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15 June 2017
Nigerian Immigrant Sentenced for Tax FraudRead the Press Release
HOUSTON – A 29-year-old from Nigeria who was residing in Houston has been ordered to federal prison following his conviction in a stolen identity tax fraud scheme, announced Acting U.S. Attorney Abe Martinez. Oriola Samuel Odulate pleaded guilty Jan. 26, 2017, to conspiracy to steal public money.
Today, U.S. District Judge Alfred H. Bennett sentenced him to 24 months in federal prison and ordered him to pay $268,017 in restitution to the IRS.
Odulate and other unknown coconspirators defrauded the government by filing false and fraudulent income tax returns. Co-conspirators unlawfully acquired the personal identifying information (PII) of others such as names, dates of birth, Social Security numbers and addresses. They then used the unlawfully acquired PII to file fraudulent tax returns that requested refunds in the names of the victims.
The IRS sent refunds to bank accounts that Odulate opened and controlled. He received the money from the unlawful refunds, withdrew it from his bank account and then distributed the funds to co-conspirators.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
New Orleans Man Pleads Guilty to Illegal Possession of a Firearm and Making False Statements to Federal AgentsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DARRION YOUNG, age 32, pled guilty yesterday to being a felon in possession of a firearm and making false statements to federal agents.
According to the court documents, YOUNG, who had previously been convicted of a felony in the United States District Court for the Eastern District of Louisiana, possessed a firearm on November 24, 2015. Moreover, after his arrest, on two occasions, YOUNG made false statements to agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, during which he falsely accused a person of taking part in a shooting at the Bunny Friend Park on November 22, 2015. In fact, the person that YOUNG falsely accused was not in Louisiana on the date of the Bunny Friend Park shooting.
YOUNG faces a maximum term of imprisonment of ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment for being a felon in possession of a firearm. For each count of making false statements, YOUNG faces a maximum term of imprisonment of five years, a fine of $250,000, and three years of supervised release following any term of imprisonment. U.S. District Judge Susie Morgan set sentencing on September 12, 2017.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
New Haven Man Sentenced to 7 Years in Federal Prison for Heroin Distribution, Gun Possession OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SAMUEL ALBARRAN, also known as “Sam Dog,” 34, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 85 months of imprisonment, followed by five years of supervised release, for heroin distribution and firearm possession offenses.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that ALBARRAN’s brother, Wilson “Pancho” Vasquez, obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
A series of intercepted calls during the investigation revealed that ALBARRAN agreed to supply Vasquez with 300 grams of heroin.
Law enforcement officers first attempted to arrest ALBARRAN on July 15, 2015. On that date, a search of a New Haven residence connected to ALBARRAN revealed distribution quantities of heroin, cocaine and marijuana; a kilogram press and heroin packaging materials; 9mm and .380 caliber firearms; 9mm ammunition, and more than $21,000 in cash.
ALBARRAN remained a fugitive until February 11, 2016, when he was apprehended in East Haven. He has been detained since his arrest.
On September 15, 2016, ALBARRAN pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Seventeen individuals were charged as a result of this investigation. All 17 have pleaded guilty.
Vasquez is scheduled to be sentenced on June 21, 2017.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
Navajo Man from Shiprock Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Zachariah Nez, 19, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty today in federal court in Albuquerque, N.M., to a voluntary manslaughter charge. The plea agreement recommends a prison sentence within the range of six to 11 years followed by a term of supervised release to be determined by the court.
Nez was arrested in Oct. 2016, on a criminal complaint charging him with killing a Navajo man on the Navajo Indian Reservation in San Juan County, N.M., on Oct. 17, 2016. According to the complaint, Nez killed the victim by striking him with a rock.
Nez was indicted on Nov. 1, 2016, and charged with second-degree murder on Oct. 17, 2016, in San Juan County.
During today’s proceedings, Nez pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Nez admitted that on Oct. 17, 2016, he killed the victim by striking him several times with a rock. Nez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Joseph M. Spindle.
Nashville Man Facing Federal Firearms Charge After Shooting Death of 7-Year Old GirlRead the Press Release
Anthony Patrick Sanders, 27, of Nashville, Tennessee, was charged yesterday with being a convicted felon in possession of firearms, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee. The charge is the result of an investigation into the shooting death of 7-year old Harmony Warfield, which occurred on June 6, 2017.
According to the criminal complaint obtained yesterday, on June 6, 2017, Harmony Warfied was shot in the head by a two-year old boy who picked up a handgun and fired it while in an apartment in the J.C. Napier public housing development. Harmony Warfield died as a result of the injury.
“Another innocent child has died because the defendant, a convicted felon who is prohibited from possessing a firearm, chose to ignore the law and arm himself with handguns, said Acting U.S. Attorney Jack Smith. “It is apparent from this investigation that multiple people knew that the defendant regularly carried firearms and some had even told him not to bring guns into the area where so many children are located. We implore our citizens to do the right thing and notify law enforcement when they become aware of someone who is illegally carrying a firearm. We can and will continue to bring federal charges against individuals who illegally possess firearms after having been convicted of a felony, but, as is the case here, these charges are usually brought after violent acts have occurred. We desperately need the help of our law abiding citizens if we are going to be successful in reducing the number of violent incidents involving firearms.”
As alleged in the complaint, the subsequent investigation determined that Anthony Sanders had stayed at the home the night before and was known to generally carry one or two firearms whenever he was in the J.C. Napier housing area. Sanders sometimes kept the firearms in the residence where Harmony Warfield was shot. The investigation determined that Sanders had stayed at the residence the night before and had slept on the couch. According to witness statements and video evidence, Sanders woke up and went outside. Shortly thereafter, the gun was discharged by the 2- year-old, striking Harmony in the head. Sanders re-entered the residence and saw Harmony laying on the kitchen floor. He then retrieved the firearm and fled the area, saying he could not go back to prison.
Also, according to the complaint, three other juveniles were inside the residence when the incident occurred.
“ATF, along with its partners, are working diligently to protect the public from these senseless acts of violence,” said ATF Special Agent in Charge Steve Gerido. “ATF will remain vigilant as we engage with the community and foster an environment where our children are safe. In this case justice will be swift and fair. Support from the public is crucial as the reporting of illegal activity is encouraged through ATF’s ‘report it’ phone app.”
“The protection of children is among the highest responsibilities of us all,” said Nashville Police Chief Steve Anderson. “There was a blatant failure of that responsibility in the death of Harmony Warfield. Our Youth Services detectives quickly recognized that and were in communication with the United States Attorney’s Office and the ATF early in their investigation. Individuals who unlawfully arm themselves pose a real danger to persons of all ages in our community. I am grateful to our federal partners for actively sharing this police department’s commitment to the safety of all Nashville’s neighborhoods.”
Sanders had previously been convicted in 2008 of kidnapping and was sentenced to eight years in prison. He was released from prison in June 2016.
Sanders was arrested by federal agents yesterday afternoon and appeared before a U.S. Magistrate earlier today.
If convicted, Sanders faces up to 10 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
This charge is merely an accusation. Sanders is presumed innocent unless and until proven guilty in a court of law.
Montgomery Man Found Guilty of Federal Firearms Charges after Shootout at Convenience StoreRead the Press Release
Montgomery, Alabama – On Tuesday, June 13, 2017, Christopher Gilcrest (34), of Montgomery, Alabama, was found guilty in federal court of being a felon in possession of ammunition, announced Acting U.S. Attorney A. Clark Morris. Federal law prohibits a person convicted of a felony from possessing firearms or ammunition.
According to the evidence presented at trial, on October 23, 2016, Gilcrest went to the Value Gas Food Store on Highland Avenue in Montgomery just after midnight. As Gilcrest approached the store, he began to argue with another man in the parking lot. During the argument, Gilcrest pulled out a gun. At this point, the other man produced his own firearm and Gilcrest shot him in the leg. Several shots were exchanged between them and a total of three people were struck by bullets during the gunfire, including the defendant. Gilcrest fled the scene after firing his weapon at least six times.
Although Gilcrest’s gun could not be recovered, the Montgomery Police Department (MPD) was able to collect spent shell casings from the scene immediately after the shooting. Surveillance cameras showed Gilcrest was shooting from the exact spot the casings were found. A ballistics examination showed that all of the shell casings recovered where Gilcrest was shooting were fired from the same gun. The jury ultimately concluded that the casings came from Gilcrest’s gun, and he was found guilty.
Gilcrest now faces a maximum punishment of ten (10) years in federal prison. There is no parole in the federal system. He is currently in the custody of the United States Marshals Service pending his sentencing hearing, which is expected to occur in the next few months.
“One of the main priorities of the U.S Attorney’s Office is removing violent criminals from our communities,” stated acting U.S Attorney Morris. “This shootout placed the lives of innocent people in jeopardy. We are thankful that both MPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) share our commitment to identifying dangerous trigger pullers and bringing them to justice.”
“ATF, along with its partners, work diligently to protect the public from these senseless acts of violence,” said ATF Special Agent in Charge Steve Gerido. “ATF will remain vigilant as we engage with the community and foster a safe environment. Support from the public is crucial as the reporting of illegal activity is encouraged through ATF’s ‘report it’ phone app.”
“At MPD, we appreciate our close working relationship with the U.S. Attorney’s Office and want to thank our federal partners for bringing this investigation to a successful conclusion with the conviction of Mr. Gilcrest,” stated Montgomery Police Chief Ernest Finley.
Acting U.S. Attorney Morris would like to thank the following entities for their assistance in investigating this case: the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Montgomery Police Department (MPD). This case was prosecuted by Assistant United States Attorneys Bradley Bodiford and Ben Baxley.
Mississippi Corrections Officer Sentenced for Inmate AssaultRead the Press Release
The Department of Justice today announced that former Mississippi correctional officer Lawardrick Marsher was sentenced to 50 weekends in prison, five years probation and 150 hours of community service for severely beating an inmate at the state’s Parchman Prison.
Marsher, 29, admitted at his guilty plea in February that he repeatedly punched and kicked the victim while he lay nonresistant on the ground. The victim was temporarily blinded by the attack and suffered severe blood loss, a broken orbital bone, and permanent partial vision loss after the March 9, 2014, incident.
After the attack, Marsher and three other officers created a cover story that falsely minimized and falsely justified the force used by officers. As part of the cover-up, they wrote false reports and lied to federal investigators.
“Vicious attacks like this one dishonor the responsible work done by corrections officers throughout the country,” said Acting Assistant Attorney General Tom Wheeler. “The Department of Justice will protect the rights of all citizens, including those in prison.”
The leader of the cover-up, Robert Sturdivant, has also pleaded guilty and is scheduled to be sentenced on June 30. Sturdivant was a lieutenant at the prison and Marsher’s supervisor.
Two other officers were sentenced on June 2 for their roles in the beating and the cover-up. Deonte Pate, 24, was sentenced to 12 weekends in jail and to a period of probation for his role in concealing the incident. Romander Nelson, 44, was sentenced to 14 weekends in jail and a period of probation for failing to intervene to protect the victim.
The Mississippi State Penitentiary in Parchman is the largest prison in the state, housing more than 3,000 inmates. It has operated continuously as both a prison and a working farm since 1901.
Marsher was terminated by the Mississippi Department of Corrections shortly after the incident, and Nelson and Sturdivant were terminated after federal charges were filed. Pate resigned.
"Corrections officers are sworn to protect those within our prison systems, but there is an expectation that they uphold the laws and rights of those they protect," said Special Agent in Charge of the FBI in Mississippi, Christopher Freeze. "Inmates are not less than human and maintain inalienable civil rights; therefore, they should be treated with justice not callous assault. The FBI will continue to aggressively investigate allegations of civil rights violations."
This case was investigated by the FBI’s Jackson Division, with the cooperation of the Mississippi Department of Corrections. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Milwaukee Woman Sentenced to Prison for False Tax Return SchemeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 9, 2017, Paula Forbes (age: 49) of Milwaukee, Wisconsin, was sentenced to 24 months in federal prison followed by three years of supervised release and ordered to pay $143,016 in restitution for income tax fraud. Specifically Forbes conspired to defraud the United States by filing false tax refund claims, in violation of Title 18, United States Code, Section 286, and also of filing false tax refund claims, in violation of Title 18, United States Code, Section 287. Forbes was convicted at a jury trial on February 3, 2017.
As proven at trial, beginning in January 2012, Forbes engaged in a scheme with others to file false income tax returns that claimed refund payments from the Internal Revenue Service (IRS). Forbes and her coconspirators gathered individuals’ social security numbers and other personal information. Forbes then prepared federal income tax returns that fraudulently claimed wages and federal tax-withholding amounts from several employers, including Wisconsin Mortgage & Real Estate Resources and Midwest Accounting Tax Services, even though those employers had not actually paid wages or withheld taxes for the individuals. Forbes submitted the returns electronically to the IRS, signing the returns for individuals, many of whom she had never met. Forbes filed at least 35 fraudulent tax returns seeking more than $200,000 in tax refund payments. Forbes and her
coconspirators shared in the proceeds of the fraudulently obtained tax refunds.
This case resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Matthew Jacobs and Matthew Krueger prosecuted the case.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Midlothian Businessman Arrested on Fraud ChargesRead the Press Release
RICHMOND, Va. – The owner of Midlothian businesses Premier Consulting Services and Premier Credit Consultants was arrested this morning on federal fraud charges.
Timothy Scott Wenk, 50, of Chesterfield County, is charged with one count of wire fraud. According to the affidavit filed in support of the criminal complaint, Wenk operated several businesses, including of Premier Consulting Services, Capital Business Services and Premier Credit Consultants, which purported to offer a variety of financial services, including mortgage finance and credit repair services. The criminal complaint specifically alleges that Wenk defrauded a victim identified as “V.S.” of $5,496 related to a home the victim was to rent from Wenk but which the defendant never made available for rent. The affidavit further alleges that approximately 70 customers of his businesses have experienced losses of more than $750,000.
Wenk faces a maximum penalty of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Wenk’s initial appearance in federal court. Assistant U.S. Attorney Brian R. Hood is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-mj-107.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Middlesex Borough Fire Inspector and Another Individual Charged in Strongarm Extortion SchemeRead the Press Release
NEWARK, N.J. – A fire inspector for Middlesex Borough and other New Jersey municipalities and another individual have been charged with conspiracy to commit extortion using threats of force, violence, and fear, Acting U.S. Attorney William E. Fitzpatrick announced today.
Billy A. Donnerstag, 49, of Hackettstown, New Jersey, and Joseph P. Martinelli, 64, of Kenvil, New Jersey, are charged by complaint with one count of conspiracy to commit extortion. Donnerstag is expected to make his initial appearance this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court. Martinelli is expected to make his initial appearance on June 16, 2017, before Judge Clark.
According to the complaint:
From December 2016 and through June 2017, Donnerstag and Martinelli conspired to extort the owner and operator of a real estate development and construction company. The victim, identified in the complaint as “Individual 1,” was allegedly threatened with physical harm if Individual 1 did not pay thousands of dollars to Donnerstag and Martinelli, both of whom intimated that they had connections to organized crime. In a series of telephone and in-person conversations with Individual 1, Donnerstag and Martinelli told Individual 1 that, in addition to being a fire inspector for Middlesex Borough, Donnerstag also collected debts. Martinelli and Donnerstag allegedly wanted Individual 1 to pay Martinelli because Individual 1 had not paid Martinelli enough money for the sale of a property a decade earlier.
Donnerstag described himself to Individual 1 as “the guy that you don’t want to see,” “a problem for you right now,” and “someone that you need to deal with about this issue.” Donnerstag explained that he was a collector of debts who operated outside of the legal system and was “not somebody who’s in the yellow pages.” Donnerstag further explained that people who did not want to deal with lawyers would “rather deal with somebody like me, who’s just very cut and dry” because “I get the job done . . . and I get it done fast. Don’t ask me . . . how I get it done fast, cause you already know how I get it done fast.” Donnerstag told Individual 1 to ask others about Donnerstag’s father, whom Donnerstag referred to as “Jerry the Jew,” because, according to Donnerstag, “that’s what I do.” According to publicly available information, in the 1970s, Gerald Donnerstag of Belleville, New Jersey, a/k/a “Jerry the Jew,” reportedly was connected to organized crime, and was convicted of murder in Scranton, Pennsylvania, and theft in Essex County, New Jersey.
Donnerstag made a series of threatening statements to Individual 1 regarding the consequences of failing to pay, including:
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“if you were in front of me right now, you’d be on the floor. Okay? Cause I don’t talk—I don’t get talked to like that. You don’t know who I am.”
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“You need to iron this out with Joe. Again, if, if I have to come meet you now—again, it, it, it, it’d become, it’s gonna be a problem.”
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“What I do, is I make sure that people don’t take advantage of other people. Do you understand that? Now I also do other things, but this is one of the things that I do. Now, again if you’re not figuring wh, what my business is by now, you’re either, and again I, I say this with as much respect as I can, either an idiot, or you’re just lying because you don’t want to, to, to understand that I come from somewhere that most people don’t wanna see.”
Martinelli similarly made threatening statements to Individual 1 about what Donnerstag would do if Individual 1 failed to pay, including:
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“He’s [Donnerstag] a collector. And when he sees those kind of dollars, he gets a percentage of ‘em. He comes hell bent for election. He don’t fucking care . . . . He comes—he’ll collect the money one way or the other that’s the way he is. I don’t want to get involved in that.”
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When asked if Individual 1 could choose not to pay: “If—you know—I can only go so far with this guy cause I don’t know when he’ll stop down to see you.”
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When asked what would happen if Individual 1 would not pay: “you may get a visit. And he’s going to probably want something because he already came out once and that’s his problem, and once he starts, he don’t stop. He’s hopin’ I settle it, that’s what he’s hopin’. And I’m hopin’ I can settle it with something, with some kind of figures, I don’t care how. . . .”
During the conspiracy, over two separate meetings (both of which were lawfully recorded), Donnerstag and Martinelli obtained $15,000 in cash from Individual 1. The cash had been provided by law enforcement officials.
The count of conspiracy to commit extortion carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, New Jersey, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Lee M. Cortes, Jr. of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Donnerstag: Carol Gillen Esq. Assistant Federal Public Defender, Newark
Martinelli: Brian N. DiGiacomo Esq., Madison, New Jersey
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Mexican national convicted of reentry of removed alienRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Mexican national admitted today to reentering the country illegally, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Bonifacio Zarate-Flores, age 27, pled guilty to one count of “Reentry of Removed Alien.” Zarate-Flores was removed from the United States in 2015 and 2016. He was then found in Berkeley County on April 18, 2017.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The United States Department of Homeland Security Immigrations & Customs Enforcement investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Memorandum of Understanding Signed Regarding Youthful Offender Guidance on the Lower Brule ReservationRead the Press Release
United States Attorney Randolph J. Seiler announced the signing of a Memorandum of Understanding (MOU) between the Lower Brule Sioux Tribe (LBST) and the South Dakota U.S. Attorney’s Office at a ceremony in Lower Brule, South Dakota, on Wednesday, June 14, 2017. The signing ceremony took place in the Lower Brule Sioux Tribal Courtroom.
This MOU is a collaborative effort between the South Dakota U.S. Attorney’s Office and LBST to develop and effect a creative sentencing action plan, whereby eligible tribal members between the ages of eighteen (18) and twenty-four (24), who have committed crimes that do not fall into one of the prohibited categories of the MOU, may be afforded the opportunity to avoid federal prosecution and/or imprisonment. With the implementation of the MOU, youthful offenders will be given a chance to avoid federal convictions which may impact their future. It also allows families to remain intact and the tribe an opportunity to rehabilitate youth in an individualized manner.
The MOU will foster an increased cooperation between the LBST and the South Dakota U.S. Attorney’s Office to promote and increase peace and public safety for tribal communities. LBST Tribal Court has already established a Wellness Court that works to help low-level or misdemeanor offenders who want to overcome serious problems with, or addiction to, alcohol and other substances achieve lifetime sobriety or diversion away from the criminal justice system. Entry into the Wellness Court is not automatic and each request to participate is reviewed on a case by case basis and only a limited number of slots are available at any time.
The MOU was lauded by U.S. Attorney Seiler. “This truly is a great opportunity for youthful offenders on the Lower Brule reservation to have a second chance. Our goal is to make this program a viable alternative to incarceration, while at the same time, holding the offender accountable with less severe punishment. I commend Boyd Gourneau, Chairman of the Lower Brule Sioux Tribe, and Lorrie Miner, Chief Judge of the Lower Brule Sioux Tribe, for their commitment to this effort and their foresight in trying to make their reservation a safer place to live.”
The South Dakota U.S. Attorney’s Office will evaluate any referral of a federal youthful offender to the LBST Wellness Court and will then decide whether or not federal criminal charges should be pursued in federal court. The decision to pursue federal charges rests within the sole discretion of the South Dakota U.S. Attorney’s Office.
Medical Malpractice Suit Against the Spokane Veterans Administration Medical Center DismissedRead the Press Release
06-15-17_civil_dismissal_order_1.pdf Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that, on June 14, 2017, Chief United States District Judge Thomas O. Rice entered an Order dismissing a medical malpractice lawsuit filed against the Veterans Administration by the children of a Navy veteran. See Order (attached hereto).According to information disclosed during the court proceedings, Steven Wright presented himself to the Mann-Grandstaff VA Medical Center (VAMC) in Spokane, Washington a week after falling at home and injuring his knee and ankle. VAMC Emergency Department doctors examined his injuries and performed imaging to rule out further injury or the presence of a blood clot. Once the results of the imaging were reviewed, Mr. Wright was discharged. Upon discharge, VAMC nurses offered, on three occasions, to transport him via wheelchair to his transportation outside the medical center. Mr. Wright, however, refused transport assistance and left the VAMC on his own. Shortly after leaving, Mr. Wright fell outside on the pavement and suffered minor scrapes to his head.
VAMC employees provided emergency assistance and brought Mr. Wright back into the Emergency Department for further evaluation / treatment. Mr. Wright was examined by a VA nurse, who was assessed by an independently-contracted-physician with expertise in emergency medicine. After conducting another examination and neurological assessment, and at his request, Mr. Wright was discharged and he left the VAMC with a friend. Tragically, Mr. Wright was found deceased the following morning at his home, purportedly because of an internal head injury.
Mr. Wright’s two adult children and his Estate (collectively Plaintiffs) sued the Veterans Administration and the independently-contracted-physician. Plaintiffs claimed that the emergency department physician should have ordered a CT scan of Mr. Wright’s head injury when he was brought back to the Emergency Department and should have admitted him for overnight observation. Plaintiffs also claimed that the VA nurses should have insisted upon Mr. Wright that he be taken outside in a wheelchair and should have advocated harder against the physician’s assessment for a CT scan and admission of Mr. Wright for observation.
In dismissing the case against the Veterans Administration, Chief Judge Rice found that Plaintiffs could not prove the VA nurses owed a duty to insist that Mr. Wright be transported and further found that even if such duty existed, the VA nurses did not breach that duty or any of the alleged duties. Under Washington law, a plaintiff in a medical malpractice suit must support any medical negligence claim with competent medical expert testimony establishing a duty, a breach, causation, and injury. Proof of these elements for a claim against the VA was absent in this case. Because the independently-contracted-physician was not a VA employee, Chief Judge Rice ruled that Plaintiffs could pursue their case against him, remanding that claim to state court.
This case was defended by Rudy J. Verschoor and Joseph P. Derrig, Assistant United States Attorneys in the Civil Division of the United States Attorney’s Office for the Eastern District of Washington.
Marrero Man Pleads Guilty to Firearm and Drug ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that FERNANDO ORDONEZ, age 38, of Marrero, pled guilty yesterday to charges of conspiracy to distribute cocaine, heroin, and marijuana, and possessing of a firearm during a drug trafficking crime.
According to the court documents, prior to December 15, 2016, ORDONEZ, co-defendant HECTOR MATA, JR., and others conspired to possess cocaine, heroin, and marijuana. ORDONEZ also pled guilty to possessing a firearm during a drug trafficking crime: a .38 caliber Smith and Wesson Revolver.
ORDONEZ is facing a maximum of 20 years of imprisonment on the drug conspiracy count. On the weapons charge, ORDONEZ is facing a minimum of 5 years to a maximum of life imprisonment. U.S. District Judge Jay C. Zainey set sentenced for September 12, 2017.
Acting U.S. Attorney Evans praised the work of the U.S. Homeland Security Investigations and the Jefferson Parish Sheriff’s Office in investigating this case. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Manchester Resident Sentenced to 50 Months in Prison for Possession of A FirearmRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Joseph Davis, 31, of Manchester, New Hampshire, has been sentenced to serve 50 months in prison for unlawfully possessing a firearm.
At a trial in March of 2017, evidence showed that shortly after midnight on July 2, 2016, police officers in Hampton, New Hampshire saw Davis driving a car in an erratic manner on Ocean Boulevard. Before the police could intervene, Davis abruptly stopped the car in front of the north bathhouse on Ocean Boulevard. While detained by the police, Davis removed a large scarf from around his neck and placed it over the area between the driver’s seat and the center console.
After arresting Davis for driving under the influence, a police officer searched the car and found a HiPoint Model C9, 9mm, pistol tucked between the driver’s seat and the center console. The firearm was fully loaded. One bullet was in the chamber. The safety was in the off position.
Davis was prohibited from possessing firearms because he was a convicted felon. He previously was convicted of first-degree assault and possession of marijuana with the intent to distribute.
“Protecting public safety from violent criminals is a high priority of the United States Attorney’s Office,” said Acting U.S. Attorney Farley. “When criminals have guns in their possession, it threatens the safety of our citizens and our communities. I want to thank our law enforcement partners for their efforts in this case.”
The case was investigated by the Hampton Police Department, the Manchester Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Bob Kinsella prosecuted the case.
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Man Arrested for International Parental KidnappingRead the Press Release
ALEXANDRIA, Va. – A Maryland man made his initial appearance in federal court this afternoon on charges of international parental kidnapping.
Federal agents with the FBI and U.S. Customs and Border Protection (CBP) arrested Faical Chebbi, 45, of Accokeek, last night after he landed at Dulles International Airport. According to the court documents, in November 2011 Chebbi removed his two children, then ages 2 and 5, from the United States and took them to Tunisia in violation of the parental rights of the mother.
Chebbi faces a maximum penalty of three years in prison and a $250,000 fine, if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; and Casey Owen Durst, Director of CBP’s Baltimore Field Office, made the announcement. Assistant U.S. Attorney Patricia Haynes is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:11-mj-1015.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Magdiel Garcia and MAK Healthcare PC, d/b/a Multicare Plus Agree to Settlement for Stark Law ViolationsRead the Press Release
The United States announces that it has settled claims under the False Claims Act with Magdiel Garcia and MAK Healthcare PC d/b/a Multicare Plus for improperly billing Medicare in violation of the Stark Law prohibition against self-referrals.
The Stark Law, 42 U.S.C. § 1395nn, prevents a medical provider from referring patients to a medical facility in which the provider has a financial interest. Such referrals encourage over-utilization of medical services and drive up health care costs, and are prohibited.
The United States alleges that Magdiel Garcia and the medical providers who were employed by him improperly referred Medicare beneficiaries for services and equipment to MAK Healthcare PC, the Durable Medical Equipment (DME) company owned by Magdiel Garcia. The United States alleges that these improper self-referrals violated the Stark Law and resulted in false claims being submitted to the United States for payment.
The settlement covers claims submitted between January 2010 and December 23, 2013. Magdiel Garcia and MAK Healthcare PC have agreed to pay to the United States $225,000.00 to settle this matter.
This matter was handled by Department Health and Human Services Office of the Inspector General, including Attorney Katherine Matos and Investigator Mark Pascua and Assistant United States Attorney Susan Dein Bricklin.
Long Beach Man Sentenced to 6 Years in Prison for $5M Unemployment Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Andre Antonio Walters, 37, of Long Beach, today to six years and one month in prison and a $15,000 fine for four counts of mail fraud for his role in a significant unemployment benefit fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial in August 2016, Walters was a “manager” in a scheme to defraud the State of California of unemployment benefits from approximately 2008 to 2011. The scheme involved registering fictitious businesses with the state, listing “employees” as having earned wages at those fictitious businesses when in fact they had never worked there, and then filing for unemployment benefits on behalf of those “employees.” Walters recruited people to pose as these “employees,” managed their unemployment claims once filed, and split the resulting unemployment benefits checks that were mailed out of West Sacramento. According to the indictment, the scheme resulted in at least $5 million in fraudulently obtained unemployment benefits being disbursed by the state.
U.S. Attorney Talbert stated: “The funds set aside for unemployment insurance and disability insurance are intended to benefit Californians who have earned the right to receive those benefits. Fraud schemes that damage and deplete the fund undermine the benefit system and cheat those whom the funds are intended to protect. We will continue to work with our law enforcement partners to investigate and stop fraud schemes like this that harm California workers.”
“Andre Walters and Michael Taylor Jr., who was sentenced last week, created several fictitious employers and then used the names of approximately 500 nonexistent employees to collect more than $5 million in unemployment insurance benefits intended to provide relief to unemployed workers. We will continue to work with our state and federal law enforcement partners to preserve the integrity of all Department of Labor enforcement programs,” said Abel Salinas, Special Agent in Charge, Los Angeles Region, U.S. Department of Labor, Office of Inspector General.
“Today’s sentencing sends a loud, clear message: we will not tolerate those who engage in unemployment benefits fraud,” said Patrick W. Henning, Director of the Employment Development Department (EDD). “We’re proud to team up with the U.S. Attorney’s Office and the U.S. Department of Labor, Office of Inspector General to stop these criminals. We all share a common commitment: to ensure unemployment benefits go to the unemployed who need the assistance — not to thieves who believe they are above the law.”
This case was the product of an investigation by the U.S. Department of Labor, Office of Inspector General and the California Employment Development Department. Assistant U.S. Attorneys Jared C. Dolan and Matthew M. Yelovich prosecuted the case.
Walters is the sixth defendant to be sentenced for participating in this fraud scheme. Kenneth Kim Parks, 54, of Pomona, and of Long Beach, was sentenced to five years in prison. Gregory Bart Martin, 36, of Lakewood, was sentenced to 18 months of probation, Michael Ray Taylor Sr., 52, of Fontana, was sentenced to three years in prison; and Michael Ray Taylor Jr., 32, of El Monte, was sentenced to 15 months in prison.
Lexington Man Sentenced to 65 Months InPrison for Involvement in Kickback SchemeRead the Press Release
LEXINGTON, Ky. – A Lexington, Ky. man, who previously admitted to bribing a former public official, was sentenced today to 65 months in federal prison.
Chief U.S. District Judge Karen K. Caldwell sentenced Samuel C. McIntosh, 58, for convictions on four counts of bribery concerning a federally funded program and one count of mail fraud. Under federal law, McIntosh must serve at least 85 percent of his prison sentence.
McIntosh previously admitted that he paid kickbacks to the former Secretary of the Kentucky Personnel Cabinet, Timothy Longmeyer, beginning in 2009.
According to McIntosh’s plea agreement, Longmeyer agreed to use his former position to steer contracts to MC Squared Consulting, a company that McIntosh owned. In return, McIntosh paid approximately half of MC Squared’s proceeds from these contracts as kickbacks. Until approximately March 2014, McIntosh paid these kickbacks to an intermediary, Lawrence O’Bryan, who then paid a portion of the funds to Longmeyer. Beginning in November 2014, McIntosh began to deal with Longmeyer directly and repeatedly gave Longmeyer large amounts of cash and conduit contributions to the campaigns of politicians specified by Longmeyer. Over time, McIntosh paid $642,201.50 in kickbacks through O’Bryan and $203,500.00 in kickbacks directly to Longmeyer.
O’Bryan pleaded guilty to three counts of bribery concerning a federally funded program in September 2016. In March 2017, Judge Caldwell sentenced O’Bryan to 60 months in prison and ordered him to pay $642,201.50 in restitution. O’Bryan has paid this amount in full to the Commonwealth of Kentucky. Longmeyer pleaded guilty to accepting bribes concerning a federally funded program in April 2016. In September 2016, Judge Caldwell sentenced him to 70 months in prison and ordered him to repay $203,500.00 in restitution. Today, Judge Caldwell ordered that McIntosh will be jointly liable with Longmeyer to repay this $203,500.00 to the Commonwealth of Kentucky.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentence. The U.S. Attorney’s Office was represented by Assistant U.S. Attorneys Andrew T. Boone and Kathryn M. Anderson.
Kern County Men Charged in Drug Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against two Kern County residents, charging them in a conspiracy to distribute heroin, cocaine, and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
Mario Alvarez-Muniz, 49, a citizen of Mexico, residing in Taft, and Darrell Leon Jennings, 49, of Bakersfield, were charged with conspiring to distribute heroin, cocaine and methamphetamine and possession with intent to distribute heroin and cocaine. Alvarez-Muniz was also charged with distributing methamphetamine.
According to court documents, Alvarez-Muniz, a self-employed tow truck driver, obtained heroin, cocaine, and methamphetamine from Mexico for distribution here. Jennings is a self-employed truck driver who assisted Alvarez-Muniz in transporting heroin and cocaine to Bakersfield for shipment to Chicago. Alvarez-Muniz was arrested in Bakersfield after delivering two pounds of methamphetamine during an undercover drug transaction and orchestrating a shipment of six kilograms of heroin and 11 kilograms of cocaine seized from Jennings’ truck.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the U.S. Drug Enforcement Administration, the California Highway Patrol, the Bakersfield Police Department, and the Kern County Probation Office. The OCDETF Program was established in 1982 and is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. Assistant U.S. Attorneys Karen Escobar and Jeffrey Spivak are prosecuting the case.
If convicted, Alvarez-Muniz and Jennings face a mandatory minimum statutory penalty of 10 years in prison and a maximum penalty of life in prison, along with a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Kentucky Allergists Agree to Pay $740,578 to Resolve False ClaimsRead the Press Release
wy_settlement_agreement_final_06-2017.pdfSettlement covers alleged improper billing
LOUISVILLE, Ky. – Kentucky allergists Bruce Wolf and Kiro John Yun, have agreed to pay $740,578 to resolve alleged violations of the False Claims Act, announced United States Attorney John E. Kuhn, Jr. Wolf and Yun, P.S.C. (W&Y) is a medical practice group of otolaryngologists specializing in allergy, asthma and immunology with offices located in Bardstown, Elizabethtown and Leitchfield, Kentucky. The government alleged that W&Y submitted false claims when billing Medicare, TRICARE and the Federal Employees Health Benefits Program (FEHBP).
“Losses caused by health care fraud amount to tens of billions of dollars every year,” said U.S. Attorney John Kuhn, of the Western District of Kentucky. “Often those losses are passed along to consumers in the form of increased costs. For that reason, my office will work with federal, state, and local law enforcement to uncover these activities and recover every dollar.”
The settlement resolves the government’s allegations that W&Y improperly billed Medicare, TRICARE and FEHBP for Sublingual Immunotherapy serum preparation and overstated units of serum preparation for injection vials, under CPT Code 95165, and for testing under CPT Code 95024 during the following periods of January 1, 2010, and October 31, 2015 for Medicare; between June 1, 2010, and September 30, 2015, for TRICARE: and between January 1, 2010, and August 31, 2015 for FEHB.
Sublingual immunotherapy (SLIT), is an alternative way to treat allergies without injections whereby an allergist prescribes a patient with an allergen that is sprayed under the tongue to boost tolerance to substances and reduce symptoms. SLIT treatments are not covered by Medicare and other payors because it is considered investigational and thus not a billable procedure.
This case was investigated by the United States Attorney’s Office for the Western District of Kentucky and was prosecuted by Assistant United States Attorney Ben Schecter of the Western District of Kentucky.
Justice Department Requires Divestiture of Certain Herbicides, Insecticides, and Plastics Businesses in Order to Proceed with Dow-Dupont MergerRead the Press Release
The Department of Justice announced today that it will require The Dow Chemical Company (Dow) and E.I. DuPont de Nemours & Co. (DuPont) to divest multiple crop protection and two petrochemical products to proceed with their proposed merger valued at about $130 billion.
The Justice Department’s Antitrust Division, along with the offices of three state attorneys general, filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to enjoin the proposed transaction, along with a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns. The participating state attorneys general offices represent Iowa, Mississippi, and Montana.
The department said that, without the divestitures, the proposed merger likely would reduce competition between two of only a handful of chemical companies that manufacture certain types of crop protection chemicals and the only two U.S. producers of acid copolymers and ionomers, potentially harming U.S. farmers and consumers.
“The Department of Justice conducted a thorough investigation into this merger,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “As originally proposed, the merger would have eliminated important competition between Dow and DuPont in the development and sale of insecticides and herbicides that are vital to American farmers who plant winter wheat and various specialty crops. In addition, it would have given the merged company a monopoly over ethylene derivatives known as acid copolymers and ionomers that are used to manufacture many products, including food packaging. The remedies obtained by today’s settlement, including the divestiture of DuPont’s market-leading Finesse and Rynaxypyr crop protection products, will preserve vigorous competition in the sale of these products and benefit American farmers and consumers alike.”
According to the department’s complaint, Dow and DuPont are two of only a few significant competitors in the markets for broadleaf herbicides for winter wheat and insecticides for chewing pests. Specifically, DuPont’s Finesse product is the market leading broadleaf herbicide for winter wheat, and Dow recently introduced a new broadleaf herbicide called Quelex to compete with Finesse. DuPont’s Rynaxypyr line of products, which are marketed in the United States under the brand names Altacor, Coragen, and Prevathon, are the top selling insecticides for chewing pests, and compete with Dow’s methoxyfenozide products, sold in the United States under the Intrepid brand, and Dow’s spinetoram products, sold under the Delegate and Radiant brands. The complaint alleges that the loss of competition between Dow and DuPont would result in higher prices, less favorable contractual terms, and a reduced incentive to innovate for each of these products.
The department’s complaint further alleges that Dow and DuPont are the only two U.S. suppliers of acid copolymers and ionomers, both of which are high-pressure ethylene derivative products that are important inputs for food packaging and other plastics applications. According to the complaint, customers for each of these products would have no choice but to accept higher prices from the merged company following the transaction.
Under the terms of the proposed settlement, DuPont must divest its market-leading Finesse herbicide and Rynaxypyr insecticide products to a buyer to be approved by the United States. The department said that the divestiture of these products, which have total combined annual U.S. sales of over $100 million, would preserve competition in U.S. markets for broadleaf herbicides for winter wheat and insecticides for chewing pests. The proposed settlement further requires Dow to divest its U.S. acid copolymers and ionomers business to a buyer approved by the United States to remedy the merger’s harm in the U.S. markets for acid copolymers and ionomers.
The department’s Antitrust Division and the European Commission cooperated closely throughout the course of their respective investigations. The European Commission announced on March 27, 2017, that it will approve the merger conditioned on certain divestitures to address concerns in a variety of products. These divestitures included several products also divested in the Antitrust Division’s proposed settlement, as well as Dupont’s assets used for research and development of new crop protection chemicals. Like the European Commission, the Antitrust Division examined the effect of the merger on development of new crop protection chemicals but, in the context of this investigation, the market conditions in the United States did not provide a basis for a similar conclusion at this time.
Dow, a Delaware corporation headquartered in Midland, Michigan, operates in approximately 180 countries, and employs over 50,000 people worldwide. Dow’s primary lines of business are chemical, plastic, and agricultural products and services, and its products are used in various end markets, ranging from agriculture to consumer goods. In 2016, Dow reported global revenues of approximately $48 billion.
DuPont, a Delaware corporation headquartered in Wilmington, Delaware, operates in approximately 90 countries, and employs more than 60,000 people worldwide. Dow’s primary products include crop protection chemicals and performance materials such as plastics and polymers. In 2016, DuPont reported global revenues of $24.6 billion.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Jefferson County woman admits to cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Charles Town, West Virginia woman pled guilty today to distributing cocaine, Acting United States Attorney Betsy Steinfeld Jividen announced.
Decoley Jones, also known as Decoley White, age 29, pled guilty to one count of “Distribution of a Cocaine Base.” Jones admitted to distributing cocaine in Jefferson County in September 2014.
Jones faces up to 20 years incarceration and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
INTERPOL Washington Welcomes "Flat" DetaileesRead the Press Release
On Wednesday, June 14th, INTERPOL Washington—the U.S. National Central Bureau--welcomed some very special detailees. Flat Stanley, Stella, Saul, and Santos will be learning about INTERPOL Washington’s national and international mission this summer. Their time with INTERPOL Washington will culminate with a presentation to the children of our employees, during the Department of Justice’s Kids Day activities in August.
On his first day, Flat Stanley helped INTERPOL Washington celebrate Flag Day by attending a Washington Nationals baseball game where he met a local Metro Transit police officer and a fire fighter from the L’Enfant Plaza fire station. He also showed his patriotism by posing for a photograph with the U.S. flag.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal and tribal law enforcement agencies in the United States.
Flat Stanley attends a Washington Nationals baseball game.Honduran Woman Charged with Possession with Intent to Deliver Approximately Three Kilograms of FentanylRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Honduran woman was charged with possession with intent to distribute approximately three kilograms of fentanyl.
According to United States Attorney Bruce D. Brandler, on June 13, 2017, authorities encountered Osiris Ninet Bonilla-Mejia, a citizen of Honduras, sleeping in the back seat of a vehicle at the White Haven rest area located on Interstate 80, White Haven, Pennsylvania. A search of the vehicle resulted in the discovery of approximately three kilograms of fentanyl.
“Fentanyl is a powerful synthetic opioid that is commonly prescribed by doctors to soothe extreme pain in cancer patients. Because it is up to 100 times more potent than heroin and much cheaper to produce, it has been flooding communities across America resulting in skyrocketing fatal overdoses. It is so potent that an amount the size of a few grains of sand can kill you simply by touching it. Our office treats fentanyl cases extremely seriously and will prosecute those individuals who engage in this illicit activity to the fullest extent of the law” stated United States Attorney Bruce D. Brandler.
The case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Pennsylvania State Police and is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley.
This case was brought as part of a district-wide initiative to combat the national heroin and opioid abuse epidemic. Led by the United States Attorney’s Office, the Heroin Initiative in the Middle District of Pennsylvania targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin-related offenses. Fentanyl and its analogs are potent, synthetic opioid pain medications that can be hundreds of times more potent than heroin. Fentanyl is often mixed with heroin or sold as heroin by individuals involved in illicit heroin trafficking. Unauthorized recreational use of Fentanyl has resulted in thousands of overdose deaths across the country during the last 15 years.
A criminal complaint is only an allegation. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hartford PCP Dealer Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GARRETT J. CARTER, also known as “Little Man,” 30, of Hartford, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 70 months of imprisonment, followed by four years of supervised release, for distributing PCP.
According to court documents and statements made in court, in January 2016, Hartford Police received information of a significant PCP distributor operating in the Heath Street area of Hartford’s South End. A Hartford Police officer working in an undercover capacity subsequently made multiple purchases of PCP from an individual who was being supplied by CARTER. On March 24, 2016, CARTER was arrested after he arrived at a location on Heath Street to deliver PCP to his distributor. At the time of his arrest, CARTER possessed 28 ounce-sized bottles of PCP, each weighing approximately 22.5 grams. In total, the vials contained approximately 630 grams of PCP, or approximately 126,000 five milligram doses of the drug.
CARTER has been detained since his arrest. On February 6, 2017, he pleaded guilty to one count of possession with intent to distributed 100 grams or more of phencyclidine (PCP).
This matter was investigated by the Hartford Police Vice, Intelligence and Narcotics Unit and the FBI’s Northern Connecticut Violent Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hammond Woman Pleads Guilty to Operating Fraudulent Tax Preparation BusinessRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ROJONAH HARRIS, age 35, of Hammond, pled guilty today to a one-count Bill of Information charging her with aiding and abetting in the preparation of false tax returns.
According to court documents, beginning in about 2012, HARRIS owned and operated a tax preparation business in Hammond, Harris Finance and Tax Service. An investigation revealed that HARRIS regularly claimed false deductions and claimed false federal tax withholdings for her clients to generate unnecessarily large refunds to which they were not entitled. In many cases, HARRIS created false W-2s for her clients that artificially and erroneously misstated the amount of income the customer had earned, including by overstating, understating, or fabricating income. HARRIS also knowingly overstated federal income tax on W-2s that had been withheld from their income. Additionally, in order to increase her clients’ tax refund, HARRIS fraudulently included false wages in the form of household help (“HSH”) income to which her clients were not entitled and provided no supporting documentation. Further, HARRIS reported that some customers had qualified educational expenses when, as HARRIS knew, the customers had neither educational expenses nor documentation indicating expenses. HARRIS charged substantial tax preparation fees for the preparation and transmittal of these tax returns to the Internal Revenue Service; she earned not less than $582,090 in return preparation fees for preparing tax returns for tax years 2011 through 2013.
In total, between tax years 2011 and 2014, HARRIS prepared and filed not fewer than 267 false and fraudulent tax returns, resulting in inappropriate and unnecessary refunds of not less than approximately $1,115,578. As part of her plea, HARRIS acknowledged a loss to the IRS of not less than $1,115,578, and agreed to repay at least that amount in restitution.
HARRIS faces a maximum term of imprisonment of not more than three years followed by up to one year of supervised release, and a $100,000 fine. U.S. District Judge Lance M. Africk set sentencing for September 21, 2017.
Acting U.S. Attorney Evans praised the work of the Internal Revenue Service - Criminal Investigation Division in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Gloucester Woman Charged with Conspiracy to Traffic Steroids and Launder MoneyRead the Press Release
BOSTON – A Gloucester woman was charged today in federal court for her role in a conspiracy to traffic steroids and launder money.
Melissa Sclafani, 29, was charged with one count of conspiracy to distribute counterfeit steroids and one count of conspiracy to launder money. On April 12, 2017, Sclafani and five others were charged by criminal complaint.
According to the charging documents, from approximately February 2016 until April 12, 2017, Sclafani conspired with others to manufacture steroid products, market them as “Onyx” steroids, and sell them to customers across the United States using email and social media platforms. Customers paid for the steroids via money remitters, such as Western Union and MoneyGram, and members of the conspiracy used false identifications and multiple remitter locations to pick up the steroid proceeds.
It is alleged that the conspirators purchased the raw materials to manufacture the steroids as well as Onyx labeling and packaging from overseas suppliers, either by using money remitters or by shipping U.S. currency overseas. Onyx is a legitimate pharmaceutical company owned by Amgen Inc. that does not manufacture steroids. The steroids were actually manufactured in the residential home(s) of one or more members of the conspiracy. It is further alleged that Sclafani obtained materials and supplies to manufacture the counterfeit steroids and served as the corporate secretary of Wicked Tan LLC, a tanning business in Beverly, Mass., that was owned by two co-conspirators. Sclafani assisted members of the conspiracy in laundering proceeds from the sale of counterfeit steroids through the business.
The conspiracy charge provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gain or loss of the conspiracy, and the charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the gain or loss of the conspiracy. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal investigation, New York Field Office, made the announcement today. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Weinreb’s Cybercrime Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Franklin County Man Sentenced to 75 Months for Conspiracy to Distribute Heroin and Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kyle Gordon, age 29, was sentenced by United States District Court Judge Sylvia H. Rambo to 75 months’ imprisonment for Conspiracy to Distribute Heroin and Possession of a Weapon in Furtherance of Drug Trafficking.
According to United States Attorney Bruce D. Brandler, in the fall of 2014, Gordon, a man on state parole for burglary, obtained heroin from Baltimore, Maryland and distributed heroin out of a residence in Franklin County, Pennsylvania. The Franklin County Drug Taskforce executed a search warrant at the residence where Gordon was staying in Franklin County and located 10 grams of heroin and a Ruger, 9mm, semi-automatic handgun inside.
This matter was investigated by officers and troopers comprising the Franklin County Drug Taskforce and special agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Chelsea Schinnour.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Former Swiss Banker Pleads Guilty to Money Laundering Charge in Connection with Soccer Bribery SchemeRead the Press Release
Earlier today, a private banker formerly employed by several Swiss banks pleaded guilty in Brooklyn, New York, to a criminal information charging him with participating in a money laundering conspiracy in connection with the distribution and receipt of millions of dollars of bribes paid to high-ranking soccer officials.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr., of the FBI’s New York Field Office, and Special Agent in Charge R. Damon Rowe of IRS-Criminal Investigation’s (IRS-CI) Los Angeles Field Office made the announcement.
The defendant, Jorge Luis Arzuaga, a 56 year old Argentinian national, entered his plea before the Honorable U.S. District Court Judge Pamela K. Chen. According to the criminal information, between 2010 and 2015, the defendant was employed as a private banker at two financial institutions based in Switzerland, and he managed several accounts controlled by a sports media and marketing business headquartered in Argentina (the “Sports Marketing Company”). In that capacity, Arzuaga assisted the principal of the Sports Marketing Company, along with others, in paying bribes to various high-ranking soccer officials, the information states. According to the information, Arzuaga furthered the bribery conspiracy in a variety of ways, including by opening a bank account in the name of a shell company ostensibly established on behalf of the Sports Marketing Company, when, in fact, the true beneficial owner of this account was a high-ranking soccer official. In total, according to the information, Arzuaga assisted in paying more than $25 million in bribes into the account. Following the death of the beneficial owner of the account, Arzuaga arranged for the balance of the funds remaining in the account to be distributed to the soccer official’s heirs, the information states. In exchange for his assistance in facilitating the payment of these bribes, the information states that Arzuaga received approximately $1,046,000 in bonus payments.
The FBI New York Field Office and the IRS-CI Los Angeles Field Office investigated the case. Assistant U.S. Attorneys Samuel P. Nitze, Paul Tuchmann, Lauren Howard Elbert, and Brian D. Morris of the Eastern District of New York and Trial Attorney Michael P. Grady of the Money Laundering and Asset Recovery Section of the Justice Department’s Criminal Division prosecuted the case. The Criminal Division’s Office of International Affairs, Organized Crime and Gang Section, and Fraud Section, as well INTERPOL Washington provided substantial assistance with the case.
Former Police Officer and Wife Plead Guilty in Tax Fraud SchemeRead the Press Release
OAKLAND – Former Antioch police officer Gary Bostick and his wife, Ana Bostick, pleaded guilty to their respective roles in a scheme to illegally obtain money from the United States announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
Gary Bostick, 39, and Ana Bostick, 37, both of Pittsburg, pleaded guilty to their respective roles in a conspiracy to commit theft of public money and related charges. The Honorable Jeffery S. White, United States District Judge, accepted Ana Bostick’s guilty plea on Tuesday, June 13, 2017, and accepted Gary Bostick’s guilty plea this morning.
According to the Bosticks’ plea agreements, between January and April of 2015, the conspiracy involved filing false federal income tax returns in order to obtain fraudulent federal income tax refunds and cashing stolen U.S. Treasury checks at Walmart stores throughout the United States. Specifically, Gary Bostick admitted that in January 2015, he assisted in filing false tax returns with the IRS in the names of deceased individuals. The defendants obtained names, dates of birth, and Social Security numbers from websites such as www.rootsweb.ancestry.com and www.ssnvalidator.com. In order to receive payment, the conspirators directed the IRS to mail the fraudulently obtained U.S. Treasury checks to addresses he and his co-conspirators could access. The conspirators cashed the U.S. Treasury checks at various Walmart stores.
Ana Bostick admitted that she aided her co-conspirators by, among other things, cashing two U.S. Treasury checks. Ana Bostick admitted she requested another co-conspirator to send her photos of the two U.S. Treasury checks so that she could use the information on the checks to obtain fake identification that matched the names. After obtaining the fake identifications, Ana Bostick cashed the two checks and kept the corresponding funds.
Gary Bostick’s participation in the scheme included traveling with two co-conspirators to Los Angeles to obtain stolen U.S. Treasury checks and then to Walmart stores in various areas, including Kentucky, to cash the checks. The former police officer acknowledged that he supervised other individuals in the scheme, including managers and runners, who were responsible for cashing the fraudulent or stolen U.S. Treasury checks. In sum, the conspiracy involved $720,530.40 in stolen U.S. Treasury checks.
On November 15, 2015, a federal grand jury indicted Gary Bostick, Ana Bostick, and their co-conspirators. For her part in the scheme, Ana Bostick was charged with conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371; two counts of theft of public money, in violation of 18 U.S.C. § 641; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. She pleaded guilty to all charges. For his part in the scheme, Gary Bostick was charged with conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. He pleaded guilty to the conspiracy charge and to the wire fraud charges. Pursuant to the plea agreement, the identity theft charges were dismissed.
Judge White scheduled Gary Bostick’s sentencing for September 19, 2017, and Ana Bostick’s sentencing for November 14, 2017. The maximum sentence for conspiracy to commit theft of public money is five years in prison and a fine of $250,000. The maximum sentence for theft of public money is ten years in prison and a fine of $250,000. The maximum sentence for wire fraud is 20 years in prison and a fine of $250,000. The maximum sentence for aggravated identity theft is a mandatory minimum of two years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera and Trial Attorney Gregory Bernstein are prosecuting this case with assistance from Jonathan Deville of the Tax Division. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Former Nomura RMBS Trader Convicted of Fraud ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found MICHAEL GRAMINS, 33, of New York, N.Y., guilty of conspiracy to commit securities and wire fraud.
According to the evidence at trial, GRAMINS was an Executive Director on the Residential Mortgage Backed Securities (“RMBS”) Desk at Nomura Securities International (“Nomura”) in New York where he principally oversaw Nomura’s trading of bonds composed of sub-prime and option ARM loans. GRAMINS engaged in a conspiracy to defraud customers of Nomura by fraudulently inflating the purchase price at which Nomura could buy a RMBS bond to induce their victim-customers to pay a higher price for the bond, and by fraudulently deflating the price at which Nomura could sell a RMBS bond to induce their victim-customers to sell bonds at cheaper prices, causing Nomura to profit illegally. GRAMINS trained subordinates to lie to customers, provided them with the language to use in deceiving customers, and encouraged them to engage in the practice.
The victims of this scheme included hedge funds, insurance companies, and asset managers from Connecticut and elsewhere.
On March 6, 2017, GRAMINS and two other former New York-based bond traders for Nomura, Ross Shapiro and Tyler Peters, were each charged in a third superseding indictment with one count of conspiracy, two counts of securities fraud and six counts of wire fraud. A trial before U.S. District Judge Robert N. Chatigny began on May 8, 2017. Today, the jury found GRAMINS guilty of one count of conspiracy, and not guilty of one count of securities fraud and five counts of wire fraud. The jury could not reach a verdict as to one count of securities fraud and one count of wire fraud.
The jury also found Shapiro not guilty of two counts of securities fraud and six counts of wire fraud, but could not reach a verdict as to the conspiracy count. The jury found Peters not guilty of all nine counts of the indictment.
“This has been a demanding prosecution, and I thank the jury for its service,” U.S. Attorney Deirdre M. Daly said. “I also commend SIGTARP, the FBI, the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Housing Finance Agency’s Office of Inspector General for their outstanding investigative work in this and related cases. Our investigation into fraudulent trading practices in the RMBS and other financial markets has had a marked impact on the industry and will continue.”
When sentenced, GRAMINS faces a maximum term of imprisonment of five years.
This matter has been investigated by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Bureau of Investigation, the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Housing Finance Agency’s Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorneys Liam Brennan, Heather Cherry, and David Novick.
Former Manchester Man Sentenced for Role in Cocaine DealRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney John J. Farley announced today that Luis D. Capo-Nieves, 33, formerly of Manchester, New Hampshire, was sentenced to 24 months in federal prison for conspiracy to distribute cocaine.
According to court documents and statements made during court proceedings, on July 1, 2016, the Nashua Police department dispatched several officers to the parking lot of a city apartment complex in response to a citizen complaint about drug dealing activity there. In the parking lot, the responding police officers observed Capo-Nieves engage in an exchange with another individual, Wilfredo Tanon Rodriguez, that appeared to be part of a drug transaction. After Capo-Nieves and Tanon Rodriguez left the parking lot in Capo-Nieves’s car, police stopped the car for a variety of motor vehicle violations. A police inspection of a bag the police saw in the car during the traffic stop revealed 279 grams of cocaine.
Capo-Nieves, who pleaded guilty on February 28, 2017, will be on supervised release for three years after he serves his prison sentence. In addition, the Court directed that $2121 recovered from Capo-Nieves at the time of his arrest should be used to pay for his court-appointed defense attorney, instead of being returned to Capo-Nieves.
On June 2, 2017, Tanon Rodriguez, a former Nashua resident, was sentenced to 30 months in prison for his participation in the drug transaction.
“Even as we continue to address the opioid epidemic, the law enforcement community remains committed to stopping the distribution of all illegal drugs,” said Acting U.S. Attorney Farley. “Thanks to good police work, over a quarter kilogram of cocaine has been removed from the streets of Nashua.”
This matter was investigated by the Nashua Police Department. Assistant United States Attorney Bill Morse prosecuted the case.
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Former Managing Director at Swiss Bank Pleads Guilty to Money Laundering Charge in Connection with Soccer Bribery SchemeRead the Press Release
Earlier today, Jorge Luis Arzuaga, a citizen of Argentina and a private banker formerly employed by Swiss banks, pleaded guilty to a criminal information charging him with participating in a money laundering conspiracy in connection with the distribution and receipt of millions of dollars of bribes paid to soccer officials, including the late president of the Asociación del Futbol Argentina (“AFA”), the Argentinian soccer federation. The plea was entered before United States District Judge Pamela K. Chen at the federal courthouse in Brooklyn, New York.
The guilty 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; and Richard Weber, Chief of IRS Criminal Investigation.
Swiss authorities are expected to announce the resolution of charges against Arzuaga in a related matter soon.
According to court filings and facts presented during the plea proceeding, beginning in around 2010 and continuing through 2015, while employed as a private banker at two financial institutions based in Switzerland, Arzuaga managed several accounts controlled by Alejandro Burzaco, a principal of Torneos y Competencias, S.A. (“TyC”), a sports media and marketing business headquartered in Argentina. In that capacity, Arzuaga assisted Burzaco and others in paying bribes to various soccer officials, including to the then-president of AFA, who is identified in the information as Soccer Official #1. Arzuaga furthered the bribery conspiracy in a variety of ways, including by opening a bank account in the name of a shell company established to effect certain transactions on behalf of TyC. The true beneficial owner of this account was Soccer Official #1. Arzuaga assisted Burzaco in paying more than $25 million in bribes into the account for the benefit of Soccer Official #1. Burzaco pleaded guilty to racketeering conspiracy and other offenses on November 16, 2015 in connection with his involvement in paying bribes to soccer officials.
Following Soccer Official #1’s death in 2014, Arzuaga arranged for the balance of the funds remaining in the account to be distributed to Soccer Official #1’s heirs. In exchange for his assistance in facilitating the payment of these bribes, Arzuaga received approximately $1,046,000 in bonus payments from Burzaco for moving bribe money through the financial system. Arzuaga will forfeit that amount in connection with his plea.
“By facilitating the flow of bribe money through the Swiss and American banking systems, the defendant provided a critical service to those involved in corruption in international soccer,” stated Acting United States Attorney Rohde. “Today’s plea marks another important step in our continuing effort to hold accountable those who facilitate the movement of criminal proceeds in the United States and across the globe.” Acting United States Attorney Rohde extended her grateful appreciation to the authorities of the government of Switzerland for their invaluable assistance in this investigation and for their ongoing collaboration.
This plea shows how wide-ranging and systemic corruption once was in one of the world’s most popular sports,” stated FBI Assistant Director-in-Charge Sweeney. “Our work is nowhere near finished, and we will continue to pursue each and every corrupt member of this scheme until each is brought to justice.”
“The guilty plea announced today builds upon the ongoing investigation of corruption within FIFA, where we have continued to trace illicit funds through banks around the world,” said Chief Weber. “We are pursuing the bad actors - including soccer officials, sports marketing companies, financial institutions, and their bankers - who have intentionally and criminally violated the law by laundering illegal proceeds. Prospective private bankers and relationship managers should take note of Mr. Arzuaga’s conviction and think twice about the consequences of conspiring to launder money. These criminal actors will continue to be under the microscope of the financial investigative expertise of IRS CI.”
The guilty plea announced today is part of an investigation led by the U.S. Attorney’s Office for the Eastern District of New York, the Bank Integrity Unit in the Money Laundering and Asset Recovery Section of the Justice Department’s Criminal Division in Washington, D.C., the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn and the Bank Integrity Unit are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Samuel P. Nitze, Paul Tuchmann, Lauren Howard Elbert, and Brian D. Morris of the Eastern District of New York and Trial Attorney Michael P. Grady of the Money Laundering and Asset Recovery Section of the Justice Department’s Criminal Division are in charge of today’s prosecution.
The Defendant:
JORGE LUIS ARZUAGA
Age: 56Citizenship: Argentina
E.D.N.Y. Docket No. 17-CR-313 (PKC)
Former Doctor Sentenced to 23 Years in Prison for Distributing Prescription Drugs, Health Care Fraud and Money LaunderingRead the Press Release
Sardar Ashrafkhan of Ypsilanti, Michigan, was sentenced today to 23 years in prison for participating in a conspiracy to distribute prescription pills, conspiracy to commit health care fraud, and money laundering, Acting U.S. Attorney Daniel Lemisch announced.
Ashrafkhan, also known as “Dr. Khan,” 59, was sentenced by U.S. District Judge Robert H. Cleland.
Lemisch was joined in the announcement by Timothy Plancon, Special Agent in Charge of the Drug Enforcement Administration; David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation; Robin Shoemaker, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services; and Manny Muriel, Special Agent in Charge of the Detroit office of the Internal Revenue Service, Criminal Investigation.
Sardar Ashrafkhan was found guilty, along with two co-defendant doctors, after a seven week jury trial. Ashrafkhan was convicted on felony counts of conspiracy to illegally distribute prescription drugs, conspiracy to commit health care fraud, and two counts of money laundering. The convictions arose from the operation of the defendant’s fraudulent medical practice known as Compassionate Doctors. The medical practice purported to be a visiting physician’s practice, but was actually a scheme that involved patient marketers bringing paid “patients” to residences to obtain fraudulent prescriptions for controlled substances. Medicare was billed for medical examinations and tests that were not conducted properly or were not conducted at all. Marketers filled the controlled substance prescriptions at cooperating pharmacies and sold the drugs on the street market.
According to evidence submitted at trial and at sentencing, Ashrafkhan operated Compassionate and related health care corporations from 2006 until 2013.
Ashrafkhan was responsible for participating in illegally distributing over 200,000 dosage units of oxycodone (including Oxycontin) and opana, powerful Schedule II opiates. He was responsible for over 1 million dosage units of another opiate, hydrocodone (Vicodin, lortab), and over 3 million dosage units of controlled substances of all kinds. He was responsible for over $8 million in health care fraud.
Oxycontin, oxycodone, and hydrocodone are controlled substances that may be prescribed by a doctor only for a legitimate medical purpose. A doctor must act in good faith in prescribing these medications. These powerful and addictive drugs in the opioid class are easily abused, and can lead to addiction and eventual heroin use.
“More people die in America every year from prescription drug overdoses than from overdoses of all other drugs combined,” Lemisch said. “In addition, prescription drug addiction has led to resurgence in heroin use. Licensed professionals who participate in the diversion of prescription drugs to the street market are contributing to this epidemic, and we are focusing our enforcement efforts on stopping them.”
“Dishonest and unethical Doctors and Pharmacists who provide prescription drugs, especially Opioids, to individuals with no medical need are fueling a national crisis which has resulted in alarming levels of addiction, overdose deaths, and violence at the hands of criminal enterprises competing to flood our streets with illegal drugs,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “To those prioritizing profit over their pledge to honestly service the health needs of the public, the message should be clear that the collective resources of local, state and federal law enforcement will expose your illegal activities and bring you to justice.”
“When you exploit every business principle to enrich your pocket with illegal proceeds,” stated Special Agent in Charge Manny Muriel, “IRS Criminal Investigation will use their financial expertise to shut you down.”
Ashrafkhan was one of 44 defendants named in a multi-count second superseding indictment unsealed in March of 2013. Six doctors and five pharmacists were convicted, either by guilty plea or at trial, and all received custodial sentences. The longest custodial sentence imposed on a pharmacist was 78 months, and the longest custodial sentence imposed on a doctor was 228 months. As the owner and manager of the fraudulent clinic, Sardar was the leader of the activity and obtained the largest share of the profits from this illegal activity.
Ashrafkhan is a citizen of Pakistan who came to the United States in approximately 1991 to study medicine. He no longer has legal status in the United States, and is subject to deportation after service of his sentence.
Acting United States Attorney Lemisch thanked the agents of the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals, the Internal Revenue Service Criminal Investigation, the U.S. Immigration and Custom’s Enforcement’s Department of Homeland Security Investigations, the Department of Health and Human Services Office of Inspector General, the Detroit Police Dept., Portsmouth, Ohio, Police Dept., Scioto County Sheriff’s Office, and the Detroit Violent Crimes Task Force and Michigan State Police for their successful investigation of the case.
Former Commerce Employee Convicted of Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a former information technology official with the Department of Commerce today of conspiracy to pay and receive bribes, and acceptance of bribes by a public official.
According to court records and evidence presented at trial, Raushi J. Conrad, 42, of Bristow, served as the Director of Systems Operation and Security within the Bureau of Industry and Security (BIS), a branch of the Department of Commerce. In that position, Conrad was designated to oversee and manage a project whereby computer files were transferred from an old BIS computer network that had been infected by a virus to a new, uninfected network. Conrad was also to ensure that the transferred files were free of viruses and, in some instances, retained the full functionality of the files that had resided on the old network.
“Conrad took bribes in exchange for official acts,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “The contracting process should be one of integrity and fairness, and this case should send a strong message that public corruption will be vigorously prosecuted. I want to thank the trial team and our investigative partners for their outstanding work on this case.”
According to court records and evidence presented at trial, while serving as the project manager for the data migration project, Conrad solicited and received bribes from James Bedford, a local businessman, in return for steering a lucrative subcontract and contract to perform the data migration work to companies owned in whole or in part by Bedford. One of Bedford’s companies made $208,000 in payments to a restaurant business owned by Conrad, and many of these payments were concealed through false and fictitious invoices created by Conrad. The fake invoices made it appear that Conrad’s restaurant business had performed various services for Bedford’s company, when in fact no such services had ever been provided. Bedford’s company also arranged for various subcontractors to perform over $7,000 worth of free renovation work at Conrad’s residence. Bedford has pleaded guilty and is scheduled to be sentenced on June 30 (see case number 1:16-cr-264).
“Raushi Conrad received bribes from a local businessman in return for steering a lucrative subcontract and contract to perform the data migration work to companies owned in whole or in party by the bribe payer,” said Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office. “Conrad, who served as the Director of Systems Operation and Security within the Bureau of Industry and Security, a branch of the Department of Commerce, received more than $200,000 in payments that were made to a restaurant business owned by him. The fake invoices made it appear that Conrad’s business had performed various services for the bribe payer’s company, when in fact no such services had ever been provided. Today’s verdict underscores the dedication of the FBI and our partners in pursuing and disrupting fraudulent acts against the government.”
Conrad faces a maximum of 20 years in prison when sentenced on September 8. 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; Duane E. Townsend, Special Agent in Charge of the U.S. Department of Commerce, Office of Inspector General; and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement after U.S. District Judge Gerald Bruce Lee accepted the verdict. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-169.
Former City of Nashua Volunteer Charged with Fraudulent Use of Social Security NumberRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Dana Michelle Lawrence, 43, of Nashua has been indicted by a federal grand jury and charged with fraudulent use of a social security number.
According to court documents, in 2006, Lawrence was sentenced in a Rhode Island state court to a one-year period of incarceration followed by nine years of probation for a theft offense. Shortly after Lawrence completed the prison sentence, she absconded from supervision and a warrant was issued for her arrest. In November 2016, Lawrence, using the alias “Genevieve Kaplan,” began working as a volunteer for the City of Nashua, preparing grant applications. On May 7, 2017, the Nashua Police Department (NPD) and FBI were told that “Kaplan” tried to obtain routing numbers and account numbers for bank accounts that belonged to the City.
While investigating the matter, the NPD and FBI obtained a copy of a lease application that “Kaplan” had used to rent an apartment in Nashua. On the application, “Kaplan” used a different first name, “Genna,” and a social security number assigned to another person. searching “Kaplan’s” Nashua apartment, the NPD and FBI found documents that contained different names, addresses, dates of births, and social security numbers.
On May 11, Lawrence was arrested and charged in state court with Identity Fraud, a felony under state law.
If convicted, Lawrence faces a maximum of five years in prison and a fine of up to $250,000.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
The investigation, which is ongoing, has been conducted by the Federal Bureau of Investigation, the Office of Inspector General of the Social Security Administration, and the Nashua Police Department. Assistant United States Attorneys Robert Kinsella and Anna Dronzek are prosecuting the case.
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Former California Police Officer Pleads Guilty to Conspiring to File Fraudulent Tax Returns and Cashing Stolen Refund and Social Security ChecksRead the Press Release
A Pittsburg, California man pleaded guilty to conspiracy to commit theft of government money and wire fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
According to documents filed with the court, while employed as a police officer, Gary Bostick, 39, participated in a conspiracy to cash stolen U.S. Treasury checks and file tax returns in the names of deceased individuals to obtain fraudulent refunds. Bostick filed some of the fraudulent returns from his residence and he and his co-conspirators directed the refund checks to addresses they could access. Bostick and his coconspirators, to include Hugh Robinson, also acquired stolen tax refund and social security checks, which they cashed at stores in various areas, including Kentucky. Bostick recruited and directed others who participated in the scheme. He admitted to causing a tax loss of more than $720,530.
Sentencing is scheduled for Sept. 19. Bostick faces a statutory maximum sentence of five years in prison for the conspiracy count and 20 years in prison for the wire fraud count. He also faces a period of supervised release, restitution and monetary penalties. Robinson was previously convicted at trial and sentenced to 144 months in prison for his role in the conspiracy.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera, and Trial Attorney Gregory Bernstein of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Man Indicted for a Hate Crime for Making Telephonic Threat to Shoot Congregants at the Islamic Center of Greater MiamiRead the Press Release
The Justice Department today announced that Gerald Wallace, 35, was indicted by a federal grand jury on a hate crime charge for obstructing the free exercise of religious beliefs by threatening to shoot members of a mosque in Miami Gardens, Florida.
According to court documents, during the evening of February 19, 2017, Wallace left a voicemail message for the Islamic Center of Greater Miami, located in Miami Gardens, Florida.
The defendant is alleged to have left a profanity laden message against Islam, the prophet Mohammed, and the Koran, during which he threatened to go to the mosque, and stated, "I'm gonna shoot all y'all."
Counts One and Two of the superseding indictment charge Wallace with obstructing the free exercise of religious beliefs and the interstate transmission of a threatening communication for leaving this threating voicemail. Wallace was previously indicted, on May 25, 2017, for the interstate transmission of a threatening communication for making this threat. If convicted of both counts, Wallace faces a maximum penalty of 25 years in federal prison.
The charges contained in this indictment are simply accusations, and not evidence of guilt. A defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI’s Miami Area Corruption Task Force and the Miami Gardens Police Department. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr. of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Florida Man Indicted for a Hate Crime for Making Telephonic Threat to Shoot Congregants at the Islamic Center of Greater MiamiRead the Press Release
Gerald Wallace, 35, of Miami, was indicted by a federal grand jury on a hate crime charge for obstructing the free exercise of religious beliefs by threatening to shoot members of a mosque in Miami Gardens, Florida.
Benjamin G. Greenberg, Acting Unites States Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to court documents, during the evening of February 19, 2017, Wallace left a voicemail message for the Islamic Center of Greater Miami, located in Miami Gardens, Florida. The defendant is alleged to have left a profanity laden message against Islam, the prophet Mohammed, and the Koran, during which he threatened to go to the mosque, and stated, "I'm gonna shoot all y'all."
Counts One and Two of the superseding indictment charge Wallace with obstructing the free exercise of religious beliefs and the interstate transmission of a threatening communication for leaving this threating voicemail. Wallace was previously indicted, on May 25, 2017, for the interstate transmission of a threatening communication for making this threat. If convicted of both counts, Wallace faces a maximum penalty of 25 years in federal prison.
The charges contained in this indictment are simply accusations, and not evidence of guilt. A defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI’s Miami Area Corruption Task Force and the Miami Gardens Police Department. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr. of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
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.
Final Man Convicted in Cocaine ConspiracyRead the Press Release
HOUSTON – With the final plea today, three Houston men have been convicted for their roles in a $1 million narcotics trafficking conspiracy, announced Acting U.S. Attorney Abe Martinez.
Today, Robert Ashleigh Whitten, 38, pleaded guilty to conspiracy to possess with intent to distribute cocaine. Lalo Buddy Perez, 26, and Michael Anthony Patran, 28, pleaded guilty to the conspiracy and to possession of cocaine with intent to distribute in February 2017.
In 2016, law enforcement personnel began investigating a drug trafficking organization distributing significant quantities of cocaine in the Houston area. Agents quickly confirmed that Patran and Perez were both major suppliers and distributors within the Houston and Magnolia, Texas, community. Through the course of the investigation, agents also confirmed that Patran and Perez conspired with Whitten to distribute cocaine and the proceeds from the narcotics trafficking.
On Sept. 6, 2016, authorities conducted a traffic stop on a vehicle Perez was driving with Patran as passenger. At that time, law enforcement discovered a blue Puma gym bag containing 20 individually-wrapped packages of U.S. currency, which totaled approximately $237,475. They also found an AK-47 assault rifle and Walther P99 pistol.
Shortly thereafter, law enforcement agents observed Whitten at a gas station and contacted him. He lied to the police about his identity and attempted to flee, but was captured immediately. Upon a search of his Dodge Ram truck, authorities found more than 18 kilograms of cocaine and approximately $666,638.00 in his vehicle. Some of the cocaine was open and spilled into a cooler which caused an odor that permeated the vehicle.
All three men have been and will remain in custody pending sentencing, set for Nov. 16, 2017, before U.S. District Judge Sim Lake.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Julie N. Searle and Rick Bennett are prosecuting the case.
Federal Jury Convicts St. Roch Resident in Cocaine Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that yesterday a federal jury has convicted LAZANDY DANIELS, age 40, of the St. Roch neighborhood, for his role in distributing kilograms of cocaine in the New Orleans area. Following a three-day trial, the jury found DANIELS guilty of conspiracy to distribute five kilograms or more of cocaine hydrochloride (powder) and 28 grams or more of cocaine base (“crack”); and two counts relating to the distribution of crack cocaine.
According to the evidence at trial, co-defendant CRAIG JAMES was a Houston-based cocaine supplier who, during 2014 and 2015, transported up to 30 kilograms of cocaine per month from Houston to New Orleans. JAMES’S method for transportation was to hide the cocaine in the door panels of used cars, load the cars onto a flatbed truck, and drive the truck from Houston to a salvage yard in New Orleans East. Upon arrival at the salvage yard, DANIELS and others would assist JAMES in unloading the drugs; distributing the drugs to local kilogram-level dealers like co-defendants LEON JACKSON and JOPPA JACKSON; and then collecting the drug proceeds that would then be used to purchase more cocaine for resale. The evidence further showed that DANIELS sold quantities of crack and powder cocaine from a home near the intersection of North Derbigny Street and Mandeville Street in the St. Roch neighborhood. DANIELS and JAMES were arrested on December 2, 2015, at the Super 8 Hotel on Chef Menteur Highway in New Orleans East. At the time of the arrest, the men were in possession of 164 grams of crack cocaine, numerous items used to weigh and package cocaine, and almost $300,000 in cash drug proceeds.
Because DANIELS has a prior felony drug conviction, he faces a mandatory minimum sentence of twenty years in prison, a maximum life sentence, a possible fine of $20,000,000, and a supervised release period of at least ten years. Sentencing before Judge Jane Triche Milazzo is scheduled for September 14, 2017.
Co-defendants CRAIG JAMES and LEON JACKSON, JR., both previously pled guilty to conspiracy to distribute 5 kilograms or more of a mixture containing cocaine hydrochloride and 28 grams or more of a mixture containing cocaine base (crack). Both defendants are scheduled for sentencing on July 13, 2017.
Co-defendant JOPPA JACKSON previously pled guilty to conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride and is scheduled for sentencing on August 10, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration, New Orleans Police Department, Plaquemines Parish Sheriff’s Office, 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 Jury Convicts Mission, Texas Man for Role in Drug Trafficking / Money Laundering ConspiracyRead the Press Release
In San Antonio this afternoon, a federal jury convicted 45–year-old Reymundo Villarreal-Arelis (aka “Mundo”) of Mission, TX, for his role in a drug trafficking and money laundering conspiracy occurring in South Texas, Central Texas and Oklahoma announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; Acting United States Attorney Abe Martinez, Southern District of Texas; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, San Antonio Division; and, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Jurors convicted Villarreal-Arelis on one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine and one count of conspiracy to commit money laundering. Jurors found that Villarreal-Arelis and others, including 12 relatives, conspired to (1) engage in financial transactions using proceeds derived from the importation, receiving, concealment, buying, and/or selling cocaine; and (2), transport or transmit monetary instruments to locations outside of the United States in an effort to conceal the source, ownership and control of proceeds derived from unlawful activity.
Evidence presented at trial revealed that the defendant was a member of a significant Rio Grande Valley cocaine trafficking family known as “Los Piojos” led by brothers Gilberto Villarreal-Arelis, Reymundo Villarreal-Arelis, and Juan Villarreal-Arelis (aka ”Juando”) along with their nephew, Jose Luis Villarreal-Gonzalez (aka “Nune”). Since 2000, this organization was responsible for the importation and distribution of thousands of kilograms of cocaine supplied by the Gulf Cartel and subsequently, by Los Zetas. This organization maintained control over smuggling routes stretching from Guatemala to Diaz Ordaz, Mexico, across from McAllen, TX. Cocaine was smuggled into and kept in stash houses in McAllen before being transported to San Antonio, Houston, Dallas, New York, Chicago, Atlanta, Oklahoma, North Carolina and Florida.
Testimony during trial revealed that cocaine sales generated millions of dollars for this organization, some of which was used to purchase more than 50 quarter horses. The defendants used the horse racing industry as one money laundering mechanism for their illegal proceeds.
During this investigation, authorities seized 280 kilograms of cocaine and between $15-20 million in assets attributed to the criminal activity of the defendants including cash in various bank accounts, quarter horses, the Riverside Plaza shopping center in Mission, numerous residences and other real estate properties.
In addition to today’s verdict, this investigation resulted in fourteen (14) individuals and two companies pleading guilty to federal charges prior to jury selection. All are awaiting sentencing. Defendant Gilberto Villarreal-Arelis (aka “Beto”, “Betito”) remains a fugitive.
“Today’s verdict and previous guilty pleas are a testament to the tenacity of IRS-Criminal Investigation special agents when it comes to using their exceptional financial skills to help bring down drug cartels,” said IRS-CI San Antonio Field Office Special Agent in Charge William Cotter. “We’re proud to be a member of a resolute law enforcement effort that strives to dismantle drug trafficking and money laundering organizations.”
This investigation was conducted by the IRS-Criminal Investigation Waco Treasury Task Force comprised of IRS-CI, Irving Police Department, Woodway Public Safety Department and the McLennan County Sheriff’s Office together with the Drug Enforcement Administration’s McAllen, San Antonio and Houston field offices, Homeland Security Investigations and the United States Marshals Service.
Federal Gun Charge Brought Against Shrewsbury ManRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury has returned a two-count indictment charging Frank Weir, 55, of Shrewsbury, with possessing a machine gun without a permit and possessing a firearm with an obliterated serial number. Both counts identify the same Thompson U.S. Navy 1928 submachine gun, .45 caliber (manufactured by Colt).
Weir is currently in state pursuant to the State’s second-degree murder charge against Weir for the shooting death of Donna Marzilli on February 15, 2016. The machine gun at issue in this federal case is not alleged to be involved in the Marzilli shooting. An arraignment in federal court on the federal charges has not yet been scheduled.
The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and he is proven guilty. Under the National Firearms Act, a person may not possess a machine gun unless it is registered to that person in the National Firearms Registration and Transfer Record. Violation of this offense carries a maximum penalty of ten years. Under the Gun Control Act, it is unlawful to possess a firearm with an obliterated serial number. This offense carries a maximum sentence of five years. If he is convicted, the Court would determine the actual sentence after consideration of the advisory sentencing guidelines.
This case is being investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Vermont State Police. The United States is represented by Joe Perella. Weir is represented by Peter Langrock, Esq. of Middlebury.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Fountain Inn Man Indicted on Federal Gun Charge. David Jerome Butler, age 42, of Fountain Inn, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Butler could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Laurens County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Greenville County Man Indicted on Federal Gun and Drug Charges. Travis Sanchez Hunt, age 32, of Greenville County, South Carolina, was charged in a three-count indictment with one count of possession of firearms by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with the intent to distribute cocaine and cocaine base (crack), a violation of Title 21, United States Code, Section 841(a)(1); and possession of firearms in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Hunt could face is a fine of $1,500,000.00 and/or imprisonment of 450 years. The case was investigated by the Greenville Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
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.
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Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Greenville Resident Indicted on Possession and Distribution of Child Pornography. Micah R. Vickery, age 37, of Greenville, South Carolina, was charged in a 2-count indictment with possession of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B) and distribution of child pornography, a violation of Title 18, United States Code, Section 2252(a)(2). The maximum penalty Vickery could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of ICE-Homeland Security Investigations and is assigned to Assistant United States Attorney William J. Watkins, Jr. of the Greenville office for prosecution.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
Mauldin Resident Indicted on Federal Gun Charges. Alvin Andrae Drummond, age 41, of Mauldin, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, in violation of Title 18, United States Code, Sections 922(g)(1) and (g)(9). The maximum penalty Drummond could face is a fine of $250,000.00 and/or life imprisonment. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Greenville County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Jamie Schoen of the Greenville office.
Individual Indicted on Federal Gun Charges. Nicholas La Shaun Finley, age 45, was charged in a one-count indictment with possession of ammunition by a prohibited person, in violation of Title 18, United States Code, Sections 922(g)(1) and (g)(9). The maximum penalty Finley could face is a fine of $250,000.00 and/or life imprisonment. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Greenville County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Jamie Schoen of the Greenville office.
Four Aliens Arrested and Charged with Illegal Re-Entry into the United States. Rigoberto Morales-Hernandez, Tomas De La Cruz-Chingo, Luis Mario Olmos Betancourt, and Pedro Antonio Medina were each charged in separate indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by agents of the ICE-Homeland Security Investigations and are being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Spartanburg Man Indicted on Federal Gun and Drug Charges. Thomas Edward Norman, age 33, of Spartanburg, South Carolina, was charged in a three-count indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with the intent to distribute heroin and cocaine, a violation of Title 21, United States Code, Section 841(a)(1); 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 Norman could face is a fine of $1,500,000.00 and/or imprisonment of 35 years. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Richard Lamar Chapman, age 24, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Chapman could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Brian Delquez Edwards, age 19, of Spartanburg, South Carolina, was charged in a three-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); and possession of a stolen firearm, a violation of Title 18, United States Code, Section 922(j). The maximum penalty Edwards could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Charles Alex Hamilton, age 47, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of firearms and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Hamilton could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charges. Vernard Buckman, Jr., age 32, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person previously charged with a criminal domestic violence conviction, a violation of Title 18, United States Code, Sections 922(g)(1) and 922(g)(9). The maximum penalty Buckman could face is a fine of $250,000.00 and/or imprisonment of 10 years. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
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.
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Fayette County Woman Indicted for Escape from Federal CustodyRead the Press Release
PITTSBURGH – A Fayette County woman has been indicted by a federal grand jury in Pittsburgh for escaping from federal custody following a prior federal felony conviction, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Tiffany Lilley, age 28, as the sole defendant.
According to the indictment, Lilley escaped from federal custody at Renewal Incorporated Community Correction Center in Pittsburgh, Pennsylvania on March 28, 2017.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
The United States Marshals 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.
Ellwood City Man Sentenced to Prison for Distribution of Child PornographyRead the Press Release
PITTSBURGH - A former resident of Beaver County, Pennsylvania, was sentenced in federal court to 135 months imprisonment, followed by 20 years supervised release, and $1,000.00 in restitution, on a charge of Distribution of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Lucas Avery Klobetanz, age 40.
According to information presented to the court, on or about October 8, 2015, Klobetanz distributed videos and images containing material depicting the sexual exploitation of minors.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Pennsylvania State Police for conducting the investigation leading to the successful prosecution of Klobetanz.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Eight People Charged in Takedown of Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. - Federal and local law enforcement authorities arrested eight people this week for their alleged roles in a drug trafficking organization that distributed cocaine, crack cocaine, and heroin in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.
John Gunther, 34, of Blackwood, New Jersey, George Williams, 42 of Oaklyn, New Jersey, Taleaf Gunther, 31, William Roland, 35, Daron Suiter, 23, Karim Johnson, 38, Latoya Whealton, 32, and Rajai Gaines, 33, all of Camden, are charged by complaint with one count of drug trafficking conspiracy.
Taleaf Gunther, Williams, Whealton, Suiter, and Johnson were arrested June 14, 2017. John Gunther, Roland, and Gaines were arrested June 13, 2017. All eight defendants appeared before U.S. Magistrate Judge Joel Schneider in Camden federal court on their respective arrest dates – except for Taleaf Gunther who appeared today – and were detained.
According to the complaints:
The defendants are members of a drug trafficking organization that dealt cocaine, crack cocaine, and heroin in and around Camden, with criminal activities concentrated on the 1700 block of Filmore Street. The organization also supplied drugs to customers and other distributors elsewhere.
John Gunther and Taleaf Gunther, the alleged leaders and managers of the operation, obtained bulk supplies of narcotics, prepared and packaged those controlled substances for street level sale, provided crack cocaine and heroin to other members for resale to customers, collected drug proceeds, and oversaw the daily sales and operation of the organization. Other members of the organization – including Roland, Suiter, Johnson, and Whealton – assisted in the preparation, distribution, and sale of the drugs. Williams allegedly supplied the organization with heroin. Gaines allegedly assisted with the preparation of drugs for resale.
An investigation led by the FBI used surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, record checks, a GPS vehicle tracker, and multiple telephone wiretaps to uncover the operations of the drug trafficking organization.
The drug trafficking conspiracy count carries a maximum potential penalty of 20 years in prison and a $5 million fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Sherriff’s Department under the direction of Sherriff Gilbert Wilson; the Cherry Hill Police Department, under the direction of William Monaghan; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to the charges.
He also thanked the Gloucester Township Police Department, U.S. Immigration and Customs Enforcement, and U.S. Department of Health and Human Services for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni and Special Assistant U.S. Attorney Erin M. Fay of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Eight Current and Former Law Enforcement Officers, Four Correctional Officers, and Others Sentenced for Their Participation in Drug Distribution ConspiracyRead the Press Release
Greenville - Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and United States Attorney John Stuart Bruce announced that eight current and former law enforcement officers, four correctional officers and two other individuals have been sentenced for their participation in trafficking narcotics and narcotics proceeds for a purported large-scale drug trafficking organization. The individuals used their affiliation with law enforcement to make money by protecting shipments of purported narcotics and narcotics proceeds.
Senior United States District Court Judge Malcolm J. Howard sentenced the following 14 defendants on a variety of charges, including conspiracy to distribute illegal narcotics, firearm charges and bribery charges: Lann Tjuan Clanton, 38, of Garysburg, NC was sentenced to 195 months; Ikeisha Jacobs, 33, of Rich Square, NC, was sentenced to 120 months; Jason Boone, 31 of Henrico, NC, was sentenced to 96 months; Wardie Vincent Jr., 37, of Henrico, NC, was sentenced to 72 months; Adrienne Moody, 38 of Roanoke Rapids, NC was sentenced to 87 months; Cory Jackson, 45, of Garysburg, NC, was sentenced to 87 months; Jimmy Pair Jr., 50, of Pleasant Hill, NC, was sentenced to 87 months; Curtis Boone, 37, of Gaston, NC, was sentenced to 87 months; Thomas Jefferson Allen, 39 , of Roanoke Rapids, NC, was sentenced to 87 months; Alaina Sue-Kam-Ling, 27, of Charlotte, NC, was sentenced to 38 months; Kavon Phillips, 26, of Rich Square, NC, was sentenced to 57 months; Alphonso Ponton, 44, of Weldon, NC, was sentenced to 48 months; Crystal Pierce, 32, of Roanoke Rapids, NC, was sentenced to 6 months; and Tohsa Dailey, 37, of Garysburg, NC, was sentenced to 24 months.
According to factual statements made in connection with the defendants’ guilty pleas, at the time of the crimes charged, Jacobs, Jason Boone, Pair Jr., Curtis Boone and Allen were Deputy Sheriffs at the Northampton County Sheriff’s Office; Clanton, Vincent Jr. and Jackson were former law enforcement officers; Moody, Sue-Kam-Ling, Phillips and Ponton were correctional officers; and Dailey was a 911 dispatch operator for Northampton County.
John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, stated: "Our office was pleased to partner with the FBI and the Criminal Division’s Public Integrity Section in this important case. When law enforcement officers breach their public trust by agreeing to assist criminal organizations for profit, they must be held accountable, as was done in this prosecution."
"They vowed to protect and serve, but instead these law enforcement officers sold their badges to line their own pockets. Public corruption is the number one criminal priority of the FBI and we will work aggressively to protect the public trust," said John Strong, Special Agent in Charge of the FBI in North Carolina.
The charges stemmed from a large-scale undercover investigation into allegations of systemic law enforcement corruption in Northampton County. Admissions made in connection with the defendants’ guilty pleas revealed that during the course of the undercover investigation, the defendants aided in transporting purported illegal narcotics and illegal narcotics proceeds through North Carolina and elsewhere in exchange for thousands of dollars of payments.
In May 2017, a jury convicted a fifteenth defendant, Antonio Tillmon, 34, of Windsor, NC of drug, firearm and bribery charges relating to this scheme. Tillmon, a former North Carolina police officer, will be sentenced on Aug. 8, 2017. All 15 defendants indicted in this case have now been convicted of various offenses.
The case was investigated by the FBI’s Charlotte Division, Raleigh Resident Agency. The case is being prosecuted by Assistant U.S. Attorney Toby W. Lathan of the Eastern District of North Carolina and Trial Attorneys Lauren Bell and Molly Gaston of the Criminal Division’s Public Integrity Section.