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25 May 2017
Antioch Man Sentenced in Insurance Fraud SchemeRead the Press Release
John O. Wilson, 54, of Antioch, Tenn., was sentenced today to 52 months in prison, followed by three years of supervised release for defrauding his clients and insurance agencies out of more than $800,000, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. Wilson was also ordered to pay $841,000 in restitution.
Wilson pleaded guilty in August 2016 to two counts of wire fraud in connection with his nearly decade-long scheme to defraud and obtain money from his clients and various insurance agencies by making false representations and using interstate wires to further his scheme. From at least as early as November 2005 until approximately August 2014, Wilson, a licensed insurance producer in Tennessee, was the owner and operator of an insurance agency known as Preserve Financial Group, Inc. (“PFG”) located in the Metropolitan Nashville area. Wilson admitted to conducting his fraud scheme in at least three ways:
First, in order to obtain increased commissions, Wilson would advise clients to remove their money from their existing tax-deferrable investments and purchase multiple insurance policies. In doing so, Wilson would not disclose to his clients the consequences of the repeated investments, including adverse tax consequences and substantial surrender charges.
Second, Wilson would convince some clients to surrender insurance policies or annuities to him for investment in another insurance policy or annuity. Instead of investing the money as promised, Wilson would cause these funds to be deposited into the PFG bank account he controlled, and he would then use the funds primarily for his own benefit.
Finally, Wilson would convince some clients to surrender insurance policies or annuities by deceiving clients into believing they were investing in PFG by purchasing stock in the company. In truth, there was no such stock and, instead, the money was deposited into the PFG account, which was then used primarily for Wilson’s own personal benefit.
This case was investigated by the Federal Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Anderson Man Sentenced to 100 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake stated today that Daniel Neil Alexander, age 49, of Anderson, SC, was sentenced in federal court, in Greenville, SC, by United States District Judge Bruce Howe Hendricks. Mr. Alexander had previously pled guilty to Conspiracy to Possess with the Intent to Distribute Methamphetamine, in violation of Title 21, United States Code, Section 846. Judge Hendricks sentenced Alexander to 100 months imprisonment on that count.
Evidence presented at the change of plea hearing established that Mr. Alexander had helped to coordinate the distribution of methamphetamine, out of Georgia, from his co-defendant to individuals living in South Carolina and North Carolina. Mr. Alexander had aided the distribution of more than 5000 grams of methamphetamine over a four-month period.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Joe Brewer of the Greenville office handled the case.
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Alien Located in Lexington Pleads Guilty to Illegal Re-EntryRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Bartolome Olivar-Barrera, age 40, of El Salvador, has entered a guilty plea in federal court in Columbia, to Illegal Re-Entry, a violation of 8 U.S.C. § 1326(a)(2) and (b). United States District Chief Judge Terry L. Wooten, of Columbia, accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Olivar-Barrera was encountered by agents from ICE-Homeland Security Investigations on February 4, 2017, at the Lexington County Detention Center in Lexington, SC, after he was arrested for Driving Under the Influence. He was using the alias “Ever Hernandez “ when arrested but an investigation revealed his true name and that he is a citizen of El Salvador. It was also determined that Olivar-Barrera had been convicted of Common Law Robbery in 1998 in North Carolina while using the alias “ Jose Gomez-Olivar”. He had been deported on May 30, 1999, using this alias, pursuant to an order of removal then re-entered the United States without permission.
Ms. Drake stated the maximum penalty for Illegal Re-Entry is imprisonment for 20 years and/or a fine of $250,000.
The case was investigated by agents from ICE-Homeland Security Investigations. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Albuquerque Man Pleads Guilty to Federal Cocaine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Pascual Cerpa-Coy, 55, of Albuquerque, N.M., pled guilty today in federal court to a cocaine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Cerpa-Coy was arrested in Jan. 2017, on a criminal complaint charging him with possession of cocaine with intent to distribute on Jan. 19, 2017, in Bernalillo County, N.M. Cerpa-Coy subsequently was indicted on the same charge on Feb. 7, 2017.
According to court documents, Cerpa-Coy was arrested after the Crimes Against Children Unit of the Albuquerque Police Department found approximately one kilogram of cocaine and drug paraphernalia at his residence while executing a state search warrant as part of an investigation of juvenile sexual abuse.
During today’s proceedings, Cerpa-Coy entered a guilty plea to the indictment and admitted possessing more than 500 grams of cocaine on Jan. 19, 2017, that he intended to distribute to others. At sentencing, Cerpa-Coy faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and APD. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
24 May 2017
Washington Man Sentenced to Seven Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a man from Washington state was sentenced in federal court in Anchorage for being a felon in possession of a firearm.
Jesse Robert Smith, 35, from Sedro-Wooley, Washington, was sentenced by Chief U.S. District Judge Timothy M. Burgess to seven years in prison to be followed by three years of supervised release.
On July 13, 2016, Wasilla Police contacted Smith while he was passed out in the driver's seat of a running vehicle at the Wasilla Fred Meyer parking lot. During the contact, Smith was in possession of a Taurus .32 caliber pistol, 330 grams of heroin, and $20,990 in U.S. currency. At the time, Smith had previously been convicted of conspiracy to distribute cocaine, and was prohibited from possession of firearms or ammunition.
Before imposing a sentence, Judge Burgess commented that Smith had an "ugly" criminal history. Smith has a lengthy criminal history that includes five prior felony convictions, two for drug distribution, two for drug possession, and one for possession of stolen property.
Acting U.S. Attorney Schroder commended the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wasilla Police Department, and the Alaska State Troopers for the investigation leading to the successful prosecution of this case.
Two Pittsburgh Men Charged with Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - Two Pittsburgh residents have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on May 23, named the defendants as:
• Leonard Rushin-Felder, age 21; and
• Mark Ridley, age 25.According to the indictment, on April 25, 2017, Rushin-Felder and Ridley conspired to possess with intent to distribute and distribute heroin. Both defendants are also charged with possession with intent to distribute heroin. Additionally, Rushin-Felder is charged with possession of a firearm in furtherance of a drug trafficking crime on April 25, 2017.
The law provides for a maximum total sentences ranging from up to 20 years in prison to up to life in prison, and fines ranging from $250,000 to $1,000,000, 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 Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Cincinnati Individuals Charged with Conspiracy to Sex Traffic Child, Produce Child PornographyRead the Press Release
CINCINNATI – A federal grand jury has charged Eric Zyn Ho, 25, and Bryan Mathew Otero, 27, both of Cincinnati, with conspiracy to sex traffic children and conspiracy to produce child pornography in an indictment returned in Cincinnati. Both defendants are scheduled to appear in federal court at 1:30pm today for arraignment on the indictment.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and other members of the FBI’s Child Exploitation Task Force announced the indictment.
The indictment alleges that earlier this month the defendants conspired to harbor a 14-year-old female and cause her to engage in a commercial sex act. Ho and Otero also allegedly conspired to coerce the minor victim to engage in sexually explicit conduct for the purpose of creating child pornography.
Both defendants were charged by criminal complaint and arrested on May 4 and remain in custody.
Conspiracy to sex traffic children is a crime punishable by up to life in prison. Conspiracy to produce child pornography carries a mandatory minimum of 15 years in prison up to 30 years.
U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Three Aliens Indicted on Illegal Reentry ChargesRead the Press Release
WILMINGTON – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Wilmington has returned indictments charging FRANKIE GARCIA-PINEDA, age 36, of Mexico, TYRONE LEONARD JAMES, age 55, of Jamaica, and TEOFILO PINO-CANELA, age 55, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, GARCIA-PINEDA and PINO-CANELA would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
JAMES is alleged to have been previously deported subsequent to aggravated felony convictions (possession of a controlled substance with intent to distribute and illegal reentry of an aggravated felon). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Tahlequah Woman Sentenced to 41 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MATILDA KAY BIRDTAIL, age 21, of Tahlequah, Oklahoma, was sentenced to 41 months imprisonment and 3 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C).
The Information alleged that on or about December 13, 2015, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly combine, conspire, confederate and agree with other persons known and unknown to Possess with Intent to Distribute and to Distribute a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Star Man Pleads Guilty to Federal Gun ViolationRead the Press Release
BOISE — Kyle Henry Marcum, 27, of Star, Idaho, pleaded guilty yesterday to aiding and abetting the sale of a stolen firearm, Acting U.S. Attorney Rafael Gonzalez announced. Marcum and co-defendant Bruce Threet were indicted in February by a federal grand in Boise.
According to information presented in court, on September 15, 2016, Marcum was present when co-defendant Bruce Threet sold a stolen firearm to an undercover police officer. The firearm, a Ruger, .22 pistol, was reported stolen three days earlier by a homeowner in Eagle, Idaho. Although Marcum did not steal the firearm, he arranged for the sale of the firearm knowing that the firearm was stolen.
The charge of aiding and abetting the sale of a stolen firearm is punishable by up to ten years in prison, a maximum fine of $250,000 and up to three years of supervised release.
Sentencing will be August 9, 2017, before Senior District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Boise Police Department.
St. Petersburg Violent Crime Reduction InitiativeRead the Press Release
Tampa, Florida – Acting U.S. Attorney W. Stephen Muldrow, Special Agent in Charge Daryl R. McCrary of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Chief Anthony Holloway of the St. Petersburg Police Department, and State Attorney Bernie McCabe of the Sixth Judicial Circuit announce the culmination of a long-term firearms, drug trafficking, and violent crime operation dubbed the St. Petersburg Violent Crime Reduction Initiative. As a result of this eight-month initiative,
federal charges have been filed against 35 individuals and state charges have been filed against 9 individuals . The charges brought during this investigation arose from a partnership between the U.S. Attorney’s Office, the State Attorney’s Office, ATF, and the St. Petersburg Police Department, under the auspices of the Department of Justice’s Project Safe Neighborhoods (PSN) Comprehensive Anti-Gang Initiative. The PSN Program is a nationwide, gun-violence reduction strategy."The prosecutions announced today underscore our office's ongoing commitment to prosecuting violent and armed criminals,” said Acting U.S. Attorney Muldrow. “They also reflect the strength of our federal, state, and local law enforcement partnerships. We will continue work to together to make our communities safer."
“ATF’s primary focus is protecting the public by reducing violent crime,” said Special Agent in Charge McCrary. “ATF continues to aggressively pursue violent offenders and will continue to protect and serve communities with our law enforcement partners.”
“The more guns we take off the street, the more successful we are at reducing the fear of crime in our community” said Chief Holloway. “It is this kind of inter-agency relationship that makes our public safety efforts in the state of Florida so effective.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, and the State Attorney’s Office for the Sixth Judicial Circuit. The federal cases will be prosecuted by Assistant United States Attorneys from the Violent Crimes and Gangs Section. The state cases will be prosecuted by Assistant State Attorneys from the Sixth Judicial Circuit.
Spanish Native Sentenced for Defrauding Charities and Law FirmsRead the Press Release
BOSTON – A Spanish native residing in Quincy was sentenced today in federal court in Boston for using counterfeit cashier’s checks to defraud victims, including charities and law firms, of nearly $1 million.
Manuel Ponce Vazquez, 60, was sentenced by U.S. District Court Judge Indira Talwani to 31 months in prison, three years of supervised release, and ordered to pay restitution of over $995,000. Ponce Vazquez, a Spanish citizen, will face removal proceedings upon the completion of his sentence. In July 2016, Ponce Vazquez pleaded guilty to one count of mail fraud.
Beginning around August 2013, Ponce Vazquez and his co-conspirators defrauded law firms and non-profits, including charities, by sending them fraudulent cashier’s checks and convincing them to wire money to Ponce Vazquez, and others, with the false assurance that the fake checks would cover the expense.
When Ponce Vazquez and his co-conspirators targeted charities, they pretended to be donors who accidentally donated more than they intended. For example, Ponce Vazquez would mail the charity fraudulent cashier’s checks that purported to be donations. To pressure the charities to return the excess donation immediately, co-conspirators told the charities, among other things, that the money was needed to fund surgery for a young girl “to better her chances of living” through a “life threatening situation.” The conspirators asked that the money be sent to associates, including Ponce Vazquez. Only after the charities complied did they discover the cashier’s check representing the original “donation” was fraudulent.
When law firms were targeted, the conspirators pretended to be new clients in need of help collecting a debt. Before the firms took any action to collect the supposed debt, they received counterfeit cashier’s checks, ostensibly from the debtors, fully repaying the debt. At the direction of one of Ponce Vazquez’s co-conspirators, the firms forwarded the majority of the checks’ purported value to a bank account that Ponce Vazquez controlled, unwittingly paying Ponce Vazquez using the firms’ own money.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Shelly Binkowski, Special Agent in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistance was also provided by the Braintree Police Department and the Norfolk District Attorney’s Office. Assistant U.S. Attorney Brian A. Pérez-Daple of Weinreb’s Economic Crimes Unit prosecuted the case.
South Bend Man Found Guilty of Being A Felon in Possession of A FirearmRead the Press Release
SOUTH BEND – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Rodoundy Smith, age 31, of South Bend, Indiana was convicted of being a felon in possession of a firearm, after a two-day jury trial before United States District Court Judge Robert L. Miller, Jr.
According to documents filed in this case, on or about January 4, 2017, Smith possessed a firearm after previously being convicted of a felony offense. Smith is scheduled to be sentenced on September 11, 2017 at 1:15 p.m.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Luke N. Reilander.
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Shoshone-Bannock Tribal Member Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
POCATELLO – Patrick Tyronne Mosho, 31, of Chubbuck, Idaho, pleaded guilty today to one count of assault resulting in serious bodily injury from Mosho firing a rifle into a group of people, Acting U.S. Attorney Rafael Gonzalez, announced. Mosho was indicted on October 27, 2015, by a federal grand jury in Pocatello.
According to the plea agreement, on October 18, 2015, Mosho got into a disagreement with others at a residence on the Fort Hall reservation. Mosho left the residence, returned a short time later, got out of his car with a rifle and began shooting toward a group of people on the residence’s porch. One of the bullets struck the victim, damaging his kidney and other organs. The victim lost one of his kidneys as a result of the shooting.
The charge of assault resulting in serious bodily injury is punishable by up to ten years in prison, a maximum fine of $250,000 and up to three years of supervised release.
Sentencing will be August 3, 2017, before Chief U.S. District B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Federal Bureau of Investigation and the Fort Hall Tribal Police.
Seven People Charged with Conspiring to Steal Trade Secrets for Benefit of Chinese Manufacturing CompanyRead the Press Release
WASHINGTON – A criminal complaint was unsealed today charging seven individuals with conspiring to steal trade secrets from a business in the U.S. on behalf of a company in China that was engaged in manufacturing a high-performance, naval-grade product for military and civilian uses.
On May 23, 2017, two defendants were arrested in Washington, D.C., three in the Southern District of Texas, and one in the District of Massachusetts. All are charged in the U.S. District Court for the District of Columbia with conspiracy to commit theft of trade secrets. The government also filed a related civil forfeiture complaint in the District of Columbia for two pieces of real property which were involved in, and are traceable to, the alleged illegal conduct.
Those arrested and charged include four U.S. citizens: Shan Shi, 52, of Houston, Texas; Uka Kalu Uche, 35, of Spring, Texas; Samuel Abotar Ogoe, 74, of Missouri City, Texas; and Johnny Wade Randall, 48, of Conroe, Texas. Also charged were Kui Bo, 40, a Canadian citizen who has been residing in Houston, and Gang Liu, 31, a Chinese national who has been residing in Houston as a permanent resident.
Additionally, charges were filed against one Chinese national living in China, Hui Huang, 32, an employee of the Chinese manufacturing firm allegedly involved in tasking employees of the Houston company.
The charges were announced by Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Channing D. Phillips for the District of Columbia, Assistant Director Bill Priestap of the FBI’s Counterintelligence Division, Director Douglas Hassebrock of the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) Office of Export Enforcement, and Chief Richard Weber of IRS-Criminal Investigation (IRS-CI).
According to an affidavit filed in support of the criminal complaint, the trade secrets were stolen in order to benefit a manufacturer located in China; this manufacturer was the only shareholder for a company that had been incorporated in Houston. Between in or about 2012 and the present, the affidavit alleges that the Chinese manufacturer and employees of its Houston-based company engaged in a systematic campaign to steal the trade secrets of a global engineering firm, referred to in the affidavit as “Company A,” that was a leader in marine technology.
The case involves the development of a technical product called syntactic foam, a strong, light material that can be tailored for commercial and military uses, such as oil exploration; aerospace; underwater vehicles, such as submarines; and stealth technology. According to the affidavit, the Chinese manufacturer intended to sell syntactic foam to both military and civilian, state-owned enterprises in China – part of a push toward meeting China’s national goals of developing its marine engineering industry.
The affidavit alleges that the conspirators took part in the theft of trade secrets from Company A, a multi-national company with a subsidiary in Houston that is among the major producers of syntactic foam. The affidavit identifies a number of trade secrets allegedly taken from the company between January and June of 2015, including secrets that allegedly were passed to people associated with the Chinese manufacturer and Houston-based company.
Defendant Shi was hired by the Chinese company on a contract basis in March 2014 in order to bring in experts, set up a design team, and push forward marine buoyancy technology. That same month, Shi incorporated the new company in Houston that was owned by the Chinese manufacturer.
The affidavit alleges that defendants Shi and Bo then began to systematically target U.S. employees with experience in the production of syntactic foam. Between late 2014 and early 2015, the new company in Houston hired two former Company A employees, defendants Ogoe and Liu, by offering a combination of cash incentives and high paying positions. Uche, who was at the time a current employee of Company A, provided trade secrets to Ogoe, the affidavit alleges. Defendant Randall, who was at the time a current employee of Company A, allegedly provided at least one stolen trade secret to Ogoe.
Ogoe provided these trade secrets as well as additional information to the company owned by the Chinese manufacturer in Houston shortly after being hired, the affidavit alleges. Liu also provided Company A trade secrets shortly after being hired.
Some of these trade secrets were sent by Shi and Bo and others to defendant Huang, an employee of the manufacturer in China, so that the Chinese manufacturer could create a functional syntactic foam manufacturing facility, the affidavit states.
The maximum penalty for a person convicted of conspiring to commit theft of trade secrets is 10 years in prison and potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The charges in a criminal complaint are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The defendants are expected to make their initial court appearances today: Shi and Liu in the District of Columbia; Bo in the District of Massachusetts; and Ogoe, Uche and Randall in the Southern District of Texas. Huang remains at large.
The case is being investigated by the FBI’s Houston Field Office, Commerce’s BIS Office of Export Enforcement, and the IRS-CI.
The case is being prosecuted by Assistant U.S. Attorneys Jeffrey Pearlman and Zia Faruqui of the District of Columbia, and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Assistant U.S. Attorney John L. Hill.
Sapulpa Woman Sentenced to 46 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LATISHA DAWN ARNOLD, age 37, of Sapulpa, Oklahoma, was sentenced to 46 months imprisonment and 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A).
The Second Superseding Indictment filed in July, 2016, alleged that beginning in or about the end of 2013 and continuing until on or about January 27, 2016, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and to Distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
San Francisco Resident Sentenced to Seven Years in Prison for Stealing Prisoner Identities and Filing Fraudulent Tax ReturnsRead the Press Release
SAN FRANCISCO – Howard Webber was sentenced yesterday to serve 84 months in prison for stealing identities and conspiring to file fraudulent tax returns, announced U.S. Attorney Brian J. Stretch and Acting Deputy Assistant Attorney General Stuart M. Goldberg, of the Justice Department’s Tax Division. The sentence follows a two-week trial before the Honorable Richard Seeborg, U.S. District Judge, at the conclusion of which a jury found Webber guilty of the criminal conduct.
On January 24, 2017, a jury found Webber, 52, of San Francisco, guilty of conspiring to commit mail and wire fraud, mail fraud, and aggravated identity theft. According to the evidence presented at trial, from June 2010 through January 2012, Webber conspired with Clifford Bercovich to obtain the names and social security numbers of fellow inmates while Webber was incarcerated at several prisons and jails, including San Quentin State Prison, Santa Clara County jail, and the Milwaukee Secure Detention Facility in Milwaukee, Wisconsin. The evidence demonstrated Webber and Bercovich convinced inmates to give them their names and social security numbers by explaining that they could help the inmates take advantage of government stimulus programs or secret tax loopholes. Webber and Bercovich recruited inmates to help them solicit the identities of other inmates and created a limited-liability company, Inmate Assets Recovery and Liquidation Services LLC, to make their scheme appear legitimate.
Webber and Bercovich used the identities they obtained to file false federal income tax returns with the Internal Revenue Service (IRS). The returns falsely represented that the individuals earned wages or other income. The returns also fraudulently claimed refunds. Webber and Bercovich opened a post office box which they listed on each false return and used to receive the fraudulently obtained refund checks. In some cases, the defendants also directed that refunds be wired to bank accounts, which they opened and controlled. According to the evidence presented at trial, Webber and Bercovich filed more than 700 false returns and received over $600,000 in fraudulently obtained income tax refunds.
In addition to the term of prison imposed, Judge Seeborg also ordered Webber to serve 3 years of supervised release. A hearing has been scheduled for June 12, 2017, to determine restitution to the Internal Revenue Service.
Assistant U.S. Attorney William Frentzen and Trial Attorneys Gregory Bernstein and Arthur J. Ewenczyk of the Tax Division prosecuted the case. U.S. Attorney Stretch and Acting Deputy Assistant Attorney General Goldberg thanked the special agents of IRS–Criminal Investigation who conducted the investigation.
Romanian Man Sentenced for ATM Card Skimming SchemeRead the Press Release
BOSTON - A Romanian man was sentenced today in federal court in Springfield in connection with an ATM card skimming scheme.
Bogdan Mocanu, 31, a Romanian national residing in Queens, N.Y., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 28 months in prison and ordered to pay restitution in the amount of $342,971 and forfeiture of $342,971. Mocanu will be deported immediately upon completion of his sentence. On Aug. 30, 2016, Mocanu pleaded guilty to one count each of conspiracy to commit bank fraud, bank fraud and aggravated identity theft.
From January 2013 until his arrest on July 15, 2015, Mocanu conspired with others to defraud several banks through a massive ATM skimming operation in Massachusetts, New York, New Jersey and elsewhere. Mocanu and others installed skimmer devices and pinhole cameras on ATMs at various banks, which captured the names and account numbers of hundreds of customers as they made transactions at the ATMs. The pinhole cameras recorded the personal identification numbers of the customers as they entered the information on the ATM keypads. The conspirators then removed the skimmer devices and pinhole cameras and used the account numbers and personal identification numbers to create fraudulent cards; they then used the fraudulent cards to withdraw money from the customers’ bank accounts, resulting in substantial losses to the financial institutions.
Acting United States Attorney William D. Weinreb; David L. Jaffe, Acting Chief of the Justice Department’s Organized Crime and Gang Section; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Division; and Terence S. Opiola and Matthew J. Etre, Special Agents in Charge of Homeland Security Investigations in Newark and Boston, respectively, made the announcement today. Assistance was provided by the East Longmeadow, Cambridge, and Medford Police Departments, as well as Bank of America’s Security and Fraud Section and PNC Bank’s Security Division. The Middlesex (Massachusetts) County District Attorney’s Office, the U.S. Attorney’s Office for the Eastern District of New York, and the U.S. Attorney’s Office for the District of New Jersey assisted in the investigation and prosecution. Assistant U.S. Attorney Steven H. Breslow of Weinreb’s Springfield Branch Office and Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Rochester Resident Arrested for Child Sex Offense CrimesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Amit Pandey, 41, of Rochester, NY, was arrested and charged by criminal complaint with production of child pornography and online enticement of a minor. The charges carry a minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Pandey was arrested in February, 2017 by deputies with the Monroe County Sheriff’s Office when he was discovered having sex in a parked vehicle with a 16-year old minor female. The defendant’s cell phone was seized during the arrest. A forensic analysis uncovered sexually graphic chats and images using the Kik application between Pandey and the minor female. The defendant also used the cell phone to arrange to meet the minor victim for sex.
The defendant made an initial appearance before Magistrate Judge Marian W. Payson and is being detained.
The criminal complaint is the result of an investigation by the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn and Special Agents with the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rapid City Man Sentenced for Assaulting Federal Officers and Discharging a Firearm During a Crime of ViolenceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Assaulting Federal Officers and Discharging a Firearm During and in Relation to a Crime of Violence was sentenced on May 22, 2017, by U.S. District Judge Roberto A. Lange.
Linn Jacob Cross Dog, III, age 23, was sentenced to 240 months in prison, followed by 5 years of supervised release, restitution in the amount of $840.60, and a special assessment to the Federal Crime Victims Fund in the amount of $300.
Cross Dog was indicted by a federal grand jury on May 17, 2016. He pled guilty on March 7, 2017.
The conviction stems from a series of events that occurred in May 2016 on the Rosebud Sioux Indian Reservation. At approximately 1:00 a.m., on the morning of May 11, 2016, a Rosebud Sioux Tribe Police Officer initiated a traffic stop of a vehicle with a headlight out near Parmelee, South Dakota. While the officer was speaking to the driver outside of the vehicle, a second officer arrived and walked a drug detector canine around the vehicle. canine alerted to a rear passenger door of the vehicle. Cross Dog, who had been seated in a passenger seat, climbed into the driver’s seat and told the remaining passengers, two women and two small children, that they were coming with him. He then drove away. While he was driving, Cross Dog produced a handgun, brandished it at the passengers, and put the gun in his mouth.
The police officers pursued Cross Dog’s vehicle at speeds up to 90 mph. After several minutes, Cross Dog turned onto a gravel road and stopped. He exited the vehicle and fled on foot with the handgun. The officers pulled up and continued their pursuit on foot. One of the officers eventually caught up to Cross Dog, who was ignoring commands to stop, and struck Cross Dog with his baton. Cross Dog turned and fired his handgun at the officer, wounding the officer in the forearm. The officers returned fire, but could not locate Cross Dog in the thick brush where he was hiding. Unable to see Cross Dog, the officers withdrew and sought medical attention for the wounded officer. Cross Dog escaped on foot. The wounded officer was taken by ambulance to Cherry County Hospital in Valentine, Nebraska, and then by air ambulance to Rapid City Regional Hospital in Rapid City. As a result of the shooting, he suffered life-threatening blood loss and a shattered ulna.
On May 12, 2016, Cross Dog was charged by criminal complaint in U.S. District Court with Assault with a Dangerous Weapon, and a warrant was issued for his arrest.
On May 13, 2016, law enforcement received information that Cross Dog was at a house in Parmelee, and went there to arrest him. Agents from the Federal Bureau of Investigation and the U.S. Marshals Service entered the house behind a ballistic shield and located Cross Dog sleeping in a bedroom, with his hand on a handgun. Cross Dog ignored commands to show his hands and not move, and instead turned over in the bed and put his hand between the bed and the wall. Believing Cross Dog was reaching for a gun, the agents rushed forward and pinned Cross Dog to the bed. Cross Dog was subsequently arrested. A loaded handgun, which was later determined to be the same gun he shot the police officer with, was found in his possession. Cross Dog, who had been awake and injecting methamphetamine for six days straight prior to shooting the police officer, will also forfeit ownership of the handgun as part of his sentence.
The case was investigated by the Federal Bureau of Investigation, the Rosebud Sioux Tribe Law Enforcement Services, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Numerous additional agencies were involved in the search for Cross Dog between May 11 and 13, 2016, including the Bureau of Indian Affairs, Rosebud Sioux Tribe Game, Fish and Parks Department, South Dakota Highway Patrol, South Dakota National Guard, South Dakota Division of Criminal Investigation, Mellette County Sheriff’s Office, Stanley County Sheriff’s Office, and the Pierre Police Department. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Cross Dog was immediately remanded to the custody of the U.S. Marshals Service.
Prior Sex Offender from Silver City Pleads Guilty to Child Exploitation and Child Pornography ChargesRead the Press Release
ALBUQUERQUE – This morning in Las Cruces, N.M., Michael Ray Sepulveda, 38, of Silver City, N.M., pled guilty to federal child exploitation and child pornography charges. The plea agreement recommends a sentence within the range of 20 to 25 years in prison followed by a lifetime of supervised release. Sepulveda will be required to continue to register as a sex offender after he completes his prison sentence.
Sepulveda was arrested on Oct. 28, 2016, on a criminal complaint alleging that he enticed a child to engage in sexual activity and to produce child pornography, which was transmitted in interstate commerce. According to the criminal complaint, Sepulveda committed these crimes between July 2015 and Nov. 2015. Court filings reflect that law enforcement authorities began investigating Sepulveda for the alleged crimes in the summer of 2016, immediately after learning about his crimes while investigating other conduct.
According to the criminal complaint, Sepulveda used an online social networking website to engage in sexually explicit communications with an underage minor (victim) between July 2015 and Nov. 2015. In these communications, Sepulveda, who pretended to be a 16-year-old girl, sent sexually explicit photographs to the victim and persuaded the victim to send him sexually explicit photographs of the victim to Sepulveda. Sepulveda also attempted unsuccessfully to meet with the victim for the purpose of engaging in sexual activity.
During today’s proceedings, Sepulveda pled guilty to a felony information charging him with child exploitation and receipt of child pornography. In entering the guilty plea, Sepulveda admitted that between July 29, 2015 and Nov. 15, 2015, he attempted to persuade the victim, a minor, to produce pornographic images of the victim and attempted to meet the victim to engage in sexual activity through a social media website. Sepulveda further admitted that while communicating with the victim, Sepulveda claimed to be a teenage female. Sepulveda admitted sending the victim images of female genitalia and heterosexual pornography and having sexually explicit conversations with the victim in an effort to induce the victim to produce child pornography for Sepulveda. According to the plea agreement, between July 29, 2015 and Nov. 15, 2015, in response to Sepulveda’s requests for sexually explicit photos of the victim, the victim sent five pornographic images depicting the victim to Sepulveda.
Under the terms of the plea agreement, Sepulveda will be prohibited from using or accessing the social media website he used to facilitate his criminal activity, and if Sepulveda wishes to become a member of, visit, or access any other social media website he must seek prior approval from his probation officer. Sepulveda also will be required to pay $15,000 in restitution to the victims of his crimes. Sepulveda remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Grant County Sheriff’s Office and the Las Cruces offices of FBI and HSI. Assistant U.S. Attorney Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Eliverto Verdugo-Torres, age 27, of Mexico, was indicted by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Verdugo-Torres was previously deported from the United States to Mexico in September 2014 and January 2017. He is alleged to have illegally re-entered the United States sometime after January 2017, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers. In January 2017, he was convicted in the Middle District of Pennsylvania of illegal re-entry, an offense which subjects him to enhanced penalties in the current case.
The case was investigated by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Because of Verdugo-Torres’s previous conviction, under federal law he faces a maximum penalty of ten 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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Powell Man Indicted on 234 Counts of Health Care FraudRead the Press Release
CHEYENNE, Wy. – A federal grand jury returned an indictment on May 19th charging Powell psychologist Gibson Condie with 234 counts of health care fraud involving approximately $6.8 million in fraudulent bills submitted to Wyoming Medicaid, announced the U.S. Attorney’s Office for the District of Wyoming and the Federal Bureau of Investigation. This indictment was the result of an investigation by the FBI, the United States Department of Health and Human Services’ Office of Inspector General, and the Wyoming Medicaid Fraud Control Unit.
According to the indictment, Condie submitted bills for mental health services to Wyoming Medicaid through his business Big Horn Basin Mental Health Group, Inc. These bills routinely reported an inappropriate and baseless mental health diagnosis and falsely identified Condie as the treating provider even though the claimed mental health services had been provided by various other individuals, many of whom were not licensed or otherwise authorized by Medicaid to provide the claimed services. The indictment further alleges that Condie fraudulently overbilled Medicaid for clinical assessments, billed for services that were not provided, and billed for services that Medicaid did not cover. In total, Condie allegedly submitted fraudulent claims for approximately $6,848,808 between June 2012 and February 2016.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Condie faces a statutory maximum sentence of 10 years on each count of health care fraud.If convicted on more than one count, the sentences could be imposed consecutively.
Pine Ridge Man Sentenced for Child Abuse and NeglectRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man convicted of Felony Child Abuse and Neglect was sentenced on May 18, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
James Lawrence Shangreaux, Sr., age 34, was sentenced to 10 years of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Shangreaux was charged on November 3, 2015, and pleaded guilty on January 3, 2017. The conviction stems from Shangreaux’s neglect of his minor son at Pine Ridge.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Sarah B. Collins and Megan J. Poppen prosecuted the case.
Shangreaux was immediately turned over to the custody of the U.S. Marshals Service.
Operation Dismantles Major Little Rock Drug Rings, 52 Alleged Drug Traffickers Now in CustodyRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), Kenton Buckner, Chief of Little Rock Police Department (LRPD), and Mike Davis, Chief of North Little Rock Police Department (NLRPD) announced today the unsealing of multiple federal indictments following the successful conclusion of an early morning operation that resulted in the arrests of dozens of accused drug and gun dealers in central Arkansas.
Wednesday morning’s operation culminated an 18-month joint investigation into several drug-trafficking organizations, primarily in Little Rock. Twenty-five people were arrested today—joining the 27 people indicted who were already in custody—while nine individuals remain at large. Fifty of the 61 defendants are from Little Rock.
Eight indictments were unsealed Wednesday, including five that alleged drug conspiracies. The largest involved a 33-defendant, 67-count indictment alleging heroin and cocaine conspiracies, both headed by Aaron “Black” Clark, 33, of Little Rock. Other indictments allege cocaine and crack cocaine conspiracies, and contain multiple methamphetamine, fentanyl, heroin, cocaine, and crack cocaine possession and distribution charges, as well as multiple gun charges.
The defendants arrested today will have initial appearances and enter pleas before United States Magistrate Judge Tricia. S. Harris on Friday. Judge Harris will see those who were already in custody on Wednesday, May 31.
“Targeting violent drug dealers remains a priority for my office, as well as for all law enforcement agencies in central Arkansas,” Acting U.S. Attorney Harris said. “Drugs continue to be a prime source of crime and violence in our city, and taking these criminals off the streets has made Little Rock a safer place. A major operation like this is not possible without the help of all agencies involved, particularly the FBI and the Little Rock and North Little Rock Police Departments. And while today’s operation represents a victory against dangerous criminals, it in no way ends our coordinated efforts to ease crime in Little Rock and improve the lives and security of law-abiding citizens in our city.”
In late 2015, the FBI and NLRPD began investigating the drug-trafficking activities of certain North Little Rock gangs. Investigators soon learned the gangs’ source of supply of drugs came from individuals in Little Rock. Through the use of several investigative tactics, including the controlled purchases of drugs, multiple wiretaps, and the execution of search warrants, among other methods, agents with the FBI and LRPD located and identified multiple drug sources of supply, and more than 60 suspects.
Eventually, in November 2016, agents executed a search warrant at the west Little Rock residence of Clark. Agents seized more than $100,000 cash and jewelry, 170 grams of heroin, a marijuana grow operation, and six firearms.
“Today’s arrests show our collective resolve to attack and dismantle these violent drug organizations that destroy our communities and generate fear in its citizens,” FBI SAC Upchurch said. “The FBI and our partners at the United States Attorney’s Office, Little Rock Police Department, North Little Rock Police Department, Arkansas State Police, Arkansas National Guard, and Pulaski County Sheriff’s Office will remain committed to identifying drug traffickers and removing them from the streets to protect our cities.”
Throughout the investigation, agents seized more than two kilograms of cocaine, one kilogram of heroin, more than a pound each of crack cocaine and methamphetamine, and eight ounces of fentanyl. Officers seized these drugs during more than 25 controlled purchases, as well as during the execution of multiple search warrants. In addition, agents seized 25 guns and approximately $241,000 of drug proceeds.
In addition to the work by the FBI’s Met Rock Task Force, local law enforcement assisted in the case. LRPD, for example, was familiar with many of individuals in the drug-trafficking organizations targeted in these federal indictments, and joined the FBI in making the arrests of these defendants a priority.
“Today, the Little Rock Police Department received some much needed assistance from the FBI and U.S. Attorney’s Office,” LRPD Chief Buckner said. “Our collaboration resulted in the indictment of many problem individuals within our city. LRPD is very appreciative of this ongoing partnership—with special thanks to Diane Upchurch and Pat Harris—and will continue to work with our federal partners in the future. This is another example of the work performed as a result of our participation in the Violence Reduction Network.”
“The North Little Rock Police Department initiated an investigation into the illegal sale of cocaine in our city that then revealed the illegal sale of methamphetamine, heroin, and weapons around central Arkansas,” NLRPD Chief Davis said. “The NLRPD contacted the FBI to assist with this investigation. We are grateful for the outcome, and will continue to work with federal agencies to reduce violence in our community and to take illegal drugs and weapons off the streets.”
Several agencies, including the Arkansas State Police, National Guard, and Pulaski County Sheriff’s Office, who each provided manpower and logistical support during the early-morning takedown, also combined to help make the Wednesday morning arrests.
“The Arkansas State Police acknowledges the significance of good teamwork,” said Colonel Bill Bryant, Director of the Arkansas State Police. “The efforts of a multi-jurisdictional team paid off today by stopping these individuals from further criminal acts and strengthening the public’s trust and respect of law enforcement officers who work together to make our cities and towns safer places to live.”
“The National Guard stands shoulder to shoulder in supporting law enforcement to contain the heroin epidemic facing our communities and state,” National Guard Lieutenant Colonel Chuck Vereen said. “Our Counter Drug Program is dedicated to help keep children and families safe, we are all in!”
The primary investigation was conducted by FBI’s Met Rock Task Force, in coordination with the LRPD and NLRPD. Also assisting Wednesday’s operation was the Arkansas State Police, the National Guard, and the Pulaski County Sheriff’s Office. Assistant United States Attorney Benecia Moore is the lead prosecutor on the indictments.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Indictments unsealed Wednesday
U. S. v. Aaron Laray Clark, et al – 4:17-cr-00111-JM
Aaron Laray Clark a/k/a “Black”, 35, Little Rock^^^
Hector Soto, 54, El Paso, Texas***
Elijah Alexander, III, 27, Little Rock***
Jason Michael Banks, 45, Little Rock^^^
John Webster Batton, 38, Searcy^^^
Carlos Eugene Burton, 37, Little Rock
Shannon Allen Cathey, 41, Little Rock
Jeremy Donte Craig, 33, Springdale^^^
Jabari Zaki Cummins, 39, Little Rock
Abreana Laray Daniels, 23, Little Rock***
Lekedric M. Davis, 31, Little Rock
Martin Drew Dehaven, 28, Little Rock
Kevin Dwane Dixon, 36, Little Rock
Alicia Lauren Fullington, 34, Little Rock^^^
Joseph Jamar Handy, 34, Little Rock
Desmond Kentrell Kelley, 23, Little Rock
Lowell John Ladd, 28, Little Rock^^^
Henry Lionell Lee a/k/a “Red”, 43, Little Rock
Antonio L. Lewis, 28, Benton^^^
Dalvin D. Lewis, 40, Little Rock
Marlon Shawn Marbley, Sr. a/k/a “Mob”, 45, Little Rock^^^
Jamal Cornell McCoy, 42, Little Rock***
Kwesi Okang Montague, 38, Little Rock^^^
Rachel Elizabeth Moore, 29, Little Rock^^^
Lucas Todd Murray, 33, Little Rock
Christopher S. Newman, Jr., 26, Jacksonville***
Roderick O. Rainey, 46, Little Rock^^^
Benson Dubois Smith, 31, Little Rock
Christopher Forsean Smith, 33, North Little Rock
Timothy Dewann Smith, 30, Little Rock***
Lionell Tidwell, 41, Greenbriar^^^
Davaris Daquante Whitehead, 26, North Little Rock^^^
Bryan Deshawn Young, 29, North Little Rock^^^U. S. v. Marcus Jermaine Buckner, et al – 4:17-cr-00110-DPM
Marcus Jermaine Buckner, 35, Little Rock
Antonio Louis Bumpers, 28, Little Rock***
Marcus J. Clark, 40, Little Rock
Willie Craig, III, 42, Little Rock^^^
Alvin Dean Withers, Jr., 32, Little Rock^^^U. S. v. Thaddeus Eugene Higgins, Jr. et al – 4:17-cr-00113-KGB
Thaddeus Eugene Higgins, Jr., 28, Little Rock
Fabian A. Bridgewater, 37, Little Rock
Laquina Rena Cheatham, 35, Little Rock^^^
Rodrick Deshawn Cunningham, 38, Little Rock***
Henry Lee Dupree, Jr., 68, Little Rock^^^
Courtney Ray Foster, 34, Little Rock
Brandon Deshawn Higgins, 21, Little Rock^^^
Brian Lamont Higgins, 34, Little Rock
Charles Bernard Higgins, 37, Little Rock^^^
William Frank Jones, 57, Pine Bluff^^^
Clarence Edward Walker, Jr., 28, Little RockU. S. v. Jeremiah Hollis, Sr. a/k/a “Trigg”, et al – 4:17-cr-00114-DPM
Jeremiah Hollis, Sr. a/k/a “Trigg”, 40, Little Rock^^^
Regina Evette Nelson, 47, Little Rock
Abdulah Farig Woods, 31, Little RockU. S. v. Antonio Malone a/k/a “Greenlight”, et al – 4:17-cr-00116-DPM
Antonio Lamont Malone a/k/a “Greenlight”, 37, Little Rock^^^
Christopher Bernard Bell a/k/a “Boonie”, 27, Little Rock
Antonio Dewayne Harris a/k/a “Big Yoke”, 37, Little Rock
Judge Lee Daniels, 26, Little Rock
Michael Princeton Marshall, 31, Little Rock
Terrence Edward Wright, 39, Little RockU. S. v. Hillary Ann Harmon – 4:17-cr-00112-BSM
Hillary Ann Harmon, 34, Little Rock^^^U. S. v. Aaron William Lyman – 4:17-cr-00115-KGB
Aaron William Lyman, 36, North Little Rock^^^U. S. v. Benjamin S. Schreiber – 4:17-cr-00117-BRW
Benjamin S. Schreiber, 32, Little Rock****** Fugitive
^^^ Arrested Wednesday
STATUTORY SENTENCES
Conspiracy to possess with intent to distribute and to distribute more than 1 kilogram of heroin is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 100 grams but less than 1 kilogram of heroin is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 5 kilograms of cocaine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 500 grams but less than 5 kilograms of cocaine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 280 grams of crack cocaine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 28 grams but less than 280 grams of cocaine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Possession with intent to distribute or distribution of more than 50 grams of actual methamphetamine or more than 500 grams of a methamphetamine mixture is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Possession with intent to distribute or distribution of more than 5 grams, but less than 50 grams, of actual methamphetamine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Possession with intent to distribute or distribution of more than 100 grams, but less than 1 kilogram, of heroin is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Possession with intent to distribute or distribution of more than 28 grams, but less than 280 grams, of crack cocaine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Possession with intent to distribute or distribution of less than 28 grams of crack cocaine is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with intent to distribute or distribution of less than 500 grams of cocaine is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with intent to distribute or distribution of less than 100 grams of heroin is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with intent to distribute or distribution of less than 50 grams of methamphetamine mixture is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with intent to distribute or distribution of fentanyl is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession of a firearm by a felon is punishable by not more than 10 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Use of a firearm during and in relation to a drug-trafficking crime is punishable by not less than 5 years, not more than life incarceration in the Bureau of Prisons, consecutive to any other charge, with a possible fine of up to $250,000, and not more than 3 years supervised release.
Use of a communication facility to facilitate a drug trafficking crime is punishable by not more than 4 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 1 year supervised release.
Okmulgee Man Sentenced to 72 Months for Firearm Possession, Unregistered FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BUDDY LYNN VISSER, age 56, of Okmulgee, Oklahoma, was sentenced to 72 months imprisonment, and 3 years of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1); and for POSSESSION OF UNREGISTERED FIREARM (MACHINEGUN), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871.
The Indictment alleged that on or about July 10, 2016, within the Eastern District of Oklahoma, VISSER, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The Indictment further alleged that on or about August 17, 2016, within the Eastern District of Oklahoma, VISSER did knowingly possess a machinegun, to wit: One (1) Seekins Precision, Model SP15; .223 caliber rifle, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Ohio man charged with heroin, cocaine and meth distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Toledo, Ohio man was arraigned today after being indicted on May 16 by a federal grand jury on charges of heroin, cocaine and methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Michael Austin Boyd, Jr., age 35, was indicted on one count of “Possession with Intent to Distribute Heroin,” one count of “Possession with the Intent to Distribute Cocaine Base,” one count of “Possession with the Intent to Distribute Methamphetamine,” and one count of “Possession of Firearm in Furtherance of Drug Trafficking Crime.” Boyd allegedly possessed with the intent to distribute heroin, cocaine and methamphetamine, as well as a .38-caliber revolver, in Harrison County in September 2016.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and Bridgeport Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Precious Metals Brokerage Firm Operator Indicted for Tax EvasionRead the Press Release
A federal grand jury sitting in the Eastern District of New York returned an indictment on April 12, which was unsealed today, charging a former Brooklyn resident, who operated a precious metals brokerage firm with tax evasion and aiding and assisting in the preparation of false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Christopher Wolf operated Rothchild & Associates LLC, in Brooklyn, New York, and was in the business of selling precious metals to investors over the telephone. Although Wolf controlled all aspects of Rothchild’s operations, it was technically owned by a third party.
Wolf allegedly concealed the income he earned from Rothchild by causing his commissions to be paid to shell corporations and diverting the funds from those corporations to his own personal use. According to the indictment, Wolf filed a false 2010 individual income tax return that did not report the income he earned from selling precious metals and he failed to file a 2011 income tax return, despite earning brokerage commissions. The indictment further alleges that Wolf caused the shell corporations to file false 2010 and 2011 corporate tax returns that claimed deductions for phony expenses.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Wolf faces a statutory maximum sentence of five years in prison for tax evasion and three years in prison for aiding and assisting the preparation or presentation of a false tax return.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Green and Mark Kotila 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.
Navajo Man Sentenced for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Julian King, 31, an enrolled member of the Navajo Nation who resides in Vanderwagon, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 24 months in prison for his conviction on a federal child abuse charge. King will be on supervised release for a year after completing his prison sentence.
King was charged by felony information on Jan. 19, 2017, with abusing a child abuse from March 1, 2011 through April 13, 2011, on the Navajo Indian Reservation in McKinley County, N.M.
King pled guilty to the information on Jan. 19, 2017. In entering the guilty plea, King admitted that between March 12, 2011 and April 6, 2011 he abused a seven-month old infant by striking the infant on the head and causing the infant’s head to strike a wall. King further admitted that the instances of abuse were intentional and with enough force to cause injury to the child.
This case was investigated by the Gallup office of the FBI and was prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
Mission Woman Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on May 22, 2017, by U.S. District Judge Roberto A. Lange.
Heather DuBray, age 46, was sentenced to time served in custody since the date of the offense through June 2, 2017, followed by 4 months home confinement, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
DuBray was indicted by a federal grand jury on December 14, 2016. She pled guilty on March 7, 2017.
The conviction stems from an incident that occurred on November 7, 2016. On that date, DuBray was in custody in the Rosebud Adult Correctional Facility, Rosebud, South Dakota, and had been placed in an observation cell. She became combative and began throwing things. Corrections officers removed her from the observation cell and placed her in a restraint chair, at which point she struck two of the officers and spit on one of them.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
DuBray was immediately remanded to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Involuntary Manslaughter was sentenced on May 23, 2017, by U.S. District Judge Roberto A. Lange.
Jacob McCloskey, age 19, was sentenced to 24 months in prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. As a condition of supervised release, McCloskey was also ordered to perform 80 hours of community service. Restitution may also be ordered.
McCloskey was indicted by a federal grand jury on August 16, 2016. He pled guilty on March 7, 2017.
The conviction stems from an incident that occurred on April 7, 2016, near Lakeview, in Todd County, South Dakota. McCloskey, then age 18, invited a group of friends, including the 17-year-old victim, to his home after school that day. At one point, the victim picked up a loaded .22 caliber long rifle that was sitting in the corner in a bedroom and asked if it was a BB gun. The victim was unfamiliar with firearms and loaded a round into the chamber. McCloskey then walked into the room, took the rifle from the victim, and removed the ammunition from the rifle. Believing the rifle was now unloaded, McCloskey pointed it at the victim and playfully asked if the victim wanted to be shot. The victim jokingly agreed. McCloskey then pointed the rifle at the victim’s forehead and pulled the trigger. The rifle discharged, fatally wounding the victim. McCloskey immediately called 911 and requested an ambulance. He told the other juveniles who were present to lie and say the rifle had discharged accidentally.
When law enforcement arrived, McCloskey falsely stated that the rifle had discharged accidentally after the victim had set it down. McCloskey subsequently admitted that he had pointed the rifle at the victim and pulled the trigger. He also admitted to telling the other juveniles who were present to lie about what happened.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
McCloskey was immediately remanded to the custody of the U.S. Marshals Service.
Mineral County woman charged for failing to register as a sex offenderRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Keyser, West Virginia woman was indicted on May 16 by a federal grand jury on charges she failed to register as a sex offender, Acting United States Attorney Betsy Steinfeld Jividen announced.
Bobbi Jo Starry, age 51, was indicted on one count of “Failure to Register as a Sex Offender.” Starry, having been convicted of third degree sexual assault in the Circuit Court of Berkeley County, allegedly traveled interstate commerce and failed to register and update registration as a sex offender from January to May 2017.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The United States Marshals Service is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Member of the New Jersey Grape Street Crips Gets 112 Months in Prison for Crack-Cocaine DistributionRead the Press Release
NEWARK, N.J. – A gang member who sold crack-cocaine for the New Jersey set of the Grape Street Crips was sentenced today to 112 months in prison, Acting U.S. Attorney William E. Fitzpatrick announced.
Ernest Valentine, a/k/a “Bop,” 32, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with conspiracy to distribute 28 grams or more of crack-cocaine. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the neighborhood of 6th Avenue and North 5th Street. Valentine obtained crack-cocaine from more senior gang members and associates who used and shared a dedicated cell phone to accept orders for thousands of clips of crack-cocaine. These gang-members included Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax,” a/k/a “Wax,” and Rashan Washington, a/k/a “Shoota.”
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the 6th Avenue and North 5th Street location used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
In addition to the prison term, Judge Linares sentenced Valentine to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s sentencing. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Department of Public Safety and Newark Police Division, under the direction of Director Anthony A. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Stacy A. Biancamano Esq., Chatham, New Jersey
McKees Rocks Teen Indicted on Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH – An Allegheny County teen has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on May 23, named Dushawn Griffey, 18, formerly of McKees Rocks, Pennsylvania, as the sole defendant.
According to the indictment, on March 28, 2017, Griffey possessed with intent to distribute more than 40 grams of fentanyl. On the same date, Griffey is also charged with possessing three firearms in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of up to life in prison, a fine ranging from $250,000 to $1,000,000, 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 Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Maryland Man Sentenced to 9 Years in Prison for Assaulting Man with Metal Pipe in Dispute at Northeast Washington Towing CompanyRead the Press Release
WASHINGTON – Dominic White, 30, of Lanham, Md., was sentenced today to 8 years in prison on a charge of aggravated assault while armed, for assaulting a man with a metal pole at a towing establishment in Northeast Washington. In addition, White was sentenced to 1 year in prison on charges of insurance fraud and conspiracy to commit insurance fraud, to run consecutively, announced U.S. Attorney Channing D. Phillips.
A co-defendant, Phanessa Haynes, 29, of Washington, D.C., was sentenced to 9 months of incarceration with the time suspended and 18 months of supervised probation for her role in the insurance fraud scheme.
White and Haynes were found guilty by a jury on March 24, 2017, in the Superior Court of the District of Columbia. They were sentenced by the Honorable Juliet McKenna. Following their prison terms, defendant White will be placed on 5 years of supervised release. White was ordered to pay $1535 and Haynes $500 in restitution to State Farm Insurance.
According to the government’s evidence, on Nov. 4, 2014, at approximately 5 p.m., Haynes arrived at a towing company in the 1000 block of Kenilworth Avenue NE to pick up her car, which was getting its rims and tires replaced. She quickly noticed that the job wasn’t completed to her standards and became angry at the man who was doing the work. She called her boyfriend – White - multiple times expressing her frustrations.
White raced over and once arriving, picked up a metal pipe. Haynes pointed to the victim, and said, “That’s him, that’s the one.” White rushed to the victim and struck him with the metal pipe a couple of times, hitting and injuring him. He then dropped the pipe and fled. The victim’s head injuries required 18 staples and resulted in debilitating migraines for approximately a year. Following the attack, other employees at the towing shop called 911 and one gave a partial license tag of White’s car. White was later identified as the owner of a car with the same make and color described by witnesses, with a similar tag.
Further investigation showed that Haynes and White were involved with an insurance policy that was purchased by Haynes, which led to her car being at the towing establishment on the day of the assault. Soon after purchasing the policy, and making sure it covered tires and rims, Haynes filed a claim with the insurer for “stolen” rims.
White was arrested on March 30, 2015, and Haynes was arrested at the scene on Nov. 4, 2014.
In announcing the sentences, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the FBI’s Cellular Analysis Survey Team and the U.S. Marshals Service. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Stephen Rickard, Daniel Lenerz, Jocelyn Ballantine, Fernando Campoamor-Sanchez, Kathryn Rakoczy, and Opher Shweiki; Victim/Witness Advocate James Brennan; Paralegal Specialists Richard Cheatham, Debra McPherson, Crystal Waddy, and Tiffany Fogle; Criminal Investigator, Melissa Matthews; Litigation Technology Specialists, Josh Ellen and Leif Hickling; Investigative Analyst, Zachary McMenamin, and Computer Forensic Examiner; John Marsh.
Finally, he commended the work of Assistant U.S. Attorneys Karen Seifert and David Misler, who investigated and indicted the case, and Monica Trigoso and Alysa Kociuruba, who prosecuted the case.
Man Pleads Guilty to Mail FraudRead the Press Release
A man pleaded guilty today in U.S. District Court for the District of Maryland to mail fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.
According to documents filed with the court, from approximately November 2011 through March 2013, Timothy West, 43, along with others, engaged in a scheme to file fraudulent tax returns with the Internal Revenue Service (IRS), claiming refunds to which they were not entitled. On two separate occasions, West hired a tax return preparer in Temple Hills, Maryland, to prepare returns that reported, among other falsities, that West was entitled to claim as dependents on his return two individuals who were not in fact his dependents. West knew that he was not entitled to claim these individuals as his dependents. As part of the scheme, West and others then used these false tax returns as templates to prepare and file hundreds of additional fraudulent tax returns with the IRS seeking more than $413,000 in refunds. West caused a tax loss of approximately $284,706 as a result of his actions in furtherance of the scheme.
Sentencing is scheduled for Sept. 18, 2017. West faces a statutory maximum sentence of twenty years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Stephen M. Schenning commended special agents of IRS–Criminal Investigation and Treasury Office of the Inspector General, who conducted the investigation, and Assistant U.S. Attorney Erin Pulice and Trial Attorneys William Guappone and Thomas F. Koelbl 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.
Local Man Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – Eddie Lee Regans was sentenced to 81 months in prison on multiple fraud charges after using client’s personal information to obtain credit for his personal use, racking up charges of more than $110,000.
According to court documents, between August 2015 and July 2016, using the name Eddie Lee, Regans advertised himself as a contractor by distributing flyers to customers at various home improvement stores and other retail establishments in the St. Louis Metropolitan Area. Regans also established an internet website and Yellow Pages entry in which he claimed to provide home repair and general contractor services through a company called All Rehab & Repair. He also falsely claimed to have been accredited by the Better Business Bureau. In response to complaints by consumers and its own investigation, the Better Business Bureau issued an alert warning consumers from doing business with Regans and his companies. In addition to All Rehab & Repair, Regans used the following names when advertising his business: Reasonable Quality Work; Repair and Rehab; All Rehab Repairs; and, Affordable Quality Works. Regans obtained prospective customers’ identifying information by promising that his company would finance their home repairs, and believing his representations, several customers provided their names, dates of birth, social security numbers, and addresses. As Regans did not operate any company through which he could provide financing, he used the identifying information to open, and attempt to open, credit accounts at the home improvement stores Menards and Lowes. Rather than use the credit accounts for the benefits of the homeowners, Regans utilized the accounts to purchase items for his benefit.
Eddie Regans, 51, St. Louis, pled guilty on January 30, 2017 to two felony counts of fraudulent use of access devices, one felony count of mail fraud, and four felony counts of aggravated identity theft.
This case was investigated by the United States Postal Inspection Service. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
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Lincoln County Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Octavio Herrera, 54, of Ruidoso Downs, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in prison for his conviction on a methamphetamine trafficking charge. Herrera will be on supervised release for four years following his prison sentence
Herrera was one of 34 individuals charged in December 2015, with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Herrera was arrested in Sept. 2016, on an indictment charging him and co-defendants Rumaldo Varela Enriquez, 46, a Mexican national, and Johnny Flowers, 51, of Hobbs, N.M., with methamphetamine trafficking offenses. The indictment charged Herrera with participation in a methamphetamine trafficking conspiracy, possession of methamphetamine with intent to distribute, and three counts of use of a communication facility in relation to a drug trafficking crime.
On Jan. 11, 2017, Herrera pled guilty to conspiracy and possession of methamphetamine with intent to distribute. In entering the guilty plea, Herrera admitted that between March 4, 2015 and March 12, 2015, he conspired with others to distribute methamphetamine in Hobbs and Lovington, N.M. Herrera also admitted that on March 12, 2015, he possessed 230.1 grams of methamphetamine which he intended to distribute to others.
Enriquez pled guilty on Sept. 9, 2016, and was sentenced on March 21, 2017 to 57 months in prison and will be deported following his prison sentence. Flowers pled guilty on Nov. 9, 2016, and was sentenced yesterday to time served followed by two years of supervised release.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
Leader of Drug Trafficking Organization that Distributed High Grade Marijuana Throughout New Mexico Pleads Guilty to Marijuana Trafficking and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – Enrique S. Cavazos, 31, of Tijeras, N.M., entered a guilty plea today in federal court in Albuquerque, N.M., to marijuana trafficking and money laundering charges under a plea agreement that recommends a sentence within the range of 48 to 120 months of imprisonment. His wife, Lindsey A. Cavazos, 32, also pled guilty today to a money laundering charge under a plea agreement that recommends a sentence of a five-year term of probation. Under the terms of their plea agreements, the couple is required to forfeit the proceeds of their drug trafficking and money laundering activities, including real estate, vehicles, cash, weapons, and jewelry, which are valued at more than $1,883,500.
Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Special Agent in Charge Ismael Nevarez, Jr., of the Phoenix Field Office of IRS-Criminal Investigation, announced the guilty pleas.
Enrique and Lindsey Cavazos were arrested in Nov. 2015, after a federal grand jury filed a 26-count indictment charging them and six others with marijuana trafficking and money laundering charges. The indictment was the result of a two-year investigation by the FBI and IRS Criminal Investigation into a drug trafficking organization led by Enrique Cavazos that distributed high-grade marijuana throughout New Mexico and across the country. The investigation revealed that the Cavazos drug trafficking organization cultivated and purchased high-grade marijuana in California, distributed the marijuana throughout the country, and laundered its drug proceeds through a number of businesses and bank accounts in New Mexico.
According to the indictment, Enrique and Lindsey Cavazos and six co-conspirators participated in a marijuana trafficking conspiracy that existed from at least Jan. 2008 through Nov. 2015, and operated in the District of New Mexico and elsewhere. The indictment alleged that Enrique Cavazos operated his marijuana trafficking business by directing co-conspirators to purchase large quantities of marijuana in California and distribute the marijuana in New Mexico and other destinations across the country. It also alleged that Lindsey Cavazos was responsible for keeping the books on businesses she and her husband established with proceeds from their marijuana trafficking activities and for the purpose of laundering their drug proceeds. The indictment charged the couple with engaging in a money laundering conspiracy and using bank accounts in the names of several of their businesses, including a restaurant and a car dealership, to launder their drug proceeds.
The indictment was superseded in Aug. 2016, to add money laundering charges against three new defendants: Steven Becerra, 61, the owner of the Becerra Group Tax and Accounting Firm in Albuquerque, who previously was employed by the IRS for 18 years; Deborah Gutierrez, 54, who operated Automated Financial Technologies, which is no longer in business; and Glen F. Lucero, 65, a retired school teacher. superseding indictment also removed Felix Cavazos, Enrique Cavazos’s father who passed away after the original indictment was filed, from the list of defendants.
During today’s proceedings, Enrique Cavazos pled guilty to a drug trafficking conspiracy charge and a money laundering conspiracy charge. In his plea agreement, Cavazos admitted participating in a conspiracy to distribute marijuana between Jan. 2008 and Nov. 2015, and acknowledged that the conspiracy included the cultivation, shipment and sale of marijuana to wholesalers and end-use customers. Enrique Cavazos also admitted conspiring with others from Jan. 2009 through Nov. 2015, to launder the cash proceeds from his marijuana distribution conspiracy, and engaging in numerous financial transactions using his drug proceeds, which were designed to conceal the nature, source and ownership of the illegal proceeds.
Lindsey Cavazos entered a guilty plea to a money laundering conspiracy charge. In her plea agreement, she admitted that from Jan. 2009 through Nov. 2015, she conspired with others to launder the cash proceeds from marijuana distribution. Like her husband, Lindsey Cavazos admitted engaging in numerous financial transactions using drug proceeds, which were designed to conceal the nature, source and ownership of the illegal proceeds.
As part of their plea agreements, the Cavazos are required to forfeit property derived, either directly or indirectly, from proceeds obtained from their drug trafficking and money laundering activities including:
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The Tijeras, N.M., residence of Enrique and Lindsey Cavazos, valued at $468,000;
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Two parcels of real property located on Grand Avenue in Las Vegas, N.M., valued at $227,032;
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A parcel of real property located on 12th Street in Las Vegas, N.M., valued at $42,500;
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A parcel of real property located on Grant Street in Las Vegas, N.M., valued at $50,000;
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A parcel of real estate located at 8th Street and Sperry Street in Las Vegas, N.M., valued at $229,000;
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The funds, totaling approximately $104,513.21, in nine bank accounts in the names of companies owned and controlled by Enrique and Lindsey Cavazos;
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18 vehicles with an aggregate value of $177,500;
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Two Rolex watches valued at $35,600;
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Three pieces of sapphire and diamond jewelry owned by Lindsey Cavazos valued at $1,025.33;
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$473,040 in cash; and
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The fixtures and equipment from Café Bien, a restaurant formerly located on Central Avenue, SW, in Albuquerque, N.M., that was owned and operated by Enrique and Lindsey Cavazos.
Sentencing hearings for Enrique Cavazos, who is in custody, and Lindsey Cavazos, who is out on conditions of release, have yet to be scheduled.
The remaining eight defendants, who have entered not guilty pleas to the superseding indictment, are pending trial, which has yet to be scheduled. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The investigation of this case was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. It was conducted by the Albuquerque offices of the FBI and IRS Criminal Investigation and the Albuquerque Police Department. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case and Assistant U.S. Attorney Stephen R. Kotz is handling the forfeiture matters.
Cavazos 2nd Superseding Indictment Enrique Cavazos Plea Agreement Lindsey Cavazos Plea Agreement-
Justice Department Observes Missing Children’s DayRead the Press Release
Deputy Attorney General Rod J. Rosenstein today recognized two law enforcement officers, two state-level task forces, and a private citizen for their efforts to recover missing and abducted children and investigate cases of sexual exploitation of children and child pornography.
The awards, coordinated by the Office of Juvenile Justice and Delinquency Prevention in the Office of Justice Programs, were presented during a formal ceremony at the Robert F. Kennedy Department of Justice Building.
“The people we recognize today remind us of our responsibility to protect all children from harm,” said Deputy Attorney General Rosenstein. “Their actions epitomize the values of courage, selflessness, and determination. The Department of Justice is proud to honor their inspirational achievements, and I am proud to stand with them.”
The ceremony included recognition of a student artist who best conveyed the theme “Bringing Our Missing Children Home.” Audrey Link, a fifth grader at Resurrection Catholic School in Lakeland, Fla., is this year’s national poster contest winner.
In addition to Link’s recognition, Rosenstein presented the following awards:
Attorney General’s Special Commendation: This commendation recognizes the extraordinary efforts of an Internet Crimes Against Children task force or affiliate agency for making significant investigative or program contributions. Recipients: The Alabama and Georgia Internet Crimes Against Children task forces launched a coordinated investigation into individuals suspected of possessing and distributing child pornography. The investigation spanned more than 70 law enforcement agencies across two states and resulted in 54 search warrants, 29 arrests and the seizure of 731 digital devices as evidence.
Missing Children’s Law Enforcement Award: This award recognizes the extraordinary efforts of a law enforcement officer who made a significant investigative or program contribution to the safety of children. Recipient: Special Agent Kathryn Gamble of the U.S. Department of Homeland Security, Homeland Security Investigations, Nogales, Ariz., initiated a global investigation targeting those who use the online chat service Kik to sexually exploit minors. Her efforts led to the execution of nearly 60 search and arrest warrants, identification of 30 child victims, the rescue of 22 child victims from ongoing sexual abuse, and the prosecution of five individuals to date.
Missing Children’s Child Protection Award: This award honors the extraordinary efforts of a law enforcement officer who made a significant investigative or program contribution to protect children from abuse or victimization. Recipient: Forensic Detective Eric Kjorness of the Idaho Internet Crimes Against Children task force, Moscow, Idaho, assisted in the investigation of 15 cases of possession or distribution of child pornography in 2016. Those 15 cases resulted in the examination of 40 electronic devices and the recovery of more than one million child pornography images and videos. Detective Kjorness also provides presentations to public schools, PTA groups, and civic groups to educate children, parents, and educators about child enticement via the Internet and online chat rooms.
Missing Children’s Citizen Award: This award honors the extraordinary effort of private citizens for their unselfish acts to safely recover missing or abducted children. Recipient: Springfield, Mo., bus driver T.J. Davis’s actions led to the recovery of a 13-year-old girl with autism who was reported missing in December 2016. While driving his route, Davis noticed a girl fitting the police description sitting in the lap of a man in a wheelchair. The man approached Davis’s bus, told him the girl needed help and left her with Davis, he then proceeded down the sidewalk. Recognizing him as a regular bus rider, Davis contacted his dispatcher and later described the man to authorities. Police arrested and charged the man with first-degree child kidnapping and enticement of a child.
President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s Day in memory of Etan Patz, a six-year-old boy who disappeared from a New York City street corner on May 25, 1979. Missing Children’s Day honors his memory and the memories of children still missing. Although Patz’ killer was convicted this February for the 1979 murder, Etan Patz remains missing and his case active with the National Center for Missing and Exploited Children because his remains were never found.
Additional information is available online about National Missing Children’s Day.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Judge Sentenced Duquesne Man to 4 Years in Prison for Possessing Heroin for DistributionRead the Press Release
PITTSBURGH - A resident of Duquesne, Pennsylvania, has been sentenced in federal court to four years of imprisonment and three years of supervised release on his conviction of Possession with the Intent to Distribute Heroin, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Carloto Neal, Jr., 22, of Duquesne, Pennsylvania.
According to information presented to the court, the Pennsylvania State Police conducted a traffic stop of a vehicle driven by Neal, and a search of that vehicle revealed 110 grams of heroin, and 3,000 empty stamp bags used in the distribution of heroin.
Prior to imposing sentence, Judge Fischer stated that heroin has become the scourge of our society. She cited Center for Disease Control and Prevention statistics showing that heroin overdose death quadrupled between 2002 and 2012.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Neal.
Indictment: Employee Embezzled $200,000 from BankRead the Press Release
WICHITA, KAN. - A Labette County woman was indicted Wednesday on a federal charge of embezzling more than $200,000 from the bank where she worked, U.S. Attorney Tom Beall said.
Debra J. Nading, 59, Oswego, Kan., was charged with one count of embezzlement by a bank employee. The indictment alleged Nading stole approximately $213,173 from Labette Bank while she worked as an assistant cashier.
If convicted, she faces up to 30 years in federal prison and a fine up to $1 million. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER INDICTMENTS
Xavier Jauregui Larios, 33, of Durango, Mexico, is charged with one count of possession with intent to distribute 10.7 kilograms of cocaine. The crime is alleged to have occurred April 10, 2017, in Clark County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
Victor Irigoyen, 20, Garden City, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred May 4, 2017, in Finney County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
Darren M. Williams, 35, Wichita, Kan., and Ebony D. James, 24, Wichita, Kan., are charged with two counts of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of ammunition following a felony conviction. In addition, Williams is charged with one more count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred in April 2017 in in Sedgwick County, Kan.
If convicted, they face up to 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wichita Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Juan Carlos Reyes-Flores, 36, Los Angeles, Calif., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred April 25, 2017, in Ellis County, Kan.
If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Lind is prosecuting.
Jorge Carrillo-Hernandez, 35, who has been living in Kansas City, Mo., is charged with unlawfully re-entering the United States after he was convicted of an aggravated felony and deported. He was found in Kansas May 1, 2017.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Leon Patton is prosecuting.
Victoria M. Carlile, 30, Liberal, Kan., is charged with counterfeiting $50 and $100 bills. The crime is alleged to have occurred in January 2017 in Seward County, Kan.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000. The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Houma Man Sentenced to 7 Years in Prison for Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAEL CHAUVIN, age 31, of Houma, was sentenced today after previously pleading guilty today to a one-count Indictment, charging him with possession of images and videos depicting the sexual exploitation of children under the age of twelve.
U.S. District Judge Kurt D. Engelhardt sentenced CHAUVIN to 84 months imprisonment, followed by 6 years of supervised release. Additionally, CHAUVIN was ordered to register as a sex offender under the Sex Offender Registration and Notification Act. A hearing on restitution is set for June 28, 2017.
According to court documents, law enforcement officials executed a search warrant at CHAUVIN’S residence on August 7, 2015, during which time they seized numerous electronic items, including one laptop computer, one cellular “smart” phone, four external hard drives, and two external “thumb” drives that contained images and videos of child pornography. A forensic examination of the devices revealed that CHAUVIN used the devices to search for, download, and save images and videos of children as young as approximately two years old engaging in sexually explicit conduct. CHAUVIN obtained most, if not all, of the images and videos via a peer-to-peer file sharing program. The forensic examination located approximately 1,354 images and 779 videos of prepubescent children engaging in sexually explicit on CHAUVIN’S electronic devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg and Special Assistant United States Attorney J. Ryan McLaren were in charge of the prosecution.
Gregg County Men Guilty in Federal Drug ConspiracyRead the Press Release
TYLER, Texas – Two Longview, Texas men have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Quintus Dewayne Shaw, 30, pleaded guilty to possession with intent to distribute crack cocaine near a playground and felon in possession of a firearm before U.S. Magistrate Judge John D. Love on May 23, 2017.
Jonathan Lavel Wilson, 35, pleaded guilty to possession with intent to distribute crack cocaine near a playground today before Judge Love.
According to information presented in court, on Mar. 6, 2017, Shaw and Wilson participated in the distribution of crack cocaine within 1,000 feet of a Longview playground. On Jan. 12, 2017, during the execution of a search warrant at a Longview residence by the Gregg County C.O.D.E. Unit, Shaw possessed a firearm. Shaw and Wilson were indicted by a federal grand jury on Feb. 17, 2017, and charged with drug trafficking violations.
Under federal statutes, the defendants each face up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety – Criminal Investigations Division, Gregg County C.O.D.E. Unit and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
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Grandview Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Grandview, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Anthony B. Hutton, 29, of Grandview, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole. Hutton was sentenced as an armed career criminal due to his prior felony convictions.
On Feb. 16, 2017, Hutton pleaded guilty to being a felon in possession of a firearm. Hutton admitted that he was in possession of a loaded Glock .40-caliber pistol.
Kansas City police officers found the pistol in Hutton’s waistband when he was being arrested on Jan. 31, 2016. Officers had been dispatched on a reported theft involving a beige Toyota Corolla. Officers saw the Corolla parked in the street on the curb, occupied by Hutton and another person. Hutton got out of the driver’s side of the vehicle when officers approached. Officers saw the grip of a black handgun tucked halfway in Hutton’s waistband and immediately placed him in handcuffs. A check of the pistol’s serial number revealed it to be stolen and Hutton was placed under arrest for possession of stolen property. Officers searched the vehicle and found nine individually wrapped plastic baggies containing a total of 44 grams of marijuana, six individual baggies of cocaine weighing a total of five grams, four green unknown pills, three yellow unknown pills and .5 grams of cocaine that was sitting on the ground by Hutton.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hutton has three prior felony convictions for distribution of a controlled substance and a prior felony conviction for unlawful use of a weapon (for attempting to shoot someone). Hutton was on probation at the time of the offense.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Grand Jury Indicts Cincinnati Man with Hate Crimes ChargesRead the Press Release
CINCINNATI – A federal grand jury has charged Samuel Whitt, 41, of Cincinnati, with criminal interference with the right to fair housing and attempted arson.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and Cincinnati Police Chief Eliot K. Isaac announced the indictment that was returned yesterday and unsealed today.
The indictment alleges that Whitt destroyed a rental home in Price Hill after being evicted from the property. Whitt and another individual had rented the lower unit of the house from an interracial couple.
According to the indictment, over the Thanksgiving holiday, Whitt broke into the rental home and spray-painted the walls with messages including “die nigger,” “nigger,” and “white power,” as well as images of swastikas. Whitt also splattered paint on walls, stairs and appliances; made holes in the walls; broke banisters; tore carpet; poured quick-drying concrete into the bathroom drains and toilet; and stabbed a knife into the floor. Whitt also allegedly removed plumbing traps from the sinks and left the water running, causing extensive water damage to the ceilings and floors. Whitt turned on the gas stove in the upstairs kitchen, poured paint into the burners, and attempted to remove the smoke detector above the stove.
Whitt is charged with one count of violating the Fair Housing Act through force by willfully intimidating the homeowners based on their race, color and familial status. This is a crime punishable by a potential maximum sentence of up to 10 years in prison. Whitt is also charged with attempted arson, which carries a mandatory minimum sentence of five years’ up to a possible 20 years’ imprisonment.
Cincinnati Police officers arrested Whitt on December 9, 2016 on local breaking and entering and vandalism charges. Whitt was arrested this morning by FBI agents and Cincinnati Police officers on the federal charges.
U.S. Attorney Glassman commended the investigation by the FBI and Cincinnati Police, as well as Assistant United States Attorneys Megan Gaffney and Kyle Healey who are prosecuting the case.
An indictment merely contain allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Georgia Man Indicted for Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jemel X. Williams, age 34, of Macon, Georgia, was indicted for illegal possession of firearms and possession of stolen firearms.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on February 15, 2017, Williams was in possession of firearms (a Glock 19, 9mm, and a Glock 36, .45 caliber) that were shipped and transported in interstate commerce. It is also alleged that Williams was previously convicted of a felony offense prohibiting him from possessing firearms.
The case was investigated by the Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the illegal firearm possession charge is life in prison, a term of supervised release following imprisonment, and a fine; the possession of stolen firearms charge is punishable by 10 years in prison, 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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Garland Man Sentenced to 13 Years in Federal Prison for Transporting and Possessing Child PornographyRead the Press Release
DALLAS — Mark Isaac Yetter, 34, of Garland, Texas, was sentenced today by Chief U.S. District Judge Barbara M.G. Lynn to serve a total of 13 years in federal prison, following his guilty plea in June 2016 to one count of transporting and shipping of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Yetter has been in custody since his arrest in January 2016.
According to the factual resume filed in the case, Yetter admitted to looking at child pornography for approximately one-and-a-half years. He preferred pornography involving girls between the ages of 12 and 16. Yetter would search the internet using search terms such as “teens” and “young girls,” and would save the images of child pornography to his cellular telephone. Yetter possessed approximately 1,277 images of child pornography and 115 videos of child pornography between his cellular telephone and Dropbox account. Some of the files he collected depict infants and toddlers.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Andrew Wirmani prosecuted the case.
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Four named in 13-count indictment on heroin and cocaine chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Three Martinsburg, West Virginia residents and one Virginia man were indicted by a federal grand jury in March 2017 for cocaine and heroin, Acting United States Attorney Betsy Steinfeld Jividen, announced.
The four are accused of conspiring to distribute heroin and cocaine in Berkeley County, West Virginia from December 2015 to April 2016.
The indictment includes counts of “Conspiracy to Distribute Heroin, Cocaine Hydrochloride, and Cocaine Base,” “Aiding and Abetting the Distribution of Cocaine Base Within 1,000 Feet of a
Protected Location, “Unlawful Use of Communication Facility,” “Maintaining Drug-involved Premises,” “Possession with Intent to Distribute Cocaine Hydrochloride,” and “Possession with Intent to Distribute Cocaine Base.”
Named in the indictment are:
- Keon DeAngelo Parker, 24, Martinsburg, West Virginia
- Christal Yates, 42, Martinsburg, West Virginia
- Anthony “Tony” Duane Boyd, 37, Linden, Virginia
- Ashley Dominique Ruffin, 27, Martinsburg, West Virginia
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Charged in Scheme to Commit Insider Trading Based on Confidential Government InformationRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Elton Malone, Special Agent in Charge, Special Investigations Branch, U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today the arrests of DAVID BLASZCZAK, a political intelligence consultant, and CHRISTOPHER WORRALL, a government employee at the Centers for Medicare and Medicaid Services (“CMS”). THEODORE HUBER and ROBERT OLAN, two partners and analysts at a healthcare-focused hedge fund in New York, New York (“Investment Adviser-A”), were also arrested.
BLASZCZAK, WORRALL, HUBER, and OLAN were charged with participating in a scheme, from in or about 2012 through in or about 2014, to convert United States property, to defraud the United States, and to commit securities fraud and wire fraud for obtaining material nonpublic information from CMS and using it to execute profitable trades at Investment Adviser-A. In addition, Mr. Kim announced today the unsealing of charges against JORDAN FOGEL, a former partner and analyst at Investment Adviser-A, who pled guilty and is cooperating with the Government.
As part of the scheme, BLASZCZAK is charged with obtaining confidential and nonpublic information from CMS employees, including his friend, CHRISTOPHER WORRALL, who worked at CMS, and who is charged with breaching his duties as a CMS employee by providing confidential information to BLASZCZAK. BLASZCZAK then is alleged to have provided this material nonpublic information in advance of market-moving CMS announcements to employees at Investment Adviser-A, including HUBER, OLAN, and FOGEL, who allegedly recommended trades on the basis of the information. As a result of these trades, Investment Adviser-A reaped more than $3,500,000 in profits.
BLASZCZAK is also charged in a separate scheme for obtaining confidential and nonpublic CMS information about cuts in CMS’s reimbursement rates for home health providers, and for providing that information to Christopher Plaford, a portfolio manager at a different healthcare-focused hedge fund in New York, New York (“Investment Advisor-B”). Plaford then used BLASZCZAK’s information to execute profitable trades. Plaford has previously pled guilty to this conduct and is also cooperating with the Government.
HUBER and OLAN will be presented later today before United States District Magistrate Judge Ronald L. Ellis. BLASZCZAK will be presented later today in the District of South Carolina. WORRALL will be presented later today in the District of Maryland. BLASZCAK, WORRALL, HUBER, OLAN, and FOGEL’s cases are assigned to United States District Judge Denise Cote.
In separate actions, the Securities and Exchange Commission (“SEC”) filed civil charges against BLASZCZAK, WORRALL, HUBER, and FOGEL.
Acting U.S. Attorney Joon H. Kim said: “The five defendants – three with a hedge fund, one political intelligence consultant, and one government CMS employee – allegedly participated in an insider trading scheme to get highly sensitive and confidential information from CMS and feed it to a hedge fund to make illegal profits. David Blaszczak, the consultant, obtained stolen government information from his former CMS colleague and funneled it to his hedge fund clients Theodore Huber, Robert Olan, and Jordan Fogel. Armed with this highly valuable, secret government information, Huber, Olan, and Fogel made trades that allegedly netted the fund over $3.5 million in illegal profits. Just like trading on material nonpublic corporate information can be a federal crime, so can trading based on secret government information, as alleged to have happened here. We remain as committed and vigilant as ever in protecting the integrity of the securities markets and our government institutions.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Inside information should remain harbored with those who are trusted to protect it until such a time it becomes available to the public. Employees, especially government employees, who have access to this information should honor this code of ethics at all times; not just because it’s the right thing to do, but because it’s the lawful thing to do. Likewise, when individuals outside an organization receive information they know they shouldn’t have, they too have an obligation not to use this to their personal advantage. As alleged, those charged today didn’t abide by these rules, and they are now called upon to stand up and face the charges for what went down.”
HHS-OIG Special Agent in Charge Elton Malone said: “HHS-OIG Special Agent in Charge Elton Malone said: “Profiting based on sensitive, insider information is illegal and taints the image of thousands of hard working federal government employees. We continue to hold federal government employees accountable and to the highest standards of conduct and integrity.”
According to the allegations in the charging documents unsealed today in Manhattan federal court, including the Indictment charging BLASZCZAK, WORRALL, HUBER, and OLAN,[1] and statements made in court proceedings:
CMS
CMS, a component of the United States Department of Health and Human Services (“HHS”), administers Medicare and Medicaid, among other things. CMS is also responsible for setting Medicare reimbursement rates for healthcare providers. CMS spends more than $1 trillion annually and pays approximately one-third of the country’s health expenditures. Accordingly, CMS rulemaking decisions, including decisions that affect how much the federal government will pay to reimburse medical providers for services rendered, have a substantial, market-moving impact on publicly traded companies that depend on government healthcare spending.
WORRALL began working at CMS in or about 1999. Beginning in January 2012, WORRALL worked in the Director’s Office for the Center for Medicare (“CM”), which gave WORRALL broad access to CMS’s confidential deliberations about upcoming reimbursement decisions. WORRALL also served as a project manager for a confidential CMS database that contained CMS’s most up-to-date claims data that CMS used to inform its decision-making. As an employee of the executive branch of the United States Government, WORRALL was prohibited from sharing CMS’s confidential information with people outside CMS, and WORRALL was subject to Section 21A(h) of the Securities Exchange Act (added by the STOCK Act), which provides, in relevant part, that “each executive branch employee . . . owes a duty arising from a relationship of trust and confidence to the United States Government and the citizens of the United States with respect to material, nonpublic information derived from such person’s position.”
David Blaszczak
At all relevant times, BLASZCZAK served as a consultant at a number of Washington, D.C.-based firms that, in exchange for a fee, provided so-called “political intelligence,” which included analysis about how changes in Government reimbursement rates would impact publicly traded healthcare-related companies. Before becoming a political intelligence consultant, BLASZCZAK worked at CMS, eventually serving as a special assistant to the CMS Administrator. BLASZCZAK met WORRALL while the two worked at CMS.
As a former CMS employee, BLASZCZAK was well aware of CMS’s rules governing the dissemination of nonpublic information. BLASZCZAK also received training on the STOCK Act.
Investment Adviser-A
At all relevant times, Investment Adviser-A managed multiple hedge funds specializing in healthcare-related investments. As of 2017, Investment Adviser-A had more than $7 billion in assets under management. HUBER, OLAN, and FOGEL were partners and analysts at Investment Adviser-A, where their job was to analyze investment decisions and recommend potentially profitable trades for Investment Adviser-A. Investment Adviser-A’s compliance manual prohibited its employees from committing insider trading.
The Scheme to Convert and Use Confidential CMS Information
The Scheme
As alleged in the Indictment, from at least in or about 2012 through in or about 2014, BLASZCZAK, WORRALL, HUBER, OLAN, FOGEL, and others participated in a scheme to convert to their own use confidential and material nonpublic information from CMS concerning, among other things, CMS’s internal deliberations regarding coverage and reimbursement decisions.
During this time period, Investment Adviser-A retained BLASZCZAK as a consultant who provided political intelligence related to, among other things, the content, likelihood and timing of CMS reimbursement decisions. As part of the scheme, HUBER, OLAN, and FOGEL encouraged BLASZCZAK to obtain confidential and material nonpublic information from CMS insiders. As HUBER, OLAN, and FOGEL knew, these CMS insiders included BLASZCZAK’s former colleagues with whom he had close personal relationships, who were prohibited from disclosing such information to CMS outsiders.
BLASZCZAK obtained material nonpublic information from his close friend and former CMS colleague WORRALL. Beginning in at least 2012, WORRALL began tipping BLASZCZAK about impending CMS decisions, for at least two reasons. First, BLASZCZAK and WORRALL were friends since their time working together at CMS. BLASZCZAK also frequently offered to help WORRALL find lucrative private sector employment opportunities, in exchange for WORRALL giving BLASZCZAK confidential government information.
BLASZCZAK conveyed the information obtained from WORRAL to HUBER, OLAN, and FOGEL, who – knowing that BLASZCZAK had obtained the information improperly from a CMS insider – used the information to trade. In exchange for being provided with this inside information, HUBER, OLAN, and FOGEL caused Investment Adviser-A to pay BLASZCZAK more than $263,000 in consulting fees.
July 6, 2012 Proposed Radiation Oncology Rule
For example, in or around May 2012, BLASZCZAK improperly obtained confidential and material nonpublic information about CMS’s planned radiation oncology reimbursement cuts from WORRALL. BLASZCZAK then provided that information to HUBER, OLAN, and FOGEL, who used the information to cause Investment Adviser-A to make profitable trades in public companies that would be adversely affected by the cuts. BLASZCZAK continued to provide updates about CMS’s internal radiation oncology deliberations throughout May and June 2012, and Investment Adviser-A continued to trade on the confidential information. When CMS ultimately announced the cuts in a proposed rule, Investment Adviser-A made approximately $1.85 million in trading profits.
After these successful trades, Investment Adviser-A discussed whether to pay BLASZCZAK a bonus. In an email, HUBER wrote, “I think Dave earned his bonus with his work on Rad Onc Q2. We did pretty well on that and it was really 100% Dave[.]” OLAN responded, “I agree.” Investment Adviser-A subsequently paid BLASZCZAK’s firm $47,500, which included a $29,000 discretionary bonus. That was the highest quarterly bonus Investment Adviser-A paid BLASZCZAK’s firm in 2012.
July 1, 2013, Kidney Dialysis Preliminary Rule
In addition, on or about July 1, 2013, after markets closed, CMS announced in a preliminary rule that it planned to cut the reimbursement rate for various kidney dialysis treatments, services, and drugs (known as the “base rate”) by 12%. Before this announcement, in around March 2013, WORRALL gave BLASZCZAK two confidential, internal CMS documents related to CMS’s kidney dialysis rule. One of the documents contained a warning that the slides were “for internal government use only” and that “[u]nauthorized disclosure may result in prosecution to the full extent of the law.”
On or about June 14, 2013, BLASZCZAK and WORRALL attended a baseball game together. Four days later, on or about June 18, 2013, BLASZCZAK forwarded FOGEL his kidney dialysis prediction and explained that he was “much higher than others on a cut.” FOGEL asked, “How high? 4-5%?” BLASZCZAK replied, “12% total but phased in over 3 years 50/25/25.” That prediction mirrored CMS’s internal proposal for the proposed kidney dialysis rule, which was confidential.
On or about June 25, 2013, FOGEL checked in with BLASZCZAK on the proposed kidney dialysis rule. BLASZCZAK reported, “No change in my numbers. I am pretty confident.” Minutes later, Investment Adviser-A entered orders to short the stock of a company that would be hurt by such a significant kidney dialysis reimbursement reduction.
After the reimbursement rate of 12% was announced, Investment Adviser-A made more than $865,000 in trading profits. On or about July 2, 2013, after CMS announced the proposed rule, FOGEL wrote to others at Investment Adviser-A about the kidney dialysis announcement. FOGEL stated, “Credit to d blazcack [sic] on this one. Wish we didnt wuss out but will still make a couple million on it.”
* * *
On May 19, 2017, JORDAN FOGEL, 33, of Sands Point, New York, pled guilty before Magistrate Judge Gabriel W. Gorenstein to six counts: one count of conspiracy to convert United States property, to commit securities fraud, and to defraud the United States; two counts of conversion of property of the United States; two counts of securities fraud; and one count of conspiracy to commit wire fraud. Count One carries a maximum sentence of five years in prison. Counts Two and Three each carry a maximum sentence of 10 years in prison. Counts Four, Five, and Six each carry a maximum sentence of 20 years in prison.
On June 9, 2016, Christopher Plaford, 38, of Bedford, New York, pled guilty before United States District Judge Ronnie Abrams to seven counts: one count of conspiracy to commit securities fraud and wire fraud; one count of securities fraud; one count of conspiracy to defraud the United States and to convert United States property; one count of conversion of United States property; one count of conspiracy to convert United States property, to commit securities fraud, and to defraud the United States; one count of securities fraud; and one count of conspiracy to commit wire fraud. Counts One, Three, and Five each carry a maximum sentence of five years in prison. Counts Two, Six, and Seven each carry a maximum sentence of 20 years in prison. Count Four carries a maximum sentence of 10 years in prison.
A chart identifying the charges and the maximum penalties applicable to BLASZCZAK, WORRALL, HUBER, and OLAN is below.
Count
Charge
Defendants
Maximum Penalty
1
Conspiracy to convert property of the United States, to commit securities fraud and to defraud the United States (18 U.S.C. § 371)
All
5 years in prison
2
Conspiracy to commit wire and securities fraud (18 U.S.C. § 1349)
All
25 years in prison
3
Conversion of property of the United States (18 U.S.C. §§ 641 and 2)
All
10 years in prison
4-8
Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)
All
20 years in prison
9
Wire fraud (18 U.S.C. §§ 1343 & 2)
All
20 years in prison
10
Securities fraud (18 U.S.C. §1348 & 2)
All
25 years in prison
11
Conversion of property of the United States (18 U.S.C. §§ 641 & 2)
David Blaszczak, Christopher Worrall
10 years in prison
12
Wire fraud (18 U.S.C. §§ 1343 & 2)
David Blaszczak, Christopher Worrall
20 years in prison
13
Conversion of property of the United States (18 U.S.C. §§ 641 & 2)
David Blaszczak, Christopher Worrall
10 years in prison
14
Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)
David Blaszczak, Christopher Worrall
20 years in prison
15
Wire Fraud (18 U.S.C. §§ 1343 & 2)
David Blaszczak, Christopher Worrall
20 years in prison
16
Securities fraud (18 U.S.C. §1348 & 2)
David Blaszczak, Christopher Worrall
25 years in prison
17
Conspiracy to defraud the United States and to convert property of the United States (18 U.S.C. § 371)
David Blaszczak
5 years in prison
18
Conversion of property of the United States (18 U.S.C. §§ 641 & 2)
David Blaszczak
10 years in prison
Defendants’ Ages and Residences
Defendant
Residence
Age
Theodore Huber
Westport, Connecticut
55
Robert Olan
Rumson, New Jersey
46
David Blaszczak
Isle of Palms, South Carolina
41
Christopher Worrall
Linthicum Heights, Maryland
39
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the work of the FBI and HHS-OIG, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Damian Williams, Ian McGinley, and Joshua A. Naftalis are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.