EmployeeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that RITA LOUISE FALL, age 37, of Bristow, Oklahoma, was sentenced to 2 years probation for THEFT OF MAIL BY POSTAL EMPLOYEE, in violation of Title 18, United States Code, Section 1709. Restitution in the amount of $6,500.00 was also ordered by the court.
The Indictment alleged that beginning on or about, August 19, 2016, and continuing through on or about August 29, 2016, within the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and intentionally steal and remove a package entrusted to her and which came into her possession to be conveyed by mail while performing her assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Service Office of Inspector General.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Shannon Henson represented the United States.
Bristol Man Sentenced to Prison for Distributing Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KEITH ATWATER, 36, of Bristol, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months of imprisonment, followed by five years of supervised release, for distributing heroin that led to an overdose.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on August 2, 2016, Bristol Police and medical personnel responded to a report of a medical emergency at a residence in Bristol. At the residence, they encountered an unresponsive 31-year-old male and pronounced him deceased shortly thereafter. Officers located and seized five empty wax folds that had contained suspected heroin, and other narcotics paraphernalia.
The investigation revealed that ATWATER had distributed the heroin consumed by the victim.
On August 23, 2016, investigators conducted a controlled purchase of heroin from ATWATER.
ATWATER was arrested on September 14, 2016. On that date, officers seized from him an additional quantity of heroin packaged for distribution.
On December 27, 2016, ATWATER pleaded guilty to one count of possession with intent to distribute heroin.
ATWATER who had been released on bond, was remanded to custody the conclusion of today’s court proceeding.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Bristol Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Amy C. Brown.
Boston Police Sergeant Detective Charged with Making False StatementsRead the Press Release
BOSTON – A Boston Police Sergeant Detective was charged today in federal court in Boston with repeatedly making false statements so that he could fly armed on personal trips and enable a friend to fly with him without being screened by security personnel at Boston’s Logan International Airport.
Bruce E. Smith, 53, of Randolph, was charged in a criminal complaint with making false statements to the Transportation Security Administration (TSA) and the Department of Homeland Security, as well as with unlawfully entering a secure airport area with intent to evade security requirements. Smith is scheduled to appear today at 2:30 p.m. before U.S. District Court Magistrate Judge Jennifer C. Boal.
According to court documents, Smith has been employed with the Boston Police Department (BPD) since 1989 and is currently a Sergeant Detective assigned to District E-13, Jamaica Plain, as a district detective supervisor.
The complaint alleges that between April 2011 and April 2017, Smith flew armed on approximately 28 separate trips departing from Logan Airport even though he was not on official business, which is a violation of federal law. On each of those trips, he falsely claimed to have obtained supervisor approval for his travel. On at least two of them, Smith also escorted or attempted to escort a friend, Leroy Ross, through Logan Airport without security screening. Smith falsely claimed that Ross was a “dignitary” under Smith’s official police escort. When questioned by TSA security personnel as to what type of dignitary Ross was, Smith falsely replied, “I am not at liberty to divulge that information.” In fact, Ross, who has a criminal record, is not a dignitary, but a mobile HIV clinic operator in Randolph. According to the complaint, Smith also fraudulently requested and received overtime pay for an intelligence meeting/event in Boston that he did not attend because he was on personal travel in North Carolina.
The charging statutes provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb, Boston Police Commissioner William Evans, and Mark Tasky, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Washington Field Office, made the announcement today. The investigation was conducted jointly by BPD’s Anti-Corruption Division and DHS-OIG. The case is being prosecuted by Assistant U.S. Attorney Zachary R. Hafer of Weinreb’s Public Corruption and Special Prosecutions Unit.
Austin Pilot Pleads Guilty to Transporting Marijuana in His PlaneRead the Press Release
In Austin, 64–year-old pilot Wayne Douglas Brunet faces up to 20 years in federal prison after pleading guilty this afternoon to possession with intent to distribute between 50 and 100 kilograms of marijuana announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
On March 20, 2017, state authorities arrested Brunet at the Llano (TX) Municipal Airport after discovering approximately 206 pounds of hydroponic marijuana on board his aircraft. According to court records, HSI agents were prepared to interdict Brunet as he attempted to land at an unmanned airport in Bulverde (TX). The Department of Homeland Security Customs and Border Protection (CBP) Air and Marine Operation Center (AMOC) began tracking his single-engine plane after observing that it had a suspicious flight pattern from Medford, OR, to Texas and had landed only once in Holbrook, AZ, to refuel.
Brunet landed at the unmanned airport in Bulverde, but departed again after spotting authorities on the ground. Brunet then proceeded to the Lago Vista (TX) airport, but again, aborted his landing as he did in Bulverde when encountered by law enforcement. Brunet then proceeded to the Llano Municipal Airport where he landed at approximately midnight. After bringing the aircraft to a stop, Brunet attempted to flee on foot, but was apprehended on the tarmac by the Texas Department of Public Safety Air Unit. Authorities recovered 15 duffle bags filled with vacuum-sealed packages of marijuana along with approximately $5,400 in U.S. Currency.
Brunet remains in federal custody awaiting sentencing. No date has been set yet.
HSI agents conducted this investigation together with assistance from CBP AMOC, Texas Department of Public Safety Air Unit and the Llano County Sheriff’s Office. Assistant United States Attorney Matthew Devlin is prosecuting this case on behalf of the Government.
Albuquerque Man Pleads Guilty to Federal Heroin and Crack Trafficking ChargesRead the Press Release
ALBUQUERQUE – Christopher Garcia, 42, of Albuquerque, N.M., pled guilty on June 26, 2017, in federal court to drug trafficking charges. The plea agreement recommends that Garcia be sentenced to a term of imprisonment within the range of 180 to 240 months if the court determines that he is a career offender, and within the range of 120 to 150 months if the court determines that he is not.
Garcia was arrested on Dec. 3, 2015, on a four-count indictment charging him with drug trafficking offenses. The indictment was superseded on March 16, 2016, to include two additional charges. The superseding indictment charged Garcia with distributing heroin and crack cocaine on Aug. 7, 2015; distributing heroin on Aug. 11, 2015 and Sept. 10, 2015; possessing heroin with intent to distribute on Dec. 3, 2015; and distributing marijuana on Dec. 3, 2015. According to the superseding indictment, Garcia committed the offenses in Bernalillo County, N.M.
During the June 26, 2017, proceedings, Garcia pled guilty to three counts of distributing heroin, one count of distributing crack cocaine, and one count of possessing heroin with intent to distribute. In entering the guilty plea, Garcia admitted committing the following drug trafficking crimes:
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Selling approximately 49.6 grams of heroin and 23.96 grams of crack cocaine to an individual working with law enforcement on Aug. 7, 2015;
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Selling approximately 76.3 grams of heroin to an individual working with law enforcement on Aug. 11, 2015;
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Selling approximately 148.8 grams of heroin to an undercover law enforcement agent on Sept. 10, 2015; and
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Possessing approximately 200 grams of heroin at a relative’s house on Dec. 3, 2015, which he intended to distribute to others.
This case was investigated by the Albuquerque Division of the FBI, New Mexico Corrections Department, the Bernalillo County Sheriff’s Department and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorneys in the U.S. Attorney’s Las Cruces Branch Office 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.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. 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.
The case also is being prosecuted as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
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