Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
7 August 2017
Justice Department Announces Plans to Advance Forensic ScienceRead the Press Release
Deputy Attorney General Rod J. Rosenstein announced two new Department of Justice projects today at the International Association for Identification’s conference in Atlanta, Georgia. This reinforces the Justice Department’s commitment to sound forensic science practices and to increasing the capacity and effectiveness of forensic science providers by helping to improve the reliability of forensic analysis.
“The Department of Justice believes that when the adversarial American legal system functions as intended – including through the support of trained forensic examiners and legal practitioners educated on best forensics practices – justice is advanced,” said Deputy Attorney General Rosenstein. “The Department is fully committed to examining and strengthening forensic science despite efforts in the courtroom and elsewhere to reject reliable and admissible forensic evidence.”
The projects announced today are aimed at ensuring that the testimony of the Justice Department’s forensic examiners is consistent with sound scientific principles and just outcomes. The Department will develop Uniform Language for Testimony and Reports to give clear guidance to what the Department’s forensics examiners may discuss in a courtroom, and direct prosecutors to follow the same guidelines. The Department will also develop a new forensic examiner testimony-monitoring program to ensure compliance with the uniform language standards once they are adopted.
Deputy Attorney General Rosenstein also announced that Attorney General Jeff Sessions has tapped Ted Hunt, a former state prosecutor and member of the National Commission on Forensic Science (which sunset in April), to serve as the Department’s Senior Advisor on Forensics. In addition to Mr. Hunt’s decades of first-hand experience investigating and prosecuting cases with forensic evidence, he has long been involved with state, local, and federal efforts to improve forensic science through committees, commissions, and training programs.
“It speaks strongly of the Attorney General’s commitment to the interdisciplinary nature of forensic science that he has appointed Mr. Hunt to serve in this position,” said Deputy Attorney General Rosenstein. “I am directing him to coordinate closely with our federal, state, local, and tribal forensic science practitioners and to identify ways to best continue ongoing outreach to these stakeholders.”
International Surrogacy Clients Defrauded in Racketeering SchemeRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – August 7, 2017
SAN DIEGO – Acharyya Rupak, also known as Rudy Rupak, was sentenced today before U.S. District Court Judge Cynthia A. Bashant, and ordered to serve 24 months in custody for crimes relating to his international surrogacy company, Planet Hospital. Judge Bashant also ordered Rupak to pay a $10,000 fine, and scheduled a restitution hearing on September 13, 2017, to determine how much Rupak must pay back to his victims.
Rupak was the founder and operator of Planet Hospital (“PH”), beginning in approximately 2003. PH has had business addresses in San Diego, Calexico, and Calabasas, California. PH facilitated medical tourism services, which are the visit of foreign patients to hospitals across international borders in order to receive medical treatment, including organ transplants and cosmetic surgery. In approximately 2006, PH began offering international surrogacy services, which is a surrogacy agreement involving an overseas country, and generally involves the carrying of a pregnancy by a surrogate for intended parents.
Beginning in approximately September 2012, and continuing through at least January 2014, Rupak made interstate wire transfers, with the intent to facilitate commercial bribery, in violation of California law. In furtherance of the commercial bribery, Rupak solicited, and instructed PH employees to solicit, medical tourism and international surrogacy clients by falsely representing that their funds would be “set aside,” or put in escrow accounts, and used only to pay for medical services provided to the respective client. In some instances, however, Rupak caused funds obtained from new PH clients to be used to pay for services provided to existing PH clients.
In particular, in December 2013, Rupak directed a PH employee to solicit funds from PH clients by fraudulently representing that the clients’ funds would be maintained in an escrow account. The clients were also told their funds would be sent to My Donor Cycle, a San Diego-based business for surrogacy egg donation services. Rupak instructed the PH employee to make the representation to the clients, however, without the knowledge or consent of My Donor Cycle. On December 5, 2013, the PH clients wire-transferred $24,000 to a bank account controlled by Rupak. Rupak, however, did not place the funds into escrow. Instead, Rupak comingled some of their funds with funds received from another PH client. He then wire-transferred the combined funds to My Donor Cycle to pay for services already provided to prior PH clients.
Rupak also initially undercharged PH clients for the cost of medical tourism and international surrogacy services in order to induce them to begin services through PH without knowing that additional payments would be required. Rupak, however, often failed to forward PH clients’ funds to service providers. The service providers included the Fertility Clinic Cancun (“FCC”) and the IREGA Clinic (“IREGA”), which were clinics that provided surrogacy services in Cancun, Mexico. Rupak’s failure to forward client funds to FCC and IREGA caused the service providers to demand additional funds from the PH clients in order to initiate or continue international surrogacy services.
Rupak made several excuses to PH clients for its failure to provide successful surrogacy services. He created a fraudulent website and email address through which he sent unauthorized emails in the name of a clinic and its physician to PH clients in order give false excuses why PH had not provided promised services. Rupak also instructed PH employees to make misrepresentations to PH clients regarding prior medical tourism and international surrogacy successes, and that unsuccessful surrogacy procedures were the fault of foreign service-providers, restriction from foreign laws, or failed bank transactions.
Apart from his work on behalf of PH, in order to obtain employment unrelated to medical tourism or international surrogacy, Rupak identified himself with an alias to potential employers in order to conceal his true identity and pending fraud allegations.
Rupak acknowledged that he caused total losses of at least $247,620, although the total losses will be determined at the restitution hearing.
In imposing custody, Judge Bashant noted that Rupak lied to vulnerable victims who were sick, and who were desperate for children.
Acting U.S. Attorney Robinson said, “The defendant betrayed the trust placed in him by people desperate to have a child. By preying on their vulnerable emotions, he was able to extract more money on the false promise that he was doing everything possible to help them obtain a baby. To use the dream of parenthood as leverage for obtaining fraudulent proceeds is intolerable and heartbreaking.”
“Today's sentencing is justice overdue for the many victims affected by this defendant’s deceitful practices,” stated FBI Special Agent in Charge Eric S. Birnbaum. “Acharyya Rupak can no longer prey upon those desperate to have a family.”
DEFENDANT
Acharyya “Rudy” Rupak Age: 49
SUMMARY OF CHARGE Case Number: 16CR1896
Title 18, United States Code, Section 1952(a)(3)(interstate or foreign travel in aid of racketeering enterprise)
Maximum penalty: 5 years of custody; $250,000 Fine
AGENCY
Federal Bureau of Investigation
Indictment Unsealed Charging Three Local Men with Drug Trafficking and Firearms Offenses in a School ZoneRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BRANDON BUTLER, a/k/a “Pooh,” a/k/a “Pooh Milly;” JAMIRON BARNES, a/k/a “Miron,” a/k/a “Myron;” and SEAN BRIGGS, a/k/a “Big Sean,” a/k/a “Big C;” all from New Orleans, were charged in 12-count second superseding Indictment by a Federal Grand Jury last week. The second superseding Indictment was unsealed recently, as the newly indicted defendant, SEAN BRIGGS, was taken into custody by federal agents. The other defendants are already in federal custody.
According to the second superseding Indictment, BUTLER, BARNES, and BRIGGS are charged with conspiracy to distribute and to possess with the intent to distribute cocaine, crack, and heroin and to possess firearms in furtherance of the drug trafficking crime. The defendants came to the attention of the FBI’s New Orleans Gang Task Force violent crime initiative in NOPD’s Sixth Police District. Specifically, the defendants primarily operate in the 2400 block of Josephine Street which is within one block of the Mahalia Jackson Elementary School.
A list of the defendants, charges, and maximum penalties is attached.
Acting U.S. Attorney Evans reiterated that a second superseding Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The second superseding Indictment is a product of an ongoing investigation into the drug trafficking and violent crime in New Orleans. It represents the continued coordinated anti-crime efforts of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigation’s New Orleans Gang Task Force, the New Orleans Police Department, the Bureau of Alcohol, Tobacco, and Firearms, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Elizabeth Privitera is in charge of the prosecution.
* * *
COUNT
DEFENDANT(S)
MAXIMUM PENALTY
Count 1
21 U.S.C. § 846
Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base and Heroin
Brandon Butler
Jamiron Barnes
Sean Briggs
-0 to 20 years imprisonment
-not less than 3 years supervised release
-fine of up to $1,000,000
-$100 special assessment fee
Count 2
18 U.S.C. § 924(o)
Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime
Brandon Butler
Jamiron Barnes
Sean Briggs
-0 to 20 years imprisonment
-3 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 3
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Possession with Intent to Distribute Cocaine Hydrochloride and Cocaine Base
Jamiron Barnes
Sean Briggs
-0 to 20 years imprisonment
-not less than 3 years supervised release
-fine of up to $1,000,000
-$100 special assessment fee
Count 4
18 U.S.C. § 924(c)(1)(A)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Jamiron Barnes
Sean Briggs
-5 years to life imprisonment (consecutive)
-not more than 5 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 5
18 U.S.C. § 922(g)(1)
Felon in Possession of a Firearm
Sean Briggs
-0 to 10 years imprisonment
-3 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 6
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Possession with Intent to Distribute Cocaine Hydrochloride and Cocaine Base
Brandon Butler
-0 to 20 years imprisonment
-not less than 3 years supervised release
-fine of up to $1,000,000
-$100 special assessment fee
Count 7
18 U.S.C. § 924(c)(1)(A)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Brandon Butler
-5 years to life imprisonment
-not more than 5 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 8
18 U.S.C. § 922(q)(2)(A)
Possession of a Firearm in a School Zone
Brandon Butler
-0 to 5 years imprisonment
-not more than 1 year supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 9
21 U.S.C. § 841(a)(1) and (b)(1)(C)
Possession with Intent to Distribute Heroin
Sean Briggs
-0 to 20 years imprisonment
-not less than 3 years supervised release
-fine of up to $1,000,000
-$100 special assessment fee
Count 10
18 U.S.C. § 924(c)(1)(A)
Use, Carrying and Discharge of a Firearm in Furtherance of a Drug Trafficking Crime
Brandon Butler
-25 years to life imprisonment (consecutive)
-not more than 5 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Count 11
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Possession with Intent to Distribute Cocaine Base
Brandon Butler
-0 to 20 years imprisonment
-not less than 3 years supervised release
-fine of up to $1,000,000
-$100 special assessment fee
Count 12
18 U.S.C. § 924(c)(1)(A)
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Brandon Butler
-25 years to life imprisonment (consecutive)
-not more than 5 years supervised release
-fine of up to $250,000
-$100 special assessment fee
Honduran national pleads guilty to immigration crimeRead the Press Release
HUNTINGTON, W.Va. – A Honduran national pleaded guilty today to an immigration crime, announced United States Attorney Carol Casto. Delvin Rodriguez-Gonzalez, 37, entered his guilty plea to illegally reentering the United States.
Rodriguez-Gonzalez had been arrested for a driving while intoxicated charge in Cabell County, and was identified on May 7, 2017, by agents with the Department of Homeland Security. Rodriguez-Gonzalez admitted that he had been convicted of second degree burglary in El Paso County District Court in Colorado Springs on January 22, 2009, and was removed from the United States on March 19, 2009. On January 18, 2013, Mr. Rodriguez-Gonzalez was found in Florence, Colorado, and was again removed from the United States. Rodriguez-Gonzalez was subsequently found in the Western Regional Jail in Barboursville. Rodriguez-Gonzalez further admitted to having illegally reentered the United States for a third time.
Rodriguez-Gonzalez faces up to 10 years in federal prison when he is sentenced on November 13, 2017. He is also subject to removal proceedings at the conclusion of any term of incarceration.
The investigation was conducted by the Department of Homeland Security. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
- Follow us on Twitter: SDWVNews
Heroin Traffickers Sentenced to Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Darrell Bryant (48, Jacksonville) and Roshawn Anderson (34, Atlanta) each to six years in federal prison for conspiracy to distribute heroin.
Bryant pleaded guilty on December 13, 2016. Anderson pleaded guilty on January 24, 2017.
According to court documents, in August 2016, Bryant and Anderson arranged to sell almost a kilogram of heroin to an individual in Jacksonville. Bryant brokered the deal locally and Anderson brought the heroin from Georgia. On August 31, 2016, while driving to deliver the heroin, Bryant and Anderson were stopped on Norwood Avenue, near I-95, by troopers from the Florida Highway Patrol who were working with the Drug Enforcement Administration. Anderson attempted to flee on foot but troopers caught up with him. He had approximately one kilogram of heroin hidden on his person.
This case was investigated by the Drug Enforcement Administration, with assistance from the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Frank Talbot.
Former Winnebago Tribal Council Member Sentenced for Theft from an Indian Gaming EstablishmentRead the Press Release
Acting United States Attorney Robert C. Stuart announced today that Chief United States District Court Judge Laurie Smith Camp sentenced Lawrence Payer, age 71, of Winnebago, Nebraska for his conviction for theft from an Indian gaming establishment. Payer was sentenced to five years of probation and 150 hours of community service. He was further ordered to pay restitution in the amount of $36,000.
Payer was a member of the tribal council of the Winnebago Tribe of Nebraska. Beginning in 2013 and continuing through September of 2014, began taking unauthorized disbursements from the WinnaVegas Casino and Resort in the total amount of $36,000. These disbursements were in the form of gift certificates which he did not pay for and deposits to a re-loadable debit card. The disbursements were in addition to the salary received from the Winnebago Tribe as a tribal council member. However, the disbursements were not paid through the payroll department of the Winnebago Tribe and were never authorized at a regular or special meeting of the tribal council. Further, the disbursements were concealed from the Winnebago Gaming Commission which oversaw the operations of the casino and was required to approve financial transactions of the casino.
This case was investigated by the Federal Bureau of Investigation.
Former Kern County Sheriff’s Deputies Sentenced for Marijuana TraffickingRead the Press Release
FRESNO, Calif. — Two former deputies with the Kern County Sheriff’s Office were sentenced today for conspiracy to distribute and possess with the intent to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.
U.S. District Judge Lawrence J. O’Neill sentenced Logan August, 30, of Bakersfield, to three years’ probation, $16,200 forfeiture, 1,500 hours of community service. Derrick Penney, 34, of Star, Idaho, received a sentence of three years’ probation, $1,200 forfeiture, 250 hours of community service.
U.S. Attorney Talbert stated: “The defendants in this case caused a significant breach of the public’s trust when they committed these crimes. Not only did they betray the community they were sworn to serve, but also their fellow, hard-working officers who protect the Kern County community every day. My office is thankful for the hard work and cooperation of our law enforcement partners in bringing this conduct to light. We are committed to investigating and prosecuting anyone who abuses their law enforcement position for their own selfish gain."
“An officer’s badge is the ultimate symbol of integrity, pride, trust, and authority to protect and serve the public. Every day across America thousands of brave men and women in law enforcement uphold the meaning of that symbol by working tirelessly and placing themselves in harm’s way to serve their communities. The criminal behavior demonstrated by Logan August and Derrick Penney endangered the public and their colleagues. Both August and Penney will now face the legal consequences for their actions,” stated DEA Special Agent in Charge John J. Martin. “DEA will work with our law enforcement counterparts to hold accountable those who tarnish the badge and betray public trust.”
According to court documents, between June 2014 and October 2014, while working with the Kern County Sheriff’s Office (KCSO) as sworn peace officers, August and Penney abused their positions of trust and authority by conspiring with former Bakersfield Police Department detective Patrick Mara and an individual who previously worked as a confidential informant for August, and others, to steal marijuana from a KCSO storage unit and sell it for unlawful personal gain. The marijuana had previously been seized during investigations into marijuana grown on public and private lands. Once August and Penney obtained the marijuana from the storage unit, they had it processed (trimmed) into approximately eight pounds of usable marijuana. August then delivered it to his former confidential informant, who sold it and provided August with part of the proceeds from those sales. August then shared the proceeds with Penney and Mara. August and Penney received approximately $1,200 each from the sale of this marijuana.
Additionally, according to August’s plea agreement and other court documents, between March 2014 and December 2014, while a sworn peace officer assigned to the KCSO Major Vendor Narcotics Unit, August routinely participated in law enforcement marijuana eradication operations on public and private lands. During this time, August abused his position of trust and authority as a KCSO deputy by conspiring with a former confidential informant to take marijuana plants and processed marijuana from these law enforcement marijuana eradication operations and sell that marijuana for unlawful personal gain. On 10 separate occasions between March 2014 and December 2014, August wrongfully took marijuana from a law enforcement eradication operation for personal gain. August distributed to his former confidential informant the equivalent of 25 pounds of usable marijuana wrongfully taken from these law enforcement eradication operations. August received $15,000 from the sale of this marijuana.
August and Penney have agreed to forfeit the proceeds of the marijuana trafficking.
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Bakersfield Police Department. The Kern County Sheriff’s Office fully cooperated in this investigation. Assistant U.S. Attorneys Angela Scott and Brian Delaney are prosecuting the case.
Florida Man Charged with Distributing Fentanyl, Carfentanil, Meth and EcstacyRead the Press Release
PITTSBURGH - A Florida resident has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to distribute 400 grams or more of fentanyl and a quantity of carfentanil, and distribution of quantities of methamphetamine, carfentanil, and ecstasy, Acting United States Attorney Soo C. Song announced today.
The four-count indictment, returned on August 1 and unsealed Friday, named Robert M. Gilner, a/k/a Gman19635, 30, of St. Petersburg, FL, as the sole defendant.
According to the indictment, Gilner conspired with others, in the Western District of Pennsylvania and elsewhere, to distribute 400 grams or more of fentanyl and a quantity of carfentanil. Additionally, the indictment charges that, on March 10, 2017, he distributed a quantity of methamphetamine and, on March 22, 2017, he distributed a quantity of carfentanil and a quantity of ecstasy.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $13,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, United States Postal Inspection Service, and Immigration and Customs Enforcement/Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Individuals Charged in Manhattan Federal Court with Conspiring to Possess over 2,000 Kilograms of Cocaine in Violation of Federal Maritime Drug Enforcement LawsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Field Division (“DEA”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), George Beach, the Superintendent of the New York State Police (“NYSP”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and George Beach, Superintendent, New York State Police, announced charges against five defendants for allegedly possessing and conspiring to possess with the intent to distribute over 2,000 kilograms of cocaine, in violation of the maritime drug enforcement laws of the United States. IVAN CORTES MOLINERO, FRANCISCO JAVIER OCHOA JOAQUIN, MIGUEL CHAVEZ DELGADO, ENEDINO GATAN VARGAS, and FERNANDO MORENO HERNANDEZ were transported to and arrived in the Southern District of New York on August 4, 2017, and are expected to be presented later today, before Magistrate Judge Ronald L. Ellis in Manhattan federal court.
Manhattan Acting U.S. Attorney Joon H. Kim said: “These five defendants allegedly made a brazen attempt to ship nearly 5,000 pounds of cocaine to the U.S., packing the drugs in a speedboat and then trying to outrun authorities in the waters off of Mexico. I want to thank our law enforcement partners, who stopped this massive shipment of narcotics from arriving at our shores.”
DEA Special Agent in Charge James J. Hunt said: “From digging border tunnels to using go-fast boats, drug cartels will stop at nothing to get their illicit product into America. This seizure was a significant profit loss to the traffickers with a sobering effect to drug users in the U.S. I would like to thank our law enforcement partners in the U.S, Mexico and Colombia for their diligent work and collaboration on this investigation.”
HSI Special Agent-in-Charge Angel Melendez said: “This team of perpetrators allegedly attempted to bring more than two tons of cocaine though U.S. borders. It is the collaborative effort with the DEA and other federal and local agencies that law enforcement was able to interdict this action and keep deadly drugs off American streets.”
NYPD Commissioner James P. O’Neill said: “As alleged, this criminal enterprise attempted to import a significant amount of cocaine to the United States by boat but law enforcement intercepted this shipment, five individual were taken into custody, and were subsequently charged. This investigation demonstrates the commitment of the NYPD to work alongside our federal partners to stop illegal drugs from entering our communities and hold responsible those who work to profit from illegal narcotics.”
State Police Superintendent George P. Beach II said: “We simply will not tolerate this type of alleged illegal drug trafficking activity in New York State. The valuable partnerships developed through the New York Organized Crime Drug Enforcement Strike Force were instrumental in these arrests and the seizure of these lethal narcotics. I want to thank our federal, state and local partners for their ongoing hard work and collaboration on this case, which has resulted in the arrests and removal of five alleged dangerous criminals who profit at the expense of our communities.”
As alleged in the criminal Complaint,[1] filed earlier this week in Manhattan federal court:
The DEA has been investigating a Colombian drug cartel (the “Cartel”) that sends shipments of cocaine to various points around the world by, among other methods, panga boats or “go-fasts.” Go-fasts are small boats, typically similar in size to speed boats, with hulls of approximately 20 to 50 feet and a maximum capacity of approximately five passengers.
On or about July 8, 2017, a United States Navy Aircraft (the “Aircraft”) was on routine patrol off the western coast of Mexico and approximately 590 nautical miles south of Mexico. While there, an occupant of the Aircraft observed what appeared to be a go-fast boat (the “Go-Fast”). The Aircraft communicated this information to the command of the United States Coast Guard (the “Coast Guard”), which dispatched a Coast Guard cutter (the “Cutter”) to intercept and board the Go-Fast.
The Cutter approached the Go-Fast and launched a helicopter and a patrol boat (the “Patrol Boat”), which proceeded to intercept the Go-Fast. Occupants of the Patrol Boat (the “Boarding Team”) boarded and gained control of the Go-Fast, where they found CORTES MOLINERO, OCHOA JOAQUIN, CHAVEZ DELGADO, GATAN VARGAS, and MORENO HERNANDEZ.
The Boarding Team observed numerous bales or large bundles wrapped in black plastic and brown tape on the deck of the Go-Fast. The bales were in plain sight and occupied a substantial portion of the deck of the Go-Fast.
The Boarding Team recovered approximately 107 bales and one loose brick from the Go-Fast. Two samples from the bales were field-tested, and tested positive for the presence of cocaine. In total, the contents of the 107 bales and brick weighed approximately 2,141 kilograms or approximately 4,720 pounds.
* * *
CORTES MOLINERO, 30, OCHOA JOAQUIN, 40, CHAVEZ DELGADO, 46, GATAN VARGAS, 51, and MORENO HERNANDEZ 31, are citizens of Mexico. Each defendant is charged with one count of conspiring to violate maritime drug enforcement laws and one count of violating maritime drug enforcement laws by possessing with the intent to distribute cocaine. Each defendant faces a maximum sentence of life imprisonment and a mandatory minimum sentence of ten years’ imprisonment. The statutory maximum penalties and mandatory minimum penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding efforts of the DEA’s New York Drug Enforcement Strike Force, which is comprised of officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations, the New York State Police, and the U.S. Marshal Service, among other agencies. Mr. Kim also praised the outstanding efforts and assistance provided by the Coast Guard, United States Customs and Border Protection, the United States Navy, and the Naval Criminal Investigative Service.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Jane Kim is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
Firearms Crime ReportRead the Press Release
Nicholas Baldwin, 35, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Kenneth Gooch, 42, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Cedric Jennings, 42, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime and felon in possession of one or more firearms.
Marlon Williams, 45, was indicted by a federal grand jury for felon in possession of a firearm.
Anthony Young, 44, was indicted by a federal grand jury for felon in possession of a firearm.
Joseph A. Tolcou, 26, pled guilty to one felony count of felon in possession of a firearm.
Robert Earl Davis, 28, pled guilty to one felony count of felon in possession of a firearm.
Carl L. Winston, 51, pled guilty to one felony count of felon in possession of a firearm.
Sandy Griffin, 19, pled guilty to one felony count of transferring a firearm, knowing that the firearm would be used in a crime of violence that is, armed robbery.
Deangelo H. Young, 24, pled guilty to one felony count of felon in possession of a firearm.
Lorenzo Waller, 40, was sentenced to 120 months in prison for possession of a stolen firearm.
Melvin C. Christian, 35, was sentenced to 102 months in prison for felon in possession of a firearm and possession with intent to distribute cocaine base and heroin.
Federal Jury Convicts Dallas Man of Firearm and Drug Offenses Involving HeroinRead the Press Release
DALLAS — Following a three-day trial before U.S. District Judge Sam A. Lindsay, today a federal jury convicted Laroy Damont Johnson, 37, of Dallas, of drug and firearm offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Johnson was convicted of one count of possession with intent to distribute a controlled substance, namely, heroin, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm. The drug count carries a maximum penalty of up to 20 years in federal prison and a $1,000,000 fine. The felon-in-possession count carries a maximum statutory penalty of 10 years and a $250,000 fine. The firearm-in-furtherance count carries a mandatory five-year term of imprisonment that must run consecutively to all other counts. Sentencing is set for December 4, 2017.
According to evidence presented at trial, Johnson was staying at a hotel room in Dallas that he used to sell heroin. Law enforcement searched the room and found Johnson sitting on the couch next to three cell phones and nearly $5,000 cash; distribution quantities of heroin in the fridge; a table covered in what appeared to be heroin residue, along with Xanax pills in a plastic baggie, cocaine, a digital scale, and a razor blade; and a loaded firearm wedged between the mattress and the box spring of the bed. The government presented other evidence suggesting that Johnson had been staying in the room for several days distributing drugs.
The Drug Enforcement Administration and the Irving Police Department investigated. Assistant U.S. Attorneys Andrew Wirmani and Jamie L. Hoxie prosecuted the case.
# # #
Executor of Estate Sentenced for Fraudulent Sale of CondoRead the Press Release
TOPEKA, KAN. - A Wabaunsee County woman who pleaded guilty to fraud while serving as executor of her mother’s estate was sentenced Monday to two years in federal prison, U.S. Attorney Tom Beall said.
Julie D. Woodland, 56, Maple Hill, Kan., pleaded guilty to one count of interstate transportation of funds obtained by fraud. In her plea, she admitted she served as trustee of trusts set up by her parents, Stephen W. Dibble and Elaine R. Dibble. It was her parents’ intent that proceeds of the trusts be shared equally among Woodland and her siblings, Lance A. Dibble and Stan Dibble. Woodland also was executor of her mother’s estate.
Woodland sold a condo in Texas belonging to the trust for $270,000. She distributed half the proceeds to her brother, Stan Dibble, and she kept the rest. Her brother, Lance Dibble, requested an accounting of the trust funds, but she refused to provide the information.
Beall commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
E-Commerce Company and Top Executive Agree to Plead Guilty to Price-Fixing Conspiracy for Customized Promotional ProductsRead the Press Release
An e-commerce company and its top executive have agreed to plead guilty to conspiring to fix prices for customized promotional products sold online to customers in the United States. Zaappaaz Inc. (d/b/a WB Promotions Inc., Wrist-Band.com and Customlanyard.net) and its president Azim Makanojiya agreed to plead guilty to a one-count criminal violation of the Sherman Act.
Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division, Acting U.S. Attorney Abe Martinez and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division made the announcement.
According to the felony charges filed today in the U.S. District Court for the Southern District of Texas in Houston, the conspirators attended meetings and communicated in person and online. The investigation has revealed that the conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype and Whatsapp, to reach and implement their illegal agreements. Specifically, the defendants and their co-conspirators agreed, from as early as 2014 until June 2016, to fix the prices of customized promotional products sold online, including wristbands and lanyards. In addition to agreeing to plead guilty, Zaappaaz has agreed to pay a $1.9 million criminal fine.
“As today’s charges show, criminals cannot evade detection by conspiring online and using encrypted messaging,” said Acting Assistant Attorney General Andrew Finch. “In addition, today’s charges are a clear sign of the Division’s commitment to uncovering and prosecuting collusion that affects internet sales. American consumers have the right to a marketplace free of unlawful collusion, whether they are shopping at retail stores or online.”
“Schemes like the defendants’ cause financial harm to consumers who purchase goods and services and to businesses who sell goods and services in compliance with the laws of the United States,” said Acting U.S. Attorney Abe Martinez. “The United States will continue to investigate and prosecute individuals and businesses who seek to gain an illegal advantage.”
“The FBI stands ready to protect consumers from unscrupulous business practices,” said Special Agent in Charge Perrye K. Turner. “Antitrust laws help protect the competitive process for the benefit of all consumers.”
Makanojiya is charged with price fixing in violation of the Sherman Act which carries a maximum sentence of 10 years in federal prison and a maximum fine of $1 million for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine.
Both defendants have agreed to cooperate with the Antitrust Division’s ongoing investigation. The plea agreements are subject to court approval.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
E-Commerce Company and Top Executive Agree to Plead Guilty to Price-Fixing Conspiracy for Customized Promotional ProductsRead the Press Release
HOUSTON - An e-commerce company and its top executive have agreed to plead guilty to conspiring to fix prices for customized promotional products sold online to customers in the United States. Zaappaaz Inc. (d/b/a WB Promotions Inc., Wrist-Band.com and Customlanyard.net) and its president Azim Makanojiya agreed to plead guilty to a one-count criminal violation of the Sherman Act.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division made the announcement.
According to the felony charges filed today in the U.S. District Court for the Southern District of Texas in Houston, the conspirators attended meetings and communicated in person and online. The investigation has revealed that the conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype and Whatsapp, to reach and implement their illegal agreements. Specifically, the defendants and their co-conspirators agreed, from as early as 2014 until June 2016, to fix the prices of customized promotional products sold online, including wristbands and lanyards. In addition to agreeing to plead guilty, Zaappaaz has agreed to pay a $1.9 million criminal fine.
“As today’s charges show, criminals cannot evade detection by conspiring online and using encrypted messaging,” said Finch. “In addition, today’s charges are a clear sign of the Division’s commitment to uncovering and prosecuting collusion that affects internet sales. American consumers have the right to a marketplace free of unlawful collusion, whether they are shopping at retail stores or online.”
“Schemes like the defendants’ cause financial harm to consumers who purchase goods and services and to businesses who sell goods and services in compliance with the laws of the United States,” said Martinez. “The United States will continue to investigate and prosecute individuals and businesses who seek to gain an illegal unfair advantage.”
“The FBI stands ready to protect consumers from unscrupulous business practices,” said Turner. “Antitrust laws help protect the competitive process for the benefit of all consumers.”
Makanojiya is charged with price fixing in violation of the Sherman Act which carries a maximum sentence of 10 years in federal prison and a maximum fine of $1 million for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine.
Both defendants have agreed to cooperate with the Antitrust Division’s ongoing investigation. The plea agreements are subject to court approval.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
District Court Enters Permanent Injunction Against Utah Pharmacy and Its Executives to Prevent Distribution of Adulterated, Misbranded and Unapproved New DrugsRead the Press Release
The U.S. District Court for the District of Utah entered a consent decree of permanent injunction against defendants Isomeric Pharmacy Solutions LLC (Isomeric), William O. Richardson, who serves as its Chief Executive Officer, Rachael S. Cruz, who serves as its Chief Sales Officer, and Jeffery D. Brown, who serves as its Chief Operating Officer. The injunction permanently enjoins the defendants from distributing adulterated, misbranded and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act.
The Department filed a complaint in the U.S. District Court for the District of Utah on July 27, at the request of the U.S. Food and Drug Administration (FDA), alleging, among other things, that the defendants failed to adequately address insanitary conditions that resulted in contamination in certain processing areas used by Isomeric.
According to the complaint, Isomeric manufactures, labels, and distributes sterile drugs, including injectable hormones, injectable corticosteroids, and ophthalmic drops. The pharmacy distributes most of its drugs directly to physicians throughout the United States. According to the complaint, Isomeric has a history of manufacturing injectable and ophthalmic drug products under conditions that fall short of the minimum requirements to ensure safety and quality.
“Compounding pharmacies must produce their drugs in a way that does not potentially endanger patient safety,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work actively with FDA to ensure that compounding pharmacies comply with the law and provide safe products that doctors and patients can rely on.”
Isomeric initiated three voluntary recalls in 2016, and a fourth in 2017 following an FDA inspection. The 2016 recalls involved three types of injectable suspension drugs: triamcinolone diacetate 40 mg/mL, methylprednisolone acetate/lidocaine HCl 40/10 mg/mL, and betamethasone acetate/betamethasone sodium phosphate. On April 6, 2017, Isomeric recalled all lots of non-expired drug products intended to be sterile that the pharmacy compounded and distributed nationwide between Oct. 4, 2016, and Feb. 7, 2017.
According to the complaint, FDA documented a number of insanitary conditions during a 2017 inspection of Isomeric. FDA observed, following a review of the pharmacy’s own records, that Isomeric repeatedly recovered several types of microorganisms in the air and on surfaces used for sterile processing, demonstrating that products manufactured in those areas were prepared, packed, or held under insanitary conditions, as alleged in the complaint. The complaint further alleges that Isomeric released for distribution over 100 batches of purportedly sterile finished products that had been processed in one or more areas containing particles in excess of the pharmacy’s “action limit” for particulates.
“Isomeric endangered the public health by manufacturing injectable drugs under poor conditions that compromised their required sterility and put patients at risk,” said FDA Commissioner Scott Gottlieb, M.D. “We will continue taking strong enforcement actions against compounders who violate the Drug Quality and Security Act and put patients at risk by failing to produce sterile drugs in compliance with the law.”
In addition, according to the complaint, FDA found deviations of current good manufacturing practice requirements in the pharmacy’s sterile drug manufacturing operations. As alleged in the complaint, Isomeric failed to thoroughly review and investigate unexplained discrepancies and the failure of a batch or any of its components to meet any of its specifications, whether or not the batch was already distributed. In one example, according to the complaint, Isomeric failed to conduct an adequate investigation of black particles observed in vials of product that had “passed” visual inspection.
“The Food, Drug, and Cosmetic Act is designed to protect patients from unsafe drugs,” said U.S. Attorney John W. Huber for the District of Utah. “Today’s enforcement action demonstrates our commitment to ensuring that when deficiencies in drug compounding are identified, they are properly addressed. We will take whatever actions are necessary to reduce the risk to patients who rely on such drugs.”
The defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. As part of the resolution, defendants agree not to resume manufacturing, holding or distributing drugs until they comply with specific remedial measures set forth in the order entered by the Court. Among other requirements, the defendants must hire a qualified independent expert to recommend and direct the implementation of corrective actions. The decree also specifically requires that defendants establish and implement procedures to ensure a thorough investigation of any unexplained discrepancy or failure in a drug batch, regardless of whether the batch has been distributed.
The government is represented by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Sandra L. Steinvoort of the U.S. Attorney’s Office for the District of Utah, with the assistance of Senior Counsel Claudia J. Zuckerman of FDA’s Office of the Chief Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Utah, visit its website at https://www.justice.gov/usao-ut.
Dallas Man Sentenced to 20 Years in Federal Prison for His Role in a Drug Trafficking OrganizationRead the Press Release
DALLAS — Joshua Diaz, 28, a Dallas man who was arrested in June 2016 following a law enforcement investigation into a drug trafficking organization that operated out of the Pleasant Grove, Seagoville and Balch Springs areas, has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
Last week, Diaz was sentenced by Chief U.S. District Judge Barbara M.G. Lynn to 240 months in federal prison. Diaz pleaded guilty to one count of distribution of a controlled substance in October 2016.
According to documents filed in the case, on May 10, 2016, Diaz supplied an undercover officer with approximately 951 grams of methamphetamine. Diaz is responsible for at least 1550.84 grams of methamphetamine.
The investigation into this drug trafficking organization began in early January 2016. During the investigation, law enforcement has seized more than 6700 grams of methamphetamine, approximately 13.2 kilograms of methamphetamine oil, 62 grams of marijuana, 2.5 grams of heroin, and 20 ml of gamma hydroxybutyrate (GHB), as well as 12 firearms and $12,379 in cash.
The Dallas Police Department and the Texas Department of Public Safety investigated the case. Assistant U.S. Attorney Andrew Wirmani prosecuted.
# # #
Devils Lake Man Sentenced on Federal Drug ChargeRead the Press Release
FARGO – U.S. Attorney Christopher C. Myers announced that on August 7, 2017, Jeremy Arlen Crist, age 40, of Devils Lake, ND, was sentenced before U.S. District Judge Ralph R. Erickson to serve 10 years in prison for Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance. Judge Erickson further sentenced Crist to 8 years of supervised release and ordered him to pay a $100 special assessment to the Crime Victims’ Fund.
A Confidential Informant (CI) working with the Lake Region Narcotics Task Force arranged a methamphetamine deal to take place in nearby St. Michael, North Dakota. Law enforcement officers followed the CI to St. Michael where two individuals, one later identified as Crist, were observed by law enforcement exiting the vehicle. Officers approached and found Crist in possession of marijuana in addition to a plastic baggie with purported methamphetamine residue; Crist was subsequently arrested on those charges. Law enforcement further discovered and seized a total of 12 bags of methamphetamine, as well as drug paraphernalia indicative of illicit drug sales. A purity analysis of the methamphetamine that Crist had was conducted and found to be over 99.5% pure.
This case was investigated by the Lake Region Narcotics Task Force; Devils Lake Police Department; North Dakota Bureau of Criminal Investigation; Bureau of Indian Affairs; U S Fish & Wildlife Service; Benson County State’s Attorney’s Office; and the North Dakota Crime Laboratory.
This case is being prosecuted by Assistant United States Attorney Jake Rodenbiker.
http://www.usdoj.gov/usao/nd
Colorado Woman Brandi Leonard Sentenced to Lengthy Prison Term for Producing Child PornographyRead the Press Release
DENVER – Brandi Leonard, age 20, was sentenced last week by U.S. District Court Judge Philip A. Brimmer to serve 240 months (20 years), followed by 10 years on supervised release for production of child pornography, Acting U.S. Attorney Bob Troyer, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert, and Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department announced. Co-defendant Richard Hennis, age 41, of Colorado Springs, Colorado, was previously sentenced also by Judge Brimmer to serve 324 months (27 years) in federal prison for the production and transportation of child pornography. Following his prison sentence, Hennis was also ordered to serve 10 years of supervised release. Defendant Leonard, who appeared at the hearing in custody, was remanded at its conclusion.
Leonard and co-defendant Hennis were first charged by criminal complaints on March 11, 2016. They were then indicted by a federal grand jury in Denver on April 5, 2016. Leonard pled guilty on April 13, 2017, and was sentenced on August 3, 2017. Hennis pled guilty before Judge Brimmer on November 21, 2016, and was sentenced on April 19, 2017.
According to evidence presented in open court, as well as information contained in public filings, including the stipulated facts contained in Leonard’s plea agreement, Leonard and Hennis engaged in online chats spanning approximately one month. Leonard told Hennis that she had sexually abused an infant. Hennis encouraged Leonard to sexually abuse the infant again, to take pictures or video of the abuse, and to send them to him. Leonard did exactly what Hennis had asked. Law enforcement recovered the pictures that were produced of the infant from Hennis’s phone. Hennis then sent the sexual abuse images of the infant to another individual he was communicating with online.
During their chats, the two defendants discussed in graphic detail kidnapping, raping, killing and dismembering a child between the ages of 4 and 8 years old. Leonard twice during the chat indicated that she didn’t intend to go through with it.
“Understand this: federal law enforcement has highly motivated, expert teams standing ready to present the harshest possible punishment if you victimize an infant,” said Acting U.S. Attorney Bob Troyer.
“Crimes perpetrated against children are especially heinous,” said John Eisert, acting special agent in charge of HSI Denver. “I’m proud of the work HSI and our law enforcement partners did to identify these malicious predators and rescue the victim in this egregious case — as well as prevent potential future crimes against other children.”
“The Colorado ICAC would like to thank all individuals that assisted with this investigation,” said ICAC Commander for Colorado, Lieutenant Christina Sheppard of the Colorado Springs Police Department. “Due to their tireless efforts a conviction was obtained and the defendant was sentenced appropriately.”
This case was investigated by HSI and the Colorado Springs Police Department’s ICAC Unit, with support provided by the Limon Police Department.
The defendants were prosecuted by Assistant U.S. Attorney Alecia L. Riewerts, assigned to the Cybercrime and National Security Section of the Colorado U.S. Attorney’s Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Colombian Man Admits Transporting Illegal AliensRead the Press Release
ALBANY, NEW YORK – Brayan Granados-Betancourt, age 24, and a citizen of Colombia, was sentenced on August 4 to time served (29 days in jail) for transporting two Mexican citizens who had illegally entered the United States from Canada.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Granados-Betancourt admitted that on July 7, 2017, he drove a rental car to the Akwesasne reservation in Hogansburg, New York, where he picked up the two Mexican citizens and drove them to Ellenburg, New York. Acting on a civilian tip, Border Patrol stopped the car and arrested the three men.
The Mexican citizens, who crossed from Canada into the United States by boat, were Granados-Betancourt’s acquaintances and he agreed to bring them to New York City. The Mexican citizens, Marcelo Chavez-Vera and Carlos Olivar-Varon, were each convicted on July 20 of illegal entry, a misdemeanor.
Granados-Betancourt was in the United States on a visitor’s visa. Following his sentencing, he was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Douglas Collyer.
Claims for Restitution by Victims of Former Oncologist Farid Fata's Cancer Treatments Scheme Are Being ApprovedRead the Press Release
Farid Fata, a former hematologist-oncologist, pleaded guilty to health care fraud, money laundering, and conspiracy to pay or receive kickbacks. As part of the defendant’s scheme, he deliberately administered medically unnecessary injections and infusions to patients, including chemotherapy, iron, cancer treatment drugs, and other medications. The district court judge imposed a sentence of 45 years in prison. During the prosecution, the government seized approximately $11.9 million. In an effort to return the money seized from Fata to his patients and their heirs, the Department of Justice has voluntarily instituted a restitution process and retained a Facilitator to assist the Department of Justice in the process.
As described in the Report of the Facilitator, which can be found at https://www.justice.gov/usao-edmi/us-v-farid-fata-court-docket-13-cr-20600 (1/12/2017 posting), the Department of Justice has always been on victims’ side in an effort to make the complicated process of federal restitution as easy as possible for patients who we know are suffering emotionally, physically, and financially.
At the end of July, those former patients and heirs who submitted claims for restitution received a “Provisional Decision Letter” from the Facilitator, Ms. Randi Ilyse Roth, describing her preliminary recommendation regarding their claims. Ms. Roth has preliminarily approved 74% of the claims submitted in part or in full. For those who received a preliminary denial of any part of their claim, the “Provisional Decision Letter” explains, “If you do not agree with this outcome, you may request reconsideration.” Reconsideration allows each claimant who was denied all or any portion of their claim to submit any missing paperwork and ask the Facilitator to reconsider their claim. Any requests for reconsideration must be postmarked on or before August 23. Once the reconsideration process by the Facilitator is complete, claimants will have an opportunity to request review by a magistrate judge if they believe a mistake has been made regarding the recommendation by the Facilitator. Ultimately, final restitution decisions will be made by the Court.
We are urging claimants, who do not understand why all or a portion of their claims were denied, to call the Facilitator’s toll-free number to get their questions answered: 1-877-202-3282. Highly trained, phone agents are there to assist victims. The Justice Department’s goal continues to be the distribution of Fata’s assets to every former patient or heir who submits an eligible claim for restitution. The Department recognizes that the prosecution and now the process of federal restitution has been difficult for victims and their families and that is why we have attempted to assist the former patients and family members of patients every day since August of 2013. We continue to be available to assist by having the toll-free line available every business day from 9:00am to 8:00pm
Car Salesman Pleads Guilty to Identity Theft Scheme on Eve of TrialRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to charges of conspiracy, bank fraud, and identity theft.
According to the statement of facts filed with the plea agreement, Bryan Lewis, 28, was employed as Sales Consultant at Priority Chevrolet in Chesapeake from 2011 until June 2016. In late 2014, Lewis agreed to provide an associate, Joseph Edmonds, with his customers’ personal identifying information for use in an account opening and takeover scheme through which the two planned to obtain money from bank, credit, retail, and phone accounts opened in those customers’ names. Between December 2014 and January 2016, Lewis provided Edmonds with the names, dates of birth, and social security numbers of at least 20 actual and potential Priority Chevrolet customers with whom Lewis had dealt during that same period. Neither the customers nor Priority Chevrolet knew of or consented to Lewis’s transfer of this information to Edmonds. Edmonds used the information that Lewis provided to apply for, open, and access accounts through at least 12 financial institutions and retailers. Edmonds then used these accounts to conduct transactions through which he attempted to obtain nearly $60,000. For his participation in the scheme, Lewis received approximately $1,500, all of which derived from the proceeds Edmonds obtained through his use of the information Lewis had provided.
Lewis pleaded guilty to conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Trial of his case was set to begin tomorrow morning in Newport News. Lewis faces a maximum penalty of 30 years in prison, along with a mandatory, consecutive penalty of 2 years in prison when sentenced on November 16. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Richard W. Myers, Chief of Newport News Police, made the announcement after U.S. District Judge Mark S. Davis accepted the plea. Assistant U.S. Attorney Kaitlin C. Gratton and Special Assistant United States Attorney Alexander B. Gottfried are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-20.
Canandaigua Man Sentenced for Threatening Shooting at Albany VA Medical CenterRead the Press Release
ALBANY, NEW YORK - Robert J. Seifert, age 59, of Canandaigua, New York, was sentenced on August 3 to time served (about 12.5 months in jail), as well as 3 years of supervised release, for threatening to commit a mass shooting at the Stratton VA Medical Center in Albany.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Special Agent in Charge Donna L. Neves of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Northeast Field Office.
On March 31, 2017, Seifert pled guilty to a charge of making an interstate threat to injure another. He admitted that on June 15, 2016, he made a phone call to a Veterans Crisis Line operator in Portland, Oregon, in which he stated “I got an Uzi and I wanna kill everybody at the Albany VA,” “Watch what happens when I get to the Albany VA with my Uzi and I start shooting people up,” and “I’m going to [expletive] kill everybody there.”
This case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General and prosecuted by Assistant U.S. Attorney Michael Barnett.
California man charged in Plainfield cyber-threat caseRead the Press Release
Alleged to have extorted and made death threats to minor victims, and to use explosive devices at Plainfield and Danville High Schools.
PRESS RELEASE
Indianapolis –United States Attorney Josh J. Minkler announced today that a Bakersfield, California, man has been federally charged for his role in threatening to use explosive devices at Plainfield and Danville, Indiana High Schools, making cyber threats to female victims and producing child pornography. Buster Hernandez, 26, was charged with threats to use an explosive device, threats to injure and sexual exploitation of a child.
“Terrorizing young victims through the use of social media and hiding behind the anonymity of the Internet will not be tolerated by this office,” said Minkler. “Those who think they can outwit law enforcement and are above being caught should think again. Mr. Hernandez’s reign of terror is over.”
According to court documents, the Brownsburg Police Department contacted the FBI in December 2015, asking for assistance with a cyber-threat case involving a minor female victim (Victim 1), a resident of Plainfield Indiana. The threats came from a person known only at the time as “Brian Kil” who used Facebook to communicate with Victim 1 to extort sexually explicit pictures from her. This pattern continued for approximately 16 months with Victim 1 sending sexually explicit images of herself under threat by “Brian Kil.” This technique is commonly referred to as “sextortion.”
When Victim 1 refused to provide additional images as demanded, Hernandez is alleged to have made physical threats to Victim 1, stating “I am coming for you. I will slaughter your entire class and save you for last.” He further made threats to law enforcement saying, “I will add a dozen dead police to my tally…Try me pigs, I will finish you off as well.” These threats caused school administrators to close the Plainfield and Danville High Schools. The Shops at Perry Crossing in Plainfield was also closed December 19, 2015, but reopened the following day after law enforcement insured there were no credible threats.
Hernandez is also alleged to have sexually exploited and threatened two other minor victims (Victims 2 and 3). When Victim 2 stopped complying with Hernandez’s demands, he posted sexually explicit images and videos of Victim 2 that she sent to Hernandez against her will. According to the complaint affidavit, Hernandez asked Victim 3 to attend a community forum held in Plainfield, Indiana, and record law enforcement’s statements about the investigation into “Brian Kil.”
In addition, Hernandez is alleged to have “sextorted” a number of victims in at least 10 federal districts.
“This was a unique and complex investigation that highlights the tenacity, perseverance, expertise and dedication of the FBI Indianapolis’ Crimes Against Children Task Force and was a top priority. Innovative techniques were utilized, solutions to roadblocks created and partnerships with key private sector partners were developed,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “I stood in front of concerned parents and community members and told them we would find the person who had been victimizing these young girls and, with the tireless work of our agents and partners, we never gave up.”
Hernandez had his initial appearance in the Eastern District of California on Friday, August 4, 2017, and will be transported by the United States Marshal Service to federal court in Indianapolis where he will face charges from the criminal complaint.
This investigation was jointly conducted by the Federal Bureau of Investigation, the Indiana State Police, the Plainfield Police Department and the Brownsburg Police Department.
Indiana State Police Superintendent Doug Carter said, “I have no doubt Buster Hernandez had forgotten all about Plainfield, Indiana and the terror he inflicted; but none of us here forgot.” Carter concluded, “We said we’d keep looking until we found you, and we did.”
“The FBI told us that this would be a long investigation and they were right,” said Plainfield Police Chief Darel Krieger. “However, with dogged determination they have apprehended a person who they believe is the person who posed as Brian Kil. We are grateful not only to the FBI but to all the agencies involved in this investigation (federal state and local) and the great partnership that was shown over the past 20 months.”
“The Brownsburg Police Department is grateful for the opportunity to have personnel from our agency assigned to such a specialized criminal enforcement division such as the Internet Crimes Against Children,” said Chief Joe Grimes. “These partnerships between federal and local agencies allow for a vast availability of resources to safeguard our communities and demonstrate law enforcement’s commitment to protecting the innocent.”
According to Assistant United States Attorney Tiffany J. Preston who is prosecuting this case for the government, Hernandez faces a mandatory minimum sentence of 15 years’ imprisonment, and a maximum of 30 years’ imprisonment if convicted on all counts.
A criminal complaint is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
If you believe you have been a victim of sextortion by Buster Hernandez, a/k/a Brian Kil, please contact the Indianapolis FBI Office at https://tips.fbi.gov/ or call 317-595-4000, Option 2, to make a report.
Buffalo/Jamaican Drug Dealer Sentenced for Bribery of Postal CarrierRead 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 Rudolph Dwight Hanchard, 40, a Jamaican national living in Buffalo, NY, who was convicted of bribery of a public official and attempt to possess with intent to distribute marijuana, was sentenced to 18 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that Hanchard received mail parcels from California and Arizona that contained marijuana intended for sale in Buffalo. Among his associates was then-postal carrier Briana Fugate. The defendant paid Fugate for marijuana worth approximately $30,000 that Fugate stole from mail parcels that had been entrusted to her for delivery. This arrangement spanned August to October 2015. At the time of Fugate’s arrest in October 2015, Hanchard owed her over $3,000.
The defendant was arrested 2016 while on his way to take custody of another marijuana parcel that had been delivered to a house on Stockbridge Avenue in Buffalo. Hanchard intended to break down that parcel for sale. The defendant was carrying $9,960 in drug proceeds, which he forfeited as part of his conviction.
Briana Fugate has been convicted and is scheduled to be sentenced on August 17, 2017.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and the United States Postal Service, Office of the Inspector General, under the direction of Special Agent-in-Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Fugate is scheduled for sentencing on August 17, 2017, at 12:30 p.m. before Judge Vilardo.
Buffalo Man Charged with Cocaine 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 Darryl M. Greene, 46, of Buffalo, NY, was arrested and charged by criminal complaint with attempt to possess with intent to distribute cocaine. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the complaint, on July 27, 2017, the United States Postal Inspection Service (USPIS) executed a search warrant on a suspicious package mailed from San Diego, California. The package was addressed to a friend of the defendant. Inside, inspectors discovered one kilogram of suspected cocaine.
On July 28, 2017, USPIS and the Drug Enforcement Administration conducted a controlled delivery of the package. A package of sham cocaine was delivered to the friend’s Kensington Avenue residence. Within five minutes of the package’s delivery, Greene arrived at the residence and departed with the package. He was arrested a short time later and released.
On August 3, 2017, the USPIS executed a search warrant on another suspicious package from San Diego, California, which was addressed to a recipient identified as “W. Greene” at 1631 Hertel Avenue in Buffalo. The defendant resided at the residence with his mother. The second package contained a ½ kilogram of suspected cocaine. The defendant was arrested again this morning by law enforcement officers.
Greene made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention on August 9, 2017, at 11:00 a.m.
The complaint is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
4 August 2017
Winchester Man Sentenced on Child Pornography Production ChargesRead the Press Release
Harrisonburg, VIRGINIA – A Winchester man, who filmed himself sexually exploiting two minor children, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
LaMarcus Thomas, 33, of Winchester, Va., was sentenced today to 360 months in federal prison. Thomas previously pled guilty to two counts of production of child pornography.
According to evidence presented at previous hearings, in the fall of 2014, the Winchester Police Department began an investigation into a complaint that two children had been molested by Thomas. When the defendant was arrested on state sex crime allegations for acts against the two children, the Winchester Police Department recovered a cellphone that belonged to Thomas.
Examination of the cell phone revealed numerous images and movies of child pornography depicting two different minor boys. It appeared the two victims were likely sleeping during the production of the images and movies, which showed various images of the penis and hands of the defendant and the penis of one of the minor boys. Thomas admitted producing the child pornography and identified himself and the two minors depicted in the images in the videos. The investigation determined that Thomas spent significant time with the two minors depicted in the videos, including spending overnight visits with the victims.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Virginia State Police and the Winchester Police Department. Virginia State Police conducted the initial forensic examination of the cellphone. Assistant United States Attorney Nancy S. Healey and Criminal Division Trial Attorney Leslie Williams Fisher of the Child Exploitation and Obscenity Section (CEOS) prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Volkswagen Senior Manager Pleads Guilty in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
The former general manager of Volkswagen AG’s (VW) U.S. Environment and Engineering Office, who was a senior aide to VW’s head of engine development, pleaded guilty today for his role in violating the Clean Air Act in connection with VW’s sales of “clean diesel” vehicles in the U.S.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, and Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan made the announcement.
Oliver Schmidt, 48, a citizen and resident of Germany, pleaded guilty to one count of conspiracy to defraud the U.S., to commit wire fraud and to violate the Clean Air Act; and to one count of violating the Clean Air Act. He was indicted by a federal grand jury on January 11, along with five other VW executives and employees. The case is assigned to U.S. District Judge Sean F. Cox of the Eastern District of Michigan, who accepted Schmidt’s plea today. Sentencing has been scheduled for December 6.
“Today’s guilty plea by a VW senior manager follows the successful prosecution of the company earlier this year and of another VW engineer in 2016,” said Acting Assistant Attorney General Blanco. “The Criminal Division is committed to holding both corporations and individuals accountable to the rule of law, and to protecting U.S. consumers and the environment. This case is a great example of this important commitment.”
“Schmidt participated in a fraudulent VW scam that prioritized corporate sales at the expense of the honesty of emissions tests and trust of the American purchasers,” said Deputy Assistant Attorney General Williams. “Schmidt along with each and every official involved in this emissions scandal will be held fully accountable for their actions by the Department of Justice as this investigation continues.”
“We hope this prosecution sends a message of the importance the U.S. Attorney’s Office places on protecting the environment,” said Acting U.S. Attorney Lemisch. “Where criminal charges are appropriate, we will prosecute both corporations and individual employees who pollute and illegally evade our clean air laws.”
As part of his guilty plea, Schmidt admitted that he agreed with other VW employees to mislead and defraud the U.S. and domestic customers who purchased diesel vehicles, and to violate the Clean Air Act. In the spring of 2014, a non-governmental organization in the U.S. published results of a study that showed substantial discrepancies in nitrogen oxide (NOx) emissions from certain VW vehicles when measured on the road compared to standard drive cycle tests. During the summer of 2015, Schmidt was told of the existence of cheating software in certain VW diesel vehicles that had been in place for years that would cause the vehicles to emit substantially higher amounts of NOx when the software detected that the car was not being tested, he admitted.
Schmidt admitted that he participated in discussions with other VW employees in the summer of 2015 to determine how to respond to questions from U.S. regulators about VW’s diesel vehicles without revealing the defeat device. After a meeting with VW management in July 2015, VW management instructed Schmidt to seek a meeting with a senior employee of the California Air Resources Board (CARB) and to obtain approval from CARB for the sale of additional VW diesel vehicles in the U.S. without disclosing the fact that VW was cheating on emissions tests. Schmidt admitted following VW management’s instructions. During two meetings in August 2015, Schmidt attempted to obtain approval for the sale of additional VW diesel vehicles by responding to questions from CARB without revealing what he knew was the truth – that the real cause for the vehicles’ substantially higher emissions on the road was that VW had intentionally installed software designed to cheat and evade emissions testing, he admitted.
Schmidt further admitted that he knew that in August 2015 VW employees submitted to the U.S. Environmental Protection Agency (EPA) two reports pursuant to the Clean Air Act that were fraudulent and misleading. Moreover, Schmidt knew that VW was falsely marketing diesel vehicles to the U.S. public as being environmentally friendly and compliant with U.S. environmental regulations, including by promoting increased fuel economy, he admitted.
As part of his guilty plea, Schmidt agreed that during his participation in the scheme, he and his co-conspirators caused losses to victims of more than $150 million and that he obstructed justice.
The case is being investigated by the FBI’s Detroit Field Office and the EPA’s Criminal Investigation Division, with assistance from Homeland Security Investigations. Securities and Financial Fraud Unit Chief Benjamin D. Singer and Trial Attorney David M. Fuhr of the Fraud Section of the Justice Department’s Criminal Division; Senior Trial Attorney Jennifer Blackwell of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division; and White Collar Chief John K. Neal of the U.S. Attorney’s Office of the Eastern District of Michigan are prosecuting the case.
Volkswagen Senior Manager Pleads Guilty in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
The former general manager of Volkswagen AG’s (VW) U.S. Environment and Engineering Office, who was a senior aide to VW’s head of engine development, pleaded guilty today for his role in violating the Clean Air Act in connection with VW’s sales of “clean diesel” vehicles in the U.S.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, and Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan made the announcement.
Oliver Schmidt, 48, a citizen and resident of Germany, pleaded guilty to one count of conspiracy to defraud the U.S., to commit wire fraud and to violate the Clean Air Act; and to one count of violating the Clean Air Act. He was indicted by a federal grand jury on January 11, along with five other VW executives and employees. The case is assigned to U.S. District Judge Sean F. Cox of the Eastern District of Michigan, who accepted Schmidt’s plea today. Sentencing has been scheduled for December 6.
“Today’s guilty plea by a VW senior manager follows the successful prosecution of the company earlier this year and of another VW engineer in 2016,” said Acting Assistant Attorney General Blanco. “The Criminal Division is committed to holding both corporations and individuals accountable to the rule of law, and to protecting U.S. consumers and the environment. This case is a great example of this important commitment.”
“Schmidt participated in a fraudulent VW scam that prioritized corporate sales at the expense of the honesty of emissions tests and trust of the American purchasers,” said Deputy Assistant Attorney General Williams. “Schmidt along with each and every official involved in this emissions scandal will be held fully accountable for their actions by the Department of Justice as this investigation continues.”
“We hope this prosecution sends a message of the importance the U.S. Attorney’s Office places on protecting the environment,” said Acting U.S. Attorney Lemisch. “Where criminal charges are appropriate, we will prosecute both corporations and individual employees who pollute and illegally evade our clean air laws.”
As part of his guilty plea, Schmidt admitted that he agreed with other VW employees to mislead and defraud the U.S. and domestic customers who purchased diesel vehicles, and to violate the Clean Air Act. In the spring of 2014, a non-governmental organization in the U.S. published results of a study that showed substantial discrepancies in nitrogen oxide (NOx) emissions from certain VW vehicles when measured on the road compared to standard drive cycle tests. During the summer of 2015, Schmidt was told of the existence of cheating software in certain VW diesel vehicles that had been in place for years that would cause the vehicles to emit substantially higher amounts of NOx when the software detected that the car was not being tested, he admitted.
Schmidt admitted that he participated in discussions with other VW employees in the summer of 2015 to determine how to respond to questions from U.S. regulators about VW’s diesel vehicles without revealing the defeat device. After a meeting with VW management in July 2015, VW management instructed Schmidt to seek a meeting with a senior employee of the California Air Resources Board (CARB) and to obtain approval from CARB for the sale of additional VW diesel vehicles in the U.S. without disclosing the fact that VW was cheating on emissions tests. Schmidt admitted following VW management’s instructions. During two meetings in August 2015, Schmidt attempted to obtain approval for the sale of additional VW diesel vehicles by responding to questions from CARB without revealing what he knew was the truth – that the real cause for the vehicles’ substantially higher emissions on the road was that VW had intentionally installed software designed to cheat and evade emissions testing, he admitted.
Schmidt further admitted that he knew that in August 2015 VW employees submitted to the U.S. Environmental Protection Agency (EPA) two reports pursuant to the Clean Air Act that were fraudulent and misleading. Moreover, Schmidt knew that VW was falsely marketing diesel vehicles to the U.S. public as being environmentally friendly and compliant with U.S. environmental regulations, including by promoting increased fuel economy, he admitted.
As part of his guilty plea, Schmidt agreed that during his participation in the scheme, he and his co-conspirators caused losses to victims of more than $150 million and that he obstructed justice.
The case is being investigated by the FBI’s Detroit Field Office and the EPA’s Criminal Investigation Division, with assistance from Homeland Security Investigations. Securities and Financial Fraud Unit Chief Benjamin D. Singer and Trial Attorney David M. Fuhr of the Fraud Section of the Justice Department’s Criminal Division; Senior Trial Attorney Jennifer Blackwell of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division; and White Collar Chief John K. Neal of the U.S. Attorney’s Office of the Eastern District of Michigan are prosecuting the case.
Virginia Man Sentenced to 360 Months for Production of Child PornographyRead the Press Release
A Virginia man was sentenced today to 360 months in prison and a lifetime of supervised release for production of child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Rick A. Mountcastle of the Western District of Virginia.
LaMarcus Thomas, 33, of Winchester, Virginia, previously pleaded guilty to two counts of production of child pornography. Chief U.S. District Judge Michael F. Urbanski presided over the sentencing.
Through the course of an investigation by the Winchester Police Department on other charges, Thomas was discovered to have multiple images and videos of child pornography, involving two different minor victims, contained in his cellular phone. When interviewed by the FBI, Thomas admitted to producing the images and videos of child pornography.
This case was investigated by the FBI and the Winchester Police Department, and Virginia State Police aided with the forensic analysis of digital media.
The case was prosecuted by Assistant U.S. Attorney Nancy Healey of the Western District of Virginia and Trial Attorney Leslie Williams Fisher of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Senate Confirms Jay E. Town as U.S. Attorney for North AlabamaRead the Press Release
BIRMINGHAM – The U.S. Senate today confirmed Jay E. Town as U.S. Attorney for the Northern District of Alabama.
Town was in the first wave of U.S. Attorneys nominated by President Donald J. Trump and is one of the first three to be confirmed by the Senate. He will take office next week.
Town, 43, a former judge advocate in the U.S. Marine Corps, has been a prosecutor in the Madison County District Attorney’s Office since arriving in Huntsville in 2005. He leaves that office as a senior prosecutor focused on prosecuting a full catalogue of crimes, including capital murder, murder, robbery and burglary. Town assisted the district attorney and the Alabama D.A.’s Association in a variety of administrative, training and legislative functions. Town also was instrumental in forming the Madison County Veterans Court, one of the first such diversionary courts in Alabama dedicated to the physical and mental health needs of veterans in the criminal justice system.
“I am humbled and honored to continue to serve the great people of Alabama as United States Attorney for the Northern District,” Town said. “I am grateful for the special trust and confidence shown me by President Trump, Attorney General Sessions, Senator Shelby, Senator Strange, and all of those who supported me throughout this process. I inherit a very capable office and look forward to joining them in continuing to do great things.”
Town served in the Marine Corps for 12 years and was honorably discharged in 2008, attaining the rank of major. Before moving to Alabama, he was outside counsel at a large firm in New Jersey focused on commercial defense of major pharmaceutical, commercial and surety companies involved in litigation with federal agencies, including the U.S. Attorney’s Office for the District of New Jersey, the FBI and the U.S. Food and Drug Administration.
Town has sat on several charitable boards, to include the Congressional Medal of Honor Foundation, a national organization promoting educational, patriotic and veterans’ initiatives directed by the living Medal of Honor recipients. He also served as chairman of the Audit Committee, President’s Advisory Group, and was a member of the Foundation’s Executive Committee. He also serves as a director for America’s Warrior Partnership which is a national organization which empowers communities to empower veterans through community integration. He is an original board member of The Bennie Adkins Foundation which provides scholarships to veterans in Alabama. He also was chairman of the Boys & Girls Clubs of North Alabama for two years and a board member for nearly a decade.
The National Society of the Daughters of the American Revolution awarded Town the Medal of Honor for his many charitable activities.
Town has taught as an adjunct professor at the University of Alabama-Huntsville in the Department of Political Science with the curriculum focused on executive war powers and the Geneva Conventions.
He is a former member of the Huntsville Committee of 100 and a graduate of Leadership Alabama.
Town earned a bachelor’s degree in Government & International Relations from the University of Notre Dame in 1995 and received his Juris Doctor from the Seton Hall University School of Law in 1998. He is a member of the State Bars of Indiana, New Jersey and Alabama, and the Supreme Court of the United States.
###
Two Miami-Dade Brothers Convicted of Offenses Involving Drug Trafficking, Firearms and Evidence TamperingRead the Press Release
Two Miami-Dade brothers pled guilty in federal court, on July 28, 2017, for their involvement in a drug trafficking scheme.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; Katherine Fernandez Rundle, State Attorney, Miami-Dade State Attorney’s Office; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Michael Palermo, 29, pled guilty to maintaining a drug-involved premises, possessing with the intent to deliver controlled substances, possessing a firearm while a convicted felon, and possessing of a firearm in furtherance of a drug trafficking crime. He faces a maximum statutory sentence of life in prison.
According to the court record, including the agreed upon factual proffer, between February 25, 2017 and April 13, 2017, Michael Palermo used his residence to manufacture and sell controlled substances. On April 13, 2017, law enforcement executed a search warrant at his residence and recovered narcotics, United States currency, and multiple loaded firearms. Michael Palermo, a convicted felon, is prohibited from possessing a firearm.
Michael Palermo’s brother, Anthony Palermo, 27, pled guilty to tampering with documents or proceedings. Prior to law enforcement’s execution of the search warrant at Michael Palermo’s residence, video surveillance captured Anthony Palermo attempting to destroy evidence by flushing narcotics down the toilet. Anthony Palermo faces a maximum statutory sentence of twenty years in prison.
The defendants are scheduled to be sentenced before U.S. District Court Judge Ursula Ungaro on October 13, 2017.
Mr. Greenberg commends the investigative efforts of ATF and MDPD in relation to this matter. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance. This case is being prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office.
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.
Two Assistant U.S. Attorneys Receive RecognitionRead the Press Release
Oklahoma City, Oklahoma – Assistant U.S. Attorneys David P. Petermann and Matt Dillon have been recognized as Region 1 Prosecutors of the Year by the Association of Oklahoma Narcotic Enforcers, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
The Association, also known as A-ONE, has facilitated the exchange of information among Oklahoma narcotics investigators since 1989. Through regional meetings and training sessions, it keeps members informed of current investigative techniques, patterns of drug abuse, changes in the law, and other topics.
Assistant U.S. Attorneys Petermann and Dillon received their awards at the Association’s Annual Training Conference on August 3, 2017. This recognition is the result of the successful prosecution of a large drug-distribution and money-laundering organization. The Drug Enforcement Administration, the Criminal Investigation Division of the Internal Revenue Service, the Oklahoma County District Attorney’s Office, and the Oklahoma City Police Department participated in the investigation, which involved more than a dozen wiretaps.
Mr. Petermann has prosecuted drug and violent crimes in the Oklahoma City U.S. Attorney’s Office since 2007. He also serves as the office’s Senior Litigation Counsel. Before 2007, he was an Assistant U.S. Attorney in the District of Arizona. Mr. Dillon joined the U.S. Attorney’s Office in 2014, after serving as a Team Leader in the Oklahoma County District Attorney’s Office. He is also the office’s liaison to the Joint Terrorism Task Force for the Western District of Oklahoma.
Track and Field Athlete Sentenced to 75 Months for Stolen Identity Tax Refund FraudRead the Press Release
TALLAHASSEE, FLORIDA – Teona N. Rodgers, 28, of Tampa, was sentenced today, after being convicted after a jury trial on May 3 of theft of government funds, possession of 15 or more unauthorized access devices, use of unauthorized access devices, aggravated identity theft, and false claims. Rodgers was sentenced to 75 months in prison and ordered to pay $151,577 in restitution. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
While on a track and field scholarship at Florida State University, Rodgers participated in a scheme to file fraudulent income tax returns during the 2011 and 2012 tax years by using other people’s personal information. The scheme was discovered in November 2013, when two notebooks and 12 debit cards in other people’s names were discovered in the Tallahassee apartment Rodgers had recently vacated.
The notebooks contained handwritten names, dates of birth, Social Security numbers, tax refund amounts, account numbers, and other personal data of more than 150 individuals. The notebooks also included notations such as “rejected” and “filed,” and detailed instructions on how to file a return reporting $47,196 of interest income. This amount was used on multiple tax returns in this scheme (including Rodgers’s own 2011 and 2012 returns). Investigators determined that the returns had been filed from IP addresses linked to Rodgers and that the false returns had funded the debit cards. Rodgers used these debit cards to make purchases. In total, the information contained in the notebooks was used to file 64 fraudulent tax returns, seeking $465,948 in refunds.
This case resulted from an investigation by the Emerald Coast Financial Crimes Task Force, comprised of the Internal Revenue Service-Criminal Investigation and the Leon County Sheriff’s Office, as well as the United States Secret Service and the Tallahassee Police Department. Assistant United States Attorney Gary Milligan prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Tennessee Man Sentenced for Unauthorized Access of Former Employer's NetworksRead the Press Release
An Arlington, Tennessee man was sentenced today to 18 months in prison and two years of supervised release for intentionally accessing a competing engineering firm’s computer network without authorization in order to obtain proprietary information. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Lawrence J. Laurenzi of the Western District of Tennessee made the announcement.
Jason Needham, 45, co-owner of HNA Engineering, was sentenced before U.S. District Judge John T. Fowlkes Jr. of the Western District of Tennessee for intentionally accessing without authorization the computer networks of his former employer, Allen & Hoshall. In addition to his prison term, Needham was ordered to pay $172,393.71 in restitution to Allen & Hoshall.
“The Criminal Division is committed to ensuring that American businesses are protected from unauthorized access to their systems and information, and our ability to execute this mission is dependent on building a trusting relationship with private industry,” said Acting Assistant Attorney General Blanco. “Allen & Hoshall’s robust cooperation and partnership with our prosecutors and agents in this case resulted in a successful outcome and ensured that Mr. Needham was held accountable for his criminal activity.”
“This case shows that law enforcement officials throughout the Western District of Tennessee will work together to ensure that individuals participating in any criminal act will be brought to justice,” said Acting U.S. Attorney Laurenzi. “It is imperative that our business and corporate community remain protected from cybercrimes and other illegal security threats. The corporate community is a vital part of growth and development for any city. The professionals in the U.S. Attorney’s Office, Western District of Tennessee, will continue our mission to ensure the safety and security of our businesses and corporations in our district. Security crimes will not be tolerated in this district. We will come after you.”
A spokesperson for Allen & Hoshall stated, “We believe that computer crimes are serious and that pursuing and prosecuting violators in an ethical and responsible manner are important aspects of maintaining the safety and security of private, confidential information for everyone. We are grateful that the government conducted such a prosecution in this case. We believe the Court’s sentence will send a clear message to Mr. Needham and the greater business community that cybercrimes, electronic snooping and otherwise accessing electronic information without authorization are real crimes that are unacceptable under the law and are subject to severe penalties.”
According to admissions made in connection with his guilty plea, Needham admitted to repeatedly accessing, over a nearly two-year period, Allen & Hoshall’s servers to download digitally rendered engineering schematics and more than 100 PDF documents containing project proposals and budgetary documents. Needham also admitted to accessing, on hundreds of occasions, the email account of a former colleague at Allen & Hoshall, which provided Needham access to the firm’s marketing plans, project proposals, company fee structures and the rotating account credentials for the company’s internal document-sharing system. According to the plea, Needham used his unauthorized access to view, download and copy proprietary business information worth over $500,000.
The FBI investigated the case. Assistant U.S. Attorney Debra L. Ireland of the Western District of Tennessee and Senior Counsel Timothy C. Flowers of the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division prosecuted the case.
Statement on the Review of the Investigations of the Jocques Clemmons MatterRead the Press Release
“The United States Attorney’s Office, in conjunction with the FBI and the Civil Rights Division of the Department of Justice, has concluded the review of the investigations by the Metropolitan Nashville Police Department and the Tennessee Bureau of Investigation into the Jocques Clemmons deadly force incident. We conclude that no further investigation or action is warranted.”
St. Augustine Man Pleads Guilty to Accepting Illegal Kickbacks in Exchange for Nearly $180,000Read the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that Vernon Stroman (40, St. Augustine) has pleaded guilty to violating the anti-kickback statute. He faces a maximum penalty of five years in federal prison.
According to the plea agreement, Stroman was a marketer and consultant for Wellness Pharmacy in St. Augustine. In this role, he was responsible for finding patients that had TRICARE insurance and could be referred to the pharmacy. Beginning on January 27, 2015, Stroman referred his parents to the pharmacy and provided them with prescriptions for several creams – including a “scar/post-op” cream and a “general pain/inflammation” cream. Neither of his parents had received a physician order attesting to the medical necessity of the cream. By submitting the prescriptions to Wellness Pharmacy, Stroman knew that the pharmacy intended to fill the prescriptions and submit claims for reimbursement.
Approximately one week after Stroman submitted the prescriptions to the pharmacy, he picked up the creams and purportedly paid the $102.00 in copayments. Stroman later admitted that he never paid these copayments; instead, he received $3,000.00 for “consulting services.” In total, from February to May 2015, Stroman received $50,461.75.
As a result of Stroman’s actions, Wellness Pharmacy submitted 18 claims for reimbursement for his parents. TRICARE paid Wellness Pharmacy a total of $178,193.40 for these prescriptions.
This case was investigated by the Federal Bureau of Investigation and the Defense Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Jason Mehta.
Shrewsbury Woman Pleads Guilty to Role in Counterfeit Steroid ConspiracyRead the Press Release
BOSTON – A Shrewsbury woman pleaded guilty yesterday in federal court in Boston to trafficking steroids to bodybuilders.
Kathryn Green, 29, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. District Court Judge Nathaniel M. Gorton, who scheduled sentencing for Nov. 9, 2017. In April 2017, Green and five others were charged for their roles in the conspiracy.
According to court documents, from approximately May 2015 until April 12, 2017, the conspirators manufactured steroid products made from raw materials that they purchased overseas and marketed as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., is a legitimate pharmaceutical company that does not manufacture steroids.
The defendants allegedly sold the steroids to customers across the United States using email and social media platforms, collected payment through money remitters, such as Western Union and MoneyGram, and used false identifications and multiple remitter locations to pick up the proceeds. Some of the defendants laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning business in Beverly, which they owned and operated specifically to launder the proceeds of the steroid operation.
Green’s principal roles in the conspiracy were to pay another member of the conspiracy to ship steroids and to collect payments from customers.
The charge of conspiracy to distribute controlled substances provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Weinreb’s Cybercrime Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Several Face Federal Charges for Katy Armed Bank RobberyRead the Press Release
HOUSTON – A total of six out of eight Houston residents arrested for their alleged involvement in the July 25 armed robbery of First Community Credit Union in Katy are set to appear today in federal court, announced Acting U.S. Attorney Abe Martinez.
Walter Freeman Jordan aka “Wacko,” 30, Jaylen Christine Loring, 21, Daryl Carlton Anderson, 31, Deandre Bendard Santee, 26, Johnathon Nico Wise, 26, Raymond Demond Pace, 19, Zelmer Samuel Bonner, 26, and Derrick Eugene Delane, 25, are charged with aiding and abetting aggravated bank robbery and aiding and abetting the unlawful use of a firearm in the commission of a crime of violence. All but Loring and Pace are set to appear today at 10:00 a.m. before U.S. Magistrate Judge Dena Hanovice Palermo. Loring made her initial appearance yesterday, while Pace is expected to make his first appearance in the near future.
According to the criminal complaint, at approximately 12:52pm on July 25, 2017, a black Toyota Tundra drove to the front of the First Community Credit Union located at 23120 Cinco Ranch Boulevard in Katy. Once there, three individuals entered the bank and allegedly commanded everyone to get on the ground. While inside, two of the robbers jumped the teller counter and demanded credit union employees to open the teller drawers, according to the charges. When one of those employees did not comply quickly enough, one of the robbers allegedly lifted his shirt, brandishing what was described as a black semi-automatic pistol, and punched the employee in the head while yelling “hurry up!” The third robber was also armed with a handgun and was attempting to keep customers and employees compliant. The criminal complaint further alleges that soon thereafter, a fourth robber entered the credit union and screamed “the cops are down the street, let’s go!”
According to the charges, the robbers appeared to be communicating with people outside the credit union via cell phone during the crime.
As they fled the bank with the money, one of the robbers also allegedly accosted and pointed a black semi-automatic pistol at another customer.
According to the criminal complaint, the four robbers returned to the Toyota Tundra and fled the scene along with three other vehicles – a silver Chevrolet Malibu, silver Nissan Rogue and a maroon Volkswagen Jetta. Loring was apprehended a short time later in the Malibu as was Anderson who was driving the Jetta. Shortly thereafter, officers also stopped the Rogue and arrested Santee and Wise.
Authorities pursued the Tundra, which was travelling at speeds up to 120 mph. At one point, the vehicle even drove eastbound in the westbound feeder road lanes of I-10. The 19-mile chase ended at the North Post Oaks Lofts apartment complex on the 1200 block of N. Post Oak Road in Houston, according to the charges. At this location, Jordan, Pace, Bonner and Delane allegedly abandoned the Tundra and attempted to evade police.
Pace was injured when he attempted to run in front of the Tundra. The vehicle was still rolling, and he was pinned between the vehicle and a wall. He was taken into custody and found in possession of a Springfield semi-automatic, model# XD45ACP, according to the complaint. With the help of a K9 unit, officers were also able to arrest Bonner a short distance from the abandoned Tundra.
Jordan and Delane were found hiding in an apartment in the same building where Bonner was arrested. After several hours of negotiation, they exited and were also taken into custody. At that time, law enforcement recovered a Stoeger Cougar .40 Caliber semi-automatic pistol inside the apartment.
If convicted, they face up to 25 years in prison for the bank robbery as well as a consecutive and mandatory seven years for the firearms offense.
The charges are the result of the Houston Law Enforcement Violent Crime Initiative created to proactively fight violent crime across the Greater Houston area. The FBI and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
San Antonio Man Involved in Methamphetamine Conspiracy Sentenced to 214 Months in Federal PrisonRead the Press Release
DALLAS — A San Antonio, Texas, man, Zachary Whiteside, aka “Sharkey,” Shark” and “Zach,” 37, was sentenced this week by Chief U.S. District Judge Barbara M.G. Lynn to 214 months in federal prison, following his guilty plea in November 2016 to one count of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
Whiteside has been in custody since his arrest in May 2015.
According to documents filed in the case, Whiteside travelled to Dallas, Texas on several occasions beginning in January 2014 to purchase various quantities of methamphetamine from a Dallas-based methamphetamine distributor. Whiteside then distributed the drugs to customers in exchange for payment. On one occasion Whiteside exchanged a 2013 Ford Mustang, a 2002 Audi, U.S. currency and guns as payment for methamphetamine.
The case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Phelesa Guy was in charge of the prosecution.
# # #
Salinas Residents Charged in Tax Fraud SchemeRead the Press Release
SAN JOSE – A federal grand jury in San Jose indicted five Salinas residents, charging them with conspiracy to submit fraudulent tax returns to the IRS, announced United States Attorney Brian J. Stretch, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
According to the indictment, issued on July 13, 2017, and unsealed yesterday, Jorge Vissani, Jacqueline Ramos, Ana Bajo, Norma Morfin, and Antonio Ahumada stole money from the United States by filing false tax returns which claimed fraudulent income tax refunds. The indictment alleges that the defendants directed the IRS to send the fraudulent tax refunds to addresses or bank accounts the defendants controlled. Once the defendants received fraudulent tax refund checks, they cashed or deposited the checks at financial institution and businesses in Northern California. The scheme resulted in the issuance of fraudulent tax refunds worth approximately $9,000,000 during 2011 and 2012. Each defendant is charged with conspiracy to submit false claims, in violation of 18 U.S.C. § 286. Ramos and Ahumada were also charged with bank fraud, in violation of 18 U.S.C. § 1344.
Ramos, Bajo, Morfin, and Ahumada were arrested yesterday in Salinas. They made their initial appearance in federal court in San Jose before the Honorable Nathanael M. Cousins, U.S. Magistrate Judge. The next hearing in the case is scheduled for August 4, 2017 at 1:30 PM before Judge Cousins.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum penalty for conspiracy to file false claims, in violation of 18 U.S.C. § 286, is five years in prison and a $250,000 fine. The maximum penalty for bank fraud, in violation of 18 U.S.C. § 1344, is 30 years in prison and a $250,000 fine. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Michael G. Pitman and Department of Justice Trial Attorney Gregory Bernstein are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Rwandan Man Charged with Immigration Fraud and PerjuryRead the Press Release
BOSTON – A Rwandan man who fled Rwanda near the end of the 1994 genocide was arrested today and charged in federal court in Boston with immigration fraud and perjury in connection with his application for asylum.
Jean Leonard Teganya, 46, was charged with one count of immigration fraud and one count of perjury. Teganya will appear in federal court in Boston this afternoon.
As alleged in court documents, approximately 800,000 people were murdered during the Rwandan genocide in 1994. Prior to and during the Rwandan genocide, Teganya was a medical student and medical trainee at the Butare hospital in Butare, Rwanda. Several witnesses present in Butare during the genocide described Teganya as active in the political party of the genocidal regime, the MRND, and its militia, and stated that he actively participated in the persecution of Tutsis, the group that was largely targeted during the genocide.
According to court documents, Teganya left Rwanda in mid-July 1994 and traveled to Congo, India, and then Canada. In 1999, Teganya applied for refugee status and later asylum in Canada. Canadian authorities twice determined that Teganya was not entitled to asylum because he had been complicit in atrocities committed at the Butare hospital during the genocide. After 15 years of litigation, Teganya evaded the order of deportation and fled across the border into the United States. On Aug. 3, 2014, Teganya was encountered walking on foot after he had crossed from Canada into Houlton, Maine. Teganya was taken into custody and formally applied for asylum. On the application for Asylum and Withholding of Removal, Teganya made false statements by failing to disclose the extent of his affiliations and activities with the MRND and Hutu extremists.
The charge of immigration fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of perjury provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. U.S. Customs and Border Protection, the U.S. State Department and the Revere Police Department provided valuable assistance. The case is being prosecuted by Assistant U.S. Attorneys Aloke Chakravarty and John Capin of Weinreb’s National Security Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Richmond Business Owner Sentenced to Five and A Half Years in Prison for Fraud in Credit Repair SchemeRead the Press Release
August 4, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Senior U.S. District Judge J. Frederick Motz sentenced Benjamin Bland, age 41, of Richmond, Virginia, to five and a half years in prison, followed by three years of supervised release for conspiracy to commit wire fraud, wire fraud, and social security fraud.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to evidence presented at his five day trial, Bland was the owner and registered agent of a company headquartered in Richmond, Virginia that hosted a website which purported to provide individuals with a legal means to start a new credit file through the issuance of a “secondary credit number.” Bland falsely told his customers that these “secondary credit numbers” were “100% legal” and issued “by lawyers.” However, Bland had invented the term “secondary credit number,” there were no lawyers involved with his business, and the “secondary credit numbers” were actually social security numbers that had been previously issued to other individuals, predominantly children.
According to the trial evidence, one of the primary purposes of the fraud scheme was to obtain bank loans, private loans, auto loans, and lines of credit using the stolen social security numbers, counterfeit social security cards, and personal identity information (“PII”) of actual persons to create a false (improved) credit score.
The trial evidence also established that Bland obtained and sold the misappropriated social security numbers to Michael Westbrook and at least 20 others located throughout the country, whom Bland called his “affiliates.” These “affiliates” in turn sold those numbers to buyers. For an additional fee, Bland would provide fraudulent social security cards bearing the stolen number and the name of the “buyer.” Bland also provided fraudulent driver’s licenses to the “customers.” These items were provided so that “customers” could defraud banks and other lenders by drawing upon lines of credit using the stolen social security numbers.
According to the trial evidence, Bland compromised the social security numbers of at least 1,500 people during the conspiracy. The majority of the stolen social security numbers belonged to children all over the United States.
A co-conspirator, Michael Westbrook, also pled guilty to conspiracy to commit wire fraud and aggravated identity theft and was sentenced to 24 months in prison.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Lauren Perry and Aaron Zelinsky, who prosecuted the case.
Pitt County Behavioral Health President Pleads Guilty to Medicaid Fraud Conspiracy and Perjury ChargesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina John Stuart Bruce Office announced that yesterday in federal court, SHEPHARD LEE SPRUILL, II, 46, of Winterville, North Carolina, pleaded guilty to Conspiracy to Commit Health Care Fraud, and Perjury. Under the terms of a plea agreement, SPRUILL faces up to 15 years in prison, $500,000 in fines, and 3 years of supervised release. Under additional terms discussed in court, SPRUILL also agreed to make restitution in the amount of $1,846,377 to the North Carolina Medicaid program, as well as additional restitution for any other fraud committed by or through Medicaid providers Pride in North Carolina, Carolina Support Services, Elite Care, Southern Support Services, One to One Youth, Vision of New Hope, Bridge Builders Youth Services, and Jameson Consultants.
According to the Criminal Information and evidence discussed in open court, SPRUILL entered into conspiracy with Terry Lamont Speller and Donnie Lee Phillips, II (both of whom are already imprisoned) to defraud Medicaid in connection with a clinic in Pitt County, known as “The Medical Office.” SPRUILL, who at that time was the president of a behavioral health practice named Carolina Support Services, had access to lists of patient names and Medicaid Identification Numbers. SPRUILL provided these to Speller and Phillips, who used them to fraudulently bill Medicaid for more than $2 Million in fictitious services. After Medicaid sent payment for the fake services to Speller, SPRUILL received his cut of the proceeds under the guise of loan repayments.
With respect to the charge of Perjury, the evidence showed that SPRUILL testified before a federal grand jury that he had no business relationship with Speller, and that he had no knowledge of why Medicaid payments were being split between Speller and SPRUILL. Under the plea agreement, SPRUILL admitted that he lied about these facts to the grand jury.
The investigation of this case was conducted by agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office; The Internal Revenue Service - Criminal Investigation; and the United States Department of Health and Human Services Office of the Inspector General. The investigation and prosecution of this matter is being handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division and Special Assistant United States Attorney Daniel Spillman of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, represented the United States.
If you suspect Medicaid or Medicare fraud please visit the HHS OIG website at https://oig.hhs.gov/ and click on the Report Fraud button. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Owner of Real Estate Escrow Company Indicted for Bank, Wire and Mail FraudRead the Press Release
The owner of a now defunct real estate escrow firm was indicted last month by a federal grand jury on ten counts of bank fraud, and one count each of mail and wire fraud, announced U.S. Attorney Annette L. Hayes. LORI LYNN ANDREW, 48, of Cashmere, Washington, the owner of Hartman Escrow, Inc., was arrested and arraigned on the indictment August 3, 2017. The Washington State Department of Financial Institutions arranged for a receiver to take over the Tukwila, Washington escrow company in 2012 after finding evidence of fraud. ANDREW had her license to act as an escrow agent suspended in 2013 and her license has since been revoked.
According to the indictment, beginning in about January 2011, and continuing until July 2012, ANDREW used a variety of means to defraud financial institutions and individual home buyers and sellers who were involved in various real estate transactions. ANDREW made, or had others make, false settlement statements on the transactions listing false or inflated fees and charges to hide the fact that she was embezzling money. ANDREW forged signatures on various statements and created false invoices, statements and bills; she altered and deposited checks to her company account that should have gone to others; she took funds from her trust account and transferred them to her personal account for her own use. ANDREW used the money for casino payments, credit card bills and other personal expenses. ANDREW defrauded individual customers as well as Bank of America, Wells Fargo, Citi Bank, Chase and GMAC.
In all the indictment alleges ANDREW defrauded the financial institutions and other customers of approximately $2 million.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Each count of bank, mail or wire fraud is punishable by up to 30 years in prison and a fine of up to $1 million.
The case was investigated by the Washington State Department of Financial Institutions, the FBI, the Postal Inspection Service (USPIS) and the Housing and Urban Development Office of Inspector General (HUD-OIG).
The case is being prosecuted by Special Assistant United States Attorney Hugo Torres and Assistant United States Attorney Norman Barbosa. Mr. Torres is a Senior King County Deputy Prosecutor specially designated to prosecute financial fraud cases in federal court.
Oregon resident sentenced to 25 years in prison for sexually assaulting, torturing womanRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man living in Oregon was sentenced Thursday to 300 months in prison for sexually assaulting and torturing a woman who he had a child with and who engaged in prostitution.
Gammion McCloud, 37, originally from Washington, D.C., but who was living in Oregon at the time of his arrest, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of travel to engage in criminal sexual activity and one count of interstate domestic violence. He was also sentenced to five years of supervised release and ordered to pay $73,550 restitution. While on supervised release, he must obtain sex offender specific treatment. According to the March 2, 2017 guilty plea, McCloud acted as the “pimp” for the victim who he convinced to engage in prostitution. They were together from 2008 until 2014. He had a child with the victim and thereafter became progressively more abusive to her. He raped and tortured her repeatedly in the presence of her young child. He locked her in a small cage, forcing her to engage in acts of prostitution. She and her child were able to escape while in Louisiana after McCloud doused her in gasoline and set her on fire. During all of these acts, the defendant was in possession of a firearm.
The U.S. Department of Homeland Security-Homeland Security Investigations investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
Nigerian National Charged in Phishing Scheme that Victimized Glastonbury School EmployeesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that DANIEL ADEKUNLE OJO, 33, a citizen of Nigeria residing in Durham, N.C., was arrested yesterday on a federal criminal complaint charging him with fraud and identity theft offenses stemming from a scheme to obtain the personal identifying information of school employees in Connecticut and elsewhere.
Following his arrest at his Durham residence, OJO appeared before a U.S. magistrate judge in Greensboro, N.C., and was ordered detained pending his transfer to the District of Connecticut.
As alleged in the criminal complaint, special agents from the FBI’s cybercrime squad in New Haven and the IRS have been investigating “phishing” emails that were sent to various school districts in Connecticut earlier this year.
In February 2017, an employee of the Glastonbury Public Schools received an email that appeared to be sent by another Glastonbury school system employee. The email contained a request to send W-2 tax information for all employees of the school system. The recipient of the email responded by sending copies of the W-2 information for approximately 1,600 Glastonbury Public Schools employees. After the W-2 information was emailed, approximately 122 suspicious Forms 1040 were filed electronically with the IRS in the names of victims of the Glastonbury phishing scheme. The 122 tax returns claimed tax refunds totaling $596,897. Approximately six of the returns were processed, and $36,926 in fraudulently-obtained funds were electronically deposited into various bank accounts.
The complaint alleges that OJO controlled or used an aol.com email account and a gmail.com email account involved in this phishing scheme, and that he participated in the scheme to obtain the Glastonbury school system employees’ personal identifying information and use it for personal gain.
This ongoing investigation also includes phishing incidents that victimized the Groton Public Schools, and the Bloomington Independent School District in Bloomington, Minnesota.
As to the Groton Public Schools, in March 2017, a school system employee emailed copies of the W-2 information for approximately 1,300 employees. After the W-2 information was sent, approximately 66 suspicious Forms 1040 were filed electronically with the IRS in the names of victims of the Groton phishing scheme. The tax returns claimed tax refunds totaling $364,188. The fraudulent tax returns were not processed by the IRS because they were flagged as being part of an identity theft scheme, and no money was released in connection with the returns.
The complaint alleges that OJO entered the U.S. on a visitor’s visa in May 23, 2016, and failed to depart on his scheduled departure date of June 8, 2016.
“Cybercriminals are becoming increasingly cunning in exploiting technology to steal identifying information from unwitting victims,” said U.S. Attorney Deirdre Daly. “Fortunately, our cyber investigators are skilled at cracking these crimes and catching these fraudsters. To help avoid becoming a victim, always remember when you click on a link or send an email, check – and then double check – that the link you’re being asked to open, or the email address you are responding to, is authentic. A single mistake can lead to a lot of misery. I commend the FBI cybercrime squad and IRS for quickly bringing this individual to justice. This investigation is ongoing.”
“The individuals that conduct these phishing schemes have one goal: To steal personal information for financial gain,” said FBI Special Agent in Charge Ferrick. “This case is particularly disturbing due to the methods used and the targeted victims. Cybercrimes are on the rise so we need corporations and the general public to be cognizant of their day to day computer use and vulnerabilities. We will continue to utilize our best resources and top law enforcement personal to bring cybercriminals to justice.”
“Investigating identity theft and refund fraud is a top priority for IRS Criminal Investigation,” said Special Agent in Charge Garland. “Stealing identities and filing false tax returns is a serious crime that harms innocent taxpayers. This arrest, in cooperation with the FBI and U.S. Attorney’s Office, should serve as a strong warning to those who are considering similar conduct. Law enforcement will aggressively pursue cyber-criminals who undermine the integrity of the U.S. tax system.”
The complaint charges OJO with conspiracy to commit wire fraud, an offense that carries a maximum term of imprisonment of 20 years, and aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of at least two years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Durham (N.C.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala, with the assistance of the U.S. Attorney’s Office for the Middle District of North Carolina.
Mission Man and Parmelee Woman Sentenced for Consipiracy to Manufacture and Distribute MarihuanaRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota man convicted of Conspiracy to Manufacture a Controlled Substance and Conspiracy to Distribute a Controlled Substance, and a Parmelee, South Dakota woman convicted of Conspiracy to Distribute a Controlled Substance, were sentenced on July 31, 2017, by U.S. District Judge Roberto A. Lange.
Meddore Maurice Douville, age 46, was sentenced to 30 months in custody and 3 years of supervised release on each count, to run concurrently, a fine of $1,000, forfeiture of $2,281.91 in United States currency, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $200.
Teeana Shannon Two Eagle, age 25, was sentenced to 9 months in custody, 2 years of supervised release, a fine of $500, forfeiture of $2,281.91 in United States currency, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.Douville and Two Eagle were indicted by a federal grand jury on December 20, 2016. They both pled guilty on May 3, 2017.
Douville admitted to knowingly and intentionally conspiring with others to manufacture and distribute marihuana, a Schedule I Controlled Substance, within the District of South Dakota between September 1, 2015, and December 20, 2016. Two Eagle admitted to knowingly and intentionally conspiring with others to distribute marihuana within the District of South Dakota between January 1, 2016, and December 20, 2016.
During the course of the conspiracy, Douville received distributable quantities of marihuana from others and manufactured and distributed some of that marihuana in South Dakota. The individuals who provided Douville with the marihuana knew that he intended to engage in further manufacturing and distribution of it. Two Eagle participated in Douville’s manufacturing and distribution operation.
On December 6, 2016, Rosebud Sioux Tribe Law Enforcement Services Officers executed a search warrant on Douville’s residence in Mission, South Dakota. Present in the residence at the time of the search warrant were Douville, Two Eagle, two of their young children, and one of Douville’s adult sons. Two Eagle was pregnant at the time with twins.During the execution of the search warrant, law enforcement seized numerous items from Douville’s home, garage and storage shed, including over 46 total pounds of marihuana and marihuana cigarettes, in bulk and already packaged for sale, $2,281.91 in United States currency which was proceeds from the sale of marihuana, and equipment to grow, cultivate, process, and distribute marihuana like drying racks, planting pots, burlap sacks, sodium lights, industrial fans, plant food, grinders, cases of rolling papers and small plastic baggies.
Douville was employed at the St. Francis Indian School in St. Francis, South Dakota, from 2001 to 2008, and from 2011 until August of 2015. For part of that time, Douville was a special education teacher at the school.
Although Douville admitted he was unemployed after August of 2015, from December of 2015 until late November of 2016, Douville and Two Eagle traveled at least monthly, and often twice a month, to Colorado to buy marihuana to manufacture and distribute in South Dakota, staying in lavish hotels such as the Ritz Carlton or Sheraton in Denver, and spending money on marihuana paraphernalia, concerts, Colorado Rockies baseball games, or other supplies and entertainment. For example, on November 27, 2016, Douville bought $900 worth of marihuana rolling papers from a paraphernalia shop in Denver. During that same time, Douville reloaded over $30,000.00 on his Walmart debit card, reloading $5,000.00 in just five transactions during a ten-day window in November of 2016.
Both Douville and Two Eagle admitted that Douville was in charge of the manufacturing and distribution operation conducted in and out of his residence in Mission, South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Douville and Two Eagle were immediately turned over to the custody of the U.S. Marshals Service.Miami-Dade Resident Convicted of Being a Felon in Possession of a FirearmRead the Press Release
The defendant discarded the firearm on school grounds
A Miami resident pled guilty in federal court on July 28, 2017, for being a felon in possession of a firearm.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; Katherine Fernandez Rundle, State Attorney, Miami-Dade State Attorney’s Office; Rodolfo Llanes, Chief, City of Miami Police Department (MPD); and Ian A. Moffett, Chief, Miami-Dade Schools Police Department, made the announcement.
Frederick Frazier, 22, pled guilty to being in possession of a firearm while a convicted felon. Frazier faces a maximum statutory sentence of ten years in prison. He is scheduled to be sentenced before U.S. District Court Judge Ursula Ungaro on October 13, 2017.
According to the court record, including the agreed upon factual proffer, on April 20, 2017, Frazier fled from law enforcement officers and discarded a loaded firearm on the property of Holmes Elementary School. The firearm was recovered by law enforcement. The defendant was a convicted felon and as such was legally prohibited from being in possession of the firearm.
Mr. Greenberg commends the investigative efforts of the MPD and Miami-Dade Schools Police Department. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance. This case is being prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office.
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.
Miami Man Sentenced for Participation in Statewide Identity Theft RingRead the Press Release
Orlando, Florida – U.S. District Judge Carlos Mendoza has sentenced Angel N. Rodriguez (39, Miami) to four years in federal prison for aggravated identity theft and conspiracy to commit access device (credit card) fraud. He pleaded guilty on May 18, 2017.
According to court documents, Rodriguez and his co-conspirators used stolen identification information to obtain credit at retail stores throughout central Florida. When Rodriguez and others were arrested in late 2014, they were found in possession of 6 fake Florida driver licenses, 8 credit cards obtained using the fake licenses, folders with the personal information of identity theft victims, and 21 large items purchased through fraud - including washers, dryers, and refrigerators. In total, the group purchased more than $80,000 in merchandise using stolen identities in 2014 and early 2015.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Nathan W. Hill.
Miami Man Charged with Bank FraudRead 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 Ernesto Alvarez Santos, 20, of Miami, Florida, pleaded guilty to conspiracy to commit bank fraud before Chief U.S. District Judge Frank P. Geraci, Jr. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that in January 2017, the defendant, along with two co-conspirators traveled from Miami, Florida to Hamburg, New York. In Hamburg, Santos and another co-conspirator were provided with numerous counterfeit access devices, which consisted of gift cards re-encoded with account numbers for actual credit card or debit card accounts.
Between January 23, and January 24, 2017, Santos and the others used 129 different counterfeit access devices to purchase gift cards at various Walmart stores in Erie, Niagara, and Orleans Counties. Upon purchasing the legitimate Walmart gift cards, the defendants transmitted the legitimate gift card numbers by cellular telephone to another co-conspirator. In addition, Santos and the co-conspirators possessed an additional 102 different counterfeit access devices, which consisted of gift cards re-encoded with account numbers for actual credit card or debit card accounts at various financial institutions. The account holders of these credit card or debit card accounts did not authorize use of their credit card or debit card account information. The total estimated loss amount is $120,689.02.
The plea is the result of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Sentencing is scheduled for November 2, 2017 before Judge Geraci.