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23 June 2017
Corbin Man Charged in Murder-For-Hire SchemeRead the Press Release
LONDON, Ky. – William Timothy Sutton, 55, of Corbin, Ky., has been indicted on several charges relating to a murder-for-hire scheme.
On Thursday, a federal Grand Jury sitting in London returned the indictment charging Sutton with four counts of using the mail or a facility of interstate commerce, with the intent that four individuals be murdered in exchange for a promise and agreement to pay another to commit the murders.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Stuart L. Lowrey, Special Agent in Charge, ATF; and Richard W. Sanders, Commissioner of the Kentucky State Police, jointly announce the indictment.
The investigation preceding the indictment was conducted by the ATF and the Kentucky State Police. The case is being prosecuted by Assistant United States Attorney Sam Dotson.
Sutton’s appearance before the United States District Court has not yet been set.
An indictment is an allegation only. All defendants are presumed innocent and are entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
Colorado Podiatrist Sentenced to Prison for Health Care FraudRead the Press Release
A Fort Collins podiatrist was sentenced to serve six (6) months in prison and pay a $20,000 fine for fraudulently billing Medicare for routine foot care services, announced Acting United States Attorney John Green.
According to court filings, Dr. Michael Thomas, age 55, pleaded guilty to eight counts of health care fraud arising from a scheme to bill Medicare for toenail trimming, which is not covered by Medicare, as if it were nail debridement, which is a more serious procedure that may be covered if certain clinical criteria are met. As part of the scheme, Thomas created medical records that falsely reported clinical evidence which would justify Medicare coverage for nail debridement even though Thomas did not properly examine the beneficiary and did not find the reported clinical evidence. Thomas also fraudulently submitted nail debridement claims to Medicare when he only trimmed the beneficiary’s toenails, and when he did not provide any service at all to the beneficiary. Thomas employed this scheme to defraud Medicare for at least five years from December 2011 through November 2016.
In addition to the prison sentence and fine, Thomas must pay $40,460 in restitution to Medicare and complete 2 years of supervised release at the end of his prison term.
"Health care fraud is a serious crime that deserves time behind bars," said Acting U.S. Attorney John Green. "Even the short prison sentence imposed here sends a clear message to health care providers that stealing from American taxpayers will not be tolerated."
Steve Hanson, Special Agent in Charge, United States Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, "In order to protect our Medicare and Medicaid programs from unscrupulous health care providers, our office will continue to work with our law enforcement partners to pursue those who overbill our programs for services they did not provide to our beneficiaries."
The sentence was imposed on June 22 in Cheyenne by the Honorable Alan Johnson, United States District Court Judge for the District of Wyoming.
This case was investigated by special agents from the United States Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation and the Wyoming Medicaid Fraud Control Unit, and prosecuted by the United States Attorney’s Office for the District of Wyoming.
Colorado Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Littleton, Colorado, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Anthony One Star, Jr., a/k/a Tony One Star, age 29, was indicted on May 16, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 22, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 22, 2017, One Star assaulted a federal law enforcement officer.
The charge is merely an accusation and One Star is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
One Star was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Brockton Man Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Brockton man was sentenced on Wednesday, June 21, 2017, in federal court in Boston for trafficking fentanyl.
Edson Gomes, 20, a/k/a “E,” was sentenced by U.S. District Court Judge William G. Young to 71 months in prison and three years of supervised release. During the period of supervised release, Gomes is prohibited from associating with his co-conspirators and certain Brockton gang members. He is also prohibited from being in the City of Brockton.
In January 2017, Gomes pleaded guilty to conspiracy to possess with intent to distribute fentanyl. In April 2016, Gomes was arrested and charged in a criminal complaint along with Luis DaCosta and Gilvan Monteiro. In May 2016, they and four others were indicted on drug and firearm-related charges.
On numerous occasions between December 2015 to March 2016, Gomes and his co-defendants sold fentanyl in the Brockton area, and shared several of the same customers. In instances where Monteiro was out of fentanyl, he would direct his customers to purchase from Gomes. On Feb. 10, 2016, Gomes conducted a drug deal with co-defendant Gabriel Nieves, and then mistakenly left his gun in Nieves’ car. Law enforcement seized the firearm when Nieves was stopped and arrested. Five days later, Gomes tried to obtain a replacement gun.
According to court documents, Gomes has a violent criminal history. At age 15 he was charged with assault and battery, and at age 17 he was arrested twice on drug possession charges. Gomes currently has three pending cases against him.
DaCosta was sentenced to 106 months in federal prison in May 2017. Monteiro pleaded guilty in federal court in January 2017 and is scheduled to be sentenced on July 10, 2017.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorneys Glenn A. MacKinlay and Timothy Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Avery, Texas Man Sentenced for 2015 Northeast Texas Crime SpreeRead the Press Release
TEXARKANA, Texas – A 50 year old Avery, Texas man was sentenced to federal prison for crimes he committed in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Bobby Wayne Lance was sentenced to a total of 1054 months today during a sentencing hearing before U.S. District Judge Robert Schroeder, III.
According to information presented in court, Lance robbed a Bowie County convenience store, a Lamar County movie theater and a Franklin County bank in a crime spree that spread over several days in November 2015. After Lance was identified as a suspect, deputies from multiple jurisdictions, along with the FBI, searched Lance’s home, where they recovered two bags of cash containing “bait bills” that had been photocopied by the bank to be used in the event of a robbery. In addition to the money, the search also led to the discovery of a loaded revolver, recovered from a shed behind Lance’s home. In his truck, officers found receipts for over $73,000 for past due bills that had been paid in the days between the thefts.
Lance was convicted of violating the Hobbs Act for the robbery of the Movies 8 in Paris, Texas on November 8, 2015 and the robbery of the Carter RV Convenience Store in Dekalb, Texas on November 14, 2015. He was also convicted of bank robbery for the hold-up of the First National Bank in Mount Vernon, Texas on November 17, 2015 and a carjacking that occurred that same date in relation to the bank robbery. He was also convicted of four counts of use or carrying of a firearm in furtherance of a crime of violence, in relation to all the robberies.
“This is a great day for the citizens of this community,” said Brit Featherston, Acting U.S. Attorney, “Lance thought he was a real life Clyde Barrow, minus the “Bonnie.” This very appropriate and just sentence, of over eighty-seven years, will insure that Lance will never harm another person in our community.”
This case was investigated by the Federal Bureau of Investigation, Paris Police Department, Texarkana, Texas Police Department, Franklin County Sheriff’s Office, Red River County Sheriff’s Office, Bowie County Sheriff and the Texas Rangers. This case was prosecuted by Assistant U.S. Attorneys Ryan Locker, Robert Wells, and Jonathan Ross.
Anchorage Man Sentenced for Assaulting a Deputy U.S. Marshal with a Sawed-Off ShotgunRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Anchorage man was sentenced yesterday to 41 months in federal prison for assaulting a Deputy U.S. Marshal with a deadly and dangerous weapon while the Deputy was engaged in his official duties.
Leigaga Selau Amituanai, aka: “G,” 27, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to 41 months, followed by three years of supervised release and 120 hours of community service. On Feb. 14, 2017, Amituanai pled guilty to Count 1 of the Superseding Indictment, which charged him with assault on a federal officer with a dangerous and deadly weapon.
According to court documents filed in this case, on the morning of Feb. 11, 2016, the Deputy U.S. Marshal was on duty, conducting surveillance in an unmarked United States Marshals Service (USMS) vehicle in a business parking lot near Mountain View Drive and North Park Street in Anchorage. Shortly before 10:30 a.m., Amituanai and co-defendant Sulu Faamolemole, aka “Chase,” pulled into the parking lot driving a stolen brown Toyota pickup truck. After spotting the Deputy U.S. Marshal’s vehicle and noting its darkly tinted windows and the fact it was running, they slowly approached his vehicle, staring and gesturing aggressively at the Deputy.
When the pickup truck crossed directly in front of the Deputy U.S. Marshal’s vehicle, Amituanai pulled out a sawed-off shotgun and pointed it at the Deputy to intimidate him, all while maintaining eye contact with the Deputy. Amituanai and Faamolemole passed the Deputy, and turned west onto Mountain View Drive.
When APD officers and the Deputy U.S. Marshal tried to pull over Amituanai and Faamolemole in the Red Apple parking lot a short time later, Amituanai and Faamolemole attempted to elude officers, driving down an embankment onto the Glenn Highway exit ramp at Bragaw Street before leading law enforcement on a high speed chase down Bragaw Street and into a residential neighborhood. A sawed-off shotgun was found next to Amituanai’s seat. In addition, multiple shotgun shells, a loaded pistol, burglary tools, multiple sets of car keys, and other evidence of criminal activity were recovered from the vehicle. The investigation revealed that Amituanai was encountered by the Anchorage Police Department twice in stolen vehicles the month prior to assaulting the Deputy on Feb. 11, 2016.
In sentencing Amituanai, Judge Gleason stated the defendant’s crime was one “that, as a community, we cannot . . . tolerate.” Judge Gleason specifically found that Amituanai believed that the person in the Deputy’s unmarked vehicle was likely a law enforcement officer, and that fact made his crime even more serious. The Judge also found that in early 2016 Amituanai was “out of control in terms of criminal behavior,” noting the defendant was arrested in a stolen vehicle, with a sawed-off shotgun, and burglary tools.
“Protection of law enforcement officers as they diligently perform their duties is an essential responsibility of the Department of Justice,” said Acting U.S. Attorney Schroder. “Every day, all across the country, law enforcement officers put their lives on the line to protect the citizens of this nation from violent crime. We will continue to hold responsible those who threaten our law enforcement professionals.”
“It is not within a law enforcement officer’s routine duties to be threatened with lethal force, nor should it ever be,” said Robert Heun, United States Marshal for the District of Alaska. “While it happens all too often, it must never be considered the norm or simply a part of the job. Such assaults are not only upon the individual officer, but upon the greater law abiding citizenry that he or she represents.”
Faamolemole is scheduled to be sentenced on July 10, 2017, at 10:00 a.m. before Judge Gleason in Courtroom 3.
The United States Marshal Service (USMS), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Anchorage Police Department (APD) conducted the investigation in this case.
Albuquerque Man Sentenced to 120 Years for Producing and Distributing Child Pornography Depicting Two ToddlersRead the Press Release
ALBUQUERQUE – Yesterday afternoon, U.S. District Judge William P. Johnson imposed sentence on Michael Dameon Blackburn, 31, of Albuquerque, N.M., for his conviction for producing, distributing, receiving and possessing child pornography depicting two toddlers. Judge Johnson sentenced Blackburn to 120 years of imprisonment to be followed by a lifetime of supervised release, and ordered Blackburn to register as a sex offender. The Judge also ordered Blackburn to pay $430,800.00 in restitution to the two children who were victims of his criminal conduct.
Blackburn’s sentence was announced Acting U.S. Attorney James D. Tierney, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Tex., Bernalillo County Sheriff Manuel Gonzales, III, and Albuquerque Police Chief Gorden Eden, Jr.
In announcing the sentence, Acting U.S. Attorney Tierney said, “The U.S. Attorney’s Office has made it a priority to prosecute those who exploit young, vulnerable children. While there are never any winners in these cases, we hope that the knowledge that Blackburn will spend the rest of his life in prison where he can never harm them or any other child will bring a measure of solace to the two young children he so terribly exploited.”
“HSI will continue to work closely with its law enforcement partners, as it did in this case, to keep our children safe and our communities strong against these heinous crimes and criminals,” said HSI Special Agent in Charge Rodriguez. “This is our message to those who prey on children: we will find you, we will bring you to justice, and we will make you answer for your despicable crimes.”
“The Bernalillo County Sheriff’s Office is committed to collaborating with federal agencies to proactively investigate crimes against children, and that commitment is reaffirmed when, as in this case, we are able to rescue young victims from the sexual predators who exploit them,” said Bernalillo County Sheriff Gonzales. “Let this case serve as a warning to those who prey on children, we are dedicated to identifying you and holding you accountable for your repulsive crimes.”
“We must do the utmost to ensure those who prey on innocent children are punished to the full extent of the law. It is a privilege to work alongside our law enforcement partners and hold these worst of the worst criminals accountable,” said Albuquerque Police Chief Eden.
HSI special agents arrested Blackburn in Dec. 2013, on a criminal complaint charging him with producing and distributing visual depictions of minors engaged in sexually explicit conduct in Bernalillo County, N.M., between March 2013 and Dec. 2013. In Jan. 2014, a federal grand jury filed a five-count indictment charging Blackburn was distribution, receipt and possession of child pornography, and two counts of producing child pornography. The indictment alleged that Blackburn committed all five offenses in Bernalillo County between Jan. 2013 and Dec. 2013.
The investigation leading to the charges against Blackburn began on Nov. 15, 2013, when HSI in Albuquerque received information from the HSI Cyber Crimes Center about a pornographic image of a young child victim who might be in the Albuquerque area. HSI’s investigative efforts identified a residence in northeast Albuquerque as a possible location for the person who may have distributed the pornographic image of the young child victim.
Court filings indicate that on Dec. 17, 2013, law enforcement officers conducted a welfare check at the residence and made contact with Blackburn and two children – a girl and a boy, both two years of age – who were left in Blackburn’s care while their parents were out of town. The officers learned that Blackburn had been sexually molesting the toddlers from at least March 2013 through Dec. 2013, and taking photographs and making videos of the toddlers while he molested them. They also learned that Blackburn emailed the pornographic images and videos of the toddlers to others. The two young victims were immediately removed from the residence and put into protective custody.
Blackburn entered a guilty plea on March 14, 2016, to all five counts of the indictment. In his plea agreement, Blackburn admitted distributing a video of a female toddler being forced to perform a sexual act on an adult male. He also admitted receiving a video of a male toddler being forced to perform a sexual act with an adult male, and possessing a pornographic image of a female toddler. Blackburn also acknowledged producing pornographic images of a female toddler and a male toddler.
This case was investigated by the Albuquerque office of HSI, Bernalillo County Sheriff’s Office and the Albuquerque Police Department, all members of the New Mexico Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorneys Marisa A. Ong and Shammara Henderson prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Attorney General Sessions Announces Creation of National Public Safety Partnership to Combat Violent CrimeRead the Press Release
WASHINGTON – As the Department of Justice continues its efforts to fulfill President Trump’s commitment to reducing violent crime in America, Attorney General Jeff Sessions announced today that 12 cities are joining the Department’s newly organized National Public Safety Partnership (PSP). The announcement came during the opening session of a national summit organized by the Attorney General’s Task Force on Crime Reduction and Public Safety. The summit convened federal, state and local law enforcement to discuss how to support and replicate successful local violent crime reduction efforts.
A list of the cities is posted at www.nationalpublicsafetypartnership.org.
“Turning back the recent troubling increase in violent crime in our country is a top priority of the Department of Justice and the Trump Administration, as we work to fulfill the President’s promise to make America safe again,” said Attorney General Sessions. “The Department of Justice will work with American cities suffering from serious violent crime problems. There is no doubt that there are many strategies that are proven to reduce crime. Our new National Public Safety Partnership program will help these communities build up their own capacity to fight crime, by making use of data-driven, evidence-based strategies tailored to specific local concerns, and by drawing upon the expertise and resources of our Department.”
“The partnership of federal, state and local law enforcement in Birmingham has already gained national prominence for our efforts in combating violent crime with the Birmingham Violence Reduction Initiative and as one of the pilot cities of the National Initiative for Building Community Trust and Justice,” said acting U.S. Attorney Robert O. Posey for the Northern District of Alabama. “For us to be included in this National Public Safety Partnership means that we will get additional support from the Department of Justice for our ongoing and future efforts. This is further recognition of the fine work being done by the Birmingham Police Department, the City of Birmingham, the Jefferson County District Attorney’s Office and other agencies working to find innovative solutions to the violent crime problem in Birmingham,” he said.
The Justice Department created PSP and the task force in response to President Trump’s February 9, 2017, Executive Order charging the agency with leading a national effort to combat violent crime. The partnership provides a framework for enhancing federal support of state, local and tribal law enforcement officials and prosecutors as they aggressively investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking and gang violence.
Twelve sites have been selected to receive this significant assistance:
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Birmingham, Alabama
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Indianapolis, Indiana
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Memphis, Tennessee
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Toledo, Ohio
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Baton Rouge, Louisiana
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Buffalo, New York
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Cincinnati, Ohio
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Houston, Texas
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Jackson, Tennessee
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Kansas City, Missouri
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Lansing, Michigan
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Springfield, Illinois
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We anticipate announcing additional sites this calendar year.
The Justice Department agencies involved in PSP are the United States Attorneys’ Offices, Office of Justice Programs; the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the Drug Enforcement Administration; the Office on Violence Against Women; and the Office of Community Oriented Policing.
For more information about the Department of Justice’s work to reduce violent crime and enhance public safety:
Attorney General Announces Crime Reduction and Public Safety Task Force
Attorney General Sessions Directs Federal Prosecutors to Target Most Significant Violent Offenders
Attorney General Jeff Sessions Announces New Initiatives to Advance Forensic Science and Help Counter the Rise in Violent Crime
Attorney General Jeff Sessions Announces New Actions to Support Law Enforcement and Maintain Public Safety in Indian Country
Department of Justice Releases Report Detailing the Prosecutions of Transnational Criminal Organizations and their Subsidiaries
Attorney General Sessions Issues Charging and Sentencing Guidelines to Federal Prosecutors
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'Buckeye Bandit' Sentenced to 240 Months in PrisonRead the Press Release
COLUMBUS, Ohio – Ikechi W. Emeaghara, 27, of Columbus, was sentenced today in U.S. District Court to 240 months in prison for eight counts of armed bank robbery. Emeaghara is the armed robber dubbed as the “Buckeye Bandit” by law enforcement.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office; Columbus Police Chief Kim Jacobs; Franklin County Sheriff Dallas Baldwin; Delaware County Sheriff Russell L. Martin; Ohio State University Police Chief Craig Stone; Worthington Police Chief Jerry L. Strait, Jr.; Upper Arlington Police Chief Tracy Hahn and Gahanna Police Chief Dennis Murphy announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, Emeaghara brandished a dangerous weapon and demanded cash from bank teller’s drawers on the following occasions:
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October 31, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna
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November 30, 2013 at the Cooper State Bank on West 5th Avenue in Columbus
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December 6, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna
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July 9, 2014 at the Smart Federal Credit Union on North High Street in Columbus*
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January 12, 2015 at the Cooper State Bank on Sawmill Road in Columbus*
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April 26, 2015 at the Cooper State Bank on Sawmill Road in Columbus*
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March 17, 2016 at the First Merit Bank on East Powell Road in Powell
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October 21, 2016 at the Key Bank on Frantz Road in Columbus (original indictment)
* Denotes armed robbery charges that also include forcing one or more persons to accompany him within the bank.
Emeaghara was indicted by federal grand juries in initial and superseding indictments in November and December 2016. He pleaded guilty to eight counts of armed robbery in March 2017.
Emeaghara was also ordered to pay restitution to the banks and sentenced to five years of supervised release following his term of imprisonment.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement and Deputy Criminal Chief Gary L. Spartis and Assistant U.S. Attorney Salvador A. Dominguez, who are prosecuting the case.
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22 June 2017
Woman Sentenced for Role in Heroin Overdose DeathRead the Press Release
NEWPORT NEWS, Va. – A Newport News woman was sentenced to 20 years in prison today for her role in the distribution of heroin to a person who overdosed and died.
Julie Rae Rock, 38, pleaded guilty on March 13. According to court documents, in November 2015, Rock purchased heroin that contained fentanyl from co-defendant Robert Alan Durkee. Rock then gave the heroin to the victim, identified in court documents as E.H., at a hotel in Newport News. The victim almost immediately fell to the ground. Rock left E.H., and his body was recovered later that day by hotel staff. E.H.’s cause of death was determined to be acute combined heroin and fentanyl intoxication.
Durkee was sentenced on June 8 to 20 years in prison for his role in the overdose death.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Richard W. Myers, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorneys Megan M. Cowles and Lisa R. McKeel prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-84.
Wilson City Drug Trafficker Found Guilty of Heroin Distribution That Resulted in A DeathRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court in New Bern, N.C., United States District Judge Louise W. Flanagan presiding, a jury found ELTON WAYNE WALSTON, from Wilson, North Carolina, guilty of one count of distribution of heroin that resulted in the death of a Wilson, N.C. man, one count of possession with intent to distribute heroin, one count of illegally possessing a firearm and ammunition, and four counts of distribution of heroin.
In 2015, the Wilson Police Department and Drug Enforcement Administration (DEA), Raleigh, North Carolina, identified the defendant as a source of heroin in the Wilson, Greenville, and Nash County areas. Investigation confirmed that the defendant sold heroin on multiple occasions including a sale that led to the death of a Wilson man in March of 2015.
“Heroin and other opioids are a deadly plague across our country. Our office - along with the entire U.S. Department of Justice - is determined to hold accountable those who deal these deadly drugs to enrich themselves. This prosecution is an example of that determination,” said John Stuart Bruce, U.S. Attorney for the Eastern District of North Carolina.
“This guilty verdict is a victory for law enforcement and the citizens of North Carolina. DEA and our law enforcement partners are committed to bringing to justice those who prey on individuals who are unfortunately addicted to this poison. Hopefully, this verdict, will bring some comfort to the families impacted by Mr. Walston’s illegal activities,” said DEA Special Agent in Charge Daniel R. Salter.
The case was investigated by the DEA Raleigh Resident Office, Wilson Police Department, North Carolina State Office of the Chief Medical Examiner, the North Carolina State Bureau of Investigations Crime Lab, and the Bureau of Alcohol Tobacco and Firearms (ATF). The federal prosecution was handled by Special Assistant United States Attorney Boz Zellinger and Assistant United States Attorney Edward D. Gray.
This investigation was part of the Strategic Heroin Initiative, initiated by the United States Attorney’s Office for the Eastern District of North Carolina in partnership with the Department of Justice's Organized Crime and Drug Enforcement Task Force.
Wethersfield Woman Sentenced to 2 Years in Prison for Stealing $1.7 Million from Computer Software CompanyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PENNY ROY, 46, of Wethersfield, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by three years of supervised release, for stealing $1.7 million from her former employer, a Connecticut-based computer software company. ROY also failed to pay taxes on the stolen funds.
According to court documents and statements made in court, ROY used her position as the software company’s payroll manager to insert her own bank account information into the profiles of other employees. She then processed fraudulent expense reimbursements and payroll payments in other employees’ names with the payments flowing into her own bank account. In total, ROY stole $1.7 million and was fired after the company discovered her fake payments.
To hide her theft, ROY failed to declare the stolen money on her tax returns, depriving the Internal Revenue Service of over $600,000 in tax revenues. As part of her sentence, ROY was ordered to make full restitution to the software company and the Internal Revenue Service.
On August 21, 2015, ROY pleaded guilty to wire fraud and tax charges.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
West Rutland Man Sentenced to Six Years of Imprisonment for Distribution of Heroin and Crack CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Demar Neal (a.k.a. “D”), 31, was sentenced by United States Chief District Court Judge Christina Reiss to a six-year term of imprisonment for conspiring to distribute heroin and crack cocaine in the Rutland area in 2015 and 2016. Neal previously pled guilty to this offense. Neal is originally from the Catskill, New York area, but at the time of his arrest lived on Harrison Avenue in West Rutland, Vermont. Neal has been in the custody of the U.S. Marshals Service since his arrest on June 9, 2016.
The maximum term of imprisonment for this offense is 20 years. In addition to imposing a six-year term of imprisonment, Chief Judge Reiss sentenced Neal to a mandatory four-year term of supervised release, which will begin after Neal serves his prison term. The Court also ordered that Neal forfeit over $16,000 of drug proceeds that law enforcement seized during the course of the investigation. In sentencing Neal, Chief Judge Reiss stated that this was a “serious sentence” that reflected the fact Neal “used [his] skills to do something extremely destructive” to the community.
According to court records, Neal relied on local addicts to distribute his heroin and cocaine base in Rutland County. On June 9, 2016, law enforcement executed a search warrant at Neal’s residence on Harrison Avenue in West Rutland and seized $6,800 in currency and approximately 80 grams of heroin and 70 grams of crack cocaine. Several weeks earlier, on March 22, 2016, the Rutland County Sheriff’s Department seized a bag containing approximately 50 grams of heroin and $9,400 in cash hidden under a porch on Thrall Avenue in West Rutland. A concerned citizen at the time described a person matching Neal’s description as the man who hid it there. Neal denied knowledge of the bag when questioned at that time, but after his June 2016 arrest, he admitted to hiding the bag.
This case was investigated by the Vermont State Police Drug Task Force, the Rutland County Sheriff’s Department, the Federal Bureau of Investigation, and the Drug Enforcement Administration. The United States is represented by Assistant U.S. Attorney Joe Perella. The defendant is represented by Michael Desautels Esq. of Burlington.
West Richland Man Sentenced to 11 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Darrin Lee Ruddell, of West Richland, Washington, was sentenced after previously having pled guilty on March 1, 2017, to receipt of child pornography. Senior United States District Judge Edward F. Shea, sentenced Ruddell to an 11-year term of imprisonment, to be followed by a 30-year term of court supervision after he is released from federal prison. Ruddell will also be required to register as a sex offender.
According to information disclosed during court proceedings, in the fall of 2015, the Benton County Sheriff’s Office received three CyberTips from the National Center for Missing and Exploited Children. The CyberTips originated with a cloud storage company associated with Verizon Wireless, and contained child pornography images. The cloud storage account at issue was associated with a Verizon Wireless account, which was later determined to belong to Ruddell. Further investigation revealed that Ruddell was employed as a nurse at Kadlec Regional Medical Center.
Officers with the Benton County Sheriff’s Office obtained and executed a search warrant at Ruddell’s residence in West Richland in February of 2016. During the course of the search warrant, officers seized multiple computers, electronic storage devices, and cellular phones, including the cellular phone associated with the Verizon Wireless cloud storage account referenced in the CyberTip.
Forensic examinations were subsequently conducted on the various devices seized from Ruddell’s residence. Thousands of child pornography images were located on the computers, cellular phones and electronic storage devices belonging to Ruddell, including depictions of children who were under the age of twelve.
Acting United States Attorney Harrington said, “The sentence handed down provides just punishment for this offense.” He further stated, “This investigation is yet another example of the dedication of law enforcement officers and their willingness to ferret out those who intend to victimize children through the receipt of child pornography.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The investigation of this matter was conducted by the Benton County Sheriff’s Office, Homeland Security Investigations, and the Southeast Regional Internet Crimes Against Children Task Force. The case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington.
Virginia Man Arrested and Charged with EspionageRead the Press Release
Kevin Patrick Mallory, 60, of Leesburg, Virginia, made his initial appearance in federal court today on charges that he transmitted Top Secret and Secret documents to an agent of the People’s Republic of China. According to the affidavit in support of the criminal complaint, Mallory, travelled to Shanghai in March and April 2017 and met with an individual (PRC1), who he believed was working for the People’s Republic of China Intelligence Service (PRCIS).
The announcement was made by Dana J. Boente, Acting Assistant Attorney General for National Security and the U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
“The conduct alleged in this complaint is serious, and these charges should send a message to anyone who would consider violating the public’s trust and compromising our national security by disclosing classified information,” said Mr. Boente.
“Kevin Mallory was previously entrusted with Top Secret clearance and therefore had access to classified information, which he allegedly shared and planned to continue sharing with representatives of a foreign government,” said Mr. Vale. “Furthermore, he allegedly misled investigators in a voluntary interview about sharing of this classified information. The FBI will continue to investigate those individuals who put our national security at risk through unauthorized disclosures of information.”
During a voluntary interview with FBI agents on May 24, Mallory stated that PRC1 represented himself as working for a People’s Republic of China think tank, the Shanghai Academy of Social Sciences (SASS). Since at least 2014, the FBI has assessed that Chinese intelligence officers have used SASS affiliation as cover identities.
Mallory told FBI agents he travelled to Shanghai separately in March and April to meet with PRC1 and PRC1’s boss. After Mallory consented to a review of a device he had been using to communicate with PRC1, FBI viewed a message from Mallory to PRC1 in which Mallory stated that he had blacked out security classification markings on documents transmitted to PRC1. Analysis of the device also revealed a handwritten index describing eight different documents. Four of the eight documents listed in the index were found stored on the device, with three containing classified information pertaining to the same U.S. government agency. One of those documents was classified TOP SECRET, while the remaining two documents were classified SECRET.
Mallory, a self-employed consultant with GlobalEx LLC, is a U.S. citizen who speaks fluent Mandarin Chinese. He has held numerous positions with various government agencies and several defense contractors. As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career. Mallory’s security clearance was terminated in October 2012 when he left government service.
Mallory was arrested this morning and is charged with gathering or delivering defense information to aid a foreign government, and making material false statements. If convicted, Mallory faces a maximum sentence of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Trial Attorney Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney John T. Gibbs for the Eastern District of Virginia are prosecuting the case.
Victoria Man Charged with Hate Crime in Burning of MosqueRead the Press Release
A federal grand jury in Victoria, Texas, has returned a three-count superseding indictment against Marq Vincent Perez, 25, for allegedly burning the Victoria Islamic Center on January 28, 2017.
Acting U.S. Attorney Abe Martinez made the announcement along with Acting Assistant Attorney General Thomas E. Wheeler II of the Department of Justice’s Civil Rights Division, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Perrye K. Turner of the FBI and various state and local law enforcement agencies.
Perez was previously indicted for possession of an unregistered destructive device for an incident that occurred on January 15, 2017. The superseding indictment returned today now charges him with a hate crime – damage to a religious property as well as use of a fire to commit a federal felony in relation to the arson at the mosque.
Perez was initially arrested and charged March 3, 2017, in connection with an attempt to blow up a car with a destructive device. At a detention hearing held the following week, court heard evidence linking Perez to a January 22, 2017, burglary of the Victoria Islamic Center as well as a January 28, 2017, burglary and arson of the same mosque. Perez is in custody pending further criminal proceedings.
If convicted, Perez faces up to 20 years in federal prison for the hate crime. He also faces up to 10 years for possessing an unregistered destructive device. If convicted of use of a fire to commit a felony, the penalty is a consecutive and mandatory minimum of 10 years in prison. All of the counts also carry a potential $250,000 penalty.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
ATF and FBI conducted the investigation along with the City of Victoria Fire Marshal’s Office, Victoria Fire Department, Victoria Police Department, Texas Department of Public Safety - Criminal Investigations Division and Texas Rangers with assistance of Texas State Fire Marshal’s Office and sheriff’s offices in Victoria and Nueces Counties.
Assistant U.S. Attorneys Sharad S. Khandelwal and Kate Suh are prosecuting the case along with Trial Attorney Saeed Mody of the Department of Justice’s Civil Rights Division.
Victoria Man Charged with Hate Crime in Burning of MosqueRead the Press Release
VICTORIA, Texas – A federal grand jury in Victoria has returned a three-count superseding indictment against Marq Vincent Perez, 25, for allegedly burning the Victoria Islamic Center on Jan. 28, 2017.
Acting U.S. Attorney Abe Martinez made the announcement along with Acting Assistant Attorney General Thomas E. Wheeler II of the Department of Justice’s Civil Rights Division, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Special Agent in Charge Perrye K. Turner of the FBI and various state and local law enforcement agencies.
Perez was previously indicted for possession of an unregistered destructive device for an incident that occurred on Jan. 15, 2017. The superseding indictment returned today now charges him with a hate crime – damage to a religious property as well as use of a fire to commit a federal felony in relation to the arson at the mosque.
Perez was initially arrested and charged March 3, 2017, in connection with an attempt to blow up a car with a destructive device. At a detention hearing held the following week, court heard evidence linking Perez to a Jan. 22, 2017, burglary of the Victoria Islamic Center as well as a Jan. 28, 2017, burglary and arson of the same mosque. Perez is in custody pending further criminal proceedings.
If convicted, Perez faces up to 20 years in federal prison for the hate crime. He also faces up to 10 years for possessing an unregistered destructive device. If convicted of use of a fire to commit a felony, the penalty is a consecutive and mandatory minimum of 10 years in prison. All of the counts also carry a potential $250,00 penalty.
ATF and FBI conducted the investigation along with the City of Victoria Fire Marshal’s Office, Victoria Fire Department, Victoria Police Department, Texas Department of Public Safety - Criminal Investigations Division and Texas Rangers with assistance of Texas State Fire Marshal’s Office and sheriff’s offices in Victoria and Nueces Counties.
Assistant U.S. Attorneys Sharad S. Khandelwal and Kate Suh are prosecuting the case along with Trial Attorney Saeed Mody of the Department of Justice’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
U.S. Border Patrol Agent Pleads Guilty to Drug SmugglingRead the Press Release
Assistant U. S. Attorney David Leshner (619) 546-7921
NEWS RELEASE SUMMARY – June 22, 2017
SAN DIEGO – U.S. Border Patrol Agent Noe Lopez pleaded guilty to drug trafficking charges in federal court today, admitting that he attempted to smuggle methamphetamine and cocaine while on duty in exchange for cash.
In a hearing before U.S. Magistrate Judge Andrew G. Schopler, Lopez pleaded guilty to two counts of attempted distribution of methamphetamine and cocaine, in violation of 21 U.S.C. §§ 841 (a) (1) and 846. Sentencing is scheduled for September 8, 2017 at 9 a.m. before U.S. District Judge Dana M. Sabraw.
“It’s an audacious thing for an on-duty Border Patrol agent to transport what he believes to be methamphetamine and cocaine in his official vehicle, on behalf of drug traffickers,” said Acting U.S. Attorney Alana W. Robinson. “While there are a relatively small number of them, corrupt Border Patrol agents are a national security threat, and for that reason they are a very high prosecutorial priority.”
“The U.S. Border Patrol stresses honor and integrity in every aspect of our mission; Honor First is our Motto,” said Chief Patrol Agent Richard A. Barlow of San Diego Sector Border Patrol. “Mr. Lopez’ action is a stain on the agents and employees of the Border Patrol who perform their duties with honor and distinction, working diligently day-to-day to keep our country safe. We do not tolerate corruption within our ranks, and are grateful to the hard work of the Border Corruption Task Force and other agencies that rooted out Mr. Lopez’ atrocious behavior.”
FBI Special Agent in Charge Eric S. Birnbaum said, “The vast majority of public servants who work at the local, state, and federal levels of government are honest and dedicated folks who strive every day to do the right thing for their constituents, their communities, and their country. In the U.S. and abroad, the FBI is doing everything we can to help ensure that the good name of the vast majority of public servants is not besmirched by a corrupt few. This type of corruption at our San Diego borders strikes at the heart of government and erodes public confidence, therefore, the investigation of public corruption is one of FBI’s top criminal priorities.”
According to the plea agreement, in November 2016, Lopez and a confidential source whom Lopez believed to be a drug trafficker agreed to a plan whereby Lopez would retrieve backpacks containing what Lopez believed to be controlled substances from the north side of the United States/Mexico border fence while on duty with the Border Patrol.
Lopez admitted that he agreed to transport the backpacks in his Border Patrol vehicle and deliver them to the source in exchange for thousands of dollars.
On November 30, 2016, Lopez purchased three backpacks that would be used to transport the controlled substances and gave the backpacks to the source. They agreed that on December 6, 2016, Lopez would retrieve a backpack containing six pounds of methamphetamine while on duty with the Border Patrol and deliver the backpack to the source. Lopez told the source where to place the backpack containing methamphetamine on the north side of the United States/Mexico border.
According to Lopez’s admissions in his plea agreement, on December 6, 2016, undercover DEA agents placed a backpack (one of the three backpacks purchased by Lopez) containing six pounds of a substance resembling methamphetamine near the prearranged location. Lopez drove to the location in his Border Patrol vehicle and retrieved the backpack. He returned to the Border Patrol Station and placed the backpack in his personal vehicle. At the conclusion of his Border Patrol work shift, Lopez met the source at a parking lot in Chula Vista, where Lopez gave the source the backpack containing what Lopez believed to be six pounds of methamphetamine.
On December 7, 2016, the source paid Lopez $3,000 for retrieving and delivering the purported methamphetamine.
This scenario was repeated on December 8, 2016, except the backpack purportedly contained seven kilograms of cocaine. On December 9, 2016, the source paid Lopez $7,000 for retrieving and delivering the purported cocaine.
DEFENDANT Case Number 17cr0086
Noe Lopez Age: 37 Chula Vista, CA
SUMMARY OF CHARGES
Attempted Distribution of Methamphetamine and Cocaine, in violation of 21 U.S.C. 841 (a) (1) and 846
Maximum penalty: Life in prison and $10 million fine
AGENCIES
Federal Bureau of Investigation
U.S. Drug Enforcement Agency
U.S. Border Patrol
U.S. Attorney Richard S. Hartunian to Step DownRead the Press Release
Albany, New York – Richard S. Hartunian announced today that he will step down as United States Attorney for the Northern District of New York on June 30, 2017, after serving seven and one-half years in office and 20 years with the Department of Justice. Hartunian has informed President Trump and Attorney General Sessions of his decision. First Assistant United States Attorney Grant C. Jaquith will become Acting United States Attorney for the Northern District of New York on July 1, 2017.
“Serving as the United States Attorney for the Northern District of New York has been the highest professional privilege of my lifetime,” said United States Attorney Hartunian. “It has been an honor to work with the men and women of the Department of Justice and to witness the immeasurable commitment to justice of my law enforcement colleagues throughout the nation. I am especially grateful for the opportunity to lead an office of outstanding, dedicated professionals who work tirelessly, day in and day out, to keep our communities safe. I am proud of our achievements and confident that the good work of the U.S. Attorney’s Office will continue under the outstanding leadership of Acting United States Attorney Jaquith.”
Deputy Attorney General Rod J. Rosenstein said, “Throughout his service as a career prosecutor and as United States Attorney, Rick Hartunian has demonstrated a steadfast commitment to the cause of justice. He is an excellent colleague and a reliable friend. I thank Rick for his twenty years of distinguished federal service and wish him all the best in the next chapter of his career.”
Richard S. Hartunian took office as the 48th United States Attorney for the Northern District of New York on January 3, 2010. Hartunian also served as the Chair of the Attorney General’s Advisory Committee (AGAC) in 2016 and 2017, leading the sixteen U.S. Attorneys who are responsible for advising the Attorney General on policy, management and operational issues influencing all 94 federal districts nationwide. He was appointed to this committee in 2013, working with his U.S. Attorney colleagues from around the nation to fight violent crime, promote border security, improve police/community relations and address the nationwide heroin/opioid abuse epidemic.
In 2010, Hartunian was honored by the Armenian Bar Association as the first United States Attorney of Armenian descent.
As United States Attorney, Hartunian emphasized several key areas. Fighting terrorist activity has been his highest priority – indeed, his sister Lynne was killed in the 1988 terrorist bombing of Pan Am Flight 103 – and his tenure included the prosecution of Glendon Crawford and Eric Feight. Crawford, a Ku Klux Klan member and the first person to be convicted of attempting to possess and use a radiological dispersal device, was sentenced to be imprisoned for 30 years for his plot to build a lethal radiation device to kill Muslim Americans and others. Feight, his accomplice, pled guilty to providing material support to terrorism and was sentenced to over 8 years in prison.
Border security has been a related priority, and Hartunian co-chaired the AGAC’s Border and Immigration Subcommittee, leading the Northern Border United States Attorneys in their efforts to combat transnational crime and improve cooperation with Canadian prosecutors and law enforcement agencies. In support of that effort, Hartunian testified on behalf of DOJ in April 2015, before the U.S. Senate Homeland Security and Governmental Affairs Committee, about the state of northern border security.
As a long time narcotics prosecutor, both on the local and federal level, U.S. Attorney Hartunian emphasized aggressive narcotics and gang prosecutions, with cases against the V-Not and Bricktown gangs in Syracuse, the Uptown Gunners in Schenectady, and the Original Gangsta Killers in Albany. His office fought the scourge of synthetic drugs through impactful prosecutions in Zhang and Tebbetts, and he testified on behalf of DOJ, before the United States Senate Judiciary Committee in June 2016, about the dangers of synthetic drugs.
In combatting financial fraud, U.S. Attorney Hartunian’s office prosecuted multi-million dollar fraudsters like McGinn and Smith, Stehl and Rossignol, Valente, and Backis.
Public and professional corruption has remained a priority for the DOJ and the U.S. Attorney’s Office under Hartunian’s leadership, as demonstrated by the prosecutions of Assemblyman Scarborough and Town Supervisor Warmouth, Saratoga County Deputy Sheriff Fuller, and attorneys Stanley Cohen, David Ehrlich and Michael Bouchard.
U.S. Attorney Hartunian also sought justice for victims of violent crime. In cases involving terrible acts of child exploitation, his office brought impactful prosecutions and achieved lengthy sentences against Kopp and Oberst, Howells and Vaisey, sex traffickers Tilden and Davall, and Christopher and Amanda Jansen. Finally, his office’s prosecution of four individuals for lying in connection with the investigation of a deadly arson homicide, where three children and one adult were killed, and another child seriously burned, demonstrated U.S. Attorney Hartunian’s commitment to fighting for victims of violent crime. “I am confident that my office will continue to seek the full measure of justice for the victims of this terrible tragedy,” he said, “and our prosecutors and agents will not rest until that goal has been fully achieved.”
Hartunian thanked his staff for their impactful work, describing them as “an incredible collection of talented AUSAs and support professionals who work long hours, out of the limelight, to help crime victims and keep our communities safe.”
Native American issues have remained an important facet of the U.S. Attorney’s work during Hartunian’s tenure. He served on the AGAC’s Native American Issues Subcommittee and visited several tribes throughout the United States, while consulting regularly with the Oneida, Mohawk, Onondaga and Cayuga nation leadership in the Northern District. He appointed a full time tribal liaison – a first for the NDNY – and collaborated closely with tribal police agencies to address public safety needs in Indian Country. “I am proud to have been part of improved nation to nation relations over the past eight years, and I am confident that we will build upon our successes and continue our constructive work with tribal communities in an environment of mutual respect and friendship,” Hartunian said.
U.S. Attorney Hartunian placed great emphasis on strengthening the NDNY Civil Division, doubling the number of AUSAs handling civil matters and emphasizing affirmative civil enforcement cases in the areas of health care, defense procurement and the environment. He was a member of the AGAC’s Health Care and Environmental Issues Subcommittees, and instituted programs designed to maximize recoveries and inform industry representatives about the NDNY’s increased enforcement efforts. As a measure of the success of these efforts, the NDNY recovered the following amounts in civil and criminal penalties during his term: $30.8 million in FY 2012; $29.3 million in FY 2013; $44 million in FY 2014; $32 million in FY 2015; and $20 million in FY 2016. In civil health care fraud matters alone, the office has recovered more than $25 million during Hartunian’s tenure -- a dramatic increase over previous years – including multi-million dollar settlements with Endo Pharmaceuticals, St. Joseph’s Hospital and Open MRI. “I’m proud of the work of the NDNY Civil Division, which has become a nationwide model of efficiency and effectiveness,” Hartunian said.
Crime prevention has also been a priority during his tenure, including through the LEADership Project, a youth violence reduction program designed to help 5th grade students steer clear of gangs, drugs, violence, and vandalism; Youth Courts; Reentry Court; and community and interdisciplinary forums to address the epidemic of opioid and synthetic drug abuse. “We must take a comprehensive approach to fighting crime – aggressive enforcement, strong prevention efforts aimed at young people, and attention to the needs of re-entering persons – these are the successful building blocks for safer communities,” Hartunian noted.
Hartunian is a 1983 cum laude graduate of the College of Arts and Sciences at Georgetown University and a 1986 graduate of the Albany Law School. He was engaged in the general private practice of law at the firm of Devine, Piedmont and Rutnik in Albany from 1987 to 1990, and served as an Assistant District Attorney in Albany County from 1990 to 1997, where his work on narcotics and violent crime cases led to his designation as a Special Assistant U.S. Attorney in 1994. He became an Assistant United States Attorney in 1997, and went on to serve as the Northern District’s Narcotics Chief and Organized Crime Drug Enforcement Task Force Coordinator from 2006 until his appointment as U.S. Attorney in 2010. During his tenure as an Assistant United States Attorney, Hartunian successfully prosecuted numerous large drug, gang, and violent crime cases. He has received many awards for his work, including the Federal Bureau of Prisons General Counsel’s Exemplary Assistance Award, the Narcotics Enforcement Officers’ Association U.S. Department of Justice Award, various Organized Crime Drug Enforcement Task Force Regional Awards, and several case-related commendations.
Hartunian plans to enter private practice, with a further announcement to follow.
The Northern District of New York is comprised of thirty-two counties in upstate New York, covering an area of over 30,000 square miles that is home to about 3.4 million people. The District includes 310 miles of the U.S. border with Canada and the Cayuga, Mohawk, Oneida, and Onondaga Nations. The United States Attorney has offices in Syracuse, Albany, Binghamton, and Plattsburgh.
U.S. Attorney Charges Former Alabama Legislator in Bribery ConspiracyRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office today charged a former Alabama legislator with accepting bribes from a Birmingham lawyer and an Alabama coal company executive in exchange for advocating their employers’ opposition to EPA actions in North Birmingham, announced Acting U.S. Attorney Robert O. Posey, FBI Special Agent in Charge Roger Stanton and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey.
An information filed in U.S. District Court charges former state representative OLIVER L. ROBINSON JR. with conspiracy, bribery and honest services wire fraud for accepting a valuable contract between the Birmingham law firm Balch & Bingham and the Oliver Robinson Foundation to influence and reward Robinson for using his position as a member of the Alabama House of Representatives, vice-chairman of the Jefferson County Legislative Delegation, and an elected representative of citizens of Birmingham to pressure and advise public officials to oppose EPA’s prioritization and expansion of a North Birmingham EPA Superfund site.
“This case gets at the heart of public corruption in Alabama,” Posey said. “Well-funded special interests offer irresistible inducements to public officials. In exchange, the officials represent the interests of those who pay rather than the interests of those who vote. Here a public official betrayed his community to advocate for those who polluted their neighborhoods.”
“As a result of Robinson's greed, he sold his office and betrayed the public's trust for personal gain,” Stanton said. “Robinson’s case is a prime example of why public corruption remains the FBI's top criminal investigative priority, and why my office established a public corruption tip line. If you know something about a corrupt public official, call our tip line at 844-404-TIPS (8477), and be assured the FBI will act on your information.”
“Elected officials take an oath to serve the community,” Dorsey said. “Instead of helping the community, Robinson was enriching himself at the expense of the taxpayers who elected him to serve. IRS Criminal Investigation is committed to tracing financial transactions to ensure that those who engage in these illegal activities are brought to justice.”
Robinson, 57, of Birmingham, represented Alabama’s House District 58 from 1998 until he resigned Nov. 30, 2016. The information also includes fraud charges connected to campaign contributions and to contributions that Robinson solicited for events he sponsored. The final count in the information charges Robinson with tax evasion for the 2015 calendar year.
In conjunction with the information, the government also filed a plea agreement with Robinson. Along with agreeing to plead guilty to the charges, Robinson agrees never again to seek elected office and pledges to pay restitution and forfeiture.
EPA designated an area of North Birmingham, including the neighborhoods of Harriman Park, Fairmont and Collegeville, as a Superfund site after finding elevated levels of arsenic, lead and benzo(a)pyrene during soil sampling.
In September 2013, EPA notified five companies, including ABC Coke, a division of Drummond Company, that they could potentially be responsible for the pollution. A company determined to be responsible for pollution within the site, known as the 35th Avenue Superfund Site, “could have faced tens of millions of dollars in cleanup costs and fines,” the information states.
In July 2014, EPA began considering the petition of a Birmingham environmental advocacy group, GASP, to expand the Superfund site to the Tarrant and Inglenook neighborhoods. EPA granted that petition in October 2014 and contracted with the Alabama Department of Environmental Management to perform the preliminary assessment.
In September 2014, EPA proposed adding the Superfund site to its National Priorities List, signaling that it required priority attention. Placement on the priorities list would allow EPA to use the federal Superfund Trust Fund to conduct long-term cleanup at the site, provided the State of Alabama agreed to pay 10 percent of the costs, which could equal millions of dollars, according to the charges. EPA’s decision on priority listing for the site remained pending throughout the scheme.
Balch & Bingham represented Drummond and ABC Coke in relation to the 35th Avenue site. A partner at Balch & Bingham, identified in the charges as “Attorney #1,” coordinated the response to EPA’s actions on behalf of ABC Coke and Drummond Company. A Drummond Company executive, identified as “Drummond Employee #1,” was involved with the attorney in responding to EPA. They formed the Alliance for Jobs and the Economy as a tax-exempt corporation in 2015 to raise money to help fund their opposition to the EPA actions, according to the charges.
The strategy employed by the attorney and the Drummond executive focused on protecting ABC Coke and Drummond from the tremendous potential costs associated with being held responsible for pollution within the affected areas. They sought to accomplish this goal by working to prevent EPA from listing the 35th Avenue site on the National Priorities List and expanding the Superfund site into Tarrant and Inglenook.
The plan included advising residents of North Birmingham and public officials to oppose EPA’s actions. As part of the overall strategy, Balch & Bingham paid Robinson, through his non-profit foundation, to represent Balch & Bingham’s and its clients’ interests, exclusively, in matters related to EPA’s actions in North Birmingham. Over the course of the contract in 2015 and 2016, Balch & Bingham paid $360,000 to the foundation.
One of the first tasks assigned to Robinson under the contract was to appear before the Alabama Environmental Management Commission and the director of the Alabama Department of Environmental Management in February 2015 to advance Balch & Bingham’s and its clients’ opposition to the Superfund proposals. In that appearance, Robinson said he was “really here today to try to protect the residents of north Birmingham.” He said, “[T]he thing that gets me and what is in the process of hurting the residents in that area is that the EPA has included five other corporations in on this process, but there have been no reports stating that these individuals are culpable in any way. And where that hurts the residents is the fact that we will have decades of litigation that will occur because of these five companies being added.”
Robinson asked the AEMC to help narrow the list of potentially responsible parties if there were no reports or tests implicating the corporations. Concluding, Robinson told the AEMC that if the areas of North Birmingham are designated as a Superfund site or listed on the NPL, the residents are “considered to live in a dump and nothing can happen there until it’s either cleaned up and after that, it will take tremendous investment to get it to move forward.”
Robinson concealed from AEMC and the ADEM director that Balch & Bingham and Drummond were paying the Oliver Robinson Foundation to represent their interests exclusively.
Fraud charges brought against Robinson outside of the bribery conspiracy include two counts of wire fraud for spending $17,783 of campaign contributions on personal items unrelated to his legislative campaigns.
The final wire fraud count charges Robinson with soliciting money from corporations, representing he would use it to publish a magazine or to defray costs for an annual Partnering for Progress Business Conference or the annual Alabama Black Achievers Awards Gala, which the Oliver Robinson Foundation sponsored. Robinson spent at least $250,000 of those contributions on personal items unrelated to the magazine or the annual events, according to the charges.
The maximum penalty for conspiracy is five years imprisonment and a $250,000 fine. The maximum penalty for bribery is 10 years imprisonment and a $250,000 fine. The maximum penalty for each count of wire fraud is 20 years imprisonment and a $250,000 fine. The maximum penalty for tax evasion is five years imprisonment and a $100,000 fine, together with the costs of prosecution.
The FBI and IRS investigated the case, which Assistant U.S. Attorneys George Martin and Robin Beardsley Mark are prosecuting.
Two Sex Money Murder Gang Members Convicted in Connection with Murder of Rival Gang MemberRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that a federal jury late yesterday found COREY BROWN guilty of murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, racketeering conspiracy, and firearms charges, and found JOSNEL RODRIGUEZ guilty of conspiracy to commit murder in aid of racketeering and racketeering conspiracy.
Acting U.S. Attorney Joon H. Kim said: “As a unanimous jury found after trial, Corey Brown ordered the murder of Vincent Davis, a rival gang member, and Josnel Rodriguez participated in that murder. Sex Money Murder has terrorized residents of the Bronx with years of drug dealing, gang violence, and murder. This prosecution ensures that Brown and Rodriguez will no longer be able to do so. We will continue to be relentless in working to make our communities safer by investigating and prosecuting gang violence.”
According to the allegations in the Indictment and the evidence presented in court during the trial:
Between 2011 and 2016, BROWN and RODRIGUEZ were members of Sex Money Murder, a gang that operates mainly in and around several housing developments in the Bronx, New York. Sex Money Murder (“SMM”) members enriched themselves by selling drugs, such as crack cocaine, cocaine, heroin, and marijuana, and engaged in acts of violence, including murder. BROWN, who was a leader of Sex Money Murder, ordered the murder of fellow gang member Vincent Davis. On or about July 15, 2012, JOSNEL RODRIGUEZ and another SMM member participated in the murder of Vincent Davis, in the vicinity of 566 Pugsley Avenue, Bronx, New York, in order to maintain, and increase, their standing within SMM.
Mr. Kim thanked the Federal Bureau of Investigation and the New York City Police Department for their work on the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Margaret Graham, Brooke Cucinella, and Jordan Estes are in charge of the prosecution.
Two Individuals Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
SAN JUAN, P.R. - On June 20, 2017, a federal Grand Jury returned a 35-count indictment charging José Andrés Colón-Santos and Erika Yazmin Rosado-Matías with conspiracy to commit bank fraud, sixteen substantive counts of bank fraud, twelve counts of aggravated identity theft, and three counts of mail fraud. The indictment also includes two charges against Colón-Santos for extortion and one charge for tampering with a witness by intimidation, threats, corrupt persuasion, or misleading conduct. The United States Postal Inspection Service is in charge of the investigation.
According to the indictment, the purpose of the conspiracy was for the defendants to unlawfully enrich themselves by obtaining bank account information and personal identifying information (social security number, date of birth, address as well as credit/debit card and PIN numbers), and using that information to withdraw funds from the victims’ accounts for their own benefit and use. The ages of the victims range from 69 to 83 years old.
The indictment alleges that José Andrés Colón-Santos would obtain the names and telephone numbers of his victims from the telephone book. He identified himself as a bank fraud investigator and would then indicate to the victims that he was conducting an investigation into a suspected illegal purchase conducted at a local hardware store in excess of $1,500.00 using the victim’s bank account and bank account access devices. He would then request that the victim confirm the victim’s bank account number and personal identification information alleging that he needed that information to reverse or invalidate the suspect illegal transaction at the hardware store.
In several instances, Colón-Santos would then contact the bank to request a change of address in the victim’s account and that replacement cards be mailed to addresses controlled by him or his associates. Once Colón-Santos had received the replacement cards he would make ATM withdrawals, wire transfers, credit card payments, purchases and other transactions against the victims’ accounts. Whenever the bank account owner was a female, defendant Rosado-Matías would impersonate the bank account owner to request the change of address and replacement cards.
In other instances, Colón-Santos would instruct the victim to mail the alleged compromised credit and debit cards to addresses controlled by him or his associates, or to hand-deliver the cards to a messenger sent to the victim’s residence to pick up the card.
“Law enforcement will not stand by as criminals attempt to fleece a very vulnerable group of our community, our elders. These criminals are disrupting their lives by stealing their savings and destroying their credit through calculated and pervasive fraud schemes,” stated U.S. Attorney Rosa Emilia Rodríguez-Vélez. “I urge everyone to take steps to protect their personally identifiable information (PII) from criminals who seek illicit profits through stolen identity fraud.”
“The U.S. Postal Inspection Service has always being a strong defender of our most vulnerable citizens. We put a lot effort into fraud prevention measures; and when these criminals take advantage of our people, we work tirelessly to uncover them and bring them to justice, stated Raimundo Marrero, Postal Inspector Team Leader, Newark Division, San Juan Field Office.
If convicted, the defendants face a maximum possible sentence of incarceration of 30 years for bank fraud, and a consecutive two-year mandatory minimum sentence for aggravated identity theft. If convicted, Colón-Santos faces a maximum possible sentence of 20 years each for both the extortion and tampering with a witness charges.
The investigation was conducted by the United States Postal Inspection Service with the assistance of Puerto Rico Police Department and Homeland Security Investigations. The case is being prosecuted by AUSA Dennise N. Longo-Quiñones.
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Two Foreign Nationals Charged with Money LaunderingRead the Press Release
BOSTON - Two men were charged yesterday in federal court in Boston with money laundering in connection with an overseas undercover investigation.
Essam Sakkal, 39, a/k/a Issam Sakkal, a/k/a Esam Bzoul, a national of Cyprus, who is in U.S. custody, and his brother, Nabeel Sakkal, 24, a/k/a Traycho Marinov Mitchov, a/k/a Nabil Cieckal, a/k/a Nabil Imadein Bazul Siggal, a dual national of Cyprus and Jordan, who is a fugitive, were charged in an indictment unsealed yesterday with conspiracy to commit money laundering and money laundering.
According to court documents, on numerous occasions between 2009 and 2014, the Sakkals met with a United States undercover law enforcement agent posing as a member of a drug organization whose role it was to launder money from drug sales. It is alleged that the Sakkals laundered money given to them by the undercover agent, believing the money to be proceeds from drug sales.
The charge of conspiracy to commit money laundering and money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service's Criminal Investigations in Boston; made the announcement. Assistant U.S. Attorney John A. Capin of Weinreb’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Sentenced for Orchestrating a Nationwide Exchange Visitor Program Fraud SchemeRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama, U.S. Department of State Inspector General Steve A. Linick, and Homeland Security Special Agent in Charge Raymond R. Parmer, Jr. of the New Orleans Field Office announce that lead defendant David Marzano of Zephyr Cove, Nevada, has been sentenced to 26 months in federal prison. His prison sentence will be followed by 3 years of supervised release. Marzano was also ordered to pay restitution in the amount of $815,570.00. Marzano’s co-defendants, Laura Blair also of Zephyr Cove and Janece Burke of Deerfield, Illinois, were each sentenced to 5 years of probation. The court order Blair to pay $815,570.00, and Burke to pay $271,856.67 in restitution.
In 2002, David Marzano pled guilty in the U.S. District Court of the Northern District of Georgia to a conspiracy involving the unlawful smuggling of aliens. The conviction stemmed from a staffing agency Marzano operated in the Atlanta area that utilized an illegal alien workforce. For that offense, he was sentenced to 15 months in prison, followed by 3 years of supervised release.
After getting out of prison, Marzano began using the aliases “Paul Cohen” and “David Cole,” and started a series of new staffing agencies and shell companies based in Chicago, Illinois. At the time of his arrest Marzano was the CEO of Bullseye Jobs and the former Director of the predecessor company, Hospitality & Catering Management Services. Marzano’s adult daughter Janece Burke, a.k.a., “Paula Delaney,” “Paula Lawton,” “Jane Moore,” and “Danielle Young,” was the President of Bullseye, and Marzano’s wife Laura Blair, a.k.a., “Jean Cox,” was the company’s Marketing Director. Together, and with the assistance of others, these defendants engaged in a massive, nationwide fraud scheme designed to unlawfully profit from U.S. Department of State Exchange Visitor Programs.
As was set out in the Indictment, in 1961, Congress passed the Mutual Educational and Cultural Exchange Act of 1961. The purpose of the Act was to increase mutual understanding between people in the United States and people from other countries by means of educational and cultural exchanges that assist the U.S. Department of State in furthering the foreign policy objectives of the United States.
These educational and cultural exchanges are administered by the U.S. Department of State’s Exchange Visitor Program and governed by specific regulations set out in 22 C.F.R. Part 62. Annually, more than 275,000 foreign nationals from all over the world enter the United States through one of the Exchange Visitor Programs. These programs include the Summer Work & Travel Program (“SWT Program”) and the Intern & Training Program (“I/T Program”).Unlike the SWT Program, the I/T Program is limited to training, and is not an employment program. As such, regulations specifically prohibit employers from using I/T Program participants as substitutes for ordinary employment or work purposes. Furthermore, staffing agencies are expressly prohibited from being involved in the I/T Program.
Since the defendants were operating several staffing agencies, the only way to get organizations to sponsor I/T Program participants of the defendants’ companies was to fraudulently misrepresent the true nature of their businesses. This was primarily done via e-mail between the defendants — who operated under numerous aliases— and sponsor organizations. In addition, the defendants created various shell companies with names that closely resembled well-known corporations. One such shell company was Crowne Partnership Group, which, despite representations made by the defendants, had no association with Crowne Plaza Hotels.
As a result of their fraud scheme, more than 200 foreign nationals came to the United States believing that they would be part of the Department of State’s I/T Program. As the Court heard from victims who testified at the hearing or who submitted victim impact letters, the thousands of dollars necessary to enroll in the program and travel to the United States was a major hardship for many of the foreign victims. They believed the investment was worth it as the training received through the I/T Program would allow them to return to their home country with much better prospects for being hired as an upper-level executive in foreign-based U.S. companies. However, rather than receiving the high-level managerial training they expected, the victims were pawned off as cheap foreign labor to restaurants, hotels, and theme parks. The victims were also required to live in housing arranged by the defendants’ companies. The businesses where the victims worked paid Marzano directly, but the victims only received a small portion of the wages they earned.
On May 12, 2015, David Marzano and Laura Blair were arrested at Tampa International Airport. Janece Burke was arrested that same morning in Deerfield, Illinois. Contemporaneous with the arrests, multiple search warrants were executed in Florida and Nevada.On June 22, 2015, Janece Burke pled guilty to conspiring with Marzano and Blair to commit wire and mail fraud. Thereafter, Burke began cooperating with the United States. Laura Blair pled guilty to the conspiracy charge on April 4, 2016. That same day, David Marzano pled guilty to the conspiracy charge, as well as a charge for substantive wire fraud, and began cooperating with the United States as well. The extensive cooperation by both Burke and Marzano has led to various administrative and criminal actions related to other fraud schemes within the I/T Program and other State Department initiatives.
Acting United States Attorney Steve Butler lauded the extensive partnership between the Department of State Office of Inspector General and the Mobile Office of Homeland Security Investigations in shutting down this major fraud scheme. “The defendants falsely and fraudulently misrepresented the nature of their businesses, which caused real harm to over two hundred victims across the world,” said Acting U.S. Attorney Butler. “These were vulnerable victims who believed they were coming to the United States to receive high-level training, but who were unfortunately subject to a cruel bait-and-switch. My office will continue to aggressively prosecute those who seek to defraud vulnerable victims.”
Inspector General Steve A. Linick commended the work of those involved in investigating the case from the Office of Inspector General for the U.S. Department of State. “We are proud to have played a key role in investigating and bringing to justice those who exploit U.S. Department of State programs, such as these, for personal gain.”
Homeland Security Investigations Special Agent in Charge Ray Parmer stated, “Mail and wire fraud can have a devastating impact on victims. In this case, people expected to come to this country legally and get training and experience. However, the greed of these three individuals turned trusting people into cheap foreign labor. HSI will continue to work with our partner law enforcement agencies to ensure we bring those guilty of committing these crimes to justice.” The New Orleans Field Office, run by Special Agent in Charge Parmer, is responsible for criminal investigations in Alabama, Arkansas, Louisiana, Mississippi, and Tennessee.
This matter was jointly investigated by the U.S. Department of State – Office of Inspector General and HSI-Mobile. The case was prosecuted by Assistant U.S. Attorney Christopher J. Bodnar of the U.S. Attorney’s Office for the Southern District of Alabama.
Three Belmont County residents indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Two Bridgeport, Ohio residents were arrested today after being indicted on drug charges by a federal grand jury in Wheeling on June 6, 2017, Acting United States Attorney Betsy Steinfeld Jividen announced.
Joseph Ivan Burt, age 39, and Faith Diane Leasure, age 22, were arrested on charges related to the distribution of cocaine. Both are charged with one count of “Conspiracy to Distribute Crack Cocaine,” one count of “Aiding and Abetting the Distribution of Crack Cocaine,” one count of “Aiding and Abetting Distribution of Crack Cocaine,” and one count of “Aiding and Abetting Distribution of Crack Cocaine within 1,000 feet of a school.” Burt is also facing one count of “Distribution of Crack Cocaine within 1,000 feet of a school,” one count of “Unlawful Use of a Communication Facility,” and an additional count of “Aiding and Abetting Distribution of Crack Cocaine within 1,000 feet of a school.”
Also named in the indictment is Phillip Weir, of Bridgeport, Ohio, age 32. Weir is charged with one count of “Conspiracy to Distribute Crack Cocaine,” and one count of “Aiding and Abetting Distribution of Crack Cocaine within 1,000 feet of a school.”The crimes are alleged to have occurred from August to September of 2016 in Ohio County.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Ohio Valley Drugs & Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U. S. Magistrate Judge James E. Seibert presided.
Taunton Woman Pleads Guilty to Social Security and Housing Assistance FraudRead the Press Release
BOSTON – A Taunton woman pleaded guilty in federal court in Boston today to concealing information and making false statements in order to receive Social Security disability benefits and Section 8 housing assistance to which she was not entitled.
Marisha Ebanks, 40, pleaded guilty to one count of Supplemental Security Income fraud and one count of making false statements. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Sept. 20, 2017.
In 1999, Ebanks began receiving housing assistance payments from the United States Department of Housing and Urban Development’s Section 8 Housing Choice Voucher Program; and in January 2003, she began receiving Supplemental Security Income (SSI) disability benefits from the Social Security Administration (SSA). Eligibility for both Section 8 housing and SSI is based, in part, on the applicant having limited income and resources. In assessing a married individual’s eligibility for these benefits, the income of the applicant’s spouse is considered if they live together.
When Ebanks applied for SSI benefits in September 2002, she truthfully reported that she was married, but falsely stated that she and her husband had separated years prior, when, in fact, she and her husband were living together with their two children. SSA sent Ebanks annual reminders of her obligation to report any changes in her household composition, including any change in income of any household member, but Ebanks concealed her husband’s true residence. During an eligibility redetermination with SSA in October 2010, Ebanks continued to report that she was married, but falsely stated her husband was not a member of her household.
Similarly, in May 2002, in order to continue receiving Section 8 housing, Ebanks falsely reported that her husband had moved out of her residence. She repeatedly omitted her husband from the list of household members on recertification questionnaires in subsequent years, and she falsely stated that no member of her family received income from any employment, even though her husband was working.
Ebanks fraudulently received approximately $70,655 in disability benefits and over $120,000 in Section 8 housing assistance benefits.
Acting United States Attorney William D. Weinreb; Adam Schneider, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Weinreb’s Major Crimes Unit is prosecuting the case.
Taunton Man Sentenced for Heroin TraffickingRead the Press Release
BOSTON – A Taunton man was sentenced today in federal court in Boston for his role in a heroin and fentanyl trafficking operation in Taunton and surrounding communities.
Jorge Vega, 42, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 77 months in prison and three years of supervised release. In January 2017, Vega pleaded guilty to conspiracy to possess with the intent to distribute and distribution of heroin and fentanyl.
In October 2015, Vega was arrested and charged along with 24 others in connection with a heroin trafficking ring operating in southeastern Massachusetts. An additional defendant was added in a superseding indictment filed on April 20, 2016. The charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Marshfield, Fall River, Taunton, and surrounding communities, which have seen a steep increase in overdoses and related deaths since 2013. Vega bought heroin on many occasions both for his own use and to sell to others.
Twenty-two of the 26 defendants charged in the superseding indictment have pleaded guilty and 13, including Vega, have been sentenced.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Thomas E. Kanwit and Karen Beausey of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
St. Clair County Woman Indicted for Arson OffenseRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that a St. Clair County woman was indicted on June 20, 2017 for an arson offense.
Lori M. Jones, 49, of East St. Louis, was charged in a one-count indictment charging arson. The indictment alleges that on May 31, 2016, Jones maliciously damaged by fire the Cahokia Nursing and Rehabilitation Center in Cahokia, IL. Jones made her initial appearance in federal court on June 22, 2017. At that hearing, Jones was released on bond pending a July 31, 2017 jury trial. Special conditions of Jones’s bond are that she be placed on electronic monitoring and that she cannot be employed by a nursing home, assisted care facility or in any capacity in which she assists or takes care of other individuals.
The arson offense carries a mandatory minimum penalty of five years imprisonment up to a maximum of 20 years imprisonment, to be followed by up to three years of supervised release and a fine up to $250,000.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco and Firearms with assistance from the Office of the Illinois State Fire Marshal.
Squirrel Hill Restaurant and Owner Sentenced for Unfair Labor PracticesRead the Press Release
PITTSBURGH – Sun Penang, Inc., a Pittsburgh restaurant and itsOwner have been sentenced in federal court on a conviction of falsifying, concealing, or covering up by trick, scheme, or device a material fact, and, on behalf of the business, on willfully violating the Fair Labor Standard Act, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Hsiao Yen Wu, a/k/a Sophia Wu, age 40, of Pittsburgh and Sun Penang, Inc., located at 5829 Forbes Avenue, Pittsburgh. Wu was sentenced to three years probation to include eight months of home detention. Both Wu and Sun Penang were ordered to pay restitution of $35,388.97 joint and severally.
According to information presented to the court, after Sun Penang had agreed to pay back wage payments, Wu represented that Sun Penang had issued all back wage payments checks and provided faxed copies of these checks to the Department of Labor. However, Wu knew that the employees were not paid back wage payments because these employees were required either to deposit the checks into Wu's personal bank account or to work without pay until Sun Penang recouped the wages. Sun Penang failed to pay minimum wages and overtime pay to their employees from January 1, 2013 to December 31, 2013.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Department of Labor, Office of Inspector General and the Wage and Hour Division for the investigation leading to the successful prosecution of Wu and Sun Penang, Inc.
Six Co-Conspirators of Loren Toelle Drug Trafficking Organization Sentenced to PrisonRead the Press Release
COEUR D'ALENE – Six co-conspirators of the Loren Toelle drug trafficking organization were sentenced Tuesday and Wednesday to prison on drug trafficking and money laundering charges, Acting U.S. Attorney Rafael Gonzalez announced. The sentences were part of a significant drug investigation and prosecution under the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The sentences were handed down by Chief U.S. District Judge B. Lynn Winmill.
Co-conspirators William Jaquett Barker, 31, of Williston, North Dakota; Sean Lee Jackson, 28, of Las Vegas, Nevada; Steven Wayne Jackson, 31, of Las Vegas, Nevada; Kristin Rene Wilson, 28, of Riverside, California; and Augustine Jackson, 32, of Williston, North Dakota, were sentenced on their guilty pleas to conspiracy to distribute controlled substances. Sean Jackson and Kristin Wilson also pled guilty to conspiracy to launder money. Sherlann Simon, 34, of North Las Vegas, Nevada, was sentenced for her guilty plea to conspiracy to launder money.
Barker was sentenced to 24 months in prison, three years supervised release and ordered a $2,000 fine. Judge Winmill also ordered Barker to forfeit $100,000 in cash proceeds. According to his plea agreement, Barker admitted that he and others agreed to distribute controlled substances in Idaho and elsewhere. Although the conspiracy lasted from at least 2009 until the arrests on February 4, 2016, Barker did not join the conspiracy until 2015. Barker maintained a residence in North Dakota where a member of the conspiracy came to sell heroin and oxycodone. Barker also admitted that he helped conceal, transport and sell controlled substances during his involvement.
Sean Jackson, Loren Toelle’s son, was sentenced to 96 months in prison, four years of supervised release and ordered to forfeit $555,000 in drug profits and $51,656.10 for his part in the money laundering conspiracy. According to his plea agreement, Jackson was an integral member of the DTO from 2009 until his arrest in 2016. He admitted that he and others agreed to distribute controlled substances in Idaho and elsewhere. Jackson also admitted helping launder proceeds for the DTO by depositing drug proceeds into bank accounts, as well as Money Tree or MoneyGram accounts, in an attempt to hide the money or to make it appear it was from a legitimate source.
Augustine Jackson, Loren Toelle’s daughter, was sentenced to 80 months in prison, three years supervised release and ordered to forfeit $154,089.03 in cash proceeds. According to her plea agreement, Augustine Jackson was a member of the DTO from 2009 until her arrest in 2016. She admitted that she and others agreed to distribute controlled substances in Idaho and elsewhere.
Sherlann Simon, another daughter of Loren Toelle, was sentenced to 15 months in prison, three years supervised release and ordered to forfeit $462,639.17 in cash proceeds. According to her plea agreement, Simon became a member of the DTO in 2010 and helped launder money for the DTO by depositing money she knew was from illegal drug sales into her personal and business accounts to conceal its true source.
Steven Jackson, another son of Loren Toelle, was sentenced to 41 months in prison, three years supervised release and ordered to forfeit $355,000 in cash proceeds. According to his plea agreement, Jackson became a member of DTO around 2010 until his arrest in 2016. He admitted that he and others agreed to distribute controlled substances in Idaho and elsewhere.
Kristin Wilson was sentenced to 108 months in prison, four years supervised release and ordered to forfeit $434,305.00 of drug profits and $154,089.03 for her part in the money laundering conspiracy. According to her plea agreement, Wilson was a member of the DTO from 2009 until her arrest in 2016. She admitted that she agreed to distribute controlled substances in Idaho and elsewhere, and helped launder proceeds for the DTO by depositing drug proceeds into bank accounts, as well as Money Tree or MoneyGram accounts, in an attempt to hide the money or to make it appear it was from a legitimate source.
Loren Toelle, the organizer and leader of the organization, pleaded guilty to conspiracy to distribute controlled substances and launder money. On May 2, 2017, she was sentenced to 212 months in prison.
The case is a result of a joint investigation and cooperative law enforcement efforts of the Organized Crime and Drug Enforcement Task Force. The OCDETF program is a federal multi-agency, multi-jurisdiction task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.
Several federal, state and local agencies participated in the investigation and prosecution: the FBI North Idaho Violent Crime Task Force, consisting of the FBI, the Coeur d’Alene Police Department, the Kootenai County Sheriff’s Office, and the Post Falls Police Department; the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigation (IRS-CI), the U.S. Marshals Service and the Department of Homeland Security. Other agencies involved included the Williston, North Dakota, Police Department; the United States Attorney’s Offices in the Districts of Nevada and North Dakota; the Williams County Sheriff’s Office in South Dakota; the U.S. Border Patrol; the North Dakota Bureau of Criminal Investigation; the Northwest Narcotics Task Force; and the Washington State Patrol.
Sex Offender Sentenced to 16 Years in Prison for Child Enticement OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRYAN WHITE, 40, of New London, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 198 months of imprisonment, followed by a lifetime of supervised release, for attempting to entice a minor to engage in illegal sexual activity.
According to court documents and statements made in court, in June and July 2016, WHITE used a cellular phone and Chat Bazaar, a video chatting service, to communicate with a 13-year-old female in New Jersey. In text messages, the minor victim repeatedly told WHITE her age. WHITE responded by saying that “age is just a number to deny u things” and that he is a “child lover.” The text exchanges with the victim were sexually explicit, and WHITE requested that the victim travel from New Jersey to Connecticut to engage in sexual activity with him.
On June 16, 2016, the victim’s father discovered the texts with WHITE on the victim’s phone and reported it to local police. A law enforcement officer then assumed the minor’s identity to continue to correspond with WHITE. Between June 29 and July 5, 2016, WHITE repeatedly asked the undercover officer, posing as the victim, to come to Connecticut and described the sexual activity he wanted to engage in with the victim. The undercover officer agreed to take a bus from New Jersey to Connecticut. WHITE explained that he would be at the bus terminal wearing a yellow “MICHIGAN” shirt and that he would bring condoms and pina colada wine coolers to the bus station.
On July 5, 2016, WHITE was arrested at the New London bus station at the designated time wearing the clothes that he said he would be wearing. At the time of his arrest, WHITE was in possession of a condom and two bottles of alcoholic beverages.
In 2004, WHITE was convicted in state court of risk of injury based on his conduct in approaching two children who were walking to their aunt’s house in Waterbury and asking them if he could see one of them naked. A few months later, during his participation in a sex offender evaluation, WHITE disclosed that he sexually assaulted a nine-year-old boy on multiple occasions over a four-month period. He was convicted of sexual assault in the first degree and received a sentence of 12 years of incarceration. WHITE was released from prison in November 2015 and, from December 10, 2015 until April 4, 2016, he resided at an inpatient sex offender treatment facility. He was then transferred to a residential program and, while under court supervision, began communicating with the minor victim.
WHITE has been detained since his arrest on July 5, 2016. On February 22, 2017, he pleaded guilty to one count of attempted enticement of a minor to engage in unlawful sexual activity.
This matter was investigated by Homeland Security Investigations, the Burlington County (N.J.) Prosecutor’s Office, the Florence (N.J.) Township Police Department, the New London Police Department and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Seven Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging MARTIN CABALLERO-CABALLERO, age 59, of Mexico, FEDERICO ESPINDOLA-PINEDA, age 42, of Mexico, JOSE HUMBERTO ESPINOZA-EGUIA, age 36, of Mexico, RICARDO GOMEZ-GONZALEZ, age 34, of Mexico, ESNANONAM MATUTE-MATUTE, age 29, of Honduras, ROSALINDO RIOS-MARTINEZ, age 35, of Mexico, and LUIS ROSAS, age 38, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, ESPINDOLA-PINEDA, ESPINOZA-EGUIA, and MATUTE-MATUTE, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
CABALLERO-CABALLERO and RIOS-MARTINEZ are alleged to have been previously deported subsequent to a felony conviction (illegal reentry of a deported alien, and trafficking cocaine, respectively). Therefore, if convicted, they each would face a maximum term of imprisonment of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
GOMEZ-GONZALEZ and ROSAS are alleged to have been previously deported subsequent to an aggravated felony conviction (possession with intent to distribute marijuana, and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, respectively). Therefore, if convicted, they each would face a maximum term of imprisonment of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security.
Sentencings for June 16 - June 22, 2017Read the Press Release
Jose Chavez-Barragan, 29, of Cotija, Michoacan, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 22, 2017, for illegal re-entry of a previously deported alien into the United States. Chavez-Barragan was arrested in Cheyenne, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Leonardo Leon-Jaime, 34, of Cueramero, Guanajuato, Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 22, 2017, for illegal re-entry of a previously deported alien into the United States. Leon-Jaime was arrested in Cheyenne, Wyoming. He received nine months of imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Edwin de Jesus Roque-Toledo, 28, of Pijijapan, Chiapas, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 22, 2017, for illegal re-entry of a previously deported alien into the United States. Roque-Toledo was arrested in Cheyenne, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
William Jay Lonebear, 62, of Arapahoe, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 20, 2017, for theft of personal property. Lonebear was arrested in Riverton, Wyoming. He received time served, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $64,879.99 in restitution. This case was investigated by the Bureau of Indian Affairs.
Martin Patrick Stenger, 62, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 19, 2017, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and for possession of a firearm in furtherance of a drug trafficking crime. Stenger received 181 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and $500.00 in restitution. This case results from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Laramie Police Department, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Cynthia Julissa Lemus, 32, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 16, 2017, for conspiracy to distribute a mixture or substance containing a detectable amount of methamphetamine. Lemus was arrested in Gillette, Wyoming. She received 46 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Gillette Police Department, the Campbell County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sacramento Woman Sentenced to over 4 Years in Prison for Aggravated ID Theft and Using Methamphetamine While in CustodyRead the Press Release
SACRAMENTO, Calif. — Shellby Leeanna Moore, 30, of Sacramento, was sentenced today by U.S. District Judge Morrison C. England Jr. to four years and two months in prison for aggravated identity theft and possession of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, while Moore was in custody with charges pending for identity theft, she obtained and used methamphetamine. On March 16, 2017, Moore pleaded guilty to stealing identities of Sacramento County residents and possessing methamphetamine.
According to court documents, Moore and co-defendant Trevor Lichnock-Gembe, 29, of Sacramento, obtained stolen mail and used the personal information of victims to open checking and savings accounts and to obtain debit cards. After opening the accounts, the defendants used them to deposit stolen, counterfeit, and altered checks. Surveillance cameras at various locations showed the defendants opening accounts and making phony deposits at banks, making purchases with the fraudulent debit cards, and breaking into mail boxes at apartment complexes.
On April 20, 2016, law enforcement agents conducted a probation search where Moore lived with Lichnock-Gembe. Inside the residence, officers seized stolen property, stolen credit and debit cards, stolen identifications, passports, and stolen U.S. mail.
On April 6, 2017, Judge England sentenced co-defendant Lichnock-Gembe to four years and 10 months in prison for bank fraud, aggravated identity theft, and unlawful possession of identification documents. The attempted loss exceeded $126,879, and both defendants were ordered to pay restitution for the actual loss of $71,960. The defendants stole mail from over 700 different victims in the greater Sacramento Metropolitan area.
This case was the product of an investigation by the United States Postal Inspection Service with assistance from the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Michelle Rodriguez prosecuted the cases.
Rock Hill Man Sentenced on Federal Firearm and Ammunition ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Travis Daniel Smith, age 29, of Rock Hill, South Carolina, was sentenced after earlier pleading guilty in federal court to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i), and possession with intent to distribute a quantity of marijuana, in violation of Title 21, United States Code, Section 841(b)(1)(D). Senior United States District Judge Cameron Currie sentenced Smith to 72 months imprisonment with 5 years of federal supervised release to follow.
Evidence presented at the earlier change of plea hearing established that on April 7, 2016, Smith attempted to allude officers of the Rock Hill Police Department during a routine traffic stop. Evidence showed that Smith first led officers on a short car-chase and later left his vehicle to flee on foot. During the foot-chase, officers observed Smith abandoning a Diamondback .380 caliber pistol. Once officers were able to detain Smith, they discovered a bag of marijuana and a digital scale on his person. Smith is prohibited under federal law from possessing firearms based upon his prior state convictions and adjudications for assault and battery of a high and aggravated nature, possession with intent to distribute crack cocaine and unlawful carrying of a pistol.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rock Hill Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Alyssa L. Richardson of the Columbia office handled the case.
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Reminder Regarding EOIR’s Fraud and Abuse Prevention ProgramRead the Press Release
FALLS CHURCH, VA – As applications for relief or protection from removal rise in immigration proceedings, the Executive Office for Immigration Review (EOIR) reminds the public of the role of EOIR’s Fraud and Abuse Prevention Program in safeguarding the validity of those proceedings and of the need for vigilance in combating immigration fraud.
"Application and benefit fraud in immigration proceedings undermines the overall integrity of the immigration law system, places unwarranted burdens on taxpayers, and puts public safety and national security at risk,” said Acting Director James McHenry. “Every fraudulent application further burdens a system already facing a critical backlog, and EOIR is committed, through its Fraud and Abuse Prevention Program, to identifying and addressing fraud in the immigration system."
EOIR's Fraud and Abuse Prevention Program was created as a result of a directive in 2006 by then-Attorney General Alberto Gonzales. By regulation, EOIR’s General Counsel has designated an anti-fraud officer to:
(i) Serve as a point of contact relating to concerns about possible fraud upon EOIR, particularly with respect to matters relating to fraudulent applications or documents affecting multiple removal proceedings, applications for relief from removal, appeals, or other proceedings before EOIR;
(ii) Coordinate with investigative authorities of the Department of Homeland Security, the Department of Justice, and other appropriate agencies with respect to the identification of and response to such fraud; and
(iii) Notify the EOIR disciplinary counsel and other appropriate authorities with respect to instances of fraud, misrepresentation, or abuse pertaining to an attorney or accredited representative.
Since 2006, EOIR’s Fraud and Abuse Prevention Program has handled more than 700 cases. It works closely with other agencies to investigate fraud in all forms and to refer cases for criminal prosecution if warranted. It also coordinates with EOIR’s Attorney Discipline Program to seek discipline of attorneys or accredited representatives who commit, enable, or induce fraud.
It provides extensive training to EOIR personnel on identifying and reporting fraud. For the public, it operates a dedicated fraud hotline at 877-388-3840 and accepts email referrals at [email protected]. More information about this program may be found in the Program’s factsheet.
https://www.justice.gov/eoir/page/file/eoirfraudprogramfactsheetjune2017/download
Psychologist George E. Compton Jr. of Sturgis Pleads Guilty to Health Care FraudRead the Press Release
Compton Billed Insurers for Numerous Counseling Sessions that he did not Provide
GRAND RAPIDS, MICHIGAN —Acting U.S. Attorney Andrew Byerly Birge announced that George E. Compton, Jr., 63, of Sturgis, Michigan, pled guilty today in federal court to a felony information charging him with executing a health care fraud scheme from at least January 1, 2013, until June 30, 2016. Compton will be sentenced at a date to be determined by the court, at which time he will face a maximum prison term of 10 years, a fine of up to twice the amount of the gross gain from his fraud, and he will be ordered to make restitution to his victims.
According to court records, Compton defrauded health care benefit programs of at least $250,000.00. As part of the scheme to defraud, Compton established legitimate relationships with numerous patients, provided periodic counseling sessions to his patients, and billed their health care benefit programs. However, after establishing these relationships, Compton regularly billed his patients’ health care benefit programs for counseling sessions that grossly exceeded the number of actual counseling sessions that he provided. When his patients or the health care benefit programs occasionally detected his excess billings, Compton furthered his scheme to defraud by falsely claiming that the billings were the result of an honest mistake or the automated billing functions of his billing software and he reimbursed the health care benefit program for the over-payment. Additionally, when audited by one of the health care benefit programs, Compton further carried out the scheme to defraud by providing the health care benefit program with fake patient counseling notes in an attempt to make it appear as if he actually provided counseling sessions on dates that he knew he had previously submitted false billing. On at least one occasion, he billed for counseling sessions that he claimed occurred at his Coldwater office despite the fact that he was actually in Pittsburgh, Pennsylvania. On another occasion, he billed for counseling sessions for a patient that was actually hospitalized in an induced coma and later homebound.
"Unfortunately, this case represents yet another example of how some health care professionals allow their own greed to lead them down the path of defrauding health care benefit programs and ultimately harming consumers of health insurance," said Birge. "My office will continue to vigorously prosecute those who commit health care fraud against private or public health insurance plans."
"Today’s guilty plea should serve as a warning that those who place their own greed for profits above honest billing practices will be identified and prosecuted," said David P. Gelios Special Agent in Charge, Detroit Division of the FBI.
The case was investigated by the Kalamazoo office of the FBI and is being prosecuted by Assistant U.S. Attorney Ronald M. Stella.
END
Postal Employee Pleads Guilty to Stealing MailRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a U.S. Postal employee pleaded guilty in federal court today to stealing mail.
Terry G. Williams, 55, of Kansas City, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Beth Phillips to a federal information that charges him with theft of mail by a Postal Service employee.
Williams, a postal support employee at the Processing and Distribution Center in Kansas City, Mo., admitted that he stole such items as greeting cards, gift cards and Netflix DVDs between April 4, 2015, and April 26, 2016. Williams pulled those items from the trays of letter mail he was loading to be processed.
Federal agents watched Williams pull out colored envelopes from the trays and place them in his pockets and into a personal bag that was underneath his work station. When agents approached him at the end of his shift, he dropped the bag on the ground and ran away from the agents. Agents chased Williams, tackled him to the ground and handcuffed him.
Agents seized Williams’s bag, which contained 232 greeting cards. They also seized two gift cards from Williams. Inside the trunk of his vehicle, agents found 104 greeting cards, 34 Netflix DVD mailings and three gift cards.
Under federal statutes, Williams is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the U.S. Postal Service, Office of Inspector General.
Physician Pleads Guilty to Accepting Kickbacks and Failing to Remit Employment TaxesRead the Press Release
JOHNSTOWN, Pa. – A pain management doctor who owned and operated a group of pain management clinics within the Western District of Pennsylvania, pleaded guilty in federal court to accepting kickbacks in connection with a clinical drug testing referral scheme operated by Universal Oral Fluid Labs (UOFL), of Greensburg, Pennsylvania, Acting United States Attorney Soo C. Song announced today.
Dr. John H. Johnson, 55, of Hollidaysburg, Pa., pleaded guilty before U.S. District Judge Kim R. Gibson to an information charging him with conspiracy to violate the Anti-Kickback Statute, and Count One of an indictment charging him with willfully failing to remit employment taxes.
In connection with Dr. Johnson’s guilty plea for conspiracy to violate the Anti-Kickback Statute, the court was informed that from in or around May, 2011, and continuing until at least November, 2013, Johnson accepted at least $2.3 million in kickbacks in return for referring patients, including Medicare and Medicaid patients, to UOFL for clinical drug testing and drug screening. UOFL then received millions of dollars from third party payors, including approximately $3,443,528 from Medicare and $1,147,768 from Pennsylvania Medicaid, based on Johnson’s referrals.
In connection with Dr. Johnson’s guilty plea to willfully failing to remit employment taxes, the court was informed that from on or about July 1, 2013 to on or about September 30, 2013, Johnson failed to truthfully account for and pay over to the Internal Revenue Service (IRS) all of the federal income taxes withheld and Federal Insurance Contributions Act (FICA) taxes due and owing to the United States on behalf of Johnson’s company, Central Anesthesia, and its employees. Johnson is responsible for repayment to the IRS of more than $700,000 as a result of his unlawful tax practices.
“A physician’s decisions about what medical care to provide, and who will provide it, should be based upon the best interests of their patients, rather than a physician’s financial interests,” said Acting U. S. Attorney Soo C. Song. “The defendant who pleaded guilty today abused his position of trust by accepting kickbacks for referring his patients to UOFL, and by failing to meet his tax obligations.”
“Once again this demonstrates the effective cooperation we maintain with our federal, state and local law enforcement partners whether it be white collar crimes, drugs or violent crime” said Robert Johnson, Special Agent in Charge of the Federal Bureau of Investigation’s Pittsburgh Division.
“Criminal kickback schemes destroy trust in health care decision-making and lead to increased costs to our Federal health care benefit programs,” said Nick DiGiulio, Special Agent in Charge of the Inspector General's Office for the United States Department of Health and Human Services in Philadelphia. “We will continue to work with our partners to expose corrupt business arrangements in the health care industry.”
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service," said Acting Special Agent in Charge Greg Floyd. "The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
Judge Gibson scheduled sentencing for October 11, 2017 at 11:00 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $260,000, 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 Attorneys Stephanie L. Haines and Colin J. Callahan are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, the Internal Revenue Service Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted the investigation that led to the prosecution of Dr. Johnson.
Philadelphia Man Charged with Illegal Reentry After DeportationRead the Press Release
Julio Vicente-Rios, a/k/a “Julio V. Rios,” a/k/a “Pablo Reyes-Ortiz,” of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about December 2, 2016, Vicente-Rios, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about February 15, 2008, and December 29, 2008.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Jason P. Bologna.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy owner and director of compliance charged with defrauding United States and distributing adulterated drugsRead the Press Release
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today the owner and director of compliance of an Indiana compounding pharmacy were charged criminally in connection with their distribution of over- and under-potent drugs, and defrauding the United States by interfering with and obstructing the lawful functions of the Food and Drug Administration (FDA).
Paul J. Elmer, 64, of Fishers, Indiana, and Caprice R. Bearden, 62, of Carmel, Indiana, were charged in a 10-count indictment with one count of conspiracy to defraud the United States, three counts of distributing an adulterated drug in interstate commerce and six counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Elmer was arrested yesterday and had his initial court appearance in U.S. District Court in the Southern District of Indiana where he pleaded not guilty and was released under conditions imposed by the Court. Bearden was issued a summons to appear before the court. Trial has been scheduled for August 21, 2017 at 9:00 a.m.
“These defendants put greed and the reputation of their company ahead of the health and safety of our most innocent victims,” said Minkler. “Their actions put lives in danger and they will be held accountable.”
“The distribution of over- and under-potent drug products poses a serious risk of harm to patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “FDA’s efforts to ensure the safety of compounded drugs is critically important. Impeding FDA’s ability to do its job and uncover these types of safety concerns will not be tolerated. The Justice Department is committed to working with FDA to protect patients and ensure compounded drugs are safe.”
Elmer owned and was the President of Pharmakon Pharmaceuticals Inc. (Pharmakon), and Bearden was the company’s Director of Compliance. Pharmakon compounded drugs at a facility in Noblesville, Indiana for customers in Indiana and many other states.
The indictment alleges that from July 2013 through mid-February 2016, Bearden received approximately 70 potency test failure notices from companies used by Pharmakon to test for potency, indicating that drugs such as morphine sulfate and fentanyl were either under- or over-potent. According to the indictment, Bearden discussed the out-of-specification test results with Elmer, a licensed pharmacist, and until Pharmakon compounded over-potent morphine sulfate in February 2016, Elmer determined that Pharmakon should not contact any individuals or entities – including hospitals – who received the drugs, nor conduct any product recalls before FDA intervention.
On several occasions, according to the indictment, infants were injected with drugs compounded by Pharmakon that were significantly over-potent. For example, the indictment alleges that in early February 2016, Pharmakon distributed over-potent morphine sulfate, an opioid typically used for relief of moderate to severe acute and chronic pain, to a hospital in Indiana and a hospital in Illinois. As alleged in the indictment, three infants at the hospital in Indiana received the morphine sulfate which was nearly 25 times the strength indicated on its label, and one infant was taken by emergency helicopter to a nearby children’s hospital.
Further, as alleged in the indictment, during FDA inspections of Pharmakon in 2014 and 2016, Bearden lied about Pharmakon’s never having received any out-of-specification drug potency test results. According to the indictment, Elmer learned of Bearden’s lies during or shortly after the FDA’s inspections and took no action to correct her and to inform the FDA of the extent of Pharmakon’s drug potency failures. The indictment alleges further that Elmer and Bearden conspired to defraud the United States by interfering with and obstructing the lawful functions of the FDA, and obstructing, influencing and impeding FDA inspections. In addition, as alleged, during the 2016 inspection, Elmer directed at least one Pharmakon employee to backdate batch records of compounded drugs.
“Companies that do not meet federal manufacturing standards, especially when dealing with highly potent drugs like fentanyl meant for vulnerable populations, put the health and safety of American consumers at great risk,” said FDA Commissioner Scott Gottlieb, M.D. “The FDA and our Office of Criminal Investigations will continue to pursue and help bring to justice those companies who put the public health at risk.”
According to the indictment, during two inspections of Pharmakon in 2014, FDA observed conditions that did not comply with FDA regulations. The indictment alleges that Elmer and Bearden failed to investigate the root causes of the drug potency failures and otherwise failed to make changes in Pharmakon’s compounding operations to reduce the incidence of these failures. Instead, as alleged in the indictment, under the direction and supervision of Elmer and Bearden, Pharmakon continued to distribute under- and over-potent drugs, shipping these drugs before receiving the potency test results.
The conspiracy charge carries a statutory maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense. The charges of distributing an adulterated drug in interstate commerce and adulterating drugs while held for sale after shipment of a drug component in interstate commerce each carry a statutory maximum punishment of one year in prison and a fine of $100,000 or twice the gross gain or gross loss from the offense.
Acting Assistant Attorney General Readler and U.S. Attorney Minkler commended the FDA Office of Criminal Investigations, which conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Cindy J. Cho, of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana, visit its website at https://www.justice.gov/usao-sdin.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.###
Pharmacy Owner and Director of Compliance Charged with Defrauding United States and Distributing Adulterated DrugsRead the Press Release
The owner and director of compliance of an Indiana compounding pharmacy were charged criminally in connection with their distribution of over- and under-potent drugs, and defrauding the United States by interfering with and obstructing the lawful functions of the Food and Drug Administration (FDA), the Department of Justice announced today.
Paul J. Elmer, 64, of Fishers, Indiana, and Caprice R. Bearden, 62, of Carmel, Indiana, were charged in a 10-count indictment with one count of conspiracy to defraud the United States, three counts of distributing an adulterated drug in interstate commerce and six counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Elmer was arrested yesterday and had his initial court appearance in U.S. District Court in the Southern District of Indiana where he pleaded not guilty and was released under conditions imposed by the Court. Trial has been scheduled for Aug. 21 at 9 a.m.
“The distribution of over- and under-potent drug products poses a serious risk of harm to patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “FDA’s efforts to ensure the safety of compounded drugs is critically important. Impeding FDA’s ability to do its job and uncover these types of safety concerns will not be tolerated. The Justice Department is committed to working with FDA to protect patients and ensure compounded drugs are safe.”
“These defendants put greed and the reputation of their company ahead of the health and safety of our most innocent victims,” said U.S. Attorney Josh Minkler for the Southern District of Indiana. “Their actions put lives in danger and they will be held accountable.”
Elmer owned and was the President of Pharmakon Pharmaceuticals Inc. (Pharmakon), and Bearden was the company’s Director of Compliance. Pharmakon compounded drugs at a facility in Noblesville, Indiana for customers in Indiana and many other states.
The indictment alleges that from July 2013 through mid-February 2016, Bearden received approximately 70 potency test failure notices from companies used by Pharmakon to test for potency, indicating that drugs such as morphine sulfate and fentanyl were either under- or over-potent. According to the indictment, Bearden discussed the out-of-specification test results with Elmer, a licensed pharmacist, and until Pharmakon compounded over potent morphine sulfate in February 2016, Elmer determined that Pharmakon should not contact any individuals or entities – including hospitals – who received the drugs, nor conduct any product recalls before FDA intervention.
On several occasions, according to the indictment, infants were injected with drugs compounded by Pharmakon - that were significantly over-potent. For example, the indictment alleges that in early February 2016, Pharmakon distributed over potent morphine sulfate, an opioid typically used for relief of moderate to severe acute and chronic pain, to a hospital in Indiana and a hospital in Illinois. As alleged in the indictment, three infants at the hospital in Indiana received the morphine sulfate which was nearly 25 times the strength indicated on its label, and one infant was taken by emergency helicopter to a nearby children’s hospital.
Further, as alleged in the indictment, during FDA inspections of Pharmakon in 2014 and 2016, Bearden lied about Pharmakon’s never having received any out-of-specification drug potency test results. According to the indictment, Elmer learned of Bearden’s lies during or shortly after the FDA’s inspections and took no action to correct her and to inform the FDA of the extent of Pharmakon’s drug potency failures. The indictment alleges that Elmer and Bearden conspired to defraud the United States by interfering with and obstructing the lawful functions of the FDA, and obstructing, influencing and impeding FDA inspections. In addition, as alleged, during the 2016 inspection, Elmer directed at least one Pharmakon employee to backdate batch records of compounded drugs.
“Companies that do not meet federal manufacturing standards, especially when dealing with highly potent drugs like fentanyl meant for vulnerable populations, put the health and safety of American consumers at great risk,” said FDA Commissioner Scott Gottlieb, M.D. “The FDA and our Office of Criminal Investigations will continue to pursue and help bring to justice those companies who put the public health at risk.”
According to the indictment, during two inspections of Pharmakon in 2014, FDA observed conditions that did not comply with FDA regulations. The indictment alleges that Elmer and Bearden failed to investigate the root causes of the drug potency failures and otherwise failed to make changes in Pharmakon’s compounding operations to reduce the incidence of these failures. Instead, as alleged in the indictment, under the direction and supervision of Elmer and Bearden, Pharmakon continued to distribute under- and over-potent drugs, shipping these drugs before receiving the potency test results.
The conspiracy charge carries a statutory maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense. The charges of distributing an adulterated drug in interstate commerce and adulterating drugs while held for sale after shipment of a drug component in interstate commerce each carry a statutory maximum punishment of one year in prison and a fine of $100,000 or twice the gross gain or gross loss from the offense.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Acting Assistant Attorney General Readler and U.S. Attorney Minkler commended the FDA Office of Criminal Investigations, which conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Cindy J. Cho, of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.
Paramedic Pleads Guilty to Removing Liquid Fentanyl from AmbulanceRead the Press Release
BOSTON – A paramedic pleaded guilty today in federal court in Boston to diverting fentanyl intended for patients for his own use.
Joseph V. Amello, 50, of Rowley, Mass., pleaded guilty to one count of acquiring a controlled substance by deception and subterfuge and one count of tampering with a consumer product. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 28, 2017.
From approximately Nov. 15, 2014, to Aug. 7, 2015, while working as a paramedic for an ambulance company, Amello diverted over 650 vials of fentanyl. In addition, beginning on or around July 1, 2015, Amello removed fentanyl from a number of vials intended for ambulance patients and replaced the fentanyl with another solution.
The charge of acquiring a controlled substance provides for a sentence of no greater than four years in prison, one year of supervised release, and a fine of up to $250,000; and the charge of tampering with a consumer product provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Commissioner Monica Bharel, M.D., M.P.H., of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. Assistant U.S. Attorney Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Paralegal who Claimed to be Attorney Pleads Guilty to Bank FraudRead the Press Release
CINCINNATI – Grady Calhoun, 35, of Hamilton, Ohio, pleaded guilty in U.S. District Court to three counts of bank fraud related to making representations as part of his application to obtain credit cards.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jason Hayden, Acting Special Agent in Charge, announced the pleas entered into before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, on three separate occasions, Calhoun made false claims about his occupation and income. During one application process with Chase Bank, he claimed he was a partner and president of a law firm called Serdekor LLC. Serdekor LLC is an Ohio limited liability company that was created and registered by Calhoun; however, Serdekor LLC is not a law firm and the defendant is not a licensed attorney. Rather, Calhoun was employed as a paralegal at a law firm in the Southern District of Ohio.
Calhoun manipulated the payment process to Chase Bank to keep the credit card accounts open as long as possible, and owes nearly $408,000 as a result of this scheme.
He also fraudulently obtained credit card accounts at Barclay’s Bank and applied for other lines of credit with another individual’s social security number. Calhoun owes Barclay’s more than $28,000.
As part of the plea agreement, Calhoun has agreed to pay the loss amounts to both banks in restitution. Additionally, as part of the plea, the parties in this case have recommended a term of imprisonment of 15 months, followed by two years of supervised release. The Judge will consider the recommended sentence at a sentencing hearing, which is yet to be scheduled.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Assistant United States Attorney Timothy S. Mangan, who is representing the United States in this case.
# # #
Orange County Man Who Led Conspiracy that Illegally Imported and Distributed Synthetic Narcotics Sentenced to 10 Years in PrisonRead the Press Release
SANTA ANA, California – A Newport Beach man who orchestrated a wide-reaching conspiracy that smuggled, manufactured and distributed millions of dollars worth of analogue drugs which were used, among other things, to manufacture synthetic marijuana has been sentenced to 120 months in federal prison.
Sean Libbert, 41, was sentenced late last night by United States District Judge Cormac J. Carney.
According to court documents, Libbert organized and led a drug trafficking conspiracy that manufactured, marketed and sold synthetic marijuana – commonly called “spice” – under the brand name of “Da Kine Blend.” When he pleaded guilty last year, Libbert admitted that at least 100 kilograms of synthetic marijuana was manufactured using the analogue chemicals he provided, and that he knew the “spice” was being distributed for human consumption.
Libbert pleaded guilty last November to federal offenses related to the distribution of “spice.” Libbert pleaded guilty to four felony offenses: conspiring to manufacture, possess and distribute controlled substance analogues; conspiracy to smuggle controlled substance analogues into the United States; being a felon in possession of firearms and ammunition; and money laundering.
“Spice” is known as an analogue drug because its chemical composition is very similar to a controlled substance. Analogues are intended to have a substantially similar or greater physiological effect than the narcotics they mimic. Popular with teenagers and younger adults because of the cheaper cost and glossy packaging, “spice” has been linked to overdoses, serious injuries and deaths across the country. In fact, the 2014 indictment – which was the first in this district involving drug analogues – alleged that chemicals distributed by Libbert nearly killed a victim in Florida who had ingested them. Though containing THC (the active ingredient in marijuana) and despite it being commonly referred to as “fake marijuana,” “spice” is considered by scientists and health officials to be much more dangerous than marijuana because of its high potency, and because the quality and quantity of chemicals used to make the “spice” is unregulated. The chemical analogues are typically manufactured in clandestine laboratories in China.
Over the course of 16 months in 2011 and 2012, Libbert’s organization smuggled over 200 pounds of chemicals into the U.S., knowing that the drugs would be used to manufacture “spice” that was smoked or taken orally. During yesterday’s lengthy sentencing hearing, Judge Carney noted that Libbert used fraudulent documents and misbranded labels to smuggle the chemical analogues from China.
As part of the scheme, Libbert incorporated a series of companies, opened up a series of bank accounts and private mailboxes, and sold more than $5 million worth of “spice” to people across the United States, including other distributors and individual users.
Previously in this case, two other defendants pleaded guilty, including a Chinese national who sold Libbert and his associates synthetic drugs that were smuggled into the United States. Another three defendants charged in separate cases pleaded guilty to conspiring with Libbert to manufacture, possess and distribute controlled substance analogues. These other five defendants are expected to be sentenced by Judge Carney later this year.
The investigation into the analogue drug ring was conducted by the Los Angeles HIDTA (High-Intensity Drug Trafficking Area) Southern California Drug Task Force, which includes special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Drug Enforcement Administration and IRS Criminal Investigation.
In July 2012, HIDTA investigators executed a series of federal search warrants and seized several luxury vehicles, hundreds of pounds of analogues, and firearms –including a rifle, a shotgun, two pistols, and approximately 700 rounds of ammunition, all of which Libbert was prohibited from possessing as a result of three prior felony convictions, including a 2002 drug trafficking conviction.
In addition to the drug and firearms charges, Libbert also pleaded guilty to one count of money laundering stemming from his purchase of real estate in Ohio using drug proceeds. Investigators seized more than $1.1 million in assets connected to the case – including more than $700,000 in profits from the sale of Libbert’s former residence in San Juan Capistrano – all of which have been administratively forfeited to the United States.
The case is being prosecuted by Assistant United States Attorney Carol Alexis Chen of the Organized Crime Drug Enforcement Task Force.
North Carolina Man Sentenced to Four-Year Prison Term for Armed Assault at Northwest Washington Pizza RestaurantRead the Press Release
WASHINGTON – Edgar Maddison Welch, 29, of Salisbury, N.C., was sentenced today to four years in prison on charges stemming from an incident in which he carried a loaded AR-15 assault rifle and a revolver into a Northwest Washington pizza restaurant, scattering employees and customers, and fired his assault rifle into a door.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Welch pled guilty on March 24, 2017, in the U.S. District Court for the District of Columbia, to a federal charge of interstate transportation of a firearm and ammunition, and a District of Columbia charge of assault with a dangerous weapon. He was sentenced by the Honorable Ketanji Brown Jackson. Following his prison term, Welch will be placed on three years of supervised release. While on supervised release, Welch is to receive a mental health assessment; he also was ordered to stay away from the restaurant while on release. Additionally, he must pay $5,744 in restitution for property damage he caused during the incident.
In sentencing the defendant, the judge declared that “the extent of the recklessness in this case is breathtaking,” adding that it was only through “sheer luck” that no one was injured.
According to the government’s evidence, on Sunday, December 4, 2016, Welch transported three loaded firearms, together with ammunition, from North Carolina to Washington, D.C. The firearms included a 9mm AR-15 assault rifle loaded with approximately 29 rounds of ammunition, a fully-loaded, six-shot, .38-caliber revolver, and a loaded shotgun with additional shotgun shells. He drove directly to the Comet Ping Pong restaurant, in the 5000 block of Connecticut Avenue NW. According to the government’s evidence, Welch was motivated, at least in part, by unfounded rumors concerning a child sex-trafficking ring that supposedly was being perpetrated at the establishment.
Upon arriving at the restaurant, Welch parked his car and armed himself. At about 3 p.m., he marched inside the restaurant, which was occupied by employees and customers, including children. He was carrying the AR-15 assault rifle and the revolver. He was carrying the AR-15 openly, with one hand on the pistol grip, and the other hand on the hand guard around the barrel, such that anyone with an unobstructed view could see the gun.
The customers and employees fled the building. At one point, Welch encountered a locked room and attempted to force open the door, first using a butter knife and then discharging his assault rifle multiple times into the door.
A few minutes later, an unaware employee entered the restaurant, carrying pizza dough. Welch saw the employee and turned toward the worker with the assault rifle, causing the worker to immediately fear he would be shot. The worker fled. Welch was left alone in the restaurant. After spending more than 20 minutes inside, he left his firearms and exited the restaurant unarmed. He was then arrested and has remained in custody ever since. No one was injured.
The assault rifle and revolver were recovered inside the restaurant. A shotgun also was recovered from the defendant’s car, along with a box of shotgun ammunition.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department and the FBI Violent Crimes Task Force. They also expressed appreciation for the assistance provided by the FBI’s Charlotte Division, which executed search warrants, seized evidence, and conducted interviews. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Yvonne Bryant and Karina Hernandez, Paralegal Specialists Chela Okonji and Bianca Evans, and Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section, who assisted with forfeiture issues.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Demian S. Ahn and Sonali D. Patel, who prosecuted the case.
New York Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
Saddam Mohamed Raishani, a/k/a “Adam Raishani,” 30, of the Bronx was arrested last night at John F. Kennedy International Airport (“JFK Airport”) in Queens, New York. Raishani was charged by a criminal Complaint earlier today with attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS” or the “Islamic State”), a designated foreign terrorist organization. Raishani is expected to be presented later today before Magistrate Judge James L. Cott in Manhattan federal court.
Acting Assistant Attorney General for National Security Dana Boente, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office, and Commissioner James P. O’Neill of the NYPD made the announcement.
“According to the complaint, Raishani attempted to travel overseas to join ISIS and to provide material support to the designated terrorist organization,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“As alleged, Saddam Mohamed Raishani, a Bronx man, plotted to travel to Syria to join and train with the terrorist organization ISIS,” said Acting Manhattan U.S. Attorney Kim. “Having already helped another man make that trip to ISIS’s heartland, Raishani allegedly acted on his own desire to wage violent jihad, planning to leave his family and life in New York City for the battlefields of the Middle East. Thanks to the excellent work of the FBI and NYPD, Raishani’s alleged plan to support this deadly terrorist organization was cut short at the airport and now he will face federal terrorism charges.”
“This case is another alleged instance of the nature of the terrorism threat and its reach into communities here at home,” said Assistant Director in Charge Sweeney Jr. “It is also a great example of the coordination which exists among local and federal law enforcement partners who work together to stop these alleged threats and interdict individuals allegedly determined on joining a terrorist organization intent on conducting violence around the globe. The FBI’s JTTF will continue to work with our partners, both here and abroad, to prevent acts of terrorism.”
“As we have seen many times before, allegedly attempting to join a designated terrorist organization usually has one outcome: arrest,” said Commissioner O’Neill. “Thank you to the NYPD detectives and FBI agents who, through the original Joint Terrorism Task Force, remain relentless in their focus to keep New York City safe.”
As alleged in the criminal Complaint,[1] filed today in Manhattan federal court:
In January 2017, Raishani contacted an individual who was, unbeknownst to Raishani, a confidential source working at the direction of law enforcement (the “CS”). During a meeting with the CS, Raishani told the CS that Raishani had a friend (“Person-1”), who had left New York to join the Islamic State some time ago.[2] Raishani told the CS that prior to Person-1’s departure, Raishani took Person-1 shopping to buy supplies to bring to the Islamic State. Riashani also said to the CS that, on the day of Person-1’s departure, Raishani gave money to Person-1 and drove Person-1 to JFK Airport. In later meetings with the CS, Raishani expressed his regret at not having traveled with Person-1 to join ISIS. Raishani also indicated his desire to wage jihad and his belief that the Quran can be read to justify the violence, including beheadings, engaged in by ISIS.
As part of the investigation, the CS introduced Raishani to an undercover law enforcement officer (“UC-1”), who was posing as an individual who wanted to travel abroad to fight for ISIS. During meetings with the CS and UC-1, Raishani expressed his desire to travel abroad to join ISIS. For example, Raishani stated that he had been in contact with other ISIS supporters and no longer felt comfortable in the United States. He also showed UC-1 a video that appeared to depict ISIS supporters discussing their desire to travel overseas to join ISIS and its ongoing fight. Raishani further showed the CS and UC-1 an ISIS video that appeared to depict ISIS members in Yemen killing civilians who did not support ISIS.
In addition, Raishani advised the CS and UC-1 as to how they could avoid detection by law enforcement. For example, Raishani advised the CS to cover the camera on the CS’s computer and turn off the computer’s microphone when watching pro-ISIS videos online. Raishani also advised the CS to use a particular Internet browser (the “Browser”) to hide their online activity, and explained that he used the Browser to watch ISIS and jihadi videos online. Furthermore, Raishani himself put on gloves when using a laptop and viewing pro-ISIS and pro-jihadi videos online. Moreover, Raishani told UC-1 that if they traveled together to join ISIS, Raishani, a home health aide, could pose as a nurse and UC-1 could pose as a refugee aid worker, in order to cross international borders without being stopped and questioned by authorities. Finally, Raishani told the CS and UC-1 that he (Raishani) had to be careful because he believed that federal authorities were monitoring his activities.
By April 2017, Raishani was actively planning to travel abroad to join ISIS. The CS told Raishani that, through a family acquaintance, the CS might be able to obtain contact information for an ISIS affiliate capable of facilitating travel to join ISIS. In reality, the purported facilitator was an FBI employee acting in an undercover capacity (“UC-2”). In May 2017, Raishani contacted UC-2 and said that he had previously helped another individual travel to join ISIS. Raishani further told UC-2 that he was seeking guidance for his own “hijrah,” an Arabic term normally used to refer to migration, but which is also used by ISIS supporters to refer to traveling overseas to join ISIS and engage in jihad. In subsequent conversations with the CS, UC-1, and/or UC-2, Raishani stated that he aspired to travel to Syria to join ISIS and that he aimed to travel before the end of Ramadan, an Islamic holy month that runs from approximately May 26 through June 24 this year. He indicated that he would be in contact with UC-2 about his travel. Raishani also stated that if he is “locked up,” he will not care, as “Allah will reward [him] for attempting jihad.”
In June 2017, Raishani told the CS that he was making preparations to leave, including paying off his remaining debts. Subsequently, Raishani and UC-1 purchased clothing that they intended to wear for their training with ISIS. Earlier this week, Raishani revealed to UC-2 his (Raishani’s) intention to meet an ISIS member in Turkey in the next few days, who would facilitate Raishani’s joining the terrorist organization. Raishani also purchased an airline ticket for a flight scheduled to depart on June 21, 2017, from JFK Airport to Istanbul, Turkey, via Lisbon, Portugal. On June 21, 2017, Raishani traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight to Lisbon. * * *
Raishani, is charged with one count of attempting to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mr. Kim praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Kim also thanked the Counterterrorism Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys George D. Turner, Sidhardha Kamaraju, and Jane Kim are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the National Security Division’s Counterterrorism Section.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
[2] Communications and conversations discussed herein are described in substance and in part.
New Orleans Businessman Sentenced for Defrauding InvestorsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOHN F. KELLY, III, age 56, of Metairie, was sentenced yesterday after previously pleading guilty to a wire fraud scheme.
U.S. District Judge Kurt D. Engelhardt sentenced KELLY to 12 months and one day of imprisonment, to be followed by three years of supervised release after his release from prison. KELLY was also ordered to pay restitution to his victims.
According to court documents, from 2011 through 2014, KELLY operated a tax sale investment business with investor monies. During this time, KELLY defrauded his investors by diverting their investment funds for his own personal use and benefit. As part of the scheme to defraud, KELLY used investor monies to pay off personal loans and to purchase real estate properties in New Orleans that he titled in separate corporate entities he controlled.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, in investigating this matter. Assistant United States Attorneys Richard R. Pickens, II, Andre J. Lagarde, and Hayden M. Brockett were in charge of the prosecution.
Myrtle Beach Man Sentenced on Federal Drug Conspiracy ChargeRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that David George Darrigo, Jr., age 42, from Myrtle Beach, South Carolina, was sentenced in federal court in Florence, South Carolina. On April 18, 2017, Darrigo pled guilty to conspiracy to possess with intent to distribute and distribution a quantity of methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and 846. United States District Judge R. Bryan Harwell, of Florence, sentenced Darrigo to 100 months imprisonment followed by 3 years of supervised released.
Evidence presented at the change of plea on April 18, 2017, and sentencing hearing established that in early 2016, members of the Drug Enforcement Administration (DEA) and the Fifteenth Circuit Drug Enforcement Unit (DEU) were investigating a methamphetamine distribution organization in the Horry County, South Carolina area. On December 18, 2015, agents made a controlled buy of a quantity of Methylenedioxymethamphetamine (MDMA) from Darrigo. After further investigation, agents obtained a search warrant for Darrigo’s home. On September 14, 2016, agents searched Darrigo’s home pursuant to the warrant and found 227 grams of methamphetamine in the home. Agents also seized over three thousand dollars ($3,000.00) from the home. Darrigo was arrested shortly thereafter.
The case was investigated by agents of the Drug Enforcement Administration (DEA) and the Fifteenth Circuit Drug Enforcement Unit (DEU). Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Mother and Son Who Ran Cocaine Importation Scheme from Their Family’s Queens Restaurant Sentenced to PrisonRead the Press Release
Earlier today at the federal courthouse in Brooklyn, United States District Judge Raymond J. Dearie sentenced the defendant Angelo Gigliotti to 20 years in prison and 10 years of supervised release following his conviction for conspiracy to import and possess cocaine. Judge Dearie had previously sentenced the defendant Angelo Gigliotti’s mother, Eleonora Gigliotti, on May 11, 2017, to 7 years in prison for her role in the importation scheme.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Angel M. Melendez, Special-Agent-in-Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York.
“The defendants used their family restaurant in Corona, Queens, as well as a produce importation company, to import over 50 kilograms of cocaine worth millions of dollars from Costa Rica. The prison sentences imposed on the defendants put an end to the transnational drug trafficking they conducted behind the disguise of local businesses,” stated Acting United States Attorney Rohde. Ms. Rohde thanked our law enforcement partners in Italy, including the Prosecutor of the Republic of Reggio Calabria, the Italian National Police (INP), and in particular, the Squadra Mobile of Reggio Calabria and the Servizio Centrale Operativo, the Direzione Centrale per i Servizi Antidroga, and the Direzione Nazionale Antimafia, as well as our law enforcement partners in Costa Rica, including the Organismo de Investigacion Judicial. Ms. Rohde also expressed her gratitude to the U.S. Department of Justice Attaché and the Offices of the HSI and FBI Legal Attaché at the U.S. Embassy in Rome, as well as the FBI Legal Attaché at the U.S. Embassy in Panama City, who coordinated extensive evidence-sharing and coordinated operations, and to the New York City Police Department, the U.S. Drug Enforcement Administration, and U.S. Customs and Border Protection for their assistance in this matter.
“The damaging effects of drugs aren’t limited to those individuals who abuse them—negative consequences often befall family members and friends, while businesses and government entities frequently incur the economic costs associated with drug abuse and prevention programs,” stated FBI Assistant Director-in-Charge Sweeney. “To say the threats posed by the illegal drug trade know no boundaries would be an understatement, and yet there are those among us who dare to draw the line a little closer to home. Today, with the help of our law enforcement partners around the globe, two more people remain behind bars for carelessly and deliberately contributing to this international dilemma.”
“This mother and son team trafficked cocaine across the globe, and used their own family-run restaurant as a front for their criminal activities,” said ICE-HSI New York Special Agent-in-Charge Melendez. “HSI uses its multifaceted investigative authorities with its partners to pursue and dismantle drug trafficking organizations whether it’s a small family run operation in New York or a large cartel operating in South America.”
Following a two-week trial in July 2016, a federal jury in Brooklyn, New York found the defendant Angelo Gigliotti and his father, Gregorio Gigliotti, guilty of participating in a long-running cocaine importation scheme. The defendant’s mother, Eleonora Gigliotti, also participated in the family-run drug-trafficking operation, and in January 2017, pled guilty to conspiring to import cocaine. Gregorio Gigliotti was previously sentenced to 18 years in prison for his role in the narcotics scheme, as well as for the possession of firearms in furtherance of the drug operation.
The defendants’ arrests arose out of a long-term investigation by ICE’s Homeland Security Investigations and the Federal Bureau of Investigation, in coordination with law enforcement authorities in Italy, into a transnational cocaine trafficking operation. Between October and December 2014, federal law enforcement officers intercepted and seized approximately 55 kilograms of cocaine that had been hidden inside cardboard boxes that contained cassava and sent from co-conspirators in Costa Rica to the defendants in New York. To facilitate their operation, the defendants used their family-run Italian restaurant in Corona, Queens, Cucino Amodo Mio, as well as a produce importation company, Fresh Farm Export Corp., that was incorporated in 2012 to provide a cover for their drug-trafficking operation. On March 11, 2015, the day the defendants were arrested, federal law enforcement officers executed a search warrant at Cucino Amodo Mio and recovered one 12 gauge shotgun, one loaded .357 magnum Trooper revolver, one loaded .22 caliber Colt pistol, one loaded .38 caliber Charter Arms revolver, one 9 mm Keltec pistol, one .762 Czech pistol, one .38 caliber Derringer that had a defaced serial number, ammunition magazines, loose ammunition, two handgun holsters, brass knuckles, a handwritten ledger showing the movement of more than $350,000, and more than $100,000 in cash.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Margaret E. Gandy and Keith D. Edelman are in charge of the prosecution.
The Defendants:
ANGELO GIGLIOTTI
Age: 36Woodside, New York
ELEONORA GIGLIOTTI
Age: 56
Malba, New York
E.D.N.Y. Docket No. 15-CR-204 (S-2) (RJD)