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Wednesday 3 May 2017
Honduran National Sentenced for Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ANGEL GUZMAN-RODRIGUEZ, age 28, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced GUZMAN-RODRIGUEZ to 15 months imprisonment, to be followed by one year supervised release. Following the completion of his sentence, GUZMAN-RODRIGUEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, GUZMAN-RODRIGUEZ reentered the United States after having been previously deported on March 9, 2012.
Acting U.S. Attorney Evans praised the work of the United States Department of Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Guatemalan man deported five times indicted for illegally reentering the U.S.Read the Press Release
A Guatemalan man was indicted for illegally reentering the United States, Acting U.S. Attorney David A. Sierleja said.
William Morales-Negra, 29, has been deported on five previous occasions, most recently in April 2014. Morales-Negra was recently found in New Philadelphia, according to the indictment.
Assistant U.S. Attorney Elliot D. Morrison is prosecuting the case following an investigation by Immigration and Custom Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Grand Jury Indicts Pittsburgh Man for Firearms ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges involving the unlawful possession of firearms by a convicted felon and possession of stolen firearms, Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on May 2, named Dalton Douglas Duschl, 21, of Pittsburgh, Pennsylvania.
According to the Indictment presented to the court, in January and February of 2017, Duschl unlawfully possessed four firearms, which he was prohibited from possessing under federal law due to prior criminal convictions. Duschl also was charged with violating federal firearms laws by selling two of those firearms, which were stolen.
The law provides for a maximum total sentence of 60 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort between federal, state and local law enforcement agencies, prosecutors, and communities to prevent, deter and prosecute gun crime. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and detectives from the Allegheny County Police Department conducted the investigation that led to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgia Woman Sentenced to Prison for Her Role in a Stolen Identity Refund Fraud SchemeRead the Press Release
An Atlanta, Georgia resident was sentenced to 24 months in prison today for her role in a stolen identity refund fraud scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
According to documents and information provided to the court, Shamil Dean, 36, allowed bank accounts that she controlled to be used to receive more than $135,000 in fraudulent refunds. These refunds were generated from tax returns filed with the Internal Revenue Service (IRS) in the names of individuals whose identities were stolen.
In addition to the term of prison imposed, Dean was ordered to serve one year of supervised release. Dean will also be ordered to pay restitution to the IRS, in the amount to be determined by the court within 90 days. Dean pleaded guilty in February to aggravated identity theft.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Horn commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys David Zisserson and Charles M. Edgar Jr. of the Tax Division and Assistant U.S. Attorney Alana Black of the Northern District of Georgia, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Gas Station Operator Pleads Guilty in Mississippi to Discharge of Hazardous Pollutant into City Sewage Treatment SystemRead the Press Release
WASHINGTON – Mahant Singh, operator of a convenience store and gas station in Yazoo City, Mississippi, pleaded guilty today to a criminal violation of the Clean Water Act. Singh admitted to discharging the contents of an underground fuel storage tank into a sewage line connected to the Yazoo City wastewater treatment system, which created a fire or explosion hazard and risked contaminating local water supplies, announced Acting Assistant Attorney General Jeffrey H. Wood for the U.S. Department of Justice Environment and Natural Resources Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
As charged in the criminal information, at the end of April 2016, water from rainstorms leaked into one of the underground gasoline storage tanks at the 49 Quick Stop though an inadequately maintained tank cap. The presence of water in the fuel storage tank triggered an automatic shut off, preventing the dispensing of gasoline. When there had been a similar water leak into a Quick Stop tank about a year earlier, in March 2015, defendant Singh arranged for a commercial tank service company to remove the water and gasoline mixture from his tank and to dispose of it properly, by separating the water and gasoline.
Instead of removing the gasoline and water mixture from his tank, as he had a year earlier, on or about April 28, 2016, defendant Singh pumped some of the content of the contaminated Quick Stop tank into an opening in the sewage line. Singh did so by extending a hose to the bottom of the tank where water might collect underneath the lighter gasoline. The other end of the hose he placed into the sewer pipe. Singh turned on a pump connected to the hoses, forcing liquid from the tank into the sewer line while he waited on customers at the Quick Stop store. In so doing, defendant Singh discharged liquid from the gasoline storage tank into the Yazoo City wastewater treatment system, thereby negligently introducing a pollutant into the system which created a fire or explosion hazard.
“The unpermitted discharge of gasoline-laden water into a community’s water treatment system is illegal, dangerous, and can also place the health of the community at risk,” said Acting Assistant Attorney General Wood. “These Clean Water Act charges, along with the guilty plea, should send a strong message that these unlawful acts, which place the public at risk, harm the environment, and damage local infrastructure, will not be tolerated.”
“We are fortunate that the illegal disposal of contaminated gasoline did not cause an explosion or injury,” said Director Chris Sanders of the Mississippi Department of Environmental Quality's (MDEQ) Office of Pollution Control. “A quick response by Yazoo City and MDEQ officials to identify the source of the discharge limited the risk of harm to the public and to the city’s sewage treatment system. However, numerous buildings, including a school, had to be evacuated when gasoline fumes were detected in several areas throughout the city. Cooperation between EPA’s Criminal Investigation Division and MDEQ to this illegal disposal was essential to these charges announced today. The State of Mississippi, through MDEQ, works closely with EPA in pursuing criminal enforcement of pollution prevention statutes.”
Federal law authorizes a Class A misdemeanor under the Clean Water Act for any person who negligently introduces into a publicly owned treatment works any pollutant or hazardous substance which the defendant person knew or reasonably should have known could cause personal injury or property damage or to introduce into the system any material other than in compliance with all applicable Federal, State, or local requirements or permits. Under the Clean Water Act, defendant Singh faces up to one year in prison; a term of supervised release of not more than five years; and a fine of up to $100,000.
Sentencing is scheduled for July 17, 2017.
Acting Assistant Attorney General Wood and Acting U.S. Attorney Brittain commended the efforts of the Environmental Protection Agency and state regulatory agencies for their diligent work in the investigation of this matter.
Gas Station Operator Pleads Guilty in Mississippi to Discharge of Hazardous Pollutant into City Sewage Treatment SystemRead the Press Release
Mahant Singh, operator of a convenience store and gas station in Yazoo City, Mississippi, pleaded guilty today to a criminal violation of the Clean Water Act. Singh admitted to discharging the contents of an underground fuel storage tank into a sewage line connected to the Yazoo City wastewater treatment system, which created a fire or explosion hazard and risked contaminating local water supplies, announced Acting Assistant Attorney General Jeffrey H. Wood for the U.S. Department of Justice Environment and Natural Resources Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
As charged in the criminal information, at the end of April 2016, water from rainstorms leaked into one of the underground gasoline storage tanks at the 49 Quick Stop though an inadequately maintained tank cap. The presence of water in the fuel storage tank triggered an automatic shut off, preventing the dispensing of gasoline. When there had been a similar water leak into a Quick Stop tank about a year earlier, in March 2015, defendant Singh arranged for a commercial tank service company to remove the water and gasoline mixture from his tank and to dispose of it properly, by separating the water and gasoline.
Instead of removing the gasoline and water mixture from his tank, as he had a year earlier, on or about April 28, 2016, defendant Singh pumped some of the content of the contaminated Quick Stop tank into an opening in the sewage line. Singh did so by extending a hose to the bottom of the tank where water might collect underneath the lighter gasoline. The other end of the hose he placed into the sewer pipe. Singh turned on a pump connected to the hoses, forcing liquid from the tank into the sewer line while he waited on customers at the Quick Stop store. In so doing, defendant Singh discharged liquid from the gasoline storage tank into the Yazoo City wastewater treatment system, thereby negligently introducing a pollutant into the system which created a fire or explosion hazard.
“The unpermitted discharge of gasoline-laden water into a community’s water treatment system is illegal, dangerous, and can also place the health of the community at risk,” said Acting Assistant Attorney General Wood. “These Clean Water Act charges, along with the guilty plea, should send a strong message that these unlawful acts, which place the public at risk, harm the environment, and damage local infrastructure, will not be tolerated.”
“We are fortunate that the illegal disposal of contaminated gasoline did not cause an explosion or injury,” said Director Chris Sanders of the Mississippi Department of Environmental Quality's (MDEQ) Office of Pollution Control. “A quick response by Yazoo City and MDEQ officials to identify the source of the discharge limited the risk of harm to the public and to the city’s sewage treatment system. However, numerous buildings, including a school, had to be evacuated when gasoline fumes were detected in several areas throughout the city. Cooperation between EPA’s Criminal Investigation Division and MDEQ to this illegal disposal was essential to these charges announced today. The State of Mississippi, through MDEQ, works closely with EPA in pursuing criminal enforcement of pollution prevention statutes.”
Federal law authorizes a Class A misdemeanor under the Clean Water Act for any person who negligently introduces into a publicly owned treatment works any pollutant or hazardous substance which the defendant person knew or reasonably should have known could cause personal injury or property damage or to introduce into the system any material other than in compliance with all applicable Federal, State, or local requirements or permits. Under the Clean Water Act, defendant Singh faces up to one year in prison; a term of supervised release of not more than five years; and a fine of up to $100,000.
Sentencing is scheduled for July 17, 2017.
Acting Assistant Attorney General Wood and Acting U.S. Attorney Brittain commended the efforts of the Environmental Protection Agency and state regulatory agencies for their diligent work in the investigation of this matter.
Former Orange County Man Found Guilty of Defrauding Insurance Companies by Billing Millions for Tests that Were Never PerformedRead the Press Release
LOS ANGELES – A former resident of Aliso Viejo has been found guilty of 15 counts of health care fraud for submitting bills to insurance companies that sought millions of dollars in reimbursement for tests and services that were never performed.
Michael Mirando, 40, who currently resides in Portland, Oregon, was found guilty yesterday by a federal jury that needed to deliberate for less than half an hour to reach its verdict after a weeklong trial.
Mirando was an owner of Holter Labs, which provided cardiac monitoring services using an ambulatory electrocardiography device known as a Holter monitor. The evidence presented during the trial in United States District Court showed that Mirando engaged in a fraud scheme in which he was responsible for the submission of millions of dollars in claims for services that were never performed.
Holter Labs provided the Holter monitor to physicians, who prescribed the devices to patients to monitor their heart rates for one to two days. Mirando then billed the patients’ insurance companies for the prescribed 24- or 48-hour tests, but he also submitted bills for services never ordered – such as 30-day tests – and for services the device could not perform – such as brain scans and oxygen studies.
From 2005 through 2016, Mirando submitted tens of thousands of claims to dozens of private health insurance companies. Mirando submitted bills that sought approximately $10 million, which included $7 million for services never performed and another $1 million for duplicate dates of services. The victim health insurance companies paid at least $2.5 million on these fraudulent claims.
After being free on bond since he was charged in this case last year, Mirando was remanded into custody on the first day of his trial after having contact with potential jurors in the case. After learning that Mirando spoke with two potential jurors outside of the courtroom, United States District Judge Percy Anderson revoked the defendant’s bond after finding that he engaged in jury tampering and had attempted to obstruct justice. At the conclusion of the trial, Judge Anderson released Mirando on a $1 million bond and ordered him placed under home detention.
Mirando is scheduled to be sentenced by Judge Anderson on August 21, at which time the defendant will face a statutory maximum sentence of 10 years in federal prison for each of the 15 counts of health care fraud.
Following his conviction yesterday, Mirando signed a stipulation in which he admitted that he purchased his house in Portland with proceeds generated by the fraud scheme. As a result, that residence could be the subject of a forfeiture action.
The case against Mirando was investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorneys Michael G. Freedman and Katherine A. Rykken of the General Crimes Section.
Former Miami-Dade Police Detective Sentenced to Prison for Stealing Money from Migrant Workers and Obstructing JusticeRead the Press Release
U.S. District Court Judge Marcia G. Cooke sentenced former Miami-Dade Police Detective William Kostopoulos, 49, today to 36 months in prison. Kostopoulos was convicted in February 2017 for using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice.
Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.According to evidence presented during the two-week trial, in 2013, Kostopoulos stopped two separate motorists, both undocumented migrant workers, in order to steal their money, in violation of their rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. Kostopoulos subsequently obstructed justice by making misleading statements in order to prevent the communication of information about his crimes to federal law enforcement officers.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. Assistant U.S. Attorneys Edward N. Stamm and Tonya R. Long of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division prosecuted the case.
Former Miami-Dade Police Detective Sentenced to Prison for Stealing Money from Migrant Workers and Obstructing JusticeRead the Press Release
U.S. District Court Judge Marcia G. Cooke sentenced former Miami-Dade Police Detective William Kostopoulos, 49, today to 36 months in prison. Kostopoulos was convicted in February 2017 for using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice.
Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to evidence presented during the two-week trial, in 2013, Kostopoulos stopped two separate motorists, both undocumented migrant workers, in order to steal their money, in violation of their rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. Kostopoulos subsequently obstructed justice by making misleading statements in order to prevent the communication of information about his crimes to federal law enforcement officers.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. Assistant U.S. Attorneys Edward N. Stamm and Tonya R. Long of the Southern District of Florida and Samantha Trepel of the Civil Rights Division prosecuted the case.
The U.S. Attorney’s Office, Department of Justice Civil Rights Division and our FBI partners encourage members of the community who have information regarding potential civil rights violations to contact the FBI Citizen Complaint Bureau at (754) 703-2000 or file a report at https://tips.fbi.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Marion County, Kentucky, Resident Charged with Possession with Intent to Manufacture Marijuana and Possession with Intent to Distribute MarijuanaRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the initial appearance of John Robert Boone a/k/a Johnny Boone, before Magistrate Judge Colin H. Lindsay, in United States District Court. Boone is charged in a two-count federal grand jury indictment with manufacturing more than 1,000 marijuana plants and with possession with intent to distribute 50 kilograms (110 pounds) or more of marijuana.
Boone, formerly of Marion County, Kentucky, was taken in to custody by the United States Marshals Service after being deported from Montreal, Canada.
Boone was indicted on October 7, 2008 on two charges: on or about May 27, 2008, knowingly and intentionally manufacturing and possessing with the intent to manufacture and distribute 1,000 or more marijuana plants, a controlled substance; and on or about May 27, 2008, knowingly and intentionally possessing with the intent to distribute 50 kilograms or more of marijuana, a controlled substance.
If convicted at trial, Boone potentially faces a mandatory, minimum sentence of 20 years in prison, depending on his criminal history. Further, Boone could be fined up to $10,000,000 and be required to serve no less than 5 years of supervised release.
This case is being prosecuted by Assistant United States Attorney Larry Fentress.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
boone_indictment_002.pdfFormer Hunts Point Police Benevolent Association President Charged with Embezzlement of Union FundsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Andriana Vamvakas, District Director of the Office of Labor-Management Standards, U.S. Department of Labor (“OLMS”), announced today the arrest of VICTOR DAVILA, the former president of the Hunts Point Police Benevolent Association (“HPPBA”), for embezzling union funds. As alleged in a Complaint unsealed today, DAVILA stole more than $35,000 from the HPPBA by fraudulently charging personal expenses to the HPPBA and by withdrawing thousands of dollars in cash from union accounts for his own purposes. DAVILA will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Victor Davila allegedly embezzled thousands of dollars from the union he was entrusted to serve as its president. Instead of serving his fellow police officers, he allegedly stole from them, using union funds to pay for his own travel to Puerto Rico, meals, and other personal expenses.”
DOL-OLMS District Director Andriana Vamvakas said: “Union officials are required to use the union’s funds only for legitimate purposes, not their own personal gain. Financial mismanagement by union officials not only breaks the law, it betrays the trust their membership placed in them.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
The HPPBA is the union for peace officers who work at and patrol the Hunts Point Market in the Bronx, New York. DAVILA served as the elected president of the HPPBA from in or about March 2011 through in or about March 2014. Beginning in at least July 2011, only months after becoming the union’s president, through February 2014, DAVILA stole money from the union by using an HPPBA debit card, linked to an HPPBA checking account, to charge expenses with no apparent relation to the business of the HPPBA, including, among other things: (1) multiple charges at a wholesale club in Westchester, New York, including for the purchase of eggs, soap, facial cream, a baking set, a waterproof camcorder, flowers, a video game, a mystery novel, women’s clothing, and a showerhead, (2) multiple charges at fast food and other restaurants, and (3) multiple charges for plane tickets to Puerto Rico. In addition, DAVILA withdrew thousands of dollars in cash from the HPPBA checking account using ATMs, and frequently then deposited corresponding amounts of cash into his own bank account. Based on the investigation to date, it appears that DAVILA stole more than $35,000 in total from the HPPBA.
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DAVILA, 50, of the Bronx, New York, was arrested this morning in Manhattan. DAVILA was charged with embezzling union funds, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the efforts of the United States Department of Labor, Office of Labor-Management Standards, in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Jacob Warren is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Correction Officer Pleads Guilty to Civil Rights Violation for Sexual Assault of Inmate at Bedford Hills Correctional Facility for WomenRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JEFFREY GREEN, a former correction officer at the Bedford Hills Correctional Facility for Women (the “Bedford Facility”), pled guilty today before U.S. Magistrate Judge Paul E. Davison to violating the constitutional civil rights of an inmate by sexually assaulting her at the Bedford Facility.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted in court today, Jeffrey Green sexually assaulted a defenseless female inmate. Green betrayed his duty as a correction officer and violated the Constitution. The protections of our Constitution do not end at our prisons’ walls.”
According to the allegations contained in the Information to which GREEN pled guilty today, and the related Complaint in which he was originally charged on February 15, 2017:
The Bedford Facility is a jail complex located in Bedford Hills, in Westchester County, New York, maintained by the New York State Department of Corrections and Community Supervision. At the time of the assault, Victim-1 was an inmate incarcerated at the Bedford Facility.
In the late evening hours of March 10, 2016, GREEN unlocked and opened the cell of Victim-1, and entered her cell unaccompanied by any other correction officer or other Bedford Facility staff. GREEN then grabbed Victim-1 by her arms, held her with her back against the wall of her cell, and began to lick, kiss, and bite her neck area, and to fondle her chest. After Victim-1 pushed GREEN away, he grabbed her, pushed her up against the wall of her cell, and again forced himself on her. GREEN then pulled up the shirt and bra of Victim-1 and bit, licked, and kissed her neck, chest, and breast and nipple areas, and fondled Victim-1’s groin area. GREEN was subsequently interrupted by the arrival of another correction officer knocking on a door to be admitted into the unit, upon which GREEN immediately departed Victim-1’s cell.
Victim-1 reported the assault the following morning, and a medical examination produced samples taken from Victim-1’s neck, left breast, and right breast that gave positive results with a presumptive test for saliva. A swab from Victim-1’s left breast generated a single-source male profile.
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JEFFREY GREEN, 48, of Brooklyn, New York, pled guilty to one count of violating the constitutional civil rights of an inmate by subjecting her to cruel and unusual punishment, by subjecting her to abusive sexual contact, which carries a maximum sentence of one year in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
GREEN is scheduled to be sentenced by Judge Davison on August 7, 2017.
Mr. Kim praised the investigative work of the New York State Department of Corrections and Community Supervision Office of Special Investigations and the Criminal Investigators at the United States Attorney’s Office. He also thanked the Westchester County District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Alex Rossmiller and Ellen Blain are in charge of the prosecution.
Former Chief Financial Officer at Not-For-Profit Organization Pleads Guilty to Wire Fraud and Making A False Tax ReturnRead the Press Release
Earlier today, Paul Cronin pleaded guilty at the federal courthouse in Brooklyn, New York, to a criminal information charging him with one count of wire fraud and one count of making and subscribing a false tax return, in connection with his conduct as Chief Financial Officer (CFO) for United States Council for International Business (USCIB), a not-for-profit organization that advocates for international business and trade. Pursuant to Cronin’s plea agreement with the government, Cronin agreed to pay more than $1.3 million in restitution as part of the sentence imposed by the Court. The plea was entered before United States Magistrate Judge James Orenstein.
As detailed in court filings and facts presented during the plea proceeding, Cronin abused his position as the CFO of USCIB to misappropriate more than $1.3 million in funds to pay for personal expenses. Cronin compounded his criminal conduct by failing to report the embezzled funds as income to the Internal Revenue Service.
The plea 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, New York Field Office (FBI); and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS).
“The defendant betrayed his position of trust with a not-for-profit organization to line his own pockets,” stated Acting United States Attorney Rohde. “Our office will remain vigilant in rooting out corrupt actors who undermine faith in organizations designed to further the public good.”
“Cronin’s misappropriation of more than $1 million, and subsequent tax evasion, didn’t support the efforts of free trade, as advocated by the organization, but instead supported his personal efforts to pay his own expenses,” stated Assistant Director-in-Charge Sweeney. “This type of reprehensible and illegal activity won’t be tolerated, and those who employ these schemes will most certainly be brought to justice.”
“In the United States, income is taxable, regardless of whether the source is legal or illegal. Mr. Cronin’s plea today serves as an important reminder that the role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to decipher,” said IRS Special Agent-in-Charge Robnett. “The victims are not only the taxpayers, but also the individual entities who suffer the financial harm.”
This case has been assigned to United States District Court Judge Raymond J. Dearie. When sentenced on August 18, 2017, Cronin faces up to 20 years in prison.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Alexander A. Solomon and Lan Nguyen are in charge of the prosecution.
The Defendant:
PAUL CRONIN
Age: 55
Daniel Island, South Carolina
E.D.N.Y. Docket No. 17-CR-190 (RJD)
Former Business Executive Indicted on Federal Charges, Accused of Engaging in Contract Kickbacks and Phony Billing SchemesRead the Press Release
WASHINGTON – John T. Fitzgerald, a former vice president of the Washington, D.C. office of an investment banking firm, was indicted today on federal charges stemming from a scheme in which he allegedly accepted kickbacks for construction management contracts he steered to another firm, as well as other allegedly fraudulent activities.
The indictment was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Kimberly Lappin, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office.
Fitzgerald, 48, of Washington, D.C., was indicted by a grand jury in the U.S. District Court for the District of Columbia on 13 felony charges. They include three counts of wire fraud; one count of aggravated identity theft; two counts of tax evasion, and seven counts of money laundering. The indictment also includes a forfeiture allegation seeking more than $700,000 in proceeds that can be traced to the alleged schemes.
A co-defendant, Bryan D. Wright, 54, of Laytonsville, Md., pled guilty in February 2016 to one count of conspiracy to engage in wire fraud and one count of conspiracy to engage in money laundering. He is awaiting sentencing.
According to the indictment, Fitzgerald began work at the investment banking firm in 2008 and oversaw its real estate development activities and investments. His responsibilities included oversight of a commercial development project in Hanover, Md., known as the Station Ridge development project. The investment banking firm was the managing investor-owner of the project, which ultimately included three buildings for use as offices by various tenants.
In or around mid-2011, according to the indictment, Fitzgerald began to invoice the general contractor on Station Ridge through a company Fitzgerald owned, and thereby obtained roughly $41,000 for himself on the project.
Later in 2011, according to the indictment, Fitzgerald installed Wright as construction manager on Station Ridge, and the two agreed to an invoicing and kickback scheme that lasted into 2013. Wright was president of P&E Services, LLC. Between 2011 and 2013, through their scheme, Wright and Fitzgerald allegedly took $769,000 from the investment banking firm employing Fitzgerald, and another $417,000 from the general contracting company (which was reimbursed by the investment banking firm), for a total of nearly $1.2 million. Wright, through P&E and other companies, paid Fitzgerald nearly $600,000 in proceeds from the Station Ridge project, roughly half of the total amount that P&E Services obtained, the indictment alleges.
In a related scheme involving purported projects on the Bridgewater office building in Fairfax, Va., which was another development project of the investment banking firm, Wright and Fitzgerald submitted invoices for work that was not completed, and obtained additional money from Fitzgerald’s employer. Once again, Fitzgerald and Wright split the proceeds between them, with Fitzgerald receiving approximately $70,000, the indictment alleges.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Special Agent in Charge Lappin commended the work of those who investigated the case from the FBI’s Washington Field Office and the Internal Revenue Service-Criminal Investigation. They acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including former Assistant U.S. Attorney David A. Last, Paralegal Specialists Tasha Harris and C. Rosalind Pressley, and Legal Assistants Angela Lawrence and John Lowell. Finally, they acknowledged the work of Assistant U.S. Attorneys John Marston, Kendra D. Briggs, and Zia Faruqui, who are investigating and prosecuting the matter.
Former Bullitt County, Kentucky, Sheriff Charged with Attempting to Obstruct Justice and Aiding and Abetting A Bullitt County Special Deputy in A Conspiracy to Distribute MarijuanaRead the Press Release
Alleged criminal activity took place during a one year period while David Greenwell served as Bullitt County Sheriff
LOUISVILLE, Ky. – A former Bullitt County, Kentucky, Sheriff was charged by grand jury indictment, under seal, with four counts of attempting to obstruct the due administration of justice while serving as sheriff, and with one count of aiding and abetting in a conspiring to distribute 100 kilograms or more of marijuana, a schedule I controlled substance, announced United States Attorney John E. Kuhn, Jr.
David Greenwell, of Bullitt County, was arrested today and appeared before U.S. Magistrate Judge Colin Lindsay in Louisville.
According to the indictment, that was unsealed today, the alleged illegal activity was committed by Greenwell, between June of 2014, and July of 2015, while he served as Bullitt County Sheriff.
In June of 2014, Greenwell allegedly attempted to obstruct, influence and impede an official proceeding (a federal criminal prosecution) by arranging a secret meeting with C.M., a Bullitt County Special Deputy, who was the subject of state and federal criminal investigations, and for informing C.M. that he was under investigation, and for providing C.M. of the name of a potential government witness.
In July of 2014, Greenwell allegedly corruptly attempted to obstruct, influence, and impede, a federal criminal prosecution, by informing C. M., a Bullitt County Special Deputy and the subject of state and federal criminal investigations, that his place of business was under photographic surveillance (pole camera).
On May 15, 2015, Greenwell allegedly attempted to obstruct, impede, and interfere with a duly authorized criminal investigation, disclosed to C.M., a Bullitt County Special Deputy and the subject of state and federal criminal investigations, the contents of wire communications, that were intercepted as part of the criminal investigation.
Further, in July of 2015, Greenwell allegedly corruptly attempted to obstruct, influence, and impede an official proceeding, a federal criminal prosecution, by arranging a secret meeting with L.M., a Bullitt County Special Deputy and a person of interest in state and federal criminal investigations, and provided him with the names of three potential government witnesses in the federal prosecution.
In addition, between July of 2014 and July of 2015, Greenwell, while serving as Bullitt County Sheriff, allegedly aided and abetted C.M, while he served as a Bullitt County Special Deputy, in a conspiracy, to distribute 1000 kilograms or more of marijuana.
If convicted at trial, Greenwell could be sentenced to no less than ten years, including a life sentence, ordered to pay a fine of $11 million, and serve up to a five year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the Federal Bureau of Investigation (FBI)
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
greenwell_david_indictment_5-2-17.docxFelon from San Juan County Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Shane Johnston, 41, of Aztec, N.M., pled guilty today in federal court in Albuquerque, N.M., to being a felon in possession of a firearm and ammunition.
Johnston was arrested in April 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on Sept. 1, 2015, in San Juan County, N.M. According to the indictment, Johnston previously had been convicted of several felony offenses including possession of a controlled substance, receiving stolen property, possession of a firearm or destructive device by a felon, burglary of an automobile and distribution of methamphetamine.
During today’s proceedings, Johnston pled guilty to the indictment and admitted that on Sept. 1, 2015, he was in possession of a firearm and ammunition and was prohibited from possessing firearms or ammunition because of his status as a convicted felon. At sentencing, Johnston faces a maximum penalty of ten years in federal prison. If the Court determines that Johnston is an armed career criminal, Johnston faces an enhanced sentence of a statutory mandatory minimum penalty of 15 years in prison and a maximum of life imprisonment.
This case was investigated by the ATF and is being prosecuted by Assistant U.S. Attorney Samuel A. Hurtado as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Federal Officials Close Investigation into Death of Alton SterlingRead the Press Release
WASHINGTON – The Justice Department announced today that the independent federal investigation into the fatal shooting of Alton Sterling on July 5, 2016, in Baton Rouge, Louisiana, found insufficient evidence to support federal criminal charges against Baton Rouge Police Department (BRPD) Officers Blane Salamoni and Howie Lake, II. Career prosecutors from the U.S. Attorney’s Office (USAO) for the Middle District of Louisiana and the Justice Department’s Civil Rights Division, along with officials from the FBI and the Justice Department’s Community Relations Service, met today with Sterling’s family and their representatives to inform them of the findings of the investigation and the decision.
Overview
The Department conducted a ten-month, comprehensive, and independent investigation of the events surrounding Sterling’s death. Federal agents and career prosecutors examined evidence from multiple independent sources, including all available footage from police vehicles that responded to the scene and the body-worn cameras from responding officers; cell-phone videos of the incident; interior and exterior surveillance video footage from the store where the shooting occurred; evidence gathered by the BRPD’s crime lab; BRPD documents related to the shooting; personnel files and background material for both involved officers, including prior use-of-force incidents; BRPD policies and training materials; all relevant dispatch recordings between and among local law enforcement, including the originating 911 calls; forensic evidence reports; the autopsy report; photographs of the crime scene; toxicology reports; EMS reports; and extensive additional electronically-stored evidence. As part of the investigation, the FBI laboratory conducted an expert forensic analysis of the video footage capturing the incident between Sterling and the officers. The FBI also interviewed dozens of witnesses, including civilian witnesses who were present at the scene and officers who responded to the scene after the shooting. The Department also consulted with two independent use-of-force experts whom the Civil Rights Division has previously used as government witnesses in criminal prosecutions of civil rights violations.
Applicable Law
The Department examined the facts in this case under all relevant federal criminal statutes. The federal criminal statute applicable to these facts is Title 18, United States Code, Section 242, Deprivation of Rights Under Color of Law. In order to proceed with a prosecution under Section 242, prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a federally protected right. The right implicated in this matter is the Fourth Amendment right to be free from an unreasonable seizure. This right includes the right to be free from unreasonable physical force by police. To prove that a police shooting violated the Fourth Amendment, the government must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force on an arrestee be judged from the perspective of a reasonable officer on the scene, rather than with added perspective of hindsight. The law set forth by the Supreme Court requires that allowances must be made for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain, and rapidly evolving.
Additionally, to prove that a shooting violated section 242, the government must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident or mistake, or even exercised bad judgment.
Although Sterling’s death is tragic, the evidence does not meet these substantial evidentiary requirements. In light of this, and for the reasons explained below, the federal investigation concluded that this matter is not a prosecutable violation of the federal statutes.
Factual Summary
While this summary is based on, and consistent with, all facts known to the government after a thorough investigation, it does not include or discuss all facts known to federal law enforcement officials or gathered through this investigation. Many of the facts gathered through the federal investigation are not permitted to be disclosed, and other particularly sensitive facts and evidence are not being disclosed in order to protect the integrity of the State Attorney General’s inquiry into whether any state statutes were violated.
The investigation revealed that at approximately 12:30 a.m. on July 5, 2016, an individual called 911 from a location near the Triple S Food Mart ("Triple S") and reported that he had been threatened outside of a store by a black man wearing a red shirt and selling CDs. The caller reported that the man had pulled out a gun and had the gun in his pocket. The caller’s first call disconnected, but he called back a few moments later and reiterated his report. Dispatch relayed that information to Officers Lake and Salamoni, who responded to the Triple S, where they saw Sterling, wearing a red shirt and standing by a table with a stack of CDs.
The subsequent exchange between Sterling and the officers happened very quickly, with the events – from the officers’ initial approach to a struggle on the ground to the shooting – happening in rapid succession. From the moment when Officer Lake gave his first order to Sterling, through the firing of the final shot, the entire encounter lasted less than 90 seconds. More specifically, from the start of the officers’ physical struggle with Sterling on the ground, through the firing of the final shot, the encounter lasted less than 30 seconds.
Multiple videos captured portions or the entirety of the officers’ interaction with Sterling. These include cell-phone videos, surveillance video from the store, and video from the officers’ body cameras and a police vehicle. FBI video forensic experts also provided enhancements of relevant videos for the portion of the struggle that immediately preceded the shooting.
The videos show the officers as they arrived on scene and engaged with Sterling. The videos show that the officers directed Sterling to put his hands on the hood of a car. When Sterling did not comply, the officers placed their hands on Sterling, and he struggled with the officers. Officer Salamoni then pulled out his gun and pointed it at Sterling’s head, at which point Sterling placed his hands on the hood. After Sterling briefly attempted to move his hands from the hood, Officer Lake then used a Taser on Sterling, who fell to his knees, but then began to get back up. The officers ordered him to get down, and Officer Lake attempted unsuccessfully to use his Taser on Sterling again. Officer Salamoni holstered his weapon, and then tackled Sterling; both went to the ground, with Officer Salamoni on top of Sterling, who was on his back with his right hand and shoulder partially under the hood of a car. Officer Lake joined them on the ground, kneeling on Sterling’s left arm while Officer Salamoni attempted to gain control over Sterling’s right arm. Officer Salamoni then yelled, "Going for his pocket. He’s got a gun! Gun!" Officer Salamoni then unsuccessfully attempted to gain control of Sterling’s right hand, while Officer Lake drew his weapon and yelled at Sterling, again directing him not to move. Less than one second later, during a point at which the location of Sterling’s right hand was not visible to the cameras, Officer Salamoni again yelled that Sterling was "going for the gun!" Officer Salamoni then fired three shots into Sterling’s chest.
After the first three shots were fired, Officer Salamoni rolled onto on his back, facing Sterling’s back, with his weapon still drawn. Officer Lake stood behind both of them with his weapon drawn and pointed at Sterling. Sterling began to sit up and roll to his left, with his back to the officers. Sterling brought his right arm across his body toward the ground, and Officer Lake yelled at Sterling to "get on the ground." As Sterling continued to move, Officer Salamoni fired three more rounds into Sterling’s back. Within a few seconds, Officer Lake reached into Sterling’s right pocket and pulled out a .38 caliber revolver. Investigators later confirmed that Sterling’s gun was loaded with six bullets at the time of this exchange.
Following the shooting, Officers Salamoni and Lake each provided a detailed statement offering his version of how and why this shooting happened. According to the officers, Sterling was large and very strong, and from the very beginning resisted their commands. The officers reported that they responded with multiple different compliance techniques and that Sterling resisted the entire time. Both officers reported that when they were on the ground, they saw Sterling’s right hand in his pocket, with his hand on a gun. Officer Salamoni reported that he saw the gun coming out and attempted to grab it, but Sterling jerked away and attempted to grab the gun again. Officer Salamoni then saw "silver" and knew that he had seen a gun, so he began firing. Both officers reported that after the first three shots, they believed that Sterling was attempting to reach into his right pocket again, so Officer Salamoni fired three more times into Sterling’s back.
Discussion
In light of the officers’ explanations of the shooting, the government, in order to prove a Fourth Amendment violation, would be required to (1) disprove the officers’ accounts, (2) prove an alternative account that demonstrates that the officers’ actions were objectively unreasonable; and (3) prove that the officers knew that their actions were unreasonable and took them anyway. The evidence in this case is insufficient to bear the heavy burden of proof under federal criminal civil rights law.
To fully assess whether this shooting constituted an unreasonable use of force, federal investigators closely examined, among other things, all of the evidence concerning the location of Sterling’s right hand prior to the first set of shots. As mentioned, although the videos do not show Sterling’s right hand at the time those shots were fired, they show that Sterling’s right hand was not under Officer Salamoni’s control. The evidence also cannot establish that Sterling was not reaching for a gun when Officer Salamoni yelled that Sterling was doing so.
Federal investigators interviewed numerous civilian witnesses to determine whether they could provide additional relevant information on the question of whether Sterling reached for a gun.
Only two witnesses reported to the FBI that they could see Sterling’s right hand, and they indicated that his hand was not in his pocket. However, because of other inconsistencies in their statements, and because of the fact that parts of their accounts are materially contradicted by the videos, their accounts are insufficient to prove the position of Sterling’s right hand/arm beyond a reasonable doubt at the time the shots were fired. Although the Department found no reason to doubt the sincerity of the witnesses’ accounts, this incident happened in an instant, and the witnesses may have had no reason to be specifically watching for the precise location of Sterling’s right hand at the time of the shooting. Given the inconsistencies in the civilian witnesses’ perspectives and recollections and the fact that the video establishes that Officer Salamoni did not have control over Sterling’s right hand just before the shots were fired, the evidence simply cannot establish beyond a reasonable doubt the position of Sterling’s right hand at the exact time of the shooting, a split-second later. The Department therefore cannot disprove the officers’ claim beyond a reasonable doubt.
The investigators also consulted with two independent, nationally recognized use-of-force experts with whom the Civil Rights Division has previously consulted in civil rights cases. While both experts criticized aspects of the officers’ techniques, they also concluded that the officers’ actions were reasonable under the circumstances and thus met constitutional standards. The experts emphasized that the officers were responding to a call that someone matching Sterling’s description had brandished a weapon and threatened another person; that Sterling was large and strong; and that Sterling was failing to follow orders and was struggling with the officers. The experts noted that the officers also attempted to control Sterling through multiple less-than-lethal techniques before ultimately using lethal force in response to Officer Salamoni’s perception that Sterling was attempting to use a gun.
The investigators’ review of BRPD files revealed no prior incidents involving substantiated allegations of misconduct by Officers Salamoni or Lake.
In light of these facts, the evidence gathered during this investigation is insufficient to prove, beyond a reasonable doubt, that the use of force leading up to and including the shooting violated the Fourth Amendment.
The federal investigators also considered whether the evidence proved the distinct statutory element of willfulness. To establish that the officers acted willfully, the government would be required both to disprove the reason the officers gave for the shooting and to affirmatively establish that the officers instead acted with the specific intent to violate Sterling’s rights—meaning that, in shooting Sterling, the officers knew that what they were doing was unreasonable or prohibited, and chose to do it anyway.
For many of the same reasons described above, the evidence is insufficient to prove beyond a reasonable doubt that the officers’ actions were a willful violation of the Fourth Amendment. When Officer Salamoni first reported that Sterling was going for the gun, he said, "Going for his pocket, he’s got a gun! Gun!" Significantly, Officer Salamoni did not shoot Sterling at this point, and, instead, attempted to gain control of Sterling’s right hand. Officer Lake also warned Sterling not to move. Seconds later, Officer Salamoni yelled again that Sterling was "going for the gun!" and only then did he fire his own weapon. This evidence suggests that Officer Salamoni fired his weapon when he believed that Sterling was going for his gun a second time, after Officer Lake had warned Sterling not to move. In order to prosecute this matter, the government would have to prove beyond a reasonable doubt not only that Sterling was not reaching for his gun, but also that, despite Officer Salamoni’s contemporaneous statements to the contrary, he did not believe that Sterling was reaching for his gun after being warned not to move. The Department lacks the evidence to prove either of those propositions beyond a reasonable doubt.
The investigators also considered whether Officer Salamoni’s second series of shots was a prosecutable Fourth Amendment violation. Although the videos show that Sterling’s right hand was not in or near his right pocket, Sterling was continuing to move, even after being shot three times and being told again not to move by Officer Lake. Meanwhile, the officers were behind Sterling, and Officer Salamoni was lying on the ground, facing Sterling’s back. Given these circumstances, the evidence cannot establish beyond a reasonable doubt that it did not appear to Officer Salamoni that Sterling was reaching for his pocket. Nor could the Department prove that the officer’s conduct was willful.
Conclusion
In sum, after extensive investigation into this tragic event, career Justice Department prosecutors have concluded that the evidence is insufficient to prove beyond a reasonable doubt that Officers Salamoni and Lake willfully violated Sterling’s civil rights. Given the totality of the circumstances – that the officers had been fighting with Sterling and had attempted less-than-lethal methods of control; that they knew Sterling had a weapon; that Sterling had reportedly brandished a gun at another person; and that Sterling was much larger and stronger than either officer – the Department cannot prove either that the shots were unconstitutional or that they were willful. Moreover, two different, independent experts opined that this shooting was not unreasonable given the circumstances. With respect to the first series of shots, the experts assessed that it was not unreasonable for Officer Salamoni to use lethal force, in light of all of the circumstances referenced above. With respect to the second series of shots, both experts emphasized that officers are trained to eliminate a threat, and that Sterling appeared to pose a threat because he was still moving and his right hand was not visible to Officer Salamoni. Accordingly, the federal investigation into this incident has been closed without prosecution. Federal officials intend to provide the investigative file to the Louisiana Attorney General’s Office, which intends to conduct its own investigation into whether the conduct at issue in this investigation violated state law.
In this case, the U.S. Attorney’s Office for the Middle District of Louisiana, the Justice Department’s Civil Rights Division, and the FBI each devoted significant time and resources to investigating the circumstances surrounding Sterling’s death and to completing a thorough analysis of the evidence gathered. The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The Department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Officials Close Investigation into Death of Alton SterlingRead the Press Release
The Justice Department announced today that the independent federal investigation into the fatal shooting of Alton Sterling on July 5, 2016, in Baton Rouge, Louisiana, found insufficient evidence to support federal criminal charges against Baton Rouge Police Department (BRPD) Officers Blane Salamoni and Howie Lake, II. Career prosecutors from the U.S. Attorney’s Office (USAO) for the Middle District of Louisiana and the Justice Department’s Civil Rights Division, along with officials from the FBI and the Justice Department’s Community Relations Service, met today with Sterling’s family and their representatives to inform them of the findings of the investigation and the decision.
Overview
The Department conducted a ten-month, comprehensive, and independent investigation of the events surrounding Sterling’s death. Federal agents and career prosecutors examined evidence from multiple independent sources, including all available footage from police vehicles that responded to the scene and the body-worn cameras from responding officers; cell-phone videos of the incident; interior and exterior surveillance video footage from the store where the shooting occurred; evidence gathered by the BRPD’s crime lab; BRPD documents related to the shooting; personnel files and background material for both involved officers, including prior use-of-force incidents; BRPD policies and training materials; all relevant dispatch recordings between and among local law enforcement, including the originating 911 calls; forensic evidence reports; the autopsy report; photographs of the crime scene; toxicology reports; EMS reports; and extensive additional electronically-stored evidence. As part of the investigation, the FBI laboratory conducted an expert forensic analysis of the video footage capturing the incident between Sterling and the officers. The FBI also interviewed dozens of witnesses, including civilian witnesses who were present at the scene and officers who responded to the scene after the shooting. The Department also consulted with two independent use-of-force experts whom the Civil Rights Division has previously used as government witnesses in criminal prosecutions of civil rights violations.
Applicable Law
The Department examined the facts in this case under all relevant federal criminal statutes. The federal criminal statute applicable to these facts is Title 18, United States Code, Section 242, Deprivation of Rights Under Color of Law. In order to proceed with a prosecution under Section 242, prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a federally protected right. The right implicated in this matter is the Fourth Amendment right to be free from an unreasonable seizure. This right includes the right to be free from unreasonable physical force by police. To prove that a police shooting violated the Fourth Amendment, the government must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force on an arrestee be judged from the perspective of a reasonable officer on the scene, rather than with added perspective of hindsight. The law set forth by the Supreme Court requires that allowances must be made for the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain, and rapidly evolving.
Additionally, to prove that a shooting violated section 242, the government must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident or mistake, or even exercised bad judgment.
Although Sterling’s death is tragic, the evidence does not meet these substantial evidentiary requirements. In light of this, and for the reasons explained below, the federal investigation concluded that this matter is not a prosecutable violation of the federal statutes.
Factual Summary
While this summary is based on, and consistent with, all facts known to the government after a thorough investigation, it does not include or discuss all facts known to federal law enforcement officials or gathered through this investigation. Many of the facts gathered through the federal investigation are not permitted to be disclosed, and other particularly sensitive facts and evidence are not being disclosed in order to protect the integrity of the State Attorney General’s inquiry into whether any state statutes were violated.
The investigation revealed that at approximately 12:30 a.m. on July 5, 2016, an individual called 911 from a location near the Triple S Food Mart (“Triple S”) and reported that he had been threatened outside of a store by a black man wearing a red shirt and selling CDs. The caller reported that the man had pulled out a gun and had the gun in his pocket. The caller’s first call disconnected, but he called back a few moments later and reiterated his report. Dispatch relayed that information to Officers Lake and Salamoni, who responded to the Triple S, where they saw Sterling, wearing a red shirt and standing by a table with a stack of CDs.
The subsequent exchange between Sterling and the officers happened very quickly, with the events – from the officers’ initial approach to a struggle on the ground to the shooting – happening in rapid succession. From the moment when Officer Lake gave his first order to Sterling, through the firing of the final shot, the entire encounter lasted less than 90 seconds. More specifically, from the start of the officers’ physical struggle with Sterling on the ground, through the firing of the final shot, the encounter lasted less than 30 seconds.
Multiple videos captured portions or the entirety of the officers’ interaction with Sterling. These include cell-phone videos, surveillance video from the store, and video from the officers’ body cameras and a police vehicle. FBI video forensic experts also provided enhancements of relevant videos for the portion of the struggle that immediately preceded the shooting.
The videos show the officers as they arrived on scene and engaged with Sterling. The videos show that the officers directed Sterling to put his hands on the hood of a car. When Sterling did not comply, the officers placed their hands on Sterling, and he struggled with the officers. Officer Salamoni then pulled out his gun and pointed it at Sterling’s head, at which point Sterling placed his hands on the hood. After Sterling briefly attempted to move his hands from the hood, Officer Lake then used a Taser on Sterling, who fell to his knees, but then began to get back up. The officers ordered him to get down, and Officer Lake attempted unsuccessfully to use his Taser on Sterling again. Officer Salamoni holstered his weapon, and then tackled Sterling; both went to the ground, with Officer Salamoni on top of Sterling, who was on his back with his right hand and shoulder partially under the hood of a car. Officer Lake joined them on the ground, kneeling on Sterling’s left arm while Officer Salamoni attempted to gain control over Sterling’s right arm. Officer Salamoni then yelled, “Going for his pocket. He’s got a gun! Gun!” Officer Salamoni then unsuccessfully attempted to gain control of Sterling’s right hand, while Officer Lake drew his weapon and yelled at Sterling, again directing him not to move. Less than one second later, during a point at which the location of Sterling’s right hand was not visible to the cameras, Officer Salamoni again yelled that Sterling was “going for the gun!” Officer Salamoni then fired three shots into Sterling’s chest.
After the first three shots were fired, Officer Salamoni rolled onto on his back, facing Sterling’s back, with his weapon still drawn. Officer Lake stood behind both of them with his weapon drawn and pointed at Sterling. Sterling began to sit up and roll to his left, with his back to the officers. Sterling brought his right arm across his body toward the ground, and Officer Lake yelled at Sterling to “get on the ground.” As Sterling continued to move, Officer Salamoni fired three more rounds into Sterling’s back. Within a few seconds, Officer Lake reached into Sterling’s right pocket and pulled out a .38 caliber revolver. Investigators later confirmed that Sterling’s gun was loaded with six bullets at the time of this exchange.
Following the shooting, Officers Salamoni and Lake each provided a detailed statement offering his version of how and why this shooting happened. According to the officers, Sterling was large and very strong, and from the very beginning resisted their commands. The officers reported that they responded with multiple different compliance techniques and that Sterling resisted the entire time. Both officers reported that when they were on the ground, they saw Sterling’s right hand in his pocket, with his hand on a gun. Officer Salamoni reported that he saw the gun coming out and attempted to grab it, but Sterling jerked away and attempted to grab the gun again. Officer Salamoni then saw “silver” and knew that he had seen a gun, so he began firing. Both officers reported that after the first three shots, they believed that Sterling was attempting to reach into his right pocket again, so Officer Salamoni fired three more times into Sterling’s back.
Discussion
In light of the officers’ explanations of the shooting, the government, in order to prove a Fourth Amendment violation, would be required to (1) disprove the officers’ accounts, (2) prove an alternative account that demonstrates that the officers’ actions were objectively unreasonable; and (3) prove that the officers knew that their actions were unreasonable and took them anyway. The evidence in this case is insufficient to bear the heavy burden of proof under federal criminal civil rights law.
To fully assess whether this shooting constituted an unreasonable use of force, federal investigators closely examined, among other things, all of the evidence concerning the location of Sterling’s right hand prior to the first set of shots. As mentioned, although the videos do not show Sterling’s right hand at the time those shots were fired, they show that Sterling’s right hand was not under Officer Salamoni’s control. The evidence also cannot establish that Sterling was not reaching for a gun when Officer Salamoni yelled that Sterling was doing so.
Federal investigators interviewed numerous civilian witnesses to determine whether they could provide additional relevant information on the question of whether Sterling reached for a gun.
Only two witnesses reported to the FBI that they could see Sterling’s right hand, and they indicated that his hand was not in his pocket. However, because of other inconsistencies in their statements, and because of the fact that parts of their accounts are materially contradicted by the videos, their accounts are insufficient to prove the position of Sterling’s right hand/arm beyond a reasonable doubt at the time the shots were fired. Although the Department found no reason to doubt the sincerity of the witnesses’ accounts, this incident happened in an instant, and the witnesses may have had no reason to be specifically watching for the precise location of Sterling’s right hand at the time of the shooting. Given the inconsistencies in the civilian witnesses’ perspectives and recollections and the fact that the video establishes that Officer Salamoni did not have control over Sterling’s right hand just before the shots were fired, the evidence simply cannot establish beyond a reasonable doubt the position of Sterling’s right hand at the exact time of the shooting, a split-second later. The Department therefore cannot disprove the officers’ claim beyond a reasonable doubt.
The investigators also consulted with two independent, nationally recognized use-of-force experts with whom the Civil Rights Division has previously consulted in civil rights cases. While both experts criticized aspects of the officers’ techniques, they also concluded that the officers’ actions were reasonable under the circumstances and thus met constitutional standards. The experts emphasized that the officers were responding to a call that someone matching Sterling’s description had brandished a weapon and threatened another person; that Sterling was large and strong; and that Sterling was failing to follow orders and was struggling with the officers. The experts noted that the officers also attempted to control Sterling through multiple less-than-lethal techniques before ultimately using lethal force in response to Officer Salamoni’s perception that Sterling was attempting to use a gun.
The investigators’ review of BRPD files revealed no prior incidents involving substantiated allegations of misconduct by Officers Salamoni or Lake.
In light of these facts, the evidence gathered during this investigation is insufficient to prove, beyond a reasonable doubt, that the use of force leading up to and including the shooting violated the Fourth Amendment.
The federal investigators also considered whether the evidence proved the distinct statutory element of willfulness. To establish that the officers acted willfully, the government would be required both to disprove the reason the officers gave for the shooting and to affirmatively establish that the officers instead acted with the specific intent to violate Sterling’s rights—meaning that, in shooting Sterling, the officers knew that what they were doing was unreasonable or prohibited, and chose to do it anyway.
For many of the same reasons described above, the evidence is insufficient to prove beyond a reasonable doubt that the officers’ actions were a willful violation of the Fourth Amendment. When Officer Salamoni first reported that Sterling was going for the gun, he said, “Going for his pocket, he’s got a gun! Gun!” Significantly, Officer Salamoni did not shoot Sterling at this point, and, instead, attempted to gain control of Sterling’s right hand. Officer Lake also warned Sterling not to move. Seconds later, Officer Salamoni yelled again that Sterling was “going for the gun!” and only then did he fire his own weapon. This evidence suggests that Officer Salamoni fired his weapon when he believed that Sterling was going for his gun a second time, after Officer Lake had warned Sterling not to move. In order to prosecute this matter, the government would have to prove beyond a reasonable doubt not only that Sterling was not reaching for his gun, but also that, despite Officer Salamoni’s contemporaneous statements to the contrary, he did not believe that Sterling was reaching for his gun after being warned not to move. The Department lacks the evidence to prove either of those propositions beyond a reasonable doubt.
The investigators also considered whether Officer Salamoni’s second series of shots was a prosecutable Fourth Amendment violation. Although the videos show that Sterling’s right hand was not in or near his right pocket, Sterling was continuing to move, even after being shot three times and being told again not to move by Officer Lake. Meanwhile, the officers were behind Sterling, and Officer Salamoni was lying on the ground, facing Sterling’s back. Given these circumstances, the evidence cannot establish beyond a reasonable doubt that it did not appear to Officer Salamoni that Sterling was reaching for his pocket. Nor could the Department prove that the officer’s conduct was willful.
Conclusion
In sum, after extensive investigation into this tragic event, career Justice Department prosecutors have concluded that the evidence is insufficient to prove beyond a reasonable doubt that Officers Salamoni and Lake willfully violated Sterling’s civil rights. Given the totality of the circumstances – that the officers had been fighting with Sterling and had attempted less-than-lethal methods of control; that they knew Sterling had a weapon; that Sterling had reportedly brandished a gun at another person; and that Sterling was much larger and stronger than either officer – the Department cannot prove either that the shots were unconstitutional or that they were willful. Moreover, two different, independent experts opined that this shooting was not unreasonable given the circumstances. With respect to the first series of shots, the experts assessed that it was not unreasonable for Officer Salamoni to use lethal force, in light of all of the circumstances referenced above. With respect to the second series of shots, both experts emphasized that officers are trained to eliminate a threat, and that Sterling appeared to pose a threat because he was still moving and his right hand was not visible to Officer Salamoni. Accordingly, the federal investigation into this incident has been closed without prosecution. Federal officials intend to provide the investigative file to the Louisiana Attorney General’s Office, which intends to conduct its own investigation into whether the conduct at issue in this investigation violated state law.
In this case, the U.S. Attorney’s Office for the Middle District of Louisiana, the Justice Department’s Civil Rights Division, and the FBI each devoted significant time and resources to investigating the circumstances surrounding Sterling’s death and to completing a thorough analysis of the evidence gathered. The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The Department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Jury Convicts Gentilly Resident of Laundering Money for Heroin Dealers and Other Financial CrimesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that yesterday a federal jury convicted CORNELL PENDLETON, age 51, of the Gentilly neighborhood in New Orleans, for his role in laundering money on behalf of heroin dealers in the New Orleans area. Following a weeklong trial, the jury found PENDLETON guilty of conspiracy to commit money laundering; numerous substantive money laundering offenses involving the illegal purchase of real property and cars on behalf of heroin dealers; structuring his cash deposits; and two counts of providing false statements on loan applications. The jury also found that PENDLETON must forfeit over $1 million in cash and assets that were involved in his criminal activities.
According to the evidence at trial, the case against PENDLETON stemmed from a Drug Enforcement Administration investigation of a heroin-trafficking organization that operated in New Orleans East. The original investigation, nicknamed “Wild Wild East,” began in 2013 and has since resulted in the conviction of twelve New Orleans-based heroin dealers.
Through that investigation, the government began developing evidence that PENDLETON was helping drug dealers to acquire high-end assets in an effort to conceal the proceeds of their drug operation. These high-end assets included multiple cars, such as Mercedes, Porsche, Corvette, Bentley, and BMW; residential and investment real estate; jewelry, including Rolex watches; and other expensive items. PENDLETON’s scheme involved purchasing assets in his own name, and then allowing the drug dealers to use the assets while making sizable, off-the-books payments to PENDLETON. Once an asset was fully paid off, PENDLETON would often transfer title of the asset back to the drug dealer. PENDLETON was paid entirely in cash for his assistance in acquiring these assets. The evidence showed that, over a two and a half year period between 2012 and 2014, PENDLETON deposited over $1.5 million in cash into four bank accounts, while knowing that the cash included illegal drug proceeds.
PENDLETON faces a maximum sentence of twenty years in prison for his crimes. Sentencing before Judge Jane Triche Milazzo is scheduled for August 10, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Kenner Police Department, and Border Patrol in investigating this matter. Assistant United States Attorneys Brandon S. Long and Theodore Carter are responsible for the prosecution.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Lance Crick (864) 282-2105
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following, and the defendants have since been arrested:
Hartsville Men Arrested Following a Federal Indictment for Possessing a Gun after being Convicted of a Felony, Possession with Intent to Distribute Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Eddie Terrell McCoy, age 28, and Antonio Darnell Rivers, age 41, both of Hartsville, were charged in an eleven-count indictment. McCoy was charged with possession with intent to distribute cocaine, a violation of Title 21, United States Code, Section 841(a)(1), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 20 years; Rivers was charged with possession of a firearm after being convicted of a felony, a violation of Title 18, United States Code, Section 922(g)(1), the maximum possible penalty of which is, a maximum fine of $250,000.00 and/or imprisonment of 15 years to Life; possession with intent to distribute and distributing cocaine, a violation of Title 21, United States Code, Section 841(A)(1), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 40 years; and possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 5 years consecutive to any other sentence received and twenty-five years to life for any second or subsequent 924(c)(1)(A) conviction.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Darlington County Sheriff’s Office, Florence County Sheriff’s Office, Hartsville Police Department and Darlington Police Department. The case has been assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Darlington Men Arrested Following a Federal Indictment for Possession with Intent to Distribute and Distribution of Crack Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Trevor Jarad Davis, age 27, and Daniel Jamal Gavins, age 25, both of Darlington, were charged in an eight-count indictment. Davis was charged with possession with intent to distribute and distribution of crack cocaine, a violation of Title 21, United States Code, Section 841(a)(1), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 20 years; Gavins was charged with possession with intent to distribute and distributing crack cocaine, a violation of Title 21, United States Code, Section 841(A)(1), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 40 years; and possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A), the maximum penalty of which is a maximum fine of $250,000.00 and/or imprisonment of 5 years consecutive to any other sentence.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Darlington County Sheriff’s Office, Florence County Sheriff’s Office, Hartsville Police Department and Darlington Police Department. The case has been assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Hartsville Man Arrested Following a Federal Indictment for Possession With Intent to Distribute Crack Cocaine. Quinten Lonnel Richardson, age 28, of Hartsville, South Carolina, was charged in a three-count indictment with Possession with Intent to Distribute Crack Cocaine, a violation of Title 21, United States Code, Section 841(a)(1). The maximum possible penalty Richardson could receive is a maximum fine of $5,000,000.00 and/or imprisonment of 40 years to Life. Richardson was arrested on April 3, 2017.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Darlington County Sheriff’s Office, Florence County Sheriff’s Office, Hartsville Police Department and Darlington Police Department. The case has been assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Two Darlington County Men Arrested following a Federal Indictment for Felon in Possession of a Firearm and Possession of a Firearm in Furtherance of a Crime of Violence. Kenneth Eric Coe, Jr., age 23, of Timmonsville, and Jaquan Latrel Samuel, age 30, of Hartsville, were charged in a five-count indictment. Both Coe and Samuel were charged with possession and brandishing of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A), the maximum penalty of which is a fine of $250,000.00 and/or 7 years to life consecutive to any other sentence imposed. Samuel, was additionally charged with felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1), the maximum penalty of which is a fine of $250,000.00 and/or 10 years to life imprisonment.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Darlington County Sheriff’s Office, Florence County Sheriff’s Office, Hartsville Police Department and Darlington Police Department. The case has been assigned to Assistant United States Attorney Lauren L. Hummel, of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####Fayetteville Man Sentenced for Trafficking in Counterfeit GoodsRead the Press Release
NEW BERN – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina announces that today in Federal court, United States District Judge Louise W. Flanagan sentenced KURT MICHAEL KROL, 36, of Fayetteville, North Carolina to 72 months imprisonment, followed by 3 years of supervised release. Additionally, KROL agreed to forfeit to the government all counterfeit articles seized; proceeds of $156,932 seized from four BB&T bank accounts, proceeds of $51,988 seized from two USAA bank accounts; a residence located in Fayetteville; a residence located in Raeford; and a money judgment in the amount of the gross proceeds of the offense.
KROL was named in a Criminal Information filed on October 14, 2015, which charged him with trafficking in counterfeit goods from September 2012 to February 2015. On December 15, 2015, KROL pled guilty to the charge.
The investigation revealed that on January 22, 2008, KROL founded Universal Mania, Inc. (UM), an internet based marketplace for consumer electronics located in Fayetteville. KROL, president and CEO of UM, initially sold legitimate consumer electronic equipment; however, in 2011 or 2012, he was introduced to a representative of a company in Hong Kong, China, that sold counterfeit Otterbox products (OBP). Thereafter, KROL began purchasing counterfeit OBP from that company.
On October 31, 2012, Otterbox alleged that UM had infringed on their federal trademark registrations. UM subsequently filed a Complaint for Declaratory Judgment against Otterbox in the United States District Court for the Eastern District of North Carolina on February 8, 2013. Otterbox filed a counter-claim on April 12, 2013. On December 17, 2013, the court entered a Consent Judgment ordering UM to pay Otterbox $200,000 for trademark infringement. The court also entered a permanent injunction, prohibiting UM from the unauthorized use of any Otterbox trademark.
However, the investigation discovered that KROL met with a representative from the Chinese company in Fayetteville to find out what products they could counterfeit. KROL then imported counterfeit products including L’Oreal (Clarisonic), HSI Professional, and Conair (Babyliss) beauty products; Garmin products; Choon’s Design (Rainbow Loom) toys; Philips (Sonicare) products; Zing Anything bottles; Harman International Industries (JBL), LG, and Bose speakers and/or headphones; and Spectrum Brands FURminator dog brushes. The investigation found that 2,047 shipments originating in Hong Kong were addressed to KROL between August 2012 and February 2015.
KROL sold counterfeit merchandise, as well as merchandise from legitimate distributors on the internet. He comingled the sales proceeds from the counterfeit products with proceeds from legitimate sales. When one internet business discovered UM was selling counterfeit items through its website, they terminated UM’s accounts. KROL then solicited UM employees, friends, and family members to establish accounts on the website to sell UM’s counterfeit products.
“Defendants such as Krol while trafficking in counterfeit goods, undermine our fair trade and free market system to generate illicit proceeds,” said HSI North Carolina Assistant Special Agent in Charge Christopher Healy, “This significant sentence will let people, such as Krol, know that this illegal activity impacts not only our national economy but the local economies where these illegal traffickers operate.”
Between October 2013 and January 2015, agents with the Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) seized counterfeit items from several different locations. During the execution of a search warrant at UM on February 25, 2015, HSI agents seized multiple counterfeit products and KROL acknowledged that he sold counterfeit items, despite the Otterbox civil judgment against him, the receipt of numerous seizure notices from DHS, and warnings from an online distributor.
This investigation was conducted by HSI in Raleigh.
Dubois Man Charged with Filing False Tax ReturnsRead the Press Release
PITTSBURGH – A resident of Dubois, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Filing False Tax Returns, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on May 2, named Gary E. Mills as the sole defendant.
According to the indictment, on April 15, 2015, April 15, 2014, and August 1, 2014, Mills filed false joint tax returns by intentionally under reporting his and his wife’s income to the IRS.
The law provides for a maximum total sentence of nine years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations and the U.S. Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delaware Man Sentenced to 156 Months in Prison for Distribution of Child PornographyRead the Press Release
WASHINGTON – A Wilmington, Delaware, man was sentenced to 156 months in prison today for distributing child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney David C. Weiss of the District of Delaware.
Roy Harvender Jr., 59, pleaded guilty on Oct. 5, 2016, before U.S. District Court Judge Leonard P. Stark of the District of Delaware to one count of distribution of child pornography for his membership in a website dedicated to the sexual exploitation of children. Judge Stark also ordered Harvender to serve 10 years of supervised release and to pay $5,000 in restitution to each of this victims.
According to admissions made in connection with the plea agreement, the FBI identified Harvender during the investigation of an online bulletin board whose primary purpose was the advertisement and distribution of child pornography. This website had a total of over 105,000 users and required its members to continually share child pornography in order to gain and keep membership.
Harvender admitted that he was an active member of this website for a period of several months in 2014 and made approximately 190 postings to the board, including images and videos of child pornography and links to images and videos of child pornography. After identifying , agents executed a search warrant at his residence and found images of child pornography on electronic devices they seized. was interviewed by FBI agents and admitted that he uploaded child pornography images to other users of the website and that he owned the devices that contained child pornography.
Trial Attorney Kathryn C. Furtado of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware prosecuted this case. The FBI’s Baltimore Division investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Delaware Man Sentenced to 156 Months in Prison for Distribution of Child PornographyRead the Press Release
A Wilmington, Delaware, man was sentenced to 156 months in prison today for distributing child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney David C. Weiss of the District of Delaware.
Roy Harvender Jr., 59, pleaded guilty on Oct. 5, 2016, before U.S. District Court Judge Leonard P. Stark of the District of Delaware to one count of distribution of child pornography for his membership in a website dedicated to the sexual exploitation of children. Judge Stark also ordered Harvender to serve 10 years of supervised release and to pay $5,000 in restitution to each of his victims.
According to admissions made in connection with the plea agreement, the FBI identified Harvender during the investigation of an online bulletin board whose primary purpose was the advertisement and distribution of child pornography. This website had a total of over 105,000 users and required its members to continually share child pornography in order to gain and keep membership.
Harvender admitted that he was an active member of this website for a period of several months in 2014 and made approximately 190 postings to the board, including images and videos of child pornography and links to images and videos of child pornography. After identifying Harvender, agents executed a search warrant at his residence and found images of child pornography on electronic devices they seized. Harvender was interviewed by FBI agents and admitted that he uploaded child pornography images to other users of the website and that he owned the devices that contained child pornography.
Trial Attorney Kathryn C. Furtado of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware prosecuted this case. The FBI’s Baltimore Division investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Defendant Willie Brothers, Jr. Sentenced to 9 Years for Distributing Fentanyl-Laced HeroinRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Willie Brothers, Jr., of Wilmington, was sentenced to 9 years’ incarceration following a conviction for conspiracy to distribute heroin. Brothers’ co-defendant, Raheem Ridley, is scheduled to be sentenced next month.
According to documents filed and statements made in open court, Brothers led a group of people who packaged and sold approximately 40,000 bags of heroin mixed with Fentanyl. Fentanyl is an opiate that is 50 times stronger than heroin and largely responsible for a dramatic increase in overdose deaths in the region. During his conspiracy with Ridley, Brothers provided Ridley with a handgun that had been used in multiple shootings in the city of Wilmington, including a homicide on October 14, 2015. When Brothers was arrested by the members of the Wilmington Police Department on November 4, 2015, four firearms were found in the car he was driving. Two of those firearms were associated with multiple prior shootings in Wilmington, including a shooting on November 2, 2015, when a 13-year-old girl was struck by a stray bullet.
Acting United States Attorney David C. Weiss said, “Drug dealers who use firearms and sell Fentanyl-laced heroin have no regard for human life. These defendants are the top priority for the New Castle County HIDTA. Together we are committed to investigating, prosecuting and removing these individuals from our community.”
This case is the result of an investigation conducted by multiple agencies in the New Castle County HIDTA Group. The FBI Safe Streets Drug Taskforce and Cecil County Drug Taskforce led the investigation with significant assistance from the Delaware State Police, Wilmington Police Department and the Delaware Attorney General’s Office. The case was prosecuted by Special Assistant United States Attorney Christopher L. de Barrena-Sarobe and Assistant United States Attorney Shawn A. Weede.
Convicted Felon in Possession of a Firearm Sentenced to 120 Months in Federal PrisonRead the Press Release
Memphis, TN – Jamie Thomas, 29, was sentenced to 120 months in federal prison for being a felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on September 10, 2014, Memphis Police Department (MPD) detectives conducted a traffic stop at Nabors Way and Collins Chapel Circle. As officers approached Thomas’ vehicle he placed something in his mouth, locked the doors and rolled up the windows, to a point where only an arm could reach inside. The defendant presented law enforcement with his license but refused to turn off the vehicle.
After disobeying law enforcement’s directives to turn off the engine, the officer reached through the passenger side window, unlocked the door and turned off the vehicle. The defendant restarted the engine and accelerated the vehicle, while he and the detective struggled over control of the vehicle. Described as wearing a pink hat and pink shirt, the defendant jumped from the vehicle and ran. The vehicle was driverless, as the detective was in the passenger seat. The detective jumped from the passenger seat to the driver seat to stop the moving vehicle. While fleeing on foot, the defendant tossed a Smith and Wesson .40 caliber pistol.
During his flight, Thomas unknowingly flagged down an undercover detective who was driving an unmarked vehicle. The defendant agreed to pay the undercover detective $200 to take him out of the area. After driving for a short time, the detective advised the defendant that he was under arrest. He then attempted to handcuff the defendant, but Thomas was able to escape again. The defendant was subsequently arrested a short time later at his residence.
When officers with the Project Safe Neighborhoods (PSN) Task Force attempted to arrest the defendant on the federal warrant relating to the September 10, 2014, firearm possession, detectives observed the defendant exit a window and jump into another window of a second floor apartment building while attempting to escape. The defendant was arrested after making it to the ground floor.
The case was investigated by PSN Task Force, which includes the U.S. Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through aggressive investigation and prosecution. Assistant U.S. Attorneys Marques Young and Murre Martindale prosecuted this case on the government’s behalf.
Canton man indicted on drug and firearms chargesRead the Press Release
A Canton man was indicted on federal drug and firearms charges, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Jack D. Wise, 39, was indicted on three counts of distribution of crack cocaine, one count of possession with intent to distribute at least 28 grams of crack cocaine, possession of firearms by a convicted felon, and possession of firearms in furtherance of trafficking of crack cocaine.
Wise was arrested on March 9 by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), members of the Canton Police Department Narcotics Unit and Stark County Sheriff’s Office.
Wise sold crack cocaine on at least three occasions in 2017. On March 9, he had 28 grams of crack cocaine, two firearms and more than 170 rounds ammunition, despite a previous conviction in Stark County Common Pleas Court for trafficking in LSD, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the ATF, Canton Police Department and the Stark County Sheriff’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canadian Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Lawrence Hong, 21, of Canada, pleaded guilty to possession of a firearm by an unlawful user of a controlled substance, before U.S. District Judge Richard J. Arcara. The charge carries a penalty of up to 10 years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that on January 21, 2017, the defendant presented himself for inspection as a non-immigrant visitor to the United States from Canada at the Peace Bridge Port of Entry. Hong was traveling alone in a 2016 Volkswagen that had an Ontario registration. The defendant told the Customs and Border Protection (CBP) officer performing the primary inspection that he was going to Buffalo to shop for a few hours at the mall and that he had nothing to declare. Despite his professed planned shopping trip, defendant had no explanation for the presence of his pet dog in the vehicle with him nor could the defendant provide details of what he intended to do with the dog while he was shopping.
Hong was referred for a secondary inspection during which a CBP officer ran a narcotics detection K-9 dog on the defendant’s vehicle. The officer opened the driver's side door of the vehicle and discovered a 9 mm handgun. During a full inspection the vehicle, $1,122.00 in cash. a piece of paper containing Xanax pills, hypodermic needles, and elastic bands were discovered.
Also during the secondary inspection, Hong told an officer that he was going to Ohio to purchase another firearm. The defendant also told the officer that the firearm discovered in his vehicle was previously purchased in the United States and illegally smuggled into Canada. Hong further admitted that he was a heroin addict who was undergoing methadone treatment.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for August 11, 2017, at 12:30 p.m. before Judge Arcara.
CPA Sentenced to 6 years in Federal Prison for Embezzling $7.2 Million from Alanis Morissette and Other CelebritiesRead the Press Release
LOS ANGELES – A certified public accountant who was the business manager for singer-songwriter Alanis Morissette, as well as other well-known entertainment and sports figures, was sentenced today to six years in federal prison for stealing approximately $7.2 million from his clients.
Jonathan Todd Schwartz, 48, a Westlake Village resident who was living in Agoura Hills at the time of the criminal conduct, was sentenced this evening by United States District Judge Dolly M. Gee.
The sentencing follows Schwartz’s guilty pleas in February to wire fraud and tax fraud charges.
Schwartz was a member of GSO Business Management, LLC, a business management firm based in Sherman Oaks that provides financial guidance to high-net worth clients. Schwartz admitted in court that he stole his clients’ money and falsified account records to conceal the embezzlement.
Judge Gee described Schwartz’s crimes as “insidious” and “audacious,” noting that they caused “grave economic and psychological harm” to Schwartz’s victims, whose lives were “upended by the financial turmoil [he] caused.”
Schwartz admitted that between May 2010 and January 2014, he withdrew approximately $4.8 million belonging to Ms. Morissette without her knowledge or authorization. Schwartz further admitted that he falsely labeled the unauthorized cash withdrawals as “sundry/personal expenses” on the accounting records GSO maintained for Morissette. When confronted about the missing funds, Schwartz stated that the money was an investment in illegal marijuana “grow” businesses, a statement that Schwartz later admitted was false.
In court today, Ms. Morissette told Judge Gee that Schwartz had stolen from her in a “long, drawn-out, calculated and sinister manner.” Ms. Morissette said Schwartz not only took from nearly $5 million in cash from her, but he also stole her dreams for a time when she would be able to focus on her family and the causes that are important to her.
Because of his position as a business manager, Schwartz had access to his clients’ bank accounts so he could pay their bills and obtain cash for them. As part of embezzlement scheme, Schwartz submitted cash-withdrawal requests to banks that were not authorized by his clients, and he either had the cash delivered to him or he picked up the money himself. Schwartz was able to conceal the embezzlements because the bank statements were sent to GSO, and not to the clients. GSO prepared monthly statements for the clients based on a ledger of expenses that GSO bookkeepers maintained, and those statements were false because Schwartz had provided false information to the bookkeepers and caused other pertinent information to be deleted from the monthly statements.
“This defendant abused his clients’ trust by stealing from them, causing significant harm not only to these clients, but the firm which employed him,” said Acting United States Attorney Sandra R. Brown. “Embezzlers think that, by virtue of their positions of trust, they can alter financial records to hide their crimes. This case demonstrates that they are wrong.”
In addition to the nearly $5 million stolen from Ms. Morissette, Schwartz admitted that he embezzled more than $1 million from another client and attempted to conceal the theft by claiming the cash withdrawals were used for renovations to the client’s home. Schwartz further admitted that he embezzled $737,500 from another client and forged that client’s signature on at least two cash receipts.
“Mr. Schwartz used his clients’ funds as a personal ATM machine and, in doing so, financially victimized his clients and colleagues,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Individuals have a right to feel secure when placing their trust, as well as large sums of money, with financial managers, and the FBI will continue to do its part by holding accountable those who violate that trust and break the law.”
Schwartz pleaded guilty to filing a false tax return for the year 2012 and admitted that he failed to report nearly $1 million in income that year. But Schwartz also admitted in court that he did not report any of the approximately $7.2 million he obtained through his embezzlement scheme to the IRS. As a result of the entire scheme, Schwartz acknowledges that he owes the IRS more than $1.7 million in federal income taxes.
“Mr. Schwartz abused the trust placed in him as a CPA and Hollywood business manager in order to line his own pockets,” stated IRS Criminal Investigation Special Agent in Charge R. Damon Rowe. “As today’s sentence shows, no matter what the source of income, all income is taxable – including money you steal from your employer and clients to fund a lavish lifestyle.”
In addition to the six-year prison term, which will be followed by three years of supervised release, Judge Gee ordered Schwartz to pay $8,657,268 in restitution.
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. GSO Business Management, LLC fully cooperated during the investigation. The GSO clients who were victimized as a result of Schwartz’s conduct have been reimbursed through payments made by insurance carriers and the company itself.
Buffalo Man Pleads Guilty to Selling Heroin Which Resulted in A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Damian Hicks-Bailey, 22, of Buffalo, NY, pleaded guilty to possession with intent to distribute, and distribution of, heroin, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that on July 1, 2015, the West Seneca, NY, Police Department responded to a 911 call from a woman screaming that her son was dead. Police officers responded and found an individual dead inside an apartment at 4175 Seneca Street. Officers recovered an uncapped hypodermic needle (next to the victim), a spoon with a dried white cotton ball/filter (next to the victim), and an empty plastic bag. The spoon and cotton ball later tested positive for heroin and the empty plastic bag contained the defendant’s DNA. The victim’s mother, who lived with her son, told officers she last spoke with her son the night before at approximately 9:30 p.m.
Officers subsequently reviewed a string of text messages on the victim’s cell phone during which he discussed purchasing drugs from an individual. The text messages led police to a 7-11 store on Seneca Street where surveillance images captured the defendant exchanging the drugs with the victim at around 1:30 a.m. on the day of his death.
The plea is the result of investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the West Seneca Police Department, under the direction of Chief Daniel Denz.
Sentencing is scheduled for August 12, 2017, at 12:30 p.m. before Judge Arcara.
Brothers sent to prison for selling heroin and fentanyl; sales continued after overdose deathRead the Press Release
Two brothers were each sentenced to six years in prison for conspiring to bring large amounts of heroin and fentanyl to Northeast Ohio from Connecticut, said Acting U.S. Attorney David A. Sierleja and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Abiemelec Vega, 26, of Cleveland, was sentenced to 74 months in prison. Mizraim Vega, 28, of South Euclid, was sentenced to 72 months in prison. Both were previously found guilty of conspiracy to possess with intent to distribute heroin, acetylfentanyl and fentanyl, as well as additional counts of distribution of heroin, fentanyl and acetylfentanyl in 2016.
According to court documents, Abimelec Vega identified himself as a member of the Latin Kings gang and could obtain large shipments of heroin and fentanyl from another Latin King member.
According to court documents, the Vegas sold 80 grams of heroin for $8,000 on Aug. 26, 2016. Mizraim Vega said: “The one thing I’ll tell is to make sure to cut it (dilute the heroin). That stuff…you can’t send it to the street like that, it’s too strong. That stuff could kill someone, bro!”
On Sept. 3, 2016, Abimelec Vega informed a source that he was changing phones because someone had died from heroin or fentanyl he had sold, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the FBI.
Broken Arrow Woman Sentenced to 60 Months Probation for Money Laundering ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that THERESA JO DAVIS, age 62, of Broken Arrow, Oklahoma, was sentenced to 5 years probation for MONEY LAUNDERING CONSPIRACY, in violation of Title 18, United States Code, Section 1956(h).
The Second Superseding Indictment alleged that beginning in or about December 2013, and continuing until in or about April 2016, the Defendant conspired with others, to conduct financial transactions affecting interstate commerce and involving the proceeds of unlawful activity by depositing large sums of United States Currency knowing that the transactions were designed to conceal the nature and source of the proceeds of unlawful activity and while knowing that the currency involved in the transactions represented proceeds of unlawful activity.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Shannon Henson represented the United States.
Auburn Man Sentenced to Eight Years for Distributing HeroinRead the Press Release
Contact: Jamie R. Guerrette
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Darnell Robinson, a/k/a “Butta,” age 30, of Auburn, Maine was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to eight years in prison and three years of supervised release for distributing heroin. He pled guilty on January 12, 2017.
Court records reveal that on April 27, 2016, a witness working with federal agents purchased $1,000 worth of heroin from Robinson in Auburn. Shortly thereafter, law enforcement agents seized heroin from a customer who acquired it from Robinson.
This case was investigated by the U.S. Drug Enforcement Administration, the Maine State Police, the Lewiston and Auburn Police Departments and the Maine Drug Enforcement Agency.
Armed Career Criminal Sentenced to Twenty Years in Federal PrisonRead the Press Release
CHATTANOOGA, Tenn. – On May 3, 2017, Angelo Goldston, 37, of Cleveland, Tennessee, was sentenced to serve 240 months in prison by the Honorable Harry S. Mattice, Jr., U.S. District Judge. Upon his release from prison, Goldston will be under the supervision of the U.S. Probation Office for five years.
After a January 2017 jury trial, Goldston was convicted of unlawfully possessing a firearm. His sentence was enhanced based on his seven prior convictions for serious drug offenses and because the firearm he possessed was a sawed-off shotgun. He was sentenced under the Armed Career Criminal Act (ACCA).
According to eyewitnesses who testified at his trial, Goldston displayed the sawed-off shotgun during a heated exchange with an unarmed man as children stood by and watched. The altercation took place in the middle of the day in a residential neighborhood in Cleveland.
U.S. Attorney Nancy Stallard Harr said, “Goldston’s sentence reflects the danger and risk of harm his conduct posed to society. The Sixth Circuit Court of Appeals previously recognized that sawed-off shotguns, by their very nature, are extremely dangerous and serve virtually no purpose other than furtherance of illegal activity. That danger is heightened when career criminals, such as Goldston, possess these types of weapons.”
"The sentencing illustrates the positive effect of the resources provided by ATF and our law enforcement partners to combat the violent crime. ATF’s priority is to provide the safe environment for the public," stated Steven Gerido, Special Agent in Charge, Alcohol, Tobacco, Firearms and Explosives.
The indictment and subsequent conviction of Goldston was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, 10th Judicial District Drug & Violent Crime Task Force, and Cleveland Police Department. Assistant U.S. Attorneys Michael D. Porter and Kyle J. Wilson represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Allen County, Kentucky, Resident Pleads Guilty to Malicious Destruction of Property by Fire and Mail FraudRead the Press Release
The set fire resulted in the death of a firefighter
BOWLING GREEN, Ky. – An Adair County, Kentucky resident pleaded guilty yesterday in United States District Court, before District Judge Greg N. Stivers, to charges of setting a fire to her rental home, in order to obtain money, through false pretenses, from a renter’s insurance policy purchased prior to setting the fire, announced United States Attorney John E. Kuhn, Jr.
Brandi Pritchard a/k/a Brandi Waggener, 41, of Columbia, Kentucky, was charged with co-defendant Steve Allen Pritchard a/k/a “Boo” Pritchard, in a grand jury superseding indictment on November 9, 2016.
Pritchard admitted in court that on June 30, 2011, she maliciously damaged and destroyed, by means of fire, the building at 3043 Liberty Road, in Columbia, Kentucky. The fire resulted in the death of a public safety official performing duties as direct and proximate result of the fire.
Specifically, Brandi Pritchard and Steve Allen Pritchard resided in a rental home at 3043 Liberty Road, Columbia, Kentucky. On June 24, 2011, Brandi Pritchard purchased a $50,000 renter’s insurance policy from Grange Insurance Company. When Steve Allen Pritchard found out about the renter’s insurance policy, he allegedly suggested that the couple could intentionally set fire to their residence to collect on the insurance policy. Steve Allen Pritchard allegedly told Brandi Pritchard that he had previously started fires to collect insurance proceeds.
On June 29, 2011, Steve Pritchard sent Brandi Pritchard’s two children and the family dog to stay with friends for the night. In the early morning hours of June 30, 2011, Steve Pritchard allegedly set fire to the residence, and then drove Brandi Pritchard to her job in Somerset. Brandi Pritchard knew that Steve Pritchard had set the fire before they left the house to drive to Somerset.
The fire destroyed the Pritchard’s residence, and during the course of the fighting the fire, Columbia Fire Department Assistant Fire Chief Charles Sparks suffered a heart attack. Assistant Chief Sparks never recovered and died on July 8, 2011 as a result of injuries incurred performing his duties on June 30, 2011. Steve and Brandi Pritchard subsequently claimed that they were not at home when the fire started, and speculated that the fire could have started due to electrical problems.
After the fire, Brandi Pritchard submitted an insurance claim to Grange Insurance Company. That claim falsely listed numerous items that the Pritchard’s did not own, and overstated the value of other items. Steve Pritchard allegedly assisted Brandi Pritchard in preparing that false insurance claim, and shared the proceeds of the fraud when Grange Insurance Company paid Brandi Pritchard the full value of the policy. Grange Insurance Company mailed checks to Brandi Pritchard on July 16, 2011, and September 3, 2011, in furtherance of the scheme.
If convicted at trial, Pritchard could be sentenced to no less than seven years and up to life in prison for count 1, and no more than 20 years in prison for count two. Payment of restitution in the amount of $50,000 is a requirement of the plea agreement.
This case is being prosecuted by Assistant United States Attorneys David Weiser and Nute Bonner and is being investigated by the Federal Bureau of Investigation.
Albany Man Sentenced to 60 Months on Firearm and Drug Trafficking ChargesRead the Press Release
ALBANY, NEW YORK – Calvin Strong, age 25, of Albany, New York, was sentenced today to 60 months of imprisonment for possessing a handgun and possessing with the intent to distribute cocaine, crack cocaine, and heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
As part of his December 7, 2016 guilty plea, Strong admitted that on October 18, 2015, while inside of an apartment in Troy, New York, he unlawfully possessed a handgun and quantities of cocaine, crack cocaine, and heroin, all with the intent to distribute the drugs.
Senior United States District Judge Thomas J. McAvoy also imposed a 6-year term of supervised release, which will start after Strong is released from prison.
This case was investigated by the ATF and the Albany Police Department, and was prosecuted by Assistant U.S. Attorney Richard Belliss.
Akron man with domestic violence and firearms convictions indicted for illegally having rifle and ammunitionRead the Press Release
An Akron man was indicted for being a felon in possession of a firearm, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Rocky L. Wodicka, II, 35, had a Predator Arms 5.56 NATO PCS15 rifle and ammunition on March 3. Wodicka is prohibited for having firearms because of previous convictions in the Summit County Court of Common Pleas for domestic violence and having a weapon under disability, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the Akron Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
42-Count Federal Indictment UnsealedRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that a 42-count federal indictment was unsealed against nine defendants, all from the Columbia area. The nine individuals indicted include: Christopher Donnell Brown, age 38 , Delvaron Mufeed Jonel Thomas, age 34, Brian Lamark Gunter, age 26, Frederick Raheem Gunter, age 24, Meldrick Leon Owens, age 27, Ernest Gerod Sims, age 43, Reginald Yvon Jones, age 52, Stacey Andre George, age 32, and Warren Spruill, Jr., age 32. All the defendants are in custody except Brian Gunter and Frederick Raheem Gunter, who are fugitives and are being sought by law enforcement.
The indictment charged all the defendants with being in a conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and 280 grams or more of cocaine base, a violation of 21 U.S.C. § 846. The maximum penalty for this charge is life imprisonment and a maximum fine of $20,000,000.00. All the defendants are also charged with multiple counts of use of a telephone to facilitate a drug trafficking crime, a violation of 21 U.S.C. § 843(b). The maximum penalty for this offense is 8 years imprisonment and a maximum fine of $250,000.00.
Brown is also charged with eleven counts of distribution of crack cocaine on different days, a violation of 21 U.S.C. § 841(a)(1). The maximum penalty for these charges is life imprisonment and a maximum fine of $20,000,000.00.
Sims is also charged in additional counts for distribution of crack cocaine, a violation of 21 U.S.C. § 841(a)(1); being a felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1); and, possession of a firearm during a drug trafficking crime, a violation of 18 U.S.C. § 924(c). The maximum penalty for these charges is life imprisonment and a maximum fine of $1,000,000.00.
The United States Attorney stated all charges in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
The case was investigated by agents of the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, South Carolina Law Enforcement Division, Richland County Sheriff's Office and City of Columbia Police Department and is assigned to Assistant United States Attorney William K. Witherspoon of the Columbia office for prosecution.
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Women Sentenced to Imprisonment for Conspiring with Tax Preparer to File More Than $1.5 Million in Fraudulent RefundsRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Chief United States District Judge James C. Dever III sentenced alicia johnson jenkins, 35, of Kinston, to 60 months imprisonment followed by 3 years of supervised released and was ordered to pay $1,759,830 to the IRS. KIAWANNA MONIKA LANGLEY, 33, of Greenville, was sentenced to 24 months imprisonment, followed by 3 years supervised release, and ordered to pay $20,322 in restitution to the IRS. On November 7, 2016, JENKINS and LANGLEY pled guilty to Conspiracy to Defraud the United States With Respect to Claims.
The Indictment alleged that JENKINS and LANGLEY conspired with Isaac Augustus Blount, III, and others, to file false income tax returns (Forms 1040 and 1040A) with the Internal Revenue Service for tax years 2009, 2010, 2011, and 2012. During the course of the scheme, LANGLEY would refer clients to JENKINS, who would prepare false W-2 forms which reflected false income and withholdings amounts. JENKINS would then refer the clients to Blount, who prepared and filed the false income tax returns electronically through his tax business, Enriched Tax Services in Greenville, North Carolina. Based on the false information in the returns, the clients were issued tax refunds to which they were not entitled. JENKINS, LANGLEY, Blount, and others usually split $1,500.00 in cash from each refund check.
Blount pled guilty to False Claims Against the United States and False Statements Related to Health Care Matters on June 20, 2016. On November 9, 2016, Chief Judge Dever sentenced Blount to a total of 27 months imprisonment, 3 years supervised release, and ordered to pay restitution in the amount of $1,645,788.00 to the Internal Revenue Service and $131,915.68 to the North Carolina Fund for Medical Assistance.
“Individuals like Langley and Jenkins who commit refund fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Special Agent in Charge Thomas J. Holloman III of the IRS-Criminal Investigation. “These individuals demonstrated a blatant disregard of the integrity of the United States tax system. IRS-Criminal Investigation remains committed to the pursuit of refund fraud and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation and the North Carolina State Bureau of Investigation, Medicaid Criminal Investigations Unit. Assistant United States Attorney Susan Menzer handled the case on behalf of the Government.
Woman Arrested for Use of Arson or ExplosivesRead the Press Release
SAN JUAN, Puerto Rico– Today, United States Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint against Nina Droz Franco, charging her for damaging or attempting to damage by means of fire a building engaged in activity affecting interstate commerce, in violation of Title 18, United States Code, Section 844(i), announced United States Attorney Rosa Emilia Rodríguez-Vélez. ATF is in charge of the investigation.
According to the information contained in the complaint, yesterday there were numerous protests in the San Juan Metro area, including on Ponce de Leon Street in Hato Rey-- San Juan, Puerto Rico. During the course of the protest on Ponce de Leon Street, numerous individuals vandalized the Popular Center building. This building houses various commercial establishments engaged in interstate commerce, including a bank and food establishments. After several individuals broke windows of the building, two individuals approached one of the broken windows and attempted to light a fire. Specifically, a female and a male approached one of the broken windows and lit a flame. All of these events were captured on video.
A while after this incident, agents of the Puerto Rico Police Department (“PRPD”) arrested the female depicted in the video for lying on a public road, refusing to comply with agents’ instructions, and then assaulting one of the agents. PRPD agents ultimately identified this female as Nina Alejandra Droz-Franco. At the time she was arrested, Droz-Franco was wearing clothing matching the description of the clothing she wore while lighting the flame at the Popular Center building.
“Yesterday, what was planned as a lawful and peaceful demonstration and protest took an unfortunate turn. In collaboration with our state and federal partners we will continue to investigate and prosecute these violent crimes. We cannot, and will not, tolerate these actions to go on in a civilized society,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“The deplorable, reprehensible, and shameful acts of vandalism committed yesterday shall be thoroughly investigated and prosecuted to the full extent of the law. We warned that this administration would guarantee the rights of freedom of expression of all citizens, however those who violate the law shall not go unpunished,” said Wanda Vázquez-Garced, Secretary of the Puerto Rico Department of Justice.
“We want to call on people who can identify the demonstrators who used violence against law enforcement and damage to public and private buildings. Here we have a photo of one of the alleged people who thanks to the media could see his face. You can help us by calling 7873432020 confidentially or at policia.pr.gov,” said Henry Escalera, Deputy Superintendent of the Puerto Rico Police Department.
Assistant United States Attorney Alexander Alum is in charge of the prosecution of the case. If convicted, the penalties Droz-Franco is facing are a minimum term of imprisonment of five years, and a maximum term of 20 years, a supervised release term of not more than 3 years, and a fine not to exceed $250,000.
West Michigan Man Sentenced to Prison in Scheme to Defraud Herman Miller Inc. of $1.77 MillionRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Spring Lake resident Jerry Lee Akers, 54, was sentenced to serve 41 months in prison for his role in defrauding furniture manufacturer Herman Miller Inc. in a vendor invoicing scheme. The Honorable Paul L. Maloney, U.S. District Judge, imposed the sentence. In addition to the prison term, Akers was ordered to serve two years of supervised release; to pay $507,309.14 in restitution, and forfeited an additional $507,309.14 to the government.
Akers pled guilty to conspiracy to commit mail fraud and wire fraud. He admitted conspiring with Coopersville resident Kevin Grimm to devise and execute a scheme to defraud Herman Miller between June 2010 and July 2015 using Grimm’s company, KJ Gas Transportation, LLC. With Akers’s assistance on the inside of the company, Grimm submitted false and fraudulent invoices for payment for natural gas services he never provided. The fraud scheme generated $1,772,726 in payments to Grimm’s company.
Co-conspirator Kevin Grimm was indicted by a grand jury in February 2017 for his role in the offense. On March 21, 2017, Grimm pled guilty to conspiring with Akers to defraud Herman Miller Inc. in the scheme. Grimm will be sentenced by Judge Maloney on July 10, 2017.
Prior to Akers’s sentencing, Akers and Grimm collectively returned $1,265,417 of the illegal proceeds they obtained during the fraud. Akers’s sentence reflects, in part, the government’s recommendation that he receive a reduced sentence for his substantial assistance to law enforcement in the investigation and prosecution of Grimm.
"The FBI is committed to rooting out all fraud that endangers local businesses which make up the backbone of our American economy. We will continue to work with our partners at the U.S. Attorney’s Office to investigate fraudulent schemes and stop those who line their own pockets at the expense of others,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
This matter was investigated by the Grand Rapids office of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher O’Connor.
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Waimanalo Event Promoter Sentenced to Eight Years in Federal Prison for Fraud OffenseRead the Press Release
HONOLULU – Turk K. Cazimero, 57, a resident of Waimanalo, Oahu, was sentenced today to serve eight years in federal prison, and ordered to pay restitution of $857,760 for committing fraud offenses over a period of twelve years.
Elliot Enoki, Acting United States Attorney for the District of Hawaii, said that according to court documents, Cazimero operated Hawaiian Hurricane Productions, a company that promoted concerts and special events, including surfing competitions. Cazimero was charged in an indictment with wire fraud offenses involving the solicitation of money from "investors" between September 2013 and September 2015, by falsely promising that the money would be used to pay artists and costs associated with various concerts. Cazimero promised investors either high rates of return, ownership in the concerts, or the chance to be corporate sponsors. Cazimero also showed the investors posters that he had prepared, which made it appear that particular artists would perform concerts at certain venues, and that large corporations were sponsoring the concerts, when in fact the concerts had not actually been arranged.
In December 2016, Cazimero pled guilty, admitting that he had promoted fake concerts, and intended to use, and did use, money from investors to pay his own living expenses, or to pay back earlier investors who were owed money. Cazimero agreed that he obtained $901,000 from his victims, and agreed to the entry of an order directing him to pay restitution to eleven victims.
Cazimero was previously convicted in 2003 of Hawaii state securities fraud violations. Cazimero received probation on that charge, and began his federal violations shortly thereafter. At today’s sentencing before United States District Judge Derrick K. Watson, the government presented information that some of Cazimero’s victims took out home equity loans to generate money for him, lost their life savings and retirement accounts, and suffered emotional distress leading to depression and divorce. In imposing a 96 month sentence, Judge Watson noted that Cazimero has been committing ongoing fraud offenses for nearly two decades, and used the proceeds to support himself. Judge Watson ordered Cazimero into federal custody immediately to begin service of his sentence.
The case was investigated by the Federal Bureau of Investigation and the State of Hawaii, Department of Consumer and Commerce Affairs, Securities Enforcement Branch. The case was prosecuted by Assistant U.S. Attorney Larry Tong.
United States Intervenes in False Claims Act lawsuit Against UnitedHealth Group Inc. for Mischarging the Medicare Advantage and Prescription Drug ProgramsRead the Press Release
The United States has intervened and filed a complaint in a lawsuit against UnitedHealth Group Inc. (UHG) that alleges UHG obtained inflated risk adjustment payments based on untruthful and inaccurate information about the health status of beneficiaries enrolled in UHG’s largest Medicare Advantage Plan, UHC of California, the Justice Department announced today. Yesterday’s action follows the government’s intervention in February of this year in United State ex rel. Poehling v. UnitedHealth Group. Inc., a related lawsuit in the Central District of California that also alleges that UHG defrauded the Medicare Program. government is scheduled to file a complaint in that matter no later than May 16.
UHG is the nation’s largest Medicare Advantage Organization (MAO), with more than 50 Medicare Advantage and Drug Prescription plans providing healthcare services and prescription drug benefits to millions of Medicare beneficiaries throughout the United States. receives a monthly payment from Medicare for each beneficiary that is based, in significant part, on the health status of the beneficiary.
The complaint filed yesterday by the United States alleges that UHG knowingly disregarded information about beneficiaries’ medical conditions, which increased the payments UHG received from Medicare. In particular, the lawsuit contends that UHG funded chart reviews conducted by HealthCare Partners (HCP), one of the largest providers of services to UHG beneficiaries in California, to increase the risk adjustment payments received from the Medicare Program for beneficiaries under HCP’s care. However, UHG allegedly ignored information from these chart reviews about invalid diagnoses and thus avoided repaying Medicare monies to which it was not entitled.
“The intervention of the United States in this matter illustrates our commitment to ensure the integrity of the Medicare Part C program,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
“Medicare Advantage plans not only receive taxpayer-funded payments, but are intended for the health and welfare of the beneficiaries,” said Acting U.S. Attorney Sandra R. Brown for the Central District of California. “This action sends a warning that our office will continue to scrutinize and hold accountable Medicare Advantage insurers to safeguard the integrity of the Medicare program.”
The lawsuit was filed by James Swoben, a former employee of Senior Care Action Network (SCAN) Health Plan and a consultant to the risk adjustment industry. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims for government funds, and to receive a share of any recovery. The False Claims Act permits the government to intervene in such a lawsuit, as it has done, in part, in this case.
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Western District of New York and the Central District of California, and the U.S. Department of Health and Human Services Office of Inspector General.
The claims asserted against UHG are allegations only, and there has been no determination of liability.
The case is captioned United States ex rel. Swoben v. Secure Horizons, et al., 09-5013. The Poehling complaint is captioned United States of America ex rel. Benjamin Poehling v. UnitedHealth Group, Inc., No. 16-08697. Both are pending in the U.S. District Court for the Central District of California.
UPDATED - Former North Charleston, South Carolina, Police Officer Michael Slager Pleads Guilty to Federal Civil Rights OffenseRead the Press Release
Contact Person: Office of Public Affairs (202) 514-2007
WASHINGTON – Former North Charleston, South Carolina, Police Department (NCPD) Officer Michael Slager, 35, pleaded guilty to a federal civil rights offense for his fatal shooting of Walter Scott, Jr. on April 4, 2015.
Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department's Civil Rights Division, U.S. Attorney Beth Drake of the District of South Carolina, Special Agent in Charge Alphonse “Jody” Norris of the FBI’s Columbia Division, Solicitor Scarlett A. Wilson of the Ninth Judicial Circuit and Chief Mark Keel of the South Carolina Law Enforcement Division (SLED) announced today’s guilty plea, which took place in the U.S. District Court for the District of South Carolina. The plea will resolve both the federal and the state cases pending against Michael Slager. Prior to entry of the guilty plea, jury selection in the federal trial had been scheduled to begin on May 9, and a state trial had been set for August.
According to documents filed in connection with the guilty plea, Michael Slager, while acting as an NCPD Officer, willfully used deadly force on Walter Scott even though it was objectively unreasonable under the circumstances. Slager had stopped Scott’s vehicle after observing that a brake light was not working. During the stop, Scott fled on foot and Slager pursued him. During the foot chase, Slager deployed his Taser and Scott fell to the ground. Scott managed to get off of the ground and again run away. Scott was unarmed and running away when Scott fired eight shots at him from his department-issued firearm. Five shots hit Scott, with all of the bullets entering from behind. Scott died as a result of the injuries from Slager’s gunshots.
“The Department of Justice will hold accountable any law enforcement officer who violates the civil rights of our citizens by using excessive force,” said Attorney General Sessions. “Such failures of duty not only harm the individual victims of these crimes; they harm our country, by eroding trust in law enforcement and undermining the good work of the vast majority of honorable and honest police officers. As our Department works to support the courageous and professional law enforcement personnel who risk their lives every day to protect us, we will also ensure that police officers who abuse their sacred trust are made to answer for their misconduct.”
“Our hearts are with the Scott family today. They have persevered in their quest for justice for their loved one, and I hope that today brings them a measure of closure,” said U.S. Attorney Drake. “I also want to thank both Solicitor Wilson of the Ninth Judicial Circuit and South Carolina Law Enforcement Division Chief Mark Keel for their efforts to secure justice in this matter.”
“The resolution of this investigation protects the integrity of law enforcement, maintains the confidence of the community, and ensures justice is served in a fair and impartial manner,” said Special Agent in Charge Norris. “The cooperation between the South Carolina Law Enforcement Division, the U.S. Attorney's Office, the Charleston County Solicitor's Office, the Civil Rights Division, and the FBI Columbia Division was paramount in bringing this case to a successful conclusion.”
“This conviction is prime example of the strong results we can get when federal and state authorities work together,” said Solicitor Wilson. “We are grateful for the Department of Justice for their role in obtaining justice for the Scotts with this conviction and in moving our community forward through their hard work.”
“SLED’s role in any criminal investigation is to discover the facts of the case and report them,” said Chief Keel. “For the men and women of SLED, working closely with our partners in the Ninth Circuit Solicitor’s Office, the U.S. Department of Justice, the FBI and the U.S. Attorney’s Office, today’s plea is the culmination of our collaboration.”
“This disposition is the product of the excellent work of state and local law enforcement. I am proud of the leadership of U.S. Attorney Beth Drake and the critical work of the FBI. The teamwork in this case represents the best in law enforcement,” added Attorney General Sessions.
Slager faces a maximum sentence of life in prison for the federal civil rights violation, as well as a potential $250,000 fine. Both federal prosecutors and Solicitor Wilson will have the opportunity to address the Court at sentencing.
The case was investigated by the FBI’s Columbia Division and the South Carolina Law Enforcement Division. The federal case is being prosecuted by Assistant U.S. Attorneys Eric Klumb and Alyssa Richardson of the District of South Carolina and Special Litigation Counsel Jared Fishman and Trial Attorney Rose Gibson of the Civil Rights Division of the Department of Justice. The state case is being prosecuted by Scarlett A. Wilson and the Office of the Solicitor of the Ninth Judicial Circuit.
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U.S. Intervenes in ‘Whistleblower’ Case Alleging UnitedHealth Group Mischarged Medicare Advantage and Prescription Drug ProgramsRead the Press Release
LOS ANGELES – The United States has intervened and filed a complaint in a lawsuit against UnitedHealth Group Inc. that alleges UnitedHealth obtained inflated risk adjustment payments based on untruthful and inaccurate information about the health status of beneficiaries enrolled in its largest Medicare Advantage Plan, UHC of California.
The civil complaint filed yesterday afternoon follows the government’s intervention in February in United State ex rel. Poehling v. UnitedHealth Group. Inc., a related case in Los Angeles that also alleges that UnitedHealth defrauded the Medicare Program. The government is scheduled to file a complaint in the Poehling matter no later than May 16.
UnitedHealth is the nation’s largest Medicare Advantage Organization, with more than 50 Medicare Advantage and Drug Prescription plans providing healthcare services and prescription drug benefits to millions of Medicare beneficiaries throughout the United States. UnitedHealth receives a monthly payment from Medicare for each beneficiary that is based, in significant part, on the health status of the beneficiary.
The complaint filed yesterday by the United States alleges that UnitedHealth knowingly disregarded information about beneficiaries’ medical conditions, which increased the payments UnitedHealth received from Medicare. In particular, the lawsuit contends that UnitedHealth funded chart reviews conducted by HealthCare Partners, one of the largest providers of services to UnitedHealth beneficiaries in California, to increase the risk adjustment payments received from the Medicare Program for beneficiaries under the care of HealthCare Partners. However, UnitedHealth allegedly ignored information from these chart reviews about invalid diagnoses and thus avoided repaying Medicare monies to which it was not entitled.
“Medicare Advantage plans not only receive taxpayer-funded payments, but are intended for the health and welfare of the beneficiaries,” said Acting U.S. Attorney Sandra R. Brown for the Central District of California. “This action sends a warning that our office will continue to scrutinize and hold accountable Medicare Advantage insurers to safeguard the integrity of the Medicare program.”
The “whistleblower” lawsuit was filed by James Swoben, a former employee of Senior Care Action Network (SCAN) Health Plan and a consultant to the risk adjustment industry. The case is United States ex rel. Swoben v. Secure Horizons, et al., CV09-5013. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims for government funds and to receive a share of any recovery. The False Claims Act permits the government to intervene in such a lawsuit, as it has done, in part, in this case.
“The intervention of the United States in this matter illustrates our commitment to ensure the integrity of the Medicare Part C program,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
This matter was investigated by the United States Attorney’s Office in Los Angeles, the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Western District of New York, and the U.S. Department of Health and Human Services’ Office of Inspector General.
The claims asserted against UnitedHealth are allegations only, and there has been no determination of liability.
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Two Sent to Prison for Possessing Carter’s Country Stolen GunsRead the Press Release
HOUSTON – Two Houston men found in possession of firearms stolen from Carter’s Country gun store in March 2016 have been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez. Anthony D. Cannon, 21, and Tony L. Watkins, 24, pleaded guilty Sept. 2, 2016, to being felons in possession of a firearm.
Today, U.S. District Judge David Hittner ordered Cannon serve 46 months in federal prison, while Watkins received a 57-month sentence. Both men will also be required to serve three years of supervised release immediately following their release from prison. In handing down the sentence, Judge Hittner noted that both Cannon and Watkins had relatively high criminal histories despite their relative ages.
At approximately 4:30 a.m. on March 1, 2016, law enforcement responded to an alarm at the Carter’s Country gun store in Houston. Upon arrival, authorities noted the front doors had been busted open and the business had been ransacked. Numerous firearms had been stolen, including handguns, rifles and shot guns.
A truck appeared to have backed up to the front doors of the business. Store surveillance video showed an unknown individual who wrapped a chain around the doors and pulled the doors off the building. Approximately 11 suspects ran inside, broke the glass cabinets and stole 84 firearms.
Law enforcement soon discovered that some of the stolen firearms were being sold. They set up surveillance and eventually arrested both Cannon and Watkins who were found in possession of several of the stolen firearms. As convicted felons, both men are prohibited from possessing a firearm per federal law.
They have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
No one has yet been charged in the Carter’s Country robbery. The investigation is ongoing.
A joint federal task force conducted the investigation that includes the Bureau of Alcohol Tobacco, Firearms and Explosives and the FBI. Assistant U.S. Attorney Julie N. Searle is prosecuting the case.
Two Alabama Men Arrested and Indicted on Sex Trafficking ChargesRead the Press Release
Two Alabama men have been arrested and charged in an indictment unsealed today with crimes related to sex trafficking of a minor, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney A. Clark Morris of the Middle District of Alabama.
Michael Lowe, 24, and Joshua Rose, 28, both of Prattville, Alabama, were charged in an indictment returned on April 26, 2017, by a federal grand jury sitting in Montgomery, Alabama, with one count each of sex trafficking of a minor and conspiracy to commit sex trafficking of a minor. Lowe was arrested yesterday, and Rose has been in custody since Aug. 5, 2016. According to the indictment, beginning on an unknown date through June 2016, Rose and Lowe conspired to recruit, entice and transport a minor victim, knowing that the victim was a minor and would be caused to engage in a commercial sex act.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Prattville, Alabama, and the Montgomery, Alabama, Police Departments are investigating the case. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Hollie Reed of the Middle District of Alabama are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the 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 www.projectsafechildhood.gov.
Top Two Executives of Credit Card Processing Company Charged in $30 Million Overbilling SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Philip R. Bartlett, the Inspector in Charge of the U.S. Postal Inspection Service, and David E. Beach, Special Agent in Charge of the New York Field Office of the U.S. Secret Service, announced the indictment and arrest today of MICHAEL MENDLOWITZ, a/k/a “Moshe Mendlowitz,” and RICHARD D. HART, a/k/a “Rick Hart,” on charges of fraudulently operating a payment card processing company that operated under various names including Commerce Payment Systems (“CPS”). MENDLOWITZ, the chief executive officer and part owner of CPS, and HART, a CPS vice president and director of sales and the president of a number of CPS affiliated companies, are charged with masterminding a years-long scam that took more than $30 million from more than 10,000 small businesses, who relied upon CPS to help them process debit card and credit card sales. MENDLOWITZ and HART were arrested this morning and will be presented and arraigned later today before U.S. District Judge Vernon S. Broderick.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Michael Mendlowitz and Richard Hart, executives of a credit card processing company, allegedly preyed on small business owners, defrauding over ten thousand businesses of over $30 million. Small businesses – like all businesses – are entitled to be treated fairly and to have their bills honestly reflect the services they received. That is not what the businesses that Mendlowitz and Hart dealt with got. Instead, they allegedly got a series of lies and misrepresentations to support tens of millions of dollars in overbilling.”
U.S. Postal Inspector in Charge Philip R. Bartlett said: “In an economy where small businesses are already struggling, it’s disappointing these individuals allegedly devised a scheme to prey upon these business owners by lying and manipulating the fees they are required to pay for debit and credit transactions. Postal Inspectors reminds fraudsters that defrauding members of the business community will never be tolerated. We will find you and bring you to justice for misuse of the US Mail.”
Secret Service Special Agent in Charge David E. Beach said: “Technological advancements have led to the sophistication of fraudulent schemes. While these schemes have a profound impact on our financial crimes investigations, this case demonstrates the combined power of law enforcement and our federal partners to share information and resources, and ultimately bring the alleged perpetrators to justice.”
According to the Indictment unsealed today in Manhattan federal court[1]:
MENDLOWITZ and HART operated a fraud scheme founded on false claims of very low fees, along with false promises that there were “no hidden fees,” and that rates were “guaranteed for life.” In truth, however, CPS customers were charged all manner of hidden fees, and MENDLOWITZ subsequently altered customer accounts to add even higher fees. Among other deceptive tactics, MENDLOWITZ and HART used a “cost comparison calculator” that ostensibly showed potential customers a direct comparison between what they were currently paying versus what they would pay if they became customers of CPS. However, these cost comparison calculators were intentionally designed to conceal many of the fees that the customers would be charged.
In furtherance of their fraud, MENDLOWITZ and HART also concealed from customers pages of contract terms that directly contradicted representations made to customers during the sales process. When internet ratings of CPS became particularly negative, MENDLOWITZ and HART surreptitiously created a series of other corporate names, each with its own email domain, internet web page, and phone number, to operate their scheme free of the negative reviews. These brand-new affiliates were marketed under false brochures and websites that falsely claimed that the affiliate had been in business for many years, had “300,000 satisfied customers,” and that those customers included major national hotel chains, restaurant chains, and a university.
* * *
MENDLOWITZ, 42, of Woodmere, Long Island, and HART, 36, of East Meadow, Long Island, are each charged in three counts, with wire fraud, mail fraud, and conspiracy to commit wire and mail fraud. Each charge carries a maximum sentence of 20 years in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the work of the U.S. Postal Inspection Service and the United States Secret Service, as well as the Office of the Special Investigator General for the Troubled Asset Relief Program (“SIGTARP”).
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Three Men Plead Guilty to Human Smuggling Extortion CaseRead the Press Release
ALEXANDRIA, Va. – Three men have pleaded guilty to offenses involving the transportation of an illegal alien for financial gain after driving a 17-year old girl from El Salvador within the United States and demanding additional money from her family for her release.
According to the statement of facts filed with the plea agreements tied to the case, Daniel Lopez-Martinez, 32, of Mexico, Juan Tomas Nicolas, 23, of Guatemala, and Ernesto Solis, Jr., 29, of Mission, Texas, worked together to transport a 17-year old girl from El Salvador within the United States for money. Once she arrived in Houston, multiple calls were made by the defendants to the girl’s father located in Loudoun County. In the calls, the defendants demanded an additional $4,700. The defendants agreed to turn the girl over to the father only upon receipt and counting the money. The girl was rescued after FBI Agents and Task Force Officers in Houston interceded in the scheduled transfer of funds.
The defendants face a maximum penalty of 10 years in prison. Lopez-Martinez is scheduled to be sentenced on July 28, while Nicolas is scheduled to be sentenced on August 11, and Solis Jr. on August 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Gregory C. Brown, Leesburg Chief of Police, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Maureen Cain is prosecuting the case.
This case was investigated by the FBI’s Washington Field Office with assistance from the FBI’s Houston Field Office, the FBI’s McAllen Resident Agency, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
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
Three Cape Cod Men Plead Guilty to Heroin and Suboxone TraffickingRead the Press Release
BOSTON – Three Cape Cod men pleaded guilty yesterday in federal court in Boston in connection with trafficking heroin and suboxone.
Oliver Hamilton, 26, pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and possession of heroin with the intent to distribute. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Sept. 13, 2017.
Browning Mejia, 26, pleaded guilty to use of a communications facility in furtherance of a felony drug offense and is scheduled to be sentenced on Sept. 14, 2017.
Jason Mello, 29, pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and possession of heroin with the intent to distribute. Mello’s sentencing is scheduled for Sept. 15, 2017.
All three individuals had been charged as part of the federal investigation into the “Nauti-Block” gang that led to the indictment of 19 individuals. In October 2015, law enforcement initiated an effort to address the rising opioid epidemic in Massachusetts and on Cape Cod in particular. Law enforcement focused on the “Nauti-Block” gang led by Denzel Chisholm, Christian Chapman and Christopher Wilkins. Chapman previously pleaded guilty to heroin trafficking, while Chisholm and Wilkins are scheduled to stand trial on June 5, 2017.
According to court documents, Chisholm, Chapman and other co-conspirators were responsible for a significant quantity of the heroin distributed on Cape Cod. A wiretap investigation led to their arrests and indictments. These gang leaders obtained heroin from New Bedford, amongst other suppliers, and distributed the heroin to numerous drug dealers on Cape Cod, including Mello and Hamilton. Hamilton agreed to accept responsibility for between 100 and 400 grams of heroin. In addition, it was stated at Mejia’s plea hearing that Chisholm obtained suboxone from his heroin customers and then supplied that suboxone to Mejia, who distributed it at MCI-Norfolk prison, where he was an inmate.
The charge of conspiracy to distribute and possession with the intent to distribute heroin and possession of heroin with the intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charge of use of a communications facility in furtherance of a felony drug offense provides for a sentence of no greater than four years in prison, one year of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.