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Thursday 18 May 2017
83 “Bloods” Gang Members Indicted on Federal ChargesRead the Press Release
CHARLOTTE, N.C. – Eighty-three alleged leaders and members of the “United Blood Nation” (UBN or Bloods) have been indicted on federal racketeering conspiracy charges and charges related to murder, attempted murder, violent assault, narcotics distribution, firearms possession and Hobbs Act robbery. A number of defendants are also charged with bank fraud, wire fraud and aggravated identity theft related to financial crimes. A federal grand jury returned the sealed indictment on May 16, 2017, which was unsealed today following this morning’s arrests.
In a coordinated operation, more than 600 federal, state and local law enforcement officers executed the arrest warrants this morning in Charlotte, Cleveland County, and eastern North Carolina. Arrests were also made in Florida, South Carolina, New York, and Virginia. Of the 83 defendants charged, ten are not in custody.
“This morning’s arrests are the result of a joint law enforcement investigation targeting alleged leaders and members of the Nine Trey Gangsters faction of the UBN. These defendants participated in a racketeering conspiracy, committing multiple violent crimes, including at least six murders and five attempted murders in North Carolina. Today’s law enforcement action delivered a serious blow to the leadership structure throughout the ranks of this criminal organization. And this is only the beginning. The investigation and prosecution of violent gangs is a priority for this office. Our goal is to curb the influence of violent street gangs, to protect the people of this district from gangsters’ criminal activity and to restore our neighborhoods as places where all citizens can live and prosper,” said Jill Westmoreland Rose, United States Attorney for the Western District of North Carolina.
"The murders, the assaults, the robberies, the drug deals, each and every crime committed by these ruthless gang members was a blow to the safety of our communities. Innocent families should not suffer because of the violent actions of others. Anyone who tries to fill the criminal void left by today’s arrests should know, the FBI and our law enforcement partners will come after you next,” said John Strong, the Special Agent in Charge of the FBI in North Carolina.
“These arrests and collaborative efforts are important in helping to curb the criminal influence and gang activities not only in our communities, but also behind prison walls,” said Secretary Erik A. Hooks of the North Carolina Department of Public Safety. “Gang activity drives a great deal of criminal enterprise, and it takes a cooperative law enforcement effort and a sharing of intelligence across agencies to fight it.”
“The Charlotte-Mecklenburg Police Department will continue to work tirelessly to protect our community. These arrests send a clear message to violent offenders that our neighborhoods will not be a safe haven for their illegal activities,” said Chief Kerr Putney of the Charlotte Mecklenburg Police Department.
“This investigation is a great example of collaboration between agencies to fight the type of crime that is causing the senseless killing of our young people and destroying families in our communities. The statement made today is simple - violent crime and gang activity will not be tolerated in our communities. We will work with our law enforcement partners to ensure that our citizens are able to live, work and play in the safest environment possible,” said Chief Jeff Ledford of the Shelby Police Department.
“Today’s arrests will have a significant impact in Shelby and Cleveland County. The Cleveland County Sheriff’s Office will continue to work hand-in-hand with our law enforcement partners to tackle violent gang activity. But, we all have to do more to prevent young men and women from joining street gangs. Gangs are not just a law enforcement problem, they are a community problem. And prevention is key. We need our faith, civic, and community leaders to join forces with us and help law enforcement combat the gang problem that plagues our communities,” said Sheriff Alan Norman with the Cleveland County Sheriff’s Office.
"We value the partnerships with all of our local, state, and federal partners. The success of this investigation is a result of sharing resources and working together,” said Chief Robert Helton of the Gastonia Police Department.
As alleged in the indictment, the Bloods were formed in the 1970s in Los Angeles, California, when a group of seven individual street gangs united to form a larger unit. The gang quickly spread to surrounding areas, eventually expanding its influence across the United States. In 1993, a single Bloods entity, the UBN, was created on the east side of Rikers Island Prison. Membership of the UBN is estimated to be between 7,000-15,000 members along the east coast, with ultimate authority for gang decisions still maintained in New York and members currently incarcerated in the New York prison system. The various Bloods’ gangs or “Hoods,” which unified under the UBN, kept their original names. The “Nine Trey Gangsters” is one of the original factions of the UBN, with a large gang presence in North Carolina.
The indictment alleges that the gang is governed by 31 rules known as “The 31.” These rules were written by UBN’s founders and are strictly enforced. In addition, the gang maintains a strict hierarchy or chain of command, with each gang member assigned to a specific rank with specific duties and responsibilities. A typical structure for the Nine Trey Gangsters includes the leader of the hood, referred to as the “Godfather,” followed by ranked “Generals,” down through unranked members called “Soldiers” or “Scraps.” Additionally, within the UBN, some females hold unique positions of authority, including that of a “First Lady,” who is often responsible for record keeping, covert communications, and distribution of gang records.
The indictment alleges that UBN members represent their gang affiliation with common tattoos, graffiti markings, language, and communication codes, and are identified by wearing the color red. Gang members are also expected to pay gang dues, which are used to support the enterprise, to finance the gang’s criminal activity, and as gifts of respect to incarcerated high-ranking members.
According to allegations contained in the indictment, beginning by at least 2009 to present, the defendants were leaders and members of the UBN’s Nine Trey Gangsters. As alleged members of the criminal organization, they engaged in a pattern of racketeering activity, including, but not limited to, murder, attempted murder, assault with a deadly weapon, robbery, narcotics distribution and firearms possession. Additionally, the indictment alleges that certain defendants engaged in the racketeering acts of bank fraud and wire fraud. As alleged in the indictment, the defendants committed these crimes to generate proceeds to pay gang dues, to maintain membership with the gang, to discipline other gang members, and to be promoted within the leadership structure of the gang.
According to allegations contained in the 69-count indictment, the defendants communicated regularly with each other and other UBN members to discuss gang business, including the enforcement of gang rules; disciplinary action of UBN members; the identities and punishment of individuals cooperating with law enforcement; the collection of gang dues; and to plan future crimes. The indictment further alleges that the defendants maintained and circulated a collection of firearms, including assault rifles, for the use in criminal activity by gang members.
Over the course of the investigation, agents and officers seized, among other evidence: 36 firearms and ammunition, cocaine, crack cocaine, heroin, marijuana, MDMA, prescription pills and other narcotics and drug paraphernalia, counterfeit checks, credit cards and gift cards, and credit card making devices.
The 83 defendants charged with one count of Racketeering Influenced Corrupt Organization (RICO) conspiracy are:
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Sherman Devante Addison, a/k/a “Ace,” 22, of Shelby.
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Aaron Demitri Alexander, a/k/a “A Dawg,” 24, of Charlotte.
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Montraya Antwain Atkinson, a/k/a “Hardbody,” 30, of Raleigh, N.C.
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Freddrec Deandre Banks, a/k/a “Drec/Banga,” 21, of Shelby.
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James Baxton, a/k/a “Frank White,” 43, incarcerated in New York.
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Bradley Beauchamp, 29, of Fort Lauderdale, Florida.
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Destinee Danyell Blakeney, a/k/a “Lady Rude,” 22, of Morven, N.C.
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Antonio Dontre Brooks, a/k/a “Montana,” 24, of Shelby.
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Antarious Qaushard Byers, a/k/a “Bang,” 23, of Shelby.
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Renaldo Rodregus Camp, a/k/a “Rodeo/Drop,” 39, of Shelby.
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Shakira Monique Campbell, a/k/a “Lady Rage,” 23, of Charlotte.
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Adrian Nayron Coker, a/k/a “Gotti,” 27, of Gastonia, N.C.
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Brandon Khalil Covington, a/k/a “Blokka,” 24, of Charlotte.
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Alex Levi Cox, a/k/a “Quick,” 26, of Myrtle Beach, S.C.
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Marquel Michael Cunningham, 20, incarcerated in North Carolina.
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Richard Diaz, a/k/a “Damu,” 32, of Charlotte.
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James Walter Dowdle, a/k/a “Staxx,” 24, incarcerated in North Carolina.
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John Paul Durant, a/k/a “JP/Glock/Gudda,” 28, of Shelby.
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Cynthia Gilmore, a/k/a “Cynthia Young/Lady Bynt,” 41, of Raleigh.
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Shamon Movair Goins, a/k/a “Rugie,” 26, incarcerated in North Carolina.
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Pedro Gutierrez, a/k/a “Magoo/Light/Inferno,” 44, incarcerated in New York.
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Jalen Raekwon Hackney, a/k/a “Menace,” 19, incarcerated in North Carolina.
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Christopher Dentre Hamrick, a/k/a “Red Dot,” 27, incarcerated in North Carolina.
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Lavaughn Antonio Hanton, a/k/a “Killem/Billy-D,” 33, incarcerated in North Carolina.
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Anthony Oneil Harrison, a/k/a “Ant,” 20, of Charlotte.
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Bianca Kiashie Harrison, a/k/a “Lady Gunz,” 27, of Raleigh.
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Quincy Delone Haynes, a/k/a “Black Montana,” 38, Shelby.
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Delonte Maurice Hicks, a/k/a “BBB Shooter/Black,” 28, of Morven.
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Jasmin Reikeem Hicks, a/k/a “Rude,” 26, of Morven.
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Bobby Earl Hines, a/k/a “Swahili,” 34, incarcerated in North Carolina.
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Raheam Shumar Hopper, a/k/a “Bone,” 23, of Shelby.
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Wesley Javon Howze, a/k/a “Drama,” 21, incarcerated in North Carolina.
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Donl Lequintin Hunsucker, a/k/a “Remy,” 31, of Charlotte.
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Dricko Dashon Huskey, a/k/a “Drizzy,” 25, incarcerated in North Carolina.
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Muhammad John Jackson, a/k/a “Picasso,” 32, of Charlotte.
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Terrence Thomas Johnsom, a/k/a “Sypher,” 40, of Shelby.
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Joe Tarpeh Johnson, a/k/a “JR/Big Pusha/Kutthroat,” 26, of Charlotte.
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Latif Nakia Antoine Johnson, a/k/a “Billy Solo,” 23, of Charlotte, N.C.
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Tonney Horatio Kerbay, a/k/a “Rich Tonney,” 29, of Charlotte.
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Rashad Monte King, a/k/a “Billy Kilo Montana,” 25, of Charlotte.
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Barrington Audley Lattibeaudiere, a/k/a “Bandana/Bobby Seale,” 30, of North Lauderdale, Florida.
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Juan Cruz Leon, a/k/a “Jefe,” 21, of Charlotte.
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Renaire Roshique Lewis, Jr., a/k/a “Banz/Esco,” 22, incarcerated in North Carolina.
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Lamonte Kentrell Lloyd, a/k/a “Murda Mo/Moo,” 23, incarcerated in North Carolina.
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David Matthew Lowe, a/k/a “Gucci,” 26, of Shelby.
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Charles Kenyon Lytle, a/k/a “Kam,” 39, of Charlotte.
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Terry Lavon Maddox, a/k/a “Turbo,” 26, of Shelby.
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Bradon Theodore Manning, a/k/a “Billy B,” 28, of Columbia, S.C.
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Travis Cordell McClain, a/k/a “Fridaay Daa Thuurteenth,” 25, of Charlotte.
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Robert Allen McClinton, a/k/a “Trigga,” 27, incarcerated in North Carolina.
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Isaac Nabah MckIntosh, a/k/a “Mac,” 26, of Charlotte.
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D’Angelo De’Mara McNeil, a/k/a “Dutch,” 26, of Charlotte.
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Christopher Lashon Miller, a/k/a “Dro,” 23, incarcerated in North Carolina.
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Johnny Thomas Mitchell, a/k/a “Joker,” 37, of Shelby.
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Christopher O’Brien Moore, a/k/a “Ratchet,” 22, incarcerated in North Carolina.
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Myquan Lamar Nelson, a/k/a “Dripz,” 26, of Charlotte.
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Thomas Oliver, a/k/a “T.O., Recon,” 31, incarcerated in North Carolina.
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Kolawole Olalekan Omotosho, a/k/a “Rugged Red,” 19, of Jacksonville, N.C.
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James Bradin Pegues, 30, of Charlotte.
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Deshawn Deonta Peterkin, a/k/a “Proo,” 28, of Morven.
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Laquida Shuntae Poston, a/k/a “Lady Recon,” 25, incarcerated in North Carolina.
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Austin Demontry Potts, a/k/a “Big Tek, B-Tek,” 23, of Charlotte.
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Tyquan Ramont Powell, a/k/a “Savage,” 22, incarcerated in North Carolina.
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Omar Lionel Reed, a/k/a “Omega,” 38, incarcerated in New Mexico.
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Omari Rosero, a/k/a “Uno B,” 40, incarcerated in New York.
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Porsha Talina Rosero, a/k/a “Porsha Talina Gowdy/Lady Uno B,” 34, of Syracuse, New York.
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Kenneth Marquise Ruff, a/k/a “Red Hot,” 26, of Shelby.
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Rashad Sattar, 20, of Fort Lauderdale.
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Alandus Montrell Smith, a/k/a “Kadafia,” 27, incarcerated in North Carolina.
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Anthony Bernard Smith, a/k/a “Redd Lion,” 24, incarcerated in North Carolina.
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Denzel Lamont Spikes, a/k/a “Dinki/Dino,” 24, incarcerated in North Carolina.
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Isaiah Devon Stallworth, a/k/a “Zay/Juice,” 25, of Charlotte.
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Cedric Lexander Surratt, a/k/a “Hollywood/5-Star,” 29, of Charlotte.
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Peatrez Lamar Teaste, a/k/a “P-Wheezy,” 24, of Myrtle Beach.
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Jhad Elijah Thorbourne, a/k/a “Flight,” 23, of Charlotte.
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Lavon Christopher Turner, a/k/a “Hungry,” 27, Charlotte.
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Jesse James Watkins, a/k/a “Showtime,” 33, of Charlotte.
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Quintez Lamar Watkins, a/k/a “Bandana,” 27, incarcerated in North Carolina.
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David Earl Watson, a/k/a “Gunz,” 31, of Jacksonville.
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Twylain Stanley Wilson, a/k/a “5 Alive,” 24, incarcerated in North Carolina.
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Ronald Anthony Wofford, 27, of Charlotte.
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Jonathan Wray, a/k/a “Jon Jon/Yungin,” 26, incarcerated in North Carolina.
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Patrick Devon Wray, a/k/a “Ike, Murda,” 28, of Shelby.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until they are proven guilty beyond a reasonable doubt in a court of law.
The indictment is the result of a joint investigative effort by the Federal Bureau of Investigation (FBI); the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the United States Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Internal Revenue Service; the United States Postal Inspection Service; the United States Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations.
U.S. Attorney Rose thanked each of the above law enforcement agencies that took part in the arrests today, along with FBI Albany; FBI Atlanta; FBI Columbia; FBI Knoxville; FBI Miami; FBI Norfolk; FBI Richmond; FBI Washington Field Office; the United States Marshals Service; the North Carolina State Bureau of Investigation; and the Anson County Sheriff’s Office. They also acknowledged the United States Attorney’s Offices in the Eastern District of North Carolina, the United States Attorney’s Office in the Southern District of Florida, and the Broward County Sheriff’s Office in Florida for their invaluable assistance in this case.
Assistant U.S. Attorneys Elizabeth Greene and Matthew Warren of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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Wednesday 17 May 2017
Young Alien Smuggler Who Injured Several People in High-Speed Chase Sent to PrisonRead the Press Release
LAREDO, Texas – A Rio Bravo man has been ordered to federal prison after he led police on a high-speed chase in a vehicle loaded with several illegal aliens before crashing into another vehicle and causing serious injuries to several Laredo residents, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge of Immigration and Customs Enforcement's Homeland Security Investigations (HSI) San Antonio Field Office. Jovanni Rodarte, 20, pleaded guilty Dec. 8, 2016, admitting to conspiring to transport unlawful aliens and causing serious bodily injury.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced Rodarte to 97 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard that Rodarte has been involved in gang violence while incarcerated and has had multiple encounters with law enforcement as a result of smuggling aliens. The government also described the incredible injuries that Rodarte inflicted on multiple innocent people. The court also heard from a victim’s wife who described the tremendous pain her husband has endured since the crash and the toll the crash has taken on her entire family. In handing down the sentence, Judge Marmolejo noted that she would be “entirely justified” in imposing the maximum under law. She added that despite given multiple opportunities, Rodarte had done nothing good with his life, but had instead immeasurably impacted multiple innocent peoples’ lives, including a mother and her son. Rodarte was also ordered to pay $192,997.20 in restitution to the victims.
"HSI is dedicated to working closely with all of our law enforcement partners to effectively in identify, arrest and prosecute individuals involved in exploiting people,” said Folden. "Criminals who illegally smuggle people into and throughout the country place personal profit ahead of public safety. For this reason, HSI will continue to utilize its broad authorities to dismantle human smuggling organizations."
On Oct. 5, 2016, Rodarte was transporting two illegal aliens when a Webb County Sheriff’s Officer attempted to affect a traffic stop. Instead of pulling over, Rodarte led several officers on a chase through the El Cenizo neighborhood of Laredo. During the chase, Rodarte drove more than 100 miles-per-hour in the residential area.
He crashed into a school fence and into a vehicle containing three Laredo residents, including a mother and son who were returning from a medical appointment. Law enforcement performed first-aid at the scene, but several of the vehicles’ occupants needed to be air-lifted to hospitals in Laredo and San Antonio. The three occupants in the vehicle Rodarte struck all sustained serious injuries that will require years of ongoing treatment.
One of the aliens was thrown from the vehicle Rodarte was driving and also sustained injuries. Rodarte, however, avoided any serious injuries from the crash.
He has been and remains in federal custody.
HSI conducted the investigation with the assistance of the U.S. Border Patrol. Assistant U.S. Attorney Chris Howard is prosecuting the case.
Wisconsin Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Baraboo, Wisconsin, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
James Nault-Hart, age 29, was indicted on December 14, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 15, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum of at least 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 12, 2016, and October 5, 2016, Nault-Hart, who previously had been convicted of Sexual Assault of a Child, knowingly failed to register and update his registration with the Sex Offender Registration and Notification Act.
The charge is merely an accusation and Nault-Hart is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Nault-Hart was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Westerville Man Sentenced for Million Dollar Investment Fraud SchemeRead the Press Release
COLUMBUS, Ohio – Mark Preston French, 42, of Westerville, Ohio was sentenced in U.S. District Court today to serve three months in prison and ordered to pay nearly $112,000 for defrauding an elderly client in a precious metals investment fraud.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the sentence imposed today by U.S. District Chief Judge Edmund A. Sargus, Jr.
French pleaded guilty in January 2016 to one count of wire fraud. According to court documents, French worked as a stockbroker between 1998 and 2013 and began investing in precious metals in 2008. An elderly woman from Greenville, Pa., who believed French was an investment advisor, was his client between 2000 and 2012.
In 2009, French advised his elderly client to open joint checking and savings accounts with him so he could purchase and sell precious metals on her behalf. French instructed his client to reinvest other securities she held by depositing funds totaling more than $1.3 million into these joint accounts. French used the funds to purchase gold and silver from Tulving Company in Newport Beach, Calif. but also embezzled $111,848.73 from the joint accounts.
In September 2012, the elderly client told French she wanted physical possession of her gold and silver, which French was storing in his Westerville home. Instead, French sold a majority of the precious metals back to Tulving Company, returning approximately $1 million back to his client but keeping part of the proceeds for himself. He also kept 11,942 ounces of silver purchased with his client’s funds, which was valued at more than $400,000.
U.S. Attorney Glassman commended the investigation by the FBI, as well as Deputy Criminal Chief Brenda Shoemaker, who represented the United States in this case.
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West Haven Man Pleads Guilty to Illegally Distributing XanaxRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CLARENCE BELL, also known as “Solo,” 21, of West Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession with intent to distribute, and distribution of Xanax, a Schedule IV controlled substance.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, at approximately 6:10 a.m. on May 24, 2016, the West Haven Police Department and emergency medical personnel responded to a residence in West Haven on report of a sudden death of a 20-year-old male. Upon arrival, the initial responding patrol units determined that the death was suspicious in nature and appeared to be drug related. The investigation, which includes witness interviews and analysis of phone records and surveillance cameras, has revealed that at approximately 10:00 p.m. on May 23, 2016, the victim purchased a quantity of Xanax pills from BELL. The victim them crushed approximately three of pills and snorted the powder.
The victim’s autopsy report states the official cause of death as acute intoxication due to the combined effects of heroin, alprazolam (Xanax) and cocaine.
BELL was arrested on a federal criminal complaint on September 26, 2016.
Judge Underhill scheduled sentencing for August 11, 2017, at which time BELL faces a maximum term of imprisonment of five years.
BELL is released on a $25,000 bond.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the DEA’s New Haven Tactical Diversion Squad and the West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
United States Attorney's Office Honors Federal, State and Local Law Enforcement Personnel for Exceptional ServiceRead the Press Release
BOSTON – Acting United States Attorney William D. Weinreb recognized 129 officials from federal, state, and local law enforcement agencies yesterday at the annual Law Enforcement Awards Ceremony.
“It is an all too infrequent occasion that we thank those who keep us safe and pursue justice,” Acting U.S. Attorney Weinreb told the honorees. “There is no doubt that this work can be difficult, and at times, it may seem thankless – the late nights, the time away from family, and the stress that compounds with each passing year. Working in public safety is an inescapable calling...it requires a certain character, unshakable commitment and a level of motivation possessed by few.”
The event, held at the Federal Reserve Bank in Boston, highlighted 23 federal cases from 2016. The individuals who contributed to the success of the cases were recognized for bravery, outstanding collaboration, investigative achievement, investigative excellence, and victim assistance. Assistant U.S. Attorneys who prosecuted the cases and nominated the honorees, lauded them for their commitment to public service before presenting them with commemorative plaques.
The category of Investigative Excellence recognized individuals whose actions led to the arrest of a dangerous subject or the exposure of a significant criminal conspiracy. The following cases and agencies were honored:
Drug Enforcement Investigations, District of Massachusetts
Recipient: U.S. Postal Inspection ServiceOperation Opiate Express
Recipient: Massachusetts State Police
The category of Bravery is reserved for those whose actions showed such concern for others that the recipient’s own safety was in jeopardy while assisting the victim of a federal crime or in the apprehension of a suspect of a federal investigation. The following case and agency was honored:
U.S. v. James Morales
Recipient: Massachusetts State Police
The category of Outstanding Collaborative Investigation Award recognized investigators from a multi-agency collaboration whose exceptional efforts to overcome significant challenges led to a successful conclusion. Recipients in one case also received the Victim Service Award for extraordinary assistance to victims of a federal crime.
United States ex rel. Lokosky v. Accelarent Inc.
Recipients: Defense Criminal Investigative Service; Federal Bureau of Investigation; U.S. Department of Veterans Affairs, Office of Inspector General; U.S. Food and Drug Administration, Office of Criminal Investigations; U.S. Health and Human Services, Office of Inspector General
United States v. Matthew Clem
Recipients: Federal Bureau of Investigation; Homeland Security Investigations; Massachusetts State Police; Worcester County District Attorney’s Office; Worcester Police Department (Recipients also received the Victim Service Award)
United States v. David E. Gorski
Recipients: Defense Contract Audit Agency, Investigative Support Division; General Services Administration, Office of Inspector General; Naval Criminal Investigative Service; U.S. Army Criminal Investigation Command; U.S. Department of Veteran Affairs, Office of Inspector General; U.S. Small Business Administration, Office of Inspector General
United States v. Gilvan Monteiro, et al.
Recipients: Brockton Police Department; Federal Bureau of Investigation; Massachusetts State Police Detective Unit, Plymouth County District Attorney’s Office; Massachusetts State Police Gang Unit; Massachusetts State Police Troop D Community Action Team; New England HIDTA
United States v. Andrew Gordon
Recipients: Bureau of Alcohol, Tobacco, Firearms and Explosives; Massachusetts State Police; Middlesex District Attorney’s Office; Middlesex Sheriff’s Office
The category of Investigative Achievement Award recognized those who substantially contributed to the mission of the U.S. Attorney’s Office and the Department of Justice. Several agency representatives also received a Victim Service Award for extraordinary assistance to victims of a federal crime.
United States v. Ygoa Almonte-Baez
Recipient: Drug Enforcement Administration
United States v. Robert Fitzpatrick
Recipient: Office of the Inspector General, U.S. Department of Justice
United States v. Tyrell Gorham, et al.
Recipients: Arlington Police Department; Boston Police Department; Federal Bureau of Investigation; Massachusetts State Police; Revere Police Department; Woburn Police Department
Victim Service Award Recipients: Federal Bureau of Investigation
United States v. Amit Kanodia
Recipient: Federal Bureau of Investigation; U.S. Securities and Exchange Commission, Office of Litigation Economics, Division of Economic and Risk Analysis
United States v. Vida Causey
Recipients: Internal Revenue Service, Criminal Investigation; U.S. Department of Agriculture, Food and Nutrition Service, Retailer Investigations Branch; U.S. Department of Agriculture, Office of Inspector General; U.S. Food and Drug Administration, Office of Criminal Investigation
United States v. Sihai Cheng and U.S. v. Qiang Hu
Recipients: Federal Bureau of Investigation; Homeland Security Investigations; U.S. Department of Commerce, Office of Export Enforcement
Drug Diversion Settlements - Drug Enforcement Administration
Recipient: Drug Enforcement Administration
United States v. James Merrill
Recipient: Homeland Security Investigations (Recipients also received the Victim Service Award)
United States v. Elmer Reyes
Recipients: Chelsea Police Department; Federal Bureau of Investigation
United States v. Gary Sampson
Recipient: Massachusetts State Police (Recipients also received the Victim Service Award)
United States v. Patria Zuniga, et al.
Recipient: Homeland Security Investigations (Recipient also received the Victim Service Award)
United States v. Baljit Singh Rehal, et al.
Recipient: Federal Bureau of Investigations
United States v. R. David Cohen
Recipient: Internal Revenue Service, Criminal Investigation
United States v. Raymond Jeffreys, et al.
Recipients: Boston Police Department; Federal Bureau of Investigation; Homeland Security Investigations; Suffolk County District Attorney’s Office (All recipients also received the Victim Service Award)
United States v. Edward Tutunjian
Recipients: Internal Revenue Service; Boston Police Department; Cambridge Police Department; Homeland Security Investigations; Internal Revenue Service, Criminal Investigation; U.S. Department of Labor, Employee Benefits Security Administration; U.S. Department of Labor, Office of Inspector General; U.S. Department of Labor, Wage and Hour Division; U.S. Housing and Urban Development, Office of the Inspector General
The category of Exceptional Contribution to a Federal Investigation recognized those whose actions significantly impacted law enforcement’s ability to arrest, apprehend, and prosecute a subject of a federal investigation; rescue and respond to victims; develop cooperating witnesses; or identify critical intelligence.
United States v. James Merrill
Recipients: Federal Bureau of Investigation
Under Agreement with United States and State of Texas, Vopak to Reduce Hazardous Air Pollution at Chemical Storage Facility in Deer Park, TexasRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA) and the Texas Commission on Environmental Quality today announced an agreement with Vopak Terminal Deer Park Inc. and Vopak Logistics Services USA, Inc., that will improve air quality in the Houston area by strengthening air pollution controls and compliance with federal and state clean air laws at Vopak’s chemical storage terminal and wastewater treatment facility in Deer Park, Texas.
“Today’s settlement reflects the Justice Department’s commitment to protecting clean air for the American people in partnership with the states,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The settlement will bring Vopak into compliance with federal and state clean air laws and will result in improved air quality for the residents of Harris County. We are proud to have partnered with Texas on this important result.”
“This agreement means cleaner air for Houston and will improve Vopak’s compliance with important federal and state laws,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “EPA is committed to working with state partners like Texas to achieve and ensure monitoring of compliance with environmental laws.”
Under today’s agreement, which resolves alleged Clean Air Act violations at the Deer Park facility, Vopak will install state-of-the-art air pollution controls at the facility’s wastewater treatment system, and will use infrared cameras to detect harmful air pollution from the facility’s chemical storage tanks that would otherwise be invisible to the naked eye. The company will also hire a third party auditor to improve how Vopak manages waste and evaluate its compliance with the agreement.
When fully operational, these measures will significantly cut emissions of volatile organic compounds (VOCs) and hazardous air pollutants at Vopak’s bulk chemical storage terminal and wastewater treatment facility.
Vopak’s Deer Park facility is in Harris County, Texas, an area that is classified as non-attainment for ozone.
EPA, the Justice Department and the State of Texas alleged that Vopak failed to comply with Clean Air Act requirements to properly manage equipment, which resulted in excess emissions of acetone, benzene, styrene and VOCs at an on-site wastewater treatment system. The federal government and Texas also alleged that Vopak failed to operate flares and chemical storage tanks in accordance with good air pollution practices, as required by state and federal law.
Ground level ozone is not emitted directly into the air, but is created by chemical reactions between oxides of nitrogen (NOx) and VOCs in the presence of sunlight. Emissions from industrial facilities and electric utilities, motor vehicle exhaust, gasoline vapors and chemical solvents are some of the major sources of NOx and VOCs. Excessive levels of VOCs, hazardous air pollutants, and ozone can cause harmful effects to public health, particularly children and the elderly, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system.
As part of today’s agreement, Vopak will also pay a civil penalty of $2.5 million, split between the U.S. and the State of Texas.
Today’s agreement, a consent decree formalizing the settlement, was lodged with the U.S. District Court in the Southern District of Texas and is subject to a 30-day public comment period and final court approval. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website:www.justice.gov/enrd/consent-decrees.
For more information on this settlement or for a copy of the consent decree, visit www.epa.gov/enforcement/vopak-north-america-inc-clean-air-act-settlement-agreement
U.S. Navy Admiral Sentenced to Prison for Lying to Federal Investigators about His Relationship with Foreign Defense Contractor in Massive Navy Bribery and Fraud InvestigationRead the Press Release
U.S. Navy Rear Admiral Robert Gilbeau was sentenced today to 18 months in prison for lying to investigators to conceal his illicit 20-year relationship with Leonard Glenn Francis, the owner of Glenn Defense Marine Asia (GDMA), the foreign defense contractor at the center of a major bribery and fraud scandal.
Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana W. Robinson of the Southern District of California, Acting Director Dermot O’Reilly of the Department of Defense’s (DOD) Defense Criminal Investigative Service (DCIS), Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Director Anita Bales of Defense Contract Audit Agency (DCAA) made the announcement.
On June 9, 2016, Gilbeau, 56, pleaded guilty to one count of making false statements and was sentenced before U.S. District Judge Janis L. Sammartino of the Southern District of California. Gilbeau is the highest-ranking U.S. Navy officer to be sentenced in the investigation so far.
In connection with his plea, Gilbeau admitted that he lied when he told agents from DCIS and NCIS that he had never received any gifts from Francis. Gilbeau also admitted that he lied when he told investigators that he “always paid for half of the dinner” when he and Francis met about three times a year. Gilbeau further admitted that when he became aware that Francis and others had been arrested in connection with the fraud and bribery offenses in September 2013, he destroyed documents and deleted computer files. Francis previously pleaded guilty to plying scores of other U.S. Navy officials with gifts such as luxury travel, meals, cash, electronics, parties and prostitutes.
By way of background, GDMA provided ship husbanding services such as trash and sewage removal, food, water, security and fuel to U.S. Navy ships. As stated in his plea agreement, in 2003 and 2004, Gilbeau was the supply officer on the USS Nimitz, where he was responsible for procuring all goods and services necessary for operation of the ship. He later served as head of the Tsunami Relief Crisis Action Team in Singapore, heading the Navy’s logistics response to the Southeast Asia tsunami in December 2004, and in June 2005, Gilbeau was assigned to the office of the Chief of Naval Operations as the head of aviation material support, establishing policies and requirements for budgeting and acquisitions for the Navy’s air forces, according to the plea agreement. In August 2010, after he was promoted to admiral, Gilbeau assumed command of the Defense Contract Management Agency International, where he was responsible for the global administration of DOD’s most critical contracts performed outside the United States, according to admissions made in connection with his plea.
Twenty current and former Navy officials have been charged so far in the fraud and bribery investigation. Of the 20 Navy officials, 10 have pleaded guilty, and 10 cases are pending. Five GDMA executives and the GDMA corporation have pleaded guilty.
The DCIS, NCIS and the DCAA are investigating this case. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
U.S. Navy Admiral Sentenced for Lying to Feds about his Relationship with Foreign Defense Contractor in Massive Navy Bribery and Fraud InvestigationRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – May 17, 2017
SAN DIEGO – The first active-duty U.S. Navy Admiral ever convicted of a federal crime was sentenced today to 18 months in prison for lying to investigators to conceal his illicit 20-year relationship with Leonard Glenn Francis, the foreign defense contractor at the center of a colossal bribery and fraud scandal.
U.S. Navy Rear Admiral Robert Gilbeau pleaded guilty to one count of making false statements on June 9, 2016, admitting that he lied when he told federal agents that he had never received any gifts from Francis, owner of Singapore-based Glenn Defense Marine Asia. The company provided ship husbanding services such as trash and sewage removal, food, water, security and fuel to U.S. Navy ships.
According to the government’s sentencing memo, Gilbeau did indeed receive many expensive gifts plus cash from Francis since 1997. The long history between the two men involved many late nights of partying at nightclubs and karaoke bars, fine dining, luxury hotels and prostitutes – all paid for by Francis. For his part, Gilbeau signed off on inflated GDMA invoices which grossly overbilled the Navy.
When the massive corruption and fraud were discovered, Gilbeau repeatedly lied to investigators from Defense Criminal Investigative Service and Naval Criminal Investigative Service about his relationship with Francis. When Gilbeau became aware that Francis and others had been arrested in connection with the fraud and bribery offenses in September 2013, Gilbeau destroyed documents and deleted computer files. And he continued to lie.
During the sentencing hearing, U.S. District Judge Janis L. Sammartino noted that Gilbeau’s reaction to the arrests was “a systematic destruction of records.” “You did everything possible to hide and conceal your relationship with Leonard Francis and in the process you tried to thwart the investigation...You violated the law. You dishonored your shipmates, the Navy and the United States of America.”
Gilbeau, who is free on bond, was ordered to report to the custody of the Bureau of Prisons on June 23, 2017.
“This is the first time our nation will incarcerate a Navy Admiral for a federal crime committed during the course of his official duty, and it is truly a somber day,” said Acting U.S. Attorney Alana W. Robinson. “When tempted by parties and prostitutes, one of our most respected leaders chose karaoke over character, and cover-up over confession, and in doing so he forever tarnished the reputation of a revered institution.”
“Today's sentencing of Rear Admiral Robert Gilbeau closes a sad chapter on a naval flag officer's career tarnished by dishonorable behavior such as lying, destroying evidence and concealing the acceptance of gifts and gratuities from a defense contractor," said Dermot F. O'Reilly, Director, Defense Criminal Investigative Service. “As this investigation has shown, no one is above the law, regardless of rank or status, and they will be held accountable just as anyone else who has benefitted from this criminal scheme. The sentencing of Admiral Gilbeau continues the tireless efforts and commitment of DCIS, the Naval Criminal Investigative Service, and the Department of Justice to investigate and prosecute any individual who places at risk the safety and security of our armed forces personnel.”
“NCIS, in concert with our partner agencies, remains resolved to follow the evidence wherever it may lead in the ongoing investigation into Glenn Defense Marine Asia and NCIS will seek to hold accountable anyone, regardless of rank, who tries to hamper the investigation by lying or obstructing justice in any manner,” said NCIS Director Andrew Traver.
According to the government sentencing memo, Gilbeau first met Francis when Gilbeau served aboard the USS Boxer in 1997. During a multi-day port visit to Bali, Indonesia, Francis plied Gilbeau and another U.S. Navy officer with hotel rooms, dinners and the services of prostitutes.
In 2003, when the pair became reacquainted, Gilbeau was serving on the USS Nimitz. He again accepted hotel rooms, lavish dinners and prostitutes from Francis on several occasions.
After several of these escapades, Gilbeau personally approved GDMA invoices which inflated the charges to the U.S. Navy. In one instance, Gilbeau signed an invoice for the removal of wastewater from the ship during the port visit to Singapore in October 2003. Based on Gilbeau’s signature, the Navy paid for the highest per-day volumes of wastewater removal in the history of the USS Nimitz. In return, evidence in the investigation suggests GDMA kicked back $40,000 cash to Gilbeau. Gilbeau denies this allegation.
Francis also had contact with Gilbeau in 2005, when Gilbeau returned to Singapore to coordinate the U.S. Navy’s tsunami relief efforts. Gilbeau, who called himself “Tsunami Bob,” partied with Francis on three or four occasions, typically with an expensive dinner, followed by Brix Nightclub and Tiananmen Karaoke Bar.
According to other information received and reviewed as part of the investigation, on several occasions, Francis paid for hotel rooms and provided Gilbeau other things of value, during his stint in Singapore in 2005. According to interview statements and corroborating documents, Francis and Gilbeau again dined and caroused together in December 2010. On this occasion, Francis, Gilbeau - who had been promoted in the interim to Rear Admiral - and Gilbeau’s flag aide, dined at the Mezza9 Restaurant in the Hyatt Hotel in Singapore. After returning his flag aide to her hotel after dinner, Gilbeau rejoined Francis to continue the party at Brix Nightclub and the after party at Tiananmen Karaoke Bar.
To cap the evening, Francis drove Gilbeau and two prostitutes from Vietnam back to Gilbeau’s hotel. The next day, Francis emailed Gilbeau inquiring of the evening’s conclusion. Francis wrote: “How was the after action from the 1st night? Require AAR (After Action Report) Sir.” Gilbeau replied, “Very nice…. BZ.” “BZ” is a Navy term meaning “Bravo Zulu,” which means “well done.”
According to the sentencing memo, things started to unravel for Gilbeau in September 2012, when he became aware that Francis and GDMA were under investigation by NCIS for various fraud and public corruption offenses.
On November 27, 2012, Gilbeau submitted to his command a Foreign Contact Questionnaire, wherein he disclosed a September 26, 2012 contact with Francis, and in which he willfully, falsely stated “No” in answer to the question: “Have you ever received any gifts from [Leonard G. Francis]?”
In a subsequent voluntary interview by NCIS agents on February 20, 2013, Gilbeau stated that he and Francis met about three times a year but that defendant “always pa[id] for his half of the dinner.” That statement, too, was false: Francis paid for dinners, hotel rooms, and prostitutes for Gilbeau on many occasions.
According to the sentencing memo, after the arrests of Francis and others in 2013, Gilbeau, while serving in Afghanistan, became paranoid and erratic. He asked for direction on how to wipe clean his electronic devices; he refused to meet with others unless they removed the batteries from their cell phones; he removed his aides’ access to his U.S. Navy email accounts; and he destroyed and/or deleted certain paper records and computer files. Gilbeau was charged in June of 2016.
Twenty current and former Navy officials have been charged so far in the fraud and bribery investigation; 10 have pleaded guilty and 10 cases are pending. In addition, five GDMA executives and GDMA the corporation have pleaded guilty.
In his remarks at today’s hearing, Assistant U.S. Attorney Mark Pletcher told the court:
“Today, Your Honor, is a solemn and tragic day, for Bob Gilbeau, his family and friends, but also for the United States Navy, and our nation…Beyond the tragedy, today is also a day of great importance, as one of finality for Mr. Gilbeau; one of healing for the U.S. Navy; and more broadly, it is one of great importance for our constitutional democracy. We the People consent to be governed. We live by the Rule of Law, applicable to all regardless of rank, stature or privilege. In our Country, no one is above the law.”
The Defense Criminal Investigative Service, Naval Criminal Investigative Service and the Defense Contract Audit Agency are investigating. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 16CR1313-JLS
U.S. Navy Rear Admiral Robert Gilbeau Age 56 San Diego, CA
SUMMARY OF CHARGES
False Statements, in violation of 18 U.S.C. § 1001
Maximum Penalty: Five years in prison
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
U.S. Attorney’s Office Announces “Be Here for Kids” Child Safety Event in PhoenixRead the Press Release
U.S. ATTORNEY’S OFFICE ANNOUNCES
“BE HERE FOR KIDS”
CHILD SAFETY EVENT IN PHOENIX
PHOENIX- The U.S. Attorney’s Office for the District of Arizona, as part of the Department of Justice’s Project Safe Childhood initiative, is hosting the ‘Be Here for Kids’ event on Thursday, May 25th, 2017 at the Desert Ridge Marketplace in Phoenix. The event will take place from 10:00 a.m. to 2:00 p.m.
The National Center for Missing and Exploited Children (NCMEC) created the ‘Be Here for Kids’ campaign to promote awareness about all child safety issues. The campaign is designed to help parents and others teach children to be aware, alert, and cautious to potential threats and to provide steps that children can take to stay safe, both on the Internet and in daily life.
This year’s event is being presented in partnership with the Arizona Attorney General’s Office, the U.S. Marshals Service, Maricopa County Victim Services, Phoenix Police Department, Department of Homeland Security, Mothers Against Drunk Drivers, BOLO Cop, Camelback Daylight #75, the Federal Bureau of Investigation, and Red Means Stop Traffic Safety Alliance.
The Phoenix Police Department will be providing an armored vehicle from the bomb squad and officers from its motorcycle unit. The U.S. Marshals Service will be introducing its Marshal dog (Joy). Maricopa Victim Services will be introducing its court dog. Digital child identification kits will be provided free of charge to children who attend.
For more information on NCMEC, visit www.missingkids.com. For more information about the Be Here for Kids campaign, visit www.missingkids.com/behereforkids. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2017-044_Be Here for Kids_Phx
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two Minneapolis Men Sentenced for Violent Armed Robbery of A Minneapolis Convenience StoreRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the sentencing of STEPHON TREAVON REGGS, 22, to 197 months in prison and JOSHUA REGGS, 20, to 120 months in prison for the armed robbery of a convenience store in south Minneapolis. Both defendants entered guilty pleas and were sentenced on May 16, 2017, before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn. A third defendant, JERROD NAJEE WILLIAMS, 29, was also charged in connection with the robbery. WILLIAMS pleaded guilty on June 6, 2016, and is awaiting sentencing.
According to the defendant’s guilty plea and documents filed in court, on January 6, 2016, STEPHON REGGS, JOSHUA REGGS and JERROD WILLIAMS entered a convenience store in south Minneapolis, Minn. STEPHON REGGS and WILLIAMS were armed with semi-automatic pistols. WILLIAMS demanded from the store employee money from the cash register, to which the store employee complied, giving the defendants approximately $2,000. During the robbery, STEPHON REGGS pistol-whipped the employee, causing a serious injury that required stitches. When the employee fled the store on foot, STEPHON REGGS followed the employee and discharged the semi-automatic pistol he was carrying. All three defendants then fled the scene in a stolen vehicle and WILLIAMS crashed it into a parked car. When police tried to arrest them, all three defendants attempted to flee on foot and had to be physically subdued by police officers.
This is the result of an investigation by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney David Steinkamp prosecuted this case.
Defendant Information:
STEPHON TREAVON REGGS, 22
St. Paul, Minn.
Convicted:
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Hobbs Act robbery, 1 count
- Discharging a firearm during and in relation to a crime of violence, 1 count
Sentenced:
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197 months in federal prison
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Five years supervised release
JOSHUA REGGS, 20
Minneapolis, Minn.
Convicted:
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Hobbs Act robbery, 1 count
- Using, carrying and discharging a firearm during and in relation to a crime of violence, 1 count
Sentenced:
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120 months in federal prison
- Five years supervised release
JERROD NAJEE WILLIAMS, 29
Minneapolis, Minn.
Convicted:
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Hobbs Act robbery, 1 count
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Using, carrying and discharging a firearm during and in relation to a crime of violence, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Two Men Indicted for String of Armed RobberiesRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment yesterday charging two men with committing six armed robberies of commercial businesses in the Richmond area.
According to the indictment, Antonio Lamont Jones, Jr., 19, of Chesterfield, and Derrick Orlando Ramsey, Jr., 27, of Petersburg, committed the following armed robberies in and around Richmond:
Date
Location
June 30, 2016
7-Eleven located at 5549 Belmont Road in Chesterfield
July 11, 2016
Sunoco located at 961 Temple Avenue in Colonial Heights
July 11, 2016
7-Eleven located at 3301 Oaklawn Boulevard in Hopewell
July 21, 2016
7-Eleven located at 12120 Harrowgate Road in Chesterfield
July 29, 2016
7-Eleven located at 121 Turner Road in Chesterfield
August 10, 2016
7-Eleven located at 10121 Chester Road in Chesterfield
Jones and Ramsey are each charged with one count of conspiracy; six counts of robbery affecting commerce; and two counts of using, carrying, and possessing a firearm in furtherance of a crime of violence. Jones is also charged with one count of possession of a firearm by a drug user.
Jones faces a maximum sentence of 162 years in prison if convicted and Ramsey faces a maximum sentence of 152 years if convicted. 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, and John K. Lenkart, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
This case was investigated by the FBI Richmond Division in partnership with the Henrico County Police Division, the Chesterfield County Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, as part of the FBI Richmond Central Virginia Violent Crimes Task Force.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-61.
Trio Charged with Conspiracy to Distribute HeroinRead the Press Release
Cesar Jaime Ayala, 37, of Mission, Texas; Eugene Harwood, 57, of Greenbrier, Arkansas; Victor Gutierrez, 55, of Philadelphia, Pennsylvania; and Marcos Callejas-Nava, 35, of Marietta, South Carolina, were charged today by Indictment with one count each of conspiracy to distribute 1 kilogram or more of heroin, possession with intent to distribute 1 kilogram or more of heroin, possession with intent to distribute 1 kilogram or more of heroin within 1000 feet of a school, and aiding and abetting, announced Acting United States Attorney Louis D. Lappen. In addition, Victor Gutierrez was also charged with one count of maintaining a drug-involved premises.
If convicted the defendants face a maximum possible sentence of lifetime imprisonment, lifetime supervised release, $30,000,000 fine, and $300 special assessment. For count 4, Gutierrez faces an additional maximum sentence of 20 years’ imprisonment, $500,000 fine, and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration, the Montgomery County Narcotics Enforcement Team, and the Montgomery County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Jennifer B. Jordan.
Three Mexican nationals indicted for reentry of removed alienRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury indicted three Mexican nationals on charges they reentered the country illegally, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Bonifacio Zarate-Flores, age 27, was indicted on one count of “Reentry of Removed Alien.” Zarate-Flores was removed from the United States in 2015 and 2016. He was then allegedly found in Berkeley County on April 18, 2017.
Eusebio Paulino Lopez-Lopez, age 28, was indicted on one count of “Reentry of a Removed Alien.” Lopez-Lopez was removed from the United States in 2008. He was allegedly found in Berkeley County on April 8, 2017.
Regino Castro-Sanchez, age 45, was indicted on one count of “Reentry of a Removed Alien” and one count of “Fraud and Misuse of Visas, Permits, and Other Documents.” Castro-Sanchez was removed from the United States in 2003. He was allegedly found in Berkeley County on April 19, 2017.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the Zarate-Flores and Castro-Sanchez cases on behalf of the government. Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the Lopez-Lopez case on behalf of the government. The United States Department of Homeland Security Immigrations & Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Defendants sentenced for stealing over $4.3 Million in U.S. Government FundsRead the Press Release
ATLANTA - Prentice L. Johnson, Renina Letricia Wortham, a/k/a Renina Simmons-Wortham, and Enobahkare Malik Peterson have each been sentenced to two years, four months in federal prison for theft of government funds associated with the theft of a multi-million dollar U.S. Treasury check.
“The defendants wrongly assumed no one would miss a multi-million dollar U.S. Treasury check that was not made out to them,” said U.S. Attorney John Horn. “Quick work by federal agents stopped their attempts to negotiate the check before the defendants were able to abscond with millions in taxpayer funds.”
“TIGTA and its law-enforcement partners will investigate individuals who attempt to steal the revenue generated by the American taxpayer, and will do everything within their power to ensure that those involved are prosecuted to the fullest extent of the law,” said Special Agent in Charge Ruben Florez of TIGTA’s Atlanta Field Division. “TIGTA would like to thank the U.S. Secret Service and IRS Criminal Investigations for their assistance in this case.”
“The United States Secret Service and our law enforcement partners will continue to take an aggressive approach to arrest individuals who violate their positions of trust in an attempt to illegally enrich themselves,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentencing should be a warning to other like-minded criminals and their conspirators that stealing from the American people will not go unpunished.”
“Individuals who attempt to commit refund fraud and theft with this degree of dishonesty and deceit will face consequences for their actions,” stated James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “IRS Criminal Investigation will continue to do our part in protecting the sanctity and integrity of the tax system.”
“The collaborative investigative efforts prevented these criminals from further exploiting and causing considerable financial damage and inconvenience to the victim,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “U.S. Postal Inspectors are charged with defending the nation’s mail system and will pursue those who insist on defrauding unwitting victims in furtherance of their deceptive schemes.”
According to U.S Attorney Horn, the charges and other information presented in court: Johnson, who worked as a payroll manager at a private company, stole a U.S. Treasury check in the amount of $4,368,869.30 that he found at his employer in late August 2016. The check was a refund check from the IRS, made out to Johnson’s employer. Shortly before stealing the check, Johnson became aware that his employer was laying him off. The employer had not notified Johnson of the layoff, but he saw that his upcoming paycheck contained payment for unused vacation time, which gave away the fact that he was about to lose his job.
After stealing the $4.3 million check, Johnson asked Wortham, who is his half-sister, to help him negotiate it. Wortham, in turn, recruited Peterson to help her negotiate the check. Because the check was so large, Peterson contacted two associates for assistance, rather than trying to negotiate it himself. At the time, Peterson had no idea that the associates, through counsel, were then engaged in negotiations with federal authorities to resolve unrelated federal criminal charges. In turn, counsel contacted federal law enforcement.
Federal agents confirmed with the U.S. Treasury that the check was genuine, and then acted quickly to stop payment on the check and prevent any losses to the U.S. Treasury. Agents also orchestrated a series of undercover operations in order to identify those responsible. The cooperators had identified Peterson to agents, but the identity of the person he recieved the check from was still a mystery.
In an interview with the CEO of the company that was the payee on the check, agents learned: 1) that Johnson was a recently terminated employee of the company; 2) that Johnson had learned of his impending layoff before the company notified him; and 3) that Johnson would have had physical access to the check.
On October 27, 2016, federal agents supervised the cooperators as they met with Peterson and Wortham at a restaurant. For security reasons, Wortham did not bring the check to the meeting. Wortham introduced herself as “Nina,” and explained that she worked as a chef at a catering business. Using this information in a series of public records searches, agents positively identified her as Wortham within a few minutes. Wortham told the cooperators that she had obtained the check from a family member, and that the cooperators, Wortham, and her family member would share the proceeds of the check. Wortham also claimed at the meeting that there were approximately 22 additional checks, with the $4.3 million check being the smallest. Later, in a confession made after her arrest, Wortham admitted that there was only one check, and that she made up the story about having 22 additional checks in order to give her coconspirators a reason not to steal from her.
The next day, on October 28, 2016, federal agents again supervised one of the cooperators as he met with Wortham at a coffee shop. Wortham explained that she felt good about the plan the cooperators had explained to her for cashing the check. Wortham handed over the check to the cooperator, who promised to “get the deal rolling,” and follow up with her after 7-10 days with debit cards for a new bank account with the funds from the check in it.
Based on Wortham’s claim that the check had come from a relative, agents performed intensive public record searches to identify her family members, taking special notice of any who had a connection with the company to which the check was made. Through analysis of public records, agents learned that Wortham and Johnson had both lived with and had close associations with the same woman, who later turned out to be their mother. Later, in her confession, Wortham confirmed that Johnson had been the relative she referred to in the undercover meeting, and that he was the source of the check.
On Friday, November 10, 2016, the cooperator had one last undercover meeting with Wortham, ostensibly to provide her with the checkbook and debit cards to the new account, which had purportedly been funded with the stolen IRS check. However, agents had already sworn out criminal complaints against, and obtained arrest warrants for, all 3 defendants. Wortham was arrested at the November 10, 2016 meeting, and Johnson and Peterson turned themselves in shortly thereafter, after learning of their warrants.
The three defendants were sentenced by U.S. District Judge Timothy H. Batten as follows:
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Prentice L. Johnson, 54, of Lawrenceville, Georgia, was sentenced to two years, four months in prison to be followed by 3 years of supervised release. Johnson pleaded guilty on January 30, 2017, pursuant to a plea agreement.
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Renina Letricia Wortham, a/k/a Renina Simmons-Wortham, 39, of Lithonia, Georgia was sentenced to two years, four months in prison to be followed by three years of supervised release. Wortham pleaded guilty on January 30, 2017, pursuant to a plea agreement.
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Enobahkare Malik Peterson, 41, of Atlanta, Georgia was sentenced to two years, four months in prison to be followed by three years of supervised release. Peterson pleaded guilty on January 26, 2017, pursuant to a plea agreement.
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Citizens who have information about stolen or fraudulently obtained federal funds are encouraged to report their tips to the Treasury Inspector General for Tax Administration hotline at (800) 366-4486, or online at .
This case was investigated by the U.S. Treasury Inspector General for Tax Administration, U.S. Secret Service, Internal Revenue Service Criminal Investigation, and U.S. Postal Inspection Service, with assistance from the United States Treasury, Office of Inspector General.
Assistant United States Attorney Alana R. Black prosecuted 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
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Tennessee Man Sentenced to 120 Months in Prison for Possessing over 67 Pounds of MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On May 15, 2017, Juan Beteme Amezquita, age 42, of Murfreesboro, Tennessee, was sentenced by Senior United States District Court Judge James E. Gritzner to 120 months in prison for possession with intent to distribute over 67 pounds of methamphetamine, announced United States Attorney Kevin E. VanderSchel. Beteme will be required to serve three years of supervised release following his imprisonment.
The charge resulted from an investigation stemming from a traffic stop that occurred in Council Bluffs, Iowa. Methamphetamine was found in a trailer pulled by Beteme, and concealed in a newly purchased freezer and wrapped in plastic. Beteme admitted to picking up the methamphetamine in Los Angeles, California, and intended on delivering the methamphetamine to Minnesota.
The Southwest Iowa Narcotics Enforcement Task Force, the Pottawattamie County Sheriff’s Office, and the Pottawattamie County Attorney’s Office conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Task Force Investigation Targets Leadership of MS-13, including Former Top ‘Shot-Caller’ of L.A. Faction, a Dozen ‘Shot-Callers’ who Supervised Cliques and Three Members Accused of MurderRead the Press Release
LOS ANGELES – Capping a nearly three-year investigation, federal, state and local law enforcement authorities this morning took into custody a total of 21 members and associates of Mara Salvatrucha, a transnational criminal street gang commonly called MS-13 that was formed in Los Angeles about 30 years ago.
Those arrested today by members of the Los Angeles Metropolitan Task Force on Violent Gangs (LAMTFVG) are among 44 defendants who face federal charges, including the former head of the entire gang in Los Angeles and 12 senior leaders of the gang, who led a majority of the gang’s cliques in the Los Angeles region. These dozen high-ranking gang members had formed a de facto leadership council for the gang – a committee that was needed because no one person was willing to take on the top role in the wake of ongoing scrutiny by law enforcement.
A racketeering indictment charges three MS-13 members for murders they committed in connection with the gang’s activities. These murders were solved as a result of the LAMTFVG investigation and its partnership with LAPD Olympic Division Homicide detectives.
Carlos Alfredo Cardoza Lopez, also known as “Little Boy,” 23, faces a violent crime in aid of racketeering (VICAR) murder charge for allegedly fatally shooting an innocent bystander who was confronted on August 15, 2015 inside the gang-controlled Little San Salvador Nightclub and Restaurant on North Western Avenue. A friend of the murder victim was also stabbed during the attack.
Two other MS-13 members – Samuel Alexander Paredes Rivas, also known as “Blacky,” 39, and Joffri Molina, also known as “Espia,” 24 – are also charged with VICAR murder. Rivas is accused of murdering a man on August 30, 2015 at a strip mall in Pacoima. Molina is accused of murdering a man on September 27, 2015 on a street in North Hollywood.
Lopez, Rivas and Molina are eligible for the death penalty if found guilty of the murder offenses. Prosecutors will decide whether to seek the death penalty at a later date.
“This gang is responsible for murders – both of rival gangsters and innocent bystanders – as well as drug dealing and extortion in many communities in the Los Angeles area,” said Acting United States Attorney Sandra R. Brown. “With thousands of members here in the Southland, the gang’s power is widespread – power which it maintains with severe acts of violence. Today’s charges and arrests, however, will deal a critical blow to the top leadership of this criminal organization and will significantly improve safety in neighborhoods across this region.”
“This case has targeted the leadership and most violent actors of the MS-13 street gang in Los Angeles, as well as MS-13’s links to the Mexican Mafia,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This operation will have a significant impact on this violent gang and their overall ability to maintain control over law-abiding citizens.”
“This operation is a powerful example of the significant impact partnerships play in law enforcement,” said Los Angeles Police Chief Charlie Beck. “The successful arrest of these individuals was only possible because a wide range of agencies collaborated with each other, based on information gleaned from countless investigation hours and tips provided by people who could trust our police officers, regardless of their immigration status.”
At the center of today’s takedown is a 41-count racketeering indictment that charges 34 members and associates of MS-13. The indictment, which alleges violations of the federal Racketeer Influence and Corrupt Organizations (RICO) Act, outlines the gang’s organizational structure, its affiliation with the Mexican Mafia prison gang, and its strict set of rules and punishment. The 127-page indictment describes how MS-13 uses violence and intimidation in an effort to maintain its power and control narcotics trafficking.
The lead defendant in the RICO indictment is Jose Balmore Romero, also known as “Porky,” 43, who in 2013 and 2014 was the overall shot-caller for MS-13 Los Angeles. The indictment alleges that, as the leader of the gang, Balmore oversaw MS-13’s drug trafficking activities, coordinated the collection of extortionate “taxes” and “rent,” some of which was then distributed to Mexican Mafia members who oversaw MS-13. Balmore also allegedly conducted and attended gang meetings, where he disseminated orders, including authorizing the “jumping in” of new members and the assault of members who were in bad standing. Balmore has been in local custody since February 2015, when the LAMTFVG arrested him for ordering a gang-related murder.
In addition to narcotics trafficking and violent crimes, members of MS-13 also allegedly engaged in a wide range of criminal conduct that includes the extortion of street-level drug dealers and innocent business owners who were threatened with death if they did not make payments to the gang. The gang also operates illegal after-hours clubs where it generates profits from gambling and illegal narcotics and alcohol sales.
“This gang uses coercion and intimidation while inflicting horrific violence in the neighborhoods where they operate,” said ATF Los Angeles Field Division Special Agent in Charge Eric Harden. “Today is a great win for justice and a heavy message to the community. Law enforcement will combine their resources and all our areas of expertise to cripple these organizations. We will win, they will lose.”
In addition to the 34-defendant RICO indictment, prosecutors have filed a drug-trafficking indictment against five other gang members who were associated with the Mexican Mafia. These defendants are charged with conspiracy to distribute controlled substances, as well as various narcotics and firearms offenses.
Two other MS-13 members have also been charged separately with narcotics and firearms offenses.
One defendant charged in this sweep is named in a case filed under seal because he was a juvenile at the time of the alleged offenses.
Prosecutors this morning are filing criminal complaints in federal court against two additional defendants who were arrested this morning, one of whom is a shot-caller of an MS-13 clique who is currently on supervised release after being convicted in a prior racketeering case.
“The relationship between drugs, violent crimes, and street gangs isn’t new to DEA – the illicit drug market serves as the life-blood of street gang operations,” said DEA Special Agent in Charge David J. Downing. “The DEA and Southern California Drug Task Force are committed to disrupting the flow of drugs into our communities and mitigating the associated violence these gangs perpetuate.”
During this morning’s operation, authorities arrested a total of 21 federal defendants. Out of the 44 defendants facing federal charges, 20 were already in custody and three are considered to be fugitives.
An indictment or criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Those taken into custody today are expected to be arraigned on the charges against them this afternoon in United States District Court. The defendants who are currently in custody will be brought into federal court to face the charges at a later date.
The investigation into MS-13 was conducted by the Los Angeles Metropolitan Task Force on Violent Gangs and was led by the Federal Bureau of Investigation and the Los Angeles Police Department.
The LAMTFVG includes personnel from the Drug Enforcement Administration’s Southern California Drug Task Force pursuant to the High Intensity Drug Trafficking Area (HIDTA) program; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Los Angeles County Sheriff’s Department; U.S. Customs and Border Protection; and the California Department of Corrections and Rehabilitation. U.S. Immigration and Customs Enforcement and the United States Bureau of Prisons participated in the investigation.
Other agencies provided substantial assistance during the investigation, including the Los Angeles Regional Criminal Information Clearinghouse (LA CLEAR), the Los Angeles City Attorney's Office, the Los Angeles County Probation Department, and the Los Angeles County Department of Children and Family Services.
The prosecution of the RICO case and the related federal cases is being handled by Assistant United States Attorneys Joanna Curtis and Jeff Chemerinsky of the Violent and Organized Crime Section.
Tahlequah Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that SAMUEL NOLAN DOTY, age 47, of Tahlequah, Oklahoma, pled guilty to POSSESSION OF CERTAIN MATERIAL INVOLVING THE SEXUAL EXPLOITATION OF MINORS, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2), punishable by 10 to 20 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that between on or about April 17, 2014, and on or about August 24, 2016, in the Eastern District of Oklahoma, the defendant, did knowingly possess, attempt to possess and access with intent to view matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charge arose from an investigation by the Cherokee County Sheriff’s Office, the United States Marshal’s Service, and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
Two Convenient Store Managers Plead Guilty to Federal Charges Involving Food Stamp FraudRead the Press Release
Cape Girardeau, MO – Manager Larry White, Sr. of Stop-n-Go Fish Market, Sikeston, MO, and his daughter Erica White, manager of Stop-N-Go Mini Mart store pled guilty to charges of misusing the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. Each admitted with their pleas that they illegally redeemed up to $549,000 in SNAP benefits between December 2010 and March 2014 by exchanging SNAP benefits for cash and illegible items.
According to court documents, the Missouri Department of Social Services, Family Support Division (FSD) issues Electronic Benefits Transfer Cards (EBT), for the Supplemental Nutrition Assistance Program (SNAP), more commonly known as food stamps. Authorized grocery retailers can only accept and redeem SNAP benefits for the sale of eligible food items. They are not permitted to exchange or redeem SNAP benefits for cash or other ineligible items such as household goods, alcoholic beverages, tobacco products, cellular telephones or other non-food items.
Larry White, Sr., 63, and Erica White, 35, both of Sikeston, MO, pled guilty to multiple felony counts of unauthorized use of SNAP benefits and conspiracy. Both appeared today before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau. Sentencing has been set for August 16, 2017.
The conspiracy count carries a maximum penalty of five years in prison and/or fines up to $250,000 and SNAP fraud carries a maximum penalty of five years in prison and/or fines up to $10,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Department of Agriculture, Office of Inspector General-Investigations, Sikeston Department of Public Safety and the New Madrid County Sheriff’s Office. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.
Stratford Man Charged with Distributing Heroin Involved in Woman's OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that RAYMOND J. GORDON, also known as “X-RAY,” 30, of Stratford, was arrested today on a federal criminal complaint charging him with distributing heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
After his arrest, GORDON appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in court documents, on December 10, 2016, Stratford Police and emergency medical personnel responded to a Stratford residence after receiving a report of an unresponsive 22-year-old female. The female, who was in her bedroom, was pronounced deceased. Responding officers collected wax folds containing suspected heroin, a hypodermic needle and other drug paraphernalia from the bedroom. Investigators also seized the victim’s cellphone. The investigation revealed that the victim purchased heroin from GORDON shortly before she died.
The complaint charges GORDON with possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stratford Police Department. The task force includes personnel from the Norwalk, Stamford, Stratford, Milford and Bridgeport Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Statement of U.S. Attorney Deirdre M. Daly in Recognition of National Police WeekRead the Press Release
As the United States Attorney for the District of Connecticut, I have the honor of working closely with federal, state and local law enforcement officers on a daily basis. I am deeply appreciative of the professionalism, dedication and quiet courage these brave men and women continually demonstrate under demanding and often dangerous circumstances. Put simply, we would be lost without the goodwill and hard work of our police officers.
Established by a joint resolution of Congress in 1962, National Police Week pays special recognition to those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others. According to the National Law Enforcement Officers Memorial Fund, 143 police officers died in the line of duty last year – the highest figure since 2011, when 178 officers died. Officer deaths peaked in 1930, when 307 were killed. Since the mid-1970s, the number of officer deaths has hovered below 200 every year. The exception was in 2001, when 243 died – 72 of whom were killed in the 9/11 terrorist attacks, the most in any single incident in U.S. history. So far this year, 44 officers have died in the line of duty nationwide. Gun-related incidents have long been the leading cause of officer deaths. Over the last 10 years, 537 of the more than 1,500 officers who died in the line of duty were shot to death. Almost 400 died in car crashes, and 270 died as a result of job-related illness.
Here in Connecticut, I see firsthand how the men and women of law enforcement fulfill their sworn duty to uphold justice. I am grateful that National Police Week gives us a moment to pause to honor these brave public servants and to reflect on their commitment and valor. I hope that you will join me in thanking police officers everywhere for their service and for all that they do for all of us.
St. Charles, Republic Women Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a St. Charles, Mo., woman and a Republic, Mo., woman were sentenced in federal court today for their roles in a conspiracy to distribute large quantities of methamphetamine.
Cheryl D. Paluczak, 50, of St. Charles, and Heather L. Courtois, 33, of Republic, were sentenced by U.S. District Judge M. Douglas Harpool. Paluczak was sentenced to 11 years in federal prison without parole. Courtois was sentenced to four years in federal prison without parole.
Both Paluczak and Courtois pleaded guilty to their roles in the drug-trafficking conspiracy that lasted from June 1, 2013, to Nov. 29, 2014. Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated a large-scale methamphetamine distribution network in southwest Missouri involving several sources of supply. The investigation resulted in the indictment of 27 co-defendants.
Paluczak admitted that she obtained approximately one pound of methamphetamine from co-defendant Kenna Harmon, 37, of Republic. Paluczak intended to transport the methamphetamine to the St. Louis, Mo., area for distribution. This methamphetamine, however, was seized by law enforcement officers during a traffic stop on Oct. 15, 2014.
Kenna Harmon has pleaded guilty to being a leader, along with her husband, Daniel Harmon, in the drug-trafficking conspiracy as well as a money-laundering conspiracy and to being a felon in possession of a firearm. In total, the Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine.
Courtois admitted that she started getting methamphetamine from Kenna Harmon in August 2014. Courtois received ounce amounts of methamphetamine, for which she paid approximately $1,200 to $1,400 per ounce. In order to distribute the large amount of methamphetamine that she was responsible for selling, Kenna Harmon stored methamphetamine in several residences in Greene and Polk Counties, and directed several individuals to assist in maintaining those residences, including Courtois. Courtois rented a residence in Republic and provided it to Harmon, who stayed at the residence and used it in the storage and distribution of methamphetamine.
Law enforcement officers executed a search warrant at the Republic residence on Nov. 27, 2014, and found 5.5 pounds (2.49 kilograms) of methamphetamine, a loaded firearm and $20,000.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Southbridge Man Charged with Intent to Distribute OxycodoneRead the Press Release
BOSTON - Hector Espola, 30, was charged today in federal court in Worcester with possession of oxycodone with intent to distribute.
According to court documents, Espola allegedly sold 300 oxycodone pills on two occasions in July and August 2016 to an individual cooperating with federal investigators.
On Feb. 17, 2017, Espola was arrested in Massachusetts on a federal arrest warrant as he returned from New York City. Upon his arrest, agents found Espola in possession of 300 oxycodone pills.
The charge of possession with intent to distribute oxycodone 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 on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Southbridge Police Chief Shane Woodson, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seaford Heroin Dealer Pleads GuiltyRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware announced today that defendant Bob Bennett pled guilty today to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
According to facts disclosed at the change of plea hearing, Bennett—a 35-year-0ld Seaford resident—was a heroin dealer in Seaford who was known to possess and provide firearms to his sub-distributors in order to further his drug dealing.
On November 4, 2016, ATF and the Seaford Police Department executed a search warrant on Bennett’s home and car in Seaford. The search revealed a loaded, .40-caliber firearm in the same room as two safes, the contents of which included 3,250 individual bags of heroin stamped “Donald Trump.” Nearby, officers found an additional 109 bags of heroin, stamped “Donald Trump” or “Ferrari,” as well as a total of $2,418 in cash. Agents recovered a number of other items in the house.
“This plea reflects the outstanding, cooperative work of Seaford Police and the ATF,” Acting United States Attorney David C. Weiss said. “From Seaford to Wilmington, our state is not immune to the heroin epidemic afflicting the nation. This case shows we will use the tools at our disposal—federal, state, and local—to bring justice to those responsible.”
“Armed narcotics traffickers pose a significant risk to the citizens in Seaford and throughout Delaware,” said Daniel L. Board Jr., the Special Agent in Charge for the ATF Baltimore Field Division. “But the mission of the ATF is unwavering. We will continue to fight violent crime by targeting, investigating and partnering in the prosecution of those who seek to reduce the quality of life in our communities.”
A sentencing hearing has been scheduled by the District Court for September 14, 2017 at 2:00p.m. At sentencing, Bennett faces a mandatory minimum sentence of five years, to be served consecutively to any other sentence, for possessing and using a firearm in furtherance of a drug trafficking crime.
This case was investigated by the ATF and Seaford Police. Assistant United States Attorneys Alexander S. Mackler and Lesley F. Wolf prosecuted the case.
Schenectady Man Sentenced to 10 Years for Crack DistributionRead the Press Release
ALBANY, NEW YORK – Jayquan Tomer, age 25, of Schenectady, New York, was sentenced today to 10 years in prison for conspiring to distribute crack cocaine.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Lawrence E. Kahn also imposed an 8-year term of supervised release, to begin after Tomer’s release from prison, and ordered him to forfeit $3,000 in proceeds from his crimes.
As part of his plea, Tomer admitted that he conspired with others to distribute and did distribute a total of 43 grams of crack cocaine to another person in Schenectady on three occasions in August 2013.
This case was investigated by the FBI and its Capital District Safe Streets Task Force, and was prosecuted by Assistant U.S. Attorney Sean O’Dowd.
Rapid City Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Involuntary Manslaughter was sentenced on May 12, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Roger Janis, age 47, was sentenced to 60 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Janis was charged on June 14, 2016, and pleaded guilty on September 9, 2016. The conviction stems from Janis, while under the influence of alcohol, running over a five-year-old child with his pickup at Pine Ridge, causing the boy’s death.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Janis was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for EscapeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Escape from Custody was sentenced on May 12, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Martin Garreau, age 23, was sentenced to 4 months of imprisonment and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Garreau was charged on November 16, 2016, and pleaded guilty on February 3, 2017. The conviction stems from Garreau leaving Community Alternatives of the Black Hills, where he was serving part of his federal prison sentence, without permission and failing to return.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Garreau was immediately turned over to the custody of the U.S. Marshals Service.
Prison Inmate Pleads Guilty to Threatening to Kill President of the United StatesRead the Press Release
BOSTON – A former inmate at Old Colony Correctional Center in Bridgewater, Mass., pleaded guilty today in federal court in Boston to threatening to kill the President of the United States.
Alex Hernandez, 32, of Worcester, currently serving time on state charges at MCI-Shirley, pleaded guilty to one count of threatening to kill and inflict bodily harm upon the President of the United States. U.S. District Court Judge Indira Talwani scheduled sentencing for July 24, 2017.
In March 2015, federal agents learned that Hernandez, imprisoned at the time at Old Colony Correctional Center, told another inmate who was working as a cooperating witness in the investigation, that he was upset about the way his people were being treated and wanted to kill the President. Hernandez expressed an interest in obtaining false travel documents so he could flee the country after his attack.
Based on these statements, agents decided to introduce Hernandez to an undercover agent posing as an embassy contact who could assist Hernandez with obtaining false travel documents.
On Dec. 22 2015 and Feb. 12, 2016, the undercover agent met with Hernandez at Old Colony Correctional Center. During the first meeting, Hernandez stated that he wanted to attack, “the house with the big people there.” The agent inquired whether Hernandez meant the White House, and Hernandez said he did. When asked for additional details about his plan, Hernandez explained, “there is always a head. He’s the one who’s always in charge. So if you attack the head, everything will go down a little bit.” He also stated that he was studying how to make explosives that could be placed around government buildings to “create chaos.” During the second meeting with the undercover agent, Hernandez discussed the motivation for his planned attacks – telling the agent that his brothers are “fighting to uphold the laws and structure of the caliphate in the Middle East” and that “this government . . . is painting it like they are the bad guys[.]” Hernandez also explained that he wanted to target the President because “he’s the one that gives the orders[.]”
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service's Boston Field Office; and Thomas Turco, Commissioner of the Massachusetts Department of Correction, made the announcement today. Assistant U.S. Attorney Jordi de Llano of Weinreb’s Criminal Division is prosecuting the case.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gustavo Mulato, age 25, of Mexico, was indicted by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Mulato was previously deported from the United States to Mexico in April 2012, and twice in July 2012. He is alleged to have illegally re-entered the United States sometime after July 2012, and was found in the United States in Schuylkill County, Pennsylvania after eluding examination or inspection by immigration officers. In March 2012, he was convicted in the Luzerne County Court of Common Pleas of resisting arrest, an offense which subjects him to enhanced penalties in the current case.
The case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Because of Mulato’s previous conviction, under federal law he faces a maximum penalty for this offense of ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Postal Carrier Charged with Stealing Toys R Us Gift Card from MailRead the Press Release
PITTSBURGH, PA – A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of theft of mail by a postal employee, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Julie L. Bowser, 47, of Tarentum, Pennsylvania, as the sole defendant.
According to the indictment, Julie L. Bowser was an employee of the United States Postal Service at the time she stole a $75.00 Toys R Us gift card from an item that was to be conveyed by mail.
The law provides for a maximum total sentence of not more than five 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 Adam N. Hallowell is prosecuting this case on behalf of the government.
The United States Postal Service – 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.
Owner and Employee of Tax Preparation Business Charged with Filing Fraudulent Returns and Claiming over $3,000,000 in RefundsRead the Press Release
An owner of a tax preparation business and his employee are charged with filing hundreds of fraudulent returns and claiming over $3,000,000 in fraudulent refunds.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
In an indictment unsealed today, Corry E. Pearson, of Riviera Beach, and Stephane Cindy Anor, a/k/a “Stephanie Anor,” of West Palm Beach, are charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; wire fraud, in violation of Title 18, United States Code, Section 1343; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Pearson is also charged with money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i) and 1957.
According to allegations contained in the indictment, defendant Pearson owned Tax King, Inc., a tax preparation business, where defendant Anor was an employee. For tax years 2012 and 2013, Pearson and Anor electronically filed at least 862 fraudulent federal income tax returns. In some cases, the defendants stole other people’s identities and filed Federal income tax returns in the victims’ names, collecting the refunds for themselves. The defendants also filed returns that inflated the taxpayers’ refunds. In some cases, the filed returns falsely reported that money had been withheld from taxpayers’ wages and gambling winnings. In others, the defendants filed returns falsely claiming education credits to which the taxpayers were not entitled. In total, the returns filed by the defendants claimed at least $3,747,125 in fraudulent refunds. Pearson also engaged in financial transactions with the proceeds of the fraud, some of which were designed to disguise his control over the illicit refunds.
If convicted, the defendants face maximum possible statutory sentences of 20 years' incarceration for the conspiracy to commit wire fraud, 20 years' incarceration on each count of wire fraud, and a mandatory sentence of 2 years' incarceration on each count of aggravated identity theft. In addition, Pearson faces maximum possible statutory sentences of 20 years’ incarceration on each count of money laundering in violation of Section 1956 and 10 years’ incarceration on each count of Section 1957.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at http://www.usdoj.gov/usao/fls
Owner Sentenced to More than 27 Years in Prison for Multi-Million Dollar Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Two owners of sober homes and alcohol and drug addiction treatment centers were sentenced to 27 and 3 years in prison, respectively, for their participation in a multi-million dollar health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Jeff Atwater, Florida Chief Financial Officer, William D. Snyder, Sheriff Martin County Sheriff's Office, George L. Dorsett, Assistant Inspector General for Investigations, Amtrak Office of Inspector General, Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
After hearing victim impact statements from a number of parents whose children suffered fatal and non-fatal overdoses, U.S. District Judge Donald M. Middlebrooks sentenced Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, to 330 months in prison, to be followed by 5 years of supervised release. Chatman was also ordered to register as a sex offender. He had previously pled guilty to conspiracy to commit health care fraud in violation of Title 18, United States Code, Section 1349; conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956(h); and conspiracy to commit sex trafficking, in violation of Title 18, United States Code, Section 1594(c). His wife, Laura Chatman, 44, of Boynton Beach, was sentenced by Judge Middlebrooks to 36 months in prison, to be followed by 3 years of supervised release, after having pled guilty to two counts of making a false statement related to a health care matter, in violation of Title18, United States Code, Section 1035(a)(1).
“Kenneth Chatman will spend the next 27 years in prison for orchestrating an egregious fraud scheme that denied addicts and their families the legitimate treatment and supportive services they desperately needed,” stated Acting U.S. Attorney Benjamin G. Greenberg. “Instead of helping his patients to achieve sobriety, Chatman exploited the vulnerable victims to satisfy his personal greed. He provided drugs to addicts, solicited and accepted kickbacks and bribes, and used his position of power to sexually exploit his patients. The U.S. Attorney’s Office and our law enforcement partners will continue to shut down and hold accountable the unscrupulous sober home owners, treatment facility providers and medical labs that carry out fraudulent and abusive treatment practices.”
“Kenneth Chatman took advantage of persons with serious addiction problems to satisfy his greed. He exploited people who were vulnerable and weak,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “Instead of providing a safe and sober living environment, Chatman gave his patients illegal drugs, fraudulent insurance bills and demanded they engage in illegal prostitution under duress. The FBI and our partners are serving notice to sober home operators, treatment facility owners and medical professionals who choose to engage in these types of fraud schemes, you will be investigated and criminally prosecuted to the fullest extent of the law.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “This is an appalling case of pure greed where these defendants tore families apart and put patients’ health and safety at risk. As the Chatmans were living a lavish lifestyle funded by their fraud scheme, patients suffering from addiction were utilized as mere pawns in a master plan to defraud insurance companies. IRS-CI will continue to provide our expertise in conducting financial analysis in money laundering cases to combat the huge healthcare fraud compliance issue facing South Florida.”
“Sober homes are meant to be a place of refuge for those recovering from addiction, but some of these facilities are anything but a sanctuary,” said Chief Financial Officer Jeff Atwater. “Many do nothing more than siphon residents’ insurance benefits until there’s nothing left to be paid, only to return the newly-recovering back to the streets. I am proud of the collaborative state, local, and federal efforts to hold the line on this crime, and I hope this sentencing sends a shockwave to others who may be engaging in similar behavior.”
"It's shameful and disgusting that a treatment home, which should be a place of healing and recovery, could be so badly corrupted as a vehicle for fraud.” said Regional Director for the Department of Labor’s Employee Benefits Security Administration Isabel Colon. “We are gratified to be part of the effort of so many state and federal agencies to put a stop to this sort of criminal activity.”
"Our office, in partnership with our fellow investigative agencies, will continue to uncompromisingly investigate and bring to justice the people who perpetrate these criminal acts," said Amtrak Inspector General Tom Howard. "Their actions take advantage of a vulnerable population that is seeking treatment. Our office will remain vigilant in protecting Amtrak employees, retirees, and their dependents, and ensuring that our health care dollars are not wasted on these fraudulent providers."
According to court documents, defendant Kenneth Chatman established a series of sober homes, including Stay’n Alive, Inc., Total Recovery Sober Living LLC, and several other multi-bed residences operating as sober homes in Palm Beach and Broward Counties. These sober home facilities were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. Kenneth Chatman conspired with others to obtain patients who would receive ineffective and medically unnecessary substance abuse treatment and testing that could be billed to the patients’ insurance in order to enrich Chatman and the members of the conspiracy.
To achieve this goal, defendant Kenneth Chatman paid kickbacks and bribes to other sober home owners for referring their residents to Reflections Treatment Center LLC in Margate, Florida and Journey to Recovery LLC in Lake Worth, Florida for treatment, and disguised these kickbacks and bribes as “case management fees,” “consulting fees,” “marketing fees,” and “commissions.” The co-defendants met with Kenneth Chatman on a weekly basis to collect their kickbacks and bribes, which were based on the number of insured patients that received treatment each week.
To obtain residents for the sober homes, defendant Kenneth Chatman and others involved in the conspiracy provided kickbacks and bribes, including free or reduced rent, gift cards, and controlled substances to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing, and Kenneth Chatman marketed his treatment facilities as places where patients could continue to use controlled substances while receiving “treatment.”
Defendants Kenneth and Laura Chatman submitted to the Florida Department of Children and Families fraudulent applications for licensure for Journey to Recovery and Reflections Treatment Center, stating that Laura Chatman was the sole owner of those entities, thereby hiding the fact that Kenneth Chatman, a convicted felon who was prohibited from owning and operating treatment centers, managed all aspects of these facilities including the hiring and firing of personnel; admitting and discharging patients and making financial decisions.
Defendant Laura Chatman appeared at Reflections and Journey for audits and inspections by DCF and other accrediting agencies to make it seem that she was the sole owner and officer of the companies. Defendant Laura Chatman also filed corporate documents and opened bank accounts in the name of Reflections and Journey to allow co-defendant Kenneth Chatman access to deposit proceeds from the health care fraud scheme and to conduct transactions meant to promote the scheme. .
Defendant Kenneth Chatman dictated which patients were admitted and discharged and the type and frequency of different types of lab testing that would be performed based on the kickbacks and bribes that he was receiving from different clinical laboratories rather than based upon the individual patients’ needs. Kenneth Chatman dictated that confirmatory urine drug testing; duplicative saliva drug testing, DNA and allergy testing occur regardless of whether patients complained of allergies. These tests were medically unnecessary and not used to direct the treatment of patients. Many of the test results were never reviewed and new samples were submitted before older tests were received and reviewed. In some instances when a patient’s insurance benefits were about to run out, Kenneth Chatman would provide controlled substances to the patient so that the patient would have a positive drug test. Kenneth Chatman would then inform the patient’s insurance provider that the patient had “relapsed” so that additional treatment benefits would be approved and Chatman could continue billing services.
Defendant Kenneth Chatman also recruited and coerced female patients and residents into prostitution, telling them that they would not have to pay rent or participate in treatment or testing so long as they would allow him to continue to bill their insurance companies for substance abuse treatment and testing that the patients did not receive.
Defendants Kenneth Chatman and other co-conspirators recruited, enticed, harbored, transported, provided, obtained, and maintained some female patients into performing commercial sex acts. The defendant provided housing for the female patients, who would be made to perform sex acts in exchange for money that would then have to be paid to defendant Kenneth Chatman as “rent.” The commercial sex activity occurred at some of the sober homes controlled by the defendant or at hotels and motels. Kenneth Chatman provided condoms and advertised and caused the advertisement of the commercial sexual activity. Kenneth Chatman and other co-conspirators provided controlled substances to these addicted patients to induce them to perform sexual acts.
Kenneth Chatman also used intimidation tactics and threats of legal process, including evicting the patients from his sober homes to maintain their compliance. These patients were not required to attend treatment at Reflections or provide bodily fluid samples for testing but he submitted and caused the submission of claims to the patients’ Insurance Plans for substance abuse treatment and testing that they did not receive.
Kenneth Chatman further maintained control over patients who attended Reflections and Journey by threats and confiscating their belongings, car keys, telephones, medications, and food stamps, in order to maintain the ability to continue billing their Insurance Plans.
The proceeds of the health care fraud scheme were deposited into bank accounts that Kenneth Chatman and co-defendant Laura Chatman opened at Wells Fargo Bank in the name of Reflections and Journey. Kenneth Chatman and the co-conspirators agreed to use the proceeds to promote the ongoing fraud scheme including the making of kickback and bribe payments in the form of checks to sober home owners. These checks were for the referral of insured clients to Reflections for treatment and often noted that they were for “case management.” Kenneth Chatman, Laura Chatman and their co-conspirators also made payments to the medical directors, clinical directors, employees and others to continue their involvement with the fraud. Monies from these accounts were also used to pay kickbacks and bribes to patients, including providing prescription and illicit drugs to patients and potential patients.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-Office of Inspector General, DOL-EBSA, NICB, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and Office of Personnel Management, Office of Inspector General. This case was prosecuted by Assistant United States Attorney A. Marie Villafaña.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at http://www.usdoj.gov/usao/fls
Overdose of Shelton Resident Leads to Heroin Distribution Charges against New Haven ManRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that COREY SENIOR, 26, of New Haven, was arrested yesterday on a federal criminal complaint charging him with heroin distribution offenses. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
SENIOR appeared yesterday before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was ordered detained pending a detention hearing currently scheduled for May 19 at 9:30 a.m.
As alleged in court documents, on April 27, 2017, the Shelton Police Department and emergency medical services responded to a Shelton residence after a report of a suspected drug overdose of a 34-year-old female. The victim was pronounced deceased. At the scene, officers seized drug and non-drug evidence, including bags that appeared to have contained heroin and a hypodermic needle. Investigators also seized the victim’s cellphone.
It is further alleged that on April 28, 2017, the victim’s cellphone received a text from SENIOR and an officer posing as the victim arranged to purchase heroin from SENIOR. SENIOR was arrested by the Shelton Police later that day after he arrived at the victim’s residence in possession of suspected heroin. The investigation revealed that SENIOR had provided heroin to the victim shortly before the victim’s death.
The federal complaint charges SENIOR with possession with intent to distribute, and distribution of heroin, and conspiracy to distribute narcotics. Both offenses carry a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Shelton Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Norris Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Norris, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on May 15, 2017, by U.S. District Judge Roberto A. Lange.
Arnold Eagle Bear, Jr., age 34, was sentenced to 15 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Eagle Bear was indicted by a federal grand jury on August 16, 2016. He pled guilty on March 13, 2017.
Eagle Bear was convicted of Sexual Abuse of a Minor in September 2014. As a result of this conviction, he is required to register as a sex offender. Eagle Bear was released from custody on June 10, 2016, and began supervised release. He initially registered as a sex offender, but then absconded from supervision and did not update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Eagle Bear was immediately turned over to the custody of the U.S. Marshals Service.
Ninth Ward Heroin Dealer Sentenced to 10 Years for Heroin ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that COREY CELESTINE, age 33, was sentenced today after previously pleading guilty to participating in a heroin distribution conspiracy in the lower Ninth Ward of New Orleans. CELESTINE pled guilty to conspiracy to distribute one kilogram or more of heroin.
U.S. District Judge Martin L.C. Feldman sentenced CELESTINE to 120 months imprisonment, to be followed by 5 years of supervised release and a $100 special assessment.
According to court documents, CELESTINE conspired with ULYESSE SANTIAGO, CLARENCE PETER SANTIAGO, DWAYNE SMOTHERS, and others to sell heroin near Bonart Park in New Orleans’ lower Ninth Ward. During the course of this investigation, agents performed several controlled purchases of heroin from CELESTINE, and he was subsequently arrested with $13,000 in cash. The investigation, led by the U.S. Drug Enforcement Administration, began in 2013 and resulted in the arrest of ten individuals in New Orleans, Terrebonne Parish, Jefferson Parish, and Texas.
ULYESSE SANTIAGO and CLARENCE PETER SANTIAGO each pled guilty to conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and were sentenced to 78 months and 51 months imprisonment, respectively. DWAYNE SMOTHERS pled guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and was sentenced to 54 months incarceration.
Acting U.S. Attorney Evans praised the work of the DEA New Orleans Division Office, along with the assistance from the FBI New Orleans Field Office, the New Orleans Police Department, the Terrebonne Parish Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorney Matthew Payne was in charge of the prosecution.
New Hampshire Man Sentenced to over 10 Years for Home Invasion RobberyRead the Press Release
Contact: Benjamin M. Block
May 17, 2017 Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Xavier Watson, 24, of Brentwood, New Hampshire, was sentenced today in U.S. District Court by Judge Jon D. Levy to 121 months in prison and three years of supervised release following convictions for robbery and brandishing a firearm in furtherance of a crime of violence. Watson pleaded guilty to the charges on October 5, 2016.
According to court records, early on January 15, 2016, Watson and four other men drove from New Hampshire to Lyman, Maine, for the purpose of committing a home invasion robbery of a licensed medical marijuana caregiver. Watson and three of the men broke into the home, brandishing two firearms – a pistol and a shotgun. Watson possessed the pistol and co-defendant Vincent Casazza possessed the shotgun. Five victims were present in the residence. Watson physically assaulted a male victim. Records introduced by the government at sentencing indicate that Watson also sexually assaulted a 17-year-old female victim during the robbery. Watson and his co-conspirators stole three firearms from the residence, as well as U.S. currency, marijuana, various electronics, and other items of value.
Watson's co-defendants, Vincent Casazza, Reynan Mora, and Andre Thomas, have pleaded guilty in federal court to their involvement in the robbery but have not yet been sentenced.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine State Police, with assistance from the Office of the Maine Attorney General and the York County District Attorney’s Office.
New Bethlehem Man Indicted on Charges Relating to Social Security FraudRead the Press Release
PITTSBURGH - A resident of New Bethlehem, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges relating to Social Security fraud, Acting United States Attorney Soo C. Song announced today.
The three-count indictment named David Lee Claypool, 48, of New Bethlehem, Pennsylvania, as the sole defendant.
According to the indictment, between January 2012 and January 2015, Claypool, having filed an application for Social Security disability insurance benefits on behalf of a minor child, received and converted $16,474.00 in benefits to his own use. Additionally, on March 11, 2013, and again on March 15, 2014, Claypool falsely represented on Social Security Administration Representative Payee Reports that the benefits he received on behalf of the minor child were spent on behalf of the minor child, when in fact the benefits were converted to Claypool’s own use.
The law provides for a maximum total sentence of 15 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Social Security Administration – 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.
Murdo Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Murdo, South Dakota, man convicted of Possession of Child Pornography was sentenced on May 8, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Tyree Yellow Elk, age 22, was sentenced to 7 years of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Yellow Elk was charged on July 26, 2016, and pleaded guilty on January 13, 2017. The conviction stems from Yellow Elk knowingly distributing and receiving multiple images of child pornography between March 2014 and July 2016.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Yellow Elk was immediately turned over to the custody of the U.S. Marshals Service.
Mullins SC Man Sentenced on Drug and Weapons ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake announced today that Peter Allen Murphy, age 33, from Mullins, South Carolina, was sentenced in federal court in Florence, South Carolina, for Possession With Intent to Distribute and Distribution of Heroin, in violation of 21 U.S.C. § 841(a)(1), and Possession of a Firearm by a Prohibited Person, in violation of 18 U.S.C. § 922(g). United States District Judge R. Bryan Harwell, of Florence, sentenced Murphy to 60 months imprisonment followed by three years of supervised released.
Evidence presented at the change of plea on January 9, 2017, and at the sentencing hearing established that, beginning in 2015, the Marion County Drug Unit (MCDU) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were investigating illegal drug activity complaints concerning Murphy. As a result, agents made several controlled purchases of illegal drugs from Murphy. In March 2016, agents made a controlled purchase of heroin and as well as a firearm from Murphy at an apartment complex in Marion, South Carolina. Murphy was previously convicted of a felony offense and prohibited from possessing the firearm that he sold.
The case was investigated by agents from the Marion County Drug Unit (MCDU) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Morgan Hill Entrepreneur Sentenced to 56 Months in Prison for Bankruptcy FraudRead the Press Release
SAN FRANCISCO- Steve McVay was sentenced today to 56 months in prison for concealing assets in a bankruptcy proceeding, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge, following a guilty plea entered by McVay on January 25, 2017.
According to papers filed in connection with the case, McVay, 68, of Morgan Hill, Calif., bought and sold real estate and did “hard-money” lending, whereby he regularly acquired real estate in foreclosure actions. Between 2004 to 2009, McVay became involved in several business ventures that ultimately failed. McVay filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the Northern District of California on February 24, 2010. Through the petition, McVay sought relief for approximately $1.5 million in debts. McVay admitted that he signed documents knowingly and fraudulently concealing two bank accounts. One of the accounts McVay opened in his wife’s name and he used the account to receive and transmit funds under his exclusive control. The two bank accounts contained a total of more than $45,000. McVay acknowledged he signed the bankruptcy documents with the intent to hide assets from his creditors, the United States Trustee, the court, and other persons charged with control or custody of the bankruptcy estate.
A federal grand jury indicted McVay on April 28, 2016, charging him with two counts of concealing assets in bankruptcy, in violation of 18 U.S.C. § 152(1), and one count of presenting false testimony in bankruptcy proceedings, in violation of 18 U.S.C. § 152(2). Pursuant to the plea agreement, McMay pleaded guilty to the first count of concealment; the remaining charges were dismissed at sentencing.
In addition to the prison sentence, Judge Koh sentenced McVay to three years of supervised release and scheduled a hearing for June 14, 2017, to determine the amount of restitution McVay must pay his victims. McVay will begin serving his prison sentence on June 28, 2017.
Assistant U.S. Attorney Timothy Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Monmouth County, New Jersey, Woman Admits Role in Fraud SchemeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, woman today admitted her role in a scheme to defraud a bank and bank regulators, Acting U.S. Attorney William E. Fitzpatrick announced.
Donna Conroy, 57, of Middletown, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with one count of conspiring to make false entries to deceive a bank and bank regulators, and to influence those regulators, and one count of making false entries.
According to documents filed in this case and statements made in court:
The three-phase scheme took place from 2009 to 2010. The first phase was to fraudulently infuse $7 million of capital into FSB. In the second phase of the scheme, various conspirators caused FSB to make millions of dollars in loans based on material misrepresentations in order to cover up the fraudulent nature of the capital infusion and end inquiries from FSB’s auditors. The final phase involved lying to the FDIC and FSB, among others, about the fraudulent capital infusion and loans.
The conspiracy count to which Conroy pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross loss sustained by any victim. The count of making false entries carries a maximum potential penalty of 30 years in prison and a fine of $1 million or twice the gross pecuniary gain derived from the offense or twice the gross loss sustained by any victim. Sentencing is scheduled for Aug. 24, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FDIC, Office of Inspector General, under the direction of Special Agent in Charge Patti Tarasca, New York Region; the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark; and the Office of the Special Inspector General for Trouble Asset Relief Program, under the direction of Special Inspector General Christy Goldsmith Romero, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney=s Office Economic Crimes Unit in Newark.
Mitchell Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mitchell, South Dakota, man convicted of two separate counts of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on May 15, 2017, by U.S. District Judge Roberto A. Lange.
Corey Johnson, age 31, was sentenced to 33 months in custody on a 2015 case, and 96 months in custody on a separate 2016 case, to be served concurrently, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Johnson was indicted by a federal grand jury on October 14, 2015, on his 2015 case, and on December 14, 2016, on his 2016 case. He pled guilty in both cases on February 21, 2017.
The conviction for his 2015 case stems from an incident on September 13, 2015, when Johnson’s mother called the Lower Brule dispatch because Johnson was talking about taking his own life. An officer with the Bureau of Indian Affairs was given the information, and was also advised that Johnson had an active state warrant.
The officer went to Johnson’s girlfriend home in Lower Brule. After confirming Johnson’s identity, the officer told Johnson to turn around and put his hands behind his back as he was going to be detained for state authorities. Johnson did not comply and took off running. The officer gave chase and was able to get ahold of Johnson. The two fell to the ground and wrestled around with Johnson continuing to resist arrest. Johnson was able to get to his feet first and while attempting to flee dragged the officer, causing scrapes to the officer’s arms. Johnson then took off running again, and the officer gave chase but was unable to locate Johnson. An Indictment was obtained and a warrant for his arrest issued.
The conviction from his 2016 case stems from an incident when Johnson was located on November 2, 2016, by two deputies with the U.S. Marshals Service in Lower Brule. The deputies arrived at the home and saw Johnson’s girlfriend in the driver seat of a vehicle and Johnson outside at the back of the vehicle. The deputies exited their vehicle and announced “United States Marshal” and “Federal Warrant”. One of the deputies ordered Johnson to show his hands. Johnson turned, looked at the deputies, and then dove into the middle seat of a Jeep and locked the doors. Johnson was ordered to get out of the vehicle, that they had a warrant and that he was under arrest. Johnson did not comply.
Johnson’s girlfriend was in the driver’s seat and they could see an infant child in a car seat near Johnson. The deputies then saw Johnson clench his fists and hold a weapon to his girlfriend’s neck. Johnson was yelling that he had a knife, that he would harm or kill his girlfriend and for the officers to leave. His girlfriend was seen to be visibly upset, crying and holding her hands up. She was not allowed to leave the vehicle. Johnson was between the small child in the car seat and the driver’s seat.
The deputies continued to order Johnson to get out of the car, but he continued to ignore commands and say he had a knife and would harm his girlfriend. One of the deputies broke out two of the windows of the Jeep. Johnson finally dropped his hands and then opened the door and was taken into custody. A knife was recovered from inside the vehicle.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency, and the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Johnson was immediately turned over to the custody of the U.S. Marshals Service.
Mexican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Mexican national was charged in federal court in Worcester yesterday with illegally re-entering the United States after having been previously deported.
Oscar Conrado Ureiro Romero, 23, a Mexican national residing in Worcester, was charged in a criminal complaint with illegal re-entry. At his initial appearance today, Ureiro Romero was ordered detained pending indictment.
According to court documents, on March 27, 2017, Ureiro Romero was arrested by the Massachusetts State Police in Holden and charged with operating under the influence. Upon his arrest, it was revealed that he had been previously deported.
The charging statute provides for a sentence of no greater than two years in prison, one year of supervised release and a fine of $250,000. Ureiro Romero will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb, Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts Man Sentenced to 66 Months in Prison for Selling Heroin and Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on May 16, 2017, Childlove Gelin, 25, was sentenced to 66 months in federal prison after his guilty plea to charges that he distributed heroin and cocaine base, and that he conspired to distribute heroin and 28 grams or more of cocaine base. Chief U.S. District Court Judge Christina Reiss also ordered that Gelin serve four years of supervised release after his prison term.
According to court records, between July of 2015 and April of 2016, Gelin and his associates sold heroin and cocaine to an informant on 10 separate occasions. When Gelin was arrested on April 18, 2016, 44.7 grams of cocaine base and $2,871 were located in his Brattleboro apartment. During the course of the offense, Gelin also possessed a handgun. Gelin has been in federal custody since the time of his arrest.
For his crimes, Gelin faced a 5-year mandatory minimum sentence and a statutory maximum term of 40 years in prison. The government and the defense agreed that a 66-month prison sentence was appropriate. In imposing that sentence, Judge Reiss considered the severity of the offense, the harm heroin has caused the Vermont community, and Gelin’s criminal record, among other factors.
Acting United States Attorney Eugenia Cowles commended the efforts of the Vermont State Police Drug Task Force and the Brattleboro Police Department for their work in this investigation. Acting United States Attorney Cowles noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
The prosecution was handled by Assistant U.S. Attorneys Christina Nolan and Nate Burris. Gelin is represented by Brooks G. McArthur of the Burlington law firm Jarvis & McArthur.
Man Pleads Guilty to Coin and Jewelry Store Armed RobberyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to robbing a coin and jewelry store while pointing a gun at the elderly store owner and a customer, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Noah Patrick Fields, 22, pleaded guilty to one count each of interference with commerce by robbery and use of a firearm during and in relation to a crime of violence. United States District Judge James C. Mahan accepted the guilty plea and scheduled sentencing for Aug. 24, 2017.
According to admissions made in connection with his plea agreement, on Oct. 14, 2016, Fields and a co-conspirator robbed a coin and jewelry store at gunpoint. Fields admitted that he held a customer and the 90-year-old store owner at gunpoint while his co-conspirator stole $3,500 in cash and approximately $42,424 worth of valuable coins and silver and gold bullion from the front display case.
At the time of sentencing, Fields faces a maximum penalty of 20 years in prison and a $250,000 fine for interference with commerce by robbery and a mandatory minimum penalty of seven years in prison up to life in prison and a $250,000 fine for use of a firearm during and in relation to a crime of violence.
The case is being investigated by the FBI and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Kilby Macfadden.
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Major Illegal Narcotics Ring Dismantled in Elmira, Four Defendants ArrestedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that four defendants were arrested and charged by criminal complaint with operating an illegal narcotics trafficking ring in the Elmira, NY area. Robert Ian Thatcher, 29, Maximillian Sams, 30, Dwayne Banks, 29, all of Elmira, NY, and Carlito Rios, Jr., 30, of Beaver Dams, NY, are each charged with conspiracy to possess with intent to distribute, and to distribute, quantities of furanyl fentanyl and U-47700, Schedule I controlled substances. The charges carry a maximum penalty of 20 years in prison and $1,000,000 fine. In addition to the conspiracy charge, defendants Thatcher and Sams are also charged with possession of firearms in furtherance of a drug trafficking crime, which carries a mandatory minimum consecutive term of five years in prison up to life. Further, defendant Banks is charged with possessing with intent to distribute, and distributing, furanyl fentanyl and U-47700, which also carries a maximum term of 20 years in prison.
Acting U.S. Attorney James P. Kennedy, Jr. stated, “Overdose deaths in the Western District of New York are soaring, and in many instances, toxicology reports are indicating that the killer is fentanyl. Under federal law, if it can be proven that the drugs someone distributed resulted in the death of another, then the distributor can be held criminally liable for the death of the user. Using all of the federal, state, and local resources available to us, we intend thoroughly to examine the evidence in this case to see whether we can establish such a link between the drugs these individuals distributed and any overdose deaths in the region.”
DEA Special Agent-in-Charge James Hunt stated, “The most dangerous drug facing the nation today is fentanyl. Its unregulated potency can kill, especially when it is clandestinely pressed into pill form and sold on the street for profit. This investigation successfully dismantled the largest fentanyl pill mill in New York which was responsible for supplying counties in Pennsylvania, New York and as far south as North Carolina with what they called ‘super pills’ leaving overdose victims in its wake.”
“These synthetic opioids have potentially deadly consequences for both users as well as law enforcement officials who come in to contact with them,” said ICE-HSI Special Agent-in-Charge James C. Spero. “Given the highly-toxic nature of these synthetic opioids, even a small seizure could potentially save a life. As today’s arrests clearly demonstrate, HSI and our partners are committed to protecting public safety, using our unique customs authorities to keep this dangerous substance out of our communities.”
ATF Special Agent-in-Charge Ashan Benedict stated, “This investigation illustrates the dangerous intersection between narcotics and illegal firearms, and demonstrates the importance of law enforcement partnerships in addressing the trafficking of opioids and other dangerous drugs into our communities. I'd like to extend my gratitude to the men and women of ATF, DEA, HSI, NYSP, Elmira PD, and the U.S. Attorney's Office for their outstanding work in ensuring the arrests of these individuals who will now face justice for their actions.”
New York State Police Superintendent George P. Beach II said, “We are proud to work with our federal and local law enforcement partners to take down an operation that threatens our community. Fentanyl is dangerous and deadly. This arrest not only puts an operation out of business also seized dangerous weapons, taking them off our streets. I applaud the good police work that brought this case to a close and helped to make a community safer.”
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that according to the complaint, between November 29, 2016, and May 16, 2017, the defendants manufactured and distributed tens of thousands of tablets containing furanyl fentanyl to street-level customers in the greater Elmira, New York area. The drugs were stored at a residence in Sayre, PA. Five search warrants were executed on May 16, 2017, in connection with the operation at:
• 23 Somerset Drive, Elmira, NY;
• 457 Livingston Street, Elmira, NY;
• 2063 Chambers Road, Beaver Dams, NY;
• 327 West Clinton Street, Elmira, NY; and
• 604 South Lehigh Avenue, Sayre, PA.During the search warrants, officers seized over 200 blue pills suspected to contain the substances described above; seven firearms and ammunition; a bulletproof vest; blue food coloring; and blue powder. In addition, officers seized multiple containers with false bottoms, which are used to conceal drugs.
The complaint is the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office and Scranton PA Resident Office, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police, under the direction of Major Richard Allen; the Elmira Police Department, under the direction of Chief Joseph Kane; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Pennsylvania State Police, under the direction of Commissioner Colonel Tyree C. Blocker; the Chemung County Sheriff’s Office, under the direction of Christopher J. Moss; the Iredell, NC County Sheriff’s Office, under the direction of Darren E. Campbell, and Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher. Additional assistance was provided by the Northeast Regional Laboratory.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Louisville Felon Charged with Possession of Two Pipe Bombs and Five Firearms Including A Sawed Off Shotgun and A Homemade 12 Gauge Pipe GunRead the Press Release
State charges dropped for federal case to proceed
LOUISVILLE, Ky. – Charges against Louisville felon Michael C. Beck, in Jefferson Circuit Court have been dropped so that the federal charges may proceed. Beck, 28,was charged by grand jury indictment on February 22, 2017, with illegal possession of explosive bombs and firearms including a sawed off shotgun and a homemade 12-gauge pipe gun, announced United States Attorney John E. Kuhn, Jr.
Beck, was charged by criminal complaint on January 19, 2017, and remains in federal custody with a June 12, 2017, trial scheduled in Louisville before Senior Judge Charles R. Simpson III.
According to the indictment and an affidavit attached to the criminal complaint, on January 13, Louisville Metro Department of Corrections Home Incarceration Program (HIP) received information that firearms and possible bombs were present at Beck’s residence on Homewood Drive. A resident living at the address was on HIP and Beck had been served that day by the Jefferson County Sheriff’s Department with an Emergency Protection Order (EPO).
Special Agents with ATF and Louisville Metro Police assisted the HIP officers with a home inspection. During that inspection, Beck allegedly gave permission for officers to retrieve a weapon known to be in his bedroom and to search the room.
Subsequently, Beck was charged with possession of an explosive bomb, consisting of galvanized steel pipe, approximately eight inches long by two inches in diameter, threaded on both ends to accept galvanized steel endcaps, containing suspected explosive powder with a wooden plug and a fuse.
Further, Beck was charged with possession of a second explosive bomb consisting of a copper pipe, approximately six inches in length and one and a half inches in diameter, crimped on one end containing suspected explosive powder and a wooden plug and fuse.
Also, Beck was charged with possession of a homemade 12-gauge pipe gun and four firearms including a Harrington and Richardson, Model Topper 88, 12-gauge shotgun, with a barrel length of less than 18 inches; a Mossberg Model 500, 12-gauge shotgun; a Ruger, Model P95DC, 9 mm semi-automatic pistol; and a Heritage Model Rough Rider, .22 caliber revolver. Beck was previously convicted of a 2nd degree felony, on August 20, 2007, in Bastrop County, Texas.
If convicted at trial, Beck could be sentenced to no more than 50 years in prison, fined $1,250,000 and serve a three-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Erin McKenzie and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from Louisville Metro Police.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
beck_michael_indictment.pdfLeader of Mid-State Heroin and Meth Distribution Conspiracy Pleads Guilty to Federal ChargesRead the Press Release
Jorge Andres Lopez Montiel, aka “Jimmy,” 26, of Tepic Nayarit, Mexico, pleaded guilty yesterday in U.S. District Court, to possession with intent to distribute heroin and conspiracy to possess with intent to distribute heroin and methamphetamine, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
According to the plea agreement, Montiel has agreed to a sentence of 210 months in prison. He will be sentenced on September 25, 2017.
Montiel was indicted by a federal grand jury in October 2009 after being identified as the person in charge of heroin sales for the Nashville area for a major heroin supplier in Mexico. Before he was taken into federal custody, Montiel was deported to Mexico, where he continued to distribute heroin and later methamphetamine, through a network of distributors acting at his direction, who transferred the proceeds of the drug sales to Mexico, often through wire transfers.
Montiel was taken into federal custody when he illegally re-entered the United States in late 2016.
During one phase of this investigation, between July 2013-April 2015, the Metropolitan Nashville Police Special Investigation Division arrested 22 persons, seized 14 pounds of heroin and 1 ½ pounds of Methamphetamine. Of those persons arrested, in addition to Montiel, four others were charged with federal offenses; Matthew McKervey, 28; Brian Goforth, 44; Daniel Alcala, 29; and David Becerra-Ruiz, 42, all of Nashville.
On April 1, 2015, Metro Nashville officers executed a search warrant at the home of Matthew McKervey. As officers entered the home, McKervey fired three shots at the officers, who returned fire and wounded McKervey. He was subsequently charged with federal firearms and drug offenses and is currently awaiting trial. Brian Goforth has pleaded guilty and is awaiting sentencing. The three remaining defendants are still pending before the Court. They are presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the Metropolitan Nashville Police Department and the DEA. Asst. U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
Laplace Woman Charged with Embezzling over $940,000 from EmployerRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ANGIE CAMBRE, age 43, of Laplace, was charged today in a one-count Bill of Information with wire fraud.
According to the Bill of Information, CAMBRE was hired in August 2011 to be the accountant and bookkeeper for a New Orleans commercial printing company (“Company A”) that specializes in printing materials, such as flyers and manuals, geared toward the automotive industry. Between November 2011 and June 2016, CAMBRE embezzled approximately $940,336.24 from Company A in a series of approximately 3,300 individual transactions, without Company A’s knowledge or authorization. CAMBRE did so by causing payments to be sent from one of Company A’s bank accounts to accounts under her control and to repay debts due and owing related to her personal use.
If convicted, CAMBRE faces a maximum term of imprisonment of twenty years in prison, three years of supervised release after any term of imprisonment, and a $250,000 fine.
Acting United States Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant U.S. Attorney Jordan Ginsberg is in charge of the prosecution.
Justice Department Settles Immigration-Related Discrimination Lawsuit Against Pasco, Washington Fruit and Vegetable ProcessorRead the Press Release
The Justice Department announced today that it reached a settlement agreement with Washington Potato Company and Pasco Processing, LLC, which operate a fruit and vegetable processing facility located in Pasco, Washington. The agreement resolves a discrimination lawsuit the Justice Department filed against the companies on Nov. 14, 2016.
The department’s lawsuit alleged that from at least Nov. 1, 2013, until at least Oct. 16, 2016, the companies routinely requested that lawful permanent residents hired at Pasco Processing produce a specific document – a Permanent Resident Card – to prove their work authorization, while not requesting a specific document from U.S. citizens. The department’s complaint alleged that Washington Potato directed and controlled Pasco Processing’s hiring practices, including the discriminatory documentary practices at issue. The antidiscrimination provision of the Immigration and Nationality Act (INA) prohibits such unfair documentary requests when based on citizenship status or national origin.
Under the agreement, Washington Potato Company and Pasco Processing are required to pay civil penalties of $225,750, post notices informing workers about their rights under the INA’s antidiscrimination provision, train their human resources personnel on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.
“The Justice Department is committed to removing illegal barriers to employment based on citizenship, immigration status, or national origin,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We look forward to working with Pasco Processing and Washington Potato Company to fulfill the terms of this agreement.”
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.