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17 July 2017
Canton Man Pleads Guilty to Federal Drug and Firearm OffensesRead the Press Release
BOSTON – A Canton man pleaded guilty today in federal court in Boston to five counts of drug and firearm charges.
Hollis Owens, 44, pleaded guilty to one count of being a felon in possession of ammunition and four counts of possession with intent to distribute cocaine. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Oct. 19, 2017.
In the spring of 2016, law enforcement officers investigating illegal distribution of cocaine in Framingham made several controlled purchases of cocaine from Owens. In April 2016, a search of Owen’s residence resulted in the seizure of approximately 18 grams of crack cocaine, a loaded Smith & Wesson 9mm hand gun, 114 rounds of various caliber ammunition and $1,869 in cash.
Owens is prohibited from possessing a firearm due to a prior state felony conviction.
The charge of being a felon in possession of ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession with intent to distribute provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb 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 Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.
Buffalo Man Indicted for Selling Deadly “Heroin” Mixture That Resulted in Two DeathsRead 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 a federal grand jury has returned an eight-count indictment charging Aaron J. McDuffie, aka “G”, 22, of Buffalo, NY, with possessing with intent to distribute and distributing quantities of heroin, fentanyl, butyryl fentanyl, and furanyl fentanyl, and possessing a firearm in furtherance of drug trafficking crimes. Notably, two of the distribution counts against the defendant allege that defendant’s drug sales resulted in serious bodily injury and death to two of his customers who overdosed and died from the drugs that McDuffie sold them. The drug charges carry a mandatory minimum penalty of 20 years in prison, a maximum of life, and a $1,000,000 fine, while the firearm charge brings with it a mandatory consecutive term of five years in prison.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the indictment and a previously filed complaint, on June 27, 2015, at approximately 10:08 p.m., the Cheektowaga Police and the Forks Volunteer Fire Company responded to a possible drug overdose at an address in Cheektowaga. That individual, identified as A.E., eventually died of acute combined butyryl fentanyl and morphine intoxication. A search of A.E.’s cell phone helped to identify defendant as the person who sold him the drugs on the night he overdosed. Further investigation by investigators from the Cheektowaga Police Department revealed that defendant changed his telephone number following the overdose death as defendant had admitted to another customer that he had given A.E. some highly potent heroin and that he warned A.E. not to use as much.
In late November of 2016, the West Seneca Police responded to an overdose death of an individual identified as D.M. in their jurisdiction. Subsequent investigation conducted by the West Seneca Police Department and the Drug Enforcement Administration eventually identified the defendant as the individual who, on November 23, 2016, distributed the fatal mixture of fentanyl, butyryl fentanyl, and furanyl fentanyl to D.M.
“Since 1975, approximately 5,000 Americans have been killed by terrorists,” said Acting U.S. Attorney James. P. Kennedy, Jr. “In 2015 alone, more than 10 times that number of Americans—over 50,000—died of drug overdoses, and that number is on the rise. As prosecutors, we took an oath to enforce the law and protect society. From doctors and healthcare professionals who violate their oath by prescribing these poisons without a legitimate medical purpose, to street-level distributors, such as McDuffie, who are out to make a few bucks on the lives of others, this Office remains resolute in our effort to do all that we can to bring these law-breakers to justice and to eliminate the threat they present.”
DEA Special Agent-in-Charge James J. Hunt stated: "Indictments and arrests cannot erase the result of fatal overdoes, but they do send a succinct message to traffickers that the consequences of their actions will be accounted for and they shall be brought to justice. DEA will continue to focus our resources on targeting and dismantling drug trafficking organizations pushing lethal combinations of heroin and fentanyl onto our streets and into addicts’ hands.”
On November 30, 2016, defendant was arrested on a federal criminal complaint and a search warrant was executed at his Buffalo residence. Defendant has remained in custody since November 30th. The defendant was arraigned this morning before U.S. Magistrate Judge Michael J. Roemer, and he continues to be detained.
The indictment is result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Cheektowaga Police Department, under the direction of Chief David Zack; and the West Seneca Police Department, under the direction of Chief Daniel Denz.
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.
Armed Career Criminal Caught in Undercover Sting Sentenced to 15 YearsRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Keith Ford (40, Gainesville) to 15 years in federal prison for possessing a firearm as a convicted felon. He pleaded guilty on August 30, 2016.
According to court documents, on May 11, 2016, Ford and a co-defendant went to a warehouse parking lot in Jacksonville where they expected to help drug dealers offload a large shipment of marijuana. Ford and his co-defendant had previously agreed to bring firearms to the location and provide protection for the drug dealers. Once they arrived at the location, the dealers, who were actually undercover law enforcement agents, asked Ford and his co-defendant to put their guns in the trunk of a car. After the two firearms were secured, the defendants were arrested.
At the time of the offense, Ford was a convicted felon and therefore is prohibited from possessing a firearm or ammunition under federal law. Due to his three prior convictions for selling cocaine, he qualified for an increased penalty as an Armed Career Criminal.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Appeals Court Upholds Eight-Year Prison Sentence for Man Who Involved Children in Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals today affirmed the 96-month prison sentence imposed by Senior U.S. District Court Judge Richard P. Conaboy on Carlos Cruz, age 49, who used three of his children to help him distribute heroin and cocaine in Monroe and Wayne Counties during 2011-2014.
According to United States Attorney Bruce D. Brandler, Cruz, who resided in Wayne and Monroe Counties at the time of the offense and later moved to Florida, claimed on appeal that Judge Conaboy should have imposed a lesser sentence based on certain of Cruz’s personal characteristics.
In affirming the sentence, the Third Circuit Court rejected Cruz’s arguments and noted that Judge Conaboy appropriately considered the relevant sentencing factors in imposing a sentence in the middle of the applicable guideline range.
The Third Circuit Court noted that Judge Conaboy appropriately “highlighted the distinct role that Cruz played in the illicit enterprise.” “Cruz,” noted the Court, “was the leader of the criminal activity, and his co-defendants were his children.” Judge Conaboy, the Third Circuit Court further noted, “explained that Cruz had taught his family to disrespect the law.”
Cruz previously pleaded guilty to conspiring with his children and others from Monroe and Wayne Counties, to distribute heroin and cocaine. Brandon Cruz, Tiffanyann Cruz, and Rubie Cruz also pleaded guilty to participating in the conspiracy.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, the Wayne County District Attorney’s Office, and Pocono Mountain Regional Police. Assistant United States Attorney Francis P. Sempa prosecuted the case and handled the appeal.
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.
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Albuquerque Man Pleads Guilty to Drug Trafficking Charge Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 66 of the 104 defendants charged as the result of this investigation have entered guilty pleas and 29 of them have been sentenced.
Davon Johnson, 44, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge. Under the terms of his plea agreement, Johnson will be sentenced to five years in prison followed by a term of supervised release to be determined by the court.
Johnson is one of 104 individuals who were charged as the result of the investigation that began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Johnson was arrested on July 6, 2016, on an indictment charging him with distribution of MDMA on Jun 9, 2016, in Bernalillo County, N.M. During today’s proceedings, Johnson pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Johnson admitted that on June 9, 2016, he sold approximately 100 pills containing methamphetamine to another individual in exchange for money. Johnson remains in custody pending a sentencing hearing which has yet to be scheduled.
The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF and is being prosecuted by Assistant U.S. Attorney Presiliano Torrez
Albuquerque Felon Pleads Guilty to Unlawful Possession of One Round of AmmunitionRead the Press Release
ALBUQUERQUE – Steven Morales, 38, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by unlawfully possessing a round of ammunition. At sentencing, Morales faces a maximum penalty of ten years of imprisonment unless the court determines that he is an armed career criminal. In that event, Morales will face an enhanced sentence of a statutory mandatory minimum penalty of 15 years in prison and a maximum of life imprisonment.
Morales is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Morales was arrested in July 2015, on an indictment charging him with being a felon in possession of ammunition on Jan. 28, 2015 in Bernalillo County, N.M. According to the indictment, Morales was prohibited from possessing firearms or ammunition because of his numerous felony convictions. According to court filings, Morales has at least five felony convictions for offenses involving burglary, larceny, criminal damage, receiving stolen property, escape from jail, possession of methamphetamine, disarming a police officer, and aggravated fleeing a law enforcement officer.
During today’s proceedings, Morales pled guilty to the indictment without the benefit of a plea agreement. Morales remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service and the Bernalillo County Sheriff’s Department. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
14 July 2017
“Pimp” Sentenced to 293 Months in Federal Prison in Child Sex Trafficking CaseRead the Press Release
LUBBOCK — Dimitrise Lyghts, 23, of Lubbock, was sentenced by U.S. District Judge Sam R. Cummings to 293 months in federal prison, following his guilty plea in March 2017 to one count of sex trafficking of a child related to his pimping a 15-year-old girl in Lubbock, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
In addition, at Friday’s sentencing hearing, Judge Cummings ordered that following his custody sentence, Lyghts must serve a 10-year term of supervised release. He must also register as a lifetime sex offender.
Co-defendant Marcelia Sanchez pleaded guilty in November 2016 to one count of conspiracy to engage in sex trafficking of a minor. Judge Cummings sentenced Sanchez in February 2017 to 60 months in federal prison.
“Make no mistake, the horrific crime of trafficking young girls for sex resides in the dark underbellies of even our best communities,” said U.S. Attorney Parker. “Together, we can get survivors the help they deserve, and ensure that traffickers who prey on the most vulnerable among us get the sentences they deserve.”
According to documents filed in the case, in late May 2016, Lyghts contacted a 15-year-old female, “K.M.,” by phone and by Facebook, suggesting that they could “hang out.” On June 3, 2016, Lyghts and a friend of his picked up K.M. and another girl at an apartment in Lubbock. Lyghts provided drugs to K.M., and asked her if she would run an ad on Backpage so they could get a hotel room. She agreed to do it once, and Lyghts ran an ad on K.M. in Backpage. Shortly after the ad was run in Backpage, Lyghts arranged with a man who called in response to the ad, for the man to pick up K.M. and take her to a motel in Lubbock. K.M. was picked up, as had been agreed, and went to the motel with the man, where they engaged in sexual intercourse for the payment of a fee.
Between June 3 and June 7, 2016, K.M., with the assistance and direction of Lyghts and Sanchez, was transported and provided for several male “customers” to engage in commercial sex acts. On several occasions, Lyghts received the payment made for the sex acts performed by K.M. Lyghts also personally drove K.M. to various meetings with men for the purpose of K.M. engaging in commercial sex acts with the men.
Project Safe Childhood (PSC) is a Department of Justice initiative that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The Federal Bureau of Investigation and the Lubbock Police Department investigated the case.
Assistant U.S. Attorney Steve Sucsy was in charge of the prosecution.
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Williamsport Man Sentenced to 15 Years’ Imprisonment for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Larry Eason a/k/a “Tree,” age 34, of Renovo, Pennsylvania, was sentenced on July 12, 2017, to 15 years’ imprisonment by United States District Court Judge Matthew W. Brann for conspiracy to distribute 1,000 grams or more of heroin.
According to United States Attorney Bruce D. Brandler, Eason pled guilty in December 2016, to conspiracy to distribute 1,000 grams or more of heroin. One thousand grams of heroin is the equivalent of approximately 40,000 individual doses of potentially fatal heroin. Judge Brann found that from January 2014 through March 2015, Eason managed and supervised more than five participants in a conspiracy to distribute heroin, crack cocaine, cocaine, MDMA, and prescription pills, including oxycodone, to drug users and sellers in Williamsport and Lycoming, and Clinton Counties. The conspirators used mobile phones, social media, four addresses in Williamsport, and multiple motor vehicles to carry out drug distribution activities. The conspirators also bought, sold, traded, and possessed firearms in exchange for cash and controlled substances and to facilitate the distribution of controlled substances.
In addition to the prison term, Judge Brann also ordered that a probation officer supervise Eason for five years following his release from prison, and pay a $1,500 fine.
Judge Brann also ordered a forfeiture money judgment in the amount of $1 million.
The case was investigated by the Federal Bureau of Investigation with substantial support and assistance from the Lycoming County District Attorney’s Office, the Old Lycoming Township Police Department, the Williamsport Bureau of Police, the Northumberland-Montour County Drug Task Force, the United States Marshals Service and the Pennsylvania State Police. Assistant United States Attorney George J. Rocktashel 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 to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Wilkes-Barre Men Charged in Running Meth LabRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mark Heath, age 38 and Shawn Melleski, age 26, both of Wilkes-Barre, Pennsylvania, were indicted on July 11, 2017, by a federal grand jury for methamphetamine trafficking offenses.
The indictment was unsealed on July 13, 2017, following Melleski’s arrest. Heath’s arraignment is scheduled for July 18, 2017, before United States Magistrate Judge Karoline Mehalchick. Melleski was arraigned by Magistrate Judge Mehalchick on July 13, 2017, and was ordered detained pending trial.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Heath and Melleski possessed with the intent to distribute more than 50 grams of methamphetamine in June 2017.
The charges stem from an investigation by the Federal Bureau of Investigation, the Wilkes-Barre Police Department, the Kingston Police Department and the Pennsylvania State Police. Assistant United States Attorney Evan Gotlob is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The defendants are facing a mandatory minimum of five years and maximum of 40 years in prison and a $5,000,000 maximum fine and lifetime maximum supervised release. 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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W. Warwick Resident Admits to Drug Trafficking, Bank FraudRead the Press Release
PROVIDENCE – Christian M. Domenech, 24, of West Warwick, pleaded guilty today to federal heroin, cocaine and crack cocaine trafficking charges and to bank fraud, announced Acting United States Attorney Stephen G. Dambruch; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
A co-defendant in this matter, Robert Wilkins, 25, of West Warwick has agreed to plead guilty in this matter, and is scheduled to appear in U.S. District Court for a change-of-plea hearing on July 28, 2017.
Appearing before U.S. District Court Chief Judge William E. Smith today, Domenech pleaded guilty to one count of conspiracy to deliver heroin; three counts of delivery of heroin; fifteen counts of delivery of crack cocaine; one count of possession with the intent to distribute heroin; one count of possession with the intent to deliver cocaine; one count of possession with the intent to deliver crack cocaine; and one count of bank fraud.
Domenech is scheduled to be sentenced on October 20, 2017.
According to court documents, a three-month investigation by the FBI Safe Streets Task Force into Domenech and Wilkins’ alleged drug trafficking activity included numerous purchases from the defendants of between one gram and seven grams of crack cocaine and heroin for between $80 dollars and $350 dollars. Each alleged transaction was monitored by law enforcement.
Additionally, according to court documents, a Rhode Island State Police Financial Crimes Unit investigation determined that beginning in December 2015, the defendants allegedly created and deposited bogus checks into bank accounts each established, and withdrew some of those funds. It is alleged that Christian Domenech deposited a total of $10,000 in bogus checks and withdrew $2,000 in cash. It is alleged that Robert Wilkins deposited a total of $10,000 in bogus checks and withdrew at total of $2,099.55.
On July 12, 2016, FBI Safe Street Task Force agents, with the assistance of the West Warwick Police Department and the DEA, executed a court authorized search of the defendants’ Church Street, West Warwick residence. Varying quantities of cocaine, crack cocaine, and heroin were seized, along with approximately $800 in cash. Law enforcement also seized two vehicles.
Domenech and Wilkins have been detained since their arrest.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, and Central Falls Police Departments and the Rhode Island Department of Corrections.
Acting United States Attorney Stephen G. Dambruch; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police thank the West Warwick Police Department and the DEA for their assistance in the investigation of this matter.
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Virginia Man Sentenced for Felon in Possession of FirearmsRead the Press Release
ALEXANDRIA, Va. – Yusuf Abdirizak Wehelie, 26, of Burke, was sentenced today to 10 years in prison for possession of firearms by a convicted felon.
Wehelie pleaded guilty on Nov. 15, 2016. According to the statement of facts filed with the plea agreement, In December 2015, Wehelie met with an FBI undercover employee (UCE #1) and engaged in a consensually recorded conversation. During the conversation, Wehelie discussed his background and told UCE #1 he was a felon, referring to his felony conviction for burglary in Fairfax County. As a convicted felon, Wehelie is prohibited from owning, possessing, or transporting firearms. In January 2016, UCE #1 asked Wehelie if he would be willing to move firearms and he willingly agreed to do so.
According to the statement of facts filed with the plea agreement, in February 2016, during a consensually recorded meeting, Wehelie met with an FBI undercover employee (UCE #2) in Baltimore. UCE #2 showed Wehelie four 9mm automatic pistols with can-style suppressors and eight 20-round magazines. Unbeknownst to Wehelie, the four pistols had been rendered inoperable before they were provided to him. UCE #2 informed Wehelie that the firearms had the ability to fire up to 1,200 rounds per minute in fully automatic mode. Wehelie told UCE #2 he had fired a weapon before but “needs more practice.” After viewing, handling, and being fully advised of the firearms’ capabilities, Wehelie concealed all four firearms in towels, and then loaded them into a duffle bag. Wehelie was paid $300 by UCE #1 for transporting the firearms.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. This case was investigated by the FBI’s Joint Terrorism Task Force. Assistant U.S. Attorney John T. Gibbs and Special Assistant U.S. Attorney Brandon L. Van Grack prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-162.
Violent Savannah Resident Pleads Guilty to Federal Gun ChargeRead the Press Release
Savannah, GA – DeVonte Shyheem Green, 23, from Savannah, Georgia, pled guilty earlier this week before Senior U.S. District Court Judge William T. Moore, Jr. for possessing a firearm in furtherance of drug trafficking. Green remains in U.S. Marshal custody and will be sentenced after the U.S. Probation Office completes a presentence investigation.
According to the evidence presented during the guilty plea hearing, a State arrest warrant was issued for Green in connection with his possession of multiple firearms, drugs and digital scales. On March 31, 2017, officers with Savannah-Chatham Metropolitan Police Department (SCMPD) attempted to arrest Green on the outstanding warrant, but Green fled from the police. After a chase, Green was eventually arrested. Yet again, Green was found to be in possession of another firearm, more drugs, and another digital scale. Despite only being 23 years of age, Green has been involved in multiple prior incidents involving firearms or shootings, including a 2015 incident in which Green shot at a car full of people. Green pled guilty to the 2015 shooting incident, but he was given status under Georgia’s First Offender Act.
Under his federal guilty plea, Green faces a mandatory minimum of 5 years in prison and maximum of life. There is no parole in the federal system. Green also faces a fine up to $250,000 and 5 years of supervised release upon release from prison.
Acting U.S. Attorney James Durham said, “Most of the violent crime in Savannah is committed by a small number criminals. We’re working closely with SCMPD, the District Attorney’s Office and our federal partners to remove those violent criminals like Mr. Green from our community.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: “One of the more significant components of law enforcement’s approach toward reducing the spread of violent crime is to aggressively deal with those with firearms who, through prior criminal conduct, shouldn’t have them. That is the case with Mr. Green. Mr. Green’s guilty plea is a direct result of a combined law enforcement effort by the FBI’s Southeast Georgia Violent Crime Taskforce, whose overall mission is to make the community in which it serves a safer place to live.”
The charges against Green resulted from an investigation led by the FBI’s Southeast Georgia Violent Crime Taskforce, an interagency partnership dedicated to attacking gangs and violent crime in Savannah and the surrounding communities. Assistant United States Attorney Brian T. Rafferty prosecuted the case for the Government. For questions, please contact the U.S. Attorney’s Office at (912) 201-2522.
Two Sent to Prison for Sex Trafficking of MinorsRead the Press Release
HOUSTON – A Houston man and woman have been ordered to federal prison following their convictions of conspiracy to commit sex trafficking of minors and sex trafficking of minors, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Jazsmine Arielle Joseph, 28, on Sept. 2, 2016, following a week-long trial and approximately six hours of deliberation. Co-defendant Xavier Cooper, 32, had previously pleaded guilty.
Today, U.S. District Judge David Hittner handed both defendants 262-month prison sentences. They were further ordered to serve five years of supervised release following completion of the prison terms, during which time he will have to comply with numerous requirements designed to restrict his access to children. Both will also be ordered to register as a sex offender.
During the trial, the jury ultimately found Joseph engaged in a conspiracy with Cooper between October 2014 through March 2015, in which they engaged in conspiracy to entice, transport and harbor a minor female to engage in commercial sex. Joseph paid for and directed the posting of prostitution ads online. Joseph also rented hotel rooms where the minor engaged in commercial sex acts.
The jury heard that the minor engaged in numerous commercial sex acts over the course of the conspiracy culminating with her recovery during a highly publicized sting operation on March 31, 2015. At trial, Joseph claimed she was “just helping a friend” in regard to her renting the hotel room and assisting with the posting of the prostitution ads. The jury also heard about and viewed text messages between Joseph and Cooper discussing the minor victim. The texts discussed making sure the victim was ready to receive customers and when customers were on their way.
Joseph attempted to convey her innocence by testifying she was trying to help the victim and protect her from Cooper. The jury was not convinced and found her guilty on both counts.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Department of Public Safety investigated with the assistance of the FBI. Assistant U.S. Attorneys Kimberly A. Leo and Sherri L. Zack 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."
Two Richland County Women Indicted on Methamphetamine Related ChargesRead the Press Release
Vickie L. Sanders, 56, and Kylee D. Black, 34, both of Olney, Illinois, were indicted on July 12, 2017, on methamphetamine related charges in a seven count indictment returned by a federal grand jury, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Count One charges that from on or about 2015, until on or about April 21, 2017, in Richland County, Sanders and Black conspired with others known and unknown to the Grand Jury to knowingly and intentionally manufacture 50 grams or more of methamphetamine.
Count Two charges that on April 21, 2017, in Richland County, Sanders knowingly and intentionally attempted to manufacture methamphetamine.
Counts Three through Six charges that Sanders and Black knowingly and intentionally possessed Pseudoephedrine knowing that the Pseudoephedrine would be used to manufacture methamphetamine. The dates involved were December 21, 2016 (Count Three), December 15, 2015 (Count Four), September 30, 2015 (Count Five), and April 3, 2015 (Count Six).
Count Seven charges that on May 14, 2017, in Richland County, Black knowingly and intentionally distributed methamphetamine.
With respect to Count One, Sanders and Black each face 5-40 years of imprisonment, up to a $5,000,000 fine, and supervised release of not less than four years.
With respect to Count Two, Sanders faces up to 20 years of imprisonment, up to a $1,000,000 fine, and supervised release not less than three years.
With respect to each of the Counts Three through Six, Sanders and Black face up to 20 years of imprisonment, up to a $250,000 fine, and supervised release up to three years.
With respect to Count 7, Black faces up to 20 years of imprisonment, up to a $1,000,000 fine, and supervised release not less than three years.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
Two New Bedford Men Sentenced for Heroin TraffickingRead the Press Release
BOSTON – Two New Bedford residents were sentenced yesterday in federal court in Boston for their roles in a wide-ranging conspiracy that distributed heroin throughout Bristol County, Mass., and Providence, R.I.
Eric Desousa, 26, and Tyson Depina, 40, were sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to three years in prison and four years of supervised release and six years in prison and four years of supervised release, respectively. In April 2017, Desousa pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin and three counts of possession of heroin with the intent to distribute; and Depina pleaded guilty to conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and three counts of possession of heroin with the intent to distribute.
In the spring of 2016, Depina began receiving heroin from Desousa. On April 14, 2016, investigators watched Desousa distribute heroin to Depina. Depina was arrested after the sale, but during the arrest process, Depina fled and attempted to destroy the drugs. An officer in pursuit of Depina became covered in the heroin that Depina attempted to destroy, and was taken to the hospital as a result. A subsequent lab test confirmed that the heroin seized from Depina was a mixture of heroin and fentanyl, a drug that is deadly to touch or inhale, and for which only two milligrams can be lethal.
On June 6, 2016, investigators watched as Desousa attempted to deliver heroin to a customer in New Bedford. Desousa was arrested and a search of his home in New Bedford resulted in the seizure of nearly 300 grams of a mixture of heroin and fentanyl and more than $8,000 in cash.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Fall River Police Chief Daniel S. Racine; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Two More Sentenced and Four More Plead Guilty to Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 65 of the 104 defendants charged as the result of this investigation have entered guilty pleas and 29 of them have been sentenced.
The following Albuquerque residents recently entered guilty pleas in federal court in Albuquerque, N.M.:
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Brandon Jason Hunt, 27, pled guilty to cocaine trafficking charges on July 6, 2017. Under the terms of his plea agreement, Hunt will be sentenced to a year and a day in prison. However, if the court determines that Hunt is a career offender, he will be sentenced to 96 months in prison.
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Margarito Ruiz, 36, pled guilty to methamphetamine trafficking charges on July 6, 2017.
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Cody Jones, 32, and Dustin Swint, 30, each pled guilty to methamphetamine trafficking charges on July 13, 2017.
In addition, the following two Albuquerque residents were sentenced:
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Mikai Cropsey, 42, was sentenced on July 11, 2017, to 51 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
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Adrian D. Hammond, 30, was sentenced on July 13, 2017, to 36 months in prison followed by three years of supervised release for being a felon in possession of a firearm.
These six defendants were amongst the 104 who were charged as the result of the investigation that began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Hunt was arrested in Oct. 2016, on an indictment charging him with distributing cocaine on May 5, 2016, and June 1, 2016, and being a felon in possession of a firearm on May 19, 2016. Hunt was prohibited from possessing firearms or ammunition because of his prior felony convictions for aggravated battery with a deadly weapon and attempt to commit an aggravated burglary. According to the indictment, Hunt committed the offenses in Rio Arriba County, N.M. On July 6, 2017, Hunt pled guilty to distributing cocaine and admitted that on May 5, 2016, he distributed cocaine to an undercover law enforcement agent. A sentencing hearing is currently scheduled for Oct. 5, 2017.
Hunt was arrested in Jan. 2017, on an indictment charging him with distributing methamphetamine on May 23, 2016, and being a felon in possession of a firearm on May 25, 2016. was prohibited from possessing firearms or ammunition because of his prior felony convictions for possession of a controlled substance and shoplifting. According to the indictment, committed the offenses in Bernalillo County, N.M. On July 6, 2017, pled guilty to a methamphetamine trafficking charge, and admitted that on May 23, 2016, he distributed approximately two ounces of methamphetamine to an undercover law enforcement agent. At sentencing, faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
Jones and Swint were arrested in Aug. 2016, on an indictment charging the two men with participating in a methamphetamine trafficking conspiracy and distributing methamphetamine on May 16 and 17, 2016. The indictment also charged Jones alone with distributing methamphetamine on June 6, 2016, June 7, 2016, and June 15, 2016. According to the indictment, Jones and Swint committed the crimes in Bernalillo County. On July 13, 2017, Jones and Swint each pled guilty to methamphetamine trafficking charges and admitted that on May 17, 2016, they conspired to distribute approximately two ounces of methamphetamine to an undercover law enforcement agent. At sentencing, Jones and Swint each face a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. Sentencing hearings have yet to be scheduled.
Cropsey and his codefendant Bernadette Aurora Tapia, 49, also of Albuquerque, were arrested in Aug. 2016, on an indictment charging them with conspiracy and distribution of methamphetamine on June 14, 2016, in Bernalillo County. On Dec. 22, 2016, Cropsey pled guilty to conspiracy and admitted that on June 14, 2016, he agreed with another person to sell methamphetamine to a person Cropsey believed was a drug customer.
Hammond was charged in a criminal complaint on June 27, 2016, with being a felon in possession of a firearm and ammunition on June 26, 2016, in Bernalillo County. Hammond was subsequently indicted on the same charge on July 12, 2016. According to the indictment, Hammond was prohibited from possessing firearms or ammunition because of his prior felony convictions for theft by taking, obstruction of law enforcement officer, being a felon in possession of a firearm, false imprisonment and aggravated assault with a deadly weapon. On April 12, 2017, Hammond pled guilty to the indictment and admitted that he was prohibited from possessing firearms or ammunition on June 26, 2016, because of his status as a convicted felon.
The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case against Hunt. Assistant U.S. Attorney Eva M. Fontanez is prosecuting the case against Ruiz. Assistant U.S. Attorney Rumaldo A. Armijo is prosecuting the case against Jones and Swint. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case against Cropsey. Assistant U.S. Attorney Presiliano Torrez prosecuted the case against Hammond.
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Two KC Residents Plead Guilty to K2 Conspiracy, Must Forfeit $10.5 MillionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that two former Kansas City, Mo., residents pleaded guilty in federal court today to their roles in a $10.5 million conspiracy to distribute synthetic cannabinoids, commonly referred to as K2, to customers nationwide.
Derek A. Williams, 35, and Ashli Adkins, 31, both of Laguna Beach, Calif., but formerly of Kansas City, each pleaded guilty before U.S. District Judge Stephen R. Bough to one count of conspiracy to mislead by causing the introduction of misbranded drugs into interstate and foreign commerce and one count of conspiracy to commit money laundering.
Williams and Adkins admitted they sold at least 2,000 kilograms of synthetic cannabinoids during the conspiracy. Under the terms of today’s plea agreement, Williams and Adkins must forfeit to the government their Laguna Beach residence, a $10.5 million money judgment (including nearly $3.4 million seized by federal agents during the investigation), a 2011 Ford F-150, a Glock 9mm pistol, a Walther .22-caliber pistol, a Mossberg 12-gauge shotgun and a Bushmaster .223-caliber rifle.
Williams and Adkins admitted that they participated in a conspiracy to market synthetic cannabinoids, which were misbranded drugs because their labeling was false and misleading, from March 1, 2011, to Nov. 27, 2012.
Labeling identified the products as “incense,” and “not for human consumption,” and failed to bear adequate directions for use. Synthetic cannabinoid products were packaged in foil packets and sold at retail establishments throughout the United States under the brand name “SynIncense.” Williams and Adkins admitted they used the term “incense” in the product brand name when, in fact, his “SynIncense” products were synthetic cannabinoids intended for consumption in order to obtain a physiological effect of a “high.”
Each of the synthetic cannabinoid products was misbranded in at least one of the following respects:
a. The synthetic cannabinoid products’ labeling did not bear adequate directions for use;
b. The synthetic cannabinoid products had false and misleading labeling in that they were labeled in a manner indicating they were not for human consumption when, in fact, the synthetic drugs were intended for human consumption; and
c. The synthetic cannabinoid products did not bear a label containing the name and place of the business, the manufacturer, packer or distributor.
Williams and Adkins sold synthetic cannabinoids to an unindicted co-conspirator doing business as Main Stop in Neosho, Mo., who then resold the misbranded drugs to consumers. They also shipped or transported misbranded synthetic cannabinoids to another unindicted co-conspirator, doing business at the website Commonscents.com, who then resold the misbranded drugs to consumers.
Williams and Adkins also admitted that, from March 1, 2011, to July 8, 2012, they participated in a money-laundering conspiracy that involved financial transactions of funds derived from criminal activity.
Williams and Adkins are among four defendants who have pleaded guilty in this case. Co-defendant Daniel R. Williams, 31, of Kansas City, was sentenced to three years in federal prison without parole. Co-defendant Charidy Blankenship, 31, of Kansas City, has also pleaded guilty and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly and Special Assistant U.S. Attorney Matt Moeder. It was investigated by the U.S. Drug Enforcement Administration and IRS-Criminal Investigation.
Tobacco Distributor Sentenced for Multi-Million Dollar Tax Evasion SchemeRead the Press Release
BOSTON – A Hopkinton man was sentenced today in federal court in Boston for evading federal income taxes and defrauding the Commonwealth of Massachusetts of millions of dollars in connection with the sale of cigarettes and other tobacco products.
Raza Ali, 56, of Hopkinton, was sentenced by U.S. District Court Judge William G. Young to a year and a day in prison and two years of supervised release. Ali was also ordered to pay a fine of $30,000; restitution to the Commonwealth of Massachusetts in the amount of $28,072,946; and forfeit all property involved in the offense, including a warehouse-full of tobacco products and over $160,000 seized during the investigation. In May 2016, Ali pleaded guilty to one count of conspiring to commit wire fraud and launder money and one count of making a false statement on a federal income tax return. In December 2015, Ali was arrested and charged with co-conspirators Kaleem Ahmad and Muhammad Saleem Iqbal.
Ali, Iqbal and Ahmad operated a wholesale business under the names “Pick N Dip” and, later, “MSI Distributors” in Norwood, Mass., that sold tobacco products, including cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), to convenience stores, gas stations and other retail businesses.
Wholesalers of smokeless tobacco are licensed by the Massachusetts Department of Revenue and must file an excise tax form monthly and pay excise tax on smokeless tobacco brought into and sold in Massachusetts. Cigar and smoking tobacco wholesalers must file an excise tax form quarterly and pay excise tax on cigars and smoking tobacco brought into and sold in Massachusetts.
In order to evade tobacco taxes, the defendants repeatedly purchased tens, and sometimes hundreds of thousands, of dollars at a time of smoking tobacco, smokeless tobacco and cigars in Pennsylvania, where no taxes are imposed on these products. They then covertly transported the products to Massachusetts for resale without filing the reports required by state and federal law and without paying excise taxes.
Ali, Iqbal and Ahmad accepted payments for the tobacco products primarily in cash. They made and directed multiple bank deposits of cash from the business in amounts less than $10,000 to create the false appearance that the total amount being deposited fell below the amount they knew that banks were required to report to the U.S. Treasury Department. They then repeatedly transported cash in excess of $50,000 at a time generated by the sale of untaxed cigars, smoking tobacco and smokeless tobacco products in Massachusetts to Pennsylvania, where the money was used to purchase additional untaxed tobacco products.Ahmad was sentenced to two years in prison and Iqbal was sentenced to 42 months in prison.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and David W. Hall, Special Agent in Charge of the Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. The Norwood Police Department provided valuable assistance in the investigation. Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit prosecuted the case.
Surgical Practice Office Manager’s Boyfriend Sentenced to Nearly 6 Years in Prison for Embezzlement ConspiracyRead the Press Release
BIRMINGHAM – A federal judge this week sentenced a Mississippi man to nearly six years in prison for conspiring with his girlfriend to steal more than $1 million from the Birmingham surgical practice where she worked, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.
U.S. District Court Judge Madeline Hughes Haikala sentenced ANTHONY T. MICHAEL, 43, of Jackson, Miss., to five years and 10 months in prison for conspiracy, bank fraud and aggravated identity theft. Michael pleaded guilty to the charges in March. The judge ordered him to pay $1.2 million in restitution and to forfeit the same amount to the government as proceeds of illegal activity.
Michael conspired with Anntwine Moss, 51, of Bessemer, to steal from Thoracic and Cardiovascular Surgery of Alabama between 2006 and 2013. Moss was office manager for the practice during that time and she and Michael were romantically involved.
U.S. District Court Judge Karon O. Bowdre sentenced Moss in May to three years and five months in prison on five counts of wire fraud and four counts of tax evasion in the case. The judge ordered Moss to pay $987,375 in restitution to the practice and to forfeit the same amount to the government.
According to court documents, Moss stole from the surgical practice by using her authority as office manager to write unauthorized checks to herself and to Michael, make unauthorized direct deposits into her account, and use the company's credit cards for unauthorized personal purchases for herself and Michael. Moss had authority over several key functions at the surgical practice including payroll, accounting, bookkeeping and managing the office's budget. She falsified her personal tax returns for several years by failing to report to the IRS the illicit income she stole from the practice.
The FBI and IRS investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. prosecuted.
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Statement by Attorney General Jeff Sessions on the Hawaii District Court’s DecisionRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the Hawaii District Court’s decision:
“Once again, we are faced with a situation in which a single federal district court has undertaken by a nationwide injunction to micromanage decisions of the co-equal Executive Branch related to our national security. By this decision, the district court has improperly substituted its policy preferences for that of the Executive branch, defying both the lawful prerogatives of the Executive Branch and the directive of the Supreme Court.
"The district court has issued decisions that are entrusted to the Executive Branch, undermined national security, delayed necessary action, created confusion, and violated a proper respect for separation of powers. The Supreme Court has had to correct this lower court once, and we will now reluctantly return directly to the Supreme Court to again vindicate the rule of law and the Executive Branch’s duty to protect the nation.”
St. Croix National Guard Member Sentenced to 18 Months in Federal Prison forWire Fraud, Theft of Government Money, and Making a False Statement to the GovernmentRead the Press Release
St. Croix, USVI – On July 13, 2017, Lt. Col. Kenneth Alleyne, of St. Croix, was sentenced to 18 months in prison and one year of supervised release for wire fraud, theft of government money, and making a false statement to the government, Acting United States Attorney Joycelyn Hewlett announced. District Court Chief Judge Wilma A. Lewis also ordered Alleyne to pay a $10,000 fine, a $4,400 special assessment, and $58,999.35 in restitution to the Virgin Islands National Guard. Alleyne was remanded into the custody of the U.S. Marshals to begin serving his sentence.
On September 30, 2016, a federal jury on St. Croix found Alleyne guilty of 42 counts of wire fraud, theft of government money, and making a false statement to the government. Evidence presented at trial established that from on or about May 1, 2010, to on or about February 28, 2012, Alleyne unlawfully obtained monthly Overseas Housing Allowance payments to pay his rent. The evidence established that Alleyne was not entitled to receive the payments because he did not have any rent payments and that he lied to federal agents to cover up the fraud. At sentencing, Chief Judge Lewis also found that Alleyne had engaged in the same criminal conduct since 2005.
"This sentence should stand as a strong warning to those tempted to defraud the U.S. government," Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit said. "Our agents, along with our law enforcement partners, will pursue all forms of fraud, waste, and abuse."
This case was investigated by the U.S. Army CID –Major Procurement Fraud Unit and Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Anna A. Vlasova and Criminal Chief Christian A. Fisanick.
Southern District of Georgia Announces Participation in National Health Care Fraud TakedownRead the Press Release
SAVANNAH, GA: On Thursday, Attorney General Jeff Sessions and Department of Health and Human Services (“HHS”) Secretary Tom Price, M.D., announced the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.
The operation also highlighted the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2.5 billion in judgments and settlements related to matters alleging health care fraud. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists.
The Department of Justice’s nationwide enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units. Thirty state Medicaid Fraud Control Units also participated. The operation focused on unlawful distribution of prescription narcotics, like opioids, and holding medical professionals responsible accountable for their wrongdoing.
As part of this national enforcement action, the United States Attorney’s Office for the Southern District of Georgia announced the following enforcement actions:
The United States filed a Criminal Information against Sherry McCormick alleging one count of Health Care Fraud. In the information, the United States alleged that from 2013 to 2015, McCormick defrauded Medicare, Tricare, and the Federal Employee Health Benefit Program of approximately $500,000 by submitting and causing the submission of fraudulent claims for medications that were not medically necessary and not prescribed by a doctor.
The United States reached a civil settlement with Allcare Pharmacy, a pharmacy operating out of Lyons, Georgia, totaling $175,000. Based on the actions of its former employee, McCormick, the United States contended that Allcare Pharmacy submitted claims and received payment for prescriptions for compounded medications that were not medically necessary and not prescribed by a doctor.
The United States intervened for the purposes of civil settlement in a qui tam filed against Atlantic Foot & Ankle, P.C., a physician practice previously operating out of several locations in Georgia, as well as an owner of the practice, Melissa Robitaille, D.P.M. The United States contended that Atlantic Foot & Ankle and Dr. Robitaille submitted claims and received payment for services that did not qualify for payment by misrepresenting the services actually rendered.
The United States reached a civil settlement with Ramachandra Paidi, M.D., a physician practicing out of Vidalia, Georgia, totaling $303,950. The settlement resulted from an investigation by the Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), the State of Georgia, and the United States Attorney’s Office for the Southern District of Georgia. Based on its investigation, the United States contended that, on several occasions, Dr. Paidi submitted claims to Medicare and Medicaid for psychotherapy services for twenty-four (24) hours or more of services in any given day.
The United States reached a civil settlement with Andrea Chancey, a physician assistant residing in Augusta, Georgia, totaling $10,000. The settlement resulted from an investigation by the DEA and the United States Attorney’s Office for the Southern District of Georgia. Based on its investigation, the United States contended that, acting in concert with a physician, Andrea Chancey dispensed Schedule II controlled substances without legal authority using pre-signed prescriptions.
The United States reached a civil settlement with Medical Center Pharmacies, based out of Statesboro, Georgia, and its owners, totaling $85,000. The settlement resulted from an investigation by the DEA and the United States Attorney’s Office for the Southern District of Georgia. Based on its investigation, the United States contended that Medical Center Pharmacies and certain pharmacists violated the Controlled Substances Act by negligently failing to make, keep, or furnish certain records regarding highly addictive Schedule II controlled substances, including opioids, as required by federal law.
The United States reached a civil settlement with Medical Villa Apothecary, based out of Augusta, Georgia, and certain pharmacists, totaling $75,000. The settlement resulted from a joint investigation by HHS-OIG, DEA, and the United States Attorney’s Office for the Southern District of Georgia. Based on its investigation, the United States contended that Medical Villa Apothecary and certain pharmacists violated the False Claims Act by submitting claims to Medicare for drugs that it did not dispense to patients. The United States further contended that Medical Villa Apothecary violated the Controlled Substances Act by negligently failing to make, keep, or furnish certain records regarding highly addictive Schedule II controlled substances, including opioids, as required by federal law.
The United States recently announced a civil settlement Rhine Drug Company, based out of Rhine, Georgia, and its owner, totaling $2,175,000, which involved similar allegations.
Acting United States Attorney James Durham said, “The Office will continue to hold accountable those who take advantage of federal health care programs and those who fail to act responsibly when prescribing or safeguarding opioids. Any such fraudsters or hucksters should steer clear of our district, or else expect to face jail time and substantial financial penalties for their acts.”
“Through our Medicaid Fraud Control Unit, our office will continue coordinating with federal partners to safeguard the integrity of Georgia’s Medicaid program,” said Attorney General Chris Carr. “Improper billing inflates costs and causes unnecessary waste in our healthcare system, and we remain dedicated to seeking out and eliminating these issues on behalf of our citizens.”
“We expect doctors and other medical professionals who bill Medicare and Medicaid to provide quality services to those served by the programs, not rip off scarce government health care funds," said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General. “Coordinating with our law enforcement partners, our agents work hard to ensure those who steal from federal health care programs are brought to justice.”
"The top priority of the Defense Criminal Investigative Service is to preserve the integrity of critical Department of Defense programs, such as primary health care for our Warfighters and their families,” said John F. Khin, Special Agent in Charge, DCIS - Southeast Field Office. "DCIS will vigorously pursue and thoroughly investigate any health care provider or contractor who submits false or fraudulent claims to the DoD, so that limited tax payer dollars can be better spent on the most urgent needs for our national defense.”
The cases announced today were investigated by HHS-OIG Special Agents Martin Rowe and David Graupner; DCIS Special Agents Randall Temples and Mark Lewis; DEA Diversion Investigators Josh Barnes, Saul Melendez, George Taylor, Dwayne Jeffcoat, and George Zuban; Investigator Kimberly Reinken-Creamer of the United States Attorney’s Office, Southern District of Georgia; and Law Clerk Alison Slagowitz of the United States Attorney’s Office, Southern District of Georgia; Investigative Auditor Denise Colson and Investigator Kevin White. The United States was represented by Assistant United States Attorneys Shannon Statkus, Tricia Rhodes, Scarlett Nokes, J. Thomas Clarkson, Jason Blanchard, Anica Jones, and Bradford Patrick. The State of Georgia was represented by James Mooney. For additional information, please call the United States Attorney’s Office at (912) 201- 2522.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty. The claims resolved by civil settlements are allegations only; there has been no determination of liability. Investigations remain ongoing as to others arising out of these announced actions.
Social Security Disability Lawyer Sentenced to 12 Years in Prison for Role in More Than $550 Million Social Security Fraud SchemeRead the Press Release
A social security disability lawyer was sentenced today in federal court for his role in a scheme to fraudulently obtain more than $550 million in federal disability payments from the Social Security Administration (SSA) for thousands of claimants.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division; Special Agent in Charge Tracey D. Montaño of the Internal Revenue Service Criminal Investigation (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
Eric Christopher Conn, 56, of Pikeville, Kentucky, was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to 12 years in prison, and to pay restitution in an amount in excess of $106 million to the SSA and HHS. Conn pleaded guilty to one count of theft of government money and one count of payment of gratuities. On June 2, Conn fled from federal custody and remains a fugitive. He was not present for his sentencing hearing.
According to the plea, from October 2004 to April 6, 2016, Conn participated in a scheme with former SSA administrative law judge David B. Daugherty and multiple doctors that involved the submission of thousands of falsified medical documents to the SSA. As a result of the scheme, Conn and his co-conspirators obligated the SSA to pay more than $550 million in lifetime benefits to claimants for these fraudulent submissions.
According to the plea, Conn is an attorney whose firm in Floyd County, Kentucky, focused for more than 20 years primarily on representing individuals seeking Social Security disability benefits throughout Kentucky and elsewhere. According to documents filed in connection with the guilty plea, Conn admitted that from December 2004 through April 2011, he paid Daugherty approximately $10,000 a month to award disability benefits to claimants for whom Conn submitted falsified medical documents.
As part of his plea, Conn admitted that he submitted the falsified medical documents, and Daugherty authored decisions granting disability benefits, in well over 1,700 claimants’ cases. Conn admitted that he paid medical professionals to sign medical forms that he fabricated before evaluations of claimants took place. According to the plea, Conn routinely prepared and medical professionals, such as clinical psychologist Alfred Bradley Adkins, signed evaluation reports indicating that claimants had limitations considered disabling by the SSA, irrespective of the claimants’ actual physical or mental conditions. Conn admitted that he received more than $5.7 million in representative fees from the SSA based upon these fraudulent claims.
Conn was indicted last year, along with Daugherty and Adkins. They were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme, and that indictment remains pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Daugherty pleaded guilty on May 12 to a two-count information charging him with receipt of illegal gratuities. On June 12, Adkins was convicted after a jury trial of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements. Both Daugherty and Adkins are awaiting sentencing.
The SSA-OIG, FBI, IRS-CI and HHS-OIG are investigating the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Senior Executives of Medical Drug Re-Packager Plead Guilty to Defrauding Healthcare ProvidersRead the Press Release
Earlier today, in federal court in Brooklyn, Gerald Tighe, the president and owner of Med Prep Consulting Inc. (Med Prep), and Stephen Kalinoski, its director of pharmacy and registered pharmacist-in-charge, pleaded guilty to wire fraud conspiracy in connection with their operation of the now-defunct Tinton Falls, New Jersey-based medical drug re-packager and compounding pharmacy. The pleas were entered before United States District Judge I. Leo Glasser.
The guilty pleas were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Mark McCormack, Special Agent-in-Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigations, Metropolitan Washington Field Office (FDA/OCI).
According to court filings and facts presented during the plea proceeding, Med Prep processed numerous drugs, including oncology and dialysis drugs, pain medications, anesthesia drugs, and operating room drugs, in purportedly aseptic conditions. In an effort to gain market share, Med Prep repeatedly misrepresented to its customers, who consisted of hospitals and other healthcare providers, that it adhered to, and in some areas exceeded, industry standards and laws applicable to sterile drug preparation. In fact, Med Prep produced drugs in a facility that fell far short of basic industry standards of cleanliness, creating a risk to the health of already ill patients. Tighe and Kalinoski lied to healthcare providers about Med Prep’s failures to comply with basic sterility practices. Med Prep halted its production of drug products in the summer of 2013, following an incident in which it had distributed intravenous drugs containing visible mold to a Connecticut hospital.
"Today's guilty pleas mark an important step in our continuing effort to hold accountable those who pursue corporate profits over the health and safety of vulnerable patients suffering from disease,” said Acting United States Attorney Rohde. In announcing the guilty plea, Ms. Rohde gratefully acknowledged the assistance and cooperation of the United States Department of Health and Human Services, Office of the Inspector General, Office of Investigations; the United States Office of Personnel Management, Office of the Inspector General; the Department of Justice, Civil Division, Consumer Protection Branch and Commercial Litigation Branch; the FDA’s Office of the Chief Counsel; the Office of the Attorney General of New Jersey; and the New Jersey Board of Pharmacy.“Producing unsafe and contaminated drugs poses a serious threat to the U.S. public health and cannot be tolerated,” stated FDA/OCI Special Agent-in-Charge McCormack. “The FDA remains fully committed to aggressively pursuing those who place unsuspecting American consumers at risk by distributing adulterated drugs.”
The sentencing, Tighe and Kalinoski each face up to five years in prison, a fine and the forfeiture of criminal proceeds. They will also be required to make full restitution to their victims.The case is being prosecuted by Assistant United States Attorneys Alixandra E. Smith, Ameet B. Kabrawala and Erin E. Argo.
The Defendants:
GERALD TIGHE
Age: 59
West Long Branch, New Jersey
STEPHEN KALINOSKI
Age: 53
Middletown, New Jersey
E.D.N.Y. Docket No. 15-CR-62 (ILG)
San Juan County Felon Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Justin Krantz, 32, of Aztec, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 57 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition.
Krantz arrested in Nov. 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 4, 2016, in San Juan County, N.M. According to the indictment, Krantz was prohibited from possessing firearms or ammunition because of his prior conviction on drug trafficking charges.
On April 11, 2017, Krantz pled guilty to the indictment and admitted that on May 4, 2016, he was in possession of a firearm and ammunition. Krantz further admitted that he was prohibited from being in possession of firearms or ammunition because of his prior felony convictions.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Eva Fontanez prosecuted the case.
Richmond Man Sentenced to 30 Years for Gun and Drug CrimesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 30 years in prison for gun and drug trafficking crimes.
Daymont Underwood, 31, was convicted by a federal jury of possession of a firearm by a convicted felon, possession with the intent to distribute marijuana, and possession of a firearm in furtherance of a drug trafficking crime on April 5. According to court records and evidence presented at trial, Daymont Underwood, 31, of Richmond, was pulled over by the Richmond Police on Oct. 20, 2015, for a traffic violation. Underwood attempted to flee on foot and engaged in a struggle with officers. During the struggle, a loaded .45 caliber handgun fell from Underwood’s waistband. A search of Underwood’s vehicle revealed 78 grams of high-grade marijuana, a digital scale, and sandwich baggies. Law enforcement later determined that Underwood was a convicted felon.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Alfred Durham, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-18.
Pueblo Man Sentenced in Murder for Hire PlotRead the Press Release
DENVER – Ricardo Estevan Suazo, age 27, of Pueblo, Colorado, was sentenced today by U.S. District Court Judge Philip A. Brimmer to serve 108 months (9 years) in federal prison, followed by 3 years on supervised release in a murder-for-hire plot. His federal prison time is to be served consecutive to any state prison sentences, the U.S. Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pueblo Police Department announced. Suazo’s co-defendant, Reina Ashley Gonzales, age 29, of Pueblo, was sentenced by Judge Brimmer on June 16, 2017, to serve 30 months in federal prison, followed by 3 years on supervised release for similar charges.
Both defendants were charged by Criminal Complaint on September 28, 2016. They were then both indicted by a federal grand jury on October 19, 2016. Gonzales ultimately pled guilty to an Information charging her with conspiracy on March 8, 2017. Her prison sentence followed on June 16, 2017. Suazo pled guilty on April 12, 2017. He was sentenced today, July 14, 2017.
Beginning in August 2016 and continuing through September 2016, Suazo and co-defendant Gonzales conspired to hire different individuals, including an undercover law enforcement agent, to murder an individual who was a witness in a state case against Suazo. During the time of the conspiracy, Suazo was a incarcerated in the Pueblo jail. He frequently spoke by phone in code with Gonzales. On at least two different occasions Suazo arranged to bond out individuals from Pueblo jail in exchange for the murder of the witness. When each of those inmates failed to complete the murder, he turned to an individual who was actually an undercover agent. Suazo asked Gonzales to meet with this individual. Gonzales showed the undercover agent the Facebook account for the witness who was to be murdered, and the Facebook account of the witness’s girlfriend. She also drew a map to the witness’s last known residence. Eventually, the plan to hire the undercover agent to commit the murder fell apart. At that point, the two co-defendants tried to hire a fourth inmate to commit the murder. Both were then arrested and, as a result of the investigation, the witness was protected.
“Attacking a witness is attacking the very heart of the justice system,” said Acting U.S. Attorney Bob Troyer. “We won’t tolerate it. Ever. Pueblo has seen the last of Mr. Suazo for a good long time.”
“To save his own skin, Suazo attempted to hire not one, not two, but several people to murder a victim he already attempted to kill during a violent crime. He didn’t care about consequences to himself or his friend; he didn’t care about anyone else who could be hurt; he didn’t care about the victim or their loved ones,” said ATF Special Agent in Charge Debora Livingston. “His selfish and remorseless behavior is disgusting. The world is better off with him behind bars where innocent people never have to interact with him.”
This case was investigated by the ATF and Pueblo Police Department. The case was prosecuted by Assistant United States Attorneys Rebecca Weber and Hetal J. Doshi.
Plains Township Man Indicted for Firebombing the Luzerne County Children and Youth Office BuildingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 11, 2017, Phillip Finn, Jr, age 47, of Plains Township, Pennsylvania, was indicted by a federal grand jury for stalking, making threatening interstate communications and causing malicious damage to federal property by fire.
The indictment was unsealed today following Finn’s initial appearance before U.S. Magistrate Judge Karoline Mehalchick. Finn was detained on the charges pending trial.
According to United States Attorney Bruce D. Brandler, the indictment alleges that between March 3, 2017 and March 6, 2017, Finn used Facebook, Google and his cell phone to engage in a course of conduct, to harass and intimidate two Luzerne County Children and Youth Services employees. The indictment also alleges that on March 6, 2017, Finn used three Molotov cocktails to damage the Luzerne County Children and Youth Services Office building, located in Wilkes-Barre.
The case was investigated by the U.S. Federal Bureau of Investigation, the Wilkes-Barre City Police Department, and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The combined maximum penalty under federal law for these offenses is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Norwich Resident Involved in Insurance Fraud Scheme Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANDY DUGUE, also known as “Jimmy,” 40, of Norwich, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 100 days of imprisonment, followed by three years of supervised release, for his role in an insurance fraud scheme.
According to court documents and statements made in court, between April 2011 and April 2014, DUGUE and others conspired to stage approximately 50 car crashes in eastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from about $10,000 to about $30,000 per accident.
DUGUE was involved in five false insurance claims, four of which stemmed from staged automobile crashes. DUGUE received $11,004 from insurers based on his false claims.
Judge Meyer ordered DUGUE to pay $10,000 in restitution.
DUGUE were arrested on May 20, 2016. On August 9, 2016, he pleaded guilty to one count of wire fraud.
DUGUE, a citizen of Haiti and a lawful permanent resident of the U.S., faces immigration proceedings when he is released from prison.
Six other individuals involved in this scheme have been convicted and await sentencing.
This matter has been investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Michael J. Gustafson.
Nigerian Citizen Pleads Guilty in Missouri to $12 Million Tax Refund Fraud, Voter Fraud and Illegal ReentryRead the Press Release
A Nigerian citizen, who resided in St. Louis, Missouri, pleaded guilty today to mail fraud, aggravated identity theft, voter fraud and illegally re-entering the United States after having been removed, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Carrie Costantin for the Eastern District of Missouri.
According to documents filed with the court, Kevin Kunlay Williams aka Kunlay Sodipo, 56, and others stole public school employees’ IDs from a payroll company and used them to electronically file more than 2,000 fraudulent federal income tax returns seeking more than $12 million in refunds. He also stole several return preparer’s Electronic Filing Identification Numbers (EFINs) and used them to secure tax-related bank products and services that facilitated the issuance of tax refunds, to include blank check stock and debit cards. Williams used the blank stock to print checks funded by the fraudulent refunds and directed some of the refunds onto debit cards.
Williams previously entered the United States from Nigeria under the name Kunlay Sodipo, but was deported in 1995. In 1999, Williams illegally returned to the United States from Nigeria using the last name Williams. In 2012, Williams registered to vote in federal, state and local elections by falsely claiming that he was a U.S. citizen and voted in the 2012 and 2016 presidential elections.
Williams remains in federal custody and his sentencing is scheduled for Oct. 13 before Chief U.S. District Judge Rodney W. Sippel. Williams faces a statutory maximum sentence of 20 years in prison for mail fraud, 10 years in prison for illegal reentry, five years in prison for each voter fraud count and a mandatory minimum sentence of two years in prison for aggravated identity theft. Williams also faces a period of supervised release, restitution, forfeiture and deportation.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Costantin commended special agents of IRS Criminal Investigation, FBI and the U.S. Postal Inspection Service as well as the Dothan, Alabama Police Department and Alexander City, Alabama Police Department, who investigated this case, and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division, who are prosecuting this case with assistance from the U.S. Attorney’s Offices in the Eastern District of Missouri and Middle District of Alabama.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New Bedford Seafood Wholesaler Indicted for Tax EvasionRead the Press Release
BOSTON – A former New Bedford seafood wholesaler was indicted yesterday for failing to file tax returns and filing a false tax return for his business’ income.
George F. Estudante, 57, formerly of Marion, Mass., was charged with two counts of failing to file tax returns and one count of filing a false income tax return.
According to court documents, Estudante failed to file an income tax return for 2010, even though his business, Basic Fisheries, received approximately $1,418,629 in payments. He also failed to file a tax return for 2011, although his business received approximately $1,607,726 in payments that year. Furthermore, Estudante falsely swore on his 2012 tax return that he had received approximately $533,078 in gross receipts when his bank account reflected that he had received over $740,000.
The charge of failing to file an income tax return provides for no greater than one year in prison, one year of supervised release and a fine of $25,000. The charge of filing a false income tax return provides for three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Narcotics Dealer Pleads Guilty to Sale of Heroin and Fentanyl That Resulted in Manhattan Man’s Overdose DeathRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced the plea today by DASHAWN HAWKINS, a/k/a “Jhonny Cash,” of New York, New York, to the sale of heroin and fentanyl that resulted in the overdose death of Colin Cameron, 29, of Manhattan, on September 2, 2016. HAWKINS pled guilty earlier today before U.S. District Judge Gregory H. Woods in Manhattan federal court.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “As he admitted today, Dashawn Hawkins sold fentanyl-laced heroin that killed Colin Cameron, a young resident of New York City. The opioid epidemic is devastating our communities, and this Office is committed to aggressively prosecuting dealers like Hawkins who fuel it.”
According to the charging documents filed in the case, as well as statements made during the plea proceedings and earlier court appearances:
On or about September 1, 2016, DASHAWN HAWKINS, a/k/a “Jhonny Cash,” sold a mixture of heroin and fentanyl to Colin Cameron. The next morning, New York City Police Department officers responded to Cameron’s apartment on the Upper West Side, where they found Cameron dead from a drug overdose. After identifying HAWKINS as the dealer who sold Cameron the fatal dose of drugs, the NYPD arrested HAWKINS on October 20, 2016, and searched his apartment. During the search, officers found, among other things, additional bags of heroin and substances used to cut heroin, fentanyl packaging, and a short-barreled rifle with a high-capacity magazine loaded with 34 rounds of ammunition.
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HAWKINS faces a maximum term of life in prison and a mandatory minimum term of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by a judge. HAWKINS is scheduled to be sentenced on December 7, 2017, by the Honorable Gregory H. Woods, U.S. District Judge.
Mr. Kim praised the outstanding investigative work of the NYPD.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jason M. Swergold and Amanda L. Houle are in charge of the prosecution.
Mexican Man Arrested in Saratoga, NY Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Rufino Ramirez De Jesus, age 31, of Mexico, was sentenced today to time served (46 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), acting Field Office Director Thomas P. Brophy, Buffalo, New York Field Office.
As part of his guilty plea, Ramirez De Jesus admitted that he was an alien, a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on February 22, 2014. Ramirez De Jesus had previously been removed to Mexico on October 22, 2012.
On May 30, 2017, Ramirez De Jesus was arrested by ICE officers in Saratoga Springs, New York.
Following the sentencing, Ramirez De Jesus was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.
The case was investigated by United States Immigration and Customs Enforcement, Albany, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Men from El Salvador plead guilty to reentering the United States multiple timesRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that two men from El Salvador pleaded guilty Thursday to reentering the country after being deported.
Juan Carlos Yanes-Vasquez, 38, and Nelson Antonio Orellana, 29, both of El Salvador, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of illegal reentry following deportation. According to the guilty pleas, U.S. Customs and Border Patrol agents stopped a vehicle February 21, 2017 traveling east on Interstate 10. Agents found eight undocumented illegal aliens and one driver who had lawful status in the United States. Agents discovered Yanes-Vasquez and Orellana among the group. They also discovered the defendants illegally reentered the United States multiples times. Yanes-Vasquez’s most recent deportation took place December 22, 2016 in Laredo, Texas. The defendant admitted to reentering the country on February 17, 2017 after crossing the Rio Grande River into Texas. Orellana also was found to have been deported multiple times with the most recent deportation being March 4, 2016 from Alexandria, La. He reentered the country illegally on February 14, 2017 near Laredo, Texas.
Yanes-Vasquez faces up to two years in prison and one year of supervised release. Orellana faces up to 10 years in prison and one year of supervised release. They also face a $250,000 fine.
United States Customs and Border Patrol conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the cases.
Member of International Child Exploitation Conspiracy Sentenced to 210 Months in PrisonRead the Press Release
A Chicopee, Massachusetts man was sentenced to 210 months in prison and 10 years of supervised release for production of child pornography based on his participation in a website that was operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; and Section Chief John J. Brosnan of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Edward Parson, 46, was charged on April 4, 2016, and pleaded guilty before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia on April 14.
According to admissions made in connection with the plea agreement, members of the conspiracy created false profiles on social networking sites popular with children, posing as young teenagers to lure children to two websites they controlled. Once on the conspirators’ websites, Parson admitted that members of the conspiracy showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Parson further admitted that conspirators used these videos to coerce and entice children to engage in sexually explicit activity on their own web cameras, which could be viewed live by other members without the victim’s knowledge and which the website automatically recorded and made available for download later. Parson admitted that he chatted with minors in furtherance of the conspiracy. The defendant also admitted that one of the websites ranked the efforts of the members to successfully coerce and entice children to engage in sexually explicit conduct on live web camera. Both websites have been disabled.
This case was investigated as part of Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children (VCAC) International Task Force. VCAC special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in Operation Subterfuge. To date, over 320 minor victims have been identified as part of this operation.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc..
Member of Drug Trafficking Organization Admits Conspiring to Sell Heroin in Hudson CountyRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man today admitted distributing heroin in Hoboken, New Jersey, on multiple occasions, Acting U.S. Attorney William E. Fitzpatrick announced.
Travis Thomas, a/k/a “Mush,” 27, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an indictment charging him with one count of conspiracy to distribute heroin and seven substantive counts of heroin distribution.
According to documents filed in this case and statements made in court:
Between July 2015 and December 2015, Thomas conspired with others to distribute heroin in Hudson County, including Hoboken. Thomas admitted that he distributed over 100 grams of heroin and worked with others, including Sterling McCoy, a/k/a “Boogs,” 33, of Pleasantville, New Jersey, and Jason Henderson Wheeler, a/k/a “J,” 28, of Hoboken, in furtherance of the conspiracy.
Thomas faces a sentence of between 10 years and life in prison. Sentencing is scheduled for Oct. 11, 2017. McCoy and Wheeler have already been convicted and sentenced for their roles in the conspiracy.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Brian Urbano and Erica Liu of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Jason N. Orlando Esq., Jersey City, New Jersey
Massachusetts Man Sentenced to 33 Months in Prison for StalkingRead the Press Release
CONCORD, N.H. – David Ackell, 48, of Seekonk, Massachusetts, will serve a 33-month prison sentence for using facilities in interstate commerce to stalk a female resident of New Hampshire, announced Acting United States Attorney John J. Farley.
According to court records and statements made in court, Ackell sent an on-line private message to the victim when she was 16. Thereafter, the victim agreed to send photographs of herself to Ackell because Ackell repeatedly promised that he would not save them. Several months later, Ackell persuaded the victim to send partially nude photographs of herself to him. After the victim turned 18, she repeatedly told Ackell that she wanted to end their relationship. Ackell prevented this from happening by, among other things, threatening to send the victim’s photographs to her family and friends. He also told the victim that if she ended their relationship, a 14-year old girl would be raped.
Ackell was found guilty of the offense after a four-day jury trial in December 2016. The defendant will be appealing his conviction. He will not begin serving his sentence until after the Court of Appeals has ruled.
“In its various forms, cyber-stalking causes severe trauma to the stalked victims and the people who care about them,” said Acting U.S. Attorney Farley. “It is a high priority of this office to prosecute anyone who engages in this reprehensible conduct. This case is an unfortunate reminder that young people who use social media need to be vigilant about what information they share with others. I encourage parents to speak openly with their children about the need to be extremely cautious when establishing online relationships and sharing information with others. I commend the bravery of the victim in this case who came forward and shared her story with law enforcement officers.”
The Federal Bureau of Investigation, the Hancock, New Hampshire Police Department, and the Seekonk, Massachusetts Police Department investigated the case.
At trial, Assistant United States Attorneys Helen White Fitzgibbon and Robert Kinsella represented the government. AUSA Kinsella represented the government at the sentencing hearing.
Man from El Salvador pleads guilty to reentering the U.S. after having been removed four timesRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from El Salvador pleaded guilty Thursday to reentering the United States after having been previously removed four times.
Aristides Arevalo-Rodriguez, 44, of El Salvador, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of illegal reentry following removal. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Arevalo-Rodriguez was found in Calcasieu Parish on March 21, 2017. It was discovered that the defendant had been removed four times from the United States. The most recent removal was September 30, 2011 at or near Houston, Texas.
Arevalo-Rodriguez faces up to two years in prison, one year of supervised release and a $250,000 fine. The court set sentencing for October 27, 2017.
The U.S. Department of Homeland Security – U.S. Customs and Border Protection, and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips is prosecuting the case.
Long Island Man Sentenced to over 9 Years in Prison for Defrauding South Korean Religious School of More Than $5 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WILLIAM COSME, a/k/a WILLIAM COSMO, was sentenced in Manhattan federal court today to 111 months in prison for orchestrating a scheme to defraud a Christian missionary school in South Korea of $5.5 million. On March 21, 2017, a jury convicted COSME of wire fraud and aggravated identity theft following a one-week trial before U.S. District Judge Loretta A. Preska, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Joon H. Kim said: “William Cosme defrauded an international school in Korea of more than $5 million by telling a series of brazen lies, many that he continued to tell on the stand at trial. Instead of investing the school’s money meant for educating children as he had promised, Cosme spent it on himself, on a Lamborghini, Ferrari, gambling, and other personal expenses. Thanks to the hard work of the FBI, Cosme will now spend time in a federal prison.”
According to the Indictment and other filings in Manhattan federal court, statements made in connection with COSME’s sentencing proceedings, and evidence admitted at trial:
COSME purported to operate a “privately held, global, private equity family practice with a concentration on it’s [sic] own family’s private wealth management, commercial [real estate], physical gold trade and business consulting.” COSME further claimed that the entity through which he did business “manage[d] family assets with a net asset value in excess of USD $11b on a global basis” and that his clientele included royalty and the families of royalty.
In January 2011, COSME, acting through his company Cosmo Dabi International Trading Group Inc. (“Cosmo Dabi”), entered into an agreement with an international school located in South Korea (the “International School”) whereby Cosmo Dabi would lend the International School approximately $55 million and the International School would make a deposit of approximately $5.5 million (the “Equity Deposit”), which COSME would invest in order to generate funds to loan the International School. The International School sought to use the proceeds of the loan to expand its operations in South Korea.
In January 2011, the International School sent by wire transfer approximately $5.5 million to an account maintained by COSME at a bank.
Thereafter, COSME transferred the funds that the International School had entrusted to him into other accounts, including accounts in his own name rather than that of his company. From the other accounts, COSME began a run of unauthorized personal spending, including a Lamborghini costing nearly $314,000 (which itself was meant to secure COSME a preferred spot on a waiting list to purchase an even more expensive Lamborghini); a Ferrari costing nearly $287,000; a Cadillac Escalade; a sport utility vehicle for a family member of COSME’s; a 110-day gambling trip to Las Vegas; gaming losses while on that trip in excess of $200,000; paying for his girlfriend’s rent; and otherwise funding a lavish lifestyle. All the while, COSME made a series of misrepresentations to the leadership of the International School as to why they had not been issued their promised loan payments, and devised and executed a sham audit process in order to convince the International School that they were in default of their agreement and that COSME could keep the school’s deposit for himself.
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In addition to his prison sentence, COSME, 51, of Jericho, New York, was sentenced to three years of supervised release and ordered to forfeit, among other things, the contents of two financial services accounts containing more than $2 million, as well as the luxury automobiles he purchased with the stolen funds. Restitution was also ordered in the amount of $5.5 million.
Mr. Kim praised the outstanding efforts of Federal Bureau of Investigation in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah D. Solowiejczyk and Martin S. Bell are in charge of the prosecution.
Las Vegas Man Pleads Guilty to Armed Bank Robbery with Homemade Simulated Explosive DeviceRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to robbing a bank with a homemade simulated explosive device with wires and blinking lights worn under his clothes, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Vincent Earl Hagey, 46, pleaded guilty to one count of armed bank robbery and one count of attempted armed bank robbery. United States District Judge Jennifer Dorsey accepted the guilty plea and scheduled sentencing for Oct. 16, 2017. At the time of sentencing, Hagey faces the maximum statutory penalty of 20 years in prison and a $250,000 fine.
According to admissions in the plea agreement, on Feb. 17, 2017, Hagey, wearing a white hat, black suitcoat and a blue tie, entered a Bank of America and presented a bank robbery note to a teller stating that he had a bomb. Hagey then pressed a button in his clothing and a blinking blue light lit on his chest. The teller gave Hagey $1,131, and he left the bank.
On March 13, 2017, Hagey was arrested while leaving a Wells Fargo Bank wearing the same clothes and homemade device from the February bank robbery. The homemade contraption was made of batteries, wire, and a lighted circuit board, with a wire running up his sleeve to a push-button near his cuff. Hagey could activate the button on his cuff to make the blue light on the circuit board blink on and off. During an interview with law enforcement, Hagey confessed to robbing the Bank of America and attempting to rob the Wells Fargo Bank, both with the use of the simulated explosive device under his clothing.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Brandon Jaroch.
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Justice Department Seeks to Shut Down Atlanta-Area Tax Return PreparerRead the Press Release
The United States filed a civil injunction suit seeking to bar Marjorie St. Jean and her company MarjorieStjeanLLC, from owning, operating, or franchising a tax return preparation business and preparing tax returns for others, the Justice Department announced today.
The complaint filed in the U.S. District Court for the Northern District of Georgia, also requests that the court order St. Jean and MarjorieStjeanLLC to disgorge the fees that they obtained through the preparation of allegedly false returns. According to the complaint, St. Jean of McDonough, Georgia, currently owns and operates a tax preparation store called Precise Tax Services. This tax preparation store is located at 7206 Tara Blvd. in Jonesboro, Georgia, according to the complaint.
The government alleges that St. Jean prepares and files tax returns that unlawfully increase her customers’ refunds, and she profits through excessive, often undisclosed preparation fees—at the expense of her customers and the U.S. Treasury. The complaint alleges that St. Jean and her company, MarjorieStjeanLLC, engage in fraudulent activity, including:
• Falsely claiming Fuel Tax Credits;
• Falsely claiming the Earned Income Tax Credit;
• Fabricating businesses and related business income and expenses;
• Fabricating deductions, particularly for unreimbursed employee business expenses; and
• Charging deceptive and unconscionable fees.
According to the complaint, St. Jean was previously an employee of LBS Tax Services, where she worked at a tax preparation store owned and operated by Douglas Mesadieu. A federal court previously barred Mesadieu from preparing federal tax returns for others and owning and operating a tax preparation business, finding that “Mesadieu and his companies have been unjustly enriched by fraudulently inflating the EITC on the tax returns they prepared for customers in order to increase a taxpayer’s tax refund.” Since September 2014, the United States has filed 15 similar lawsuits in Florida and North Carolina against the former LBS Tax Services franchisor, Walner Gachette, and former LBS franchisees and managers, many of whom allegedly rebranded as new businesses and continued to operate tax preparation businesses. Through these lawsuits, the United States has obtained numerous permanent injunctions and money judgments requiring defendants to disgorge millions in ill-gotten tax preparation fees.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury convicts owner of Sandusky company for fraud related to Castalia FarmsRead the Press Release
The owner of a Sandusky company was convicted on multiple counts for his fraudulent conduct related to Castalia Farms, said Acting U.S. Attorney David Sierleja and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Scott C. Wagner, 53, of Perkins Township, was convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, and multiple counts of wire fraud, mail fraud, concealment of money laundering and of use of criminally derived property.
According to trial testimony and documents filed in the case:
Castalia Farms was a hospitality facility owned by Owens-Illinois, Inc. and used by the company as a recreational facility since the 1930s. O-I closed the facility in 2012 and later sold the property.
The manager of Castalia Farms had an occasional need for industrial equipment and was a regular customer of Wagner and his company, Construction Equipment & Supply (CES), a Sandusky business that rented and sold industrial machinery and equipment for commercial use.
Wagner controlled the day-to-day operations of CES and submitted false invoices to manager Michael Conrad that were then passed on to O-I for equipment rentals that never occurred, purchases of construction supplies and other goods that never occurred, purchases of construction supplies that were far in excess of what was actually delivered, and other fraudulent billings.
For example, O-I was billed more than $350,000 for 532 days of renting a piece of equipment used to grind trees and other vegetation, when in reality the grinder was not at Castalia Farms for nearly all the time it was billed to O-I as a rental, according to court documents.
In October 2010, Conrad submitted to O-I a fraudulent invoice for $47,925 worth of landscaping work, purportedly done at Castalia Farms. The work was actually done at Wagner’s personal residence. O-I paid the invoice in December 2010, according to court documents.
In a different scheme, Kyklos Bearing International, LLC of Sandusky, paid false invoices Wagner submitted with the assistance of a Kyklos Bearing International employee. The invoices were false because they sought payment for goods that were never delivered by CES, according to court documents.
Conrad previously pleaded guilty to crimes related to his role in the conspiracy.
This case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office.
Johnston Bank Robber SentencedRead the Press Release
PROVIDENCE – Lenin Gutierrez, 40, of Cranston, was sentenced today to 41 months in federal prison for robbing a bank branch office located inside a Johnston supermarket on December 30, 2016, announced Acting United States Attorney Stephen G. Dambruch, Johnston Police Chief Richard S. Tamburini and Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Gutierrez to serve 3 years supervised release upon completion of his prison sentence and to pay $2,500 restitution to Citizens Bank. Gutierrez pleaded guilty on April 27, 2017, to bank robbery, as charged in a federal indictment returned on January 26, 2017. No plea agreement was filed in this matter.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 41-51months. The government recommended the court impose a sentence of 41 months in prison.
At the time of his guilty plea, Gutierrez admitted to the court that on December 30, 2016, he entered a Citizens Bank branch office inside a Johnston supermarket while dressed in a beige jacket, black facemask, and a Spiderman hat and scarf. Gutierrez admitted that he handed a bank teller a hand-written note demanding cash and threatening to shoot the teller if the money was not handed over. After the teller gave Gutierrez $100 and $50 dollar bills, Gutierrez demanded more money. The teller then handed over $20 bills.
Gutierrez left the bank without showing a weapon.
According to court documents, responding Johnston Police officers searched the immediate area and located the black facemask, Spiderman hat and scarf, and beige jacket worn by Gutierrez during the robbery. Inside the jacket, officers located a note that said, “Robbery $100 and $50 Stacks only No die pack No Allarm. have A gun will use.” An outer pocket contained a stack of $20 bills. Officers did not locate a firearm.
According to court documents, a fingerprint lifted from the note by Johnston Police detectives was matched to Lenin Gutierrez. Gutierrez has been detained since his arrest on January 5, 2017.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The FBI assisted Johnston Police in the investigation of this matter.
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Jefferson County Man Convicted of Killing Whooping Cranes Headed to Prison After Violating Terms of ProbationRead the Press Release
BEAUMONT, Texas – A 20 year old Beaumont, Texas man was sentenced to federal prison for violating the terms of his probation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Trey Joseph Frederick was sentenced to five years of federal probation in October, 2016 after he pleaded guilty to a violation of the Endangered Species Act. In January, 2016, a Texas Game Warden received two calls reporting that two Whooping Cranes had been shot on Blair Road in Jefferson County. Further investigation revealed that Frederick had been seen in the area with a hunting rifle and claimed to be hunting geese. Federal agents contacted Frederick at his home where he admitted to killing the cranes.
Whooping Cranes are a species of migratory birds in danger of extinction throughout all or a significant portion of its range, and therefore an endangered species as defined by the Endangered Species Act, making it unlawful to capture, kill, trap, or collect Whooping Cranes, or attempt to engage in such conduct in the United States.
Today, Frederick was back in federal court facing charges that he violated the terms of his probation for, among other things, using an AR-15 assault rifle to hunt from a roadway in Jefferson County, Texas. The terms of Frederick’s probation specifically prohibited him from owning or possessing firearms, ammunition or any other dangerous weapon. Frederick is also prohibited from hunting or fishing anywhere in the United States. During his court appearance today, U. S. Magistrate Judge Zack Hawthorn sentenced Frederick to 11 months incarceration to be followed by a one year term of supervised release.
Acting U.S. Attorney Featherston made the following statement, “Trey Frederick was given the opportunity of probation when he was first convicted of killing two federally protected whooping cranes. Apparently, Mr. Frederick did not appreciate the leniency he was given, and today, he learned the consequences. Mr. Frederick will now have 11 months to contemplate his actions.”
This case was investigated by special agents with the U.S. Fish and Wildlife Services, Office of Law Enforcement and Game Wardens with the Texas Parks and Wildlife Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Irving Tax Preparer Sentenced to 35 Months in Federal PrisonRead the Press Release
DALLAS —A tax preparer who operated a tax preparation business in Irving, Texas, was sentenced yesterday for preparing false tax returns, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge Jane J. Boyle sentenced Hector Gerardo Nunez yesterday afternoon to 35 months in federal prison and ordered him to pay $68,121.06 in restitution. On December 2, 2015 Nunez pleaded guilty to one count of aiding and assisting in the preparation of a false tax return.
According to the factual resume filed in his case, from at least 2007 through 2010, Nunez did business under the name of Speedy Tax Service, located on W. Airport Freeway in Irving. During this period, Nunez knowingly and willfully prepared, and caused to be filed with the Internal Revenue Service (IRS), income tax returns that were materially false. Nunez would include false or inflated deductions and credits that were intended to produce a fraudulently inflated refund to be paid by the IRS. He would then collect a fee that was deducted from the refund generated by each return he prepared.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Christopher Stokes prosecuted.
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Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on July 13, 2017 and entering pleas of Not Guilty were:
- CINNAMON A. FULGHUM, a 49-year-old resident of Plentywood, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and use of a communication facility in causing and facilitating the commission of felonies under the controlled substances act. If convicted of the most serious charges contained in the indictment, FULGHUM faces 20 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the United States Postal Service. PACER Case Reference. 17-39
- JULIUS EDWARD LUPOWITZ, a 55-year-old resident of Melbourne, Florida, appeared on charges of wire fraud, and engaging in monetary transactions in property derived from specified unlawful activity. If convicted of the most serious charges contained in the indictment, LUPOWITZ faces 20 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-40
Appearing before U.S. Magistrate Cavan in Billings on July 11, 2017 and entering pleas of Not Guilty were:
- KEVIN RAYMOND RUCKS, a 56-year-old resident of Dickinson, North Dakota, appeared on charges of distribution of methamphetamine. If convicted of the charge contained in the indictment, RUCKS faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 17-08
Appearing before U.S. Magistrate Johnston in Great Falls on July 10, 2017 and entering pleas of Not Guilty were:
- WILLIAM BRENT LARION, a 40-year-old resident of Shelbyville, Tennessee, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record, and felon in possession of a firearm. If convicted of the most serious charge contained in the indictment, LARION faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Drug Enforcement Administration and the Roosevelt County Sheriff’s Office. PACER Case Reference. 17-33
Appearing before U.S. Magistrate Cavan in Billings on July 5, 2017 and entering pleas of Not Guilty were:
- RANDY RAY STARNES, a 60-year-old resident of Billings, appeared on charges of bank robbery. If convicted of the charge contained in the indictment, STARNES faces 20 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-81
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indianapolis man sentenced in federal court for heroin and gun chargesRead the Press Release
Defendant had three prior drug charges on his criminal history
PRESS RELEASE
Indianapolis –United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced in federal court on drug and weapon charges. Brant Chaszar, 35, was sentenced to 262 months (over 21 years) imprisonment by U.S. District Judge Tanya Walton Pratt after pleading guilty to possession with intent to distribute heroin and carrying a firearm in relation to a drug trafficking crime.
“Trafficking in heroin not only brings gun violence to a community, it contributes to the opioid crisis our country faces,” said Minkler. “Helping to reduce crime in our neighborhoods, is, and will remain a top priority of this office.”
In June 2015, law enforcement officials learned that Chaszar was dealing fentanyl-laced heroin in Indianapolis. They obtained a search warrant for his residence on the near Southside of Indianapolis. As officers approached Chaszar’s residence, he ran from agents and threw a loaded 40-caliber handgun he was carrying to the ground. He was apprehended and found to be in possession of fentanyl-laced heroin.
When agents served a search warrant on his home, they located ammunition, marijuana and additional heroin.
Chaszar has three narcotic-related prior convictions on his record. Because he is a convicted felon, he is not legally permitted to carry a firearm.
This investigation was jointly conducted by the Drug Enforcement Administration the Indianapolis Metropolitan Police Department and the United Drug Task Force of Hendricks County.
“Drug dealers profit from the weakness of addiction and leave a trail of sadness by introducing synthetic opioids such as fentanyl into our communities,” said Assistant Special Agent in Charge of the Indianapolis Drug Enforcement Administration, Greg Westfall. “DEA is committed to the safety of our neighborhoods by bringing drug dealers to justice.”
According to Assistant United States Attorney Barry Glickman who prosecuted this case for the government, Chaszar must serve six years of supervised release following his sentence.
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Husband and Wife Sentenced for Wire and Mail Fraud ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On July 14, 2017, Christy A. Greider, 40, and Jason A. Greider, 42, both of Huber Heights, Ohio, were sentenced by the Honorable Pamela L. Reeves, U.S. District Court Judge, for their roles in a conspiracy to commit mail and wire fraud. Christy Greider will serve 33 months in federal prison and Jason Greider will serve 27 months.
The Greiders both pleaded guilty in February 2017 to one count of conspiracy to commit mail and wire fraud. Christy Greider worked as the bookkeeper for M-3 Construction, Inc., located in Oak Ridge, Tennessee. She also helped the company’s elderly owners keep track of their personal finances. Christy and Jason Greider made unauthorized purchases totaling more than $350,000 using the company’s and its elderly owners’ personal credit cards. Some of these unauthorized purchases included a boat, pool, furniture, and a trip to Hawaii.
Agencies involved in this investigation included the Oak Ridge Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Kelly A. Norris represented the United States.
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Former Teacher Sentenced to 27 Years for Child Pornography, Child Sex Tourism ChargesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Clarence Edward Evers, Jr., also known as Bud Evers, 54, of Evergreen, Alabama, was sentenced today to 27 years in prison. Evers pled guilty in April to charges that he produced child pornography, possessed child pornography, and traveled in foreign commerce with the intent to engage in illicit sexual conduct.
Evers was also sentenced to be supervised by the United States Probation Office for the rest of his life, and will be required to register as a sex offender. The Court also ordered that Evers pay $50,000 in restitution and a fine of $5,000.00.
Evers, previously employed as a technology teacher at Hillcrest High School in Conecuh County, admitted in documents filed as part of his guilty plea that he traveled each summer to Thailand, where he paid minor boys as young as thirteen to engage in illicit sexual conduct and that he took sexually explicit photographs of boys. One of the victims, then a 15-year old boy, made a report about being paid approximately $22 by Evers to engage in sex acts with him, and witnessing Evers engage in sex acts with another boy. Evers was identified through Facebook communications he had with the boy, and a search warrant was executed at Evers’s home in Evergreen on April 1, 2015. A substantial amount of child pornography, including videos and photographs of boys engaged in sexually explicit conduct, was recovered from Evers’s home. Although Evers had encrypted many of his electronic devices, the unencrypted data showed that Evers had accessed, downloaded, and produced child pornography. Evidence collected during the investigation also showed that, for years, Evers had discussed and coordinated his travel to and within Thailand with other men interested in engaging in commercial sex acts with boys in that country.
Acting United States Attorney Butler said, “Predators who exploit children will be aggressively investigated, pursued, and prosecuted, wherever they are. I commend the hard work and dedication of the many agents, analysts, support personnel, and lawyers from Mobile to New Orleans to Evergreen to Washington to Bangkok who sought justice for these victims. The Department of Justice remains steadfast in its commitment to protect children everywhere from criminals who would exploit them for their own gratification.”
“HSI will tirelessly work to investigate and bring to justice anyone who thinks they can get away with preying upon our children for their own sexual gratification” said Raymond R. Parmer, Jr. “This case highlights the exceptional commitment and devotion of the men and women who pursue the perpetrators of these depraved crimes every day.” Parmer is the Special Agent in Charge of the New Orleans field office with responsibility for Alabama, Arkansas, Louisiana, Mississippi, and Tennessee.
The case was investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and prosecuted by Assistant United States Attorneys Sean P. Costello and Maria E. Murphy, and Trial Attorney Jessica Urban of the Department of Justice’s Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Substantial additional investigation and analysis were provided by CEOS’s High Technology Investigative Unit.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Suzuki Employee Pleads Guilty to Submitting False Report to the EPARead the Press Release
Wayne Powell, a former employee of American Suzuki Motor Corporation headquartered in Brea, California, pleaded guilty today in a federal court in Detroit, Michigan, to violating the Clean Air Act by submitting a false end-of-year report to the U.S. Environmental Protection Agency, the Justice Department announced.
According to the plea agreement, Powell, a Government Relations Analyst for Suzuki, was responsible for submitting documents to the EPA regarding Suzuki’s compliance with motorcycle emission standards. Powell was in charge of submitting Suzuki’s 2012 application to the EPA for a “certificate of conformity,” which allows a vehicle manufacturer to sell vehicles in the United States. Rather than seek certification of each motorcycle engine family, Suzuki combined the certifications of multiple engine families and averaged their emission standards based on the total number of motorcycles in each family. At the end of the model year, Suzuki was required to submit to the EPA an end-of-year report to show that it was in compliance with emission standards.
The average that Powell created combined emissions of hydrocarbons and nitrogen oxides for the 23,528 Class III model year 2012 motorcycles that Suzuki imported, distributed and sold in the U.S. The average violated the emission limit. The first end-of-year report Powell submitted to the EPA in 2013 purported to utilize “banked credits” to offset the excess emissions. However, Suzuki had not participated in the banked credit program and therefore had no credits to use. As a result, the EPA informed Powell it could not accept the report. Subsequently, on March 28, 2014, Powell submitted an amended end-of-year report to the EPA’s Office of Transportation and Air Quality in Ann Arbor in which he altered the numbers of four motorcycle engine families, resulting in a calculation that was within the emission limit. The altered numbers were false. Powell also deceitfully represented to the EPA in the email that accompanied the amended report that “[t]he computer software that we use to gather this information did not count all of the units” and that he had “corrected some mistakes on the 2012 report.”
Powell faces a statutory maximum penalty of two years in prison and a fine of up to $250,000.
Acting Assistant Attorney General Jeffrey H. Wood and Acting U.S. Attorney Daniel L. Lemisch thanked the U.S. Environmental Protection Agency’s Criminal Investigation Division, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service for their work in this investigation. The case is being prosecuted by Senior Counsel Kris Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Craig Weier of the U.S. Attorney’s Office for the Eastern District of Michigan.