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2 August 2017
New York Man Pleads Guilty to Multi-State Biodiesel Fraud SchemeRead the Press Release
Andre Bernard, of Mount Kisco, New York, pleaded guilty today for his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida.
According to his plea, Bernard conspired with Thomas Davanzo, of Estero, Florida, Robert Fedyna, of Naples, Florida, and Scott Johnson of Pasco, Washington in a scheme to defraud biodiesel credit (known as “RIN” credits) buyers and U.S. taxpayers. The conspiracy involved having Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia, generate fraudulent RINs and tax credits multiple times on the same material.
Bernard and his co-conspirators operated several shell companies that claimed to purchase and sell the renewable fuel. The co-conspirators also cycled the funds through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.
From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency Criminal Investigation Division, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Sara C. Sweeney of the Middle District of Florida and Trial Attorney Adam Cullman of the Environment and Natural Resources Division of the Department of Justice.
New York Man Pleads Guilty to Multi-State Biodiesel Fraud SchemeRead the Press Release
Orlando, FL – Andre Bernard, of Mount Kisco, New York, pleaded guilty today for his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney W. Stephen Muldrow.
According to his plea, Bernard conspired with Thomas Davanzo, of Estero, Florida, Robert Fedyna, of Naples, Florida, and Scott Johnson of Pasco, Washington in a scheme to defraud biodiesel credit (known as “RIN” credits) buyers and U.S. taxpayers. The conspiracy involved having Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia, generate fraudulent RINs and tax credits multiple times on the same material.
Bernard and his co-conspirators operated several shell companies that claimed to purchase and sell the renewable fuel. The co-conspirators also cycled the funds through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.
From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency Criminal Investigation Division, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Sara C. Sweeney of the Middle District of Florida and Trial Attorney Adam Cullman of the Environment and Natural Resources Division of the Department of Justice.
New York City Health and Hospitals Employee Charged with Possessing Child PornographyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Mark G. Peters, the Commissioner of the New York City Department of Investigation, announced the arrest of DANIEL SHERLOCK stemming from his possession of child pornography. SHERLOCK was arrested today and will be presented today before United States Magistrate Judge Henry Pitman in Manhattan.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Daniel Sherlock, a city employee, had child pornography on his work computer, which he tried to conceal through a computer program designed to permanently delete files. Whatever efforts are made to avoid detection, we are committed to prosecuting child pornography offenses and protecting children from sexual exploitation.”
DOI Commissioner Mark G. Peters said: “This defendant allegedly used his access to NYC Health + Hospital computers to download child pornography, according to the criminal complaint. DOI’s comprehensive investigation recovered dozens of these disturbing images, and even before today’s arrest DOI quickly put protocols in place to prevent this defendant from accessing City hospital computers and properties. This charged crime is serious and the security of City facilities of paramount importance – there can be no tolerance for this type of grotesque behavior. We thank the United States Attorney’s Office for the Southern District of New York for their swift response and partnership on this investigation.”
According to the Complaint[1] unsealed today in federal court:
In June 2017, law enforcement agents searched SHERLOCK’s work computer and recovered 86 images of child pornography, many of which depicted prepubescent children engaged in sexual activity with adults. Law enforcement agents also discovered that a program named “CCleaner,” which is a privacy and cleaning tool for computers that removes files, cleans the computer registry, and cleans traces of online activities, had been installed on SHERLOCK’s computer. New York City Health and Hospitals’ records confirmed that SHERLOCK had been at work on the days the child pornography was created and “CCleaner” was installed.
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DANIEL SHERLOCK, 28, of East Meadow, New York, is charged with one count of possession of child pornography, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any individuals who believe they have information concerning DANIEL SHERLOCK that may be relevant to the investigation should contact the United States Attorney’s Office through its toll-free hotline at 212-637-0650.
Mr. Kim praised the Criminal Investigators of the U.S. Attorney’s Office, and the New York City Department of Investigation and its Office of the Inspector General for NYC Health + Hospitals for their outstanding investigative work.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Alexandra N. Rothman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Navajo Man Sentenced to Ten Years in Federal Prison for Conviction on Involuntary Manslaughter ChargesRead the Press Release
ALBUQUERQUE – Tracey Beaver, 38, an enrolled member of the Navajo Nation who resides in Pinehill, N.M., was sentenced yesterday in federal court in Santa Fe, N.M., to 60 months of imprisonment on each of two counts of involuntary manslaughter to run consecutively for a total of 120 months of imprisonment. Beaver will be on supervised release for three years after completing his prison sentence.
Beaver was arrested on Sept. 24, 2016, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Beaver killed two victims when he crashed his vehicle on Sept. 9, 2016, on the Ramah Navajo Indian Reservation in Cibola County, N.M. At the time of the crash, Beaver was driving under the influence of alcohol.
On Nov. 16, 2016, Beaver pled guilty to a felony information charging him with two counts of involuntary manslaughter. In entering the guilty plea, Beaver admitted killing the two victims by driving recklessly while under the influence of alcohol. Beaver acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
This case was investigated by the Gallup office of the FBI, the New Mexico State Police and the Ramah Navajo Police Department and was prosecuted by Assistant U.S. Attorney Nicholas Marshall.
Multi-Agency Investigation Dismantles Lea County-Based Drug Trafficking OrganizationRead the Press Release
ALBUQUERQUE – Seven residents of Lea County, N.M., including four Mexican nationals, and a resident of Yuma, Ariz., are facing federal narcotics trafficking and money laundering charges as the result of a multi-agency investigation led by the DEA into a significant drug trafficking organization based in Hobbs, N.M., that allegedly imported methamphetamine and cocaine into Lea County from Mexico through Arizona.
Acting U.S. Attorney James D. Tierney and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division announced the federal charges today following a law enforcement operation in Lea County that resulted in the arrest of seven of the eight defendants. Joining them in making the announcement were Special Agent in Charge Waldemar Rodriguez of HSI in El Paso, Commander Sean Roach of the Lea County Drug Task Force, Lea County Sheriff Byron Wester, and Hobbs Police Chief Chris McCall.
The charges in the 20-count indictment are the result of an investigation by the DEA, HSI and the Lea County Drug Task Force of HIDTA Region 6 into a Lea County-based drug trafficking organization allegedly led by Jose Raul Mendivil-Berrelleza, a Mexican national who resides in Hobbs. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
During the course of the investigation, law enforcement authorities seized 13 kilograms (28.6 pounds) of pure methamphetamine and 1.2 kilograms (2.6 pounds) of cocaine during a traffic stop in Lea County on Feb. 27, 2017. They also seized $14,000 in cash during a vehicle inspection at the U.S. Border Patrol checkpoint on Interstate 10 in Dona Ana County, N.M., on July 5, 2017. During today’s law enforcement operation, law enforcement authorities executed federal search warrants at three residences and two travel trailers in Hobbs and seized approximately .25 kilograms (.55 pounds) of cocaine, a handgun and approximately $5000.
In announcing the results of the investigation, Acting U.S. Attorney James D. Tierney said, “This investigation was a coordinated effort to crackdown on drug trafficking in southeastern New Mexico. It is part of our statewide fight against illegal drugs and the cycle of violence that goes hand in hand with drug trafficking. Those who choose to engage in drug trafficking should be on notice that federal, state and local law enforcement are committed to working together to put them out of business and into prison cells.”
“Law enforcement at the local, state and federal levels have joined together to dismantle a criminal organization allegedly responsible for spreading poison on the streets of Hobbs and the surrounding area,” said Special Agent in Charge Will R. Glaspy of the DEA El Paso Division. “Today’s enforcement operation is part of DEA’s ongoing commitment to attack the drug trafficking that endangers our communities as well as the related violence that goes with it.”
“Today’s arrests and search warrants solidifies HSI’s cooperation with DEA and the U.S. Attorney’s Office to work jointly with our local law enforcement partners to identify transnational organizations that continue to poison our local communities with illegal narcotics,” said Special Agent in Charge Waldemar Rodriguez of HSI El Paso. “Our fight to bring those who violate narcotics trafficking laws to justice will continue unapologetically.”
The 20-count indictment charges alleged ringleader Mendivil-Berrelleza and seven co-defendants with conspiracy, methamphetamine and cocaine trafficking, and money laundering offenses. Count 1 of the indictment charges all eight defendants with participating in a conspiracy to traffic methamphetamine and cocaine in Lea County and elsewhere between Nov. 2016 and July 2017. Count 2 charges Mendivil-Berrelleza and Roberto Rendon-Duran, 70, of Yuma, Ariz., with participating in an international money-laundering conspiracy. Counts 3 through 5 charge certain defendants with methamphetamine trafficking offenses and Count 6 charges certain defendants with a cocaine trafficking offense. Counts 7 through 20 charge certain defendants with using communications devices to facilitate their drug trafficking activity.
Another defendant, who was arrested on June 13, 2017, also has been federally charged as the result of the investigation. Felipe T. Castillo, of Eunice, N.M., is charged in a criminal complaint with being a felon in possession of a firearm. The charge allegedly arises out of an incident during which Castillo, a convicted felon, pointed a firearm at an officer who was conducting surveillance in connection with the investigation.
Mendivil-Berrelleza and the other six defendants who were arrested yesterday and today as the result of the investigation are scheduled to make their initial appearances in federal court in Roswell, N.M., at 10:30 a.m. on Aug. 3, 2017. One defendant, Miguel Luna-Arredondo, has yet to be arrested and is considered a fugitive.
“This investigation has been a team effort between all agencies involved and it culminated with a safe takedown. Anytime you can take a large amount of narcotics off the streets is a good day,” said Commander Sean Roach of the Lea County Drug Task Force. “I cannot say thank you enough to all of the agencies that participated throughout the investigation. This investigation and arrests will have a major impact on the stream of narcotics coming into the Lea County area as well as the surrounding areas.”
“This investigation is an example of cooperation between local and federal law enforcement to combat the distribution of illegal narcotics within our community,” said Sheriff Byron Wester of the Lea County Sheriff’s Office. “The Lea County Drug Task Force and the Drug Enforcement Administration jointly completed a successful investigation and operation today that attempts to rid our community of illegal narcotics. I thoroughly appreciate their efforts to make our community a safer place.”
Chief Chris McCall of the Hobbs Police Department said, “The Hobbs Police Department was extremely happy to partner with the other agencies involved in this investigation and we appreciate the partnerships. The results of this investigation will undoubtedly slow the flow of drugs into our community and have a positive impact on the safety of our citizens.”
This case was investigated by the DEA and HSI offices in Las Cruces and the Lea County Drug Task Force with assistance from the Lea County Sheriff’s Office and the Hobbs Police Department. In addition, the following law enforcement agencies participated in today’s law enforcement operation: Hobbs Police Department, Jal Police Department, Lovington Police Department, New Mexico State Police, Dona Ana County Sheriff’s Office, IRS Criminal Investigation, U.S. Marshals Service and the U.S. Border Patrol. Assistant U.S. Attorneys Terri J. Abernathy and Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Indictment in United States v. Jose Raul Mendivil-Berrelleza, et al., 17-CR-1913
Summary of the Charges
Count 1 of the Indictment charges the eight defendants with participating in a conspiracy to distribute methamphetamine and cocaine. The statutory penalty for a conviction on this count is imprisonment for not less than ten years nor more than life and a $10 million fine.
Count 2 charges two defendants with participating in an international money laundering conspiracy. The maximum statutory penalty for a conviction on this count is 20 years and a $500,000 fine.
Counts 3 and 4 charge certain defendants with possession with intent to distribute more than 50 grams of a mixture and substance containing methamphetamine. The maximum penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years and a $5 million fine.
Count 5 charges certain defendants with possession with intent to distribute more than 50 grams of methamphetamine. The statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life and a $10 million fine.
Count 6 charges certain defendants with possession with intent to distribute more than 500 grams of cocaine. The maximum penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years and a $5 million fine.
Counts 7 through 20 charge certain defendants with using communication facilities to facilitate drug trafficking crimes. The maximum statutory penalty for a conviction on each of these counts is imprisonment for four years and a $250,000 fine.
Charges against Defendants
Jose Raul Mendivil-Berrelleza, 33, a Mexican national residing in Hobbs, N.M., is charged in Counts 1, 2, 4-6, 8-14, 16, 18 and 19 of the indictment. Mendivil-Berrelleza was arrested this morning.
Daniel L. Perea, 37, of Hobbs, N.M., is charged in Counts 1, 4-8, 10, 11, 14, 15, 17 and 20 of the indictment. Perea was arrested this morning.
Jeremy W. Gough, 40, of Hobbs, N.M., is charged in Counts 1, 3, 15 and 20 of the indictment. Gough was arrested this morning.
Miguel Angel Luna-Arredondo, 24, a Mexican national, is charged in Counts 1 and 4-6 of the indictment. Luna-Arredondo has yet to be arrested and is considered a fugitive.
Carlos Espinoza-Perez, 27, a Mexican national residing in Hobbs, N.M., is charged in Counts 1, 9, 12, 13 and 19 of the indictment. Espinoza-Perez was arrested this morning.
David Torres-Arellanes, 28, a Mexican national residing in Hobbs, N.M., is charged in Counts 1 and 16-18 of the indictment. Torres-Arellanes was arrested this morning.
Roberto Rendon-Duran, 70, of Yuma, Ariz., is charged in Counts 1 and 2 of the indictment. Rendon-Duran was arrested this morning.
Reco Curry, 37, of Hobbs, N.M., is charged in Counts 1, 4 and 7 of the indictment. Curry was arrested last night.
Criminal Complaint in United States v. Felipe T. Castillo, 17-MJ-1492
Felipe T. Castillo, 38, of Eunice, N.M., is charged with being a felon in possession of a firearm and ammunition. The criminal complaint alleges that Castillo, who has two prior felony convictions, unlawfully possessed a firearm and ammunition on May 31, 2017, in Hobbs, N.M. According to the criminal complaint, on May 31, 2017, Castillo pointed a firearm at a law enforcement officer who was conducting surveillance in connection with this investigation. If convicted, Castillo faces a maximum statutory penalty of ten years of imprisonment and a $250,000 fine. Castillo was arrested on June 13, 2017, and remains in federal custody pending trial.
Charges in indictments and criminal complaints are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Mendivil Berrelleza et al IndictmentMississippi Tax Return Preparer Sentenced to Prison for Obstructing the IRS and Filing False ReturnsRead the Press Release
WASHINGTON – A Gulfport, Mississippi, tax return preparer was sentenced to 48 months in prison for obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
According to documents and information presented to the court, Doris Kelley, 65, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley earned hundreds of thousands of dollars from her scheme and caused a tax loss of more than $500,000.
In addition to the term of imprisonment imposed, U.S. District Court Judge Sul Ozerden ordered Kelley to serve one year of supervised release and to pay $519,635.72 in restitution, to include $357,534.49 to the IRS and $162,101.23 to the individual victims. Kelley pleaded guilty in April to impeding the internal revenue laws and aiding in the preparation of a false tax return.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Mississippi Tax Return Preparer Sentenced to Prison for Obstructing the IRS and Filing False ReturnsRead the Press Release
A Gulfport, Mississippi, tax return preparer was sentenced to 48 months in prison for obstructing the internal revenue laws and aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
According to documents and information presented to the court, Doris Kelley, 65, operated a tax return preparation business from her home in Gulfport. Kelley instructed several of her clients, who owed income taxes to the Internal Revenue Service (IRS), to write payment checks directly to her rather than to the IRS. Kelley kept these funds for herself and used most of the money to gamble at local casinos. Typically, Kelley provided copies of accurate returns to her clients, but then did not file any return with the IRS. In some cases, she also filed false returns in her clients’ names without their knowledge. Kelley earned hundreds of thousands of dollars from her scheme and caused a tax loss of more than $500,000.
In addition to the term of imprisonment imposed, U.S. District Court Judge Sul Ozerden ordered Kelley to serve one year of supervised release and to pay $519,635.72 in restitution, to include $357,534.49 to the IRS and $162,101.23 to the individual victims. Kelley pleaded guilty in April to impeding the internal revenue laws and aiding in the preparation of a false tax return.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Stan Harris and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Media Advisory: Effective Communications with Persons with Disabilities WorkshopRead the Press Release
SIOUX CITY, Iowa – The United States Attorney’s Office and Deaf Iowans Against Abuse (“DIAA”) will present the “Effective Communications with Persons with Disabilities Workshop” on Wednesday, August 16, 2017, 9:00 a.m. – 5:00 p.m. at the Sioux City Public Library, 529 Pierce Street, Gleeson Room, Sioux City, Iowa.
This conference will cover the purposes and goals of Title II and Title III of the Americans with Disabilities Act, specifically in the area of effective communications for those who interact with persons who are hard of hearing, deaf, or blind. The morning session will focus on those who work in law enforcement, the courts, city managers, ADA coordinators, and public safety entities. The afternoon session will focus on those who work in the health care industry including hospital administrators, medical facilities and offices.
Featured speakers include Jennifer Upah‑Kyes, Executive Director of Deaf Iowans Against Abuse, Inc.; Katie Hayden, Assistant United States Attorney, Northern District of Iowa, Sioux City, Iowa; and Stephanie Wright, Assistant U.S. Attorney, Northern District of Iowa, Cedar Rapids.
“Recent events on both the national and local levels involving members of the deaf and hard-of-hearing community have proven that effective communication is vital,” said Jennifer Upah-Kyes, Executive Director of Deaf Iowans Against Abuse, Inc.
Sean Berry, Acting U.S. Attorney, Northern District of Iowa, added, “The Americans with Disabilities Act requires state and local government and private entities to ensure their communications with people with disabilities are as effective as communications with those without disabilities. This important training will assist participating organizations in their efforts to effectively communicate with persons who are hard of hearing, deaf, or blind. The training will also help persons with these disabilities to understand their rights when communicating with public and private entities.”
The training is free and open to the public. RSVPs are requested by August 9, 2017, but not required. Interested parties may register by contacting Stephanie Wright at [email protected]. United States Department of Justice, U.S. Attorneys’ Offices, will provide reasonable accommodations to people with disabilities. Requests should be made to Stephanie Wright, toll-free at (877) 398-2842, TTY (319) 286-9258, or e-mail at [email protected], as early as possible, preferably, at least two weeks in advance of the conference. No attendee will be excluded from a presentation on the basis of a disability-related accommodation request.
Event Details
When: Wednesday, August 16, 2017
Where: Sioux City Public Library, 529 Pierce Street
Time: 9:00 a.m. – 5:00 p.m.
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Manhattan U.S. Attorney’s Office Closes Criminal Investigation into the April 21, 2015 Death of Samuel Harrell at Fishkill Correctional FacilityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William V. Grady, the Dutchess County District Attorney, announced today that there is insufficient evidence to pursue criminal charges in connection with the death of Samuel Harrell. Mr. Harrell, who was an inmate at the Fishkill Correctional Facility in Beacon, New York, died on April 21, 2015, following an altercation with correctional officers. Mr. Harrell was 30 years old at the time. The Acting U.S. Attorney and the District Attorney met today with Mr. Harrell’s family and their representatives to inform them of this decision.
After conducting a thorough and independent investigation, career prosecutors determined that there is insufficient evidence to meet the high burden of proof required for a federal criminal civil rights prosecution. To prove a violation of the federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. Neither accident, mistake, fear, negligence nor bad judgment is sufficient to establish a federal criminal civil rights violation.
The Dutchess County District Attorney’s Office also finds that there is insufficient evidence to meet the high burden of proof necessary to support a prosecution under any State theory of homicide. Although there was a physical altercation with corrections officers, the theory of such a homicide prosecution would require that death occurred as a result of an intentional act, a reckless act, or a criminally negligent act. Any State law theory would require a direct causal connection between any injuries inflicted by the corrections officers and the resulting death. The uncontroverted findings of the autopsy in this case find no such connection.
The evidence developed during this investigation reveals the following: Mr. Harrell resided in Building 21 of the Fishkill Correctional Facility, which contains housing units for inmates, including inmates with mental health issues. On the evening of April 21, 2015, Mr. Harrell packed his personal belongings and told corrections officers that he was leaving the facility. Mr. Harrell had not yet completed his term of incarceration. A call was placed to the mental health unit for assistance. Mr. Harrell then ran from his housing unit and attempted to exit the facility. Mr. Harrell ran head-first into a locked exit door before a group of corrections officers used physical force to apprehend and handcuff him. Mr. Harrell was over six feet tall and weighed approximately 240 pounds.
There is no video evidence of the altercation between Mr. Harrell and the corrections officers and numerous eyewitness accounts of the incident, including those provided by inmates, are inconsistent and contradictory. After the altercation, Mr. Harrell and several officers were taken to the facility’s medical unit. One officer was transported to the medical unit on a stretcher and later treated at a hospital for bruised ribs. A group of officers transported Mr. Harrell to the medical unit in a wheelchair. Mr. Harrell had a faint pulse upon arrival, but shortly thereafter, his pulse could not be detected. Medical staff attempted to resuscitate Mr. Harrell. Mr. Harrell was transported to St. Luke’s Cornwall Hospital, in Orange County, where he was pronounced dead.
The Orange County Medical Examiner performed an autopsy on April 22, 2015. The Medical Examiner concluded that, although the manner of death was noted in the report as “homicide,” the cause of death was “cardiac arrhythmia due to hypertensive cardiovascular disease following physical altercation with corrections officers.” In addition, the Medical Examiner found that Mr. Harrell suffered from cardiac hypertrophy, or an enlarged heart. No bone fractures or other serious injuries were found. While the Medical Examiner identified soft-tissue injuries on Mr. Harrell’s arms and legs and one soft-tissue injury on the front of Mr. Harrell’s head, there is insufficient evidence to prove beyond a reasonable doubt that these injuries resulted from the use of excessive force. The Medical Examiner found no indication that Mr. Harrell was asphyxiated, and confirmed that none of the injuries, singularly or collectively, were a direct cause of Mr. Harrell's death.
In light of the absence of video evidence, the inconsistent eyewitness accounts, and the inconclusive medical evidence of excessive use of force, the Department of Justice could not prove beyond a reasonable doubt that any corrections officer willfully violated Mr. Harrell’s constitutional rights.
This Office analyzed these issues under the standard applicable to criminal cases, which is proof beyond a reasonable doubt. The Office expresses no view regarding any claims made against any party under the standard applicable to civil cases, which is proof by a preponderance of the evidence.
Accordingly, this Office’s investigation into Mr. Harrell’s death has been closed.
Mr. Kim thanked the Dutchess County District Attorney’s Office, the Federal Bureau of Investigation, Investigators from the U.S. Attorney’s Office, SDNY, and the New York State Department of Corrections and Community Supervision’s Office of Special Investigation for their assistance in this investigation.
Mr. Kim expressed his deep sympathy to the family of Mr. Harrell for their tragic loss.
Man Sentenced to over Eight Years in Prison for Jewelry Store Armed RobberyRead the Press Release
RENO, Nev. – A man was sentenced on Tuesday to 102 months in prison for armed robbery of a jewelry store located in the Summit Sierra mall, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Al Christopher Braxton Allen, 35, of Las Vegas, pleaded guilty on May 1, 2017, to one count of use of a firearm during and in relation to a crime of violence. United States District Judge Robert C. Jones presided over the sentencing hearing.
According to admissions made in the plea agreement, on Sept. 14, 2016, Braxton entered the DeVons Jewelry store in the Summit Sierra mall, brandished a Llama .357 caliber revolver, and demanded “All the Rolexes and Diamonds” several times to an employee. Allen stole a total of approximately 106 watches and jewelry with a value of $449,600. One of the stolen watches was equipped with a 3SI tracking device. After a review of the store’s surveillance video, law enforcement detained Allen, who matched the robbery suspect’s description, near the mall.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Reno Police Department. The case was prosecuted by Assistant U.S. Attorney Megan Rachow.
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Man Sentenced to 30 Years in Prison for 2010 Armed RobberiesRead the Press Release
A North St. Louis man will serve 30 years in federal prison for robbing two convenience stores and shooting a store clerk in 2010. Leslie Woods, 23, was sentenced yesterday in the U.S. District Court to 30 years in prison for his role in the June 17, 2010 armed robbery and shooting that that occurred at the Best Stop convenience store in Cahokia, Illinois and the July 8, 2010 robbery and shooting that occurred at D&D’s MiniMart, also located in Cahokia, Illinois, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Documents filed in the U.S. District Court establish that on June 17, 2010, Leslie Woods, Derek Marshall, Terrell McGee and James Smith robbed the Best Stop convenience store partially masked and armed with a rifle and two handguns, one of which was a .40 caliber pistol Marshall had stolen during a burglary of a St. Louis gun store earlier in June. Woods, acting as the getaway driver, drove Marshall, McGee and Smith to the store in a car they had stolen during a carjacking in South St. Louis earlier in the day. Woods waited in the car while Marshall, McGee and Smith went into the store, ordered a customer to the ground, pointed a gun to the owner’s head and took over $11,000 from the cash register. As they fled the store, Marshall shot the customer laying on the floor with a .40 caliber pistol and then fired four shots toward a woman sitting in her car parked outside the business. The entire robbery was captured on the store video surveillance.
Five hours after the robbery, the stolen car was recovered in St. Louis County and processed for fingerprints. Two fingerprints were recovered from the door of the gas tank, which were determined to be a match to Leslie Woods. Approximately a week and a half later, Marshall was found in possession of a .40 caliber handgun during a traffic stop in Brooklyn, Illinois. Testing by the Illinois State Police forensic lab revealed that the gun recovered from Marshall was a match to the .40 caliber fired cartridges recovered by a crime scene investigator from the shooting at Best Stop.
Three weeks later, on July 8, 2010, Leslie Woods, Derek Marshall, Terrell McGee, James Smith and Reshon Farmer robbed D&D’s Minimart partially masked and armed with two rifles and two handguns. Farmer drove Woods, Marshall, McGee and Smith to the store in a minivan they had stolen in North St. Louis earlier that day. Farmer waited in the van while Woods, Marshall, McGee and Smith went into the store and pointed their guns at the two employees behind the counter. While the male clerk was trying to open the register, Woods shot him with a .30/.30 caliber rifle, causing him to fall on top of the female clerk who was lying on the ground. Woods then fired two more shots at both employees. As the two employees laid motionless on the floor, Woods and his co-conspirators took the cash register and a .40 caliber handgun that belonged to the store owner. As a result of the shooting, the male clerk suffered severe injuries and has permanent loss of use of his right arm. The entire robbery was captured on the store video surveillance.
Several police officers from North St. Louis who knew Woods, Marshall, Smith and Farmer viewed the video surveillance of D&D’s MiniMart robbery and identified Marshall, Woods and Smith as three of the gunmen. They also identified Farmer as the getaway driver. During an interview with law enforcement officers, Smith and Farmer confessed to their involvement in the D&D’s MiniMart robbery and identified Marshall, Woods and McGee as the three other gunmen.
In 2015, McGee was arrested and interviewed about his involvement in the two robberies. McGee admitted that he was one of the three gunman in the Best Stop robbery. He also admitted that he was one of the four gunmen in the D&D’s MiniMart robbery.
Woods, Marshall and McGee pleaded guilty to all charges in federal court in April 2017. Marshall and McGee are awaiting sentencing. After completion of the 30-year term of imprisonment, Woods will then serve 3 years of federal supervised release. He was also ordered to pay $727,070 in restitution to the victims and a $600 special assessment. Smith and Farmer were prosecuted for these offenses by the St. Clair County State’s Attorney’s Office.
The case was investigated by the Cahokia Police Department, the St. Louis County Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Ali Summers, Dan Kapsak, and James Piper, Jr..
MS-13 Member Sentenced for Assaulting 18th Street Gang MembersRead the Press Release
BOSTON – A member of MS-13’s Enfermos Criminales Salvatrucha clique in Chelsea was sentenced today in federal court in Boston for RICO conspiracy involving the assault of two rival gang members.
Kevin Ayala, a/k/a “Gallito,” 23, a Salvadoran national residing in Chelsea, was sentenced by U.S. District Court Judge F. Dennis Saylor to 42 months in prison and will be subject to deportation after completion of his sentence. In February 2017, Ayala pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as a RICO conspiracy.
Ayala was identified as a member of MS-13’s Enfermos Criminales Salvatrucha clique operating in Chelsea. Ayala admitted that in April 2014, he engaged in an aggravated assault upon two members of the rival 18th Street gang in Chelsea.
After a three-year, multi-agency investigation, Ayala was one of 61 individuals charged in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. In documents previously filed with the Court, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts, as well as in Central America. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group, such as attacking and murdering gang rivals and individuals believed to be cooperating with law enforcement.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.
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.
Luzerne County Man Sentenced to 27 Months’ Imprisonment for Embezzling Nearly $395,000Read the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Richard P. Conaboy sentenced Scott Capparell, age 46, of Drums, Pennsylvania, to 27 months’ imprisonment and a two-year term of supervised release, for committing bank fraud.
According to United States Attorney Bruce D. Brandler, Capparell worked from April 2013 through July 2016, as the administrator of Heritage Mills Personal Care, Inc. (“HMPC”), which provides personal care services to its residents. Capparell admitted that during that time, he diverted $394,516.98 worth of HMPC residents’ monthly rent checks to an account at PNC Bank under Capparell’s control, instead of to the HMPC account maintained at Mid Penn Bank. Capparell and others withdrew all of the diverted funds for their personal use. To conceal the scheme, Capparell lied to HMPC’s owners, and falsified HMPC’s books and records.
As part of the sentence, Judge Conaboy ordered that Capparell repay the stolen $394,516.98 to the victims of his crimes.
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Local Businesswoman Sentenced for Role in $70 Million Ponzi SchemeRead the Press Release
DAYTON – Connie Apostelos, also known as Connie Coleman, 51, formerly of Springboro, Ohio, was sentenced in U.S. District Court today to 30 months in prison for charges related to a $70 million Ponzi scheme that defrauded nearly 500 victims.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service; James Vanderberg, Special Agent in Charge, U.S. Department of Labor Office of Inspector General; Joe Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration; and Brian Peters, Enforcement Attorney, Ohio Department of Commerce Division of Securities, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
Apostelos and her husband, William Apostelos, were indicted in October 2015. According to court documents, beginning in 2009, and continuing for at least five years, the couple and others orchestrated a Ponzi scheme in the Dayton area in which nearly 480 investors lost more than $20 million collectively. They received $70 million in investment funds in total.
Connie Apostelos pleaded guilty to one count of money laundering in April.
Connie Apostelos operated and oversaw multiple companies in the Dayton area, including Coleman Capital, Inc. and Silver Bridle Racing, LLC. These companies were operated through improper use of investor funds to William Apostelos’ companies.
William Apostelos also operated and oversaw multiple purported investment and asset management companies in the Dayton area, including WMA Enterprises, LLC, Midwest Green Resources, LLC and Roan Capital. He falsely reported that he held a degree in mathematics and was a registered securities broker.
The couple recruited investors from 37 states to invest in WMA and Midwest Green, telling the investors that their money would be used for acquiring stocks or securities, purchasing real estate or land, providing loans to business and buying gold and silver.
Rather than investing the money, the couple used it to pay for personal luxuries. According to court documents, the couple was spending $35,000 per month on Connie’s horse racing company and $400 per month on Victoria’s Secret lingerie.
When the defendants became late on interest payments to the victims, they advised that their bank account had been hacked, a bank mistakenly failed to wire payment and/or the deal the victim had invested in was temporarily on hold.
The government has seized two racehorses, vehicles, jewelry, artwork and cash totaling approximately $650,000 from the couple.
William Apostelos pleaded guilty to conspiracy to commit mail and wire fraud and theft or embezzlement from an employee benefit plan and was sentenced in June to 180 months in prison.
Steven Scudder, 62, of Centerville, an attorney who served as trustee of the WMA Trust, pleaded guilty in U.S. District Court in January to wire fraud, admitting that he used his position as an attorney to facilitate the fraudulent investment scheme. He was sentenced in June to 14 months in prison.
“Connie Apostelos used the money of hard working investors to pay for her extravagant personal expenses and is being held accountable for her actions,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Now, approximately 500 investors are in financial peril that could last a lifetime.”
U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant United States Attorney Brent G. Tabacchi, who is prosecuting the case.
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Lincoln Mother and Son Sentenced for Conspiracy to Distribute Misbranded Substances, Drug Paraphernalia, and Related Financial CrimesRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on Tuesday, August 1, 2017, co-defendants Allen E. Peithman, Jr., Sharon A. Elder, were sentenced, respectively, to 129 months and 63 months in prison and fined $500,000 each. They were both ordered to pay over $5,000 in restitution, and their corporations, Cornerstone Plaza, Inc., and AEP Properties, L.L.C., were also ordered to pay over 2.5 million dollars in fines. In addition to the prison sentences and fines, all four defendants were found jointly liable for a money judgment of $1,142,924.32 and ordered to forfeit a bank account and “potpourri” and drug paraphernalia seized during 2015 searches of their “head shops,” Dirt Cheap and Island Smokes.
In March, a federal jury convicted Peithman, Elder, and Elder’s corporation, Cornerstone Plaza, Inc. of conspiracy to distribute drug paraphernalia, investment of illicit drug proceeds, conspiracy to distribute misbranded substances, conspiracy to commit mail fraud and conspiracy to structure financial transactions. Peithman’s corporation, AEP Properties, was also convicted of conspiracy to structure. The jury also found that a bank account in the name of Cornerstone Plaza, Inc., as well as seized “potpourri” and drug paraphernalia should be forfeited. The money judgment was determined by U.S. District Judge Richard G. Kopf.
The defendants were sentenced as follows:
Peithman:
Conspiracy to distribute drug paraphernalia 36 months
Investment of illicit drug proceeds 115 months
Conspiracy to distribute misbranded substances 36 months
Conspiracy to commit mail fraud 115 months
Conspiracy to structure financial transactions 115 months – all sentences to run concurrently
Violation of supervised release 14 months – consecutive to above sentences
Fine $500,000.00
Special assessments $500.00
Restitution $5,186.56
Elder:
Conspiracy to distribute drug paraphernalia 36 months
Investment of illicit drug proceeds 63 months
Conspiracy to distribute misbranded substances 36 months
Conspiracy to commit mail fraud 63 months
Conspiracy to structure financial transactions 63 months – all sentences to run concurrently
Fine $500,000.00
Special assessments $500.00
Restitution $5,186.56
Cornerstone Plaza, Inc.:
Fine $2,060,000.00
Special assessments $2,000.00
AEP Properties, L.L.C:
Fine $450,000.00
Special Assessment $400.00
This case was investigated by the Lincoln/Lancaster County Drug Task Force, the Food and Drug Administration, Homeland Security Investigations, and the Nebraska State Patrol.
Lebanon and Berks County Men Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Andrew Miller, age 33, of Womelsdorf, Pennsylvania, Brian Blatt, age 21, of Lebanon, Pennsylvania, and Jacob Keiter, age 24, of Jonestown, Pennsylvania were indicted on July 26, 2017, by a federal grand jury for methamphetamine and heroin trafficking as well as possessing firearms in furtherance of drug trafficking.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Miller, Blatt, and Keiter conspired to distribute 50 grams or more of methamphetamine in February and March 2017, and possessed with the intent to distribute methamphetamine and heroin on March 5, 2017. The indictment also alleges that the three men possessed firearms in furtherance of their drug trafficking conspiracy. Miller is also charged with unlawfully possessing a Beretta pistol as a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Cornwall Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Kittson County Man Sentenced for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the sentencing of JAMES LESTER PARAMORE, 45, for distribution of child pornography. PARAMORE pleaded guilty on February 9, 2017, to one count of distribution of child pornography. On July 27, 2017, United States District Judge Donovan W. Frank sentenced PARAMORE to 136 months in federal prison and 25 years of supervised release.
According to the defendant’s guilty plea and documents filed in court, in June 2016, the Minnesota Bureau of Criminal Apprehension (BCA) received a cybertip from the National Center for Missing and Exploited Children (NCMEC) in reference to a Flickr account containing child pornography. After further investigation, the BCA was able to determine that PARAMORE was the account holder of the reported Flickr account and a search warrant was executed on the defendant’s home in Lake Bronson, Minn.
According to the defendant’s guilty plea and documents filed in court, PARAMORE admitted to being the Flickr account holder and to possessing, viewing and uploading child pornography using a VPN encryption in an attempt to prevent law enforcement from detecting his illegal activities. As a result of the search warrant, law enforcement agents found in PARAMORE’S home and on his computer and cell phone hundreds of images and video files containing child pornography, extensive Facebook conversations about child pornography websites, and electronic bookmarks and handwritten logs of child pornography websites. PARAMORE also kept detailed notes on how to prevent law enforcement from detecting his child pornography activities through the use of VPN, proxy servers, and encryption tools.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension and the Kittson County Sheriff’s Office.
This case was prosecuted by Assistant United States Attorney Angela Munoz-Kaphing.
Defendant Information:
JAMES LESTER PARAMORE, 45
Lake Bronson, Minn.
Convicted:
- Distribution of Child Pornography, 1 count
Sentenced:
-
136 months in prison
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25 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Judge Sentences Former U.S. Air Force Member to 4 Years in Prison for Stealing Personal Information of Service Members and Distributing It to OthersRead the Press Release
CHICAGO — A former member of the United States Air Force was sentenced today to four years in federal prison for stealing the personal identifying information of fellow service members and distributing it to others.
On the eve of his dismissal from the military, RONNIE ALLEN II stole a personnel roster containing the names, dates of birth, Social Security numbers and other personal identifying information of more than 1,400 Air Force members stationed at Mountain Home Air Force Base in Idaho. Hoping to make money, Allen distributed the stolen information to others, including co-defendant ANTORONDI BENION. The Air Force members’ information was then fraudulently used to open accounts at various financial institutions, and to file tax returns with the Internal Revenue Service in the names of the Air Force members.
A federal jury earlier this year convicted Allen, 28, of Greensboro, N.C., on two counts of identity theft, two counts of access device fraud, and two counts of aggravated identity theft. U.S. District Judge Matthew F. Kennelly imposed the 48-month sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois, and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. Valuable assistance was provided by the Air Force Office of Special Investigations.
“Identity theft is a serious crime,” Special Assistant U.S. Attorney Jared Jodrey and Assistant U.S. Attorney Brian Hayes argued in the government’s sentencing memorandum. “Allen betrayed his fellow service members and displayed an alarming indifference to the financial havoc they would experience.”
Allen was an enlisted member of the Air Force who held a clerical position in the maintenance group. The position gave him access to the Alpha Roster, a database of detailed personal identifying information for Air Force members assigned to the base. Evidence presented at trial showed that two weeks prior to his discharge on Jan. 31, 2013, Allen downloaded the Alpha Roster and sent a copy from his work e-mail account to his personal e-mail account. Allen then asked an acquaintance if he knew anyone who could help him make money using the Alpha Roster.
Eventually Allen was put in touch with Benion, and on April 30, 2014, Allen e-mailed Benion the entire Alpha Roster. In the email to Benion, Allen wrote, “Man here is the whole list i trust u if u make money off of it u will pay me for the info.”
Benion used the Alpha Roster identities to fraudulently open financial accounts and to conduct “account takeovers,” which involved adding himself and others as authorized users on existing accounts and causing the banks to issue credit cards in their names. From April 2013 to January 2016, Benion was involved in establishing at least 63 accounts at various financial institutions in the names of 35 Alpha Roster victims, which resulted in losses totaling approximately $163,389.
Benion, of Bellwood, Ill., pleaded guilty earlier this year to one count of access device fraud and one count of aggravated identity theft. On May 30, 2017, Judge Kennelly sentenced Benion to 70 months in prison.
Illegal Alien from Mexico Sentenced to Prison after Returning to the United States Following Two DeportationsRead the Press Release
A Mexican man who had previously been deported twice was sentenced today to 16 months in federal prison.
Leonardo Vega-Martinez, age 40, a citizen of Mexico who had been living in Cascade, Iowa, received the prison term after a May 4, 2017, guilty plea to misuse of a Social Security Number and illegal reentry of a removed alien after a felony conviction.
In a plea agreement, Vega-Martinez admitted he illegally reentered the United States without permission after having been deported from the United States in 2009 and 2011. Vega-Martinez also admitted that after illegally returning to the United States, he used a fraudulent Social Security Number when he completed an Immigration Form I-9 in February 2013 to obtain employment at a company in Earlville, Iowa. Vega-Martinez was previously convicted in Texas in 2011 of illegal reentry of a removed alien, a felony offense. Vega-Martinez had also been convicted of operating a motor vehicle while under the influence of alcohol three times, including two times in Allamakee County, Iowa, where he was convicted under an alias.
Vega-Martinez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Vega-Martinez was sentenced to 16 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Vega-Martinez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2012-LRR.
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ISIS supporter from Akron sentenced to 20 years in prison for soliciting murder of U.S. service membersRead the Press Release
An Akron man was sentenced to 20 years in prison for soliciting the murder of members of the U.S. military.
Terrence J. McNeil, 24, pleaded guilty earlier this year to five counts of solicitation to commit a crime of violence and five counts of making threatening interstate communications.
The sentencing was announced by Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney David A. Sierleja and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
"With this sentence, McNeil is being held accountable for disseminating ISIS's violent rhetoric, circulating U.S. military personnel information and explicitly calling for the killing of American service members in their homes and communities," said Acting Assistant Attorney General Boente. "The National Security Division will continue to investigate and prosecute those who use social media to threaten acts of violence against our military members and their families, on behalf of terrorist organizations."
“This defendant was dedicated to attacking members of the military here in the United States,” Acting U.S. Attorney Sierleja said. “This kind of fanaticism is dangerous and will be aggressively prosecuted.”
“It is reassuring knowing that Terrence McNeil will spend a significant amount of time behind bars for the crimes he committed. The FBI will continue to aggressively defend First Amendment rights, however in this case, McNeil went far beyond free speech by reposting names and addresses of 100 U.S. service members, all with the intent to have them killed,” said Special Agent in Charge Anthony. “The FBI will remain vigilant in our efforts to stop those who wish to support these despicable acts.”
According to documents filed in the case:
McNeil professed his support on social media on numerous occasions for the Islamic State of Iraq and al-Sham, a designated foreign terrorist organization.
On or about Sept. 24, 2015, using a Tumblr account, McNeil reblogged a file with the banner “Islamic State Hacking Division,” followed by “Target: United States Military” and “Leak: Addresses of 100 U.S. Military Personnel.”
The file type is a .gif file, which allows multiple still images to be looped in one file, with a timed delay between each image. The text of the first file reads “O Brothers in America, know that the jihad against the crusaders is not limited to the lands of the Khilafah, it is a world-wide jihad and their war is not just a war against the Islamic State, it is a war against Islam…Know that it is wajib (translated to “necessary”) for you to kill these kuffar! and now we have made it easy for you by giving you addresses, all you need to do is take the final step, so what are you waiting for? Kill them in their own lands, behead them in their own homes, stab them to death as they walk their streets thinking that they are safe…”
The file then loops several dozen photographs, purportedly of U.S. military personnel, along with their respective name, address and military branch.
The final image looped is a picture of a handgun and a knife with text that reads “…and kill them wherever you find them…”
The defendant posted multiple other kill lists in late 2015, all of which repeated the same refrain, calling on others to seek out and murder U.S. servicemen and women.
McNeil also researched the price online of firearms for sale and possessed detailed bomb-making instructions, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Chris N. Georgalis and Michelle M. Baeppler, with assistance from Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section, following an investigation by the FBI’s Joint Terrorism Task Force in Cleveland.
Husband and Wife Plead Guilty to Sex TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Frederick Evans, 40, and his wife Lashara Evans, 37, both of Rochester, NY, pleaded guilty to sex trafficking offenses before U.S. District Judge Charles J. Siragusa. Frederick Evans pleaded guilty to transporting a minor across state lines for the purpose of engaging in prostitution and faces a mandatory minimum penalty of 10 years in prison and a maximum of life. Lashara Evans pleaded guilty to conspiring with Frederick Evans to have minors engage in sex trafficking and faces a maximum sentenced of five years in prison.
Assistant U.S. Attorney Melissa Marangola, who is prosecuting the case, stated that between 2006 and 2007, Frederick Evans transported a minor victim from Rochester to New Orleans, Louisiana. The minor victim engaged in prostitution activities and gave the proceeds to the defendant.
In 2010, a 15 year-old minor victim was looking for a place to live when she met Frederick Evans who convinced the minor to engage in prostitution activities. Frederick Evans, who advertised the minor victim on Backpage.com., would have the minor victim engage in these activities along with his then-girlfriend Lashara. The minor and Lashara Evans would prostitute at a residence in Rochester, as well as at hotels in Syracuse, Watertown and Buffalo. Lashara Evans paid for the hotel rooms on occasion and the minor victim would give a portion of the money she earned from prostituting to Lashara Evans who would, in turn, give it to Frederick. Frederick used the money to pay rent and the bills for the residence where the prostitution activities took place in Rochester.
On December 17, 2011, Lashara Evans and Frederick Evans transported both the minor victim and another minor victim to a hotel in the Elmira area in order to engage in prostitution.
Frederick Evans will be sentenced on November 2, 2017, at 9:15 a.m. Lashara Evans will be sentenced on November 6, 2017, at 9:15 a.m. Both sentencings will be before Judge Siragusa.
The pleas are the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Henderson Man Sentenced to 14 Years in Prison for Receipt of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nev. man was sentenced today to 168 months in prison followed by lifetime supervised release for receipt of child pornography, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
After a three-day jury trial, on April 27, 2017, a jury found Andrew John Gibson, 28, guilty of one count of receipt of child pornography. United States District Judge Kent J. Dawson presided over the jury trial and sentencing hearing.
According to the indictment and other court documents, from about June 19, 2013 to about Nov. 21, 2013, Gibson used the Ares P2P network to access and download child pornography. During an interview with law enforcement, Gibson admitted to downloading child pornography. After forensic examinations of Gibson’s computers, law enforcement deemed 307 images and 201 videos were child pornography.
The case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations (ICE-HSI) and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorneys Christopher Burton, Patrick Burns, and Lisa Cartier-Giroux.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Hedge Fund Manager ArrestedRead the Press Release
BOSTON – A Boston-area hedge fund manager was arrested and charged today in federal court in Boston with running a multi-million dollar Ponzi scheme.
Raymond K. Montoya, 69, of Allston, was charged with mail fraud and wire fraud. Montoya was released on conditions following an initial appearance in federal court this afternoon.
Between 2009 and June 2017, Montoya ran a pooled investment hedge fund in Boston called RMA Strategic Opportunity Fund, LLC. It is alleged that Montoya falsely told his investors—including his family, friends, and acquaintances who resided in Massachusetts, Ohio, and California—that the fund was earning substantial returns, when in fact, by 2014, the RMA Fund was sustaining substantial losses. According to court documents, the victims transferred millions of dollars of their personal savings and 401(k) retirement plans to Montoya and the RMA Fund. Montoya told his investors that he would invest their money in stocks and bonds, but he actually invested only a portion of their money, while diverting the rest—totaling millions of dollars—to business and personal bank accounts. Montoya allegedly used the diverted money for personal expenses such as luxury vehicles and the mortgage on his son’s residence.
Montoya was previously charged with securities fraud in a civil complaint by the Massachusetts Securities Division.
The charging statutes provide for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or gross loss from the offense, restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The Massachusetts Securities Division provided valuable assistance. The case is being prosecuted by Assistant U.S. Attorney Neil J. Gallagher Jr. of Weinreb’s Economic Crimes Unit.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hazleton Man Sentenced to 57 Months’ Imprisonment for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jacob Davis, age 32, of Hazleton, Pennsylvania, was sentenced today to 57 months’ imprisonment by Senior U.S. District Court Judge Richard P. Conaboy, for selling heroin in the Hazleton area during the summer of 2015.
According to United States Attorney Bruce D. Brandler, Davis previously pleaded guilty to distributing between 80 and 100 grams of heroin (which equals approximately 3,000-4,000 retail bags of heroin) during June through August of 2015.
Judge Conaboy also ordered Davis to serve three years on supervised release following his prison sentence.
Davis was charged in an Information filed by the U.S. Attorney’s Office in October 2015. The case was investigated by the Drug Enforcement Administration and the Hazleton Police Department. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Greenbrier County pain pill dealer sentenced to federal prison for drug crimeRead the Press Release
BECKLEY, W.Va. - A Greenbrier County man was sentenced today to a year and 10 months in federal prison for an oxymorphone crime, announced United States Attorney Carol Casto. Justin Wade Bradley, 24, of Alderson, previously pleaded guilty to distribution of oxymorphone.
Bradley admitted that on October 21, 2016, he sold oxymorphone to a confidential informant working with law enforcement. The drug deal took place in Ronceverte. As part of the plea agreement, Bradley further admitted that he distributed approximately 75 oxymorphone pills between the summer of 2016 and November of 2016, which accounted for the other drug trafficking conduct charged in the indictment.
The Greenbrier Valley Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney John L. File is responsible for the prosecution. United States District Judge Irene C. Berger imposed the sentence.
This case was prosecuted under the Greenbrier Valley Heroin and Pill Initiative as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Getaway Driver Involved in North Jersey Bar Robbery Sentenced to Two Years in PrisonRead the Press Release
NEWARK, N.J. – A Rockland County, New York, man was sentenced today to 24 months in prison for his role in a conspiracy to rob a bar in Hawthorne, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Oscar Avalos-Cortez, 23, of New City, New York, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with conspiracy to commit Hobbs Act Robbery. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 25, 2015, Avalos-Cortez drove at least six conspirators to a bar in Hawthorne, where they forcibly robbed the bar and subsequently fled with approximately $200 in cash in Avalos-Cortez’s car.
In addition to the prison term, Judge Linares sentenced Avalos-Cortez to three years of supervised release.
Avalos-Cortez was originally charged with Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Guillermo Carrillo-Iraheta, 20, of Suffern, New York, Balmore Carrillo-Iraheta, 20, of Suffern, Juan Chiliseo-Vega, 20, of Suffern, and Jostin Reyes, 21, of Waldwick, New Jersey, in November 2016.
Chiliseo-Vega, Guillermo Carrillo-Iraheta and Reyes previously pleaded guilty in Newark federal court to three-count informations in connection with their involvement in the conspiracy to commit Hobbs Act Robbery, as well as a carjacking and kidnapping in which Avalos-Cortez was not involved. On July 7, 2017, Chiliseo-Vega was sentenced to 168 months in prison and Guillermo Carrillo-Iraheta was sentenced to 150 months in prison. Reyes is scheduled to be sentenced Oct. 18, 2017.
Balmore Carrillo-Iraheta was indicted by a federal grand jury on April 18, 2017, for his role in the conspiracy to rob the bar. The charges against Barahona for his role in the robbery, carjacking, and kidnapping are still pending. Both men are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Georgetown Man Indicted for Health Care FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Cameron Banks (a/k/a Reggie Staggers), age 32, of Georgetown, S.C., was charged in a seven-count federal indictment with Health Care Fraud, in connection with an alleged scheme to submit fraudulent loan applications for dental services.
The maximum penalty he could receive for each count is 20 years imprisonment and a fine of $250,000.
The case was investigated by agents with the Federal Bureau of Investigations (FBI) and the Internal Revenue Service and is assigned to Assistant United States Attorney Matt Austin of the Charleston office for prosecution.
The United States Attorney stated all charges in this indictment are merely accusations and the defendant is presumed innocent until and unless proven guilty.
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Fort Wayne Man Sentenced to 97 Months ImprisonmentRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Japheth Sims, age 29, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Theresa Springmann on his plea of guilty to the crime of being a convicted felon in possession of a firearm.
Sims was sentenced to 97 months imprisonment and 1 year of supervised release.
According to documents filed in this case, August 19, 2016, Sims possessed a firearm after having been convicted of felony Possession of Cocaine.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department Vice and Narcotics Unit, with the assistance of the United States Marshal’s Service and was handled by Assistant United States Attorney Stacey R. Speith.
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Former Plattsburgh Resident Admits Half a Million Dollars in Online FraudRead the Press Release
ALBANY, NEW YORK – Jared R. Hudson, 39, formerly of Plattsburgh, New York, pled guilty today to conspiracy to commit wire fraud, wire fraud, access device fraud, and aggravated identity theft.
The announcement was made by Acting United States Attorney Grant C. Jaquith, Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Plattsburgh Police Chief Kenneth R. Parkinson.
As part of his plea, Hudson admitted that from October 2009 until December 13, 2014, he devised a scheme to defraud banks, merchants, and individual consumers by obtaining stolen credit card numbers, bank account numbers, expiration dates, security codes, answers to security questions, and other personal identification information that was used to purchase goods electronically and to fraudulently transfer and attempt to transfer funds electronically.
Initially, the defendant used stolen credit card numbers belonging to others to order merchandise online and had the merchandise shipped to him. Hudson used the stolen personal identification information to sign up for credit cards in other people’s names, which the defendant had sent to him for use in purchasing merchandise online. The scheme to defraud evolved into opening investment accounts in the defendant’s name which were funded with money taken from the victims’ bank accounts using stolen account numbers, routing numbers, identification, and banking security information. As part of his guilty plea, Hudson admitted at least $510,544.49 in actual and intended losses from his victims.
Hudson has been detained in custody since his arrest on June 24, 2016. Upon sentencing on November 29, 2017, he faces at least 2 years and up to 20 years in prison. The court may also impose a fine of up to $250,000 on each count of conviction. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case is being investigated by the Federal Bureau of Investigation (FBI) and the Plattsburgh Police Department, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Former Congressional Staffer Indicted on Federal Bribery Charge that Accuses Him of Extorting $5,000 from Compton Marijuana ShopRead the Press Release
LOS ANGELES – A former staffer for a member of the United States Congress was arrested today on federal extortion and bribery charges after allegedly taking $5,000 with promises of helping to prevent the closure of a Compton marijuana shop.
Michael Kimbrew, 44, of Carson, was arrested without incident this morning by special agents with the FBI.
Kimbrew was arrested pursuant to a two-count indictment that was returned by a federal grand jury on July 21 and unsealed this afternoon. Kimbrew is charged with one count of attempted extortion and one count of receiving a bribe.
At his arraignment this afternoon, Kimbrew pleaded not guilty and was ordered freed on a $15,000 bond. He was ordered to stand trial on September 26.
According to the indictment, Kimbrew approached an employee of the marijuana shop, told him the store was violating the law, and said the shop would be shut down – unless the owners reached an agreement with him.
Kimbrew subsequently met with the owners of the marijuana shop inside Compton City Hall. The indictment alleges that Kimbrew claimed to be working with the FBI, and he could “make things happen” by ensuring the store had the appropriate permits in exchange for $5,000.
According to the indictment, an undercover FBI agent posing as a business partner met with Kimbrew, who reiterated his claims he could prevent the shutdown of the shop in exchange for $5,000. In a second meeting between Kimbrew and the undercover agent, Kimbrew allegedly accepted the $5,000 bribe.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of the two counts in the indictment, Kimbrew would face a statutory maximum sentence of 18 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation.
The prosecution is being handled by Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Forcefield Energy Investor Relations Professional Sentenced to 36 Months in Prison for Role in A $131 Million Market Manipulation SchemeRead the Press Release
Jared Mitchell, an investor relations professional, was sentenced earlier today to 36 months’ imprisonment, to be followed by three years of supervised release, after having pleaded guilty to securities fraud for his role in the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly traded company previously listed on the NASDAQ under the ticker symbol “FNRG.”
The sentencing was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
According to court filings and facts presented at the sentencing hearing, between 2009 and 2015, Mitchell and others engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField. Mitchell and others committed this crime by, among other means: (1) secretly using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the misleading appearance of genuine trading volume and interest in the stock; and (3) concealing secret payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while falsely claiming to be independent of the company. The fraudulent scheme caused a loss of approximately $131 million to the investing public.
Between October 2014 and April 2015, a ForceField executive paid secret commissions, or kickbacks, to Mitchell. Mitchell then paid a portion of the kickbacks to registered brokers in exchange for the registered brokers’ purchasing ForceField stock in their clients’ brokerage accounts. Mitchell kept the remaining portion of the kickbacks for himself. The registered brokers did not disclose to their clients the kickbacks they were receiving for purchasing ForceField stock. Mitchell and his co-conspirators took pains to conceal their participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications to communicate with each other, and by paying kickbacks in cash during in-person meetings.
Today’s proceeding, which took place before United States District Court Judge Brian M. Cogan, is the fourth sentencing to take place in connection with the ForceField securities fraud. Four other defendants who pleaded guilty in this matter, and one defendant convicted after trial, remain to be sentenced.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert are in charge of the prosecution.
The Defendant:
JARED MITCHELL
Age: 35
Residence: Brooklyn, New York
E.D.N.Y. Docket No. 16-CR-234 (BMC)
Five Sentenced This Week as Part of Operation Leaving Las VegasRead the Press Release
Abingdon, VIRGINIA – In late 2016, law enforcement agencies, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, and assisted by agencies from across southwest Virginia, charged 32 individuals with conspiring to distribute methamphetamine and oxycodone.
The investigation, deemed Operation Leaving Las Vegas, accused 32 individuals of trafficking methamphetamine and oxycodone from Law Vegas into Southwest Virginia, Eastern Kentucky and elsewhere.
To date, 25 of the 32 charged have been convicted of federal drug conspiracy and money laundering charges. Nineteen of the defendants have been sentenced. The cases for the remaining defendants are working their way through the federal court system.
This week in the United States District Court for the Western District of Virginia in Abingdon, five defendants were sentenced for their roles in the conspiracy, Acting United States Attorney Rick A. Mountcastle announced.
Brandon Lee Stone, 33, was sentenced to 25 years in federal prison; Bradley Lee Chapman, 28, was sentenced to 135 months; Alex Michael Kayian, 23, was sentenced to 72 months; Kaitlynn Elizabeth Chapman was sentenced to 72 months, and Ralph Stewart Dingus, 27, was sentenced to 37 months.
Defendants previously sentenced for their roles in the conspiracy include John Dewayne Farmer, 240 months; Lola Virginia Farmer, 87 months; Shauna Nicole Chafin, 97 months; William Wesley Fleenor, 79 months; Jeffrey Nathaniel Gobble, 46 months, Preston Kyle Lawson, 46 months; Gary Ginn, 151 months; Daniel Corey Cantrell, 37 months; Tanner Morris Curd, 84 months; Amy Lorene Moser, 100 months; Steven Salyer, 87 months; Brandon Cody Trivett, 30 months; Lamar Skipper, four years’ probation; and Gary Brandon Childress, three years’ probation.
The investigation of the case was conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service Criminal Investigations, United States Marshals Service, Virginia State Police, Washington County, Virginia Sheriff’s Office, Abingdon Police Department, Marion Police Department, and Smyth County, Virginia Sheriff’s Office. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Felon Sentenced for Possessing GunRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for a federal firearm offense.
Mark Eisan, 35, was sentenced by U.S. District Court Chief Judge Patti B. Saris to one year in prison and one year of supervised release. In March 2017, Eisan pleaded guilty to one count of being a felon in possession of a firearm.
On March 12, 2014, Eisan was found in possession of a .45 caliber pistol. Due to a prior gun conviction, Eisan was prohibited from owning a firearm.
Acting U.S. Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
El Paso, Texas Man Pleads Guilty to Federal Drug Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Christopher Joshua Cortes, 32, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Cortes was arrested on April 17, 2017, on an indictment charging him with conspiring to distribute methamphetamine from March 13, 2016 through June 6, 2016, and distributing methamphetamine on June 6, 2016. According to the indictment, Cortes committed the offenses in Dona Ana County, N.M. The indictment included forfeiture provisions requiring Cortes to forfeit $6,500, the money involved in the drug transaction, to the United States.
During today’s proceedings, Cortes pled guilty to the indictment and admitted that he voluntarily agreed with others to distribute methamphetamine in Dona Ana County from about March 13, 2016 through June 6, 2016. Cortes further admitted distributing approximately 407 grams of methamphetamine to an undercover law enforcement agent on June 6, 2016.
At sentencing, Cortes faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. Cortes remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by Homeland Security Investigations and is being prosecuted by Special Assistant U.S. Attorney Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office.
Eagle Butte Woman Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Assault Resulting in Serious Bodily Injury was sentenced on August 1, 2017, by U.S. District Judge Roberto A. Lange.
Rheta Haskell, a/k/a Rheta Miner, age 38, was sentenced to 16 months in custody, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Haskell was indicted by a federal grand jury on January 19, 2017. She pled guilty on May 15, 2017.
The conviction stems from an incident on October 8, 2016, when Haskell approached the victim near the civil courts building in Eagle Butte. Both had been drinking previously. Haskell had heard rumors that the victim had been with Haskell’s ex-husband. When Haskell saw the victim, she told the victim to stay away from her ex-husband. The victim denied knowing what Haskell was talking about. Haskell became angry and assaulted the victim. The victim was bleeding heavily from her face and lost consciousness. As a result of the assault, the victim sustained serious injuries. She had had significant swelling and trauma to her face, orbital regions and scalp. Hospital staff were unable to visualize the right pupil due to the significant swelling to the victim’s right eye. Her left pupil floated towards the inner eye and would not look straight. Five (5) staples were used to close the laceration to the left side of her head. Due to the nature of her head injury, the victim was transported to Rapid City Regional Hospital.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Haskell was immediately turned over to the custody of the U.S. Marshals Service.Eagle Butte Woman Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Lynsi Bad Warrior, a/k/a Lynsi Four Bear, age 33, was indicted on July 18, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 24, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 7, 2017, Bad Warrior unlawfully assaulted an adult female with shod feet, causing serious bodily injury to the victim.
The charges are merely accusations and Bad Warrior is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.Bad Warrior was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Sentenced on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota man convicted of Distribution of a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on August 1, 2017, by U.S. District Judge Roberto A. Lange.
Smokey James Jandreau, age 40, was sentenced to 10 months in custody and 3 years of supervised release on each count, to run concurrently, a fine of $1,000, forfeiture of a firearm and ammunition, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $200.
Jandreau was indicted by a federal grand jury on August 16, 2016. He pled guilty on May 16, 2017.
On three occasions between July 2, 2016, and July 24, 2016, Jandreau knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, in Eagle Butte, South Dakota.
On July 26, 2016, Jandreau came into contact with law enforcement. During a search of his residence, officers found a rifle, ammunition, and drug paraphernalia near his bedroom. Jandreau admitted owning the firearm and smoking methamphetamine. Being a drug user, Jandreau was prohibited from possessing the firearm. The firearm was seized by law enforcement and forfeited.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Jandreau was immediately turned over to the custody of the U.S. Marshals Service.Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on August 1, 2017, by U.S. District Judge Roberto A. Lange.
Thomas James Shan Looking Horse, a/k/ T.J. Shan Looking Horse, age 28, was sentenced to 24 months in custody, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of
$100.
Looking Horse was indicted by a federal grand jury on January 19, 2017. He pled guilty on May 16, 2017.
The conviction stems from an incident on December 19, 2016, when Looking Horse was taken to the Indian Health Services Hospital in Eagle Butte by his parents. He had been acting erratically and his mother was concerned that he may be under the influence of something.When they got Looking Horse to the hospital, he became aggressive and uncooperative, so law enforcement was notified. A police sergeant with the Cheyenne River Sioux Tribe responded and attempted to rationalize with Looking Horse, telling him that hospital staff just wanted to get him checked out and get him the help he needed. Looking Horse became uncooperative while at the hospital and was placed under arrest by the police sergeant.
When the sergeant went to place handcuffs on Looking Horse, he pulled both of his arms towards his chest and asked the sergeant what he was doing. When the sergeant attempted again to place the wrist restraints on Looking Horse, he attempted to get away. The sergeant had ahold of Looking Horse’s right arm when Looking Horse grabbed the handle of the sergeant’s duty weapon with his left hand, and tried to get it out of its holster. The sergeant pushed down on his duty weapon and turned away from Looking Horse who continued to try to go for the duty weapon. Several people intervened to assist the sergeant, but Looking Horse continued his irate behavior, and was still fighting to get away. Looking Horse was ultimately taken to the ground and restrained. He continued to be uncooperative and resistive.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Looking Horse was immediately turned over to the custody of the U.S. Marshals Service.Eagle Butte Man Charged with Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Nolan Leo Coleman, age 28, was indicted on June 14, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 28, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 14, 2016, Coleman, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a firearm which had been shipped and transported in interstate commerce and foreign commerce.
The charge is merely an accusation and Coleman is presumed innocent until and unless proven guilty.The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Coleman was released on bond pending trial which has been set for October 3, 2017.Cumberland County Man Sentenced to Five Years in Prison for Receipt of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David Allen Hoffman, age 68, of Mechanicsburg, Pennsylvania, was sentenced on August 1, 2017, by U.S. District Court Judge William W. Caldwell to five years’ imprisonment, followed by 10 years of supervised release for receipt of images depicting the sexual exploitation of children. Judge Caldwell also ordered Hoffman to be immediately remanded into the custody of the United States Marshals Service.
According to United States Attorney Bruce D. Brandler, Hoffman received images depicting the sexual abuse of children from an international company. After obtaining a warrant, federal law enforcement officers searched Hoffman’s home in August 2016, and located over 600 images depicting the sexual exploitation of children he received between December 2010 and February 2011.
This case was investigated by the United States Postal Inspection Service and the Pennsylvania Office of the Attorney General. Assistant United States Attorney Daryl F. Bloom prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Couple who operated Akron restaurant sentenced to prison for harboring and hiring undocumented workers, not paying taxesRead the Press Release
Two people who operated an Akron restaurant were sentenced to prison for harboring and hiring undocumented workers, law enforcement officials said.
Zhou Qiang Zou, was sentenced to 18 months in prison, to be followed by deportation. Xin Hsu was sentenced to nine months incarceration followed by nine months of house arrest. They are married and live in Akron. Both are 35 years old.
They were among the operators of the Royal Buffet and Grill restaurant in the Chapel Hill area of Akron. Hsu, Zou and others conspired to harbor and harbored at least 10 undocumented workers for the purpose of commercial advantage and private financial gain. The conspiracy included employing the undocumented workers at the Royal Buffet and Grill, where they worked for below minimum wage or only for tips, according to court documents.
Hsu, Zou and others also failed to report and pay taxes on cash receipts for nearly a decade, resulting in a tax loss of at least $1.5 million.
The defendants also housed the undocumented workers at one of their residences on Annapolis Avenue in Akron and transported them to and from the Royal Buffet and Grill as part of the conspiracy. Hsu, Zou and others housed as many as 14 undocumented workers at one time inside a single-family house, according to court documents.
“These defendants violated immigration and tax laws, taking advantage of their workers and the taxpayers,” said Acting U.S. Attorney David A. Sierleja.
“Employers have a legal responsibility to hire and maintain an authorized workforce. Those who circumvent our immigration system will be held accountable,” said Steve Francis, Acting Special Agent in Charge of HSI’s Detroit office.
“Individuals who corruptly violate the law to further their business interests and intentionally evade paying their fair share of taxes undermine public confidence in our tax system and unfairly disadvantage businesses that play by the rules,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “As these defendants have discovered, operating outside the law and failing to pay taxes have severe consequences."
The case is being prosecuted by Assistant U.S. Attorneys Teresa Riley and Robert J. Patton following an investigation by the U.S. Department of Homeland Security Investigations and the Internal Revenue Service – Criminal Investigations.
Clarion Man Sentenced to 20 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
A man who received child pornography was sentenced yesterday to 20 years in federal prison.
Jonathan Sebert, age 25, from Clarion, Iowa, received the sentence after a February 9, 2017 guilty plea to one count of receipt of child pornography. At the plea hearing, Sebert admitted that, between 2012 and 2015, he knowingly received child pornography.
Sebert was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Sebert was sentenced to 240 months’ imprisonment. A special assessment of $100 was imposed, and Sebert must also serve a 20-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Wright County Sheriff’s Office and the Mason City Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-3054.
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Charleston felon pleads guilty to second federal gun crimeRead the Press Release
CHARLESTON, W.Va. - A Charleston man pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Markus Davis, 39, entered his guilty plea to a single-count indictment charging him with illegally possessing a firearm after being convicted of a felony.
Davis was pulled over on Virginia Street in Charleston on February 22, 2017. During the traffic stop, officers with the Charleston Police Department found a stolen, loaded Taurus handgun in his pants. Davis was prohibited from possessing any firearm under federal law because of previous felony convictions. Additionally, this is the second federal gun conviction for Davis. He was convicted for being a felon in possession of a firearm in 2011 in the United States District Court for the Southern District of West Virginia. He was also convicted of first degree robbery in 2004 in Kanawha County Circuit Court.
Davis faces up to 10 years in federal prison when he is sentenced on November 1, 2017.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Career Criminal Sentenced to over 15 Years in Prison for Bank Robbery with A KnifeRead the Press Release
RENO, Nev. – A career criminal was sentenced on Tuesday to 188 months in prison for robbing a bank with a knife, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Tommy Ray McAdoo, 77, of Reno, pleaded guilty on April 17, 2017, to one count of bank robbery with the use of a dangerous weapon. United States District Judge Robert C. Jones presided over the sentencing hearing.
According to the indictment and court related documents, on Nov. 9, 2016, McAdoo entered a Nevada State Bank and showed a bank teller a demand note for money while holding a steak knife in his hand. The bank teller gave McAdoo four “bait bills” and an electronic tracker. He stole approximately $2,731. During a neighborhood canvas immediately following the robbery, law enforcement found discarded clothing and items that matched the video surveillance taken during the robbery. One of the items found was the demand note that was written on a casino sports betting sheet. Law enforcement identified McAdoo as a suspect and found him at a nearby casino. During an interview with law enforcement, McAdoo admitted to robbing the bank.
McAdoo has previously been convicted of multiple bank robberies. In 1981, he was convicted of two counts of armed bank robbery in Bakersfield, Calif., and an additional two counts of bank robbery in Las Vegas. He was then convicted of bank robbery again in 1990 in Seattle.
The case was investigated by the FBI and Reno Police Department. The case was prosecuted by Assistant U.S. Attorney Megan Rachow.
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Candia Man Convicted of Heroin Trafficking ChargeRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that a jury found Mark Gagnon, 54, of Candia, New Hampshire guilty of possessing heroin with the intent to distribute.
Testimony elicited at trial showed that during an ongoing wiretap investigation, investigators learned that on July 10, 2016, Gagnon and another person traveled from Manchester, New Hampshire to Lawrence, Massachusetts to pick up 50 fingers (approximately 500 grams) of heroin from a drug trafficking organization led by Alberto Guerrero Marte. Gagnon and his confederate met with Marte at a restaurant in Lawrence at approximately 10:00 p.m. on July 10, 2016. Gagnon retrieved a shopping bag containing three cans of tomato sauce from Marte’s vehicle. Gagnon placed the cans in his own vehicle and drove to New Hampshire. During a traffic stop of Gagnon’s vehicle, a drug detection dog alerted that the vehicle contained drugs. A search warrant was executed on the vehicle on July 11, 2016. Law enforcement officers opened the three cans of tomato sauce and found 51 fingers of heroin, weighing a little over 500 grams.
Gagnon will be sentenced on November 17, 2017. He faces a maximum of 20 years in prison and a fine of up to $1 million.
“We are dedicated to working with all of our law enforcement partners to stop the flow of heroin and other dangerous drugs into the Granite State,” said Acting U.S. Attorney Farley. “While those who suffer from addiction need to have access to treatment, those who seek to profit from the distribution of heroin will be held accountable for their actions. I commend the hard work of the law enforcement officers in this case. Their industriousness led to the seizure of a very significant amount of heroin before it could be sold on the streets of New Hampshire.”
"Opioid abuse is at epidemic levels in New Hampshire," said DEA Special Agent in Charge Michael J. Ferguson. "Heroin and fentanyl are causing overdose deaths across the Granite State in record numbers, and DEA is committed to aggressively pursue anyone who distributes these poisons in order to profit and destroy people's lives. This investigation demonstrates the strength and continued commitment of our local, state and federal partners and our strong relationship with the U.S. Attorney's Office."
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. This investigation was led by the Drug Enforcement Administration and also involved the following law enforcement agencies: Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case was prosecuted by Assistant U.S. Attorney Donald Feith.
Buffalo Man Pleads Guilty to Drug ChargesRead 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 Luis Diaz, 51, of Buffalo, NY, pleaded guilty to obtaining controlled substances through fraud, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between September 2014 and April 2015, co-defendant Brandon Coburn, a licensed nurse practitioner who was legally authorized to prescribe controlled substances, provided prescriptions that were not issued for legitimate medical purposes to Diaz and nine others. Diaz and the others filled the prescriptions, and then sold the drugs, which included fentanyl, oxycodone, oxymorphone, and amphetamine, on the street in the Buffalo area. Vazquez filled a total of 13 prescriptions.
To date, eight defendants charged in this investigation have been convicted. 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.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.
Sentencing is scheduled for November 20, 2017, at 12:30 p.m. before Judge Arcara.
Brazilian Woman Admits Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Carla Cristina De Paula, 39, of Brazil, pled guilty today to illegal re-entry into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
Paula, an alien citizen of both Brazil and Italy, was removed from the United States to Brazil on July 28, 2008, following a 2008 New Jersey felony conviction. On June 25, 2017, De Paula was arrested as she attempted to enter the United States from Canada as a passenger on a commercial bus, at the Champlain Port of Entry. De Paula admitted that she attempted to re-enter the United States without permission following the 2008 removal.
As a result of her conviction, De Paula faces up to 10 years in prison and a fine of up to $250,000 when she is sentenced by Senior U.S. District Judge Norman A. Mordue on November 1, 2017. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by United States Customs and Border Protection, Champlain, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Boston Man Pleads Guilty to Federal Firearms OffensesRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to federal firearms offenses.
Jeffrey Joseph, 32, pleaded guilty to one count of dealing in firearms without a license, one count of being a felon in possession of firearms and ammunition, and one count of being a prohibited person in possession of firearms and ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 23, 2017.
After an investigation into drug and firearms trafficking in the Bunker Hill Housing Authority in Charlestown, Joseph and three others, Samuel Jean, 22, of Everett; Deon Young, 32, of Hyde Park; and Troy Armstrong, 28, of Boston, were arrested on Dec. 1, 2016. According to court documents, during the investigation, a cooperating witness made controlled buys of guns and drugs at the direction of law enforcement. During the controlled purchases, which were recorded on video, Jean and Joseph sold seven firearms to the cooperating witness over a one-month period, including at least one stolen firearm. It is alleged that Young and Armstrong sold the cooperating witness two firearms around the same period, including one firearm with an obliterated serial number.
Jean pleaded guilty and was sentenced to two years in prison on March 2, 2017. Armstrong pleaded guilty in May 2017 and is scheduled to be sentenced on Sept. 6, 2017. Young pleaded not guilty and is awaiting trial.
The charge of dealing in firearms without a federal license provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charges of being a felon in possession of a firearm and an otherwise prohibited person in possession of a firearm provide for a sentence of no greater than 10 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 U.S. Attorney William D. Weinreb; Suffolk County District Attorney Daniel F. Conley; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney Lori Holik, Chief of Weinreb’s Major Crimes Unit, is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Attorney General Sessions Announces Opioid Fraud and Abuse Detection UnitRead the Press Release
Attorney General Jeff Sessions today announced the formation of the Opioid Fraud and Abuse Detection Unit, a new Department of Justice pilot program to utilize data to help combat the devastating opioid crisis that is ravaging families and communities across America.
Speaking at the Columbus Police Academy today, Attorney General Sessions said that the new Opioid Fraud and Abuse Detection Unit will focus specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to this prescription opioid epidemic.
Additionally, as part of the program, the Department will fund twelve experienced Assistant United States Attorneys for a three year term to focus solely on investigating and prosecuting health care fraud related to prescription opioids, including pill mill schemes and pharmacies that unlawfully divert or dispense prescription opioids for illegitimate purposes.
The following districts have been selected to participate in the program:
- Middle District of Florida,
- Eastern District of Michigan,
- Northern District of Alabama,
- Eastern District of Tennessee,
- District of Nevada,
- Eastern District of Kentucky,
- District of Maryland,
- Western District of Pennsylvania,
- Southern District of Ohio,
- Eastern District of California,
- Middle District of North Carolina, and
- Southern District of West Virginia.
In his speech, the Attorney General discussed the new program:
“First, I am announcing a new data analytics program – the Opioid Fraud and Abuse Detection Unit. I have created this unit to focus specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to this opioid epidemic. This sort of data analytics team can tell us important information about prescription opioids—like which physicians are writing opioid prescriptions at a rate that far exceeds their peers; how many of a doctor's patients died within 60 days of an opioid prescription; the average age of the patients receiving these prescriptions; pharmacies that are dispensing disproportionately large amounts of opioids; and regional hot spots for opioid issues.
“With this data in hand, I am also assigning 12 experienced prosecutors to focus solely on investigating and prosecuting opioid-related health care fraud cases in a dozen locations around the country where we know enforcement will make a difference in turning the tide on this epidemic. These prosecutors, working with FBI, DEA, HHS, as well as our state and local partners, will help us target and prosecute these doctors, pharmacies, and medical providers who are furthering this epidemic to line their pockets. These prosecutors will be based in several states across the country, including Kentucky, West Virginia, Tennessee, and right here in Southern Ohio.
“With these new resources, we will be better positioned to identify, prosecute, and convict some of the individuals contributing to these tens of thousands of deaths a year. The Department is determined to attack this opioid epidemic, and I believe these resources will make a difference.”
Full remarks as prepared for delivery are provided below:
Thank you Benjamin (Glassman) for that introduction, and more importantly, thank you for your 12 years of hard work at the Department to keep this community safe. And, of course, thank you to your Attorney General Mike Dewine. I know they care about these issues deeply. And Senator Portman, who couldn’t be with us today, but I know firsthand he has been a passionate and steadfast leader in the Senate about tackling the opioid problem for years.
I wanted to be here with you all today because Ohio is at the center of this drug crisis that is gripping our entire nation. This crisis affects all of us, but it is especially taking its toll on this community.
On average, one person in Columbus dies of a drug overdose every day.
And that pace is only accelerating. According to a survey of Ohio’s coroners, more than 4,000 Ohioans died of a drug overdose last year. And in Columbus, the coroner has already seen a 66 percent jump this year from the same time last year.
These aren’t just numbers. These are moms and dads. These are sisters, brothers, and grandchildren. These are neighbors and co-workers. These are friends. These are Americans.
Just last week, a two-year-old girl in Dayton was hospitalized for a suspected opioid overdose—two years old.
In 2015, more than 52,000 Americans lost their lives to drug overdoses. And the numbers we have for 2016 show another increase—a big increase. Based on preliminary data, nearly 60,000 Americans lost their lives to drug overdoses last year. That will be the highest drug death toll and the fastest increase in that death toll in American history. This is not a sustainable trend nor an acceptable America.
This crisis is being driven primarily by opioids—prescription drugs, heroin, and synthetic drugs like fentanyl.
According to the New England Journal of Medicine, we’re seeing more availability, higher purity, and lower price. They’re lacing heroin and cocaine with fentanyl—a drug 30 to 50 times more powerful than heroin. As a result, the drugs on the street are now more powerful, more addictive, and more dangerous than ever. And they’re not just dangerous for users: even being accidently exposed to just a few grains of fentanyl can kill a police officer or paramedic.
Sadly, this was almost the case just a couple months ago in East Liverpool, Ohio when Officer Chris Green brushed off a few grains of white powder from his shirt an hour after a traffic stop and fell to the floor. Luckily, he was in his squad room and they got to him immediately. As his police chief said, “if he would have been alone, he would have been dead.” Or imagine if he’d gone straight home that day to give his kids a hug? These are terrifying thoughts for our law enforcement.
To confront a crisis on this scale, we must take a comprehensive approach to the problem. There are three components: prevention, enforcement, and treatment.
Treatment is important. In some cases, treatment can help break the cycle of addiction and crime and help people get their lives back together.
But treatment alone is not enough. Treatment often comes too late. By the time many people receive treatment, they, their families, and communities have already suffered so much. The struggle to overcome addiction can be a long process – and it can fail. And not only can it fail, it very often fails.
In recent years, some of the government officials in this country have sent mixed messages about the harmfulness of drugs. We must not capitulate intellectually or morally to drug use. We must create a culture that is hostile to drug abuse. We know this can work. It has worked in the past for drugs, but also for cigarettes and seatbelts. A campaign was mounted, it took time, and it was effective. We need to send such a clear message now.
The Department of Justice has been working diligently to improve our prevention efforts. We are doing that through raising awareness, through drug take-back programs, and through DEA’s 360 Strategy program – Dayton was recently announced as a 2017 pilot city.
Prevention is what we at the Department do every day—because enforcement is prevention. Enforcing our laws helps keep drugs out of our country, decrease their availability, drive up their price, and reduce their purity and addictiveness.
DEA tells us that 80 percent of heroin addiction starts with prescription drug addiction. We must stop the abuse of prescription drugs.
Earlier this month, the Department announced the largest health care fraud takedown in American history. DOJ coordinated the efforts of more than 1,000 state and federal law enforcement agents to arrest more than 400 defendants. More than 50 of these defendants were doctors and have been charged with opioid-related crimes, which means this was also the largest opioid-related fraud takedown in American history.
And, just a week after we made that announcement, we announced the seizure and take down of AlphaBay— the largest dark net marketplace takedown in history. This site hosted some 220,000 drug sale listings and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13 year old in Utah.
These efforts build on the good work that U.S. Attorney Glassman and the Department have accomplished here. In late January, a doctor from New Albany, Ohio pled guilty to maintaining a clinic as a front for drug trafficking. He forfeited more than $29 million in seized assets from illegal drug trafficking.
A few months later, in April, a doctor from Portsmouth, Ohio, pled guilty to conspiring to distribute a controlled substance through a pain clinic. For six years, the clinic saw more than 20 patients a day, who each paid at least $200 in cash. At one point the defendant even opened her own dispensary at the clinic, so she could fill her own prescriptions for desperate patients.
These cases are beginning to roll in from all over the country.
On behalf of the Department, I want to say thank you to U.S. Attorney Glassman and everyone who worked on these cases. You have made this Department proud—and more importantly, you have made the people of Ohio safer.
And we can and must do more. Which is why today, we are announcing a new effort to target our federal resources against this epidemic. If you are a doctor illegally prescribing opioids for profit or a pharmacist letting these pills walk out the door and onto our streets based on prescriptions you know were obtained under false pretenses, we are coming after you. We will reverse these devastating trends with every tool we have.
First, I am announcing a new data analytics program – the Opioid Fraud and Abuse Detection Unit. I have created this unit to focus specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to this opioid epidemic. This sort of data analytics team can tell us important information about prescription opioids—like which physicians are writing opioid prescriptions at a rate that far exceeds their peers; how many of a doctor's patients died within 60 days of an opioid prescription; the average age of the patients receiving these prescriptions; pharmacies that are dispensing disproportionately large amounts of opioids; and regional hot spots for opioid issues.
With this data in hand, I am also assigning 12 experienced prosecutors to focus solely on investigating and prosecuting opioid-related health care fraud cases in a dozen locations around the country where we know enforcement will make a difference in turning the tide on this epidemic. These prosecutors, working with FBI, DEA, HHS, as well as our state and local partners, will help us target and prosecute these doctors, pharmacies, and medical providers who are furthering this epidemic to line their pockets. These prosecutors will be based in several states across the country, including Kentucky, West Virginia, Tennessee, and right here in Southern Ohio.
With these new resources, we will be better positioned to identify, prosecute, and convict some of the individuals contributing to these tens of thousands of deaths a year. The Department is determined to attack this opioid epidemic, and I believe these resources will make a difference.
And I issue a plea to all physicians, dentists, pharmacists: slow down. First do no harm.
These efforts will make all of us safer—and not just from the threat of drug addiction. They also help us reduce violence in our communities.
Drug trafficking is an inherently violent business. If you want to collect a drug debt, you can’t file a lawsuit in court. You collect it by the barrel of a gun.
By putting traffickers behind bars and reducing the supply of dangerous drugs, we will prevent much of the violence that is associated with drug dealing.
We also have to recognize that most of the heroin, cocaine, methamphetamine, and fentanyl in this country got here across our Southern border. Under President Trump’s strong leadership, the federal government is finally getting serious about securing our borders. Illegal entries are down 50 percent already and the wall has not even gone up.
We have also seen steep decreases in drug prices on the street. But the price we have paid as a country has only gone up. If you ask the economists, they’ll tell you that prescription opioid addiction costs our economy some $78 billion a year and other illicit drugs cost us another $193 billion a year. Remember, many of these drugs are paid for by private insurance, Medicaid, Medicare, and the VA. But what is even more devastating is the price we have paid in broken relationships, broken lives, and death rates the likes of which we have never seen before.
In the face of the worst drug crisis in our history, we need to use every lawful tool we have. But I’m convinced this is a winnable war. We will be calling on America’s great physicians and health care workers to take special care with addictive drugs. And in order to win, we are committing more Department of Justice resources to combat this epidemic, as well as continue to work to strengthen our partnerships with you—law enforcement on the front lines.
Let me ask you to do a simple thing: after every arrest for illegal possession of an illegal prescription, make every effort to get the arrestee to tell you where he or she got the drugs. We did that in Mobile and it led us to the two biggest sources in town. We need to hammer these illegal suppliers. You are ultimately the most effective resources that we as a country have in this effort. You have a tough job, but it’s a job worth doing.
But you can also know this: you have our thanks and this Department of Justice will always have your back. Thank you.
Atlanta Pain Clinic and its owner agree to pay $250,000 to resolve allegations that they violated the False Claims ActRead the Press Release
ATLANTA – Atlanta Medical Clinic (“AMC”), which is an Atlanta-based pain management clinic, and Dr. Timothy Dembowski (AMC’s owner), have agreed to pay the United States $250,000 to resolve allegations that they violated Medicare rules and the False Claims Act (“FCA”) by billing the Government for: (1) services performed by a physician suspended from the Medicare program, and (2) the administration of foreign, non-FDA approved drugs, which are not eligible for reimbursement under the Medicare program.
“To maximize their profits, AMC and Dr. Dembowski violated Medicare program rules, and then exacerbated their misconduct by submitting false claims to the Government,” said U.S. Attorney John Horn. “Pursuing this investigation and securing this settlement highlights our continued diligence in combating waste, fraud and abuse with respect to federal health care programs.”
“This monetary resolution to allegations that violate the False Claims Act hopefully sends a message to health care providers that we are determined to root out any attempt to take advantage of our federal health care programs,” said David LeValley, Special Agent in Charge of the FBI’s Atlanta Field Office. “Healthcare providers like Dr. Dembowski and AMC need to think twice before they so willfully, and illegally try to maximize their profits.”
“When physicians and health care companies provide patients with drugs not approved by the FDA and bill for services provided by those suspended from the Medicare program, they violate the basic trust that is extended to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG’s Atlanta Region. “Our agents continue to work with the Department of Justice to root out such fraud schemes, which undermine the public’s confidence in, and the financial well-being of, federal health care programs.”
A joint investigation conducted by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services - Office of the Inspector General, and the Federal Bureau of Investigation revealed evidence suggesting that AMC and Dr. Dembowski violated the FCA through two separate schemes involving the submission of fraudulent Medicare claims to the Government.
First, AMC and Dr. Dembowski claimed and received payment for medical services rendered by a physician that worked at AMC (“Physician 1”). However, these claims were fraudulent as Physician 1 previously was suspended from the Medicare program in June 2013 for making false statements and omissions regarding his criminal history. Due to his suspension, no services rendered by Physician 1 were eligible for Medicare reimbursement. Both AMC and Dr. Dembowski were aware of Physician 1’s suspension, and that he was thus ineligible to provide services to Medicare patients.
Nevertheless, AMC and Dr. Dembowski circumvented Physician 1’s Medicare suspension and received Medicare reimbursements for Physician 1’s services, by falsely and fraudulently describing – in claims submitted to the Government – services that had been performed by Physician 1 as services performed by a different AMC physician (“Physician 2”) that was authorized to participate in the Medicare program.
Second, AMC and Dr. Dembowski violated the FCA by: (1) obtaining a foreign, non-FDA approved knee treatment drug – i.e, Orthovisc– from a firm in Canada; (2) utilizing such drug on Medicare patients; and then (3) seeking and receiving reimbursement from Medicare.
However, Medicare does not cover the costs of foreign, non-FDA approved drugs, and AMC and Dr. Dembowski never informed Medicare that the invoices involved the administration of foreign, non-FDA approved drugs.
The claims asserted against AMC and Dr. Dembowski are allegations only, and there has been no determination of liability.
This matter was handled by Assistant U.S. Attorney Paris A. Wynn.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.