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11 July 2017
Pastor Sentenced to Fraud and Filing False Tax ReturnRead the Press Release
St. Louis, MO – Mark Q. Stafford was sentenced to 51 months in prison on charges of mail fraud and filing a false tax return in connection with a large-scale investment fraud arising out of his company, the Stafford Financial Firm.
According to court documents, Stafford, who was also a minister at New Birth Powerplex Ministries in North St. Louis, falsely represented to clients of the Stafford Financial Firm that their funds would be placed with Quest Financial Holdings or Gain Capital Group, which Stafford sometimes misspelled “Gain Capitol Group.” In truth and in fact, Stafford did not open any accounts at Quest Financial Holdings or Gain Capital Group in his clients’ names. Instead, Stafford, in some cases, did not deposit the clients’ funds with either Quest Financial Holdings or Gain Capital Group, and in others, he deposited their funds into his own accounts at Gain Capital Group where he then used those funds for his own personal benefit. Stafford obtained approximately $1.26 million in proceeds from approximately 31 victims and caused an actual loss to those victims in the approximate amount of $1.08 million.
Stafford, 53, of Florissant, Missouri, pled guilty in March to mail fraud and filing a false tax return for the 2010 tax year that failed to disclose the income he had illegitimately taken from his investors. Stafford also admitted to failing to file any tax return for the 2011 and 2013 tax years. He appeared today for sentencing before United States District Judge Henry E. Autrey.
The case was investigated by the Internal Revenue Service, the U.S. Postal Inspection Service and the Missouri Secretary of State’s Office. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Olathe Woman Sentenced in Identity Theft SchemeRead the Press Release
KANSAS CITY, KAN. - An Olathe woman was sentenced Tuesday for a scheme to collect income tax refunds by creating companies that existed only on paper, U.S. Attorney Tom Beall said. In addition, a co-defendant in the case pleaded guilty Tuesday.
Raquel Odegbaro, 44, Olathe, Kan., was sentenced Tuesday to 75 months in federal prison and ordered to pay more than $894,000 in restitution. She had pleaded guilty to one count of conspiracy to defraud the government, one count of aggravated identity theft and one count of mail fraud.
Co-defendant Abdirizak Aden, 33, Kansas City, Mo., pleaded guilty Tuesday to one count of conspiracy to defraud the government and one count of conspiracy to commit mail fraud.
In their pleas, Odegbaro and Aden said they operated Cokeza Styles, an online business that sold hair products. They admitted creating a series of fictitious companies and filing tax returns in the names of so-called employees by providing false information about wages earned, amounts withheld and refunds due. The false tax returns directed the Internal Revenue Service to deposit refunds electronically to reloadable credit cards controlled by the conspirators. The individuals whose names appeared on the refunds never actually worked for the fictitious companies.
In addition, the conspirat ors used stolen Social Security numbers to apply for unemployment benefits from the Kansas Department of Labor. They created more than nine fictitious companies and registered them with the labor department. They filed false claims in the names of employees who purportedly were terminated without fault.
Aden is set for sentencing Oct. 2. The parties have agreed to recommend a sentence of 18 months and restitution of approximately $541,000.
Co-defendants include Alexander Limihagati, 35, Overland Park, Kan., who is set for sentencing Aug. 14, and Zia Mkubi Kajanja, 42, Overland Park, Kan., who is awaiting trial.
Beall commended the Internal Revenue Service – Criminal Investigation; the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor and Racketeering and Fraud; the Kansas Department of Children and Families; the U.S. Department of Housing and Urban Development – Office of Inspector General; the U.S. Department of Education – Office of Inspector General; the U.S. Department of Agriculture – Office of Inspector General; the Kansas Department of Labor; and Assistant U.S. Attorney Jabari Wamble for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Ohio Woman Charged with Providing Marijuana to Prison InmateRead the Press Release
ERIE, Pa. - A resident of Warren, Ohio has been indicted by a federal grand jury in Erie on a charge of providing contraband in prison, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Malinda Penezich, 47, of Warren, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, on or about November 27, 2016, Penezich provided a quantity of marijuana to an inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nashville Man Pleads Guilty to Sending Internet Threat Targeting Law Enforcement OfficersRead the Press Release
Robert Ellis Waddey, 22, of Nashville, Tenn., pleaded guilty on Friday to communicating a threat by interstate commerce, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee. Waddey was indicted by a federal grand jury in February of this year and was also charged with being an unlawful user of a controlled substance in possession of firearms.
“The U.S. Attorney’s Office will continue to review every threat and act of violence against our law enforcement officers,” said Acting U.S. Attorney Jack Smith. “If the review finds that federal law was violated, you should expect to see federal charges brought against those responsible.”
According to court documents, in September 2015, Waddey posted a photograph on Instagram which depicted a handgun pointed at a Tennessee State Trooper vehicle. The posting was captioned, “F*** them non attentive hoes” and a comment read, “Gona die lookin at his computer.” Photographs subsequently found on Waddey’s phone also depicted a uniformed police officer bleeding heavily from the head and captioned “only a dead cop is a good cop.” Another photograph depicts a uniformed police officer who appears to have been shot multiple times in the back and laying in the street, while yet another photograph depicts a screen shot of a video showing another uniformed police officer who appears to have been shot and laying on the ground bleeding. This photo is captioned, “ON TAPE: OFFICER SHOT IN THE HEAD D….”
Waddey admitted during the plea hearing, that on September 13, 2015, while sitting in his vehicle at a traffic light in South Nashville, he took a photograph of a Glock pistol in his hand, positioned in such a way where the pistol would be viewed in the same frame as a police car on a traffic stop in the distance with the blue lights activated. Waddey posted with the photograph, a slang threat to law enforcement. Various text messages sent by Waddey also conveyed threats toward law enforcement and indicate the pleasure he took in the number of targeted cop killings.
Waddey also admitted during the plea hearing that his subjective intent in making the communications was to threaten law enforcement.
According to the terms of the plea agreement, Waddey will also forfeit 13 handguns, four assault rifles and a shotgun.
Waddey faces up to five years in prison and up to a $250,000 fine when he is sentenced on October 16, 2017.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Metropolitan Nashville Police Department. Assistant U. S. Attorney Courtney Coker is prosecuting the case.
Mexico Citizen Sentenced to a Year and a Day for Being in the United States After RemovalRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Presiliano Gonzalez Berruete, 53, a citizen of Mexico, was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to one year and a day in prison to be followed by one year of supervised release for being an alien who entered the United States after having been removed and deported. He pleaded guilty on March 10, 2017.
According to court documents, on February 12, 2017, the defendant arrived at the Canada Border Services Agency in Woodstock, New Brunswick. He was refused entry to Canada and transported to the Houlton, Maine Port of Entry. A United States Custom and Border Protection (CBP) officer determined that the defendant was a citizen of Mexico who had been removed from the United States in 2010 after being convicted of a federal felony drug trafficking offense. The defendant returned to the United States without inspection at a place that was not designated for entry.
The case was investigated by CBP, Department of Homeland Security.
Mexican citizen charged with selling guns to Guatemalan citizen who was trafficking methRead the Press Release
GAINESVILLE, Ga. - Miguel Angel Rosas-Ramirez and Eduardo Estrada Medina have been arraigned on federal firearm and drug charges. A federal indictment charges that Rosas-Ramirez, a citizen of Mexico, used an unlawfully obtained concealed carry permit to purchase multiple firearms, which his alien status prohibits under federal law, and that he then sold the guns to others, including Estrada. The indictment further charges that Estrada, a citizen of Guatemala, illegally reentered the United States after being deported, purchased several weapons from Rosas-Ramirez, and trafficked in methamphetamine.
“Guns are an all-too-frequent part of the illegal drug business, and the majority of these guns arrive in drug dealers’ hands from illegal firearm trafficking as alleged in this case,” said U. S. Attorney John Horn. “This case is even more troubling because one of the alleged gun purchasers already had been deported once as a result of illegal drug trafficking, and yet found his way back to the United States and to the dangerous combination of methamphetamine and guns.”
“ATF’s involvement in securing this indictment is a prime example of the successful use of federal laws to confront, engage and eliminate criminal activity. Criminals must understand that there are serious repercussions for illegal trafficking of narcotics and illegal possession of firearms and that ATF will contribute all necessary time and effort to ensure that the individuals responsible are brought to justice,” said Assistant Special Agent in Charge John Schmidt.
According to U.S. Attorney Horn, the charges, and other information presented in court, Rosas-Ramirez falsely claimed to be a U.S. citizen in order to obtain a Georgia Weapons Carry Permit. He then allegedly used the permit to illegally purchase over 100 firearms in the past year, several of which have been recovered in the hands of illegal aliens who were themselves trafficking drugs. The indictment charges that Eduardo Estrada Medina, who was also known as Miguel Angel Donis-Gonzalez, not only possessed firearms that Rosas-Ramirez purchased, but also had 8.8 kilograms of suspected methamphetamine, over $140,000 cash, and other drug paraphernalia in his home. Medina was deported in January 2013 after he was convicted of drug trafficking. He then illegally re-entered the United States.
Medina faces charges of unlawful possession of firearms by an alien, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of drug trafficking activity, possession of an unregistered silencer, and unlawful possession of firearms by a felon. Rosas-Ramirez has been charged with unlawful possession of firearms by an alien, unlawful dealing in firearms, unlawful claim to U.S. citizenship, and 18 counts of fraudulent statements to licensed gun dealers in connection with firearms purchases.
Miguel Angel Rosas-Ramirez, 24, a Mexican citizen living in Statham, Georgia, and Eduardo Estrada Medina, a/k/a Miguel Angel Donis-Gonzalez, 28, a Guatemalan citizen in the United States living in Winder, Georgia, were arraigned before U.S. Magistrate Judge J. Clay Fuller. A federal grand jury indicted the pair on June 27, 2017.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Jennifer Keen is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Mexican Citizens Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Two Mexican citizens arrested together in Saratoga Springs, New York, were sentenced today for illegally re-entering the United States.
Arturo Garcia-Lopez, age 45, of Mexico, was sentenced today to time served (43 days in jail) for illegally re-entering the United States. Leonel Martinez-Ramirez, age 23, of Mexico, was also sentenced today to time served (43 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Garcia-Lopez admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on June 9, 2015. Garcia-Lopez had also been removed to Mexico on September 26, 2014 and June 4, 2015.
As part of his guilty plea, Martinez-Ramirez admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on March 3, 2013.
On May 30, 2017, Garcia-Lopez and Martinez-Ramirez were arrested by ICE officers in Saratoga Springs, New York.
Following their respective sentencings, Garcia-Lopez and Martinez-Ramirez were each placed into the custody of the Department of Homeland Security, for removal proceedings.
These cases were investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mexican Citizen Sentenced to 144 Months in Federal Prison for the Possession of MethamphetamineRead the Press Release
DALLAS — Alfonso Escobedo Garcia, 36, citizen of Mexico, was sentenced yesterday before U.S. District Judge Sam A. Lindsay to 144 months in federal prison following his guilty plea in October 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Garcia pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. Garcia has been in custody since the time of his arrest in March 2016.
According to plea documents in the case, on March 11, 2016, Garcia agreed to deliver 10 kilograms of methamphetamine in exchange for $115,000. Garcia was stopped by a Grand Prairie Police Officer who initiated a traffic stop for failing to come to a complete stop at a stop sign. During the traffic stop, it was determined that Mr. Garcia did not have a driver’s license and he was arrested. An inventory search of the vehicle found more than 500 grams of methamphetamine.
The Drug Enforcement Administration and the Grand Prairie Police Department investigated. Assistant U.S. Attorney George Leal prosecuted.
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Member of Violent Grape Street Crips Gang Admits Witness Intimidation as Part of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A member of the New Jersey set of the Grape Street Crips today admitted his role in a racketeering conspiracy that involved using other gang members to intimidate a witness during a state criminal trial, as well as conspiracies to distribute heroin and crack-cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.
Ahmed Singleton, a/k/a “Gangsta-Moo,” a/k/a “Gangsta,” a/k/a “Mooshie,” 28, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to three counts in the sixth superseding indictment charging him with RICO conspiracy and separate conspiracies to distribute one kilogram of heroin and 280 grams or more of crack-cocaine.
According to documents filed in this case and statements made in court:
As part of the racketeering conspiracy, Singleton admitted that he used fellow members of the N.J. Grape Street Crips to intimidate a witness against him by having those gang members sitting in the gallery of the courtroom as the witness took the stand. Singleton was facing criminal charges brought by the Essex County Prosecutor’s Office for aggravated assault, possession of a weapon for an unlawful purpose, and unlawful possession of a firearm for a shooting that occurred in April 2013. As a result of Singleton’s effort, the witness refused to testify against him and the charges were dismissed.
Afterwards, Singleton was intercepted over a wiretap bragging to a fellow gang-member: “Who you know cause a ruckus on these motherfuckin streets, come home, do whatever the fuck they want, and still be out here son?”
Singleton also admitted to participating in conspiracies to distribute one kilogram or more of heroin and 280 grams or more of crack-cocaine.
The N.J. Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the area of 6th Avenue and North 5th Street and public-housing complexes at Pennington Court, Oscar Miles, the Millard Terrell Homes, the John W. Hyatt homes and the former James Baxter Terrace complex.
Under the terms of the plea agreement, Singleton will receive a sentence of 19 years in prison and five years of supervised release. Sentencing is scheduled for Oct. 12, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation. Acting U.S. Attorney Fitzpatrick also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the Office’s Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense Counsel: Alyssa Cimino Esq., Fairfield, New Jersey
McKean-FCI Inmate Charged with Assaulting a Federal OfficerRead the Press Release
ERIE, Pa. - A federal prisoner at McKean Federal Correctional Institution in Bradford, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of assaulting a federal officer, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Rogelio Muniz-Valdez, 41, as the sole defendant.
According to the indictment presented to the court, Muniz-Valdez assaulted a federal officer who was engaged in his official duties.
The law provides for a maximum total sentence of 8 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Office of the McKean Federal Correctional Institution conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
McKean County Man Charged with Defrauding Housing Voucher ProgramRead the Press Release
ERIE, Pa. - A resident of Smethport, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of theft of government property, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Gary Herzog, 75, of Smethport, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Herzog represented himself to be property owner for a tenant in the Housing Choice Voucher program. He failed to inform the McKean County Redevelopment and Housing Authority that he transferred ownership of the property where the tenant was living back in 2007.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Housing and Urban Development, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan Woman Sentenced in Manhattan Federal Court to 3 Years in Prison for Defrauding Investors of More Than $23 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that HAENA PARK was sentenced in Manhattan federal court to three years in prison for defrauding investors of more than $23 million. PARK pled guilty on January 13, 2017, to one count of commodities fraud before U.S. District Judge Ronnie Abrams, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “Haena Park lied to investors about her expertise as a foreign exchange trader and about her returns. To conceal her scheme and to forestall redemptions, she fabricated account statements and also paid early investors with money from new investors. For defrauding her customers of more than $23 million – representing many investors’ life savings – Haena Park has been sentenced to significant prison time.”
According to the Indictment and other filings in Manhattan federal court, and statements made in today’s proceedings:
From September 2009 through June 2016, PARK raised more than $23 million from more than 40 individual investors, purportedly for the purpose of trading in a variety of securities and commodities, including equities, futures, and off-exchange foreign currency (“forex”) transactions, through the use of her firms, Phaetra Capital Management LP and Argenta Group, LLC. In connection with the scheme, PARK made a series of false and misleading representations to investors, including that PARK was an accomplished forex trading adviser earning annualized returns as high as 48.9 percent for her investors. In truth and in fact, PARK was not an accomplished forex trader, her trading was consistently unsuccessful, and the trading results emailed to investors by PARK were false and did not reflect the trading losses actually incurred by PARK. Rather, from September 2009 through June 2016, PARK lost approximately $19.5 million of the $20 million that she traded, including in commissions and fees, principally in highly leveraged futures and forex transactions.
To prevent or forestall redemptions by investors, and to continue to raise money from investors to fund her scheme, PARK generated fictitious account statements, which she sent to investors on a monthly basis. Instead of accurately reporting the trading losses PARK was suffering, the account statements indicated that the investors were making money nearly every month. To hide her trading losses, PARK used new investor funds to pay back other investors in a Ponzi-like fashion. In total, PARK distributed approximately $3 million back to investors from funds deposited by new investors.
PARK defrauded many victims – including immigrants, the elderly, and disabled individuals – of nearly the entirety of their life savings.
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In addition to her prison term, PARK, 41, of New York, New York, was sentenced to three years of supervised release and a forfeiture money judgment in the amount of $23,186,860. A restitution order will be entered within 90 days.
Mr. Kim praised the work of the Department of Homeland Security, Homeland Security Investigations and the El Dorado Task Force. He also thanked the Commodity Futures Trading Commission and the Securities and Exchange Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
Man Pleads Guilty to Killing a Bald EagleRead the Press Release
NORFOLK, Va. – A Smithfield man pleaded guilty today to killing a bald eagle, first shooting and wounding the bird, then finally running over it with his all-terrain vehicle.
According to the statement of facts filed with the plea agreement, Allen H. Thacker, 62, shot the bald eagle because he was upset it had been hunting and taking fish from a pond located on his property. Court records indicate Thacker first tried to scare the bird away with a warning shot. When that did not work, Thacker shot the bird with a Remington .22 caliber rifle. According to a necropsy performed on the dead eagle, Thacker’s initial shot wounded the bird, but blunt force trauma to the bird’s skull proved fatal. Though Thacker initially denied it when interviewed by investigators, a witness reported having seen Thacker drive over the bird with his all-terrain vehicle. In Court records filed with today’s guilty plea, Thacker fully admitted to shooting the bird and running it over with the all-terrain vehicle.
Thacker pleaded guilty to unlawful taking of a bald eagle, and faces a maximum penalty of one year in prison and a $100,000 fine when sentenced on October 23. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.
The case was investigated by the U.S. Fish and Wildlife Service after receiving a referral from the Virginia Department of Game and Inland Fisheries Conservation Police.
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. 2:17-mj-291.
Mallinckrodt agrees to pay record $35 million settlement for failure to report suspicious orders of pharmaceutical drugs and for recordkeeping violationsRead the Press Release
SYRACUSE, NEW YORK – Mallinckrodt LLC, a pharmaceutical manufacturer and one of the largest manufacturers of generic oxycodone, agreed to pay $35 million to settle allegations that it violated certain provisions of the Controlled Substances Act (CSA) that are subject to civil penalties, Acting United States Attorney Grant C. Jaquith announced today.
This is the first settlement of its magnitude with a manufacturer of pharmaceuticals resolving nationwide claims that the company did not meet its obligations to detect and notify DEA of suspicious orders of controlled substances such as oxycodone, the abuse of which is part of the current opioid epidemic. These suspicious order monitoring requirements exist to prevent excessive sales of controlled substances like oxycodone in Florida and elsewhere. The settlement also addressed violations in the company’s manufacturing batch records at its plant in Hobart, New York. Both sets of alleged violations impact accountability for controlled substances, and the compliance terms going forward are designed to help protect against diversion of these substances at critical links in the controlled substance supply chain.
The government alleged that Mallinckrodt failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances— orders that are unusual in their frequency, size, or other patterns. From 2008 until 2011, the United States alleged, Mallinckrodt supplied distributors, and the distributors then supplied various U.S. pharmacies and pain clinics, an increasingly excessive quantity of oxycodone pills without notifying DEA of these suspicious orders. Through its investigation, the government learned that manufacturers of pharmaceuticals offer discounts, known as “chargebacks,” based on sales to certain downstream customers. Distributors provide information on the downstream customer purchases to obtain the discount. The groundbreaking nature of the settlement involves requiring a manufacturer to utilize chargeback and similar data to monitor and report to DEA suspicious sales of its oxycodone at the next level in the supply chain, typically sales from distributors to independent and small chain pharmacy and pain clinic customers.
The government also alleged that Mallinckrodt violated record keeping requirements at its manufacturing facility in Upstate New York. Among other things, these violations created discrepancies between the actual number of tablets manufactured in a batch and the number of tablets Mallinckrodt reported on its records. Accurate reconciliation of records at the manufacturing stage is a critical first step in ensuring that controlled substances are accounted for properly through the supply chain.
In addition to the significant monetary penalty, this settlement includes a groundbreaking parallel agreement with the DEA that the company will analyze data it collects on orders from customers down the supply chain to identify suspicious sales. The resolution advances the DEA’s position that controlled substance manufacturers need to go beyond “know your customer” to using otherwise available company data to “know your customer’s customer” to protect these potentially dangerous pharmaceuticals from getting into the wrong hands. DEA’s Memorandum of Agreement with Mallinckrodt also sets forth specific procedures it will undertake to ensure the accuracy of batch records and protect loss of raw product in the manufacturing process.
By entering into these agreements, elements of which Mallinckrodt is already implementing, the company is becoming part of the solution to this public health epidemic.
Acting U.S. Attorney Jaquith said: “This settlement reflects our commitment to use all of the tools at our disposal to address the opioid problem impacting our nation. We will continue to apply the civil penalty provisions of the Controlled Substances Act to enforce regulations designed to protect the public from the diversion of oxycodone and other addictive substances.”
DEA Special Agent in Charge James Hunt stated, “Cooperation between law enforcement and opioid manufacturers is paramount to ensuring that the legitimate supply of pain medication gets into the right hands for the right reasons. The diversion of pain medication into the wrong hands, for the wrong reasons, has resulted in record overdose deaths across the nation. Through this investigation, and the resulting settlement, the building blocks have been laid to ensure industry accountability and compliance with federal regulations, to safeguard the public from the danger of diverted opioids.”
This lengthy investigation was led by DEA’s Detroit Field Division on the suspicious order issues and the New York Field Division on the manufacturing record keeping issues.
U.S. Attorneys’ Offices for the Eastern District of Michigan, the Northern District of New York along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating the settlement.
Mallinckrodt Agrees to Pay Record $35 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical Drugs and for Recordkeeping ViolationsRead the Press Release
Mallinckrodt LLC, a pharmaceutical manufacturer and one of the largest manufacturers of generic oxycodone, agreed to pay $35 million to settle allegations that it violated certain provisions of the Controlled Substances Act (CSA) that are subject to civil penalties, Attorney General Jeff Sessions of the Justice Department and Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA) announced today.
This is the first settlement of its magnitude with a manufacturer of pharmaceuticals resolving nationwide claims that the company did not meet its obligations to detect and notify DEA of suspicious orders of controlled substances such as oxycodone, the abuse of which is part of the current opioid epidemic. These suspicious order monitoring requirements exist to prevent excessive sales of controlled substances, like oxycodone in Florida and elsewhere. The settlement also addressed violations in the company’s manufacturing batch records at its plant in Hobart, New York. Both sets of alleged violations impact accountability for controlled substances, and the compliance terms going forward are designed to help protect against diversion of these substances at critical links in the controlled substance supply chain.
“In the midst of one of the worst drug abuse crises in American history, the Department of Justice has the responsibility to ensure that our drug laws are being enforced and to protect the American people,” said Attorney General Sessions. “Part of that mission is holding drug manufacturers accountable for their actions. Mallinckrodt’s actions and omissions formed a link in the chain of supply that resulted in millions of oxycodone pills being sold on the street. Thanks to the hard work of our attorneys and law enforcement, Mallinckrodt has agreed to do everything they can to help us identify suspicious orders in the future. And as a result of today's settlement, we are sending a clear message to drug companies: this Department of Justice will hold you accountable for your legal obligations and we will enforce our laws. I believe that will prevent drug abuse, prevent new addictions from starting, and ultimately save lives.”
“Manufacturers and distributors have a crucial responsibility to ensure that controlled substances do not get into the wrong hands,” said DEA Acting Administrator Chuck Rosenberg. “When they violate their legal obligations, we will hold them accountable.”
The government alleged that Mallinckrodt failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances – orders that are unusual in their frequency, size, or other patterns. From 2008 until 2011, the U.S. alleged, Mallinckrodt supplied distributors, and the distributors then supplied various U.S. pharmacies and pain clinics, an increasingly excessive quantity of oxycodone pills without notifying DEA of these suspicious orders. Through its investigation, the government learned that manufacturers of pharmaceuticals offer discounts, known as “chargebacks,” based on sales to certain downstream customers. Distributors provide information on the downstream customer purchases to obtain the discount. The groundbreaking nature of the settlement involves requiring a manufacturer to utilize chargeback and similar data to monitor and report to DEA suspicious sales of its oxycodone at the next level in the supply chain, typically sales from distributors to independent and small chain pharmacy and pain clinic customers.
The government also alleged that Mallinckrodt violated record keeping requirements at its manufacturing facility in upstate New York. Among other things, these violations created discrepancies between the actual number of tablets manufactured in a batch and the number of tablets Mallinckrodt reported on its records. Accurate reconciliation of records at the manufacturing stage is a critical first step in ensuring that controlled substances are accounted for properly through the supply chain.
In addition to the significant monetary penalty, this settlement includes a groundbreaking parallel agreement with the DEA, as a result of which the company will analyze data it collects on orders from customers down the supply chain to identify suspicious sales. The resolution advances the DEA’s position that controlled substance manufacturers need to go beyond “know your customer” to use otherwise available company data to “know your customer’s customer” to protect these potentially dangerous pharmaceuticals from getting into the wrong hands. DEA’s Memorandum of Agreement with Mallinckrodt also sets forth specific procedures it will undertake to ensure the accuracy of batch records and protect loss of raw product in the manufacturing process.
By entering into these agreements, elements of which Mallinckrodt is already implementing, the company is becoming part of the solution to this public health epidemic.
This lengthy investigation was led by DEA’s Detroit Field Division on the suspicious order issues and the New York Field Division on the manufacturing record keeping issues.
U.S. Attorneys’ Offices for the Eastern District of Michigan and the Northern District of New York, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating the settlement.
Mallinckrodt Agrees to Pay Record $35 Million Settlement for Failure to Report Suspicious Orders of Pharmaceutical Drugs and for Recordkeeping ViolationsRead the Press Release
DETROIT – Mallinckrodt LLC, a pharmaceutical manufacturer and one of the largest manufacturers of generic oxycodone, agreed to pay $35 million to settle allegations that it violated certain provisions of the Controlled Substances Act (CSA) that are subject to civil penalties, Acting United States Attorney Daniel Lemisch and Tim Plancon, Special Agent in Charge, Drug Enforcement Administration, Detroit Division (DEA) announced today.
This is the first settlement of its magnitude with a manufacturer of pharmaceuticals resolving nationwide claims that the company did not meet its obligations to detect and notify DEA of suspicious orders of controlled substances such as oxycodone, the abuse of which is part of the current opioid epidemic. These suspicious order monitoring requirements exist to prevent excessive sales of controlled substances, like oxycodone in Florida and elsewhere. The settlement also addressed violations in the company’s manufacturing batch records at its plant in Hobart, New York. Both sets of alleged violations impact accountability for controlled substances, and the compliance terms going forward are designed to help protect against diversion of these substances at critical links in the controlled substance supply chain.
Acting United States Attorney Lemisch stated, “We're grateful for the work of the DEA who have invested countless hours investigating this first of its kind case. This settlement continues our fight against the opioid epidemic by requiring all in the supply chain not to participate in suspicious orders: physicians, pharmacies, distributors and now - manufacturers.”
DEA Special Agent in Charge Plancon stated, “This settlement reflects DEA’s commitment to the public health and safety by holding DEA registered manufacturers accountable and requiring them to do their due diligence by knowing the downstream customer. This investigation let’s all DEA registrants know that they need to use all of their resources and tools to detect and report suspicious orders.”
The government alleged that Mallinckrodt failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances – orders that are unusual in their frequency, size, or other patterns. From 2008 until 2011, the U.S. alleged, Mallinckrodt supplied distributors, and the distributors then supplied various U.S. pharmacies and pain clinics, an increasingly excessive quantity of oxycodone pills without notifying DEA of these suspicious orders. Through its investigation, the government learned that manufacturers of pharmaceuticals offer discounts, known as “chargebacks,” based on sales to certain downstream customers. Distributors provide information on the downstream customer purchases to obtain the discount. The groundbreaking nature of the settlement involves requiring a manufacturer to utilize chargeback and similar data to monitor and report to DEA suspicious sales of its oxycodone at the next level in the supply chain, typically sales from distributors to independent and small chain pharmacy and pain clinic customers.
The government also alleged that Mallinckrodt violated record keeping requirements at its manufacturing facility in upstate New York. Among other things, these violations created discrepancies between the actual number of tablets manufactured in a batch and the number of tablets Mallinckrodt reported on its records. Accurate reconciliation of records at the manufacturing stage is a critical first step in ensuring that controlled substances are accounted for properly through the supply chain.
In addition to the significant monetary penalty, this settlement includes a groundbreaking parallel agreement with the DEA, as a result of which the company will analyze data it collects on orders from customers down the supply chain to identify suspicious sales. The resolution advances the DEA’s position that controlled substance manufacturers need to go beyond “know your customer” to use otherwise available company data to “know your customer’s customer” to protect these potentially dangerous pharmaceuticals from getting into the wrong hands. DEA’s Memorandum of Agreement with Mallinckrodt also sets forth specific procedures it will undertake to ensure the accuracy of batch records and protect loss of raw product in the manufacturing process.
By entering into these agreements, elements of which Mallinckrodt is already implementing, the company is becoming part of the solution to this public health epidemic.
This lengthy investigation was led by DEA’s Detroit Field Division on the suspicious order issues and the New York Field Division on the manufacturing record keeping issues.
U.S. Attorneys’ Offices for the Eastern District of Michigan and the Northern District of New York, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating the settlement.
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Madison Man Sentenced to 16 Months for Conspiring to Defraud the VARead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that David B. Watson, Sr., 56, of Madison, Maine was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to 16 months in prison and three years of supervised release for conspiring to defraud the U.S. Department of Veterans Affairs (VA). Watson was also ordered to pay about $48,405 in restitution.
According to court records, the defendant conspired with his daughter-in-law to illegally obtain about $48,405 in VA compensation benefits for her. Watson submitted documents to the VA on her behalf, falsely claiming she had suffered from mental disabilities that were connected to her service in the U.S. Army and told her how she should falsely describe her mental condition to VA doctors.
The investigation was conducted by the Criminal Investigation Division of the VA Office of the Inspector General.
Lockland Company Pleads Guilty to Failing to Report Large Cash Transactions and Trucking Safety ViolationsRead the Press Release
CINCINNATI – Enson Trading LLC, which does business as Eternal Food Service, pleaded guilty in U.S. District Court to failing to file required IRS forms for cash transactions exceeding $10,000, and to violating Federal Motor Carrier Safety regulations.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Thomas J. Ullom, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, and Angela Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Field Office, announced the pleas entered today before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, Enson is a Lockland-based wholesale food storage facility and distributor to primarily Asian restaurants in Ohio and nine other states. Many of the company’s customers pay in cash. Between October 2010 and June 2012, the company failed to file a federal Form 8300 for 41 cash transactions totaling $564,202.23. Federal laws and regulations require every person engaged in a nonfinancial trade or business that receives cash in excess of $10,000 to file the form within 15 days of receipt of the cash.
The company also pleaded guilty to conspiracy to continue operation after imposition of an out-of-service order from the Federal Motor Carrier Safety Administration (FMCSA). In June 2010, FMCSA conducted a compliance review of the trucks the company used to distribute its products in Ohio and out of state and issued the company an unsatisfactory safety rating based upon critical violations of several regulations. FMCSA gave the company 60 days to address the violations or they would receive an out-of-service order. Eight days before the company’s trucking operations were to be put out of service, the company registered and incorporated under a different name. The company did that five more times between 2010 and 2014, using the names Heng Hua, National Trucking, Eternal Trading Corporation, Aspiron and FC Logistics.
Terms of the plea agreement call for the company to serve three years of probation, pay a $525,000 fine, and forfeit $215,012.55. Enson Trading, LLC manager Qing Xia Zheng entered the plea on behalf of the company.
U.S. Attorney Glassman commended the investigation of this case by the IRS, the U.S. Department of Transportation Office of Inspector General and the FBI, and District Criminal Chief Kenneth L. Parker, who is representing the United States in this case.
Judge Sentences Butler County Man to 30 Years in Federal Prison for Sexually Exploiting Minor BoysRead the Press Release
PITTSBURGH - A Butler County resident convicted at trial in February on child exploitation charges has been sentenced in federal court to 30 years in prison, followed by lifetime supervised release, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on James Mark Leroy, 55, of Renfrew, PA. Leroy was also ordered to pay a special assessment of $400, restitution of $25,000 and a fine of $125,000.
According to information presented at trial, Leroy, on two separate occasions, transported minor boys, aged 10 and 13, to Florida and Michigan with the intent to engage in illegal sexual conduct. During these trips, Leroy engaged in criminal sexual acts and plied the minor boys with alcohol and prescription pills. The government also presented evidence at trial and at sentencing that the defendant had historically sexually offended against two other victims when they were children between the age of 10 and 13.
Prior to imposing sentence, Judge Schwab remarked that the defendant “must serve a significant custodial sentence for this most reprehensible pattern of criminal conduct.” He also found that a sentence of less than 360 months would create sentencing disparities among others charged with similar crimes.
Acting United States Attorney Soo C. Song and Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government. In court, Acting U.S. Attorney Song emphasized the aggravated nature of the defendant’s crimes referring to “the sinister drugging and incapacitation of children, overtly and surreptitiously by crushing up pills and putting them on the food of a 10-year-old child.” Attorney Song credited the child survivors of the defendant’s crimes, “This defendant underestimated the will and courage of these boys to speak out, to speak up and their determination to make sure that he did not offend against other children.”
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 Depart of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Acting United States Attorney Song commended the Federal Bureau of Investigation, the Butler County District Attorney’s Office and the Penn Township Police for the investigation leading to the successful prosecution of Leroy.
Jefferson County Man Sentenced for Inmate Related ConspiracyRead the Press Release
BEAUMONT, Texas – A 49-year-old Port Arthur, Texas man has been sentenced for his part in a conspiracy targeting federal inmates and their families in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Larry Lee Stephenson pleaded guilty on Jan. 24, 2017 to conspiracy to commit wire fraud and was sentenced to 41 months in federal prison today by U.S. District Judge Marcia Crone. Stephenson was also ordered to pay restitution, along with the other defendants, in the amount of $3,456,780.
According to information presented in court, in September, 2016, separate indictments were handed down by federal grand juries in the Eastern District of Texas, Beaumont Division, and the Southern District of Florida, Miami Division, alleging six individuals in the Port Arthur and Houston area were involved in a nationwide six-year scheme which defrauded the relatives of federal inmates by falsely representing that they could obtain reductions in their relatives’ sentences in exchange for the payment of cash and wire transfers of funds. The payments were falsely represented to be for the payment for a network of confidential informants who would make undercover drug transactions under the direction of the courts and prosecutors which would allow the incarcerated inmates to ask the court for reductions of sentences for providing substantial assistance to the government under the Federal Rules of Criminal Procedure. In reality, the money was spent for the personal benefit of the defendants and there was never any network of informants or undercover transactions. Federal inmates do not have to pay for substantial assistance motions for reductions of sentences which normally only require information to be provided by such inmates against co-defendants as well as trial testimony. The Texas indictment alleged a wire fraud and conspiracy to commit wire fraud involving six individuals: Alvin James Warrick, 41, Colitha Patrice Bush, 36, Ronald B. Shepherd, 33, and Alvin Turner, 54, all of Houston, Texas; and Larry Lee Stephenson, 49, and Wilbert Brown, 42, of Port Arthur, Texas. Additionally Warrick, Bush, and Shepherd were also the subject of the indictment from the Southern District of Florida also alleging a wire fraud and conspiracy to commit wire fraud. The indictments allege different victims in and around each district. The scheme resulted in losses to inmate families of over $4 million.
Warrick and Bush, the organizers and ringleaders of the scheme, were sentenced on June 29 in Miami, Florida, by U.S. District Judge Joan Lenard of the Southern District of Florida, to 235 months and 96 months in prison, respectively, with an order for a forfeiture money judgment in the amount of over $4.4 million. Shepherd was also sentenced by Judge Lenard to 28 months in federal prison on the Florida indictment. Warrick, and Bush previously pleaded guilty to wire and mail fraud conspiracy charges in both indictments in Miami. Shepherd had also pleaded guilty to the Florida indictment. Stephenson pleaded guilty to the Texas indictment in Beaumont in January. Turner has pleaded guilty to the conspiracy charge in Beaumont and is awaiting sentencing. Wilbert Brown is detained awaiting trial in Beaumont in August.
This case was investigated by the Federal Bureau of Investigation; Department of Justice, Office of Inspector General, in Miami and New York region; U.S. Marshals Service; Houston Police Department- Major Offenders Division; United States Attorney’s Offices in the Eastern District of Texas, Southern District of Florida, and Eastern District of New York. The case is being prosecuted by Assistant U.S. Attorney Robert L. Rawls in the Eastern District of Texas and Anne McNamara in the Southern District of Florida.
Indianapolis man sentenced on robbery chargesRead the Press Release
Robbed a Marsh Supermarket and 10 Speedway Gas Stations
PRESS RELEASE
Indianapolis –United States Attorney Josh J. Minkler announced today that an Indianapolis man has been sentenced after pleading guilty to 22 counts related to recent robberies in the Indianapolis area. Donnell E. Gilder, 23, was sentenced to 420 months (35 years) by U. S. District Chief Judge Jane Magnus-Stinson for his role in robbing a Marsh Grocery store and 10 Speedway gas stations.
“Protecting our neighborhoods from violent crime is a top priority in my office,” said Minkler. “Mr. Gilder’s reign of terror at Indianapolis businesses is over and he will have 35 years in federal prison to think about his actions.”
Between February 29, 2016, and April 27, 2016, Gilder robbed 10 Speedway Gas Stations and a Marsh Supermarket on the Northeast side of Indianapolis. On two occasions, he discharged a handgun during the robbery.
According to court documents, on April 16, 2016, Gilder entered the Speedway station at 5415 E. 65th Street and discharged a round from his handgun into the ceiling. On April 27, 2016, at approximately 3:45am, Gilder approached the Speedway gas station located at 5900 E. 71st Street. The clerk, who was outside the building on a break saw Gilder approach dressed in all black. She quickly ran back into the store and locked the front door. Gilder discharged a handgun at the door, shattering the glass and narrowly missing the clerk.
Gilder was seen driving a stolen vehicle near the robbery scene a short time later when IMPD officers attempted to stop him, Gilder jumped from the vehicle while it was still in gear. The stolen vehicle continued rolling and struck the officer’s patrol car. Officers continued to chase Gilder and apprehended him a few blocks away. Officers recovered a loaded 9mm handgun from the pursuit route.
This case was investigated by the Indianapolis Metropolitan Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives.
“IMPD continues to rely on the relationships that we have with our federal, state and local law enforcement partners to assist in reducing violence in our community,” said IMPD Chief Bryan Roach. “On a daily basis, our officers and detectives work to protect the citizens of Indianapolis and Marion County and we appreciate and look forward to our continued collaboration in reducing crime in our neighborhoods.”
“This individual demonstrated his disregard for human life through his use of a firearm while committing numerous robberies,” stated Trevor Velinor, Special Agent in Charge for ATF’s Columbus Field Division. “His actions merit the sentence handed down, and ATF will continue to work with the IMPD, the United States Attorney’s Office, and all of our law enforcement partners, to ensure that those who threaten our communities face the consequences of their actions.”
Assistant U.S. Attorney Jeffrey D. Preston prosecuted this case for the government.
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INTERPOL Washington Participates in International Border SummitRead the Press Release
INTERPOL Washington—the U.S. National Central Bureau--participated in a panel discussion on border security during the International Summit on Borders held in Washington, D.C., on June 13-14, 2017.
The International Summit on Borders, sponsored by Clarion Events, brought together U.S. and international leaders from government and the private sector to explore the nexus between international trade and travel with homeland security and other transnational threats. Secretary of Homeland Security John F. Kelly opened the event with a keynote presentation entitled, “Global Border Issues: How Cooperation Can and Is Enhancing Security and Facilitation.”
Royce Walters, INTERPOL Washington Assistant Director for Counter-terrorism and Border Security, made brief remarks describing the role of INTERPOL and INTERPOL Washington, as well as the need for cooperation between the border security elements of individual countries to take advantage of the available tools.
INTERPOL offers all INTERPOL member countries, either individually or simultaneously, access to an encrypted, Internet-based virtual private network known as I-24/7. This system facilitates police-to-police interaction in real time on investigative matters ranging from simple criminal history checks to the sharing of vital criminal intelligence and investigative leads. It also provides an international communications link for processing humanitarian assistance requests involving threatened suicides, death notifications, and health and welfare checks.
Through INTERPOL Washington’s integrated information-sharing strategy, all U.S. law enforcement, border protection and consular officials have the ability to access the international criminal databases maintained by INTERPOL. These databases include information on wanted and missing persons, terrorists, stolen and lost travel documents, and stolen vehicles, among other data.
Walters emphasized the importance of increasing and enhancing individual countries’ access to I-24/7. He suggested that border security networks can be strengthened when countries collect data for, contribute data to, and capitalize on the data available through INTERPOL’s networks. Biometric and stolen and lost travel documents (SLTD) data are critical to effective border security efforts to stop transnational criminals and foreign terrorist fighters. “We know of instances in which the ability to scan travel documents at a country’s border could have enabled a timely arrest of an international criminal. This is why it is critical to make these data available to police and border security officials worldwide,” he said.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Photograph courtesy of Customs and Border Protection. A Customs and Border Protection officer checks a passenger’s documentation after arrival into the United States.Honduran National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Honduran man was sentenced today in federal court in Boston for illegally reentering the United States after deportation.
Rumeni D. Romero, 32, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to 42 months in prison and three years of supervised release. Romero will be subject to deportation upon completion of his sentence. In April 2017, Romero pleaded guilty to one count of illegal reentry of a deported alien.
In January 2017, Romero was encountered by law enforcement in Chelsea and determined to be illegally present in the United States. Between 2006 and 2013, Romero was deported four times.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Hingham Man Sentenced for Defrauding InvestorsRead the Press Release
BOSTON – A Hingham man was sentenced today in federal court in Boston for defrauding neighbors and other acquaintances of approximately $437,000.
Stephen S. Eubanks, 48, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 30 months in prison, three years of supervised release, and ordered to pay $437,609 in restitution to his victims. In April 2017, Eubanks pleaded guilty to one count of wire fraud.
In February 2010, Eubanks opened Eubiquity Capital LLC, a hedge fund that took in over $700,000 in investor funds by 2016. Eubanks was previously a registered broker with several large brokerage firms, but was terminated in the wake of customer complaints and other disciplinary issues. In 2013 and 2014, Eubanks nonetheless presented himself to acquaintances as a financial advisor running a hedge fund affiliated with Goldman Sachs, TD Ameritrade, UBS Bank and Fidelity Investments. One of the acquaintances invested $125,000 with Eubanks, while the other invested $20,000. In 2013, a Florida resident invested $50,000 with Eubanks.
Eubanks, who defrauded over 20 people, invested some of his clients’ funds, but used a significant portion for personal expenses. Moreover, when asked for account statements summarizing the fund’s performance, Eubanks fabricated account statements or used account statements from unrelated accounts to deceive his clients into believing that their money had earned a healthy return. In some instances, Eubanks ran the fund as a Ponzi scheme, using money deposited with him by newer investors to pay returns to earlier investors.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Massachusetts Securities Division, which conducted an earlier civil investigation of Eubanks, provided significant assistance to the U.S. Attorney’s Office. Assistant U.S. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit prosecuted the case.
Heroin Trafficker Convicted of Distributing More Than Five Kilograms of Heroin in Operation Dirty BirdRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced the conviction of a multi-kilogram heroin trafficker from Ascension Parish who distributed more than five kilograms of heroin between February and April of 2016. Jason Muse pled guilty to 20 counts of a federal indictment charging him and 17 others in Operation Dirty Bird, an extensive federal, state, and local investigation aimed at dismantling a large scale heroin trafficking network based in Ascension Parish, Louisiana, and Houston, Texas.
On July 11, 2017, Jason Muse, age 37, formerly of Prairieville, Louisiana, pled guilty to conspiracy to distribute and possess with the intent to distribute heroin, two counts of distribution of heroin, possession of a firearm in furtherance of a drug trafficking crime and 16 counts of unlawful use of a communications facility in committing distribution and possession with intent to distribute heroin.
As Muse acknowledged during his guilty plea, beginning in September 22, 2015, and continuing until April of 2016, he conspired with others to obtain and distribute large quantities of heroin. Specifically, Muse admitted to obtaining a half of a kilogram of heroin on February 10, 2016, and kilograms of heroin on February 23, 2016, March 6, 2016, March 20, 2016, and March 25, 2016. Muse further admitted to possessing on April 1, 2016, in his residence in Prairieville, heroin for distribution, a loaded Smith and Wesson .40 caliber pistol, two digital scales, a money counter, and a metal hydraulic press and also possessing in the trunk of his 2007 Mercedes CLS550, $109,306 in drug proceeds, additional heroin, crack cocaine, oxycodone and four handguns.
Muse faces a mandatory sentence of not less than 10 years or more than life for the drug conspiracy count [21 U.S.C. § 841(a)(1)] and an additional mandatory sentence of not less than five years or more than life for the firearm possession in furtherance of the drug trafficking conspiracy [18 U.S.C. § 924(c)], for a mandatory minimum sentence of 15 years to life.
Acting U.S. Attorney Amundson stated, “Every community and every person deserves peace, security, and freedom from the tyranny of armed drug traffickers. This is one of the many reasons that drug trafficking is, and will continue to be, a top priority for my office and the U.S. Department of Justice. I commend the diligent and outstanding efforts of all the prosecutors and agents who have worked on this important matter.”
This investigation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the Ascension Parish Sheriff’s Office, the Iberville Parish Sheriff’s Office, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Louisiana State Police, and the Gonzales Police Department. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
Heroin Dealer Sentenced in White Plains Federal Court to over 8 Years in Prison for Distributing Heroin Connected to Overdose DeathRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ANTHONY DELOSANGELES, a/k/a “Taco,” was sentenced today to over eight years in prison for selling heroin, some of which substantially contributed to the overdose death of one of DELOSANGELES’s customers. DELOSANGELES pled guilty on March 17, 2017, to one count of conspiracy to distribute more than 100 grams of heroin. He was sentenced today in White Plains federal court by U.S. District Court Judge Kenneth M. Karas.
Acting U.S. Attorney Joon H. Kim stated: “Anthony Delosangeles sold heroin to a young man he knew had just left a drug rehabilitation program. The same day, that young man used the heroin Delosangeles sold him, overdosed, and died. The epidemic of opioid abuse is devastating our communities, costing human lives, and ripping families apart. This Office will aggressively pursue cases against dealers who fuel this deadly epidemic.”
According to the Indictment filed in White Plains federal court as well as public court filings and statements made in connection with the plea and sentencing proceedings:
From at least in or about May 2015 up to and including in or about February 2016, in the Southern District of New York and elsewhere, DELOSANGELES and others conspired to sell at least 100 grams of heroin. One of the DELOSANGELES’s customers was a 25-year-old man named Thomas Cipollaro. On November 3, 2015, Mr. Cipollaro, who had just finished a period in a rehabilitation treatment center for his heroin addiction, texted DELOSANGELES, asking to buy heroin. During the ensuring text exchange, DELOSANGELES learned that Mr. Cipollaro had just completed a drug rehabilitation program and that Mr. Cipollaro planned to use the heroin he was about to purchase immediately. DELOSANGELES also bragged to Mr. Cipollaro that his heroin was particularly strong.
Later that same day, Mr. Cipollaro was found unresponsive in his car with 15 empty glassine baggies, consistent with bags used to package heroin, near his body. Despite efforts to revive him, Mr. Cipollaro remained in a coma for the next several days and then died. Autopsy and toxicology reports revealed that Mr. Cipollaro had heroin in his system, which substantially contributed to his death. Even after learning of Mr. Cipollaro’s overdose death, DELOSANGELES continued to sell heroin to customers in and around Westchester County, New York.
DELOSANGELES, 20, of Tarrytown, New York, has already served approximately 13 months of his sentence and will serve an additional 84 months in custody from the date of his sentencing. In addition to his prison term, DELOSANGELES was sentenced to four years of supervised release and forfeited approximately $30,000 in cash drug proceeds, which were seized during the investigation.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation, the Drug Enforcement Administration, the Yorktown Police Department, the Westchester County District Attorney’s Office, and the Westchester County Department of Public Safety.
The prosecution of this case is being handled by the Office’s White Plains Division. Assistant United States Attorney Maurene Comey is in charge of the case.
Grape Street Crips Associate Sentenced to 20 Years in Prison for Committing Murder During Home-Invasion RobberyRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 240 months in prison for his involvement in an August 2015 home invasion that left one person dead, Acting U.S. Attorney William E. Fitzpatrick announced.
Jahad Lemons, a/k/a “JBird,” 26, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an indictment charging him with one count of murder during a crime of violence, one count of Hobbs Act robbery conspiracy, one count of Hobbs Act robbery, and one count of using a firearm during a crime of violence. Judge Arleo imposed the sentence today in Newark federal court.
According to the indictment:
On Aug. 18, 2015, Lemons, his co-defendants, Aaron Terrell, a/k/a “Push,” 26, and Papayaw Mack, a/k/a “GY,” 26, and two other individuals – referred to in the indictment as “CC-1” and “CC-2” – allegedly used firearms to rob the apartment of an individual referred to in the indictment as “Victim-1” at a residential building in Newark. They targeted Victim-1 because they believed Victim-1was a heroin trafficker whose residence contained narcotics and related proceeds.
Lemons, Terrell, Mack, CC-1, and CC-2 allegedly surrounded Victim-1, forced him into his apartment, and then proceeded to rob at gunpoint Victim-1 – as well as Victim-2 and Victim-3, who were already inside the apartment – of cash and personal effects. Terrell and CC-2 allegedly discharged their firearms, which killed Victim-1 and seriously wounded Victim-2.
All three men were originally charged by the Essex County Prosecutor’s Office with murder and robbery. On Aug. 26, 2015, Terrell was arrested by the Newark Police Department, while Lemons was arrested in Georgia on Oct. 26, 2015. Mack remains at large. Terrell is also facing separate federal charges in a sixth superseding indictment for his participation in a racketeering conspiracy related to the New Jersey set of the Grape Street Crips, a violent street gang operating in Newark.
In addition to the prison term, Judge Arleo sentenced Lemons to five years of supervised release.
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 leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, and police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, for their assistance.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the indictment are merely accusations, and Terrell and Mack are presumed innocent unless and until proven guilty.
Four More Members of ATM Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Plead GuiltyRead the Press Release
Four members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; and Acting Special Agent in Charge Brian A. Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark Division made the announcement.
Marcel Peckham, 43, of Little Neck, New York; Catalin Mihai Dragomir, 33, of Glendale, New York; Eduard Vasilica Ticu, 32, of Glendale; and Silvester Florentin Papp, 25, of Ridgewood, New York, pleaded guilty before U.S. District Judge Esther Salas to separate informations charging them each with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Peckham, Dragomir, Ticu, Papp, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Peckham admitted providing counterfeit ATM cards to other conspirators, knowing that they were going to use them to withdraw cash from compromised bank accounts at ATMs in New Jersey. Dragomir, Ticu, and Papp each admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing for all four defendents is set for Oct. 23, 2017.
Joel Abel Garcia, Victor A. Hanganu, and Radu Bogdan Marin also pleaded guilty to their roles in the scheme and await sentencing. To date, seven of the 13 defendants charged in this matter have been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The prosecution is being handled by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Four More Members of Atm Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Plead GuiltyRead the Press Release
NEWARK, N.J. – Four members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Acting Special Agent in Charge Brian A. Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark Division made the announcement.
Marcel Peckham, 43, of Little Neck, New York; Catalin Mihai Dragomir, 33, of Glendale, New York; Eduard Vasilica Ticu, 32, of Glendale; and Silvester Florentin Papp, 25, of Ridgewood, New York, pleaded guilty before U.S. District Judge Esther Salas to separate informations charging them each with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Peckham, Dragomir, Ticu, Papp, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Peckham admitted providing counterfeit ATM cards to other conspirators, knowing that they were going to use them to withdraw cash from compromised bank accounts at ATMs in New Jersey. Dragomir, Ticu, and Papp each admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing for all four defendents is set for Oct. 23, 2017.
Joel Abel Garcia, Victor A. Hanganu, and Radu Bogdan Marin also pleaded guilty to their roles in the scheme and await sentencing. To date, seven of the 13 defendants charged in this matter have been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Defense counsel:
Peckham: Howard B. Brownstein Esq., Union City, New Jersey
Dragomir: Timothy Michael Donohue Esq., West Orange, New Jersey
Ticu: Tejinder Bains Esq., Forest Hills, New York
Papp: Stacy A. Biancamano Esq., Cranford, New Jersey
Former President of Alaska Railroad Workers Union Sentenced for Embezzlement of Union FundsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that the former President of the Alaska Railroad Workers Union was sentenced in federal court in Anchorage today to serve one year and a day in federal prison for embezzling approximately $92,000 in union funds.
Jeffrey W. Davies, 43, of Wasilla, served as the President of the union between 2006 and 2014. According to Assistant U.S. Attorney Joseph Bottini, Davies began embezzling union money in 2011 and continued to steal or misapply union funds for his personal benefit until 2014 when the embezzlement was discovered. Following an investigation by the Federal Bureau of Investigation, it was determined that Davies had embezzled over $90,000 of union money in a three-year period of time. Davies was charged last year with felony embezzlement, and plead guilty in May of last year to stealing the funds.
In sentencing Davies to just over a year in federal prison, U.S. District Judge Sharon L. Gleason rejected Davies’ request that he be sentenced to a term of probation, noting that the embezzlement had taken place over a long period of time, and that Davies had grossly abused his position of trust with his fellow union members. Judge Gleason also ordered Davies to pay restitution to the Alaska Railroad Workers Union in the amount of $92,766.00, and directed that he pay a first installment of $3,000.00 of that amount by the end of this week, with payments of $1,500.00 per month thereafter. Following service of his jail sentence, Davies will be on supervised release for a period of three years and his compliance with paying the ordered restitution will be monitored by the United States Probation Office in Anchorage.
Mr. Schroder commends the Federal Bureau of Investigation for the investigation of this case, and also commends the assistance provided by the present management of the Alaska Railroad Worker’s Union.
Former HARC Chief Financial Officer SentencedRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced the former Chief Financial Officer for Hillsborough Achievement and Resource Centers (HARC), Frank Pannullo (71, Land O’ Lakes), to two years in federal prison for his role in a conspiracy to make false statements to the Social Security Administration (“SSA”). The Court also ordered him to pay $617,435.19 in restitution, jointly and severally with other related defendants, and to serve a three-year term of supervision following his release from prison.
According to court documents and trial testimony in a related case, the HARC, formerly the Hillsborough Association for Retarded Citizens, was established in 1953 to positively impact the future for all people living with developmental disabilities, such as Alzheimer’s disease and Down syndrome. HARC opened and operated group homes that served its target client population. HARC also spearheaded various community programs for its clients focused on inclusion activities for youth, adults, and seniors with disabilities.
Many of the HARC clients received SSA benefits due to various developmental disabilities. For certain HARC clients who lacked the capacity to manage their own SSA benefits, SSA approved one or more HARC officials to act as a “Representative Payee” to receive a particular client’s benefits and to use them exclusively for that client’s benefit. As a Representative Payee, the HARC official was required to complete and submit to the SSA a “Representative Payee Report” that included certain information about each HARC client’s living situation and the financial benefits received and expended on behalf of that client.
Pannullo began working at HARC in 1998 as HARC’s Comptroller and was thereafter elevated to Chief Financial Officer (CFO). While working in that capacity, Pannullo, HARC Chief Executive Officer (CEO) Richard Lilliston, and others, orchestrated a scheme whereby HARC client funds, purportedly saved solely for HARC’s developmentally disabled clients’ needs and use in a HARC bank account dubbed the “Endowment Account,” had been and were being wrongfully diverted from the clients to the HARC operating account for other purposes.
In an effort to conceal that HARC client funds were being wrongfully diverted from the developmentally disabled clients and to make it appear as if HARC’s Endowment Account had been properly established and maintained, CEO Lilliston, in November 2009, directed Pannullo and HARC’s Comptroller to secure signatures from the developmentally disabled HARC clients on a document backdated to 2007, titled “Pooled Trust Joinder Agreement.” Pannullo and HARC’s Comptroller did as instructed, knowing that the HARC clients who signed the Pooled Trust Joinder Agreement document did not have the capacity necessary to understand the import of the document. Notwithstanding, CEO Lilliston, CFO Pannullo, and other HARC employees signed the backdated agreements.
In June 2013, the U.S. Attorney’s Office filed a Verified Complaint for Forfeiture In Rem in a related case (Case No. 8:13-cv-1601-T-17TBM), seeking the forfeiture of $87,000 held in a Synovus Bank account. That complaint raised like allegations that HARC clients’ SSA benefits had been wrongfully diverted from the clients and used by HARC for other purposes and was supported by facts contained in the sworn affidavit of a special agent with the U.S. Department of Health and Human Services - Office of Inspector General. On September 30, 2013, the district court entered a Default Judgment of Forfeiture in which the court ordered the forfeiture of the $87,000 to the United States.
This case was investigated by the Social Security Administration - Office of the Inspector General, the U.S. Department of Health and Human Services - Office of Inspector General, and the Florida Department of Law Enforcement, along with the State of Florida’s Department of Financial Services - Office of Fiscal Integrity. It was prosecuted by Assistant United States Attorney Jay G. Trezevant.
Five Sentenced for Robbing the Amarillo Education Credit UnionRead the Press Release
AMARILLO, Texas — Five defendants appeared in federal court this week and were sentenced for their roles in robbing the Education Credit Union in Amarillo, Texas on September 23, 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge Sidney A. Fitzwater sentenced Leonard Jovon Coulter, 29, Raul Garcia, 28, and Desire Valverde, 23, this afternoon. Coulter was sentenced to a total of 171 months in federal prison. Garcia was sentenced to a total of 147 months in federal prison and Valverde was sentenced to 97 months in federal prison.
Yesterday U.S. District Judge Fitzwater sentenced Richard Charles Cunningham, Jr., 39, to 169 months in federal prison and Keli Edwards, 35, to 21 months in federal prison.
Cunningham was ordered to pay $26,724.50 in restitution and the remaining defendants were ordered to pay $53,519.50 in restitution, joint and severally.
According to the plea documents, on September 23, 2016, Coulter and Cunningham Jr. entered the Education Credit Union located at 1801 FM 2381, Amarillo, Texas. Coulter approached the teller counter, pointed a firearm at the teller, and told the teller to give him all her money in the drawer. Coulter told the teller to not do or push anything or he would shoot her. The teller
told Coulter the drawers were locked. Coulter jumped the counter, pressed the firearm in the teller’s back, and told the teller to hurry. Coulter got money out of the teller’s drawer, and then he demanded access to the vault. The teller stated she could not access the vault.
The manager was then ordered to come and open the vault. After Coulter took the money from the vault, the tellers and manager were ordered to the ground. Coulter and Cunningham exited the Credit Union with approximately $60,067.
The Federal Bureau of Investigation (FBI) and Potter County Sheriff’s office investigated the robbery. Agents learned through their investigation that Garcia was a get-a-way driver and planned this robbery with Coulter and Cunningham. Later, agents stopped Garcia in his pickup and located $5,020 in United States Currency packaged in Education Credit Union bank bands. Agents also recovered two firearms in Garcia’s vehicle, including the firearm Coulter used during the robbery.
Agents conducted a search warrant on Garcia’s residence. Agents located a backpack that had $23,890 in United States Currency, and some of the bills were packaged with Education Credit Union bank bands.
Later, FBI agents learned that Garcia and Coulter were involved in another Education Credit Union Robbery on May 25, 2016. Agents learned through their investigation that Valverde, an employee of Education Credit Union at the time, helped Garcia plan both robberies by providing Garcia information of how and when to commit each robbery. FBI agents discovered that Valverde was in contact with Garcia by phone during each robbery. On May 25, 2016, Valverde was working as a teller and gave Coulter money from her drawer. Garcia paid Valverde a portion of the money taken from the Education Credit Union robbery on May 25, 2016, for her help.
According to plea documents filed in Edwards’ case, Edwards was Coulter’s girlfriend and was watching out for law enforcement on September 23, 2016, when Coulter and Cunningham entered the Credit Union to commit the robbery. Edwards drove Cunningham away from the Credit Union after the robbery to Garcia’s vehicle. Cunningham, Coulter, and Garcia met at Edwards’ residence prior to the robbery and discussed committing the robbery.
The FBI, Amarillo Police Department, the Potter County District Attorney’s Office and the Potter County Sheriff’s Department investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
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Final Member of Credit Card Fraud Conspiracy Pleads GuiltyRead the Press Release
Roanoke, VIRGINIA – The sixth member of a conspiracy that targeted rural communities in the southeast to commit credit card fraud and aggravated identity theft pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Quentin Bruce pled guilty yesterday to one count of conspiracy to commit access device fraud and one count of aggravated identity theft. Previously, five other co-conspirators, Keyshawn Berchel Hunter, 27, of Florence, S.C., Daquan Damese James, 24, of Darlington, S.C., Roland Marcell Bruce, 23, of Darlington, S.C. and Markese Davon Robinson, 21, of Darlington, S.C., each pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft. A fifth defendant, Markese Tyshawn James, 22, of Darlington, S.C., pled guilty to one count of conspiracy to commit access device fraud.
According to evidence presented during previous hearings by Assistant United States Attorney Ashley B. Neese, authorities in Pearisburg, Virginia responded to the Pearisburg Wal-Mart for a report of several males attempting to use multiple debit cards that make purchases that were declined. A loss prevention employee noted that he observed the same males in the store a week earlier, attempting the same scheme and gave authorities a description of the subjects vehicle.
Authorities located a vehicle matching the description given by the Wal-Mart employee parked nearby and approached it, noticing the strong smell of marijuana as they did. Based on the smell of marijuana, police searched the vehicle and recovered a bag of green leafy material near the driver’s seat, 16 Visa debit cards. Additional search of the occupants of the vehicle recovered 40 Visa gift cards in the van’s center console and 52 Visa gift cards, one credit card skimmer and one HP laptop computer elsewhere in the van. Forensic examination by the United States Secret Service performed later revealed that 89 of those cards were re-encoded with stolen credit card numbers.
Additionally, one of the conspirators admitted the group targeted Wal-Mart stores in the southeast because the store wanted to keep the lines moving, which worked to their advantage.
The investigation of the case was conducted by the United States Secret Service, the Pearisburg Police Department, and the Giles County Sheriff’s Office. The Office of the Commonwealth Attorney for Giles County also assisted with the overall prosecution. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Final Defendant Pleads Guilty in Crack Cocaine Distribution ConspiracyRead the Press Release
ALEXANDRIA, Va. – The sixth and final defendant in a multi-state crack cocaine and firearms distribution investigation pleaded guilty today to his role in the conspiracy. As part of this case, ATF Agents and the Prince William County Police seized more than 20 firearms and 800 grams of crack.
According to the statement of facts filed with the plea agreement, Steve Pate, 41, of Shannon, North Carolina, engaged in a conspiracy to distribute crack cocaine from at least May 2016 through February 2017. As part of the conspiracy, Pate would purchase cocaine, which he would prepare into crack. Pate would then supply the crack to co-conspirators Jerry Bullard and Cedric McEachern, who sold the drugs from a trailer in Robeson County, North Carolina.
As part of the conspiracy, co-conspirators Kristie Middleton and Kevin Shaw traveled from Virginia to purchase multi-ounce quantities of crack from Bullard and McEachern, and firearms from Bullard. Middleton and Shaw then returned to Dale City, where they redistributed the crack and possessed and sold firearms alongside co-defendant Nifer McLaurin. See the table below for information on each defendant in this case.
Name, Age
Hometown
Pleaded Guilty to
Sentencing
Nifer McLaurin, 20
Dale City
Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 5 years on March 24
Kevin Shaw, 42
Dale City
Conspiracy to distribute 28 grams or more of cocaine base; Using and carrying a firearm in furtherance of a drug trafficking offense
Sentenced to 10 years on March 31
Cedric McEachern, 41
Red Springs, North Carolina
Conspiracy to distribute 28 grams or more of cocaine base
Sentenced to 10 years on June 30
Jerry Bullard, 37
Shannon, North Carolina
Conspiracy to distribute 280 grams or more of cocaine base; Using and carrying a firearm in furtherance of a drug trafficking offense
Facing mandatory minimum of 15 years in prison on July 21
Kristie Middleton, 40
Dale City
Conspiracy to distribute 280 grams or more of cocaine base; Using and carrying a firearm in furtherance of a drug trafficking offense
Facing mandatory minimum of 15 years in prison on August 4
Steve Pate, 41
Shannon, North Carolina
Conspiracy to distribute 280 grams or more of cocaine base
Facing mandatory minimum of 10 years in prison on October 13
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 Stephan M. Hudson, Chief of Prince William County Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Tobias D. Tobler is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-149.
Federal Officials Close Review of Fatal Shooting of John Crawford IIIRead the Press Release
DAYTON, OHIO – The Civil Rights Division of the Justice Department and the U.S. Attorney’s Office for the Southern District of Ohio announced today that they have completed a thorough, independent investigation into the fatal shooting of John Crawford III on August 5, 2014, by Beavercreek Police Officer Sean Williams at the Wal-Mart in Beavercreek, Ohio. This investigation revealed that the evidence is insufficient to prove, beyond a reasonable doubt, that Officer Williams violated federal civil rights laws. Accordingly, the Civil Rights Division of the Justice Department and U.S. Attorney’s Office for the Southern District of Ohio will not pursue federal criminal civil rights charges against Officer Williams.
Justice Department officials have notified Mr. Crawford’s family of this decision.
The investigation was conducted by career investigators and prosecutors, and included a review of voluminous materials, including the investigative reports generated by the Beavercreek Police Department and the Ohio Bureau of Criminal Investigation; forensic evidence reports; the autopsy report; photographs of the crime scene; toxicology reports; and EMS reports. Federal officials collected and carefully analyzed all available footage from Wal-Mart’s in-store video surveillance system using resources at the FBI laboratory in Quantico, Va. Prosecutors also obtained assistance from an independent crime scene reconstruction expert to aid in understanding the exact perspectives held by the officers who confronted Mr. Crawford. In addition, the FBI conducted its own interviews of relevant witnesses, including interviews with personnel at the Beavercreek Police Department who were responsible for training Officer Williams.
In conducting the review, federal authorities were tasked with determining whether Officer Williams violated federal law by willfully using unreasonable force against Mr. Crawford. Under the applicable federal criminal civil rights statute, prosecutors would be required to establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived Mr. Crawford of a constitutional right. To establish willfulness, federal authorities would be required to show that the officer acted with the deliberate and specific intent to do something the law forbids. This is one of the highest standards of intent imposed by law. Mistake, misperception, negligence, necessity, or poor judgment are not sufficient to establish a federal criminal civil rights violation.
Based on a legal analysis of the investigative materials, the Civil Rights Division and the U.S. Attorney have concluded that there is insufficient evidence to establish that Officer Williams acted with the requisite criminal intent necessary to pursue a federal prosecution. To establish that Officer Williams acted willfully, the government would be required both to disprove his stated reason for the shooting – that he was in fear of death or serious bodily injury – and to affirmatively establish that Officer Williams instead acted with the specific intent to violate Mr. Crawford’s rights. The evidence here simply cannot satisfy those burdens. Accordingly, the review into this incident has been closed without prosecution.
The Civil Rights Division, the U.S. Attorney’s Office, and the FBI are committed to investigating allegations of civil rights violations by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Jury Returns Sentence of Life Imprisonment for Murder of a Federal Correctional OfficerRead the Press Release
A federal jury in Scranton returned a verdict yesterday of life in prison for Jessie Con-Ui, 40, a federal inmate, for the first-degree murder of U.S. Correctional Officer Eric Williams. Senior U.S. District Court Judge A. Richard Caputo scheduled the formal imposition of the life sentence for October 12.
Attorney General Jeff Sessions of the Justice Department; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania made the announcement.
On June 7, 2017, the same jury convicted Con-Ui of “willfully, deliberately, maliciously, and with premeditation and malice aforethought” killing Officer Williams while he was engaged in the performance of his duties at the Canaan Federal Correctional Complex, U.S. Penitentiary, in Waymart, Pennsylvania, on Feb. 25, 2013.
The evidence at trial established that Con-Ui, armed with two sharpened weapons (commonly known as “shanks”), positioned himself at the top of a metal stairway as Correctional Officer Williams ascended the stairway leading to the second floor of a housing unit within the prison. Con-Ui kicked Correctional Officer Williams down the stairs and then stabbed him over 200 times with the weapons. Con-Ui also repeatedly kicked and stomped on Correctional Officer Williams, causing massive fatal injuries.
At the time of the murder, Con-Ui was serving an 11-year federal sentence for conspiracy to possess with intent to distribute more than 5 kilograms of cocaine, imposed by the United States District Court for the District of Arizona in 2005. Con-Ui was also serving a concurrent life sentence for first-degree murder imposed by the Maricopa County Superior Court, Phoenix, Arizona, in 2008 for the 2002 murder of Carlos Garcia in Phoenix, Arizona.
“I extend my sincere condolences to Officer Williams’s family, colleagues, and friends. The murder of a dedicated public servant in the line of duty, under such heinous circumstances, strikes at the core and soul of our nation,” said Acting Assistant Attorney General Blanco. “We hope and pray that Officer Williams’s family will find some closure with the conclusion of these proceedings, and knowing that his dedicated service will always be remembered by a grateful nation.”
“We are extremely disappointed with the jury’s verdict, but I want to highlight the outstanding work of all the men and women who worked on this case for over four years,” said U.S. Attorney Brandler. “The Phoenix, Arizona Division of the Federal Bureau of Investigation; the Phoenix Police Department; the Phoenix Department of Corrections; the Phoenix Juvenile Justice Office; the Federal Bureau of Investigation Laboratory in Quantico, Virginia; the Scranton, Pennsylvania Division of the Federal Bureau of Investigation; the Federal Bureau of Prisons; the U.S. Attorney’s Office Victim-Witness Unit and legal support staff; and Assistant United States Attorneys Fran P. Sempa and Robert J. O’Hara and Department of Justice Capital Case Section Trial Attorney Robert J. Feitel, all performed their roles in exemplary fashion and deserve our appreciation for their tireless efforts in the prosecution of this case.”
“A correctional officer has one of the most dangerous jobs in law enforcement. Eric Williams was performing that job at USP Canaan, when was he blindsided and brutalized by Jessie Con-Ui,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The heinous violence inflicted upon Correctional Officer Williams cost a dedicated federal officer his life. At the Philadelphia FBI, our hearts go out to the Williams family and all who knew and loved Eric.”
At the time of his death, Officer Williams was 34 years old, and a resident of Wapwallopen, Pennsylvania.
The charges against Con-Ui resulted from an investigation by the FBI, with assistance from the Federal Bureau of Prisons. The case is being prosecuted by the Criminal Division’s Capital Case Section and the U.S. Attorney’s Office for the Middle District of Pennsylvania.
Federal Jury Returns Sentence of Life Imprisonment for Murder of A Federal Correctional OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal jury in Scranton returned a verdict yesterday for life imprisonment for Jessie Con-Ui, age 40, a federal inmate, for the first-degree murder of U.S. Correctional Officer Eric Williams. Senior U.S. District Court Judge A. Richard Caputo scheduled the formal imposition of the life sentence for October 12, 2017.
According to United States Attorney Bruce D. Brandler, on June 7, 2017, the same jury convicted Con-Ui of “willfully, deliberately, maliciously, and with premeditation and malice aforethought” killing Officer Williams while he was engaged in the performance of his duties at the Canaan Federal Correctional Complex, United States Penitentiary, in Waymart, Pennsylvania, on February 25, 2013.
The evidence at trial established that Con-Ui, armed with two sharpened weapons (commonly known as “shanks”), positioned himself at the top of a metal stairway as Correctional Officer Williams ascended the stairway leading to the second floor of a housing unit within the prison. Inmate Con-Ui kicked Correctional Officer Williams down the stairs and then stabbed him over 200 times with the weapons. Con-Ui also repeatedly kicked and stomped on Correctional Officer Williams causing massive fatal injuries.
At the time of the murder, Con-Ui was serving an 11-year federal sentence for conspiracy to possess with intent to distribute more than 5 kilograms of cocaine, imposed by the United States District Court, in Phoenix, Arizona, in 2005. Con-Ui was also serving a concurrent life sentence for first-degree murder imposed by the Maricopa County Superior Court, Phoenix, Arizona, in 2008. In connection with that event, Con-Ui shot and killed Carlos Garcia on August 25, 2002, in Phoenix, Arizona.
At the time of his death, Correctional Officer Eric Williams was 34-years-old, and a resident of Wapwallopen, Pennsylvania.
“A correctional officer has one of the most dangerous jobs in law enforcement. Eric Williams was performing that job at USP Canaan, when was he blindsided and brutalized by Jessie Con-Ui,” said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division.” The heinous violence inflicted upon Correctional Officer Williams cost a dedicated federal officer his life. At the Philadelphia FBI, our hearts go out to the Williams family and all who knew and loved Eric.”
“We are extremely disappointed with the jury’s verdict, but I want to highlight the outstanding work of all the men and women who worked on this case for over four years,” said United States Attorney Brandler. “The Phoenix, Arizona Division of the Federal Bureau of Investigation, the Phoenix Police Department, the Phoenix Department of Corrections, and the Phoenix Juvenile Justice Office; the Federal Bureau of Investigation Laboratory in Quantico, Virginia; the Scranton, Pennsylvania Division of the Federal Bureau of Investigation, the Federal Bureau of Prisons, the U.S. Attorney’s Office Victim-Witness Unit and legal support staff, and Assistant United States Attorneys Fran P. Sempa and Robert J. O’Hara and Department of Justice Capital Case Section Attorney Robert J. Feitel, all performed their roles in exemplary fashion and deserve our appreciation for their tireless efforts in the prosecution of this case.”
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Federal Jury Convicts TSA Officer of Drug Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – On Friday, July 7, 2017, a federal jury handed down a guilty verdict against former TSA officer Jamie Blunder, 48, of Charlotte, convicting him of drug conspiracy and firearms offenses for his involvement in a drug trafficking network operating in Charlotte and Greensboro, N.C., announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina and Harold Scott, Jr., Special Agent in Charge, Office of Inspection - Washington Field Office of the Department of Homeland Security’s Transportation Security Administration (TSA) join U.S. Attorney Rose in making today’s announcement.
According to court documents, evidence presented at trial and witness testimony, beginning in at least December 2015, Blunder was the leader of a drug conspiracy network responsible for trafficking cocaine, crack cocaine and other controlled substances in Charlotte, Greensboro, and elsewhere. Trial evidence established that while Blunder did not utilize the Charlotte Douglas Airport to traffic narcotics, he did engage in drug dealing while dressed in his TSA uniform. In addition, court records indicate that Blunder relied on his TSA position to avoid law enforcement detection while travelling to, within, and back from the Jamestown, High Point, and Greensboro areas. Over the course of the investigation, law enforcement also seized at least two kilograms of cocaine, eight firearms, more than $130,000 in cash, drug paraphernalia and packaging material consistent with kilogram-quantity cocaine wrapping and packaging, as well as thousands of dollars in expensive watches and jewelry.
Blunder remains in federal custody. The drug trafficking conspiracy charge carries a maximum penalty of life in prison and a $10 million fine. The possession of a firearm in furtherance of a drug trafficking crime charge carries a maximum term of life in prison and a $250,000 fine. A sentencing date for the defendant has not been set.
Blunder’s co-codefendants, Dave Pate, Alafia Fowlkes, Samuel Little, Irvin Lampley, Aaron Dixon, Dennis Harrington, and Willie Nevius are also in federal custody on federal drug trafficking and are all pending sentencing.
U.S. Attorney Rose thanked the FBI for leading the investigation and TSA for their assistance with this case. Assistant U.S. Attorneys Dana Washington and Lambert Guinn of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Farmington Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Rupesh Bhakta, 39, of Farmington, N.M., was sentenced today in federal court in Albuquerque, N.M., to 24 months in prison for his methamphetamine trafficking conviction. He will be on supervised release for three years after completing his prison sentence.
Bhakta was arrested on March 4, 2016, on a criminal complaint charging him with trafficking methamphetamine in San Juan County, N.M. According to the complaint, Bhakta sold approximately 57 grams of methamphetamine to an undercover law enforcement agent on Feb. 16, 2016.
Bhakta and co-defendant David Kingsbeck, 43, also of Farmington, were subsequently indicted on March 23, 2016. The indictment charged Kingsbeck with being a felon in possession of a firearm on July 1, 2015 and Dec. 30, 2015, and distributing heroin on Dec. 30, 2015. It also charged and Kingsbeck with conspiracy and distributing methamphetamine on Feb. 16, 2016. According to the indictment, the defendants committed the crimes in San Juan County. Kingsbeck was prohibited from possessing firearms and ammunition because of his prior felony convictions for criminal conspiracy theft and escape attempt from felony.
On Dec. 8, 2016, Bhakta pled guilty to an information charging him with distributing methamphetamine. In entering the guilty plea, Bhakta admitted that on Feb. 16, 2016, he distributed methamphetamine to an undercover law enforcement agent.
On Dec. 19, 2016, Kingsbeck pled guilty to distributing heroin and being a felon in possession of a firearm and ammunition. In his plea agreement, Kingsbeck admitted selling 12.8 grams of heroin and a firearm and ammunition to an undercover law enforcement agent on Dec. 29, 2015. Kingsbeck acknowledged that he was prohibited from possessing firearms or ammunition on Dec. 29, 2015, because of his status as a convicted felon. Kingsbeck was sentenced on May 1, 2017, to 37 months in prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorney Rumaldo R. Armijo prosecuted the case.
Fall River Man Pleads Guilty to Federal Drug OffensesRead the Press Release
BOSTON – A Fall River man pleaded guilty yesterday in federal court in Boston to his role in a heroin and fentanyl trafficking operation in Taunton and surrounding communities.
Christian Sostre, 23, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin and fentanyl. U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for Oct. 10, 2017.
After a 15-month investigation, Sostre and 24 others were arrested and charged in October 2015 in connection with a heroin trafficking ring led by Dedwin Cruz-Rivera operating primarily in southeastern Massachusetts. An April 2016 superseding indictment brought the total number of defendants charged to 26.
Sostre assisted co-defendant Dedwin Cruz-Rivera, who is scheduled to change his plea on July 14, 2017, with all aspects of the drug trafficking operation. Sostre took delivery of illegal narcotics, helped prepare the drugs for resale, delivered money to pay for drugs, collected money from the operation’s customers, and drove Cruz-Rivera to various locations in connection with the drug trafficking.
All but three of the conspirators charged have pleaded guilty and 14 of the defendants have already been sentenced.
The charge of conspiracy to possess with intent to distribute and to distribute heroin and fentanyl provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $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 Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorneys Thomas E. Kanwit and Karen Beausey of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the cases.
Eleven Defendants from Operation Three Amigos Sentenced to over 111 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced today that all Defendants in Operation Three Amigos announced on February 3, 2015, have now been sentenced in Federal Court. A joint operation by the Camden Police Department, Ouachita County Sheriff’s Office, Drug Enforcement Administration, the 13th Judicial Drug Task Force, United States Attorney’s Office, and the FBI resulted in the ultimate arrest and prosecution of 11 Federal Defendants. The investigation resulted in the initial seizure of firearms, ammunition, four vehicles and over $10,000.00 in United States currency from members of the organization and combined sentences of over 111 years for trafficking methamphetamine and crack cocaine in Camden.
Agents with the Drug Enforcement Administration and FBI Task Force Officers began their investigation into drug trafficking in Ouachita County and Camden in particular in 2011. The investigation included witness interviews, controlled purchases of methamphetamine and crack cocaine, surveillance and monitoring, and other investigative techniques. Several Defendants were prosecuted for conspiracy as well as distribution charges.
The most recent sentencings took place on the conspiracy charge as Christopher “Tank” Turner was sentenced on June 13, 2017, to 210 months in prison after have been found to be responsible for conspiring to distribute over 20 kilograms of crack cocaine from 2012 through 2014. Kim “2Lou” Williams received a sentence of 77 months on June 23, 2017 for conspiracy to distribute crack cocaine along with his brother, Will Williams who received a sentence of 30 months on June 22, 2017.
Several Defendants were charged and sentenced for distribution of large quantities of crack cocaine in the operation: Mario Thomas aka “Hoolie” was sentenced to 180 months in federal prison on January 26, 2016, Orlando Mitchell, aka “Stunna” received 140 months on February 14, 2017, Jeffrey Haywood, aka “Woodchuck” received 127 months on July 25, 2016, Carlos Morgan aka “Li’l Gafford” received 120 months on July 20, 2016, Darren Dee Atkins aka “Noonie” received 84 months on June 30, 2017, and Sheldon Mitchell aka “Yak” received a sentence of 63 months on January 21, 2016.
Also in this operation, methamphetamine distributors were apprehended and prosecuted. On January 26, 2016, Senica Howard aka “Big Howard” was sentenced to 120 months in federal prison for distribution of methamphetamine. Mario McGeilberry aka “Y.A.” aka “Dollar” received 140 months on July 28, 2016, for conspiring to distribute methamphetamine with his wife, Tamar McGeilberry aka “Angel” in February of 2015. “Angel” received a sentence of 48 months on December 13, 2016, for using a wireless communication device in furtherance of shipping several packages of methamphetamine through the United States mail.
U. S. Attorney Kenneth Elser stated, “Drug distribution organizations are one of the biggest threats to the safety and security of our communities. Our citizens in south Arkansas feel the impact that crack and meth have on the street. Most of the time, the cost of the narcotics trade is borne not by the distributor but by the children and families of users. Our law enforcement partners in the DEA and FBI are cooperating with outstanding state and local partners to ensure that the risks of dealing crack and meth are placed back on the distributors who hopefully determine that these activities are not worth the consequences.”
“Today’s sentencing highlights the impact multiple agencies can have when they join forces in efforts to seek out and prosecute those who bring drugs into our Arkansas communities,” commented Diane Upchurch, Special Agent in Charge of the Federal Bureau of Investigation in Little Rock, “We at the FBI are happy to have had this opportunity to work with U.S. Attorney’s Office for the Western District of Arkansas, Camden Police Department, Ouachita County Sheriff’s Office, Drug Enforcement Administration, and the 13th Judicial Drug Task Force.”
“Methamphetamine and crack cocaine are destructive poisons that can cause terrible harm to the quality of life in any community,” said Stephen G. Azzam, Special Agent in Charge of DEA’s New Orleans Field Division. “Side by side with our federal, state and local law enforcement partners, DEA is holding drug dealers accountable. We are seizing their profits, shutting down their distribution networks, and putting dealers where they belong- behind bars. This investigation demonstrates our unending resolve to remove drug dealers from the communities here in south Arkansas and across the country. These lengthy sentences will put these criminals out of commission for a long time.”
David Butler, Prosecuting Attorney for the 13th Judicial District of Arkansas and head of the 13th Judicial District Drug Task Force commented, “This investigation demonstrates the outstanding results that come from joint investigations involving state, federal, and local agencies. Thanks for the hard work by officers.”
All terms of federal prison were followed by a three year term of supervised release to begin immediately upon their release from the Federal Bureau of Prisons. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in El Dorado and Texarkana.
Operation Three Amigos was a joint operation between the 13th Judicial Drug Task Force, the Camden Police Department, the Ouachita County Sheriff’s Office, the Little Rock FBI Division, the Drug Enforcement Administration, the Ouachita County Prosecutor’s Office, and the Arkansas State Police. Assistant U.S. Attorney Ben Wulff prosecuted the cases for the Western District of Arkansas.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Drug Company Sales Rep Admits Role in Kickback Scheme Related to Fentanyl Spray PrescriptionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NATALIE LEVINE, 33, of Scottsdale, Arizona, waived her right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of engaging in a kickback scheme that defrauded federal healthcare programs.
According to court documents and statements made in court, from approximately March 2013 to October 2014, LEVINE was employed by Insys Therapeutics, an Arizona-based pharmaceutical company that manufactured and sold Subsys, a fentanyl-based sublingual spray that was approved by the Food and Drug Administration solely for the management of breakthrough pain in cancer patients. LEVINE was a sales representative for the company and was responsible for covering the territories that included Connecticut, New Hampshire and Rhode Island.
In pleading guilty, LEVINE admitted that she induced certain medical practitioners, including an advanced practice registered nurse (APRN) in Connecticut, a physician’s assistant (PA) in New Hampshire, and a physician in Rhode Island, to prescribe Subsys by paying them to participate in hundreds of sham “Speaker Programs.” The Speaker Programs, which were typically held at high-end restaurants, were ostensibly designed to gather licensed healthcare professionals who had the capacity to prescribe Subsys and educate them about the drug. In truth, the events were usually just a gathering of friends and co-workers, most of whom did not have the ability to prescribe Subsys, and no educational component took place. “Speakers” were paid a fee that ranged from $1,000 to several thousand dollars for attending these dinners. At times, the sign-in sheets for the Speaker Programs were forged so as to make it appear that the programs had an appropriate audience of healthcare professionals.
The medical practitioners were paid thousands of dollars in illegal kickbacks in order to prescribe Subsys, and induce others to prescribe Subsys, over similar medications. Medicare Part D plans authorized payment for hundreds of Subsys prescriptions written by the three medical practitioners, resulting in a loss of approximately $4.5 million.
LEVINE pleaded guilty to one count of conspiracy to violate the anti-kickback law, an offense that carries a maximum term of imprisonment of five years and a fine of up to $250,000. Judge Shea scheduled sentencing for October 5, 2017.
This investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation, with the assistance of the Drug Enforcement Administration’s Tactical Diversion Squad. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Richard M. Molot.
Several other individuals affiliated with Insys Therapeutics, and medical practitioners involved in this kickback scheme, have been charged in the District of Connecticut and in other Districts across the United States.
U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.
Dr. Lawrence Nassar Pleads Guilty to Child Pornography and Obstructing Justice ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – Dr. Lawrence Gerard Nassar, 53, of Holt, Michigan pleaded guilty pursuant to a plea agreement to the three federal criminal charges pending against him, Acting U.S. Attorney Andrew Birge announced today. Nassar pleaded guilty to receiving child pornography in 2004, possessing child pornography from 2003 to 2016, and destroying and concealing evidence in 2016 when he believed correctly that ongoing investigation by law enforcement would reveal his child-pornography activities. Nassar faces a minimum of five years and a combined maximum of 60 years in prison. Nassar agreed not to oppose a number of sentencing-guideline factors that result in an advisory sentencing range of at least 262 to 327 months (approximately 22-27 years) in prison. Under federal law, the advisory range is the starting point for the court’s determination of an appropriate sentence. While Nassar may pursue a below-guideline sentence, the government remains free to pursue a sentence of up to 60 years.
As part of the plea agreement, Nassar agreed not to oppose a sentencing enhancement for engaging in a pattern of activity involving child sexual abuse or exploitation. He also agreed to make full restitution to all of the victims of his sexual exploitation, as determined by the Court at sentencing. The plea agreement provides that the government will forgo charges with respect to four (4) specific individuals, related to the production or attempted production of child pornography and interstate or foreign travel with intent to engage in illicit sexual activity. Nevertheless, the agreement provides that the Court may consider this conduct in determining Nassar’s sentence. In addition, the government noted at the change-of-plea hearing that it had consulted with each of the four (4) individuals specified in the plea agreement and each supported the plea agreement and resolution. The plea agreement does not preclude the government from pursuing additional charges against Nassar related to his conduct with other individuals, if appropriate.
U.S. District Judge Janet Neff will sentence Nassar on a date to be scheduled by the Court. Under federal sentencing law, the Judge may consider the full scope of Nassar’s misconduct when determining the appropriate sentence, including uncharged misconduct. Specifically, federal law provides that "[n]o limitation shall be placed on the information concerning the background, character, and conduct of a person convicted of an offense which a court of the United States may receive and consider for the purpose of imposing an appropriate sentence." In addition, the federal sentencing guidelines provide for a substantially increased sentence when a defendant has engaged in a pattern of activity involving the sexual abuse or exploitation of minors. Judge Neff will also have the authority to order that Nassar serve the rest of his life on court supervision after he completes his prison term. The law requires Nassar to register as a sexual offender.
Acting U.S. Attorney Birge said: "With Dr. Nassar’s admissions of guilt on federal charges today, victims and the public can be assured that a day of reckoning is indeed in Dr. Nassar’s future. No one, no matter his station in life, is above the law. Those who exploit children will be found out and they will be held accountable. Today’s guilty plea resolves the currently pending charges and it resolves specific charges with respect to the four individuals referenced in the plea agreement in accordance with their wishes as expressed directly to us. In addition, it ensures that all of Dr. Nassar’s victims, including those who are not victims of the current charges or referenced in the plea agreement, will have an opportunity for vindication through the broad federal sentencing process. My office will be aggressively pursuing a sentence that accounts for all of Dr. Nassar’s conduct."
"The sexual exploitation of minors is a reoccurring menace in this country and has lasting damaging impacts on its victims," said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "The investigation that resulted in today’s guilty plea by Dr. Nassar demonstrates the FBI's commitment to protect our youth from anyone who sexually exploits kids. The safety and security of our children will always be of paramount importance to the FBI and our law enforcement partners."
"The Michigan State University Police Department is grateful for all of the efforts put forth in these cases by the United States Attorney’s Office for the Western District of Michigan," said James Dunlap, Police Chief and Director of the Michigan State University Police Department. "Additionally, we continue to appreciate our long standing partnership with the FBI and all of the work that is taking place in this joint investigation involving the federal matters in the Larry Nassar cases. Today’s plea does not impact the pending criminal sexual conduct cases in Michigan, which are currently being prosecuted by the Michigan Attorney General."
Persons with information relevant to Nassar’s conduct or sentencing may contact the Federal Bureau of Investigation at 1-800-225-5324 or [email protected].
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Detroit and Los Angeles Divisions of the Federal Bureau of Investigation (FBI) and the Michigan State University Police Department (MSUPD) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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Douglas Allen Imprisoned for Merchants Bank RobberyRead the Press Release
The United States Attorney for the District of Vermont announced that Douglas Allen, 59, of Burlington, was sentenced today in United States District Court in Burlington to 46 months of imprisonment following his guilty plea to a charge of bank robbery. Chief U.S. District Judge Christina Reiss also ordered that Allen serve three years of supervised release following completion of his prison term and pay restitution in the amount of $1635. Allen has been in custody since his arrest last year.
According to court records, on May 21, 2016, a man wearing a hat and sunglasses entered the College Street branch of Merchants Bank in Burlington and presented the teller with a note that asked for $6000. The teller gave the robber approximately $1740. Burlington Police officers arrested Allen five days later, on May 26, after receiving several tips from persons who were able to identify Allen from bank surveillance pictures. Allen was originally charged in state court with grand larceny, but that charge was dismissed after a federal grand jury indicted Allen last July.
Allen has a previous federal court conviction in Vermont for bank robbery.
Allen is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Dominican National Sentenced for Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
BOSTON – A document broker was sentenced today in federal court in Springfield for trafficking the identities of Puerto Rican citizens and corresponding identity documents.
Sandro Tavera Mora, a/k/a Jose Laureano Ayala, 46, a Dominican national, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 27 months in prison. He is also subject to deportation upon completion of his sentence. On May 4, 2017, Tavera Mora pleaded guilty to false personation of U.S. citizenship, fraud and misuse of visas, and conspiracy to possess and transfer identification documents.
Tavera Mora operated as a document broker in Springfield, buying, possessing, transferring and selling personal identifying information contained in legitimate government documents belonging to residents of Puerto Rico. Tavera Mora admitted that the customers who purchased these documents were illegal aliens who used the information to assume the identity of United States citizens in order to apply for other identity documents. Tavera Mora knew that these customers would use these documents to violate federal law, including Social Security fraud and the impersonation of a United States citizen.
Upon his arrest, Tavera Mora falsely identified himself as “Jose Laureano Ayala,” a U.S. citizen born in Puerto Rico, and possessed a fraudulent Puerto Rico driver’s license and a U.S. Social Security card in the same name. He also possessed a fraudulent Dominican passport that contained a non-immigration U.S. Visa with fraudulent admittance record and a Customs and Border Patrol admittance stamp.
Acting U.S. Attorney William D. Weinreb; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Thomas D. Homan, Acting Director of U.S. Immigration and Customs Enforcement; and Guy J. Cottrell, Chief Postal Inspector for the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorney Kevin O’Regan, Chief of Weinreb’s Springfield Branch Office and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division prosecuted the case.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Document Broker Sentenced to 27 Months for Role in Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
A document broker was sentenced today in connection with his role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William D. Weinreb of the District of Massachusetts, Acting Director Thomas D. Homan of the U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement.
Sandro Tavera Mora, aka Jose Laureano Ayala, 46, a Dominican citizen residing in Springfield, Massachusetts, was sentenced today to 27 months in prison. On May 4, 2017, Tavera Mora pleaded guilty before U.S. District Court Judge Mark G. Mastroianni of the District of Massachusetts, to false personation of U.S. citizenship, fraud and misuse of visas and conspiracy to possess and transfer identification documents. Tavera Mora was charged in a superseding indictment returned by a federal grand jury in Springfield on July 23, 2015.
According to admissions made in connection with the plea, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the U.S., identified as identity document suppliers and brokers, solicited customers and sold social security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1,200 per set.
As part of his plea, Tavera Mora admitted that he operated as a document broker in Springfield, Massachusetts, buying, possessing, transferring and selling personal identifying information contained in legitimate government documents belonging to residents of Puerto Rico. Tavera Mora further admitted that the customers who purchased these documents were undocumented aliens who would use this information to assume the identities of U.S. citizens in order to apply for other identity documents. Tavera Mora also admitted that he knew that these customers would use these documents to violate federal law, including social security fraud and the impersonation of a U.S. citizen.
Additionally, Tavera Mora admitted that upon his arrest he identified himself as “Lareano Ayala,” stated he was born in Puerto Rico and possessed a fraudulent Puerto Rico Driver’s License and a U.S. social security card in the same name. Tavera Mora further admitted that he possessed a fraudulent Dominican Republic passport that contained a non-immigration U.S. Visa with fraudulent admittance record and a Customs and Border Patrol admittance stamp.
The Chicago offices of ICE-Homeland Security Investigations (HSI), USPIS, U.S. Department of State Bureau of Diplomatic Security, and IRS-Criminal Investigations led the investigation, dubbed Operation Island Express II, with assistance from HSI Springfield, Massachusetts, and USPIS in Hartford, Connecticut. The ICE-HSI Attaché office in the Dominican Republic, International Organized Crime Intelligence and Operations Center (IOC-2) and Illinois Secretary of State Police provided invaluable assistance, as well as various ICE, USPIS, DSS and IRS-CI offices around the country.
Trial Attorney Marianne Shelvey of the Justice Department Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kevin O’Regan of the District of Massachusetts are prosecuting the case.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Connecticut Woman Sentenced for Stealing over $250,000 from Her EmployerRead the Press Release
BOSTON – A Windsor, Conn. woman was sentenced today in federal court in Springfield, Mass., for stealing over $250,000 from her employer.
Angela M. Craig, 55, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 21 months in prison, three years of supervised release, and ordered to pay approximately $254,000 in restitution, after pleading guilty to one count of wire fraud in March 2017.
From July 2012 through May 2014, Craig stole more than $250,000 from her Massachusetts employer by writing company checks to herself, forging her employer’s signature and then cashing or depositing the checks. Craig concealed her theft by entering false invoices in her employer’s accounting system and by failing to pay company bills and taxes.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Weinreb’s Springfield Branch Office prosecuted the case.
Cobb County man sentenced to prison for failing to register as a sex offenderRead the Press Release
ATLANTA - Frederick Laron Summerset has been sentenced to two years in prison for failing to register as a convicted sex offender when he moved from Minnesota to Cobb County, Georgia in 2016.
“This defendant was convicted of violating the Sex Offender Registration and Notification Act,” said U. S. Attorney John Horn. “The purpose of this Act is to prevent convicted sex offenders, like Summerset, from living or working around children. It also allows citizens to remain informed about sex offenders who might live near them.”
"Many parents want to know when a sex offender moves into their area. When a convicted sex offender does not register their address, it denies the community their right to know. Also it hinders law enforcement’s ability to ensure that the sex offender is not in violation of other provisions of the Sex Offender Act,” said Beverly Harvard, U.S. Marshal for the Northern District of Georgia.
According to U.S. Horn, the charges and other information presented in court: Summerset was convicted in Minnesota in November 2011 of committing a sex offense against a child. As a result of this conviction, he was required to register for life as a convicted sex offender. When he was released from prison in Minnesota in August 2014, he initially registered as required. However, by March 2016, he had left Minnesota. He was eventually located in Cobb County, Georgia. He admitted that he had moved at the beginning of 2016 and did not register as a sex offender with the Cobb County Sheriff’s Office because he suspected that Minnesota had a warrant for his arrest.
Frederick Laron Summerset, 34, of Hastings, Minnesota, was sentenced to two years in prison to be followed by five years of supervised release. Summerset was convicted of these charges on April 19, 2017, after he pleaded guilty.
This case was investigated by the U.S. Marshals Service.
Assistant U.S. Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cleveland man sentenced to 2 1/2 years in prison for trafficking firearms bought at Medina gun showRead the Press Release
A Cleveland man was sentenced to 30 months in prison for illegally trafficking two dozen firearms purchased over a weekend at a gun show in Medina County, said Acting U.S. Attorney David A. Sierleja and Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division.
Carlton H. Nunn, 36, pleaded guilty earlier this year to one count of making false and fictitious statements regarding the sale of firearms.
Nunn purchased 24 9 mm pistols from four dealers at the Medina Gun Show on Sept. 10 and 11, 2016. He attended the gun show with two people, identified as S.B. and J.B., who appeared to select the firearms and provided the cash to purchase the guns, according to court documents.
Nunn told at least one firearms dealer that he instructed a concealed carry class and the firearms were for use in his class. In reality, Nunn left pistols in the trunk of J.B. and S.B.’s car. Nunn knew J.B. for 30 years and knew he had been to prison, according to court documents.
One of the pistols Nunn purchased has been recovered at a crime scene in Canada. Nunn also admitted making illegal purchases of firearms at the Summit County Gun Show, according to court documents.
“This defendant put two dozen firearms out into our streets, and at least one has already been used in a crime,” Sierleja said. “People must obey the law or suffer the consequences.”
“ATF is committed to combating gun violence in our communities, including the individuals who provide firearms to people who are prohibited from having them,” Velinor said. “We will continue to work to make our communities safer by investigating and bringing to prosecution the individuals who enable violent criminals.”
This case is being prosecuted by Assistant U.S Attorney Megan R. Miller following an investigation by the ATF.
Chester Man and Former Outcast Biker Sentenced to 110 Months for Possession of Stolen FirearmRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Tommie Lee Causey, Jr. was sentenced today in federal court in Columbia, South Carolina, for possession of a stolen firearm in violation of Title 18, United States Code, Section 922(j). United States District Judge Cameron McGowan Currie, of Columbia, sentenced Causey to 110 months incarceration, followed by a term of supervised release of three (3) years.
Evidence presented at the change of plea hearing established that on August 18, 2016, Chester City Police officers responded to a 911 call wherein the caller indicated Causey had brandished a firearm. When officers arrived, they observed Causey riding in a white car that had been described by the caller. Officers asked Causey to step out of the vehicle and then searched the vehicle after asking the driver for consent. The officers located a Springfield, .45 caliber pistol hidden underneath the seat that Causey was sitting in. The FBI and ATF determined that the firearm had been reported stolen out of Lancaster County in 2015. At his change of plea hearing, Causey admitted that he knowingly possessed the stolen .45 caliber handgun prior to being arrested on August 18, 2016.
Evidence presented at the sentencing hearing today established that Causey's prior record includes multiple convictions for distribution of cocaine, which occurred in 1995, and a conviction for voluntary manslaughter, which occurred in 1997. While sentencing the defendant, the Court noted the Defendant’s history of being involved in violence, including his membership in the Outcast Motorcycle Club.
The case was investigated by Chester Police Department, the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney JD Rowell of the Columbia office prosecuted the case.
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